Hi everyone,
I would appreciate your advice on the expected behaviour of the Charged Item setting on a sub-component linked to a subcontracted main part in the Product Structure in IFS Cloud.
Our scenario is as follows:
- We have a subcontracted main part, MAIN001 (Purchase), linked to a sub-component, SUBC001(Purchase).
- The cost of the main subcontracted part is correctly calculated by taking into account the cost of its sub-components, resulting in the correct unit cost.
- When the component's Charged Item setting is set to “Item not Charge “on the Product Structure, running Part Cost Calculation for Cost Set 2 appears to roll up the sub-component cost into the main subcontracted part's cost, resulting in a double cost.
- However, when the setting is changed to “Charged Item”, the sub-component cost does not appear to roll up into the main part's cost, and the Level Cost and Accumulated Cost appear to be correct.
However, changing this setting does not appear to have any financial impact on the actual transactions, which is the expected and desired behaviour
My questions are:
- What is the functional difference between the Charged and Item not Charged settings for a component linked to a subcontracted part on a Purchase type Product Structure?
- Why does the Charged Item setting affect the cost roll-up during Part Cost Calculation for Cost Set 2, while having no financial impact on actual transactions, as expected?
- Is this expected standard IFS Cloud behaviour, or could it indicate a configuration issue or defect?
I would appreciate any assistance from anyone who has encountered a similar scenario or has knowledge of this functionality and its impact on Part Cost Calculation.
Thank you in advance for your help.