DP Cost Rollup – An overview

Introduction

Standard Costing uses predetermined standards in which the inventory is valued from time to time. This calls for periodic revision of standards based on the budgeted output. One method by which the inventory costs are revalued is through the process of Cost Roll up.

Cost Rollup component calculates the cost of manufactured items (i.e. finished goods and intermediates) based on product recipes and standard duration taken for production.  Apart from yielding the unit cost for the items the process also results in giving break up of the unit cost in terms of the component cost elements.

Feature Highlights

• Cost Roll up can be done for a single item or a set of items.

• An option determines the cost of the input items to be considered when a certain item is purchased as well as subcontracted.

• Roll up can be done for a single or multi-level explosion.

• Further an additional cost burden can be assigned to the costs arrived at after roll up Process.

• On updating the Inventory these costs post entries into the finance books for the standard cost revaluation done.

• The process of cost roll up is also supported off-line wherein the request IDs to be scheduled off-line can be specified.

List of Activities