<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ti/onlinemanual/000022" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Estimated and actual material costs</Title>
		<Keyword><Level1>Estimated and actual material costs</Level1>
		</Keyword>
		<Keyword><Level1>Actual material costs</Level1>
		</Keyword>
		<Keyword><Level1>Materials</Level1>
			<Level2>estimated and actual requirements</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph><Emphasis>Cost estimation</Emphasis>
		</Paragraph>
		<Paragraph>When a production order is created, the costs related to <Link href="/baanerp/ti/glossary/glossary#Material.ti" role="glossary">materials</Link> are estimated.</Paragraph>
		<Paragraph>The estimated material quantities are based on the net quantities specified in the <Link href="/baanerp/ti/glossary/glossary#BillOfMateri.ti" role="glossary">BOM</Link> of the manufactured item. The material requirements are increased, to compensate for loss of material through <Link href="/baanerp/ti/glossary/glossary#Scrap.ti" role="glossary">scrap</Link> and a limited <Link href="/baanerp/ti/glossary/glossary#Yield.ti" role="glossary">yield</Link> of the production order.</Paragraph>
		<Paragraph>You can manually change the estimated quantities calculated by SSA ERP. It is also possible to replace or add materials, or to change certain parameter settings for the materials.</Paragraph>
		<Paragraph><Emphasis>Actual material costs</Emphasis>
		</Paragraph>
		<Paragraph>The actual material quantities are the quantities that are issued from inventory. This determines the actual costs. The actual costs may differ from the estimated values, due to final adjustments, material replacements, yield fluctuations, and so on.</Paragraph>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000028" role="manual">Calculating estimated quantity</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000015" role="manual">Scrap and yield</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000017" role="manual">Link materials to operations</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000188" role="manual">Calculate estimated end item unit-costs of a production order</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000044" role="manual">To issue materials</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
