Recovering Development Costs in a BOM

Many thanks to those who replied to my enquiry last month regarding a method
of recovering development costs in a Bill of Materials, I have tried setting
up a Backflush Operation and it does appear to do what we were looking for!
Best regards

Paul Whittle
Business Process (Quality) Manager
Jiskoot Autocontrol Ltd
Tunbridge Wells
Kent TN1 2DJ UK

Direct Line +44 (0)1892 779975
Switchboard +44 (0)1892 518000
Fax +44 (0)1892 518100
www.jiskoot.com



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Hi all,

We are looking for a method of including the recovery of development costs
in the standard costs of a product. This would be a fixed sum for every
unit manufactured (but vary for different parts), and should be included in
the "break-even" price, as we use the standard cost for inter-company sales.

Adding a "Development" material to the BOM would cause stocking problems,
and we don't want to have to book labour to bump the cost up, as this would
probably require some form of manual intervention to ensure that the hours
were booked on every Job.

Has anyone found a solution to this problem - we can't be the only company
trying to recover our development overhead from the number of parts sold!


Best regards

Paul Whittle
Business Process (Quality) Manager
Jiskoot Autocontrol Ltd
Tunbridge Wells
Kent TN1 2DJ UK

Direct Line +44 (0)1892 779975
Switchboard +44 (0)1892 518000
Fax +44 (0)1892 518100
www.jiskoot.com



----------

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How about a subcontract operation, you can set a fixed cost and a fixed lead
time with yourselves as subcontractor. The ugly part is shipping to
yourself and receiving to yourself. (which would endear you to your
shipping and receiving guy/girl).



Shirley Graver

Sys Admin

Rubber Associates inc



-----Original Message-----
From: Paul Whittle [mailto:pwhittle@...]
Sent: Thursday, September 18, 2003 4:18 AM
To: Vantage User group (E-mail)
Subject: [Vantage] Recovering Development Costs in a BOM



Hi all,

We are looking for a method of including the recovery of development costs
in the standard costs of a product. This would be a fixed sum for every
unit manufactured (but vary for different parts), and should be included in
the "break-even" price, as we use the standard cost for inter-company sales.

Adding a "Development" material to the BOM would cause stocking problems,
and we don't want to have to book labour to bump the cost up, as this would
probably require some form of manual intervention to ensure that the hours
were booked on every Job.

Has anyone found a solution to this problem - we can't be the only company
trying to recover our development overhead from the number of parts sold!


Best regards

Paul Whittle
Business Process (Quality) Manager
Jiskoot Autocontrol Ltd
Tunbridge Wells
Kent TN1 2DJ UK

Direct Line +44 (0)1892 779975
Switchboard +44 (0)1892 518000
Fax +44 (0)1892 518100
www.jiskoot.com



----------

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[Non-text portions of this message have been removed]
You're not alone. We use an in-house developed quoting system rather than Vantage's for just this reason. We call it "amortizing tooling" where we spread the tool engineering charge across the expected first order qty by raising the piece price on that order. We too would be very interested in a way to handle this within Vantage.

As far as capturing the separate costs - we create a separate job (main job number with a "T' in front of it - could be "D" for development). If tooling is amortized we link it to a $.01 sales order line item otherwise the line is for the quoted engineering charge. Matching the amortized tool revenue to the tool job costs was a whole bunch of RB gyrations.

Definitely an area ripe for enhancements.
-Todd C.


-----Original Message-----
From: Paul Whittle [mailto:pwhittle@...]
Sent: Thursday, September 18, 2003 3:18 AM
To: Vantage User group (E-mail)
Subject: [Vantage] Recovering Development Costs in a BOM


Hi all,

We are looking for a method of including the recovery of development costs
in the standard costs of a product. This would be a fixed sum for every
unit manufactured (but vary for different parts), and should be included in
the "break-even" price, as we use the standard cost for inter-company sales.

Adding a "Development" material to the BOM would cause stocking problems,
and we don't want to have to book labour to bump the cost up, as this would
probably require some form of manual intervention to ensure that the hours
were booked on every Job.

Has anyone found a solution to this problem - we can't be the only company
trying to recover our development overhead from the number of parts sold!


Best regards

Paul Whittle
Business Process (Quality) Manager
Jiskoot Autocontrol Ltd
Tunbridge Wells
Kent TN1 2DJ UK

Direct Line +44 (0)1892 779975
Switchboard +44 (0)1892 518000
Fax +44 (0)1892 518100
www.jiskoot.com



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We are trying to find a way to include the cost of shipping the parts to outside vendors to the work orders. We use our own drivers and our own trucks. We were thinking about using Labor hours that would be backflushed when the next operation was completed. We were looking for other options as well if there are any. We were going to figure a per unit cost and then the next operation would post complete causing the labor to be issued to the previous operation that would only have burden charges attached to the labor hours (no labor cost). Any suggestions?

Todd Caughey <caugheyt@...> wrote:You're not alone. We use an in-house developed quoting system rather than Vantage's for just this reason. We call it "amortizing tooling" where we spread the tool engineering charge across the expected first order qty by raising the piece price on that order. We too would be very interested in a way to handle this within Vantage.

As far as capturing the separate costs - we create a separate job (main job number with a "T' in front of it - could be "D" for development). If tooling is amortized we link it to a $.01 sales order line item otherwise the line is for the quoted engineering charge. Matching the amortized tool revenue to the tool job costs was a whole bunch of RB gyrations.

Definitely an area ripe for enhancements.
-Todd C.


-----Original Message-----
From: Paul Whittle [mailto:pwhittle@...]
Sent: Thursday, September 18, 2003 3:18 AM
To: Vantage User group (E-mail)
Subject: [Vantage] Recovering Development Costs in a BOM


Hi all,

We are looking for a method of including the recovery of development costs
in the standard costs of a product. This would be a fixed sum for every
unit manufactured (but vary for different parts), and should be included in
the "break-even" price, as we use the standard cost for inter-company sales.

Adding a "Development" material to the BOM would cause stocking problems,
and we don't want to have to book labour to bump the cost up, as this would
probably require some form of manual intervention to ensure that the hours
were booked on every Job.

Has anyone found a solution to this problem - we can't be the only company
trying to recover our development overhead from the number of parts sold!


Best regards

Paul Whittle
Business Process (Quality) Manager
Jiskoot Autocontrol Ltd
Tunbridge Wells
Kent TN1 2DJ UK

Direct Line +44 (0)1892 779975
Switchboard +44 (0)1892 518000
Fax +44 (0)1892 518100
www.jiskoot.com



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[Non-text portions of this message have been removed]
Re-consider adding Development as an operation. If labor entry is set to backflush only, hours will be booked automatically.
HTH,
Gil

-----Original Message-----
From: Paul Whittle [mailto:pwhittle@...]
Sent: Thursday, 18 September 2003 6:18 PM
To: Vantage User group (E-mail)
Subject: [Vantage] Recovering Development Costs in a BOM


Hi all,

We are looking for a method of including the recovery of development costs
in the standard costs of a product. This would be a fixed sum for every
unit manufactured (but vary for different parts), and should be included in
the "break-even" price, as we use the standard cost for inter-company sales.

Adding a "Development" material to the BOM would cause stocking problems,
and we don't want to have to book labour to bump the cost up, as this would
probably require some form of manual intervention to ensure that the hours
were booked on every Job.

Has anyone found a solution to this problem - we can't be the only company
trying to recover our development overhead from the number of parts sold!


Best regards

Paul Whittle
Business Process (Quality) Manager
Jiskoot Autocontrol Ltd
Tunbridge Wells
Kent TN1 2DJ UK

Direct Line +44 (0)1892 779975
Switchboard +44 (0)1892 518000
Fax +44 (0)1892 518100
www.jiskoot.com



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<http://us.adserver.yahoo.com/l?M=194081.3897168.5135684.1261774/D=egroupmail/S=:HM/A=1732163/rand=951954001>

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and Crystal Reports and other 'goodies', please goto: http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto: http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto: http://groups.yahoo.com/group/vantage/links

Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service <http://docs.yahoo.com/info/terms/> .




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