»Assumptions« group 
Die »Assumptions« group is initially active when opening a calculation.
Here you can define basic assumptions, such as, e. g. production quantity, overhead rates, etc. for your
Based on the assumptions, all values for the calculation are determined over master data value rules.
The »Assumptions« group has the following sub-groups:
You can specify the should cost calculation with information on production planning. You can enter the following information at the should cost calculation in the Details ► Assumptions:
- Production Quantity
- Batch Size
- Number of Production Batches
- Lifetime Production Quantity
- Production Lifetime
- SoP (Start of Production)
- EoP (End of Production)
Mode
Business Unit & Purpose
The properties »Business Unit« and »Purpose« help you to assign certain commodity groups and intended use to your should cost calculation. Simply select a value from a company-own list. This list is maintained for all business units and purposes in the Master Data ► Selection Lists.
Further Information ► Manage Selection Lists
The corresponding value rules are determined due to the chosen values at the properties »Business Unit« and »Purpose« (= dimensions of value rules), e.g. Location Factors, Overhead and Scrap Rates, etc.
Further Information ► Manage Global Properties
With the properties »Business Unit« and »Purpose« (= query parameters), you can find your should cost calculation even quicker using queries. Depending on the parameters you have entered, a reduced list of query results is being shown to select/open your calculation from.
Quantity Adjustments
| Input | Calculated | |
| Additional Production Quantity | → | Relevant Production Quantity Rate |
| Scrap Production Quantity | → | Relevant Production Quantity Rate incl. Scrap |
| Lifetime Production Quantity incl. Scrap |
Reference Company
In FACTON, you can maintain the following information on a reference company at the should cost calculation, depending on the data origin:
| Data Origin | ||
|---|---|---|
| FACTON Data | Own Company Data | Supplier Data |
|
|
|
These information are required to determine various calculation parameters, such as overhead rates, location factors, wages, material prices, or machine costs. Thus, you can carry out location simulations via reference locations and location profiles.
This may help you adjust the assumptions in the location profile quick and easy.
Location Factors
With FACTON, you can determine business days minus non-business weekend days, holidays and miscellaneous non-business days. Furthermore, FACTON helps you calculating any additional costs, such as weekend premium rates for Saturdays and Sundays, or several shift premium rates.
FACTON offers you Benchmark data for the following interest rates and cost rates which result from global properties on reference location, reference date and data origin:
- Imputed Interest Rate
- Electricity Cost Rate
- Floorspace Cost Rate
- Water Cost Rate
- Gas Cost Rate
- Compressed Air Cost Rate
Alternatively, FACTON enables you to individually define interest rates and cost rates via F12.
Overhead rates and scrap rates
In FACTON you can display and maintain the following overhead rate and scrap rate information for your should cost calculation:
| Overhead Rates | Scrap Rates |
|---|---|
|
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| Miscellaneous Overhead Cost Rate |
Under the »Overhead and Scrap Rates« group, you can define the methodology for profit calculation and depreciation, as well as the basis the overhead costs are being calculated on.
All overhead rates except for miscellaneous overhead rate are maintained as value rules in the Master DataOverhead rates workspace ► Global Properties ► Overhead Rates. The respective values of the overhead rate value rules are determined based on your entries for the following properties (value rule dimensions) at the should cost calculation:
- Business Unit
- Purpose
- Reference Location
- Industrial Sector
- Reference Date From / To
Further Information ► Overhead rates in the Master Data
Miscellaneous Overhead Cost Rate
This overhead rate can be entered directly at the should cost calculation in the Details ► Overhead rates and scrap rates. This overhead rate can be used to display several miscellaneous overhead rates. The miscellaneous overhead costs resulting from this cost are imputed in the Prime Cost II.
Further Information ► Costing Scheme ► Prime Cost II
Scrap Rates
The scrap rates can be entered directly at the should cost calculation in the Details ► Overhead rates and scrap rates.
Further Information ► Costing Scheme ► Scrap Cost
Method - Calculation of Profits
FACTON offers you several methods for calculating profits or for imputed depreciation in a should cost calculation.
You can choose between the following options for calculation of profits:
- Profit Rate on Prime Costs II
- Individual Profit Rates on Raw Material, Purchased Parts, Manufacturing
Method - Cost Base for Imputed Depreciation
For calculating the imputed depreciation, you can choose between the following cost bases:
- No Depreciation
- Replacement Cost - Residual Value
- Acquisition Cost - Residual Value
- Acquisition Cost
For your should cost calculation, you can choose between the following Method bases the overhead costs are calculated on:
- Administrative Overhead Cost
- Sales Overhead Cost
- Development Overhead Cost
- Logistics Overhead Cost
These overheads can be calculated based on the Production Cost (% ProdC) or the Manufacturing Cost (% ManC).
- Manufacturing Overhead Cost
These overhead costs can be calculated based on either the Direct Manufacturing Cost (% DManC) or the Labor Cost (% LabC).
If the Data Origin of the should cost calculation is set to Own Company, the Direct Manufacturing Cost are set as basis for the manufacturing overhead cost by default. This value can be changed.
If the Data Origin is set to FACTON, the Labor Cost are set as basis for the manufacturing overhead cost by default. This value cannot be changed.
Outbound Logistics
In FACTON, you can document agreed delivery conditions for a should cost calculation by selecting Incoterms 2010.
| Incoterms 2010 Rules per Mode of Transport | ||
|---|---|---|
| All Transport modes | EXW | Ex Works |
| FCA | Free Carrier | |
| CPT | Carriage Paid to | |
| CIP | Carriage Insurance Paid | |
| DAT | Delivered at Terminal | |
| DAP | Delivered at Place | |
| DDP | Delivered Duty Paid | |
| Air Transport | FCA | Free Carrier |
| Rail Transport | FCA | Free Carrier |
| Sea/Inland Waterway Transport | FAS | Free Alongside Ship |
| FOB | Free on Board | |
| CFR | Cost and Freight | |
| CIF | Cost, Insurance and Freight until port of destination | |
In order to take a differentiated view on the logistics costs, FACTON also offers you the possibility of recording the following information in the delivery conditions below:
- Additional Conditions of Delivery
- Packaging Concept
- Returnable Packaging
- Location of Delivery
Via the delivery conditions, you can enter all transport costs, packaging costs, customs duties and miscellaneous logistics costs that are relevant for calculation. For the miscellaneous logistics costs, you can also enter a description.
Payment Terms
In FACTON, you can define the payment period in the terms of payment for the purchased part. The imputed interest costs for the payment period are calculated according to the value you enter.
Further, you can add the cash discount rate at the should cost calculation of the purchased part. The exact amount of the cash discount is calculated in FACTON, resulting from the usage of the cash discount.
Target Profit Rates
Depending on your chosen method for calculating profit, you can define the following target profit rates in FACTON for a should cost calculation:
- Target Profit Rate on Raw Material
- Target Profit Rate on Purchased Material
- Target Profit Rate on Manufacturing:
- Target Profit Rate on Prime Cost II: