1. Inventory
Organizations: All Inventory organizations will be modeled as Process enabled
organizations.
2. Cost
Types: Cost Types indicate the costing method being used. Two cost methods
Actual and Standard shall be configured. The Standard Cost type shall be used
to calculate Standard Cost where as Actual Cost Type will be used for cost
accounting and inventory valuation.
3. Cost
Component Groups: Cost component categorize the costs for analytical purposes.
The cost component groups will include Material, Direct Labor, Resource and
Overheads etc.
4. Cost
Component classes: The cost component classes act as buckets to aggregate the
costs. Some of the cost component Classes include Raw Material, Active
Material, Direct Labor, QAD Cost etc.
5. Resource
Cost: Resource cost (the cost of using
the resource per hour) will have to be provided for each plant resource.
Overheads will also be configured as resources to absorb them on the basis of
machine hours or labor hours.
Computation of Product Cost:
Product cost can be segregated
into the following:
1. Material
Cost
2. Overheads