When purchase prices of materials change, or when labor or machine rates get adjusted to new values, this should become reflected in the cost prices of manufactured products. Currently we will have to navigate to the BOM materials or BOM routing where those materials or rates are used and save for the new values. This is of course a lot of work. When we are working with subassemblies, it is required to recalculate cost prices of components before we recalculate the cost prices of parts that require those components. As a new process in manufacturing advanced we are going to support cost rollup.
To create an effective cost rollup process we will introduce scenarios. A cost scenario could look like this: “We want to update the cost prices based on the standard cost price of the material”, or “We want to update the cost prices based on the last purchase price of the material”.
A scenario can be applied from time to time to a chosen assortment, so that we can update the prices of sheet metal products with other rules than the prices of fabricated frames. Although the calculation will yield first a result for the calculated cost price, we will be able to update the item cost prices with the calculated cost prices as a second step in this process. Important is further that the cost rollup process will identify on which level to start and work its way up to the final assembly. So we determine the new cost prices of wheels before we determine the new cost prices of bicycles.
The cost rollup will become available for the controlled release of manufacturing advanced in the second quarter of 2014.
More information with Pieter Hamans (email@example.com).