Link costing sheet to item or route

Finance and Operations/AX User Forum
1

Hi everybody;

hope you are doing very well.

I want to ask question about the costing sheet ,how I can link a costing sheet to specific item or specifc route??

for example:

Item A , linked to costing sheet X with cost categories.

Item B, linked to costing sheet Y with cost categories different from cost categories in costing sheet X.

OR

Route A , linked to costing sheet X with cost categories.

Route B, linked to costing sheet Y with cost categories different from cost categories in costing sheet X.

many thanks in advance

2

You can only have one costing sheet - have you opened it? Seems to be no different in your “OR” statement.

3

Many thanks AdamRoue for your reply , I have this case , my customer use different types of cost categories(indirect costs) for different types of production lines , is it possible to use the costing sheet in this case??

I understand from your post that the costing sheet cost categories (indirect costs) will be reflected on all produced items , so it is not applicable to use the costing sheet in my case.

please advice

best regards

4

There is no issue with this; your cost categories have cost groups and your costing sheet is a reflection of costing groups and you apply the relevant indirect costs to the relevant cost groups. Not a problem at all to define different rates to different production lines.

5

Dear AdamRoue;

Thank you for your great efforts [:)]

I have this case regarding the costing sheet, my customer use different types of cost categories (indirect costs) for different types of production lines:

For example, the “Electricity” cost price in the first production line is different from the “Electricity” cost price in the second production line (defined as two separate cost categories because they have different cost prices), and the two lines used to procedure different items.

Another case, some production lines use cost category “Gas” and others are not using this cost category.

I understand from your post that the electricity will be added to all produced item twice and the “Gas” will be added to all produced items because I can’t link the costing sheet to specific item or route and there will be one costing sheet defined in my system.

Is this conclusion true??? Please advice

6

You need to understand the different ways of apportioning costs in AX.

You have chosen to use a cost category, but have not actually said how - if this is a cost against run time for example where is your labour cost, if this is against quantity then what happens when you make 100 but RAF 60, you still consumed energy for the 100 but the cost would be 60.

So questions

How are you expressing energy specifically? - give an example

How are you then quantifying other costs?

What is the dividing point of the energy apportionment from a difference perspective?

Have you tried to configure the costing sheet with indirect costs and seen what it does?

Basically if you add electricity as a cost category AND add an indirect to that cost category it would be costed twice - but of course you would never do this. The cost category of the machine is the time cost, but not indirects, these are then applied to the production costs as an overhead.

7

I have a question, is there a difference between the indirect cost and the cost category in AX2012, I read in some articles that the indirect cost are defined as cost categories but related to cost group with type “Indirect” , but the indirect cost defined cost category, is this true???

Case:

We have two production lines:

First production line called” Extrusion line”, this line have about 45 overhead costs for example:

Electricity–> price 0.1 USD per kg.

Insurance–> price 0.2 USD per kg.

Gas–> price 0.5 USD per kg.

.

.

.

Second production line called” Powder coating line”, this line have about 20 overhead cost for example:

Electricity–> price 0.2 USD per kg.

Insurance–> price 0.5 USD per kg.

Gas–> price 0.2 USD per kg.

The two lines defined as two different routes and produced different items (no item could be produced using the two lines).

My solution was:

1- 1- To define all the company overheads as cost categories related to cost groups named with the production line name with type “Un-defined”.

2- 2- Link the cost categories related to each line to its route as “Quantity” category using the route operations.

Note that:

1- 1- The two lines may have similar cost categories but with different prices.

2- 2- The cost of the items produced using the first production line must be affected only with the cost categories (Overhead costs) related to this production line only and the cost of the items produced using the second production line must be affected only with the cost categories (Overhead costs) related to this production line.

please advice

best regards

8

Yes indirect costs and cost categories are separate, although you can apply indirect costs TO a cost category.

You are basing you energy costs on the quantity cost category, therefore if you start to produce 100 and end up making 80 your energy cost apportionment is incorrect, it will cost at 80 for the quantity when the energy used is to make 100.

In essence if you have a price for KG you can also have a price per run time. Therefore you can create different indirect costs on the cost categories defined for run time as a flat rate of the process time or you could add a surchage of 0.5 per cost group or “x” per total of cost groups depending upon the detail you want to go to.

However you need to use the system options to meet the needs of the customer - there is no “wrong” way but you need to discuss all of the options and let the customer decide in reality. Difficult to say with the potential extensive requirements, but I would at least discuss the options.