What parameters influence the costing of a work order?

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When the work order is created, the provisional production cost calculation can be done automatically if the general parameter Auto provisional costs CLCWOCAUT (GPA Manufacturing, COS) is set to “In WO creation and modification”. The other two options are “No” which means the WO Provisional cost calculation needs to be manually executed upon the creation of the work order by clicking on the WO provisional cost calculation. The third option is “In WO creation” which means only the cost gets calculated upon the creation of the work order. If the WO is modified, the calculation will not be automatically handled again.  

For the calculation during the work order creation, the material cost is controlled by parameter Mat. Cost for WO expected VLTMATEXT (TC common data, COS) which has four different options to choose from Standard cost, Revised standards price, Last price, and Average weighted price.

Parameter MFCRATEXT (GPM Manufacturing, COS) is in charge of valuing the cost of labor, machine, and subcontracting during the creation of the work order. It defines which hourly rate on the costing dimension is applicable to setup time cost calculations involving work centers. The value can be Standard, Revised standard, Budget, or Simulation

If overhead is used, parameter OVECOLMFC (GPA Manufacturing, COS) is used during the creation of the work order to define the column of the overhead code that should be used. This general parameter has four different values: Fixed A, Fixed B, Fixed C, or Fixed D. These fixed values are set up in Common data, Costing, Overhead code.

The value setting in parameter CSTRCPORD (GPA Manufacturing, COS) determines whether to use the theoretical cost which is a calculation of the planned production quantity, or to use the calculation of the release or expected cost while creating the work order.

Once the work order is created and is moved to production, the actual cost is based on the tracking data. The material cost is defined by the movement value which is set up using the valuation method of the component (Product-site, Cost tab).

Parameter MFCRATCPL (GPA Manufacturing, COS) is used to calculate the actual cost of the routing operation and it has four different values: Standard price, Revised standard price, Budget, and Simulation. The other parameter used for overhead is OVECOLMFC (GPA Manufacturing, COS) and this one is used to calculate the actual cost in the production.