Question

Cost Calculation for repair shop order

1
Rank
Userlevel 3
Badge +8

Hi,

In a shop order we can see three  cost calculations

  1. Standard cost
  2. Estimated Cost
  3. Actual Cost

For a repair shop  order how this cost calculation is done  ?

I can  see standard cost values are inherited from the part cost (cost rollup) of manufactured structure, which is not correct in my opinion. 

Also when I check  the actual cost, it has taken estimated cost of the components which are used  to manufacture the part. This is not correct. When doing  a repair , manufactured structure components are not used. Repairing is done for an already manufactured part. In repairing process, may be new components are not used at all and only few operations can be take place.

I don't see the cost is done correctly in a repair shop order.  Can someone please  describe above  three cost calculations for a repair shop order (Standard, Estimate and Actual)?

Note: I'm using IFS Cloud 22R1.

 

Thanks in advance.

Kind regards,

Yashodha. 

Kind Regards, Yashodha.

2 replies

S
Rank
Userlevel 7
Badge +28

Standard - as you say, that is the cost of the manufacturing structure at the start

Estimated - the cost of the shop order at the point it is released after any adjustments have been made to the material and/or operation

Actual - the accumulated cost of the operations completed and the material issued

 

For a repair shop order, are you using a different part number to perform the repair against?

You can’t use the same part number as the completed product for a repair, because it will definitely not represent the correct cost.  A repair shop order should start with no material and maybe one standard operation at the start and then the shop order material and operations should be adjusted first BEFORE releasing the order at which point the estimate will be saved as a snapshot.

D
Rank
Userlevel 4
Badge +9

Hi 

The IFS cost calculation in Part Cost works with manufacturing structures, there you cannot select repair Structure Alternates and set the Standard Cost using Copy Costs to Cost Set 1..

That means the Standard Cost we set by Copying Costs to Cost Set 1 is set for Manufacturing.

So in the Shop Order Costs, what you see as the Standard Cost is the Cost for Manufacturing and we do not have a Standard Cost for Repair.

 

The Shop Order estimate Cost shows the Cost that will be incurred based on the Shop Order Materials and Operations.

As an example if you create a Shop order and remove all materials and operations, then you would see the Standard Cost in Cost Set 1 for the part as the Standard Cost and the Estimate Cost =0.

This Estimated Cost is calculated based on the information in the Material and Operation Tabs.

The repair material also needed to be issued to this shop order as a component and the cost of that also taking in to account, however if this repair material is owned by the Customer, then the cost of the repair item will be considered as 0.

The Actual Cost also is the Cost based on the Transactions (Material, Operation, General Overhead)  taken place against the Shop Order.

During repair, what ever the additional cost incurred for the repair other than the cost of the repair Item is finally posted as SOREP Posting when the Shop Order is closed, that usually captures the cost incurred for the repair using a particular Shop Order excluding the cost of the Repair Item.

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