<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ti/onlinemanual/000187" xml:lang="en">
   <Header>
      <Title>Example of cost and valuation price calculation</Title>
      <Keyword type="header" order="d1e2400628">
         <Level1>valuation price</Level1>
      </Keyword>
      <Keyword type="header" order="d1e2400631">
         <Level1>cost price</Level1>
      </Keyword>
      <Keyword type="header" order="d1e2400634">
         <Level1>calculation</Level1>
         <Level2>valuation price</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2400639">
         <Level1>calculation</Level1>
         <Level2>cost price</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>This example describes
		how cost prices and valuation prices are calculated related to surcharges,
		defined on item level and on warehouse level. The difference between variable
		and fixed costs is ignored in this example.</Paragraph>
   </AimSection>
   <GeneralSection>
      <Paragraph>In this example, item A
		has material costs of 10 dollars and operation costs of 6 dollars. Item A has
		been linked to warehouse 001 (in the general item data). The surcharges are
		defined as follows:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="5">
            <TR no="1" isLast="false">
               <TH rowspan="1" colspan="1">Surcharge sequence</TH>
               <TH rowspan="1" colspan="1">1</TH>
               <TH rowspan="1" colspan="1">2</TH>
               <TH rowspan="1" colspan="1">3</TH>
               <TH rowspan="1" colspan="1">4</TH>
               <TH rowspan="1" colspan="1">5</TH>
               <TH rowspan="1" colspan="1">6</TH>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Item</TD>
               <TD rowspan="1" colspan="1">A</TD>
               <TD rowspan="1" colspan="1">A</TD>
               <TD rowspan="1" colspan="1">A</TD>
               <TD rowspan="1" colspan="1">A</TD>
               <TD rowspan="1" colspan="1">A</TD>
               <TD rowspan="1" colspan="1">A</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">Warehouse</TD>
               <TD rowspan="1" colspan="1">...</TD>
               <TD rowspan="1" colspan="1">...</TD>
               <TD rowspan="1" colspan="1">001</TD>
               <TD rowspan="1" colspan="1">001</TD>
               <TD rowspan="1" colspan="1">002</TD>
               <TD rowspan="1" colspan="1">002</TD>
            </TR>
            <TR no="4" isLast="false">
               <TD rowspan="1" colspan="1">Realization moment</TD>
               <TD rowspan="1" colspan="1">receipt</TD>
               <TD rowspan="1" colspan="1">issue</TD>
               <TD rowspan="1" colspan="1">receipt</TD>
               <TD rowspan="1" colspan="1">issue</TD>
               <TD rowspan="1" colspan="1">receipt</TD>
               <TD rowspan="1" colspan="1">issue</TD>
            </TR>
            <TR no="5" isLast="true">
               <TD rowspan="1" colspan="1">Surcharge</TD>
               <TD rowspan="1" colspan="1">2</TD>
               <TD rowspan="1" colspan="1">4</TD>
               <TD rowspan="1" colspan="1">3</TD>
               <TD rowspan="1" colspan="1">5</TD>
               <TD rowspan="1" colspan="1">1</TD>
               <TD rowspan="1" colspan="1">6</TD>
            </TR>
         </TBODY>
      </TABLE>
      <List>
         <ListTitle>Questions:</ListTitle>
         <ListItem>What is the cost price?</ListItem>
         <ListItem>What is the valuation
		  price on receipt in the warehouse?</ListItem>
         <ListItem>What is the valuation
		  price on issue of item A in warehouses 001 and 002?</ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Standard cost price</SectionTitle>
      <List>
         <ListIntro>The standard cost price is the sum of the following:</ListIntro>
         <ListItem>All nonsurcharges</ListItem>
         <ListItem>All surcharges that are
		  linked to the nonspecific warehouses (surcharges 1 and 2)</ListItem>
         <ListItem>All surcharges that are
		  linked to the standard warehouse 001 of the item (surcharges 3 and
		  4)</ListItem>
      </List>
      <Paragraph>This results in the
		following calculation:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="4">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">Nonsurcharges</TD>
               <TD rowspan="1" colspan="1">16</TD>
               <TD rowspan="1" colspan="1">(material
				and operation costs)</TD>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Nonspecific
				surcharges</TD>
               <TD rowspan="1" colspan="1">6</TD>
               <TD rowspan="1" colspan="1">(surcharge 1, 2)</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">Specific
				surcharges</TD>
               <TD rowspan="1" colspan="1">8</TD>
               <TD rowspan="1" colspan="1">(surcharge 3, 4)</TD>
            </TR>
            <TR no="4" isLast="true">
               <TD rowspan="1" colspan="1">Standard cost
				price</TD>
               <TD colspan="2" rowspan="1">30 dollar</TD>
            </TR>
         </TBODY>
      </TABLE>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>For example, item A is
		  a material of item B. In other words, item A is linked to item B in the BOM.
		  The BOM warehouse is 003. To calculate the cost price of main item B, the
		  material costs of item A and the surcharges of BOM warehouse 003 are taken into
		  account. The surcharges of item A's standard warehouse 001 are <Emphasis>not</Emphasis> used.</Paragraph>
      </Note>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Valuation price (receipt)</SectionTitle>
      <List>
         <ListIntro>The receipt valuation price is the sum of the following:</ListIntro>
         <ListItem>All nonsurcharges</ListItem>
         <ListItem>All receipt surcharges
		  that have not been linked to specific warehouses</ListItem>
         <ListItem>All receipt surcharges
		  that have been linked to the specific warehouse</ListItem>
      </List>
      <Paragraph>This results in the
		following calculation:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="5">
            <TR no="1" isLast="false">
               <TH rowspan="1" colspan="1">warehouse</TH>
               <TH rowspan="1" colspan="1">001</TH>
               <TH rowspan="1" colspan="1">002</TH>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Nonsurcharges</TD>
               <TD rowspan="1" colspan="1">16</TD>
               <TD rowspan="1" colspan="1">16</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">Nonspecific receipt surcharges</TD>
               <TD rowspan="1" colspan="1">2</TD>
               <TD rowspan="1" colspan="1">2</TD>
            </TR>
            <TR no="4" isLast="false">
               <TD rowspan="1" colspan="1">Specific receipt surcharges</TD>
               <TD rowspan="1" colspan="1">3</TD>
               <TD rowspan="1" colspan="1">1</TD>
            </TR>
            <TR no="5" isLast="true">
               <TD rowspan="1" colspan="1">Receipt valuation price</TD>
               <TD rowspan="1" colspan="1">21 dollar</TD>
               <TD rowspan="1" colspan="1">19 dollar</TD>
            </TR>
         </TBODY>
      </TABLE>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Valuation price (issue)</SectionTitle>
      <List>
         <ListIntro>The issue price of an item in a warehouse is the sum of the
		  following:</ListIntro>
         <ListItem>All nonsurcharges</ListItem>
         <ListItem>All receipt surcharges
		  that have not been linked to specific warehouses</ListItem>
         <ListItem>All receipt surcharges
		  that have been linked to the specific warehouse</ListItem>
         <ListItem>All issue surcharges
		  that have not been linked to specific warehouses</ListItem>
         <ListItem>All issue surcharges
		  defined for that specific item/warehouse</ListItem>
      </List>
      <Paragraph>This results in the
		following valuation and issue prices for item A in warehouses 001 and 002:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="7">
            <TR no="1" isLast="false">
               <TH rowspan="1" colspan="1">Warehouse</TH>
               <TH rowspan="1" colspan="1">001</TH>
               <TH rowspan="1" colspan="1">002</TH>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Nonsurcharges</TD>
               <TD rowspan="1" colspan="1">16</TD>
               <TD rowspan="1" colspan="1">16</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">NonSpecific receipt surcharges</TD>
               <TD rowspan="1" colspan="1">2</TD>
               <TD rowspan="1" colspan="1">2</TD>
            </TR>
            <TR no="4" isLast="false">
               <TD rowspan="1" colspan="1">Specific receipt surcharges</TD>
               <TD rowspan="1" colspan="1">3</TD>
               <TD rowspan="1" colspan="1">1</TD>
            </TR>
            <TR no="5" isLast="false">
               <TD rowspan="1" colspan="1">Nonspecific issue surcharges</TD>
               <TD rowspan="1" colspan="1">4</TD>
               <TD rowspan="1" colspan="1">4</TD>
            </TR>
            <TR no="6" isLast="false">
               <TD rowspan="1" colspan="1">Specific issue surcharges</TD>
               <TD rowspan="1" colspan="1">5</TD>
               <TD rowspan="1" colspan="1">6</TD>
            </TR>
            <TR no="7" isLast="true">
               <TD rowspan="1" colspan="1">Issue price</TD>
               <TD rowspan="1" colspan="1">30 dollar</TD>
               <TD rowspan="1" colspan="1">29 dollar</TD>
            </TR>
         </TBODY>
      </TABLE>
   </GeneralSection>
</ManualTopic>