# Infor XA costing: cost types, roll-up and standard cost setup

> Source: https://netray.co/erp-help/infor-xa-costing-cost-types-and-roll-up
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: ERP Help

## Short answer

Product costing in Infor XA builds an item's cost from its material, labor, and overhead using the bill of material and routing. Standard cost is the frozen planning cost used to value inventory and measure variance, while other cost sets are used for current or simulated views. A cost roll-up calculates costs from the lowest BOM level upward. Exact program names and options vary by release.

## Kind

how-to

## System

infor-xa

## Erp

Infor XA (MAPICS XA, IBM i)

## Module

Product Costing

## Query

infor xa costing

## Alternate Queries

- infor xa standard cost roll up
- mapics xa product costing
- infor xa cost types

## Applies To

Infor XA (MAPICS XA) on IBM i. Cost type names and screens vary by release, so verify in your documentation.

## Steps

### Set up and run a cost roll-up

**Items:**

- Ensure item master data is complete: costing method, unit of measure, and purchased item costs.
- Confirm BOM structures are accurate, effective and with correct quantities and scrap.
- Confirm routings, work center rates, setup and run standards and overhead or burden rates.
- Choose the cost type to update and decide whether this is a simulation or the standard cost update.
- Run the roll-up from the lowest level to the top, using the low-level codes.
- Review the cost by element (material, labor, overhead) and compare with the old cost.
- Investigate items with large changes before accepting them.
- Freeze or update standard cost at a defined time and record the inventory revaluation impact.

## Sections

### Cost elements and types

**Body:**

Costs are carried by element: material, labor, variable overhead and fixed overhead are common categories. Purchased items get a material cost directly, and manufactured items accumulate cost from components and routing operations. Standard cost is the target; actual cost shows what you paid and spent; a simulated cost lets you test changes without touching the standard.

I am describing the common structure of manufacturing costing rather than exact XA field names, which you should verify in your release.

### How the roll-up works

**Body:**

Roll-up processes items from the lowest BOM level up, so each parent can add the already-calculated cost of its children plus its own operations. This only works if low-level codes are current. A BOM change without a low-level code update can give a stale or wrong parent cost.

Labor and overhead come from routing times multiplied by work center rates, so a wrong rate or run time flows into every product that uses the work center.

**Code:**

- Parent cost =
  SUM(component qty x component cost, plus scrap)
+ SUM(operation time x work center labor rate)
+ SUM(operation time x overhead rate)

### Pitfalls and governance

**Body:**

Changing standard cost revalues on-hand inventory, so coordinate with finance and timing around period close. Keep a simulation review step, document who approves, and retain the before and after report. Be careful with phantom items, subcontracted operations and yield, which are common sources of surprising roll-up results.

## Pitfalls

- Stale low-level codes producing wrong parent costs.
- Wrong or outdated work center rates.
- Updating standard cost mid-period without finance sign-off.
- Ignoring scrap and yield factors.
- Skipping the simulation review.
- Assuming cost field names from another ERP.

## Ai Angle

A grounded assistant can read the cost roll-up output and explain why a product's cost moved, by comparing old and new cost by element and listing the BOM and rate changes behind it. Netray builds this over XA data on-prem so cost data stays inside your network.

## Faq

### What is the difference between standard and actual cost?

**Answer:** Standard is a predetermined cost used for valuation and variance reporting. Actual is what was really incurred. The difference is variance.

### Why did a parent item cost not change after a BOM edit?

**Answer:** Costs change only when the roll-up is run, and the roll-up depends on current low-level codes. Re-run it after confirming those.

### Can I test cost changes safely?

**Answer:** Use a simulated or alternate cost set where available, review the results, and only then update the standard.

## Search terms

infor xa costing, mapics xa costing, infor xa cost roll up, infor xa standard cost, mapics product costing, xa cost types, bom cost roll up, infor xa inventory valuation

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