New features added, version 7.5.2, 7.5.3, 8.1, 7.5.4 , 8.4, 8.5.2
Program ICCM, Inventory Cost Data Maintenance, is used to maintain cost information for inventory items. This includes both incremental costs and accumulated costs, broken down into material, labor, service, and fixed and variable overheads. The data maintained with this program is used by the system to develop standard costs for product costing and project costing.
Incremental costs are the costs of an inventory item at its own level of the bill of material, or "this level" costs.
Use program PCIC, Incremental Cost Calculation, for the calculation of incremental costs.
Incremental costs do not include component costs.
If you are using program PCIC, Incremental Cost Calculation, and program PCAR, Accumulated Cost Rollup, you should only maintain the incremental material cost in this program. If you will never use routings, you can maintain all incremental costs in this program.
The incremental material cost is normally the cost to buy purchased items only, since manufactured items have no "this level" material costs.
Accumulated costs are calculated by adding together, or "rolling up," the incremental costs of the components to the parent in a bill of material.
Use program PCAR, Accumulated Cost Rollup, for the calculation of accumulated costs.
You should not maintain accumulated costs in this program unless you will never be using program PCIC, Incremental Cost Calculation, or program PCAR, Accumulated Cost Rollup.
The accumulated material cost of a manufactured item is the sum of the incremental material costs of the purchased components.
The accumulated labor cost is the sum of the incremental labor costs of the manufactured components, plus the incremental labor cost of the parent.
For a particular item, you have the choice of maintaining costs manually or having the system calculate costs.
If material overhead codes are used, the system can calculate material overhead costs.
If routings are used, the system can calculate labor and labor overhead costs.
If bills of material are used, the system can calculate accumulated (rolled-up) costs.
Inventory comments can be entered and maintained with this program. Comments entered for the item in program ICMM, Inventory Master Maintenance, program ICSM, Inventory Sales Data Maintenance, and program ICPM, Inventory Planning Data Maintenance will be displayed and can be maintained in this program.
This program is also used as a master maintenance program to add, change, and delete overhead codes.
The codes must be established in the system first, before they can be applied to an item.
You can establish overhead codes in page three of this program.
Overhead codes can also be maintained with program PCOM, Overhead Code Maintenance.
There are no differences between the codes entered on page three of this program and those entered in program PCOM, Overhead Code Maintenance.
Item Comments
Calculating Material Overhead for Items
Maintaining Cost Information for Items
Copying Item Cost Records to Other Plants
Adding Overhead Codes to Items
Up to six overhead codes can be applied to the incremental material cost of an item in order to calculate the incremental variable overhead rate and the incremental fixed overhead rate for that item.
The calculation method, the overhead type, and the MATL_OVHD_MULTIPLY parameter from program MURM, Initialization Parameter Maintenance, assigned to the overhead codes are used to determine how the incremental fixed and variable overhead rates are calculated for the item.
The Overhead Type field determines whether the overhead rate will be entered as the incremental variable overhead or the incremental fixed overhead for the item on the first page in this program.
Variable indicates that the calculated rate will be placed in the Incr. Variable O/H field.
Fixed indicates that the calculated rate will be placed in the Incr. Fixed O/H field.
The Calculation Method pop-list determines how the amount is calculated, as fixed amount, a percentage of the incremental material cost, or as an inverse rate of the material cost. If you are calculating variable overhead types, this is further affected by the MATL_OVHD_MULTIPLY parameter from program MURM, Initialization Parameter Maintenance.
Fixed indicates that the flat amount entered will be added to the material cost of the item.
Percent is affected by the overhead type and the MATL_OVHD_MULTIPLY parameter.
When the overhead type is Fixed or when the overhead type is Variable and the MATL_OVHD_MULTIPLY parameter is set to N or No, the percentage entered will be multiplied by the material cost of the item and the result will then be added to the material cost of the item.
When the overhead type is Variable and the MATL_OVHD_MULTIPLY parameter is set to Y or Yes, the resulting rate is a sum of all of the percent calculation variable rates that will be applied. Once the percentage is calculated, it is applied to the material cost of the item.
In these cases,
the rates are multiplied together such that:
Rates a,b would be calculated as (a+b+ab). Example: 70% and 50% would
be (.7+.5+.35) = 1.55 or 155%
Rates a,b,c would be calculated as (a+b+c+ab+abc+bc). Example: 70%, 50%, and 25% would be (.7 + .5 +.25 + .35 + .0875 + .125) = 2.0125 or 201.25%
Rates a,b,c,d would be calculated as (a+b+c+d+ab+abc+abcd+bc+bcd+cd). Example: 70%, 50%, 25%, and 10% would be (.7 + .5 +.25 + .1 + .35 + .0875 + .00875 + .125 + .0125 + .025) = 2.24875 or 224.875%
Inverse % indicates that the sum of the inverse rates will be applied to the material cost. The MATL_OVHD_MULTIPLY parameter determines whether or not the material cost will be increased by a factor before applying the sum of the inverse rates. The increase factor is the number of inverse rates being applied.
When the parameter is set to Y or Yes, the formula used to calculate the inverse rate is ( 1 / (1 - (overhead rate / 100))). This formula is used for each rate and then the rates are added together and multiplied by the material cost.
When the parameter is set to N or No, the formula used to calculate the inverse rate is ( 1 / (1 - (overhead rate / 100) - 1 )). This formula is used for each rate and then the rates are added together and multiplied by the material cost.
For example, for
a single inverse rate of 30% and a material cost of $0.85, the calculations
for each of these situations would be:
Y: (1/(1-(30/100))) = 1.42857 * .85 = 1.21428
N: (1/(1-(30/100))-1) = 0.42857 * .85 = .36428
If an additional
rate of 70% were applied to the item, the calculations would be:
Y: (1/(1-(30/100))) + (1/(1-(70/100))) = 4.7619 * .85 = 4.0476
N: (1/(1-(30/100))-1) + (1/(1-(70/100))-1) = 2.7619 *.85 = 2.3476
Once the totals for each of the calculation methods are determined, the fixed overhead or variable overhead cost is determined by adding the totals for each calculation method together and the sum is displayed in the appropriate field.
1. In the Filter Cost Type field, if you wish to only view the items that have records for a specific cost type, enter the desired cost type in this field before executing the query in the item block. A list of values is available.
2. Query the item for which you wish to view or maintain cost information.
3. Go to the lower block and query the cost type for which you wish to maintain or view cost information.
4. You can maintain incremental costs and accumulated costs manually in this program.
If you are planning to use program PCIC, Incremental Cost Calculation, and program PCAR, Accumulated Cost Rollup, then you should maintain only the material incremental costs. This is because the other incremental costs are calculated from the routing, and accumulated costs are rolled up from the incremental costs in the parent bill of material
If you are not using routings, you can enter the other incremental costs in the program.
Incremental costs include the incremental material cost, incremental labor cost, incremental service cost, incremental variable overhead cost, and incremental fixed overhead costs on the left side of the screen.
If you will never be using program PCIC, Incremental Cost Calculation, or program PCAR, Accumulated Cost Rollup, you can enter the accumulated costs in this program.
Accumulated costs include the accumulated material, labor, service, variable overhead, fixed overhead, unburdened cost, manufacturing unit cost, and unit cost.
5. If you do not want a specific item and cost type to be recalculated when program PCIC, Incremental Cost Calculation, or program PCAR, Accumulated Cost Rollup, is run, set the Allow Recalculation flag to off.
When this flag is set to on for an item and cost type, and program PCIC, Incremental Cost Calculation, or program PCAR, Accumulated Cost Rollup, is run, the incremental and accumulated costs will be recalculated.
6. In the Mfg Unit Cost and PO Unit cost fields, you can choose from the drop down the calculation method used. Standard or Custom. PO Cost and MFG Cost Calculations can both have custom values calculated via prouser1.nfunc15. PO cost will default to unit cost for standard calculation.
7. Press [Commit].
1. You can copy item costs to other plants unless the PLANT_PROTECT parameter is set to Y in program MURM, Initialization Parameter Maintenance.
Average and actual cost types will not be pushed to other plants.
2. Query the item for which you wish to copy cost records to other plants.
3. Press the [Push to Other Plants] button. The Cost Push screen will be displayed.
4. All plants except for the one that you are logged into will be displayed.
5. Set the Select flag to on for all plants to which you want this item's cost records copied.
To select all plants,
press the [Select All] button 
.
To de-select all
plants, press the [Deselect All] button 
.
6. Press the [Push Costs Now] button.
7. The item's cost records will be copied to all plants for which the Select flag was set to on, overwriting any existing cost records for the item and cost types in those plants.
1. Query the item on the first page of the program.
2. Go to the second page of the program.
3. In the lower block, enter the overhead code that you wish to add to the item.
Overhead codes must first be established in the system before they can be added to an item.
Overhead codes are entered in program PCOM, Overhead Code Maintenance, or in this program on the third page.
There are no differences between the codes entered in program PCOM, Overhead Code Maintenance, and those entered in this program.
4. Press [Commit] when you have added all desired overhead codes to the item.
1. Go to page three of the program.
2. In the Overhead Code field, enter the overhead code
3. In the Description field, enter the description for this overhead code.
4. Set the Calculation Method pop-list to the desired setting. Choices are:
Fixed: For material overhead, the amount entered is a flat amount that will be added to the incremental fixed overhead amount or the incremental variable overhead amount for the item. For labor overhead, the system will multiply labor hours by the specified flat amount/hour.
Percentage: For
material overhead, the amount entered is a percentage to be applied
to the material cost. How it is handled is determined by the overhead
type and the MATL_OVHD_MULTIPLY parameter in program MURM,
Initialization Parameter Maintenance.
For labor overhead, if the rate is calculated by percentage, the system
will multiply labor dollars by the specified percent.
Inverse %: If the code is calculated by an inverse percentage, the system calculates the overhead in one of two ways, determined by the MATL_OVHD_MULTIPLY parameter in program MURM, Initialization Parameter Maintenance.
See the Calculating Material Overhead for Items section for more information about these options and how they affect material overhead.
5. In the Percent or Fixed Amount field, enter the percentage or dollar amount that the system will use to calculate overhead dollars for standard costing and project costing.
6. In the Overhead Type field, enter V if the rate calculated for this overhead code should be used when calculating the amount for the Incr, Variable O/H field for the item. Enter F if the rate calculated for this overhead should be used when calculating the amount for the Incr. Fixed O/H field for the item.
7. Press [Commit].
Press this button to set the Select flag to off for all displayed plants.
Press this button to copy the item cost records from the current plant to the selected plants. The cost records being copied will overwrite any existing records for the item and cost types in the selected plants.
Press this button to copy the item cost records from the current plant to other plants. The Cost Push screen will be displayed to allow you to select the desired plants to which you wish to copy the costs.
This button is disabled if the PLANT_PROTECT parameter is set to Y in program MURM, Initialization Parameter Maintenance.
Press this button to set the Select flag to on for all displayed plants.