Question

Part cost - multi level structure

  • 6 October 2020
  • 2 replies
  • 510 views
S
Rank
Userlevel 5
Badge +8

We are working on moving to standard costing from weighted average and in our analysis, we do have a question on explaining why doesn’t Cum Qty per Assembly <> Qty per assembly?  What condition causes this?  Please see the example below:

 

 

Both part numbers 11032 & 11033 have 1 unit per assembly but the cumulative Qty per assembly = 0.  

When adding on to the Total Cost to next level, it therefore does not take into account the cumulated level cost even though the unit cost has a cost.  

Part# 11033 - unit cost = .9994 x cum qty per assembly = 0 = 0.  So the Total cost to next level just carries over the cost level from part# 11007 =.73

So, I guess the question is if there is a qty per assembly value (1 in this case), why does it not carry over to the Cumulative Qty Per Assembly (0 is this case)?  

Thanks!

Mark

 

2 replies

M
Rank
Userlevel 6
Badge +12

Hi! I think you should move the Planning Method column to the left hand side of this tab, so it becomes visible. I bet it is ‘P’ or ‘K’ (phantom parts) for your selected parts. For example, a P phantom can have a level cost, but that level cost is not contributing to next parent in the product structure. There are some technical reasons why we display 0 in the Cum Qty per Assembly in this tab for phantom parts. I hope you can live with this short explanation :-)

One interesting exercise you can do in this tab is to sort on Cumulated Level Cost in descending order, and then you will have your most expensive components and subassemblies in the top. Good with some cost awareness…

Good Luck! 

S
Rank
Userlevel 5
Badge +8

Many thanks Majose, I believe this explains the reason.  Best Regards, Mark

Reply


Terms & ConditionsCookie settings