hi all
Please advise on how you would handle the following:
on the routing the setup time is included in the cost. This is not a problem if the quanity is 1 but when you have lets say a qty of 50 the setup is multipled by the qty which is incorrect. There is only ever one setup cost regardless of qty.
how do we get the nav (6sp1 btw) to inc setup but the cost as over the whole prod order not by quantity?
example of how we expect it.
QTY of 1
setup 10mins @ £1pm
runtime 5rmins @ £1pm
total £10+£5 =£15
QTY of 10
Setup 10mins @ £1pm ( nav will take this cost and multiple by 10)
Runtime 5mins @ £1pm (runtime is fine as that is normal)
total £ 10 +£50 = £60 ( nav total would be £150)
In a nutshell the setup cost is a one off cost regardless of qty.
Thanks in advance
Set the lot size on the item card to the standard lot size of the manufactured item, and then the cost is divided by this standard setup element. My memory tells me this is the way it works, although I have not set this up but I beleive this is used in standard costing, in actual the quantity is used, but you have not said what your costing method is, or the version you are trying this on - 2009?
Thanks for the response.
our costing method is FIFO and we are not using lot sizes.
surely there is a way of “amortising” the setup cost over large qty’s
Thanks
The lot size is the basis of the cost attribution, so if you “generally” make in batches of 25 the cost is split across the 25 items, not a cost for each one. There is nothing else, you need to decide on how to attribute the cost on the standard make size, the setup time is the same whether making 1 or 100, Nav tries to apportion this based upon your settings, that is all it can do - anything else you have to modify it to do it.