Manufacturing environments involve maintaining standard costs for new manufactured items. A typical scenario involves a new manufactured item with a new bill of material (BOM) that contains new purchased items and new manufactured items as components. The following guidelines focus on this typical scenario.

The following guidelines assume use of a two-version approach to standard cost updates, where one costing version contains the initially defined standard costs for the frozen period, and the second costing version contains the incremental updates that pertain to the new manufactured items. The incremental updates will be entered as cost records within the second costing version, and ultimately activated.

The two-version approach requires the definition of a second costing version, where the guidelines for defining this costing version include:

  • Assign a costing type of standard costs.

  • Assign a significant identifier to the costing version that communicates the contents, such as 2008-UPDATES.

  • Ensure that the content includes cost records.

  • Allow the entry of cost records for all sites. Entering a site will limit the entry of cost records to the specified site.

  • Use a fallback principle of active costs.

To add new manufacturing items throughout the frozen period, complete the following steps:

  1. Use the form to allow the entry of cost records into the second costing version that contains the incremental updates. Prevent the activation of pending costs, where activation will be allowed after pending costs have been completely and accurately defined. Indicate a blank from-date as a policy in the costing version, and then enter the from-date when you enter each cost record. The from-date should represent a date before the new items will be purchased or manufactured.

  2. Use the form to enter cost records for new purchased items. For each cost record, enter the costing version that contains incremental updates, and use a from-date that precedes the anticipated manufacturing date for new manufactured items.

  3. Calculate the cost of new manufactured items by using the form. You can open the form from the form, and by selecting the costing version that contains the incremental updates. Use the selection criteria to selectively identify the new manufactured item and any of its manufactured components. It may also be necessary to selectively identify any parent item (within a multilevel product structure) that contains the new manufactured items as a component.

    Enter a from-date for the BOM calculation that corresponds to the start of manufacturing for the new manufactured items. The from-date should be within the effective dates for the item's BOM version and route version.

    Note Note

    A missing cost record can indicate a new manufactured item. BOM calculations can be limited to items with missing costs. For more information, see About BOM calculations for items with missing cost records.

    Verify the calculated costs for new manufactured items for completeness and accuracy. Use the form to review the calculated costs for each item cost record and any Infolog of warning messages. Alternatively, use the report to review the calculated costs.

  4. Change the blocking flag to allow the activation of pending cost records within the second costing version by using the form.

  5. Activate all pending item cost records within the second costing version by using the form, which you can open from the form. The pending cost records for individual items can also be activated by opening the form and by clicking the button.

  6. Use the form to change the blocking flags within the second costing version to prevent further data maintenance. The blocking policies will prevent the entry of new pending costs and the activation of pending costs.

See Also