# Additional cost setup in Infor LN, including machine cost > Source: https://netray.co/erp-help/infor-ln-additional-cost-and-machine-cost-setup > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer In Infor LN, costs beyond material are built from cost components, operation rates (labor and machine) and surcharges. You define the components, set rates on work centers and machines, attach additional costs through surcharges or cost components on items and orders, and then run the cost price calculation so the values flow into item cost and order cost. ## Kind how-to ## System infor-ln ## Erp Infor LN ## Module Costing / Manufacturing ## Query additional cost setup in infor ln ## Alternate Queries - infor ln machine cost - infor ln machine rate - infor ln surcharges and operation rates ## Applies To Infor LN 10.x with Manufacturing and Costing in use. Session names vary by version. ## Steps ### Set up additional and machine costs **Items:** - Define the cost components you need (material, labor, machine, overhead, subcontracting, additional). Keep the structure small and aligned with financial reporting. - Define machines and work centers in Manufacturing master data, with the capacity and the machine/labor split you plan to cost. - Set operation rates for the work centers and machines: a machine rate and a labor rate, per hour, with validity dates. - Define surcharges for overheads and additional costs, as a percentage or fixed amount, on the right base. - Link the cost components to the item cost price structure and to the routing operations that consume machine time. - Run the cost price calculation for a test item and check the breakdown by component before releasing to all items. - Confirm production order costing posts the same components to WIP and variances. ## Sections ### Where machine cost comes from **Body:** Machine cost in LN is not a free-standing number. It is the operation rate for the machine multiplied by the time the routing says the machine is used, which is set time plus run time scaled by order quantity. If the routing does not reference the machine or the rate is missing for the date, the machine component calculates as zero. That is the most common 'machine cost not calculating' issue: rate validity dates, a routing operation that points to the work center only, or a mismatch between planned and costing units of time. ### Additional costs and surcharges **Body:** Additional costs cover overhead, subcontracting uplifts, freight on inbound material, or project-specific charges. They are normally modelled as surcharges on a defined base (material cost, labor, total) so they scale with the item. Choose the base carefully: overhead applied to total cost compounds, while overhead on labor does not. Document the surcharge logic with finance. Auditors will ask why a standard cost differs from the sum of purchase price and conversion cost, and the answer should be a table of components. ### How it flows into order cost **Body:** The item cost price is the standard or planned reference. Production orders then collect actual material, labor and machine costs by operation, and compare against the standard. Differences post as variances at close. Check that the same components exist on both sides, or variances will be mislabeled. Recalculate after any rate change, and consider a period-controlled cost price update rather than silent recalculation during the month. ## Pitfalls - Rates with a validity date that does not cover the order date, giving zero cost. - Too many cost components, which makes variance analysis unreadable. - Applying overhead on a base that already contains overhead. - Changing rates mid-period without a controlled cost update. - Machine in the routing but not linked to a costed work center. ## Ai Angle An on-prem assistant can explain a single item's cost breakdown from the tables: which components, which rates and which routing operations contributed, and why machine cost is zero. It reads costing data only and respects LN roles. Netray's ERPray is ERP-agnostic and suited to this kind of grounded explanation. ## Faq ### Why is machine cost zero in LN cost price? **Answer:** Check that the routing operation uses the machine, that an operation rate exists for the effective date, and that the cost component is mapped. Any one missing gives zero. ### Are surcharges the same as additional costs? **Answer:** They are the usual mechanism for adding costs beyond direct material and operations, but exact options depend on your version and configuration, so confirm with your costing consultant. ### Do I need to recalculate after changing a rate? **Answer:** Yes. Cost prices do not change until the calculation runs and the result is released according to your cost price update process. ### Can machine cost be by machine, not by work center? **Answer:** Yes, if you set rates at machine level and model machines in the routing. Keep it consistent with how you report. ## Search terms additional cost setup in infor ln, infor ln machine cost, infor ln operation rate, infor ln surcharges, infor ln cost component, infor ln costing setup, infor ln cost price, infor ln overhead --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json