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Excluding machine setup time from product costing

  • May 15, 2026
  • 7 replies
  • 77 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 :)

7 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

 


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  • Author
  • May 21, 2026

Thank you for your reply ​@Lakshan Thiranagama 

It’s worth considering this solution. An additional step complicates the analysis of the production center. The hour is a good unit of measurement, it allows us to capture differences between products. Maybe a small toggle switch that would allow us to exclude setup costs for 321 and 322   :)


Lakshan Thiranagama
Hero (Former Employee)
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Thank you for your reply ​@Lakshan Thiranagama 

It’s worth considering this solution. An additional step complicates the analysis of the production center. The hour is a good unit of measurement, it allows us to capture differences between products. Maybe a small toggle switch that would allow us to exclude setup costs for 321 and 322   :)

Yeah, additional operation would complicate the routing but still it is doable. :) I also agree that it would be a nice enhancement to exempt the setup costs from hours related overhead costs of Work center. ​@Björn Hultgren ​Can we expect such enhancement in Shop Order costing area. Thank you! 


Björn Hultgren
Hero (Employee)
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@Lakshan Thiranagama Nothing planned as far as I know.


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  • Author
  • May 21, 2026

Maybe we should make a plan? Can you help with this?  ​@Björn Hultgren