Cost Accounting for Resources (calculation) 3/4

Applying Calculated Cost automatic calculation process recalculate evaluated Resource Costs to actual Resource Cost. Actual resource costs are the really costs bookkeeper posted as payables costs on G/L accounts (energy, fuel, oil, tires, maintenance, depreciations, payrolls…).

Complete Applying Calculated Cost automatic calculation process is based on next steps:

1)     Setting the actual mapping

2)     Starting the calculation

3)     Configure date rang

4)     Getting Resource Cost Calculation results

5)     Applied Costs to entries and choosing model of applying

We will discussed about all of them:

Setting the actual mapping

We can make more resource mapping variants in the same time. When we want to apply specific mapping to entries, we must to set mapping name on Resources Setup, on Default adj. res. Name field. This name, we must configure on all mapping line on Adjust Resources Cost table.

Starting the calculation

We need to start Calculate Resource Cost command. When we start this function, we need to choose calculation variant:

  • based on actual quantity in entries
  • based on planned quantity

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Configure date rang

System make calculation for specific date rang. To get correctly data, we always have to set start date as first day in year. End date is the last date for calculating period. As this setup, system will always make cumulative calculation.

Resource Cost Calculation results

When function finish procedure, system used value in Cost Posted to GL, and depend of choice calculated next:

  • Actual Quantity: value in Cost Posted to GL divide with actual resource quantity for period in field Resource Quantity on the same table
  • Planned Quantity: value in Cost Posted to GL divide with planned resource quantity configured on Resource Card

This results was multiplicity with percent in Share of Cost on G/L Account % field and put it value in Calculated Cost field.

We have choice in calculation because these costs is used in offering process. Sometimes, resources did not works at specific period. If we calculated with actual quantity we can get abnormal resource costs for desired period (e.g. civil-engineering machines on winter period). Later in same year, we can recalculate complete costs for complete period with actual quantities.

Applied Costs to entries

When calculate process finished, difference from Calculated Cost and Unit Cost placed in Adj. Direct Unit Cost. This is value for update existing value in Resource Ledger Entry and Job Ledger Entry.

We can look up values and analyze them. We can continue to use planned values in Unit Cost field or apply calculated values. If we want to apply calculated values, we need to start Apply Calculated Cost command.

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What and where to apply?

When we start this command, we must to choose method of applying or we can cancel job:

  • Apply cost calculation: NAV will only update calculated values to Direct Unit Cost and Unit Cost; new entries will be using new costs.
  • Apply cost calculation and post to entries: NAV will update values to Direct Unit Cost and Unit Cost and update all values in Resource Ledger Entry and Job Ledger Entry on desired period.

When process is done, NAV will marking field Applied Calculated Costs.

What else?

Usually, we don’t use the same Unit of Measures for all resource usage. Sometimes, we use kilometers for vehicle usage, but sometimes we use work hours or transported volume, or combination of them, or…

We have standard solution for posting this solution, we can use Work Types with configured additional Unit of Measures. But, how to calculate cost of them? There no exist completely exact way to do this, but we can get “enough exact” way. First, we need to use Unit Price for internal reason (or external, it doesn’t matter). We must to use this for standard resource price and for all work types.

We have to set that we want to use that calculation system on Resource Setup and Default Cost Type (Fixed, % Extra, LCY Extra). When we start this functionality, NAV will automatic calculate cost per work types using Unit Price for work type and Price/Profit Calculation and Profit % values on Resource Card fields.

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