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 
F12.
The consistency rule violations at the should cost calculation indicate the necessary inputs.
With Company-Own Data (default)
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 a Calculator.
- You are in the Calculations workspace.
- Click on Manage in the ribbon.
- Select the
Should Cost Calculation.The created calculation opens in a new tab.
You are the owner of the calculation that was created.
- Define the following properties for the should cost calculation in the Details ► Assumptions view schema (combobox):
| Production Quantity | 100.000 pc / a |
| Business Unit | Business Unit 1 |
| Purpose | Target Management |
| Reference Company | |
| Industrial Sector | Manufacture of metal products |
| Production Location | World » Europe » Germany |
| 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 a Calculator.
- You are in the Calculations workspace.
- Click on Manage in the ribbon.
- Select the Should Cost Calculation.
The created calculation opens in a new tab.
You are the owner of the calculation that was created.
- Choose »FACTON« as data origin in the Details ► Assumptions view schema (combobox).
The required dimensions for determining the value rules are displayed.
- Define the following properties for the should cost calculation in the Details view:
- Material Overhead Rate
- Manufacturing overhead cost rate
- Administration overhead rate
- Sales overhead rate
- Development overhead rate
- Logistics overhead rate
- Imputed Interest Rate
- Electricity Cost Rate
- Floorspace Cost Rate
| Production Quantity | 100.000 pc / a |
| Reference Company* | |
| Industrial Sector | Manufacture of metal products |
| Production Location | World » Europe » Germany |
| Reference Company Material Share | 50 % |
| Reference Company Plant Revenue | 100m EUR |
| Reference Company Degree of Automation | Medium |
| Target profit rates | |
| Target Profit Rate on Raw Material: | 2 % |
| Target Profit Rate on Purchased Material: | 2 % |
| Target Profit Rate on Manufacturing: | 2 % |
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* Values are determined for the following properties using value rules based on your inputs under reference companies: |
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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 a Calculator.
- You are in the Calculations workspace.
- Click on Manage in the ribbon.
- Select the Should Cost Calculation.
The created calculation opens in a new tab.
You are the owner of the calculation that was created.
- Choose »Supplier« as data origin in the Details ► Assumptions view schema (combobox).
The required dimensions for determining the value rules are displayed.
- Define the following properties for the should cost calculation in the Details view:
| Production Quantity | 100.000 pc / a |
| Reference Company | |
| Production Location | World » Europe » Germany |
| Target profit rates | |
| Target Profit Rate on Raw Material: | 2 % |
| Target Profit Rate on Purchased Material: | 2 % |
| Target Profit Rate on Manufacturing: | 2 % |