Production> Setup> Routes> Cost categories

Use this form to define cost categories that specify costs that are related to work centers and routing operations. Each cost category has an assigned cost group for supporting cost segmentation in the calculated costs of manufactured items. Different cost categories will be needed for handling different costs and cost groups, such as different hourly rates for different labor skills or machines, or for differences between setup and process steps. The cost categories (and costs) that are associated with a routing operation will be used by BOM calculations and by the route card or job card journals when reporting time against a production order.

Certain types of production labor hours may apply to project time estimates and reporting, thereby requiring a cost category also used for project purposes. A cost category used in projects can have project-specific costs and sales prices. When you select the field use in projects, the form displays additional tabs and buttons about project-related information. A cost category that is only used for project purposes should be maintained in the Categories form.

Note
Cost accounting also contains a Categories form, but this form has no relationship to cost categories for routing operations.

Tasks that use this form

Work center groups (form)

Work centers (form)

Operation relation (form)

Route (form)

Production route (form)

Example

A manufacturing company used three types of machines with different cost structures and two types of labor skill sets with different labor rates. The company defined one cost group labeled machines and assigned it to three cost categories that were defined for the three types of machines. Each of these three cost categories had a different hourly cost that represented the average costs for running the machine. The company defined another cost group labeled labor and assigned it to two cost categories that were defined for the two types of labor skills. Each of these two cost categories had a different hourly cost that represented the average hourly pay rate. The cost categories were assigned to the routing operations that were performed at the machine work centers and the labor work centers.

Navigating the form

The following tables provide descriptions for the controls in this form.

Tabs

Tab	Description
Overview	View and maintain cost category information.
General	View and maintain information for a selected cost category.
Ledger - Work centers	Assign the ledger accounts that are related to work centers for the selected cost category.
Cost price	If an account applies for a specific posting type for all projects, you can select the account in one of the account type fields. The accounts that are listed on this tab correspond to the accounts that are listed in the Cost pricetab in the Ledger posting form.
Sales price	If an account applies for a specific posting type for all projects, you can select the account in one of the account type fields. The accounts that are listed on this tab correspond to the accounts that are listed in the Sales pricetab in the Ledger posting form.

Buttons

Button

Description

Transactions

View the project-related hour transactions for the selected cost category. Other types of transactions do not apply.

Setup

Open the following submenu items:

Employees– Maintain a list of employees who are authorized to use the cost category.
Projects– Maintain a list of projects that are available for the selected category.

Note

The list is part of the validation system. You can set up validation groups in the Setup> Validationsection.
Cost price - Hour– Set up hourly costs for the selected category.
Sales price - Hour- Set up hourly sales prices for the selected category.
Line property setup– Set up a line property for the category.
Ledger posting– Set up ledger posting by category.

Note
The list of records in this form offers a quick overview of the posting profile of one specific category.

Function

The functions do not apply to a category for project hours; therefore, the submenu items appear dimmed.

Inquiry

View committed costs for the selected category.

Forecast

Open submenu items to copy or delete a budget or to transfer a budget to ledger.

Project Control

Open submenu items to view project-related information for the selected category.

Price

Define and activate pending costs for the selected cost category (for routing operation purposes).

Fields

Field	Description
Category Id	Unique identifier for the cost category.
Category Name	Description of the cost category.
Use in Project	Select whether the cost category will be used in projects, which will require entry of additional project-specific information.
Use in Expense	Field does not exist.
Use in Production	Field does not exist.
Category group	Select a category group with a transaction type of hours. Category groups are defined in the Category groupsform.
Transaction type	The transaction type of hours is inherited from the selected category group.
Employee	Select whether the employee identifier must be reported in the hours journal for projects.
Item sales tax group	Optionally select an item tax group.
Cost price	Display the current active cost for the cost category. Use the Price form to enter and activate a pending cost.
Cost group	Show the cost group that is assigned to the cost category.
Employee	Optionally identify the employee who is associated with the cost category.
Estimate	Select this check box to use the category for estimates.
Subscription	Select this check box to use the category for subscription.
Active in journals	Select this check box to set the category as active.
Default	Select a default line property.
Cost	Select the ledger account that applies to the selected category.
Payroll allocation	Select the ledger account that applies to the selected category.
WIP - Cost value	Select the ledger account that applies to the selected category.
Cost - Item	Select the ledger account that applies to the selected category.
WIP - Cost value - Item	Select the ledger account that applies to the selected category.
Accrued loss	Select the ledger account that applies to the selected category.
WIP - Accrued loss	Select the ledger account that applies to the selected category.
Invoiced revenue	Select the ledger account that applies to the selected category.
Accrued revenue - Sales value	Select the ledger account that applies to the selected category.
WIP - Sales value	Select the ledger account that applies to the selected category.
Accrued revenue - Production	Select the ledger account that applies to the selected category.
WIP - Production	Select the ledger account that applies to the selected category.
Accrued revenue - Profit	Select the ledger account that applies to the selected category.
WIP - Profit	Select the ledger account that applies to the selected category.
Category	Identifier for the cost category.
WIP issue	Optionally assign the issue account for work center consumption if production is to be settled by applying Item + Category.
WIP account	Optionally assign the receipt account for work center consumption if production is to be posted as Item + Category.
Work center issues	Optionally assign the ledger account for posting work center issues when you end a production order. This applies when the production is posted as Item + Category.
Work center issues, offset account	Optionally assign the offset account for posting work center issues when you end a production order. This applies when the production is posted as Item + Category.