# Calc Standard Cost

Navision 3.60 on the item card button named item, there are two calculate standard costs for Assembly and Manufacturing please could anyone confirm how they work.

Hi Andrew I believe they call the same routine, so are identical, calling the calculate standard cost codeunit. If you pick single level it will sum all the unit costs of all the items, at the level below the BOM, all levels will calcualate all levels. Of course if you are using the inventory BOM you only have ONE level. As standard is selected the unit cost becomes the standard cost, which for purchased items will be material costs, for manufacturing this will be material, capacity and subcontractor costs. The manufactured item has the teh material cost with and indirect cost% and or overhwad rate from the manufacturing tab. Labour and machine costs to produce the item and any subcontractor costs will make up the standard cost calculation. As an example: Item…Capacity Cost…Overhead Cost…Material Cost X…5…6 Y…3…3…10 Z…2…1…5 Item X is made up of the two subassemblies Y and Z Single Level The system calculates the sub assemblies first. With the total becoming the material cost of the parent. Therefore the total cost of Item Y and Z becomes the material cost of X (24) Item X → 24 + 5 + 6 = 35 ------------------------- Item Y → 10 + 3 + 3 = 16 Item Z → 5 + 2 + 1 = 8 Multi-Level Only the material of the sub assemblies becomes the material of the parent - dividing the cost components down. Item Z → 5 + 2 + 1 = 8 …|…|…| …V…V…V Item Y → 10 + 3 + 3 = 16 …|…|…| …V…V…V Item X → 15 + 10 + 10 = 35 The best way to understand all of these intracacies is to set up multilevel BOM’s with associated routings, and overhead costs and run this process through [:D]

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Originally posted by SBWEAVER a/ I believe they call the same routine, so are identical, calling the calculate standard cost codeunit. … b/ Of course if you are using the inventory BOM you only have ONE level.

a/ there is a major difference, one uses assembly BOM, the other used P BOMs and routings. b./ you CAN have multilevel boms using assembly boms.

Hi David But do they call the same routine? - and are just run differently depending upon the starting point, that is what I meant. Andrew asked “How they work” so I was trying to point him in a coding direction, and then I explained the mnaufacturing and purchased differences - which whilst not directly stating produciton BOM and Inventory BOM differences it was kind of implied - I should be make myself clearer obviously [:D] The inventory BOM is designed to be a flatter structure based upon ONE level per item, not multi level. Whilst you can have a Bill within a Bill you are calling the item, not the BOM therefore you have to have it in stock. From a manufacturing perspective this is a single level BOM, and manufacturing companies that decide not to opt for Production BOM’s and use inventory ones instead always have to redesign the BOM structures to satisfy this flat structure.