Cost Rolling to standard automatically

carsto00

Member
First, I'll say, I'm am not a JDE user nor am I an accountant, but my position is responsible for the costs in the system. It has come to my attention that when a change is made to Component A's routing, which changes it's cost, the Simulated cost of Component A changes but the frozen (standard) does not until the user rolls and freezes it. However, if you then freeze the Standard Cost on the Parent Part that has Component A in it's BOM, Component A will automatically be rolled and frozen to the simulated costs! The way JDE is working the standard cost is meaningless, as every time a new assembly is created the Standard Cost of it's components are potentially being automatically reset! Is this JDE's design on do we have options set to cause this to happen? This is unlike any system I have ever dealt with. JDE's Simulated cost is what I would call a Current Cost but it should not be the Standard Cost for the remainder of the year. In previous systems I've worked with you always have to roll from the lowest part up if you want all Current Costs captured. A Standard Cost is golden and is not to be changed at whim.
 

Vic Clarke

Member
The Simulated Cost is just that, it is the result of the SIMULATED Cost Rollup
Only when you run the Freeze program does the Simulated cost become the new Standard for both Parent items and Components.
When you make a change to Component A's Routing the cost of A does not change until you run the Simulated Rollup and then it's Standard Cost does not change until you Freeze Component A
Just because the Routing changes is not a reason to Simulate and Freeze component A let alone the end items that A is used in.
The change to the Routing since the last Simulation & Freeze will create Manufacturing Variances which is correct.
You choose when you Simulate & Freeze the Parent item - when you do so Component A will of course be included in the Parent items cost - this is the point of Simulating & Freezing the Parent such that you have a more realistic Standard Cost for the Parent.
Depending on you business you may only Simulate & Freeze costs every 6 months or so unless there is clearly a costing error in which case you may run for just the Parent in question.

Your options are to control when you run the Simulation and more to the point the Freeze programs which are completely independent of each other.
If you don't want to change the Standard for the year then don't run the Freeze and probably no need to Simulate unless you want to see what the difference between the cost as per you Current BOM & Routing and the existing Standard.

Regards - Vic Clarke
 

carsto00

Member
The problem is we add new assemblies every day, which we have to freeze. (everything we sell is custom structures from standard components). Consequently the components are refreezing every time we create a new parent part. I looking for a way to stop these components from refreezing.
 

sselman

Well Known Member
Check your version processing options on R30835. Processing Tab. Setting 2 Single Level.

Single Level

Alias: S3083503
Use this processing option to specify whether the system performs a complete cost rollup in a bill of material or updates only the cost for a selected item or items without updating the other costs. For example, you might have a new item to cost, although you do not want to recost the other items. After you create simulated costs for the new item, you can update its frozen costs without updating the costs of lower-level components. Valid values are:

Blank
Perform a complete cost rollup.

1
Perform a single-level cost rollup.
 
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