Planned Cost Explosion Modes

D365 F&SC Tip of the Day: In Microsoft D365 Finance and Supply Chain (D365 F&SC), in Cost Management, when setting up a Planned Cost in Costing Versions, have you been puzzled about the Explosion Modes? To learn more, click the link below.

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Planned Costs

A costing version can contain a set of planned cost records about items and manufacturing processes.

A costing version that contains planned costs is often used to support cost calculation simulations, such as simulations of the effect that cost changes to purchased materials or manufacturing processes have on the calculated costs of manufactured items.

You can also use item cost records for planned costs to support an actual cost inventory model by providing the initial values for item costs. These values include the calculation of planned costs for manufactured items.

To create a Planned Cost, go to Cost management > Predetermined cost policies setup > Costing versions.

On the General tab,

If Block Changes is set to Yes, that means that the New option is greyed out and the user cannot add a new Pending Price (cost).

If Block Activation is set to Yes, that means that the Active Pending Prices option is greyed out and the user cannot activate Pending Price (cost).

On the Recording tab, you can define From Date, a default Site and turn on or off the ability to use the costing version for purchase price, cost price, and sales price.

The Explosion mode in a costing version determines how the levels in a BOM affect the cost calculation.

You can select one of the following explosion modes:

· Multilevel - The calculated cost reflects a complete recalculation. Each sub-BOM is calculated instead of just taking its current cost.

· Make to order - Resembles Multilevel (a complete recalculation), except that the specified quantity is used to amortize constant costs.

· Single level - The standard costing version is restricted to a single level, which ensures accurate and consistent calculation of standard costs. For this explosion mode, the calculated costs of first level manufactured components are applied.

· According to BOM line type - The calculation depends on the BOM line type. For example, if the type is Item, the current cost is taken.