Additional cost setup in Infor LN, including machine cost
additional cost setup in infor ln
Also searched as
- infor ln machine cost
- infor ln machine rate
- infor ln surcharges and operation rates
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.
Applies to: Infor LN 10.x with Manufacturing and Costing in use. Session names vary by version.
Set up additional and machine costs
- 1Define the cost components you need (material, labor, machine, overhead, subcontracting, additional). Keep the structure small and aligned with financial reporting.
- 2Define machines and work centers in Manufacturing master data, with the capacity and the machine/labor split you plan to cost.
- 3Set operation rates for the work centers and machines: a machine rate and a labor rate, per hour, with validity dates.
- 4Define surcharges for overheads and additional costs, as a percentage or fixed amount, on the right base.
- 5Link the cost components to the item cost price structure and to the routing operations that consume machine time.
- 6Run the cost price calculation for a test item and check the breakdown by component before releasing to all items.
- 7Confirm production order costing posts the same components to WIP and variances.
Where machine cost comes from
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
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
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.
Try it here, free
Infor LN Standard Cost Rollup Calculator
Check a single level standard cost build up: material with scrap, setup spread over lot size, run time, labor, machine and overhead.
Common 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.
How an ERP-grounded AI assistant handles this
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.
Frequently asked questions
Why is machine cost zero in LN cost price?
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?
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?
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?
Yes, if you set rates at machine level and model machines in the routing. Keep it consistent with how you report.
Related
How to calculate item cost prices in Infor LN
Infor LN calculates an item's cost price by rolling up material, labor, machine, subcontract and overhead costs defined against cost components, using the item's bill of material and routing as the calculation base for manufactured items and purchase price for bought items. The calculation can run in simulation mode to preview the result or in update mode to actually change the item's standard cost, which then drives inventory valuation and variance reporting going forward.
How-toHow to close a financial period in Infor LN
Closing a period in Infor LN is not a single click; it requires clearing every module's outstanding integration transactions into Financials first, reconciling each subledger (AR, AP, inventory, WIP) to the general ledger, and only then closing the period through Periods and Fiscal Years, which blocks further posting to it. Skipping the reconciliation step and closing early is what causes stuck or orphaned transactions that have to be reopened and reworked later.
How-toHow to set up and run a project in Infor LN PCS
Infor LN's Project Control System (PCS) manages engineer-to-order and project-based work as a structured hierarchy: a project header, a work breakdown structure (WBS) of activities, a budget or estimate against that structure, and actual cost and progress booked back against the same elements. Getting the WBS and budget structure right before any transaction posts is what makes project cost reporting usable later.
How-toInfor LN Enterprise Planning Not Generating Planned Orders
When an item has demand but Enterprise Planning creates no planned orders, the cause is almost always planning master data: the item is not set to be planned, the planning horizon or time fences exclude the demand, the order policy or supply source is missing, or the planning run did not include the item. Check them in that order before suspecting the engine.
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