Question

Part cost calculation per deviating amount

  • 23 August 2023
  • 1 reply
  • 39 views
TdeKok
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Badge +2

Our customer manufactures parts in batches of thousands of pieces. The cost per part is very low, like a couple of cents. In their old system, they are used to calculate parts per 1.000 pieces so that they get more accurate information on part cost.

In IFS Cloud, we prefer not to change the inventory UoM to 1.000 pieces since this would impact shop order planning and sales.

This method will be applicable, for example, in the plastics processing industry, injection molders dealing with multiple cavaties.
Companies with raw materials in kg and small manufactured parts in grams.

Is it possible to calculate part cost per 1.000 pieces somehow?

Are there users that have similar requirements and how have you handled it?

1 reply

M
Rank
Userlevel 6
Badge +12

Hi, In IFS Costing where everything is about establishing unit cost for your Inventory Parts. And in many cases to set a standard cost for 1 [uom] of the Inventory Part. And sometimes you can play around and test in another cost set to include extra overheads etc etc. If you want to inflate values you could use the Bucket Frequency that you can find on the lower portion of the Cost Template page. BUT BUT then you have to have special cost template that should only be used for a dedicated cost set and never ever copy this into cost set one. Bucket Frequency acts as a multiplier in the cost calculation.

I guess you kind of ask for a Costing UoM on the inventory part...

Cheers,

Mats 

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