Defining Resource Costs

Define your resources with appropriate units of measure, component classes, and cost analysis codes. To reflect resource costs incurred during production in the product cost, set up routings and define the amount or number of resources used. Outside production, set up overheads to reflect the amount of resources other than the production or ingredients used in the product; you can then include overhead costs in the cost of producing the product.

In either case, you must first define nominal usage costs associated with the resources. You define resource costs for a legal entity and calendar and period basis. The cost component class assigned to the resource, and the currency associated with the organization, are displayed on this window. Prior to defining resource costs, define the resource code identifying the resource.

Resource cost is calculated based on the routing, operation, and overhead definition setup.

Prerequisites

Define Resources

To define resource cost:

1. Navigate to the Resource Cost window.
2. Enter the Legal Entity for which you are defining the resource cost.
3. Enter the code for the Organization for which this resource cost is effective. You can leave the organization field blank, to set up the resource cost for the Legal Entity, or enter the organization to setup for each organization. The resource cost setup at the organization level takes precedence over the cost setup at the legal entity level.
4. Enter the code identifying the Resource for which you are defining costs.
5. Enter the cost Calendar for which this resource cost will be effective.
6. Enter the cost calendar Period for which this resource cost will be effective.
7. If you are displaying costs for a formula item, ingredient, or product, then the Component Class displays the component class associated with the cost shown on this line. This field is display only.
8. Base Currency displays the legal entity's base currency. This field is display only

Cost Details

9. Enter for which cost type this resource cost is defined in the Cost Type field.
10. Description displays the description of the cost type.
11. Enter the Nominal Cost for this resource for using it for one unit of measure. For example, if you are defining the resource cost for a mixing machine, and its usage is measured in hours, then enter the cost of using the resource in per unit.
12. Enter the unit of measure in which usage of this resource is measured in UOM. The default value is the unit of measure initially defined for this resource. You can edit the value within the same unit of measure class. You define the unit of measure for the resource on the Resources window.
13. Status is not used currently.

Selecting Resource Cost

The Resource Cost Selection lets you select the criteria for populating the Resource Cost List window.

To select a resource cost

1. Navigate to the Resource Costs window.
2. Select Resource Cost List from the Actions menu.
3. Enter all or part of a valid cost Calendar code for which the resource cost will be effective.
4. Enter all or part of a valid cost calendar Period code.
5. Enter each Cost Type for this resource, along with the appropriate unit cost.

Selection Range

6. Enter the code for the From Organization for which this resource cost will be effective.
7. Enter the code for the To Organization for which this resource cost will be effective.
8. Enter the code identifying the From Resource for which you are defining costs.
9. Enter the code identifying the To Resource for which you are defining costs.

Viewing Resource Cost List

The Resource Cost List produces a list of all resource costs, by organization. This can aid you in determining if one or more resource costs must be modified.

To obtain a list of resource cost:

1. Navigate to the Resource Costs window.
2. Select Resource Cost List from the Actions menu.
3. Organization displays the selected organization code.
4. Resource displays the selected resource.
5. Description displays the description of the resource.
6. Cost displays the cost of the resource.
7. Unit Of Measure display the initial unit of measure for the resource.