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<ManualTopic ID="/baanerp/ti/onlinemanual/000344" xml:lang="en">
   <Header>
      <Title>Costing work centers</Title>
      <Keyword type="header" order="d1e2097011">
         <Level1>work center</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <GeneralSection>
         <SectionTitle>General</SectionTitle>
         <Paragraph> 
            <Link href="/baanerp/ti/glossary/glossary#000367" role="glossary">Costing work centers</Link> serve
		  as an extra level on top of the planning work centers to make costing and
		  planning more independent. With the introduction of costing work centers, you
		  can change an <Link href="/baanerp/ti/glossary/glossary#000000000000052" role="glossary">operation</Link> 's work center during production
		  planning when the estimated costs are already frozen, provided the new planning
		  work center has the same <Link href="/baanerp/tc/glossary/glossary#000011" role="glossary">enterprise unit</Link> as the
		  costing work center. As a result, when you change a work center, you no longer
		  need to change all work centers in the <Link href="/baanerp/ti/glossary/glossary#000324" role="glossary">operation</Link> set and
		  recalculate the estimated costs.</Paragraph>
         <List>
            <ListIntro>A costing work center has the following advantages:</ListIntro>
            <ListItem>Provides more
			 flexibility to update the planning manually.</ListItem>
            <ListItem>Facilitates the ad hoc
			 subcontracting of an operation.</ListItem>
            <ListItem>Enables you to create
			 one costing center for each enterprise unit.</ListItem>
         </List>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Settings</SectionTitle>
         <Paragraph>To define a costing work center, take the following steps:</Paragraph>
         <ProcedureList>
            <ListItem>Because costing work
			 centers are only interesting if financial transactions are kept on work center
			 level, select the <GUIRef href="/baanerp/ti/sfc/tisfc0100s000#tisfc000.rswc" role="field">Financial Transactions by Work Center</GUIRef> check box in the <GUIRef href="/baanerp/ti/sfc/tisfc0100s000" role="session">Shop Floor Control Parameters (tisfc0100s000)</GUIRef> session. If financial transactions are
			 registered by production order, the following steps are not useful.</ListItem>
            <ListItem>Define a department
			 of the Work Center department type in the <GUIRef href="/baanerp/tc/mcs/tcmcs0565m000" role="session">Departments (tcmcs0565m000)</GUIRef> session.</ListItem>
            <ListItem>Specify the
			 enterprise unit to which the (costing) work center belongs in the <GUIRef href="/baanerp/tc/mcs/tcmcs0565m000" role="session">Departments (tcmcs0565m000)</GUIRef> session.</ListItem>
            <ListItem>Create a costing work
			 center in the <GUIRef href="/baanerp/ti/rou/tirou0101m000" role="session">Work Centers (tirou0101m000)</GUIRef> session with: <List>
                  <ListItem>The <GUIRef href="/baanerp/ti/rou/tirou0101m000#tirou001.kowc" role="manual">Work Center Type</GUIRef> field set to Costing Work Center.</ListItem>
                  <ListItem>An <Link href="/baanerp/ti/glossary/glossary#OperRate_ti" role="glossary">operation rate</Link> code entered in the <GUIRef href="/baanerp/ti/rou/tirou0101m000#tirou001.oprc" role="manual">Operation Rate Code</GUIRef> field.</ListItem>
               </List>
            </ListItem>
            <ListItem>In the <GUIRef href="/baanerp/ti/rou/tirou0101m000" role="session">Work Centers (tirou0101m000)</GUIRef> session, create a main work center or a sub-
			 work-center, which are also referred to as planning work centers, and link the
			 defined costing work center to the relevant planning work center in the <GUIRef href="/baanerp/ti/rou/tirou0101m000#tirou001.ctwc" role="field">Costing Work Center</GUIRef> field.</ListItem>
         </ProcedureList>
      </GeneralSection>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <List>
            <ListItem>The enterprise unit of
			 the planning work center must be the same as the enterprise unit of the costing
			 work center.</ListItem>
            <ListItem>If a costing work
			 center is defined, the costing work center's operation rate is used for
			 calculation purposes. If no costing work center is defined, the operation rate
			 that is used can be the work center's operation rate, or the task
			 relationship's operation rate, as defined in the <GUIRef href="/baanerp/ti/cpr/ticpr0100m000#ticpr000.kort" role="manual">Type of Operation Rates</GUIRef> field of the <GUIRef href="/baanerp/ti/cpr/ticpr0100m000" role="session">Cost Price Calculation Parameters (ticpr0100m000)</GUIRef> session.</ListItem>
         </List>
      </Note>
      <GeneralSection>
         <SectionTitle>Functional explanation</SectionTitle>
         <Paragraph>When a <Link href="/baanerp/ti/glossary/glossary#000022" role="glossary">production order</Link> is created,
		  the estimated hours and associated costs are transferred to the costing work
		  center that is linked to the planning work center. If no costing work center is
		  linked, the estimated hours are transferred to the planning work center. If the
		  estimated costs are frozen on a moment that is defined in the <GUIRef href="/baanerp/ti/sfc/tisfc0101s000#tisfc001.mfre" role="manual">Moment Freezing Estimates</GUIRef> field of the <GUIRef href="/baanerp/ti/sfc/tisfc0101s000" role="session">Production Orders (tisfc0101s000)</GUIRef> session, the end item unit costs are calculated. You
		  can view the end item unit costs by costing work center in the <Link href="/baanerp/ti/cst/ticst0510m000" role="session">End Item Unit Costs (ticst0510m000)</Link> session. When the estimated costs are frozen, the <Link href="/baanerp/ti/glossary/glossary#000054" role="glossary">WIP transfers</Link> are also
		  calculated. The WIP transfers take place between the costing work centers.</Paragraph>
      </GeneralSection>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>After the costs are
		  frozen, the planning work center can change as long as the new planning work
		  center has the same enterprise unit as the costing work center. The costing
		  work center cannot change after the costs are frozen.</Paragraph>
         <Paragraph>If you decide to ad
		  hoc subcontract an operation and decide to use an external work center instead
		  of a planning work center, the only condition is that the external work center
		  is linked to the same costing work center as the other work centers.</Paragraph>
      </Note>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000000000000004" role="manual">Work centers</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>