<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ti/onlinemanual/000192" xml:lang="en">
   <Header>
      <Title>Difference between order costs, FTP, and standard cost
		price.</Title>
      <Keyword type="header" order="d1e2094066">
         <Level1>Difference between order costs</Level1>
         <Level2>FTP, and standard cost price.</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>The calculation procedure
		of the estimated order costs is basically the same as the calculation of the
		standard cost price and the <Link href="/baanerp/ti/glossary/glossary#000038" role="glossary">FTP inventory</Link> valuation-method price. This text only
		discusses the differences.</Paragraph>
      <ProcedureList>
         <ListItem>The calculation of the estimated order costs uses other data
		  sources. The estimated order costs are based on the: <List>
               <ListItem>Ordered quantity in
				the production order</ListItem>
               <ListItem>Estimated materials</ListItem>
               <ListItem>Production planning</ListItem>
            </List>
         </ListItem>
         <ListItem>The actual materials costs and the estimated material costs
		  consist of aggregated cost components. This is in contrast with the cost-price
		  calculation, which is based on detailed cost components.</ListItem>
         <ListItem>The cost price calculation does not include the calculation of
		  phantom components. For estimated production order costs, the phantom items are
		  included and calculated by detailed cost component. The planned quantity of the
		  phantoms is determined by a <Link href="/baanerp/wh/glossary/glossary#000345" role="glossary">lot-for-lot</Link> explosion.</ListItem>
         <ListItem>For the estimated order costs, only the item receipt surcharges
		  (for end items) are calculated.</ListItem>
         <ListItem>The fixed costs are excluded from the estimated order costs,
		  if one of the following check boxes is cleared: <List>
               <ListItem>The <GUIRef href="/baanerp/ti/cpr/ticpr0100m000#ticpr000.fciv" role="manual">Include Fixed Costs in Valuation Price</GUIRef> check box in the <GUIRef href="/baanerp/ti/cpr/ticpr0100m000" role="session">Cost Price Calculation Parameters (ticpr0100m000)</GUIRef> session.</ListItem>
               <ListItem>The <GUIRef href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.fciv" role="manual">Include Fixed Costs in Project Valuation</GUIRef> check box in the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000" role="session">Project Control Parameters (tipcs0100m000)</GUIRef> session.</ListItem>
            </List>
         </ListItem>
         <ListItem>The calculation is influenced by the <GUIRef href="/baanerp/ti/sfc/tisfc0100s000#tisfc000.rswc" role="manual">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 the Production Results on Work
		  Center check box is selected, for every operation the estimated order cost is
		  accumulated from this operation and from previous operations. The amount is
		  stored on the WIP transfer cost component.</ListItem>
         <ListItem>Estimated order costs do not lead to financial transactions.
		  The estimated order cost are used for: <List>
               <ListItem>the determination of
				the production results</ListItem>
               <ListItem>WIP transfer prices</ListItem>
               <ListItem>preclosure posting
				of surcharges.</ListItem>
            </List>
         </ListItem>
         <ListItem>Subcontracting is the process of outsourcing a part of the
		  production process to a supplier. Two types occur: <List>
               <ListItem>Unplanned
				subcontracting</ListItem>
               <ListItem>Planned
				subcontracting</ListItem>
            </List>
         </ListItem>
      </ProcedureList>
      <Paragraph>The order estimate
		always includes costs for subcontracting.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000031" role="manual">Calculating the standard cost price</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000025" role="manual">Cost-price calculation for a manufactured item</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>