MANUALS > Settings > Settings Module > Settings, Update Menu > P/N (Part Number) > P/N Master, Costing Tab

P/N Master, Costing Tab

Select or create the Part Number and then click on the P/N Master, Costing tab.

The following information/options are available in this window:
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Reference Cost

The Part's reference cost.

Note: This field functions in accordance with the Switch PNREFCST. If set to Yes, the system will compare the Part Number Reference Cost to the PO unit cost. If there is a difference the user will receive a prompt asking if they would like to update the Part Number Reference Cost (P/N Master, Cost Tab) with the PO Unit Cost.

Average Cost

The Average Cost of the Part in local currency, which is re-calculated upon receipt of inventory from Purchases, Invoice Adjustments (if there is a difference between PO Price and INV Price), and Return to Stock (which is unknown inventory returned at average cost or credited to the Work Order, differing the P/N Cost from the Average Cost).
The explanation for the formula is as follows:
(The total number of Unit Costs currently in Inventory) / (The total of all quantities currently in inventory). For example, if you have three parts in inventory for a certain P/N (three parts including all possible instances of the part [available in inventory, available for repair etc.]). And the unit costs on each part are $10, $15, and $20 each. If all information has been entered properly, the current Average cost would be calculated as (10 + 15 + $20) / 3) = $15. Expanding on the example, if you receive a new same part at $18, the current Average cost would re-compute as follows: ($10 + $15 + $20 + $18) / (3 + 1) = 15.75. For adjustments to this figure, refer to the P/N Average Cost Movement topic.

Note: The Average Cost functionality works in accordance with Switch RTSCOST. If this switch is set to No, then inventory returned to stock is re-averaged for unknown inventory.

Secondary Currency Average Cost

The average cost for the part in your secondary currency.

Market Value

The value of the item according to current market standards. The valuation method is defined in each Part Category (System Transaction Code Explorer). This is manually filled.

Note: The data in the three cost fields are populated based on system calculation of costs of purchased parts.

Carrying Cost Factor

The total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to insurance etc.

Note: If these values are not defined in the P/N Master, Costing tab, they will default to the value specified in the Switch KFACTROL. For additional information, refer to Switch KFACTROL, via the Settings Switches Manual.

Replenishment Cost Factor

The cost of replenishing inventory. The formula for replenishing stock compares forecast stock usage against available stock throughout the coming year. Existing replenishment orders are also considered since these affect future requirement needs.

Note: If these values are not defined in the P/N Master, Costing tab, they will default to the value specified in the Switch RFACTROL. For additional information, refer to Switch RFACTROL, via the Settings Switches Manual.

Fixed Asset section

The Fixed Asset section allows users to view and modify Fixed Asset Depreciation parameters for individual parts. This information is populated by default from the properties configured in the P/N Category transaction code but the information can be overridden for specific P/Ns from this tab. For more information refer to Setting Default Depreciation for Parts via the G/L Interface Training Manual.

Depreciation Code - The Fixed Asset Depreciation transaction code linked to this P/N Category or P/N record (via P/N Master, Costing tab). When a Depreciation Code is entered, the Default Month Depreciation and Residual Value % fields will be overridden by that code's configuration. The Depreciation Code also contains the Start Depreciation Date field (which is used as part of the Accelerated depreciation method). This code can be defaulted for parts based on the P/N Category or manually overridden at the part level in the P/N Master, Costing Tab. For more information refer to the F/A Depreciation Code transaction code.

Depreciation Month - The number of months required for the Fixed Asset value of these parts to be depreciated over (i.e., five year depreciation is 60 months). This number can be defaulted for parts based on the P/N Category or F/A Depreciation Code, or it can be overridden manually at the part level in the P/N Master, Costing Tab.

Residual Value Percent - The residual value of the part that remains after the depreciated month has completed (expressed as a percentage of the actual cost of the Fixed Asset). This percentage can be defaulted for parts based on the P/N Category or F/A Depreciation Code, or it can be or overridden manually at the part level in the P/N Master, Costing Tab.

Inventory G/L

This sets the General Ledger account reference for this part. It also allows reporting of inventory values by G/L accounts. The G/L code will populate fields such as in a P/O for the Part. When a part is received from a P/O, the value of that receipt will be attributed to the G/L account specified in the P/O.

Note: The G/L code is automatically derived from the setup of the P/N Category (Settings/Explorer/System Transaction Code/Settings/P/N Category) that is associated with this part and can be overridden if required.

Default R/O G/L

If the part is associated with a Repair Order, this G/L will be affected.

Default E/X G/L

The General Ledger accounting code for an Exchange Order. The Exchange Order G/L will default to the value defined in the Part Number G/L as defined in the P/N Master, Costing tab. However, this field may be overwritten for any given order. For additional information, refer to the Exchange Order Detail, General tab via Exchange Order of the Orders Training Manual.

Default E/X G/L

The General Ledger accounting code for an Exchange Order. For additional information, refer to the Order Category Transaction Code via the Orders Transaction Code Manual.

Note: The Exchange Order G/L 2 will default to the value defined in the Part Number G/L as defined in the P/N Master,Costing tab if the 'Use G/L 2 From P/N Master' checkbox is selected in the Order Category Transaction Code. However, this field may be overwritten for any given order.

CC Reference

The CC Reference code will automatically populate the part number and part number category.

Note: The CC Reference code is automatically derived from the setup of the P/N Category (Settings/Explorer/System Transaction Code/Settings/P/N Category).

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Company / Average Cost / Secondary Cost Fields:

To the right of the Costing tab is a group of informational fields relating to the Multi-Company functionality. This portion of the tab lists the different transactions generated for the part that are ordered through the different companies utilizing the system. This field directly adjusts the Average Cost and the Secondary Currency Average Cost fields for the part. (Notice the Average Costs for the three listings are 1495.65, 1605.25 and 1555.30--the total Average Cost being 1552.0667.)

The following information/options are available in this window:
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Company

The company involved in the transaction of the part.

Average Cost

The average cost of the Part in local currency, which is recalculated upon receipt of inventory.

Secondary Cost

The average cost for the Part in your Secondary currency.

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Note: As part of the multi company functionality, the Average Cost for a company's part is also impacted by any difference between the part's purchased cost and Invoiced cost. For more information, refer to the Multi Company Functionality.