Basis Types

Basis Types

(a)    Basis types determine how costs are assigned to the item.

(b)   Basis types are assigned to subelements, which are then assigned to the item.

(c)    Each subelement must have a basis type. Examples: one hour of outside processing per basis item, two quarts of material per basis lot.

(d)   Basis types are assigned to subelements in three windows and, for the overhead subelement, a setting established in one window may not always be applicable in another. (This refers specifically to the overhead subelement, not the material overhead subelement.)

Basis types in Subelement and Routing Windows

(a)    Basis types assigned to subelements in subelement and routing windows are the defaults for the purpose of routing.

(b)   Basis types Resource Units and Resource Value, when assigned to an overhead subelement(Routing only in the table below), are available to flow through to routing, but are not available in the Item Cost window.

Basis types in the Item Cost window

(a)    When you are defining item costs, for any overhead subelement with a previously assigned basis of Resource Units or Resource Value, that basis is ignored, and only item or lot appears in the basis pop-up window.

(b)   This does not change the assigned basis for the purpose of routing.

Basis Types Available to Subelements

Basis Type	Material	Material Overhead	Resource	Outside Processing	Overhead
Activity	N/A	Yes	N/A	N/A	N/A
Item	Yes	Yes	Yes	Yes	Yes
Lot	Yes	Yes	Yes	Yes	Yes
Resource Units	N/A	Yes	N/A	N/A	Routing Only
Resource Value	N/A	Yes	N/A	N/A	Routing Only
Total Value	N/A	Yes	N/A	N/A	N/A

Item

(a)    Used with material and material overhead subelements to assign a fixed amount per item, generally for purchased components.

(b)   Used with resource, outside processing and overhead subelements to charge a fixed amount per item moved through an operation.

Lot

(a)    Used to assign a fixed lot charge to items or operations.

(b)   The cost per item is calculated by dividing the fixed cost by the item's standard lot size for material and material overhead subelements.

(c)    For routing steps, the cost per item is calculated by dividing the fixed cost by the standard lot quantity moved through the operation associated with a resource, outside processing, or overhead subelement.

Resource Value

(a)    Used to apply overhead to an item, based on the resource value earned in the routing operation.

(b)   Used with the overhead subelement only and usually expressed as a rate. The overhead calculation is based on resource value:

Resource value earned in the operation x overhead rate

Resource Units

(a)    Used to allocate overhead to an item, based on the number of resource units earned in the routing operation.

(b)   Used with the overhead subelement only. The overhead calculation is based on resource units:

Resource Units Earned In An Operation X Overhead Rate Or Amount

Note: You may optionally use resource units and resource value to earn material overhead when you complete units from a job or repetitive schedule.

Total Value

(a)    Used to assign material overhead to an item, based on the total value of the item. Used with the material overhead subelement only. Material overhead calculation is based on total value:

Activity

(b)   Used to directly assign the activity cost to an item. Used with the material overhead subelement only. The material overhead calculation is based on activity:

Activity occurances / # of items X activity rate