Internal categories
Category hierarchy fields and cost allocation method options.
Internal Categories organize inventory items into a tree structure and are the primary vehicle for configuring cost allocation. See Cost Allocation for why the methods exist, and Configure usage costs for setup steps.
Fields
Section titled “Fields”| Field | Description |
|---|---|
| Name | Category name (e.g., Indexable Inserts, Solid Carbide End Mills, Hydraulic Chucks). |
| Parent Category | Parent in the tree. If blank, this is a root category. |
| Usage Costing Method | The cost allocation method for items in this category. Required on a root category; optional on a child category — see below. |
| Usage Rate | The numeric parameter for the selected method (flat rate amount, or percentage rate). Required on a root category; optional on a child category. |
Cost allocation methods
Section titled “Cost allocation methods”| Method | Usage Rate Meaning | Posts |
|---|---|---|
| Fixed Rate | Flat amount (in base currency). | Once per pick to a machine. |
| Unit Cost x Usage Rate | Decimal percentage of the item’s current unit cost (e.g., 0.02 = 2%). |
Once per pick to a machine. |
| Purchase Price x Usage Rate | Decimal percentage of the item’s purchase price. The posted amount is capped at the unit cost. | Once per pick to a machine. |
| Usage Time x Usage Rate per Hour | Amount per hour (in base currency). | Automatically once per day, for each hour the item remains on a machine. |
The Item form lists the same four methods as Fixed Rate, Unit Cost x Usage Rate in Percentage, Purchase Price x Usage Rate in Percentage, and Usage Time x Usage Rate per Hour, plus a blank option, Following categorical hierarchy, that keeps the item inheriting from its category.
Inheritance
Section titled “Inheritance”Usage Costing Method and Usage Rate resolve up the category tree, each on its own:
- A root category (no Parent Category) must set both.
- A child category can leave either blank. A blank value is taken from the nearest ancestor category that sets it.
- An Item set to Following categorical hierarchy uses the method its Internal Category resolves to, and an Item with a blank Usage Rate uses the rate its category resolves to.
Item-level values always win over category values.
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