Calculation

Configuration costs are calculated based on the component parts and labor steps defined for manufacturing orders generated during configuration.  All configured manufacturing orders are processed for a sales order line from the lowest level to the end item level.  Specific configured costs are calculated for any manufactured configured parts in the bill of material.  Configuration costs can be updated for purchased parts using the finalized cost rule.  Using this process, the configured costs are 'rolled' up through the bill of material, resulting in a final configured cost for the end item.

Costs are held at the configuration code level.  If the cost of a configuration code changes from one accounting period to the next, changes in standard cost and inventory value will be calculated.  All sales order lines for a given configuration code will be valued at the same cost.