MFG/PRO 9.0 User Guide Volume 3: Manufacturing - QAD.com

Rolling Up Costs
Roll up lower-level costs using Product Structure Cost Roll-Up (13.12.13)
or Simulation Structure Cost Roll-Up (30.13.19). Keep in mind that the
BOM/Formula code associated in the item master determines the base
process for a co-product.
Item Number/To. Typically, this program is run for all items. The
system only updates base process item costs when roll-up selection
criteria include all items in the co/by-product structure.
Site. Enter the site to which these costs apply.
Cost Set. Enter the cost set to which these costs apply. This is
normally the GL or current cost set at the selected site.
Choose Go to begin roll-up and End when roll-up is complete. To see the
results of the roll-up, use Co/By-Products Cost Report (13.12.7).
Calculating Average Costs for Co-products
Cost averaging for co-products happens when you close a work order
using the following programs.
• Work Order Receipt (16.11)
• Work Order Receipt Backflush (16.12)
• Work Order Accounting Close (16.21)
When you run Work Order Accounting Close, the following occurs.
• Co-product costs are re-averaged by taking any remaining positive or
negative WIP costs and allocating them to the co-products. If
additional costs are recorded for a work order after costs are
allocated, the remaining costs can be reallocated by reopening the
closed work order, applying the transaction, and closing it again.
• General ledger (GL) and current costs are updated.
CO-PRODUCTS/BY-PRODUCTS 69
Tip
During roll-up, the
system calculates
and updates base
process item costs
using the unit of
measure (UM) of
the BOM/Formula
code for the base
process. This UM
must be the same as
the item UM for the
base process.