Indirect Costs Using a Costing Sheet in Microsoft Dynamics AX 2009

This document includes steps users can use to help understand how the Costing Sheet works.

1. Log into the Contoso Database or demo data for Microsoft Dynamics AX 2009.
2. Create a new Indirect Cost group called Lab_OH with a Name of Labor Overhead.
   • Go to Inventory Management, choose Setup, choose Bills of materials, choose Cost groups.
   • Create a new cost group called Lab_OH
   • Enter Labor Overhead in the Name field
   • Choose Indirect in the Cost group type field
   • Save the new Cost group
3. Go to the Costing Sheet
   • Go to Inventory Management, choose Bills of Materials, choose Costing sheet setup
4. Create a new Total Node Called Overheads
   • Go to Inventory management, choose setup, choose Costing sheet setup
   • Right-click the COGM node and then click Create
   • Select Total in the Node Type field and click OK
   • With the new Total node selected, on the Edit tab, mark the Header and Total checkboxes in the Setup field group
5. Create a new Cost group node
   • Right click the Total Node you just created and choose Create
   • Choose Cost Group in the Select node type field.
   • Call the new Cost Group Labor Overhead
   • Assign the Labor Overhead Cost group you created in step 2 to this node
     • On the Edit tab in the Setup field group, choose the Lab_OH Cost group
6. Create a Surcharge Node
   • Under the Costing group Node created in step 5, create a new Surcharge Node
     • Right-click on Labor Overhead and choose Create
     • Choose Surcharge in the Select node type field
     • On the General tab, choose Total in the Subtype field
     • On the Calculation Tab choose Manufacturing in the Code field
     • Under the Surcharge section at the bottom of the form, choose a Version in the Version field, choose a Site in the Site field and enter 50.00 in the Percent field
     • Save the Surcharge
   • Click on the Activate button to Activate the Surcharge
   • Under Posting Configure the WIP and costing accounts
   • Save the Costing sheet by choosing the Save button
7. Create a new production order for the Item 1171
   • Create an order for 1 unit
   • Estimate the order
   • Go to Inquiries, choose Price Calculation, then select Costing Sheet
   • Please note when you go to Overhead, then choose Labor overhead that the value is 50% of the Manufacturing cost, in this case for a production for 1 unit, this cost is going to be 3.33
8. Delete the Surcharge node and create a Rate node instead.
   • Highlight the Surcharge node and choose the delete icon.
   • Right-click on the Labor Overhead node and choose Create
   • Choose Rate in the Select node type field
   • Choose OK
   • On the General tab, choose Process in the Subtype field
   • On the Calculation tab, choose Manufacturing in the Code field
   • On the Posting tab, choose the WIP and Indirect posting accounts
   • In the Rate section at the bottom of the form
     • Choose a version in the Version field
     • Choose a Site in the Site field
     • Enter 50.00 in the Amount field
     • Save the node
   • Choose the Activate button
   • Save the Costing Sheet
9. Create a new production order for the Item 1171
   • Estimate the production order
   • Go to Go to Inquiries, then choose Price Calculation
   • Please note that the calculated overhead is $50*Process time for each operation with a cost category related to the Manufacturing Node. In this case it calculates out to be 19.64
10. Change the subtype of the Rate node to Quantity for 1 unit
    • On the General tab, choose Quantity in the Subtype field
    • Save the Costing Sheet
11. Create a new production order for the Item 1171
    • Estimate the production order for the Item 1171
    • Go to Inquiries, then choose Price Calculation
    • Note that the calculated Labor Overhead is $50*Quantity produced in each operation. In this case is going to be 100