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Hi all, 

I am new to the cost calculations in IFS, and I am hoping for some guidance. Essentially, i would like to input “projected” purchase part costs to see the impact it would have on the manufactured component. I am trying to use Cost Set 3 (latest purchase price) to input a new value. I was reviewing the Cost Set Est Mtrl Cost field and assumed I could use that to set a new projected cost of the purchase part. However, when I set that value and run cost calculations I do not see the new value. 

As an example, the purchase part current cost is $.50. I would like to simulate the cost going to $2.00

I am unsure how to update Cost Set 3 to reflect the esteemed mtrl cost of $2. I believe this would also help when using the Estimating module. If I can build an estimate using the project purchase part cost, this would allow for more accurate cost Estimating for future work. Any guidance would be greatly appreciated!

hi, 

 

in order to calculate values for the cost set 3, we must first run a calculation to calculate purchase costs for the materials running the following from the navigator (latest purchase price populates cost set 3 values for the purchased component parts)

 

his will populate the fields under purchased Inventory Parts (in EE this is a tab in the Inventory Part window)

 

After that, we should run a calculation for Cost Set 3 for the manufactured parts we wish to analyse, or all items. 

 

hope I’ve understood your question and this is helpful!

@IRituma I have followed the process you’ve outlined, however, the Cost Set 3 value is still identical to the current cost (found in Cost Set 1). It has not updated to the $2 that I’ve indicated on the Part Cost.

 

 

The cost set 3 in default setup is defined to use the latest purchase price (calculated) and not Estimated material cost.

The cost set 2 by default is set to use the estimated material cost. 

 

So if you want to use estimated material cost field, we should either update the below setup or use cost set 2. 


There are quite a number of settings and nuances when it comes to costing, it might be worth getting some more tailored help by requesting consulting help to resolve all issues.

@IRituma Thank you for the clarification, I understand the Cost Set calculation now. The last item I am unsure of is the Cost Set Est Mtrl Cost field. What would this be used for if you’re using the Estimated Material Cost from the Inventory Part record?

 

 

When you run the cost calculations, IFS shows this checkbox “Copy Estimated Material Cost From inventory”.

  • If it’s set to TRUE - then the estimated material cost will come from the inventory part record for all component parts
  • If it’s set to FALSE, then the “Cost Set Est Mtrl Cost” on the “Part Cost” window will be used instead

We usually suggest using the estimated material cost from the inventory part instead of using one value in the Part Cost window, because that gives more granularity and takes into account quantities for the components but depends on the scenario.

 

 

@IRituma Thank you very much for the clarification! 

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