This-Level/Total Costs

The term "this-level costs" refers to costs that are incurred at one level of the bill of material.  This-level costs are equal to the labor and overhead costs used to create the item from its immediate components.  These costs are determined from the part's routing.  The this-level material cost for a manufactured part will always be zero (unless a miscellaneous material charge is defined on the part's routing).  The this-level material cost for a purchased part will be the total purchased material cost of the item.  This-level costs are used to calculate manufacturing variances in the Inventory Accounting module.

Total cost fields for a part equal the this-level costs plus the costs required to purchase or make all components.  Labor and overhead incurred at lower levels of the bill of material will be reflected in the total labor and total overhead cost fields.  Material costs incurred at lower levels of the bill of material will be reflected in the total material field.