Cost Element Grouping

For manufactured parts, the cost elements of the purchased parts are rolled up the bill of material.  Thus, you may review the total cost, at the end item level, for each cost element through all levels of the bill of material.  This feature gives you visibility over significant cost components in your product line.  In addition, it may provide the basis for budgeting calculations by extending forecasted production quantities for each end item by that item's cost elements.

Cost elements may be summarized or grouped as they are rolled up the bill of material.  You may specify that a cost element is to be summarized into another category by associating it with a rollup code.  For example, foreign and domestic freight may be defined as separate cost elements, but may be summarized into one freight code.  This summarization feature allows you to control the level of detail you see when reviewing cost elements for manufactured items.  Rollup codes are defined on category C17 of the Reference File.