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<ManualTopic ID="/baanerp/ti/onlinemanual/000303" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Assembly order costing</Title>
		<Keyword><Level1>Costing</Level1>
			<Level2>assembly orders</Level2>
		</Keyword>
	</Header>
	<GeneralSection><List><ListIntro>Costing is a crucial aspect of the <Link href="/baanerp/ti/onlinemanual/tiasc" role="module">Assembly Control (ASC)</Link> module. The manner in which costing is performed depends partially on how you define your cost components. Other aspects of costing that are described here are:</ListIntro>
			<ListItem>Transaction-processing methods.</ListItem>
			<ListItem>WIP transfers.</ListItem>
			<ListItem>Calculation of final results.</ListItem>
			<ListItem>Differences between <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef> module costing and <Link href="/baanerp/ti/onlinemanual/tisfc" role="module">Shop Floor Control (SFC)</Link> module costing.</ListItem>
			<ListItem>Where to view financial data in the <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef> module.</ListItem>
		</List>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>The aspects of financial costing that are described here have no relation to the theoretical, mathemetical costs associated with line sequencing.</Paragraph>
		</Note>
		<GeneralSection><SectionTitle>Cost components</SectionTitle>
			<List><ListIntro>There are three types of cost components:</ListIntro>
				<ListItem>Materials.</ListItem>
				<ListItem>Operations.</ListItem>
				<ListItem>Surcharges.</ListItem>
			</List>
			<Paragraph>Cost components can be posted on an aggregated level, detailed level, or on a combination of aggregated and detailed level. When costs are posted on an aggregated level, all the costs for a cost component are combined into one sum, such as all the individual material costs being added into a single sum. To post cost components at a detailed level, you must define cost component charts. Detailed cost components result in a price structure in which all costs have been broken down.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Transaction-processing methods</SectionTitle>
			<Paragraph>The <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef> module is intended for use by companies that produce many variants of complex products in a flow-assembly line. <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef> can also be used for low-volume assembly if you select <GUIRef href="/baanerp/ti/domains/asc.trpr#order" role="enum">Order Based</GUIRef> transaction processing. Select your transaction-processing method in the <GUIRef href="/baanerp/ti/asc/tiasc0100m000#tiasc000.trpr" role="formfield">Transaction Processing</GUIRef> field in the <GUIRef href="/baanerp/ti/asc/tiasc0100m000" role="session">Assembly Control Parameters (tiasc0100m000)</GUIRef> session.</Paragraph>
			<Paragraph>Use <GUIRef href="/baanerp/ti/domains/asc.trpr#line" role="enum">Line Station Based</GUIRef> transaction processing when you do not need to trace back to the original assembly order. Costs are posted to the assembly line. Results are calculated by period by assembly line.</Paragraph>
			<Paragraph>Use <GUIRef href="/baanerp/ti/domains/asc.trpr#order" role="enum">Order Based</GUIRef> transaction processing when you want your costing performed on the basis of individual assembly orders. Costs are posted by order by assembly line. Results are calculated by order by assembly line.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>WIP transfers</SectionTitle>
			<List><ListIntro>WIP transfers consist of:</ListIntro>
				<ListItem><Emphasis>Generating the transfer order</Emphasis>. A WIP transfer generates a transfer order. However, if the transfer occurs between line stations that are in different logistical companies, a sales order and a purchase order are generated.</ListItem>
				<ListItem><Emphasis>Performing the material issue</Emphasis>. A WIP issue may unblock or immediately process the transfer warehousing order, dependent on your parameter settings. In multisite situations, the normal sales procedure must be followed in order to ship the goods.</ListItem>
				<ListItem><Emphasis>Performing the receipt</Emphasis>. A WIP receipt acknowledges the receipt of the WIP transfer order at a main assembly line that has received work from a supplying assembly line. <Link href="/baanerp/wh/onlinemanual/wh" role="package">Warehouse Management</Link> processes the inbound line automatically. If the assembly lines are from two different logistical companies, it is necessary to use sales orders and purchase orders (rather than WIP transfer orders). In multisite situations, the normal receipt procedure must be followed in order to receive the goods.</ListItem>
			</List>
			<Paragraph>You can select whether you want these processes to occur automatically, semiautomatically, or manually.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Calculation of financial results</SectionTitle>
			<Paragraph>When you close an assembly line with the <GUIRef href="/baanerp/ti/asc/tiasc7220m000" role="session">Close Assembly Lines (tiasc7220m000)</GUIRef> session, the production results of the line are calculated. All the line station orders must have the status Closed. The financial results are the WIP transactions (which are estimated costs) minus the actual costs.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Differences between costing in Shop Floor Control (SFC) and Assembly Control (ASC)</SectionTitle>
			<List><ListItem>In <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef>, the quantity completed is always one.</ListItem>
				<ListItem>There is no <Link href="/baanerp/ti/glossary/glossary#Scrap.ti" role="glossary">scrap</Link> and <Link href="/baanerp/ti/glossary/glossary#Yield.ti" role="glossary">yield</Link> in <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef>.</ListItem>
				<ListItem><Link href="/baanerp/ti/glossary/glossary#000054" role="glossary">WIP transfers</Link> are only created between different <Link href="/baanerp/ti/glossary/glossary#000000000000055" role="glossary">assembly lines</Link>, and not between line stations (of the same line).</ListItem>
				<ListItem>There is no set-up time in <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef>.</ListItem>
				<ListItem>End item unit costs (that is, estimated material costs and hours costs for an order) are not calculated for an assembly order. This is not necessary because each end item uses the same assembly line, so there is no point in creating separate surcharges for each item.</ListItem>
				<ListItem>In case of <GUIRef href="/baanerp/ti/domains/asc.trpr#line" role="enum">Line Station Based</GUIRef> transaction processing, variances are calculated for an assembly order and not for a generic item.</ListItem>
				<ListItem>Production results are not split into <Link href="/baanerp/ti/glossary/glossary#PriceVarian.ti" role="glossary">price variances</Link> and <Link href="/baanerp/ti/glossary/glossary#EfficiVarian.ti" role="glossary">efficiency variances</Link> in <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef>.</ListItem>
				<ListItem>Financial results in <GUIRef href="/baanerp/ti/asc" role="module">Assembly Control</GUIRef> are posted to the <Link href="/baanerp/tc/glossary/glossary#CostCompon.tc" role="glossary">cost component</Link> of the assembly line.</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>Where to view financial data in Assembly Control (ASC)</SectionTitle>
			<List><ListItem><GUIRef href="/baanerp/ti/asc/tiasc7510m000" role="session">Financial Transactions (tiasc7510m000)</GUIRef>
				</ListItem>
				<ListItem><GUIRef href="/baanerp/ti/asc/tiasc7410m000" role="session">Print Financial Transactions (tiasc7410m000)</GUIRef>
				</ListItem>
				<ListItem><GUIRef href="/baanerp/ti/asc/tiasc7414m000" role="session">Print Financial Transactions by Assembly Line (tiasc7414m000)</GUIRef>
				</ListItem>
				<ListItem><GUIRef href="/baanerp/ti/asc/tiasc7411m000" role="session">Print Costing by Assembly Order or Assembly Line (tiasc7411m000)</GUIRef>
				</ListItem>
			</List>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000301" role="manual">Assembly control overview</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000302" role="manual">Line station variants</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000304" role="manual">Assembly backflushing</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000306" role="manual">Assembly orders</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000323" role="manual">Line sequencing and rule types in Assembly Control</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tf/integrations/400009" role="manual">Integration document types</Link> (Click ASC Production.)</RelTopic>
	</RelatedTopics>
</ManualTopic>
