Routing Task – Associated Costs

The costs associated with a task can be

Material cost -Sundry materials, additives etc. which are not significant in value terms
Labor cost -This is the direct labor cost, which is not part of the BOM
General cost -These could be general factory overheads such as rent, insurance etc.
Indirect cost – These could be indirect material and labor costs, which are not associated with any workcenter (absorbed separately). Examples could be disposable gloves or PPE, labor cost for transferring intermediate products to the next stage/work center etc.
Other cost – If there are any special licenses or permits required for making a product, such as explosive license, such costs can be considered here
Route cost (fixed asset usage cost) – This is the cost of using fixed assets other than Workcentres (through which tasks are routed). These could be specialized, expensive test & measuring instruments, winches, material handling equipment such as forklifts.

A task can have one or more costs of these type associated with it. You should assign a Cost Component Calculation model for every cost associated with the task. Every such cost could be a Direct Cost or Indirect Cost. Direct costs will be absorbed either at a fixed rate per quantum of production or as a standard fixed cost amount, regardless the quantum of production. Indirect Costs, on the other hand, are applied as a percentage of either Total Material Cost or Total Process Cost Excluding Material Cost. These costs are defined under the section Production Cost Management

You can assign a From and To date for the Cost, beyond which period the cost will not be effective for the associated Task

The cost is assigned to the Task when you click Create.

In the illustration above, you can see that the Indirect Cost will be applied to the task using a new formula from 26/05/2021.

!You cannot add another Indirect Cost effective from the same date as an already existing one.