Routing (Unit Cost Per)


Does any one know how this field works, an example would be useful.



Hi Andrew

You can check it out by pressing F1 button on the field if its not a customized field.



Hi Ravi,

Thanks for your reply, yes the help is limited and I would like an example of how to use this feature and where I can see the results of using it.



To make a long story short - you need to enable specific unit cost calculation in the work center card, then you can fill “Unit Cost per” in routing lines, and it will be used as a base for cost calculation. Otherwise cost will be based on amounts from work center card.

Now the long example.

Create a work center. Let’s give it a number “500”. Select any work center group code and general product posting group code. Set “Shop Calendar Code” = 1

And fill work center’s unit cost. Field “Unit Cost” = 17.

For now, do not enable specific cost calculation for this work center - leave the field “Specific Unit Cost” blank.

Create a routing with one operation using this work center. I called it “TEST” and added an operation with work center 500. Filled “Setup Time”, “Run Time” and “Wait Time”. Besides, I set “Unit Cost per” = 25.

Next thing, I created a new item manufactured according to the routing just created.

Item: No. = “TEST”, base unit of measure = “PCS”, item category code = “MISC”, costing method = “FIFO”, routing = “TEST”

Finally, to the example of “Unit Cost per”. Create a released production order and set item “TEST” as a source. Refresh the production order and run Actions / Update unit cost

Notice the cost amount. It is 272 = 16 * 17. Capacity load time is 16 minutes, because only setup time and run time are included in cost calculation. Capacity unit cost (17) is taken from the work center card, since we did not enable specific cost calculation for this center, “Unit Cost per” from the routing line does not affect calculation.

Now return to the routing card and set the check mark in the field “Specific Unit Cost”

Open your production order again, refresh it and update unit cost.

Cost amount is different now. It is 400 = 16 * 25 (Unit Cost per in the routing line).

When creating the item above, I highlighted that the costing method used is “FIFO”. If you change it to “Standard” and run Navigate / Production / Calc. standard cost, you will see the same difference in standard cost amount in the item card.

Many Thanks, Great Example.