Create Should Cost Calculation

Depending on the data origin, different inputs are required to determine the corresponding global properties, such as exchange rates, location factors, overhead rates, and wages. You can override the determined values with the F12 key.

Tip

The consistency rule violations at the should cost calculation indicate the necessary inputs.

With Company-own Data

By creating a should cost calculation with company-own data, values are determined by value rules based on your inputs in the Details view.

Create Should Cost Calculation

  • You are logged in as Calculator.
  • You are in the Calculations workspace.
  1. In the ribbon, click on Manage.
  2. Select the Should Cost Calculation.

    The created calculation opens in a new tab.

    You are the owner of the calculation that was created.

  3. Define the following properties for the should cost calculation in the Details view:
    4. General
    Business Unit Business Unit 1
    Purpose Should Costing
    Reference Company
    Industrial Sector Manufacture of fabricated metal products, except machinery and equipment
    Production Location World » Europe » Germany
    Production Planning
    Production Quantity 100,000 pc / a
    Target Profit Rates
    Target Profit Rate on Raw Material 2 %
    Target Profit Rate on Purchased Material 2 %
    Target Profit Rate on Manufacturing 2 %

With FACTON Data

By creating a should cost calculation with FACTON data, values are determined by value rules based on your inputs in the Details view.

Create Should Cost Calculation

  • You are logged in as Calculator.
  • You are in the Calculations workspace.
  1. In the ribbon, click on Manage.
  2. Select the Should Cost Calculation.

    The created calculation opens in a new tab.

    You are the owner of the calculation that was created.

  3. Select »FACTON« as data origin in the Details ► Data Origins view.

    The required dimensions for determining the value rules are displayed.

  4. Define the following properties for the should cost calculation in the Details view:
    5. Reference Company*
    Industrial Sector Manufacture of fabricated metal products, except machinery and equipment
    Production Location World » Europe » Germany
    Reference Company Plant Revenue 100m EUR
    Reference Company Material Share 50%
    Reference Company Degree of Automation Medium
    Production Planning
    Production Quantity 100,000 pc / a
    Target Profit Rates
    Target Profit Rate on Raw Material 2 %
    Target Profit Rate on Purchased Material 2 %
    Target Profit Rate on Manufacturing 2 %

    * Values are determined for the following properties using value rules based on your inputs under reference companies:
    • Material Overhead Rate
    • Manufacturing Overhead Rate
    • Administrative Overhead Rate
    • Sales Overhead Rate
    • Development Overhead Rate
    • Logistics Overhead Rate
    • Imputed Interest Rate
    • Electricity Cost Rate
    • Floorspace Cost Rate

With supplier Data

By creating a should cost calculation with supplier data, values are determined by value rules based on your inputs in the Details view.

Create Should Cost Calculation

  • You are logged in as Calculator.
  • You are in the Calculations workspace.
  1. In the ribbon, click on Manage.
  2. Select the Should Cost Calculation.

    The created calculation opens in a new tab.

    You are the owner of the calculation that was created.

  3. Select »Supplier« as data origin in the Details ► Data Origins view.

    The required dimensions for determining the value rules are displayed.

  4. Define the following properties for the should cost calculation in the Details view:
    5. Reference Company
    Production Location World » Europe » Germany
    Production Planning
    Production Quantity 100.000 pc / a
    Target Profit Rates
    Target Profit Rate on Raw Material 2 %
    Target Profit Rate on Purchased Material 2 %
    Target Profit Rate on Manufacturing 2 %