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Cost rollup into controlled release

Written by Pieter Hamans on . Posted in Exact Online

In February we announced that cost rollup went into development and was scheduled for controlled release in the third quarter of 2014. We are now ready to start the controlled release. Cost rollup will go into controlled release at the same time as the support for multi-level BOMs, which we announced in May. Both cost rollup and support for multi-level BOMs are part of Exact Online Manufacturing Advanced. Customers participating in the controlled release have already been briefed and will have the features enabled shortly.

Cost scenarios

Via the menu path Manufacturing | Cost rollup | Create we can design a specific (named) set of rules for the cost rollup that we apply (run) from time-to-time. We can create a scenario to recalculate our product cost prices based on current purchase prices of materials, a scenario to update cost prices in case our labor rates have changed, or to calculate the cost price of a single, customized make item that has just been designed.

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In the scenario we can define to which items to apply the calculation (item, item group, assortments), and which rules we will apply to calculate the price. We can for example increase/decrease the labor rate or we can define that we want to use the latest purchase price of our production materials. We can also choose to limit the rollup to items that are order controlled. This will benefit assemble-to-order manufacturers that do want to calculate the cost price of a customized product, but do not want to change the cost prices of standard subassemblies.

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Running a scenario

When we run a particular cost rollup scenario, the cost prices of the lowest level assembly will be calculated first. The process will continue with the next deepest level all the way up to the finished product. A new check has been added to the consistency checks (Master data | Consistency check | Manufacturing) to test whether there are circular BOMs (BOMs where a product is used as a component of itself).

The result of a scenario run is presented in an overview where we can view for each affected item the old cost price next to the new cost price. For make items, this cost price is immediately applied to the calculated cost price of the (active) BOM version, for buy items the new cost price is presented merely as the basis where the cost rollup has been based on. We can then select the items with a new cost price and update inventory. This will adjust the cost prices on the item card, both for make and for buy items, with the new cost price.

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Planning

Exact Online Manufacturing Advanced will become general available in the fourth quarter of 2014.

More information with Pieter Hamans (pieter.hamans@exact.com).

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