One useful feature of the configurator is the ability to calculate the expected cost of a configured item. The calculation runs on the actual hierarchy you have built, not on the traditional BOM structure. In other words, it uses the structure of the documents you have created for the specific configuration.
How the configurator calculates the expected unit cost
When you have a configured item, the configurator calculates the unit cost based on the hierarchy you created. In a simple example, the calculated unit cost comes out at 1263.27.
The calculation is based on the production orders that make up the configuration. If you go into the order hierarchy, you can change or remove production orders to see how the cost responds.
Updating the cost when you change routing or components
You can adjust the configuration in two ways. You can change the routing, which means the time spent on an operation. Or you can change the component, which means the material used.
As an example, take the back wheel in the configuration and change the routing. On the last operation, instead of 12 minutes, you add more minutes to that operation. Once you have made the change, go back to the sales order line and recalculate the expected cost.
When you recalculate, the system asks whether you would like to update the unit price with the profit percentage. If you accept, the cost updates to 1395, and the unit price updates accordingly based on the profit percentage. Note that the unit price may be shown in another currency.
This makes it straightforward to roll up the unit cost from the configured hierarchy, so your sales price reflects the actual configuration the customer has ordered.
Q&A
What does the configurator base its cost calculation on?
The configurator calculates the expected cost on the actual hierarchy you have built, using the structure of the documents you created for the configuration rather than the traditional BOM structure.
How do you update the cost after changing a configuration?
Go back to the sales order line and recalculate the expected cost. The system then asks whether you want to update the unit price with the profit percentage. If you accept, both the cost and the unit price update.
What can you change in the configuration that affects the cost?
You can change the routing, which is the time spent on an operation, or the component, which is the material used. Both affect the calculated unit cost.