(B)Actual Cost Calculation

[Costing>Actual Cost>(B)Actual Cost Calculation]

Actual Cost Calculation consists of material cost calculation, processing cost calculation and roll-up. For more information on the brief flow of the Actual Cost Calculation, refer to the description of Overview in this manual.

You can use this menu to:

Execute Actual Cost Calculation.

Executing Actual Cost Calculation

Select Year&Month in the condition part and click [Query]. Each Work Step of an Actual Cost Calculation appears. Check Execute Flag on the row of the Work Step to be executed and click [Execute] at the bottom of the screen.

If Progress Y/N on the row of the Work Step to be executed is set as [Y], it means the Work Step has already been executed. Accordingly, you must set Progress Y/N as [N] in order to execute the Work Step again.

All Work Steps must be executed in the proper order in each Work Step of material cost calculation, processing cost calculation and roll-up. For instance, executing a Material Cost Calculation while Purchase Item Evaluation has not been completed, or executing Direct Processing Cost Allocation while Allocation Basis Creation has not been completed, will display error messages.

Purchase Item Evaluation: Calculates the inventory amount for the purchase items of raw/ subsidiary material or merchandise, based on inventory evaluation method. Also calculates the differences in issue amount. For more information, refer to [Costing>Actual Cost>(B)Purchase Item Evaluation.

Actual Cost BOM Creation / Common Material Cost Calculation

Actual Cost BOM Creation: Creates an Actual Cost BOM by summing up the production goods receipt data (subcontract receipt data, in case of a subcontract item) from Production Management and by summing up the issue detail of component items assigned to parent items.

The production goods receipt data are managed in [Production>Manufacturing Order>Production Goods Receipt], and the issue data of component items in [Production>Manufacturing Order>Component Issue].

Common Material Cost Calculation: Of the unplanned issue/production issue items in Inventory Management, sums up the amount of raw materials, subsidiary materials and semi-finished products, which have no manufacturing order number, as a Common Material cost. In the case of unplanned issue, the items set in the [Costing>Costing Master Data>(E)Cost Movement Type] as eligible for common material const calculation can be operated in this menu. The material cost is then allocated to products according to Allocation Basis specified in [Costing>Costing Master Data>(E)Allocation Rule].

The issue details of Inventory Management are managed in [Inventory Management>Receipt/Issue].

Summation of Processing Cost: Sums up Processing Cost incurred from journals by cost center or control item.

For more information on the settings of the summation of processing cost by control item, refer to [Costing>Actual Cost>(E)Direct Allocation by Account].

Allocation Basis Creation: Automatically calculates Allocation Basis, which is the ratio to be allocated to each entity, for those allocation factors of which Allocation Basis is set as Automatic in [Costing>Costing Master Data>(E)Allocation Factor].

Allocation by Cost Center: Allocates the processing cost (expense) that are summed up from non-manufacturing cost centers to manufacturing cost centers through an allocation between cost centers.

Allocation is made according to the allocation rule by cost center entered in [Costing>Costing Master Data>(E)Allocation Rule by Account].

In case you have selected, as an allocation rule, the allocation factor whose method of creating a allocation basis is set as Manual, you must enter the ratio in advance to be allocated to each cost center in [Costing>Costing Master Data>(E)Allocation Rule by Cost Center]. You need to focus on the cost centers being allocated cost centers.

Allocation by Item: Allocates the processing cost which is summed up into Mfg. Cost Center, or which is allocated to Mfg. Cost Center after the process of Allocation by Cost Center, to the product and ending WIP of the item produced at the relevant cost center.

Allocation is made according to the allocation rule by item, entered in [Costing>Costing Master Data>(E)Allocation rule].

Refer to the conversion rate entered in [Costing>Costing Master Data>(E)Product Conversion Rate], when allocating to the ending WIP.

Initial WIP Amount Allocation: Allocates the Initial WIP amount carried over from the previous month, to the product and ending WIP with the same manufacturing order number.

Direct Processing Cost Allocation: Allocates Processing Cost summed up by control item such as item, biz partner, plant and item group, based on the manufacturing order number of products or the P/O number of subcontract items.

Allocation is made according to the allocation rule for direct processing costs, entered in [Costing>Costing Master Data>(E)Allocation rule].

Common Material Cost Allocation: Allocates Common Material Cost to items.

Allocation is made according to the allocation rule for common material costs, entered in [Costing>Costing Master Data>(E)Allocation rule].

Material Cost Calculation: Sum up the amount of items assigned to Material Cost. Reflect the difference amount found in Purchase Item Evaluation as Material Cost. For more information on the reflection of the difference amount, refer to [Costing>Actual Cost>(B)Purchase Item Evaluation].

Roll Up: Execute the Roll-Up of adding up the cost of component items to that of parent items referring to the actual cost BOM, once the cost by item has been calculated by means of the summation and allocation of material costs and processing costs.

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