Exclude consumption from periodic cost factor calculation
You can exclude specific items from the periodic cost factor calculation while still tracking their own periodic storage costs. This is useful for packaging materials or auxiliary items that are consumed in a production order but should not influence the distribution of storage costs to the finished goods output lot.
When an item is excluded from the factor calculation, the system sets the Factor field value to 0 for that item's Periodic Cost Line Entries. The item still generates its own periodic cost line and the Amount field value is calculated normally based on the configured trade plan rate. The Related Amount field value for the excluded item remains 0.00.
The Unit of Measure validation still includes items with the Exclude Consumption from Periodic Cost Factor toggle turned on. The toggle only excludes the item from the factor calculation and does not affect UoM validation.
Exclude an item from the periodic cost factor calculation
- Select the Search icon, enter Items, and then choose the related link.
The Items list page opens. - Select the relevant item.
The Item Card page opens. - On the Prices & Sales FastTab, turn on the Exclude Consumption from Periodic Cost Factor toggle.
The item is now excluded from the factor calculation. The system sets the Factor field value to 0 for this item in all subsequent Periodic Cost Line Entry calculations. The Amount field value continues to be calculated based on the configured trade plan rate and the remaining quantity of the lot.
The Exclude Consumption from Periodic Cost Factor toggle cannot be changed once the item has existing periodic cost lines, regardless of whether the Open field value is set to Yes or No. The toggle is locked in both directions. If you need to change the toggle value, remove the existing periodic cost lines for this item first.
How the factor is recalculated when an item is excluded
When one or more items in a production order are excluded from the factor calculation, the system recalculates the factor using only the non-excluded consumption item ledger entries. The following example illustrates this behavior.
| Item | Exclude Consumption from Periodic Cost Factor | Quantity consumed |
|---|---|---|
| RM-0001 | Disabled | 100 |
| RM-0002 | Enabled | 50 |
The system excludes RM-0002 from the factor denominator. The factor is calculated using only the non-excluded items:
| Lot | Calculation | Factor |
|---|---|---|
| LOT0001 (RM-0001) | 100 / 100 | 1.000000 |
| LOT0002 (RM-0002) | Excluded | 0 |
| Lot | Item | Amount | Related Amount |
|---|---|---|---|
| LOT0001 | RM-0001 | Calculated normally | Calculated based on Factor = 1.000000 |
| LOT0002 | RM-0002 | Calculated normally | 0.00 |