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Question

Excluding machine setup time from product costing

  • May 15, 2026
  • 3 replies
  • 38 views

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Hi everyone.

I’m looking for a way to exclude workstation configuration costs when calculating product costs. In my company, production involves a high degree of batch variation. In my case, the standard batch size always generates deviations that I would prefer not to analyse every time. For the calculation, I use the following cost elements: 300, 321, 322

 

Thanks in advance for your suggestions on how to solve this :)

3 replies

Lakshan Thiranagama
Hero (Former Employee)
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Hi,

It is not clear what you have defined as 300 here. 

You can exclude cost code 320 to exempt machine setup costs from the manufacturing costs template. However, if machine overhead costs (321 and 322) are included, the system may still calculate setup-time-related overhead costs depending on the work center overhead unit.

i.e. If it is hours it will be included. And if it is quantity the setup time will be excluded.

Thanks!

Lakshan 


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  • Author
  • May 19, 2026

Hi,

You’re right, I was referring to cost elements 320, 321, and 322. For cost elements 321 and 322, I use a time unit. In my case, this unit is much more precise than “piece.” Of course, thank you very much for the advice. I will also test this solution. My question is, does IFS plan any changes here and will it allow us to disable setup time for cost elements 321 and 322 in the future?


Lakshan Thiranagama
Hero (Former Employee)
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Hi ​@L.Krupa ,

You’re welcome. As per the latest R&D updates, there are no planned changes in the manufacturing costing area at this time. Alternatively, you could define a zero-cost work center for setup time and include it as a separate operation in the product routing.

Thanks!

Lakshan