Cost Value Types
Cost Value TypesA part may have different types of costs for any given Cost Provider and Location/Subsupplier combination:
Target -- budgeted amount or objective, often from an overall budget for a module or product, set to meet business objectives. Target costs are usually created for modules, subsystems, or systems, not for individual parts.
Estimate -- amount Lexmark expects a part should cost; may be the result from an estimating tool that averages multiple estimates from different suppliers. Estimates are created for individual parts and are rolled up to find module or product estimate totals.
Quoted -- cost of a part that Lexmark receives from a supplier (Cost Provider).
Working -- cost of a part that a program Cost Lead uses in negotiations with a supplier. Amount is close to an Estimate or Quote.
Actual -- cost of a part that is used to issue a Purchase Order; or when a PO is not issued, the final, Agreed Upon Quoted Cost.
When costs become more definite, create a new cost of a different type.
Examples (your business processes may vary):
After Targets, create Estimates
After Estimates, create Quotes (may be created in the system by the supplier)
After Quotes, create Working (if negotiations are involved)
After Working, create Actual (when negotiations are complete)
After Quotes, create Actual (when quoted cost is accepted)