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.

Hint

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 a Calculator.
  • You are in the Calculations workspace.

  1. Click on Manage in the ribbon.

  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. For the should cost calculation enter the name "Motor Shaft" in the Structure view.

  4. Define the following properties for the should cost calculation in the Details view > Assumptions view scheme (combobox):

    Production Quantity 100,000.00 pc / a
       
    Business Unit Business Unit 1
    Purpose Benchmarking
       
    Reference Company
    Industrial Sector Manufacture of Rubber and Plastic Products
    Production Location World > Europe > Germany > Brandenburg
       
    Target Profit Rates
    Target Profit Rate on Raw Material 20 %
    Target Profit Rate on Purchased Parts 20 %
    Target Profit Rate on Manufacturing 20 %

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

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.

  1. Click on Manage in the ribbon.

  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. For the should cost calculation enter the name "Motor Shaft" in the Structure view.

  4. Choose FACTON as data origin in the Details view > Details view > Assumptions view scheme (combobox) (combobox).

    The required dimensions for determining the value rules are displayed.

  5. Define the following properties for the should cost calculation in the Details view > Details view > Assumptions view scheme (combobox) (combobox):

    Production Quantity 100,000.00 pc / a
       
    Reference Company*
    Industrial Sector Manufacture of Rubber and Plastic Products
    Production Location World > Europe > Germany > Brandenburg
    Product Type General
    Reference Company Plant Revenue 50 - 200 M
       
    Target Profit Rates
    Target Profit Rate on Raw Material 20 %
    Target Profit Rate on Purchased Parts 20 %
    Target Profit Rate on Manufacturing 20 %

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