Precalculation

Concepts > Precalculation

Top  Previous  Next
Expand/Collapse Toggles

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.

 

Example: Precalculation is used for

- Make-to-order production;

- New production of a product;

- Submission of bids;

- Assessment of market prices (short-term price floor, long-term price floor, long-term price floor)

 

The following calculation types are available

- Precalculation

- Batch analysis

- Production costing analysis (incl. batch costing analysis)

hmtoggle_plus1You can open this from
hmtoggle_plus1Basic structure of a calculation, Calculation schema
hmtoggle_plus1The Beas Precalculation calculate per Marginal and Full Costs
hmtoggle_plus1Calculated Quantity, View per Quantity

It is possible to calculate every semi finish product in one calculation. See Extented view

 

see

Tool costs

youtube Webinar (2011) Price valuation, Batch Calculation, Process Sales order - Calculation - Work order

youtube Function Use always actual price

youtube Calculation per assembly webinar

 

See

Structure windows

Precalculation – Extended view

Calculation schema

Cost types

Cost type groups


Help URL: https://help.beascloud.com/beas202106/index.html?conceptprecalculation.htm