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

Set up and run a cost roll-up

1. 1Ensure item master data is complete: costing method, unit of measure, and purchased item costs.
2. 2Confirm BOM structures are accurate, effective and with correct quantities and scrap.
3. 3Confirm routings, work center rates, setup and run standards and overhead or burden rates.
4. 4Choose the cost type to update and decide whether this is a simulation or the standard cost update.
5. 5Run the roll-up from the lowest level to the top, using the low-level codes.
6. 6Review the cost by element (material, labor, overhead) and compare with the old cost.
7. 7Investigate items with large changes before accepting them.
8. 8Freeze or update standard cost at a defined time and record the inventory revaluation impact.

How the roll-up works

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

Common 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• !Wrong or outdated work center rates.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.