Cost calculation
Introduction
In the Cost tab of a Bill of materials, you can compute cost price or update product cost price. You can also run cost calculations for a product sub-type (and many other filters) from the menu entry Manufacturing → Cost calculation → +
This calculation will take into account:
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The cost of products consumed and scrap from products consumed.
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The costs of operations incurred in your manufacturing routing:
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Workstation costs
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Human costs
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Residual products which are valued.
Configuration Cost sheet
Access: Application config → Apps management → Manufacturing, configure → in the “Cost sheet” section, activate the functions / fill in the following fields:
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Cycle unit: this field is used to define cycle units.
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Subtract the cost of residual products: this option allows you to value the cost of residual products in the cost price or not.
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Manage cost sheet group : first activate this option in order to make appear the “Cost per process line”.
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Cost per process line: this option allows you to take into account costs by process line or not.
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Cost sheet group for product/Cost sheet group for work center: this field is used to define cost groups.
These options allow you to display certain information later on a cost sheet, including when printing.
How to calculate the cost of a part?
In Axelor, there are two ways of calculating the cost of a part in manufacturing.
- BOM: calculate the cost from the Bill of materials sheet:
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Compute cost price: on the BOM sheet, click on the Cost tab. Then click on the “Compute cost price” button.
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Print the cost sheet line details : the ‘Cost Sheet’ window will then open. Here, click on the “Print the cost sheet line details” button.
If a product does not have a defined cost price (product file, Purchasing/Costs tab, ‘Cost price’ field), this information will not be displayed on the cost sheet. It is therefore necessary to indicate the cost price.
This will allow the information to be displayed correctly on the cost sheet when you launch the calculation.
- Indirect goods: the cost sheet associated with your assembled product is valued according to the cost price of the components.
Please note that in the following example, the ‘Cost per process line’ option has been deactivated (config in the Manufacturing app). In this way, the cost sheet will take into account the valuation of the costs associated with the charge item.
- If you calculate the cost price with the ‘Cost per process line’ option deactivated on the BOM sheet, you will notice that the Cost Price has changed. Click on Print the cost sheet line details: on the cost sheet, you will find all the cost items per item.
- Access: Manufacturing → Cost calculation
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Fill in the essential information.
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Here you can run calculations by company.
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By product sub-type.
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By all the products selected, or by product categories. You can also run the calculation by product family.
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Run calculation: once you have entered the information, click on the ‘Run calculation’ button.
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Results : once you have run the calculation, you will see the Results tab. In this tab, you will find all the costs associated with each of the components.
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Associated cost sheet : by clicking on a line in the ‘Results’ table, you will find the “associated cost sheet” in the Results window.
The cost sheet contains all the information associated with costing.
Indirect costs
Access : Application config → Apps management → Manufacturing, configure
Indirect costs can be linked to merchandise and manufacturing.
In the manufacturing App Configurations, you can define whether you want to use cost groups and specify the 2 default cost groups (merchandise and manufacturing).
You will then need to define your direct cost groups, which you will assign to your products and workload items to which indirect costs can be applied.
Next, configure your indirect cost groups with the associated rate or surcharge and the related direct cost groups.
Cost groups can be set from the menu entry: access: Manufacturing → Configuration → Cost sheet groups**.
When you run a cost calculation on a product made up of items with direct cost groups associated with indirect cost groups or on charge items also affected by indirect costs, additional lines will appear on your cost sheet.
One line will be associated with each indirect cost related to the merchandise and to manufacturing.
Make sure you have activated the ‘Manage cost sheet groups’ option (‘Cost sheet’ section, Manufacturing app configuration).
Also select a Product Cost Group and a Work Item Cost Group.
Configuration for cost groups
Access : Manufacturing → Configuration → Cost sheet groups
This is where you will find all the cost groups that exist in the application. There are several types of costs:
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Direct manufacturing: these costs can be configured and selected from the workload items.
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Direct material: these costs can be selected from products/components.
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Indirect.
It is also possible to add groups of costs associated with the ‘Direct manufacturing’ type / select different types. This selection must be added from the work center (access: Manufacturing → Configuration → Work centers → select a cost group).
How do I configure indirect costs?
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Click on the record for an indirect cost.
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In the ‘Cost groups’ table, find the direct cost groups associated with this indirect cost.
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After selecting the manufacturing, add the indirect cost (for example, the rate of 30% in relation to the manufacturing).
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Return to the file of a workstation (access: Manufacturing → Configuration → Work centers). On the file, select a cost group (in the example, Manufacturing).
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Next, open the BOM sheet and run the calculation (the Costing button). On the cost sheet, you will see that 30% of the costs are related to the indirect costs associated with the assembly item + you will see on the cost sheet that 20% are related to indirect goods costs.
It's easy to check the rate applied on the cost group sheet.