Re: Concept of Cost Set & Cost Bucket -- BPCS-L

think of a cost bucket as an 'element of cost'. for example cost bucket
1 might represent material cost, cost bucket 2 labor cost, cost bucket 3
overhead cost, cost bucket 4 outside processing cost. you have complete
control as to how many cost buckets you want to define and maintain
within your system. cost bust zero is special as it is the total of cost
buckets 1 through N (where N is how many you define. thus cost bucket
zero is the total cost of a part and bucket 1 through N are the various
cost elements that make up that total.

think of a cost set as costs at a certain time. cost sets 1 through 3
are generally reserved for use by bpcs, but after that you can define as
many user cost sets as you want to.

the bpcs cost sets are 
cost set 1 = actual cost
cost set 2 - current cost
cost set 3 = frozen standard cost.

for example here's how we use cost sets.

at the start of the year we generate costs for cost set 3 and then
leave these unchanged throughout the year. thus any inventory valuation
calculation will use the same cost for the part throughout the year.
each time we place a po we look at the material costs and change the
material cost bucket in cost set 2 to represent our current experience
for buying that material. at least once a week we generate costs in cost
set 2. this uses the current material cost fro the cost set material
cost bucket as well as the current b/m, routing, and lot size. thus we
get an feel for what it currently costs us to make a part as compared to
the frozen costs in set 3. 

at the end of the year we define a new cost set, say 60, and we copy
the frozen costs from cost set 3 to cost set 60. then we copy the
current costs from cost set 2 (current) to cost set 3 (frozen). thus
we've established a new frozen cost for the new year. we'll go through
the year and continue top maintain cost set 2. note that if we ever want
to do any 'historical' reporting we've got the prior years cost in cost
set 60. do this for several years and you could end up with many
historical cost sets.

you could also define user costs sets for special projects, put in cost
elements for the special project, an then roll up costs in that cost set
to get special project costs.

hope this helps.

>>> ajit.redekar@xxxxxxx 11/25/04 07:31PM >>>

Hi All,
 
Let me first convey a warm regards to all of you, since this is my
first
mail in the group. As a technical support person for BPCS I am bit
fresher and hence trying to gather some information for the same i.e.
BPCS.
 
Can anyone focus on concept of cost set & cost Bucket implemented in
BPCS?
 
Thanks in Advanced
:-)
Ajit
 
Friendship has its bounds for everyone while love has a fencing of
horizon!!
 
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