Overview
Configuration Sessions calculate the Price and Cost per Configuration Session Component. The source of these values depends on the type of Component entity (Inventory, Product, Service, Labor, Entitlement, Miscellaneous). Both Price and Cost details will be exported along with the Configuration Session Components and form part of the output Sales Order Line/s which will go through the Sales Order Fulfillment steps.
Navigation
Selection Component
NOTE Although there is a separate menu option under the ‘Sales Order Setup’ menu, it is advised that Selections Components be created and maintained by using the Configuration Group > Group Selections tab > Configuration Selection button > Selection Components tab.
Cost Sources by Component Type
The cost is not visible on most Configuration Selection Component records, but it will be calculated and displayed during a Configuration Session when setup that way on SO Control and/or overriden at Customer Master. This sections is meant to provide information as to how these costs are fetched/calculated.
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Costs for Component Types of Product, Inventory, Labor and Service are derived from their “source entity”;
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Components type Product;
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Products (Type Kit, Miscellaneous and Service) rollup the Cost from their 'Product Components'. If they do not have any Product Components, the cost would be zero. If the product component references an Inventory Item, the costing for 'Component Type Inventory' -see below- would apply.
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Products (Type Stock) source their costs as below, depending on Division's Costing method;
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Inventory Item Standard Cost record if using Standard Cost Cost Method. Navigation: Inventory Item Master > Inventory Item Standard Costs > Cumulative Standard tab > 'Standard Total' field.
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Inventory Item Cost/Qty record if using Weighted Average. Navigation: Inventory Item Master > Inventory Item Costs/Qty > Last Avg Costs tab > 'Last Avg Unit Cost, Total' field.
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Component Type Inventory; source its costs as below, depending on Division's Costing method;
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Inventory Item Standard Cost record if using Standard Cost Cost Method. Navigation: Inventory Item Master > Inventory Item Standard Costs > Cumulative Standard tab > 'Standard Total' field.
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Inventory Item Cost/Qty record if using Weighted Average. Navigation: Inventory Item Master > Inventory Item Costs/Qty > Last Avg Costs tab > 'Last Avg Unit Cost, Total' field.
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Component Type Labor, its cost is calculated as the sum of labor time (run, setup, machine hours) multiplied by the labor grade rates –including labor and fringe overheads multiplied by their respective rates- as defined on the Independent Operation referenced on the Configuration Selection Component. Those Independent Operations that have Material Details will also include the costs from those materials to this 'Labor' component cost calculation (the material cost will be fetched as for Stock Products and Inventory Components, as described above).
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Component Type Service, its cost is fetched from source 'Service Item' record.
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Costs for Miscellaneous can be optionally entered on the Selection Component record. When a cost is entered for these Component Types, the Credit Account must be defined.
Price Methods by Component Type
The availability of specific Price Methods depends on the Component's Component Type. When a Type is chosen, the 'Price Method' dropdown will display available options as below;
Entitlement: This is a type of product that has no corresponding Inventory corollary.
Inventory: This is an Inventory Item (ICITEM) valid in the Inventory Division defined for the given Configuration Group and may not necessarily have a Product associated with it.
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Source Entity: Uses Component Price for pricing (For details on this record see Component Price Maint)
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Specified Price: User-defined price
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Cost Plus Markup: If Standard Cost, the inventory item standard cost times user-defined markup percentage. Under Weighted Average, the current average cost for the item, times user-defined markup percentage
Labor: This is an Independent Operation valid in the Inventory Division defined for the given Configuration Group. (For details on this record see Independent Operations)
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Source Entity: Uses Independent Operation for pricing
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User will be able to define a ‘Price per Hour’, Initially, its value will be fetched from the selected Independent Operation, and can be overridden by the user.
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This ‘Price per hour’ value will be used to calculate the extended price for Run and Setup labor hours.
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If the Independent Operation has Machine Hours, the price for those Machine Hours will be fetched from the 'Sales Price per Hour' specified on the referenced 'Manufacturing Machine Master'.
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Specified Price: User-defined price
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‘Price’ specified by the user will be understood as price for 1 unit of this labor operation component (which would be the extended price of all the labor and machine hours for the Independent Operation).
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Field ‘Price per hour’ is irrelevant for this price method.
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Cost Plus Markup: Uses the Independent Operation calculated cost, times user-defined markup percentage.
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Once the user has selected an Independent Operation, specified a Markup Percentage and saved the record, the ‘Price’ field will auto-populate with the calculated marked-up cost, from the source Independent Operation.
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If the Independent Operation has Machine Hours, the price for those Machine Hours will be fetched from the 'Sales Price per Hour' specified on the referenced 'Manufacturing Machine Master'.
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Field ‘Price per hour’ is irrelevant for this price method.
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For Price Method ‘Cost Plus Markup’, fields ‘Cost’, ‘Price’ and ‘Price per Hour’ will be disabled for edits.
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If the source cost changes on the specified Independent Operation (for example, the Labor Grade hourly rate is updated), this will be reflected on existing Configuration Selection Components.
Miscellaneous: This is a user-defined item that has no corresponding item master of any type. When used, Cost, Credit Account and UOM need to be set.
Product: This is a “non-Configured Product” Product (can only be Products with Product Type = Stock, Kit, Miscellaneous or Service).
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Product Price: Uses standard SO Pricing logic. If the component's Product Master > Inventory tab is flagged with 'Price From Components (Kit and Config)', then the Price will be derived from rolling up the Price from its effective Product Component records, else it will use the standard SO Pricing logic.
NOTE While on a Configuration Session, user is able to check price source of Product pricing by opening Configuration Session > Configuration Session Components button, and clicking on the small blue dot under the price for a Product based component.
Service: This is a Service Item (not to be confused with a Service Product) valid for the Sales Division defined for the given Configuration Group.
NOTE When used, Credit Account needs to be set.
Pricing Considerations
Price Methods were described above that address how the price is derived within the Product Configurator.
When ‘Price From Components’ is checked on the configurable Rootstock Product Master, the price derived from the Product Configurator is used to set the ‘Unit Price’ on the Sales Order or Rootstock Quote Line.
Changes made to Non-Inventory Components (SOLINENIC), Configured Sales Order Material (SOCONFIG) or Configured Sales Order Labor (SORTOPER) directly on the SO or Quote Line (prior to ‘Firming’ the line) will be used to recalculate the ‘Unit Price’.
It is noteworthy to understand that any special pricing or pricing discounts established for the configurable Rootstock Product will NOT be used. Note that in these cases, the ‘Price Source’ identified on the order line will be set to ‘ROL’ (Rollup).
Alternatively, if the ‘Price From Components’ flag is unchecked, then the normal pricing logic will be used, applying any pricing, special pricing or pricing discounts. When that is the case, the ‘Price Source’ and ‘Price Discount Source’ will reflect the pricing method used.
SEE ALSO
Component Price Maintenance
Inventory Item Standard Costs
Product Configurator - Overview
Configuration Selection Component
Configuration Session
