Using different cost rates for setup and production

Below, I will describe how to maintain different cost rates for the same equipment resource in a ‘Setup’ or ‘Produce’ activity of a production order.

Starting point: Resource has been set up with resource cost rates:

Step 1:  Delimit resource cost rates in the valuation tab of the resource using the ‘Delimit’ action:

Only in case the cost rates are delimited the system will use the service cost rates of the resource instead:

Step 2: Maintain two service products (one for setup, one for produce) and assign the relevant cost rates. In our example I have used the following service products:

S200001: Setup       10 USD / 1 hour

S200002: Produce   50 USD / 1 hour

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Step 3: In the resource master on the ‘Services’ tab add two rows using the service products and assign them to the activity type ‘Set up’ and ‘Produce’ as shown.

Step 4: Create a new BOO with a setup and a produce activity. Important: you have to assign the correct activity type. Use the respective equipment resource as main resource.

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Step 5: Finally create a new production model. Below you can find the results as displayed in the ‘Production Lots line items report’ of WoC ‘Inventory Valuation’. As you can see the respective cost rates are taken from the service products and not from the resource cost rate.