Setup

Item Costing Setup (IVC) Open Item Costing Setup List (IVC):


Some parameters must be specified for the correct operation of the procedure:
  • Calculation of the production cost;
  • Calculation of capacity costs;
  • Evaluation of purchased items and products;
  • Weighted average cost calculation method, etc.

From New open a new card:


FieldOptionDescription
Production Cost CalculationStandard Routing/BOMThe calculation is carried out with standard times and consumptions; the cost used depends on the value of the Capacity Cost Calculation field.
Actual EntriesEverything is taken into account with the actual production entries
Consider Purchase in Standard BOMIncludeBy setting the field to the value “Include”: when calculating the cost of production items, the system will also consider any purchases made during the period;
ExcludeBy setting the field to the value “Exclude”: the system will exclude all Purchase type movements from the calculation of the production items
BOM/Routing Reference DateStart/End Period DateIt allows you to define the date with which you calculate the production costs, if at the beginning of the period and at the end of the period. It is relevant if the versions of the lists and routings are used, otherwise it is irrelevant: usually if the versions of the lists / routings are used, the End Period value is used (more recent versions)
BOM/Routing StatusAll/Only CertifiedDefines whether to consider all the BOM/Routings in the calculation, or whether to use only the certified ones. It has an impact if you are working on separate lists / routings, otherwise it is irrelevant.
Purch. Item ValuationAverage Cost / Weighed Average Cost
Prod. Item ValuationAverage Cost / Weighed Average Cost
Weighed Average Cost MethodItalian Fiscal Method (works like a LIFO a scatti with only one group for the initial stock)(GI x CMP + (GF – GI) x CM) / GF Where:
  • GI = initial inventory stock
  • GF = final inventory stock
  • CMP = Weighed Average Cost previous fiscal year
  • CM = average cost of the period
NB: If GI> GF the cost of the previous fiscal year is used..
Italian Civil Method(GI x CMP + PA x CM) / (GI + PA) Where:
  • GI = initial inventory stock
  • PA = Cumulated purchases
  • CMP = Weighed Average Cost previous fiscal year
  • CM = average cost of the period
Continuous FIFO CostIf active on the item, the continuous FIFO cost is calculated, in addition to the cost calculated according to the methodology defined on the master data.
Continuous LIFO CostIf active on the item, the continuous FIFO cost is calculated, in addition to the cost calculated according to the methodology defined on the master data.
Enable Custom Addit. CostIf active, enable the additional management cost
LIFO Method (present only if the “IVC for Italy” app has been installed).Item/LIFO CategoryDetermines the calculation logic with the LIFO a scatti method: Iteme or LIFO Category.
Skip Job Entry (usually to be set to Yes if job management is used.If active, the entries, both item accounting and capacity, which refer to the orders, are excluded from the valuation. Normally the flag is activated in the presence of specialized verticals on the management of orders (PSA, Industry).
Subcontracting Cost Priority 1, priority 2, priority 3Routing Line, Actual Entries, Subcontracting PricesDefines the cost recovery hierarchy relating to external processing.
Average Cost - Include Purch. Cr. MemoThe functionality of this field is exclusively linked to items with the “Purchase” replenishment system. Activating this field makes it possible to include credit note documents in the calculation of the “Average cost”, for lines of the type Item.
Item Specific Cost Calc.(defines the method for calculating the Average Cost / Weighted Average Cost of the item, if the specific costs calculation by variant, lot, series no. is activeInventoryThe average cost / weighted average cost of the item is calculated as inventory value / quantity (as if the specific costs are not active).
AmountThe average cost / weighted average cost of the item is the weighted average of the lots / serial / variants in stock at the end of the period on the total final stock.
Capacity Cost CalculationEntry Actual CostCost recovered from posted production entries (Capacity accounting entries).
Budget CostCost recovered from Work Centers. Useful for carrying out cost simulations deriving from changes in hourly rates.
Standard Cost

Cost Type Rollup: to be filled in if you want to split, according to the additional costs table, the 3 cost components in further details (e.g. the raw material divided by type of item) and / or to separate the accessory purchase costs managed as Article Charges.


Setup IVC


In this setup it is possible to define whether the splitting of the material cost, in the Cost Nature (IVC) page, should occur based on the “Gen. Product Posting Group” indicated in the Item card:


Cost Nature

On this page it is possible to define the additional cost types that you intend to manage:


FieldDescription
Additional costconsente di specificare se il costo è da intendersi come un costo aggiuntivo vero e proprio o se è una specificazione di una delle componenti di costo gestite dal programma.
Cost type roll-upthe options are: Material Cost, Capacity Cost, Subcontracting Cost
Gen. Product Posting Group / Item Charge Code FilterThey allow you to define the detail of the material cost split.
Standard Task Code / Work Center FilterThey allow you to define the detail of the subcontracting cost split.

The detail of the Capacity Cost split must be defined by completing the “Cost Nature” page, linked to the Production Areas / Work Centers master data.


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