Business Central Routing and Production BOM Cost Worksheet
Before you enter routings in Business Central, work out the numbers in a sheet. This worksheet computes the cost per unit and per lot for each operation from setup time, run time, lot size and work center rate, then totals the routing.
| Operation No. | Work center | Description | Setup time (min) | Run time per unit (min) | Lot size | Rate per hour | Cost per unit | Cost per lot | |
|---|---|---|---|---|---|---|---|---|---|
$1 | $140 | ||||||||
$5 | $1,055 | ||||||||
$0 | $79 | ||||||||
$1 | $101 |
Cost per unit = (setup / lot size + run time per unit) x hourly rate / 60. This excludes scrap, material and subcontract cost; add those in your BC cost roll-up. Rates should match the work center unit cost you plan to enter in BC.
Routing and costing review
Get your routing structure and costing setup reviewed against how your shop actually runs. Optional.
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How to use it
Add one row per routing operation. Enter the work center code, setup time and run time per unit in minutes, the lot size and the hourly rate for the work center. The sheet shows cost per unit and per lot, and totals the routing. Change the lot size in a row to see how setup is amortised: small lots make setup dominate the unit cost, large lots make run time dominate.
How it maps to Business Central
In BC a routing is a header with routing lines, each line pointing to a work center or machine center and carrying setup time, run time, wait time and move time with their units of measure. Work centers hold the unit cost, overhead rate and capacity. A production BOM holds the component lines; the routing holds the operations. When you certify both and attach them to the item, the standard cost roll-up combines material, capacity and overhead cost. This sheet reproduces the capacity part so you can check the result.
- Run time in BC is per unit of the routing base quantity, so confirm the unit of measure
- Wait time and move time affect lead time but not capacity cost
- Scrap percentages increase material and capacity needs
Reading the results
Compare cost per unit across operations to find the expensive steps. In the example, turning dominates because both the run time and rate are high. If one operation has a large setup, look at lot size or setup reduction before negotiating rates. Use the total per lot to sanity check against the standard cost you expect on the item card.
Common mistakes
Mixing minutes and hours is the most common error; BC stores a unit of measure per time field, so verify each. Another mistake is entering a rate that includes only direct labour when the work center should carry overhead as well, understating the standard cost. Also remember that capacity constraints and calendars affect scheduling, which this sheet does not model.
Frequently Asked Questions
Does this replace the BC standard cost roll-up?
No. It is a planning check for the capacity cost of routing operations. The BC roll-up also includes materials, subcontracting, scrap and overhead rules from your setup. Use this sheet to validate inputs before you certify routings.
How should I handle machine centers and work centers?
Treat each machine center as its own row with its own rate and times if cost differs. Work centers group machine centers and capacity. Use whichever level your routing lines reference in Business Central.
What lot size should I use?
Use the typical production order quantity or the lot size defined for planning. Setup cost per unit depends on it, so test a few values to see sensitivity. Costing in BC uses the routing quantity logic in your cost setup.
Can I include scrap?
Add scrap as an adjustment outside this sheet or increase run time to reflect yield loss. In BC you can set scrap percent on routing lines and BOM lines; it increases required quantities and affects expected cost.
Netray can compare planned routings against actual capacity ledger data in your ERP and flag drift. Ask if you want routing accuracy reviewed.
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