Hi,

We are using Baan IV c2 with Oracle back-end.

When we take report of Print Actual Costs by Production Order (ticst0401m000), for some components in some orders system shows very high value; even if its Standard Cost Price is very less.

Can anyone please tell me how is this Actual Cost Price calculated ?
I find that the report takes it from table Estimated and Actual Material Costs (ticst001).
Can someone tell by what formula this field is populated ?

My assumption is that it should take only Standard Cost Price.
Is it correct ?

Thanks

Hi Baaniac,

the actual costs are - contrary to the standard costs - ACTUAL costs.

So, you basically get as actual costs of a production order:
The standard costs of the material ACTUALLY ISSUED to the
production order

plus

The operation costs (ACTUALLY reported time x ACTUALLY used operation rate)

Only if you backflush times and material (and don't change
the estimated material list of the production order) you will get the standard costs of the produced item.

**Also note that since the costs are based upon actual reported hours and the actual material issue to the job, if there is extra (unused ) material that is kept in WIP to be used on another job and was not returned to stock from the job it was issued to; this will dramatically increase the actual costs reported for the job. This is a somewhat common practice in a lot of companies, although it violates good material control practices.

Michael

dear friends

we are using baan IV c3 scc on an Oracle db.
I am trying to understand how the actual costs are calculated for a product. The explanation of baaniac gave us hope that someone knows about this. What we are experiencing is that although the same route is used with the same parameters the actual and estimated costs are different which is an objection to baaniac's comment.

best regards

god bless baan users :)
they are decreasing day by day :(

Just thought my last post over again.

There is the following other issue that may cause differences:

Within item master data there is a field indicating how many items will be considered to be produced during a "normal" order. (I don't remember the field name right now). That means, the fixed operation time within the routings is divided by that number, multiplied with the operation rate, and that amount goes into the standard cost price.

Now, if your actual production order is for another number of units, of course this "per-item-amount" of the fixed operation time costs may differ from what you calculated as standard costs.

Yours,
Uli

thank you Ulricht for your quick reply.
I got your point, you want to indicate the economic order quantity field on item data.
this is 1, and the quantity on the production order is 1000,
therefore the setup time on the default routing and on all the routings of this item is 0.
so I think this field must have no effect on the calculation.
am i right?

On the HRA parameters under Production parameters, we had a surcharged type selected as Hourly Labor Type for Backflushing.

Hi Volkan Bey,

Here are my suggestions:

-Check the HRA Parameter "Actual Operation Rates" It should be 'Estimated Rates' in your case I think.

-Economic order quantity is important when you use quantity dependent rounting in the item master.

For any information you need

fatih@elan-prj.com