Cost Elements

MAC-PAC allows you to define an unlimited number of detailed cost elements.  These elements indicate the source of different costs that make up the total cost per unit of each item within the plant.  Valid cost element codes are defined on Reference File category C17. 

Cost elements for purchased, raw material, transfer, and non-stocked parts are maintained on the Part Costs Maintenance conversation within Design Engineering.  This conversation is also used to define detailed costs for configured parts if Reference File category Y30 specifies that configured parts should be treated as purchased parts for costing.  In addition, you can maintain detailed cost elements for a manufactured part if Product Costing is not installed. 

The total cost for a manufactured part is calculated by Product Costing.  The material costs of components are rolled up on the bill of material.  These costs are added to labor costs, which are calculated based on the routing and the cost rate defined for the workcenter.  Rates for workcenters and miscellaneous cost workcenters are defined in the Manufacturing Engineering module.  The rates are defined using the detailed cost elements defined on Reference File category C17. 

When cost elements are defined on C17, a cost type must be specified.  This cost type determines whether the cost will be accumulated into a labor, overhead, or material cost total. 

Cost elements may be summarized or grouped as they are rolled up a bill of material and routing.  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 summarized into one freight code.  Rollup codes are defined on Category C17.