Manage periodic costs

You can configure trade plans and trade plan rates for periodic costs, ensuring accurate allocation of time-dependent costs, such as cooling and ripening. The system calculates periodic costs and distributes these costs across purchase and transfer receipt lots daily using a factor-based allocation. The factor is determined by the consumption quantity of each receipt lot relative to the total consumption quantity for the production order.

The system supports the following periodic cost scenarios:

• Production output: The system traces daily storage costs from the finished goods output lot back to the originating purchase and transfer receipt lots. For more information, see Periodic cost for production output.
• Recursive production: The system extends the factor calculation through multiple production levels when a finished goods output lot is consumed as a raw material in a subsequent production order. For more information, see Periodic cost for recursive production.