Since the simulation will not update the standard cost in the Item file, it can be useful in many ways:
- You can simulate cost calculations with, for example, prices from different suppliers. The simulation will display what effect a new cost will have on the total cost of an item.
- You can test a new cost model before it becomes active in the system.
Simulation prices
The cost simulation can be based on normal prices or on simulation prices entered in the Simulation price files. If you select the simulation alternative for the retrieval of Item cost type and Work centre prices, the system will first retrieve any available prices from the Simulation price files. If no simulation prices have been defined, the system will use the normal prices in the simulation.
Tip: You can also create simulation prices from the Work with templates menu item. Refer to the Panel help for the Template maintenance panel for detailed information.
The following two simulation possibilities are available:
Simulate cost online
The following describes how to simulate cost online. You will be shown how to change the prices in the existing bill of material and then how to re-calculate the standard cost.
- Select the Calculate product cost menu item.
- You access Product costing online selection. Complete the following fields:
- Calculation date
- Enter the date on which the cost simulation should be based. The system retrieves the costs and times for the selected date.
- Item
- Enter the item for which you want to simulate the cost. This can be a sub-assembly or an end item.
- Simulate std qty ll
- Indicate if you want to simulate standard quantity for lower levels.
- Calc cost max dec
- Indicate how many decimals should be used in the basic data product costing. If you set this field to YES, the standard cost will be calculated and displayed with 6 decimals (maximum decimals). If you set this field to NO, the number of decimals defined for the system currency in Work with currencies will be used in the calculation of the standard cost.
- Cost model
- Enter the cost model to be used in the simulation.
- Display unit
- Enter the value for stock unit or structure unit denoting in what unit the quantities should be presented. Permitted values are 1 (Stock unit) and 2 (Structure unit).
- Item cost type
- Indicate from where the component prices should be retrieved by ticking one of the following: Average cost, Standard cost, FIFO or Simulation cost.
- Work centre price
- Indicate from where the work centres prices should be retrieved during the calculation by ticking one of the following: Standard, Actual or Simulation.
- You access Product costing online, Overview where you have several options to analyse and change the item cost on this panel. You can:
- Click Material to access the bill of material where you can change the material costs.
- Click Operations to access the bill of routing where you can change the operation costs.
- You access Product costing online, Bill of material. Select the sub-assembly for which you want to change the cost price and click Change.
- On the second Product costing online, Bill of material panel, complete the following field:
- Cost price
- Enter a new cost price for the item.
- You return to the first Product costing online, Bill of material panel. (Tip: Click Refresh to view the correct line amount). Click Re-calculate to re-calculate the total cost of the item.
- You access Product costing online, Overview where you can view the new simulated cost price for the item. Click Save prod cost to save the product costing. This means that the calculation will be saved in the Product costing enquiry file as a simulation.
- You access Product costing update selection. Complete the following field:
- Simulation name
- Enter a name for the simulation.
Click OK.
For this task, click Material.
Click OK.
Click OK to save the simulation. Exit the routine.
Simulate cost via a batch job
This following describes how to simulate cost using a batch job.
- Select the Work with reports/jobs – MFG Basic Data menu item.
- You access Work with batch jobs. Select PROD_COST and click Submit job.
- You access Product costing selection. Complete the following fields:
- Calculation date
- Enter the date on which the cost simulation should be based. The system retrieves the costs and times for the selected date.
- Selection
- Indicate how the selection of items to be calculated should be performed by ticking one of the following: All items, Item required for costing or Item selection. Note: If you select Item selection, you will access a panel where you can define what items should be included in the selection.
- Item cost type
- Indicate from where the component prices should be retrieved by ticking one of the following: Average cost, Standard cost, FIFO or Simulation. For this task, select Simulation.
- Work centre price
- Indicate from where the work centres prices should be retrieved during the calculation by ticking one of the following: Standard, Actual or Simulation. For this task, select Simulation.
- Calc cost max dec
- Indicate how many decimals should be used in the basic data product costing. If you set this field to YES, the standard cost will be calculated and displayed with 6 decimals (maximum decimals). If you set this field to NO, the number of decimals defined for the system currency in Work with currencies will be used in the calculation of the standard cost.
- Save costing
- Indicate if the cost calculation should be saved in the Product costing enquiry file.
- Upd base sales price
- Indicate if the base sales price in the Item file should be updated with the new calculated value. For this task, set this field to NO.
- Cost model
- Enter the cost model to be used in the calculation. If this field is left blank the active cost model from the MFG control file will be used.
- Simulation name
- Enter a name for the simulation.
Click OK to create a cost simulation for the selected items. The result can be viewed in the Product costing enquiry. Exit the routine.