Questions about Costing Sheet

Hi all,

I’m using AX 2009. As far as I know, costing sheet consists of material costs, production costs, and overhead costs. Production costs is applied from item’s route configuration and its configuration copied as default setting to production order (correct me if I’m wrong). My question, how do I apply material costs and overhead costs to production order? Second, if I configure production costs from item’s route, where do I configure material costs setting and overhead costs setting? Thanks.

Material costs come from the BOM

Overhead costs come from the configuration of the costing sheet, where they are applied to cost groups and these cost groups are used in the production of the product.

On a BOM item press the Price button and Calculation, once finished press the Complete button and you will see a full breakdown of the costs expected for the product.

Material Costs are in the costing sheet through the use of cost groups. Overhead is the same and applied to the labour or material nodes of the costing sheet.

Hi All ,

Is it mandatory to configure the Costing sheet and why we need to configure ? How it would helpful in a busniess scenerio ?

Yes you need to configure it

It displays the cost breakdown by cost group against any price calculation (item or production views).

It is the only way to apply indirect costs.

Hi Adam ,

Still i am not clear about how this functionality really helpful to customers ?

Run teh price of the item for a BOM item, assume it has 20 items all segregated into different cost groups, you have different processing costs through teh route and you have indirects from all of this. Without the costing sheet you would see one cost or the complete breakdown. With the costing sheet you can see it broken into meaningful elements to the business. In addition you cannot setup indirect costs without it.

Hi Adam,

Can I open this discussion again?

I encountered the same case. Now, I have interpretation that your reply above is required by standard cost item model group.

If the item has real cost (such as. FIFO, LIFO, or weighted avg), your conclusion above is not apply. Does my preception is true?

Because, now, in my understanding, COGM of item with non-standard cost is defined by actual material and route consumtion. So, system will treat those cost (material cost and other cost categories in route setup) as direct cost. Where I can set Indirect cost for non-standard cost item?

Next questions, if there is a way to set up indirect cost for COGM of non-standard cost item. It will be double entry on accounting. One from cost actual in GL entry and one already included in COGM.

Please tell me your oppinion…


No the answer is not related to standard costs, it is the costing sheet, not the costing version - you configure indirects in the same manner and they are applied to the known costs at the time.

Thank you Adam for your answer.

Now, I understand that.

Though, I found that’s limitation because the indirect cost is based on hourly rate which putted on cost group. Which means, it’s not the actual cost.

I am having a perfectionist customer with their costing.


So they wanted the electricity indirect cost to be retrospectively applied and apportioned based upon the actual after the accruals had been placed to ascertain an indirect in the first place? Ultimately depends upon what indirects they want and how. Of course there is also the ROI of this approach and the detail, and say the cost of a customization to do this over the difference it actually impacts.

Yes, you’re right. First, they define a rate for indirect cost (as standard AX does). After they post actual consumption (example: from GL), they want to allocate the variance to COGM. Next, they will compare the variance with rate for fine tuning the rate before (to be more precise).

Let me simulate with a simple flow :

  • There’s rate/ hours for indirect cost machine depreciation $ 10 per hour.
  • A production running machine on Sept was 100 hours, for 100 pcs FG produced. So, Total indirect cost is $1000.
  • On end of Sept, Actual depreciation fixed asset for the machine is $ 1500. So, the variance is $500.
  • They want to allocate $ 500 for the COGM, or equal to additional $ 0.5 for each FG produced.

I’ve been thinking to custom tools to provide those scenario.

If there is standard function on AX 2012 R3 capable to do this (maybe module Cost accounting?), It will be such a relief (I mean less custom, simpler is better)…