The field indicates the cost driver to use when a costing component or costing element is calculated.
For a detailed description of each cost driver per costing component, see the document Costing Components and Cost Drivers in M3 Product Costing in the M3 Key Process Documentation.
Alternatives
For components A01–A03 (material costs):
Blank = No selection possible.
For components A04–A05 (material costs):
41 = Order-initiated portion of the purchase costing.
97 = Distribution cost for distributed items, applied when check box 22 ‘Split cost into costing components’ is selected in (PCS001/F). For details, see document Configure Basic Product Costing Settings in the M3 Key Process Documentation.
99 = Material overhead (percentage).
For components B01–B14 (operation costs):
= VOLUME-BASED COST DRIVERS:
1 = Machine time—production.
2 = Labor time—production.
3 = Total machine time (both production and setup, 1 above + 41 below).
4 = Total labor time (both production and setup, 2 above + 42 below).
5 = Unit produced. (The cost is multiplied by a production factor which can be specified for each operation.)
6 = Weight unit produced. (The initial weight which can be specified for the operation is used to find out the weight.)
7 = Order multiple.
8 = Cost multiplication unit. (The multiplier is specified in the operation.)
9 = Volume produced. (Volume is specified in the operation.)
99 = Percent.
= ORDER-INITIATED COST DRIVERS:
41 = Machine time (internal setup time).
42 = Labor time (internal and external setup time).
43 = Cost per operation.
44 = Cost per material line in the structure which is connected to the operation.
45 = Transport distance to the next work center. (The distance specified in the transport table is used.)
48 = Cost multiplication unit. (The multiplier is specified in the operation.)
For components C01–C02 (tools costs):
= VOLUME-BASED COST DRIVERS:
1 = Machine time.
2 = Price per tool punch. (The quantity is divided by the value in the field for number of items per punch that is defined for the tool.
= ORDER-INITIATED COST DRIVERS:
41 = Per operation performed.
For component D01 (subcontracting costs):
Blank = No selection possible.
For component D02 (subcontracting overhead costs):
41 = Order-initiated portion of the purchase costing.
99 = Subcontracting overhead (percentage).
For components E01–E10 (product overhead costs):
= VOLUME-BASED COST DRIVERS:
1 = Gross weight.
2 = Volume.
3 = Quantity in basic unit of measure.
4 = Lead time with capital tied up. Formula: lead time * percent * sum of A, B, C and D components / no. of workdays during the year. The cost driver is specified in percent.
5 = Average inventory formula: average inventory. * price / annual demand. The cost driver is specified in percent.
6 = Structure complexity, that is, the cost per complexity unit. The number of units is specified in (PDS001 - Product Structure. Open).
7 = User-defined field 2 in the item file.
95 = Margin amount, that is, the difference between the cost price and the sales price on a work order.
96 = Invoice matching difference.
97 = Distribution cost for distributed items, applied when check box 22 ‘Split cost into costing components’ is selected in (PCS001/F). For details, see document Configure Basic Product Costing Settings in the M3 Key Process Documentation.
98 = Uplift (change of standard cost) for distributed items. This cost driver is updated when (DPS290 - Distribution Costing. Calc Selection) is run, provided that the Move component values setting is selected in (DPS290/E - Distribution Costing. Calc Selection).
99 = Percent.
= ORDER-INITIATED COST DRIVERS:
41 = Cost per lead time day.
42 = Ordering cost (cost per order).
43 = Number of material lines in the structure. (The rate is multiplied by the number of lines.)
44 = Number of operation lines (excluding subcontract) in the structure, that is, the cost per operation. (The rate is multiplied by the number of lines.)
45 = Number of subcontract operation lines in the structure, that is, the cost per subcontract operation. (The rate is multiplied by the number of lines.)
46 = Structure complexity - see cost driver 6 above.
The field indicates the cost driver to use when a costing component or costing element is calculated.
For a detailed description of each cost driver per costing component, see the document Costing Components and Cost Drivers in M3 Product Costing in the M3 Key Process Documentation.
Alternatives
For components A01–A03 (material costs):
Blank = No selection possible.
For components A04–A05 (material costs):
41 = Order-initiated portion of the purchase costing.
97 = Distribution cost for distributed items, applied when check box 22 ‘Split cost into costing components’ is selected in (PCS001/F). For details, see document Configure Basic Product Costing Settings in the M3 Key Process Documentation.
99 = Material overhead (percentage).
For components B01–B14 (operation costs):
= VOLUME-BASED COST DRIVERS:
1 = Machine time—production.
2 = Labor time—production.
3 = Total machine time (both production and setup, 1 above + 41 below).
4 = Total labor time (both production and setup, 2 above + 42 below).
5 = Unit produced. (The cost is multiplied by a production factor which can be specified for each operation.)
6 = Weight unit produced. (The initial weight which can be specified for the operation is used to find out the weight.)
7 = Order multiple.
8 = Cost multiplication unit. (The multiplier is specified in the operation.)
9 = Volume produced. (Volume is specified in the operation.)
99 = Percent.
= ORDER-INITIATED COST DRIVERS:
41 = Machine time (internal setup time).
42 = Labor time (internal and external setup time).
43 = Cost per operation.
44 = Cost per material line in the structure which is connected to the operation.
45 = Transport distance to the next work center. (The distance specified in the transport table is used.)
48 = Cost multiplication unit. (The multiplier is specified in the operation.)
For components C01–C02 (tools costs):
= VOLUME-BASED COST DRIVERS:
1 = Machine time.
2 = Price per tool punch. (The quantity is divided by the value in the field for number of items per punch that is defined for the tool.
= ORDER-INITIATED COST DRIVERS:
41 = Per operation performed.
For component D01 (subcontracting costs):
Blank = No selection possible.
For component D02 (subcontracting overhead costs):
41 = Order-initiated portion of the purchase costing.
99 = Subcontracting overhead (percentage).
For components E01–E10 (product overhead costs):
= VOLUME-BASED COST DRIVERS:
1 = Gross weight.
2 = Volume.
3 = Quantity in basic unit of measure.
4 = Lead time with capital tied up. Formula: lead time * percent * sum of A, B, C and D components / no. of workdays during the year. The cost driver is specified in percent.
5 = Average inventory formula: average inventory. * price / annual demand. The cost driver is specified in percent.
6 = Structure complexity, that is, the cost per complexity unit. The number of units is specified in (PDS001 - Product Structure. Open).
7 = User-defined field 2 in the item file.
95 = Margin amount, that is, the difference between the cost price and the sales price on a work order.
96 = Invoice matching difference.
97 = Distribution cost for distributed items, applied when check box 22 ‘Split cost into costing components’ is selected in (PCS001/F). For details, see document Configure Basic Product Costing Settings in the M3 Key Process Documentation.
98 = Uplift (change of standard cost) for distributed items. This cost driver is updated when (DPS290 - Distribution Costing. Calc Selection) is run, provided that the Move component values setting is selected in (DPS290/E - Distribution Costing. Calc Selection).
99 = Percent.
= ORDER-INITIATED COST DRIVERS:
41 = Cost per lead time day.
42 = Ordering cost (cost per order).
43 = Number of material lines in the structure. (The rate is multiplied by the number of lines.)
44 = Number of operation lines (excluding subcontract) in the structure, that is, the cost per operation. (The rate is multiplied by the number of lines.)
45 = Number of subcontract operation lines in the structure, that is, the cost per subcontract operation. (The rate is multiplied by the number of lines.)
46 = Structure complexity - see cost driver 6 above.
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