Product request details - 5. Costs

The Costs tab of the product request page offers an easy way to determine the sales price for your planned product. First the labor and material costs are calculated, then the cost of sale is determined, finally the resulting sales price is displayed.

The calculation is based on the material and resource costs, the parameters chosen on the Build Settings page, as well as the price source, the price destination and the lot size specified on the costs tab before starting the calculation.

Before starting a new calculation, the Costs tab just contains three fields:

• Price source - Here you can override any default chosen on the Settings page by selecting a new price list from the dropdown list.
• Price destination - Here you can override any default chosen on the Settings page by selecting a new price list from the dropdown list.
• Lot size - Enter the standard quantity produced in a lot which will then override the value set in the item master data.

Click Start calculation (shown in green frame in the screenshot above) to display the cost components and the resulting final sales price.

The calculation is updated dynamically when you change any of the calculation values. If you wish to change your price lists and lot size, you can launch another calculation cycle by pressing New calculation (shown in a red frame in the screenshot above).

The Refresh direct costs button (shown in a yellow frame in the screenshot above) can be used to refresh the direct material and direct labor + material cost in case the price source or operation plan of the product has changed.

If the Update sales price on release switch (shown in a green frame in the screenshot above) is enabled, then the final sales price is saved into the price destination price list of your ERP system, when the product request is released. If this switch is disabled, the final sales price is not saved to your ERP system and the calculation only exists in Build.

If the price source or price destination is not in the local currency that is set in your ERP system, the exchange rate of calculation day is used.

For cost calculation formulae and an example calculation of direct costs, see Cost components - Definitions and an example.

Cost breakdown charts and lists

At the bottom of the Costs tab of the product request page you can find two sub-tabs: Charts (the default) and Lists.

The Charts tab offers a visual representation of the cost breakdown.

The Lists tab contains two tables showing the breakdown of direct material and direct labor costs by material and resource, respectively.