Cost price per lot size

This feature allows you to calculate the cost-price of an item using the setup - and runtime costs while defining different lot sizes.
The Multi-Level Material Cost Calculation of Business Central ignores the possibility of production costs reduction caused by higher production volumes in the lower levels.
In Business Central, calculation of the (standard) cost price of a child item is used to determine the cost price of the parent item.
Cost price per lot size takes the actual production costs of the child item(s) into account. Resources can be added to the structure and become part of the calculated production costs.

This function is available from the ProjectBudget - and Planning Lines and the Item Card:

Project Budget - and Planning lines

In this context the page is used to calculate the project cost for a modified Production BOM in a Project:

  1. From the ProjectBudget or - Planning Line open the Production BOM group and use the Cost Price per Lot Size action.
  2. The Cost Price per Lot Size page opens with the quantity from the ProjectBudget - or ProjectPlanning Line as initial calculation.
  3. You can adjust the Lot Size and use the Calculate action to re-calculate the line or ...
  4. You can add a new line with another quantity and recalculate.
  5. When you are satisfied with the calculation use the Update ProjectBudget Line action to update the Project Unit Cost in the ProjectBudget Line.

Notes Project Unit Cost and Project Total Cost fields are only available on the ProjectBudget Line.

Item

  1. Choose the Lightbulb that opens the Tell Me feature icon (Alt+Q) and type Items.
  2. Select a production item, with a Production BOM, and click Edit to open the card.
  3. Select the Action tab and locate the Cost Price per Lot Size action.
  4. Create on or more lines with different Lot Sizes as required.
  5. Click Calculate in the ribbon.
  6. When the calculation is correct, check one of the lines as Standard Lot Size and use the Update Item action to copy the Lot Size and Cost settings to the Item card.

Notes

  • The calculation is depending on the cost settings in the Work - and Machine Centers, pay extra attention to these settings when Resources are integrated with the Capacity Centers. The calculation can be repeated as many times as required.
  • The calculation for resources looks at the Resource Cost table for the Resource and takes the Work Type into account when retrieving the price:
    • First with the Resource code
    • When not found with the Resource Group code

See Also

Create Product BOM - Routing
Budgeting