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Cost Centre Rate Scenario

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The Cost Centre Rate Scenario function is a simulation and decision support management tool.

The main purpose of this tool is to assist the end-user and management in doing simulations (Business Plan and Sales Plan) e.g.:

In preparing a quotation to deliver products to a potential client.

 

To simulate different year end budgeting scenario's. To escalate labour costs based on e.g. sales forecasts, production schedules and where the cost of materials (Part Price Scenario function) have to be escalated based on different lot sizes, lead times, currencies etc.

After a successful simulation run the Cost Generation function can be used to test a simulation result against specific end products.  

 

To mass update current and future financial year data (labour variable, fixed overhead costs and charge out rates) according to the rules as specified on the Division function.

A basic simulation process can be described as follows:

Create a Scenario:

A scenario code (Budget Scenario function) has to be created displaying a summarized scenario description, the created by employee, if this scenario is applicable to material costs and or labour costs etc.

 

Write a SQL query:

Using the SQL Routine tab a detailed calculation description can be specified as well as the SQL query representing the specified scenario.

 

Test SQL results and correct errors, as displayed on the Result Errors tab, where applicable.

 

Make additional changes and save simulation results:

Before saving the simulation result to a specific financial year, additional changes to individual end items can be made (Results tabs). After a result was saved changes to specific end items, such as Class A items or long lead time end items, can be made using the Cost Centre function.

 

Do a Cost Generation run (Cost Generation function) to test the scenario results against specific final and sub-assemblies:

If approved (this is where the status of the selected scenario code is changes to approved on the Budget Scenario function) the scenario results (labour rate, variable and fixed overhead rates and charge out rates) can be copied to the next financial year, if allowed (Division function), or future financial years.

 

On this tab the following fields can be viewed:

 

hmtoggle_plus1Created By

The purpose of this employee is to identify the employee responsible for creating the specific scenario.

The created by employee is a mandatory field and is populated with the surname, first name, middle initial and the employee ID from the Employee Master table.

The signed - on employee will be defaulted in this combo box, as the created by employee,  after a Scenario Code was selected. The number of characters to be entered before the list is shown is governed by the value of "populate length" (mandatory).

hmtoggle_plus1Copy Rate

This frame is used to enable the signed - on employee to copy a result set (labour rate, variable overhead rate and fixed overhead rate) to the Cost Centre Financial Year Data table for a selected financial year as the new standard rate.

 

To copy a result set the signed - on employee has to comply to the following:

A Scenario and Created By have to be selected.

 

And the Result has to exist on the Cost Centre Rate Scenario table.

 

And all Records of the result have to be displayed in the Grid.

 

And the Signed - On Employee has to be equal to the selected created by employee.

 

And the Signed - On Employee has to have a profile, linked to the Cost Centre Rate Scenario function with at least Add, Change and Delete rights.

 

And the Status of the selected scenario has to be equal to approved.

 

And a Destination Financial Year has to be selected in the Destination Financial Year combo box. The destination financial year is populated from the Financial Year Data table.

 

And if the selected Destination Financial Year is equal to the next financial year, the setting named "Allow Next Year Cost Update Via Cost Centre" has to be equal to either "Allow" or "Allow But Send Mail".

 

If the Override Existing Records check box is checked when the signed - on employee copies a result, all existing records on the Cost Centre Financial Year Data table will be replaced with the new records.

 

If the Override Existing Records check box is unchecked when the signed - on employee copies a result, only records that does not exist on the Part Financial Year Data table will be inserted.

hmtoggle_plus1Scenario Code

The scenario code is used to identify a specific scenario.

 

This combo box is populated with applicable (Budget Scenario function) scenario code's and scenario descriptions from the Budget Scenario table.

 

This is an alphanumeric field with a maximum  length of 10 characters.

 

The number of characters to be entered before the list is shown is governed by the value of the "populate length" (mandatory).