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<ManualTopic ID="/baanerp/ti/onlinemanual/000179" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Cost price calculation by project</Title>
		<Keyword><Level1>Cost price</Level1>
			<Level2>calculating by project</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>You can perform a:</Paragraph>
		<Paragraph>A. <Link href="/baanerp/ti/glossary/glossary#SimulaN.ti" role="glossary">Simulated cost price calculation</Link>.</Paragraph>
		<Paragraph>B. <Link href="/baanerp/tc/glossary/glossary#Estimate.tc" role="glossary">Estimated cost price calculation</Link>.</Paragraph>
		<Paragraph>C. Actual cost price calculation.</Paragraph>
		<GeneralSection><SectionTitle>A. Simulated cost price calculation</SectionTitle>
			<Paragraph>You can make a <Link href="/baanerp/ti/glossary/glossary#SimulaN.ti" role="glossary">simulated cost price calculation</Link> for all <Link href="/baanerp/ti/onlinemanual/000175" role="manual">Project types</Link>. During a simulation, SSA ERP calculates and updates the cost prices of the customized items in the <GUIRef href="/baanerp/ti/cpr" role="module">Cost Price Calculation</GUIRef> module. In the <GUIRef href="/baanerp/ti/pcs" role="module">Project Control</GUIRef> module, inventory is not revaluated and the project price and the customized item price are not updated.</Paragraph>
		</GeneralSection>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>SSA ERP calculates the cost price of customized items by using the cost price calculation code of the project. This code is stored in the <GUIRef href="/baanerp/ti/pcs/tipcs2101m000" role="session">Projects (tipcs2101m000)</GUIRef> session.</Paragraph>
		</Note>
		<GeneralSection><SectionTitle>B. Estimated cost price calculation</SectionTitle>
			<Paragraph>The following steps are taken if an <Link href="/baanerp/tc/glossary/glossary#Estimate.tc" role="glossary">estimated</Link> calculation of the cost price is calculated:</Paragraph>
			<GeneralSection><ProcedureSection><Steps><Step><StepTitle></StepTitle>
							<Paragraph>SSA ERP calculates the cost price of all customized items. The cost prices are updated in the <GUIRef href="/baanerp/ti/cpr" role="module">Cost Price Calculation</GUIRef> module.</Paragraph>
							<Paragraph><GUIRef href="" role="manual">Note</GUIRef>SSA ERP calculates the cost price of customized items by using the cost price calculation code of the project. This code is stored in the <GUIRef href="/baanerp/ti/pcs/tipcs2101m000" role="session">Projects (tipcs2101m000)</GUIRef> session.</Paragraph>
						</Step>
						<Step><StepTitle></StepTitle>
							<Paragraph>SSA ERP revaluates inventory for all warehouses with the <Link href="/baanerp/ti/glossary/glossary#000038" role="glossary">FTP inventory valuation</Link> method.</Paragraph>
							<Paragraph><GUIRef href="" role="manual">Note</GUIRef> Budgets do not have inventory.</Paragraph>
						</Step>
						<Step><StepTitle></StepTitle>
							<Paragraph>SSA ERP updates the cost prices of all customized items of the current project in the <GUIRef href="/baanerp/ti/pcs" role="module">Project Control</GUIRef> module.</Paragraph>
							<Paragraph><GUIRef href="" role="manual">Note</GUIRef> For budgets, SSA ERP uses the data as stored in the <GUIRef href="/baanerp/ti/cpr/ticpr2505m000" role="session">Item - Cost Price Details (ticpr2505m000)</GUIRef> session. For other project types, SSA ERP uses the data as stored in the <GUIRef href="/baanerp/ti/cpr/ticpr3505m000" role="session">Item - Standard Cost Price Details (ticpr3505m000)</GUIRef> session.</Paragraph>
						</Step>
						<Step><StepTitle></StepTitle>
							<Paragraph>SSA ERP calculates the estimated project costs. Estimated project costs consist of the following costs:</Paragraph>
							<List><ListItem>Item costs of all project parts in the <GUIRef href="/baanerp/ti/pcs/tipcs2111m000" role="session">Project Parts (tipcs2111m000)</GUIRef> session. For standard project parts, SSA ERP uses the cost price that is valid on the date as entered in the <GUIRef href="/baanerp/ti/pcs/tipcs2111m000#tipcs025.frdt" role="formfield">Freeze Cost Price on Date</GUIRef> field of the <GUIRef href="/baanerp/ti/pcs/tipcs2111m000" role="session">Project Parts (tipcs2111m000)</GUIRef> session. Standard parts are moved into the project on the three aggregated cost components. For customized parts, the estimated item costs are calculated as described above. These are stored in the detailed cost component in the <GUIRef href="/baanerp/ti/pcs/tipcs3550m000" role="session">Cost Price by Customized Item (tipcs3550m000)</GUIRef> session.</ListItem>
							</List>
							<Paragraph><GUIRef href="" role="manual">Note</GUIRef> Main projects do not have items assigned to them.</Paragraph>
							<List><ListItem>Activity costs. Activity costs are produced if you perform activities as defined in the <GUIRef href="/baanerp/ti/pcs/tipcs4101m000" role="session">Activities (tipcs4101m000)</GUIRef> session. The <Link href="/baanerp/ti/glossary/glossary#OperatRateCo.ti" role="glossary">operation rate code</Link>, linked to the task or work center of the activity (dependent on the value of the <GUIRef href="/baanerp/ti/cpr/ticpr0100m000#ticpr000.kort" role="formfield">Type of Operation Rates</GUIRef> parameter in the <GUIRef href="/baanerp/ti/cpr/ticpr0100m000" role="session">Cost Price Calculation Parameters (ticpr0100m000)</GUIRef> session), is used to determine the activity costs. SSA ERP does not take activity costs into account if: <List><ListItem>The <GUIRef href="/baanerp/ti/pcs/tipcs2101m000#tipcs020.peng" role="formfield">Engineering Allowed</GUIRef> check box in the <GUIRef href="/baanerp/ti/pcs/tipcs2101m000" role="session">Projects (tipcs2101m000)</GUIRef> session is not selected.</ListItem>
										<ListItem>The <GUIRef href="/baanerp/ti/pcs/tipcs4101m000#tipcs400.acal" role="formfield">Activity Estimation</GUIRef> check box in the <GUIRef href="/baanerp/ti/pcs/tipcs4101m000" role="session">Activities (tipcs4101m000)</GUIRef> session is not selected.</ListItem>
									</List>
								</ListItem>
								<ListItem>Estimated project surcharges. If no estimated surcharges are defined for a sub project, SSA ERP takes the surcharges assigned to the main project. When estimated project charges cannot be found for a specific project, SSA ERP determines the estimated general surcharges for projects.</ListItem>
							</List>
							<Paragraph>SSA ERP does not take surcharges for projects into account when the <GUIRef href="/baanerp/ti/pcs/tipcs2101m000#tipcs020.peng" role="formfield">Engineering Allowed</GUIRef> check box in the <GUIRef href="/baanerp/ti/pcs/tipcs2101m000" role="session">Projects (tipcs2101m000)</GUIRef> session is not selected.</Paragraph>
							<List><ListItem>For a main project, the costs of all sub projects are added to the costs of the main project.</ListItem>
							</List>
						</Step>
						<Step><StepTitle></StepTitle>
							<Paragraph>SSA ERP stores the estimated project costs in the <GUIRef href="/baanerp/ti/pcs/tipcs3560m000" role="session">Cost Price by Project (tipcs3560m000)</GUIRef> session.</Paragraph>
							<Paragraph>For main, sub, and single projects, the budgetted costs are filled with the estimated costs of the linked budget (from which the project is derived). For a budget, the budgetted costs are always empty. Only the estimated costs are filled.</Paragraph>
						</Step>
						<Step><StepTitle></StepTitle>
							<Paragraph>SSA ERP updates the last calculation date for projects of the Budget type.</Paragraph>
						</Step>
					</Steps>
				</ProcedureSection>
			</GeneralSection>
		</GeneralSection>
		<GeneralSection><SectionTitle>C. Actual cost price calculation</SectionTitle>
			<Paragraph>NoteSSA ERP does not calculate the cost price for budgets. The following steps are taken if the cost price is calculated:</Paragraph>
			<ProcedureSection><Steps><Step><StepTitle></StepTitle>
						<Paragraph>SSA ERP calculates the actual cost price of customized items. The actual cost price per customized item is determined if you take the financial transactions from the <GUIRef href="/baanerp/ti/pcs/tipcs3500m000" role="session">PCS Financial Transactions by Transaction Origin and Financial Trans. (tipcs3500m000)</GUIRef> session. All actual costs for an item are retrieved and divided by the total quantity for that item. The actual item cost price is updated, per cost component, in the <GUIRef href="/baanerp/ti/pcs/tipcs3550m000" role="session">Cost Price by Customized Item (tipcs3550m000)</GUIRef> session. The total actual item cost price is updated in the <GUIRef href="/baanerp/ti/cpr/ticpr0107m000" role="session">Items - Costing (ticpr0107m000)</GUIRef> session.</Paragraph>
						<Paragraph><GUIRef href="" role="manual">Note</GUIRef>: This step is not executed for main projects.</Paragraph>
					</Step>
					<Step><StepTitle></StepTitle>
						<Paragraph>SSA ERP determines the actual project related costs. SSA ERP determines the financial transactions for the current project from the <GUIRef href="/baanerp/ti/pcs/tipcs3500m000" role="session">PCS Financial Transactions by Transaction Origin and Financial Trans. (tipcs3500m000)</GUIRef> session. All actual item costs and general costs form the basic actual project costs.</Paragraph>
					</Step>
					<Step><StepTitle></StepTitle>
						<Paragraph>SSA ERP adds the actual project surcharges to the total project costs.</Paragraph>
						<Paragraph>When no actual surcharges are defined for a sub project, SSA ERP takes the surcharges assigned to the main project. When actual project charges cannot be found for a specific project, SSA ERP determines the actual general surcharges for projects. SSA ERP does not take surcharges for projects into account when the <GUIRef href="/baanerp/ti/pcs/tipcs2101m000#tipcs020.peng" role="formfield">Engineering Allowed</GUIRef> check box in the <GUIRef href="/baanerp/ti/pcs/tipcs2101m000" role="session">Projects (tipcs2101m000)</GUIRef> session is not selected.</Paragraph>
					</Step>
					<Step><StepTitle></StepTitle>
						<Paragraph>SSA ERP determines the differences per cost component.</Paragraph>
						<Paragraph>If SSA ERP booked the surcharges in previous calculations, the difference per cost component is determined as follows:</Paragraph>
						<Paragraph>New actual surcharges - the old (= already booked) actual surcharges. A financial transaction is then made for the difference between the transaction origin PCS and the financial transaction surcharges.</Paragraph>
					</Step>
					<Step><StepTitle></StepTitle>
						<Paragraph>SSA ERP updates the actual project costs in the <GUIRef href="/baanerp/ti/pcs/tipcs3560m000" role="session">Cost Price by Project (tipcs3560m000)</GUIRef> session.</Paragraph>
					</Step>
					<Step><StepTitle></StepTitle>
						<Paragraph>SSA ERP determines the percentage invoiced.</Paragraph>
						<List><ListIntro>To determine the costs of goods sold, SSA ERP calculates the percentage invoiced. To calculate the percentage invoiced, the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000#tipcs030.erev" role="formfield">Revenue Expected</GUIRef> check box in the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000" role="session">Project Details (tipcs2130m000)</GUIRef> session must be selected. If the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000#tipcs030.erev" role="formfield">Revenue Expected</GUIRef> check box is cleared, the following applies:</ListIntro>
							<ListItem>If no warehouse orders or sales orders exist for the current project, the percentage invoiced is 100.</ListItem>
							<ListItem>If sales orders or warehouse orders exist and the invoiced amount is greater than zero, the percentage invoiced is 100.</ListItem>
							<ListItem>If sales orders or warehouse orders exist and the invoiced amount is zero, SSA ERP checks whether deliveries are present or not. If deliveries are present, the percentage is 100. If deliveries are not present, the percentage is zero.</ListItem>
						</List>
						<Paragraph><GUIRef href="" role="manual">Note</GUIRef>: If the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000#tipcs030.erev" role="formfield">Revenue Expected</GUIRef> check box is cleared, the percentage invoiced is either 100 or zero.</Paragraph>
					</Step>
					<Step><StepTitle></StepTitle>
						<Paragraph>SSA ERP updates the invoiced amount in the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000" role="session">Project Details (tipcs2130m000)</GUIRef> session.</Paragraph>
					</Step>
					<Step><StepTitle></StepTitle>
						<Paragraph>SSA ERP calculates and books the costs of goods sold for projects for which the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000#tipcs030.intp" role="formfield">Investment Project</GUIRef> check box in the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000" role="session">Project Details (tipcs2130m000)</GUIRef> session is not selected.</Paragraph>
						<List><ListIntro>SSA ERP calculates the value of the costs of goods sold as follows:</ListIntro>
							<ListItem>If the project must be closed, the costs of goods sold are equal to the project costs.</ListItem>
							<ListItem>If the project must not be closed, the costs of goods sold are equal to the project costs multiplied by the percentage invoiced. Project costs of goods sold can be based on <GUIRef href="/baanerp/tc/domains/wipv#act.costs" role="enum">Actual Costs</GUIRef> or <GUIRef href="/baanerp/tc/domains/wipv#est.costs" role="enum">Estimated Costs</GUIRef> dependent on the value of the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.wipv" role="formfield">Post Against</GUIRef> field in the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000" role="session">Project Control Parameters (tipcs0100m000)</GUIRef> session.</ListItem>
						</List>
						<Paragraph>SSA ERP performs two checks:</Paragraph>
						<ProcedureList><ListItem>If the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.wipv" role="formfield">Post Against</GUIRef> field is set to <GUIRef href="/baanerp/tc/domains/wipv#est.costs" role="enum">Estimated Costs</GUIRef>, SSA ERP takes the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.eclw" role="formfield">Estimated Cost of Goods Sold Limited by WIP Value</GUIRef> parameter into consideration. If the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.eclw" role="formfield">Estimated Cost of Goods Sold Limited by WIP Value</GUIRef> check box is selected, the cost of goods sold cannot be greater than the actual project costs. The cost of goods sold are limited by the actual project costs.</ListItem>
							<ListItem>If the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.wipv" role="formfield">Post Against</GUIRef> field reads <GUIRef href="/baanerp/tc/domains/wipv#act.costs" role="enum">Actual Costs</GUIRef>, the cost of goods sold is equal to the actual project costs, provided the following is true:</ListItem>
						</ProcedureList>
						<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">Percentage invoiced * estimated project costs &gt; actual project costs
 </Paragraph>
						</Formula>
						<Paragraph>If the costs of goods sold are calculated, SSA ERP stores them. If the costs of goods are already booked during previous calculations, SSA ERP only books the difference.</Paragraph>
					</Step>
					<Step><StepTitle></StepTitle>
						<Paragraph>SSA ERP calculates the general result if a project is closed.</Paragraph>
						<Paragraph>SSA ERP calculates the general result if the project is closed in the <GUIRef href="/baanerp/ti/pcs/tipcs2250m000" role="session">Close Project (tipcs2250m000)</GUIRef> session. If the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.wipv" role="formfield">Post Against</GUIRef> field reads <GUIRef href="/baanerp/tc/domains/wipv#act.costs" role="enum">Actual Costs</GUIRef>, SSA ERP cannot calculate a result on project level. As a result, SSA ERP undoes the already booked results by booking the opposite amount. Old results only exist if the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.wipv" role="formfield">Post Against</GUIRef> parameter is changed between the previous and the current cost price calculation.</Paragraph>
						<Paragraph>Suppose the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.wipv" role="formfield">Post Against</GUIRef> parameter reads <GUIRef href="/baanerp/tc/domains/wipv#est.costs" role="enum">Estimated Costs</GUIRef>. The project result is calculated as follows:</Paragraph>
						<Paragraph>Result = cost of goods sold - actual project costs - already booked result.</Paragraph>
						<Paragraph>Note The actual project costs are exclusive to the actual item costs of the project. Results on item level must not be booked here. They should be booked when you close production orders, and so on. The result is booked with transaction origin PCS and financial transaction General Result.</Paragraph>
					</Step>
				</Steps>
			</ProcedureSection>
		</GeneralSection>
		<GeneralSection><SectionTitle>Standard to order items</SectionTitle>
			<Paragraph>If a <Link href="/baanerp/ti/glossary/glossary#StandaItem.ti" role="glossary">standard item</Link> with the order policy <Link href="/baanerp/ti/glossary/glossary#000026" role="glossary">standard-to-order (STO)</Link> item is linked to a <Link href="/baanerp/ti/glossary/glossary#000023" role="glossary">project</Link>, the cost price calculation program analyzes the complete standard to order structure. This complete standard to order structure is analyzed as if it were a customized item product structure. This product structure is then automatically exploded to the standard <GUIRef href="/baanerp/tc/domains/opol#anonymous" role="enum">Anonymous</GUIRef> items level. This means that standard items made to order do not have to be included in the product structure to perform a correct calculation of material and operation costs. As a result, any advantages resulting from batch production, in relation to setup costs, are not visible in the estimated project calculation. This applies if the same standard item made to order is linked to the project structure several times.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Standard phantom items</SectionTitle>
			<Paragraph>Comments referring to standard items made to order, also apply to standard <Link href="/baanerp/ti/glossary/glossary#Phantom.ti" role="glossary">phantom</Link> items linked to a project. The standard phantom structure is automatically analyzed by the cost price calculation program. During this process, material and operation costs are included in the cost price calculation of the project for phantoms. Comments made regarding batch production and lowering setup costs do not apply to phantoms.</Paragraph>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000184" role="manual">Calculation of cost/valuation prices for standard/customized/STO items</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
