Trust your cost estimates' precision with Beas Precalculation

Ever faced the challenge of estimating production costs before starting to manufacture a product? It’s a common problem in the manufacturing industry: the need for precise cost estimates to avoid surprises and ensure profitability. This is where the Precalculation function in Beas Manufacturing comes in, offering a reliable solution to help you anticipate the various costs involved in your production process.?

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The Value of Precalculation?

Before committing to production, you want to be confident in your cost estimates. The Precalculation function allows you to create detailed price lists or customized items by accurately calculating material and labor costs. This function is particularly valuable for make-to-order production, new product manufacturing, bid submissions, and market price assessments. By using Precalculation, you can avoid unexpected expenses and ensure that your pricing strategies are both competitive and profitable.?

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How It Works?

The Precalculation function leverages settings from the item master data, Configuration wizard, and Calculation schema, which includes definitions for surcharges and WIP (Work in Progress) bookings. These settings are displayed in separate lines within the Precalculation structure, providing a comprehensive overview of all costs. It summarizes predefined values such as material processing, labor and machine costs, shipping costs, profit margins, and external costs, culminating in an estimated sales price for the item.?

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There are three different ways you can access it:??

• By opening the "Precalculation" function in the Sales area of the SAP menu?

• In the Item Master Data calculation settings?

• In the right-click menu of an SAP Business One Sales Order/Quotation? ?

This function also allows for batch analysis and production costing analysis, making it a versatile tool for detailed cost estimation.?

Post-Calculation: Assessing Accuracy?

After completing your product’s manufacturing, the Work order Postcalculation function in Beas allows you to compare planned and actual costs. This comparison provides a detailed report, highlighting any discrepancies and offering insights for future cost management.?

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Conclusion?

The Precalculation function in Beas Manufacturing is a powerful tool for obtaining accurate cost estimates before production begins. It helps you anticipate expenses, set competitive prices, and ensure profitability. By understanding and utilizing Precalculation, you can navigate the complexities of manufacturing costs with confidence.?

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Would you like to learn more about Precalculation and how it can help you enhance your manufacturing process? Have a look at this in-depth video to see it in action and explore all its capabilities: Beas Precalculation Module - Introduction - YouTube?

If you have any questions or comments, don’t hesitate to reach out to us and stay tuned for upcoming articles.?