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<ManualTopic ID="/baanerp/ti/onlinemanual/000303" xml:lang="en">
   <Header>
      <Title>Assembly order costing</Title>
      <Keyword type="header" order="d1e2063978">
         <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="manual">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="manual">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="option">Order Based</GUIRef> transaction processing. Select your transaction-processing
		  method in the <GUIRef href="/baanerp/ti/asc/tiasc0100m000#tiasc000.trpr" role="manual">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="option">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="option">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="manual">Warehousing</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="option">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 and line station orders</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>