In this task you will run a batch cost rollup to establish an initial estimated cost for each of your manufactured items.
Links:
Estimated Costs Overview
Estimated Costs for Purchased items are updated on an ongoing basis
1.Verify pricing for your default supplier sources when you send out purchase orders from the MRP screen
2.Periodically mass update the Est Cost based on the default supplier price in the BOM > Estimated Purchase Cost screen
Estimated Costs for your Manufactured items are always rolled up in BOM > Cost Rollup
1.Material Costs come from estimated costs of purchased items (see above)
2.Labor and Mfg OH costs come from Shop Rates and cycle times in Job Routings
▪Periodically (ie Quarterly) review your Shop Rates for Labor and Mfg Overhead
▪Update your Routing cycle times to reflect reality on an ongoing basis
3.Subcontract costs come from Subcon Routings. You can manage your subcon routing sequences in the Estimated Subcontract Costs screen.
Constant Refinement of Estimated Costs
Manufacturing is a practice of constant refinement and improvement. You will want to dedicate yourself to constant review and feedback of your estimated costs to improve and hone them over time. Your job estimated costs will serve as the basis for your receipt costs, inventory value, and cost of goods sold. You will want to regularly run BOM > Cost Rollups after you perform any of the above processes.
