Before creating a work order, we go through the process of creating products, product-sites, BOMs and routings. However, sometimes creating a standard cost for a product gets forgotten and when it is time to create the WO, we get the message “Product - Cost Record does not exist”.
It is a good practice to enter a standard cost record for raw material products and to roll the cost of the raw materials to the finished goods product so a calculated STD cost record gets created for the FGs product. Here is how it works:
In Common data, Products, Products-cost, Standard costs, click New, enter the raw material Product, Site, Fiscal year, the cost and Calculated quantity of the product.
Once a standard cost records is created for the raw material, we can use the Standard cost calculation utility function found in Costing, Cost calculations to roll up the cost from the raw material to the finished goods.
Checking Calculate all BOM levels will add the cost of all the components listed on a BOM to the finished goods product cost. The update can be deferred or immediate and checking the Replace previous cost will overwrite existing standard cost records for the finished goods product and leave the most current one.