| # Example of cost and valuation price calculation This example describes how cost prices and valuation prices are calculated related to surcharges, defined on item level and on warehouse level. The difference between variable and fixed costs is ignored in this example. In this example, item A has material costs of 10 dollars and operation costs of 6 dollars. Item A has been linked to warehouse 001 (in the general item data). The surcharges are defined as follows:
Surcharge sequence | 1 | 2 | 3 | 4 | 5 | 6
--- | --- | --- | --- | --- | --- | ---
Item | A | A | A | A | A | A
Warehouse | ... | ... | 001 | 001 | 002 | 002
Realization moment | receipt | issue | receipt | issue | receipt | issue
Surcharge | 2 | 4 | 3 | 5 | 1 | 6
Questions: What is the cost price? What is the valuation price on receipt in the warehouse? What is the valuation price on issue of item A in warehouses 001 and 002? Standard cost price The standard cost price is the sum of the following: All nonsurcharges All surcharges that are linked to the nonspecific warehouses (surcharges 1 and 2) All surcharges that are linked to the standard warehouse 001 of the item (surcharges 3 and 4) This results in the following calculation:
Nonsurcharges | 16 | (material and operation costs)
Nonspecific surcharges | 6 | (surcharge 1, 2)
Specific surcharges | 8 | (surcharge 3, 4)
Standard cost price | 30 dollar
Note For example, item A is a material of item B. In other words, item A is linked to item B in the BOM. The BOM warehouse is 003. To calculate the cost price of main item B, the material costs of item A and the surcharges of BOM warehouse 003 are taken into account. The surcharges of item A's standard warehouse 001 are not used. Valuation price (receipt) The receipt valuation price is the sum of the following: All nonsurcharges All receipt surcharges that have not been linked to specific warehouses All receipt surcharges that have been linked to the specific warehouse This results in the following calculation:
warehouse | 001 | 002
--- | --- | ---
Nonsurcharges | 16 | 16
Nonspecific receipt surcharges | 2 | 2
Specific receipt surcharges | 3 | 1
Receipt valuation price | 21 dollar | 19 dollar
Valuation price (issue) The issue price of an item in a warehouse is the sum of the following: All nonsurcharges All receipt surcharges that have not been linked to specific warehouses All receipt surcharges that have been linked to the specific warehouse All issue surcharges that have not been linked to specific warehouses All issue surcharges defined for that specific item/warehouse This results in the following valuation and issue prices for item A in warehouses 001 and 002:
Warehouse | 001 | 002
--- | --- | ---
Nonsurcharges | 16 | 16
NonSpecific receipt surcharges | 2 | 2
Specific receipt surcharges | 3 | 1
Nonspecific issue surcharges | 4 | 4
Specific issue surcharges | 5 | 6
Issue price | 30 dollar | 29 dollar