Product Costing Interface

The total standard cost for every item in MAC-PAC is stored on the Part Master File.  The detail behind those totals is maintained in two places:

·     For purchased, raw material, transfer, and non-stocked parts, detailed cost elements are maintained on the Part Costs File (DE105M).  This file is also used to specify cost elements for manufactured items when Product Costing is not installed.

·     The Product Costing module calculates the total cost for manufactured items.  More information about how the module maintains these costs is provided below.

The Product Costing module uses the bill of material and cost of raw materials (and purchased components) to determine the material cost of a manufactured item.  It uses the routing and the cost rates defined for each workcenter on that routing to determine the labor, overhead, and miscellaneous costs for the part.  The sum of all of these cost components is the total standard cost for the item. 

The total cost of an item is determined from the bill and routing when you request a cost generation.  Cost generations should be submitted regularly to update the total cost for engineering changes, changes in workcenter rates, and changes in the price of raw materials.  Note that Product Costing stores both current and standard costs.  Inventory Accounting only pays attention to the standard costs.  You can update the standard costs from the current costs by requesting a cost rollover within Product Costing.  Note that changes to the standard costs within Product Costing will not affect Inventory Accounting unless you also run an account cost generation.