Precalculation is a calculation of prices for products that have not yet been manufactured, in particular for the purpose of drawing up quotations.
Precalculation is a calculation of expected or planned costs based on the activity unit or order. It is always product- or order-specific and, depending on the circumstances of the individual case, is carried out as a division, equivalence number, overhead or joint cost estimate (cost estimate).
Precalculation is pure Cost Object Controlling, which calculates the resulting costs before the activity is performed, or which determines how high these may be in backflushed costing. Preliminary costing takes place before a new product is produced, and in make-to-order plants before the quotation is issued. The object of the Precalculation estimate is the cost object created. It can only refer to one activity (make-to-order production), but can also refer to a large number of similar products (series, varieties, or mass production).
The Precalculation estimate should record all costs incurred in the production of the service as completely and correctly as possible and thus serve to determine the cost price, the quotation price and the lower price limit and, for given and accepted prices, the achievable contribution margin.
Since the Precalculation estimate is to calculate the costs of future activities, there are often extensive uncertainties that turn the cost estimate into an estimate (for example, future cost development, uncertainty about development costs, circulation size, etc.). On the basis of work flow charts, work studies (REFA), design drawings, recipes and bills of material, direct costs and sometimes also overhead costs are recorded.
The overhead costs caused by the cost objects cause particular problems Precalculation costing when they are entered and distributed. Once all costs have been calculated, you can enter the expected cost of goods sold and the bid price using a profit markup. Precalculation can be carried out on the basis of full costs or marginal costs. The lower price limit can only be determined exactly if marginal costs are used. Full cost calculation can be carried out in addition, possibly for the purpose of better comparison with the competing offers.
In the item master > "Calculation" tab > "Calculation" button. The calculation is opened and calculated at the calculation size stored in the item master. As the calculation is not stored here, it is purely a view function. All changes in the calculation are discarded when this is closed. The header cannot be changed or edited.
You can use Calculation > Precalculation to create, edit, view or copy a Precalculation. All options are accessible in this way. A Precalculation can also be assigned to a quotation or order subsequently.
All of the changes made there are stored in the calculation. However the master data is not changed. A production document can be created from the calculation.
Quotation or order (SAP)
A "Calculation" button is available in the quotation or order. If you click on this, a new Precalculation is created and saved for this line, and an allocation inserted in the quotation line or order line.
Stored variants or product configurations are considered. The calculated price is not automatically transferred to the quotation line or order line. All of the changes made there are stored in the calculation. However the master data is not changed. A production document can be created from the calculation.
The batch calculation can be used to calculate multiple items and the result can be stored in a price list. The calculation itself is not displayed here. The result can be called in the item master.
+ Indirect material costs (according to material group)
= Material Costs
Manufacturing costs according to routing
+ Production overhead in %
= Non Material Mfg Cost
= Production Cost
+ Shipping costs, administration, sales
= Cost of Sales
+ Profit Margin
= Net Selling Price
+ Discount
= Sales Price
This standard structure can be expanded and modified as desired and is used by all calculation systems. It is possible to change this calculation schema (seecalculation schema)
Marginal costs are costs incurred by the production of a unit of measure of a product.
Example
For the production of an article, fixed costs of €100 are incurred, costs for the provision of machines or rent for a production site.
This is referred to as fixed costs.
For material and resources there are flexible costs of 5€ per manufactured unit. One unit costs 105 €, two units 110 €. For each unit produced, the total cost increases by 5 EUR. This amount corresponds to the marginal costs.
Note: Setup time is part of Marginal costs.
Fixed costs are e.g. Overhead costs (accounting, electricity, water), Rent for production hall.
Set-up times, for example, are not fixed costs, but part of the production process.
In Resource you can define the Marginal and Fix costs and can calculate the Full cost
Full costs are all costs incurred in a period that are allocated to a service directly or indirectly via a cost center, as far as possible according to the source.
In contrast to direct costs, full costs include all costs that are are created within the framework of the operational provision of services.
In contrast to partial costs, effective costs include all costs that are actually incurred in the production of business activities. Whether and in which cases full costs are to be used is primarily a problem of costing. (Full cost principle, full cost calculation).
One speaks of full costs, if the entire costs of a period are settled up to the cost units of the enterprise. They represent the resulting unit costs. This means that the total unit costs for all cost objects produced or deducted in a period are the same as the total costs of the company. A similar distribution of all costs is carried out in the systems of full cost accounting.
In Resource you can define the Mariginal and Fix costs and can calculate the Full costcost and Full Cost. Additionally it is possible to define all costs in a resource (cost details), Split costs in 5 different cost types (time types concept)
In Precalculation and Post-calculation you can switch in simple way between Marginal- and Full Cost view.
The calculation can calculate up to 4 different quantities in one time
For Material price it's possible to define up to 8 different prices related to needed quantity for one item. Price lists, special price lists supported
Assembly Lot size in sub positions supported. See Lot size
It is possible to display the calculation in any Lot size (example: Produce 100 Pcs, but display all Quantities / Prices per 1.
If a calculation is created from a quotation or a sales order it receives a separate reference number which is stored in the quotation/order in this field.
The reference number is saved in "Calculation" (RDR1.U_BEAS_PRECALCNR)
Note:
As long there is a reference (link), the calculation may not be deleted. To remove the link, delete the reference number in sales order or quotation.
