Model Cost Rollup Examples

All of the examples in this topic are based on the assumption that the 'Model Cost Rollup' flag is selected in Company Control Initialization (CC00/Inventory Control).

1. Model Consists of Fixed Components Only:

   In this example, the model product 'Z1' consists of fixed components only (Z2, Z3 and Z4). The model header and components are set up on two price lists: a Master Price list and an active Markup on Cost price list (USPECIAL). In this case, only the header is required to be set up on the USPECIAL price list as Markup on Cost.

   The price lists for the model and the components are set up as follows:

   Product	Sub-Assembly	Component Qty	Pricing Method	Method Value	Selling Price	Replacement Cost
   Master Price list:
   Z1 (header)	-	-	Fixed	-	150.00	0.00
   Z2	-	-	Fixed	-	35.00	15.50
   Z3	-	-	Fixed	-	25.00	14.50
   Z4	-	-	Fixed	-	20.00	12.00
   USPECIAL Price list:
   Z1 (header)	-	-	Markup on Cost	20.00	0.00	-
   Z2 (fixed)	-	3	Markup on Cost	30.00	20.15	-
   Z3 (fixed)	-	2	Markup on Cost	35.00	19.58	-
   Z4 (fixed)	-	2	Markup on Cost	40.00	16.80	-

   When an order is entered for the model, a price of $119.40 is calculated based on the replacement cost of the components which are then rolled up into the model header. In this example the markup on cost is calculated as follows:

   ((15.50 * 3) + (14.50 * 2) + (12.00 * 2)) = 99.50

   99.50 * 0.20 = 19.50

   99.50 + 19.90 = 119.40

   119.40 * ((1(price per unit value)/1(SKU unit value)/1.00(AR exchange rate)) + Upcharges = 119.40

   Here is an example of the model from an order in OE30:

   

2. Model Consists of Fixed and Variable Components:

   In this example, the model product 'Z1' consists of both fixed components (Z2, Z4) and variable components (Z3). The model header and components are set up on two price lists: a Master Price list and an active Markup on Cost price list (USPECIAL). In this case, only the header is required to be set up on the USPECIAL price list as Markup on Cost.

   The price lists for the model and the components are set up as follows:

   Product	Sub-Assembly	Component Qty	Pricing Method	Method Value	Selling Price	Replacement Cost
   Master Price list:
   Z1 (header)	-	-	Fixed	-	150.00	0.00
   Z2	-	-	Fixed	-	35.00	15.50
   Z3	-	-	Fixed	-	25.00	14.50
   Z4	-	-	Fixed	-	20.00	12.00
   USPECIAL Price list:
   Z1 (header)	-	-	Markup on Cost	20.00	0.00	-
   Z2 (fixed)	-	3	Markup on Cost	30.00	20.15	-
   Z3 (variable)	-	1	Markup on Cost	35.00	19.58	-
   Z4 (fixed)	-	2	Markup on Cost	40.00	16.80	-

   When an order is entered for the model, a price of $104.18 is calculated based on the replacement cost of the fixed components and the selling price of the variable component which are then rolled up into the model header. In this example the markup on cost is calculated as follows:

   ((15.50 * 3) + (12.00 * 2)) = 70.50

   70.50 * 0.20 = 14.10

   70.50 + 14.10 = 84.60

   84.60 + 19.58 = 104.18

   104.18 * ((1(price per unit value)/1(SKU unit value)/1.00(AR exchange rate)) + Upcharges = 104.18

   Here is an example of the model from an order in OE30:

   

3. Model Consists of a Fixed Component and a Sub-Assembly (included in base price):

   In this example, the model product 'Z1' consists of one fixed component (Z2) and a sub-assembly consisting of all variable components (Z3 and Z4). The sub-assembly is included in the base price of the model. The model header and components are set up on two price lists: a Master Price list and an active Markup on Cost price list (USPECIAL).

   The price lists for the model and the components are set up as follows:

   Product	Sub-Assembly	Component Qty	Pricing Method	Method Value	Selling Price	Replacement Cost
   Master Price list:
   Z1 (header)	-	-	Fixed	-	150.00	0.00
   Z2	-	-	Fixed	-	35.00	15.50
   Z3	-	-	Fixed	-	25.00	14.50
   Z4	-	-	Fixed	-	20.00	12.00
   USPECIAL Price list:
   Z1 (header)	-	-	Markup on Cost	20.00	0.00	-
   Z2 (fixed)	-	3	Markup on Cost	30.00	20.15	-
   Z3 (variable)	TMODEL	1	Markup on Cost	35.00	19.58	-
   Z4 (variable)	TMODEL	2	Markup on Cost	40.00	16.80	-

   When an order is entered for the model, a price of $102.00 is calculated based on the replacement cost of the components (fixed and variable within the sub-assembly) which are then rolled up into the model header. In this example the markup on cost is calculated as follows:

   ((15.50 * 3) + (14.50 * 1) + (12.00 * 2)) = 85.00

   85.00 * 0.20 = 17.00

   85.00 + 17.00 = 102.00

   102.00 * ((1(price per unit value)/1(SKU unit value)/1.00(AR exchange rate)) + Upcharges = 102.00

   Here is an example of the model from an order in OE30:

   

4. Model Consists of a Fixed Component and a Sub-Assembly (NOT included in base price):

   In this example, the model product 'Z1' consists of one fixed component (Z2) and a sub-assembly consisting of all variable components (Z3 and Z4). The sub-assembly is not included in the base price of the model. The model header and components are set up on two price lists: a Master Price list and an active Markup on Cost price list (USPECIAL).

   The price lists for the model and the components are set up as follows:

   Product	Sub-Assembly	Component Qty	Pricing Method	Method Value	Selling Price	Replacement Cost
   Master Price list:
   Z1 (header)	-	-	Fixed	-	150.00	0.00
   Z2	-	-	Fixed	-	35.00	15.50
   Z3	-	-	Fixed	-	25.00	14.50
   Z4	-	-	Fixed	-	20.00	12.00
   USPECIAL Price list:
   Z1 (header)	-	-	Markup on Cost	20.00	0.00	-
   Z2 (fixed)	-	3	Markup on Cost	30.00	20.15	-
   Z3 (variable)	TMODEL	1	Markup on Cost	35.00	19.58	-
   Z4 (variable)	TMODEL	2	Markup on Cost	40.00	16.80	-

   When an order is entered for the model, a price of $108.98 is calculated based on the replacement cost of the fixed component and the selling price of the variable components of the assembled set which are then rolled up into the model header. In this example the markup on cost is calculated as follows:

   (15.50 * 3) = 46.50

   46.50 * 0.20 = 9.30

   46.50 + 9.30 = 55.80

   55.80 + (19.58 * 1) + (16.80 * 2) = 108.98

   108.98 * ((1(price per unit value)/1(SKU unit value)/1.00(AR exchange rate)) + Upcharges = 108.98

   Here is an example of the model from an order in OE30:

   

5. Model with better Selling Price than Calculated Selling Price of Components:

   In this example, the model product 'Z1' consists of all fixed components (Z2, Z3 and Z4). The model header and components are set up on two price lists: a Master Price list and an active Markup on Cost price list (USPECIAL); the model header is also set up on an active flyer (UFLYER).

   The price lists for the model and the components are set up as follows:

   Product	Sub-Assembly	Component Qty	Pricing Method	Method Value	Selling Price	Replacement Cost
   Master Price list:
   Z1 (header)	-	-	Fixed	-	150.00	0.00
   Z2	-	-	Fixed	-	35.00	15.50
   Z3	-	-	Fixed	-	25.00	14.50
   Z4	-	-	Fixed	-	20.00	12.00
   USPECIAL Price list:
   Z1 (header)	-	-	Markup on Cost	20.00	0.00	-
   Z2 (fixed)	-	3	Markup on Cost	30.00	20.15	-
   Z3 (fixed)	-	2	Markup on Cost	35.00	19.58	-
   Z4 (fixed)	-	2	Markup on Cost	40.00	16.80	-
   UFLYER Price list:
   Z1	-	-	Fixed	-	115.20	-

   The selling price for the components based on the USPECIAL price list is $119.40 and the selling price on the Master price list is $150.00. The UFLYER price list for the model header 'Z1' is $115.20.

   In this example, the selling price used is $115.20 based on the UFLYER price list as this is a better price than the USPECIAL price ($119.40).

   Here is an example of the model from an order in OE30: