Costing versions for standard costs must be designated with a type of standard cost and allow content to include cost data. The costing version can contain a set of standard cost records about items, cost categories for routing operations, and indirect cost calculation formulas.

  • Several restrictions apply to a costing version for standard costs. The restrictions ensure adherence to standard costing principles.

  • Miscellaneous charges must be included in an item's cost. The miscellaneous charges for a manufactured item represent the amortized constant costs within bill of material (BOM) and route information, so they must be included within the unit cost. The miscellaneous charges for a purchased item will also be included in its unit cost.

  • Calculation of standard costs for manufactured items must be based on cost records within a costing version for standard costs. Alternative sources of cost data (defined by the BOM calculation group) can only be used with a costing version for planned costs, such as purchase price trade agreements for purchased items.

  • BOM calculations must be performed with a single level explosion mode.

The item cost data for standard costs can be copied to another costing version that contains standard costs or planned costs. However, item cost data for planned costs cannot be copied to a cost version that contains standard costs, because the restrictions that are listed earlier in this topic would not apply to planned costs.

See Also