Part number that will go to production is XYZ. I did a cost roll up yesterday for this part and it updated the cost in Part Tracker to $487K. However, the cost in the Bill of Material Cost is listed as $271K. Could you please advise why the costs are different and what can be done to correct it?
seems like you may have made some modification in cost rollup that messed up the roll.
if you pull it into the costing workbench right now and re-roll, what cost do you get?
Don’t post it of course.
But this already got posted. Is possible re-roll again
Cant re roll, would have to start another group. If you run the Print Cost Set Group on the original Group that will tell you what changed.
Thanks understood. Could you let me know where to see the cost in Bill of Material represents?
BOM Cost report? Is my understanding correct?
BOM Cost report is a little misleading.
Say you have a finished good FG001
FG0011 is composed of Manufactured Part MFG001, MFG002 and Purchased part P001. all these parts are defined ( engineered) in Engineer workbench.
For example MFG001 takes 1 hour to build, its Labor cost will be $10 ( example $10/hr labor rate)
MFG002 takes 2 hours to build-- $20 Labor.
now FG001 takes 30 min to build- Labor $5
The BOM cost report will give you $35 Labor, not necessarily the labor cost for that part only( FG001)
The Material cost in the BOM report will give you the TOTAL mtl cost of everything. Not just the Mtl cost of FG001)
FG001 Mtl cost would be TOTAL cost of MFG001+ TOTAL cost of MFG002 + Mtl cost of P001.
I hope I didn’t muddy the example up to much.
Dean
This example assumes that MFG001 and MFG002 are Qty bearing and built as subassemblies before final assy of FG001
Thank you, May I know where should I get the cost in Bill of Material represents?
Not clear on what you are referring to . Bill of Material Cost Report ?
Yes, May I know where to check the cost of bill of material?
So many variables here.
Are you Std Cost, Last Cost, Ave Cost ?
Backing up a bit, did you ever run the Print Cost Set from Costing workbench?
We are using standard costing; I have not printed the cost set from costing workbench.
Good, that’s easier. Its going to take some legwork to find out why the difference in the costs. My first step would be to see what changed— from the cost set.
I can not tell you with any certainty where the BOM Cost Report gets its data. I do know the Costing Workbench gets its costs from the methods defined in Engineering WB. This would cut down on what to look at.
Refering to What Mr Taylor said before, you could have mistakenly selected Last Cost or Ave cost when you processed the rollup.
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You can easily re-roll and look again and post again.
Just create a new costing group and do the exercise again.
Check the costs before you post the group though. If you would have checked before the posting you would have seen that something was off.
My question is regarding the meaning of the cost that appears in the Bill of Material.
I understand the standard cost that appears in Part Tracker is the actual standard cost for the part but what does the cost that appears in the Bill of Material represent? Does it represent the estimated standard cost based on the current year’s labor and burden rate?