cost-plus-markup approach AX2012?

Dear all:

Hope you are doing very well.

Can any one explain to me the meaning of “cost-plus-markup approach” in AX2012 when running the production order estimation with example if applicable?


By using a cost-plus markup approach, the item’s calculated sales price reflects the set of profit-setting percentages that is specified for the BOM calculation and the costs that are associated with its component items, routing operations, and applicable manufacturing overheads. The markup reflects profit-setting percentages that are assigned to cost groups and the cost groups that are assigned to items, cost categories for routing operations, and the indirect cost calculation formulas for manufacturing overheads.

Many thanks for your reply , but I have another question , the sales price using this option is a “suggested sales price” only , which means that I have the option to activate this price for sales or not , or I can use my price in the sales transactions if don’t activate this price in the costing version , is this true? please advice.


If you chose to activate it then it will be written to the cost/price matrix and referenced if no trade agreements are present, otherwise it would use the trade agreement, item card or 0.