Single Level BOM Cost Roll UP
Explains the purpose of Single Level BOM Cost Roll Up utility and how it works.
Solution ID = KB-336
Version = All Version
Module : SLMFG
Fact : INV
Database : Progress, SQL
Fix
The Single Level BOM Cost Rollup utility is specifically
designed to be used for establishing the initial Standard Unit Cost for
standard-costed, manufactured items added throughout the year using the
previously-established standard costs of the items which make up its current
BOM. It is not meant to be run for purchased items or for any item with a cost
type of Actual. Also, it is not intended to be a single-level version of the
BOM Cost Rollup utility.
An item's standard cost is set by running the Roll Current Cost to Std Cost
utility which copies the item's current unit cost to the standard cost fields.
For manufactured items, the current unit cost is calculated by the BOM Cost
Rollup utility which calculates the item's current unit cost using the item
master current unit cost of the manufactured materials which are in its current
BOM (along with the run, setup, overhead, from the item's current operations).
You have the option to have the BOM Cost Rollup utility use either the current
or the standard cost for purchased materials.
If at the beginning of the year you run the BOM Cost Rollup and then Roll
Current to Standard, the standard cost for your manufactured items will in
effect have been calculated with what is now the standard cost for all of the
materials in its current BOM. Then, over the course of the year, your current
routings and BOMs change which in turn causes the current unit cost to change
for the items.
The Single Level Rollup handles the situation where you add manufactured items
to the item master throughout the year and you want to establish their original
standard cost using the standard costs which were set for its materials at the
beginning of that year. Prior to its existence, if you added a new item,
created its current BOM using existing items, and ran the BOM Cost Rollup, it's
current unit cost would be calculated using the current costs of the materials
in its BOM (which no longer equal their standard) which in turn was rolled to
standard.
The Single Level Rollup was created to remedy this situation by calculating the
entered item's current unit cost using the standard cost of the materials in
its current BOM rather than their current cost. The intent is that you add a
new item, create it's current BOM using existing items and run the Single Level
Rollup for that item which will calculate its current unit cost using the
standard costs of each of its materials. You then run the Roll Current to
Standard for the new item to establish its standard cost. The next time the BOM
Cost Rollup is run the new item's current unit cost will then correctly be
recalculated using the current unit costs of the materials in its BOM.
