“Accurate cost rollups are the foundation of profitability. Every detail counts when understanding the true cost of production.”
Cost rollup is an essential part of manufacturing cost accounting that calculates the total cost of producing an item by aggregating raw materials, purchased components, labor costs, manufacturing overhead, and subcontract costs.
Several components affect the accuracy of the item cost, such as the bill of materials, routings, scrap and yield factors, work center rates, and purchased item costs. The accuracy of the manufactured item cost depends on the accuracy of all these components and the frequency with which the costs are updated. However, the cost preparation process should not directly affect inventory values or other accounting figures. You need the time and flexibility to calculate the cost and review it before it comes into effect.
Several cost-related functions in QAD form the cost process. Some functions allow you to update costs directly, and these immediately impact inventory values. Another function set enables you to run simulation cost rollup without affecting inventory values. There are risks and disadvantages involved in using both direct and indirect functions. You can find out more about these in this webinar, Cost Rollup Precision: Improve Accuracy & Efficiency.
To minimize and sometimes even eliminate these risks and disadvantages, 32 Soft created the Cost Rollup Data Loader that provides a convenient interface to the cost rollup functions in QAD.
Our Cost Rollup Data Loader empowers you to be accurate, efficient, and proactive in cost assessment for the products you manufacture. It combines multiple QAD cost calculation functions into a single tool.
- You can select items for cost calculation, saving you tons of time.
- You can perform cost rollups based on source cost, routings, and BOMs.
- The Loader includes 30.15 Cost Maintenance functionality, so you can prepare new or modify existing source cost sets.
- You can prepare forecasted (or multiple) simulation costs of materials, run what-if scenarios for the cost of the finished products, and upload that data to QAD.
- Most importantly, the detailed reports let you see cost differences at various product levels to make informed and quick decisions about cost updates.
The Cost Rollup Data Loader has a user-friendly interface that allows easy navigation and safe update of a large number of records to QAD. It gives you the ability to simulate cost changes and their impact on final product costs. And, it is flexible. You can run cost rollups as often as needed and perform cost calculations on demand.
