# Calculate Unit Cost

hi,

can anybody help me… need to know How the program calculate unit cost? is it start calculate from BOM ? what is the formula…

thx a lot

What is the costing method?

Do you mean a manufacturing item only?

Do you have an example you do not understand?

Unit cost is related to your costing method.

what happened if i run calculate unit cost for Standard, FIFO and LIFO. i’m really blank because I only got this from Help :
This batch job recalculates the unit costs of a production order and enters these in the production order lines.

i mean Update Unit Cost in Manufacturing - Costing - Update Unit Cost [:)]

Hi friends,

I have Item 80005, Costing Method = FIFO and its BOM are :

1. Unit Cost = 2,071,409.30
1. Unit Cost = 0

When i Refresh & Update Unit Cost, here are the result :

• 80005, Unit Cost = 2,071,420.30
• 1251, Unit Cost = 2,071,409.30
• 70105, Unit Cost = 0

I confuse where the number 2,071,420.30 comes from . Can anyone help me… thx… need urgent

And the associated routing costs are?

Thx all, i’ve got the answer. It related with Scrap BOM, Scrap Routing, Fixed Scrap, etc.

Anyway, what is the difference between Update Cost one level and all levels? because i’ve tried it, but i didn;t find any difference. [:’(]

Change the cost of a sub component of a BOM, or better still go to the sub-component on the BOM and alter the scrap you have just found.

Then run a top level update cost, nothing will happen. Then run it for all levels. BOM’s have levels, it just wants to know if it should check at the top or all levels.