Cost calculation on capacity planning
Cost calculation on capacity planning
There three cost types in capacity planning of Business Central,
- Direct cost
- Indirect cost
- Overhead cost
There are two places where we add the cost,
- Work centre
- Routing
Work Centre
Direct unit cost, indirect unit cost and overhead rate can be defined on the work centre card.
Unit cost = Direct unit cost + (direct unit cost x indirect unit cost%) + overhead rate
Specific Unit Cost – If enabled, the system uses the cost mentioned in the routing. If disabled, the system uses the cost mentioned on the work centre card.
Let’s do a test,
I specified $5.00 as the unit cost in the routing and $1.20 as the unit cost on the work centre card.
Routing
Work Centre
I refreshed a production order with ‘specifi unit cost’ disabled configuration. The routing line of the production order shows the cost mentioned on the work centre card (1.20).
When I refreshed the production order with ‘specifi unit cost‘ enabled configuration, the routing line of the production order shows the cost mentioned in the routing (5.00).