2463391 - Material Cost Estimate Is Not Considering The Number of Resources Maintained In The Released Execution Model

You've executed a Material Cost Estimate and for a certain Service ID valuated you understand that the Result (Cost Estimate) is not correct.

You expected the calculated Result to be multiplied by the Number of Resources maintained for the respective resource in the Released Execution Model, but this didn't happen.

1. Go to Inventory Valuation work center
2. Go to Material Cost Estimates view
3. Search for the respective material and click over its Cost Estimate Result

Under Service Items section, for a certain Service ID you understand that the Result calculated is not correct.

You expected the Result to be multiplied by the Number of Resources defined for the concerned Resource ID in the Released Execution Model (REM).

For example:

In the Material Cost Estimate you have a service valuated with Valuation Method Service Cost Rate where the cost rate is 20,00 USD/h.

Following a REM where the Number of Resources = 30 for the respective resource and Variable Duration of 00:05:00, you expect the service cost estimate to be 20,00 USD/h (cost rate) * 2,5h (variable duration multiplied by number of resources, in hours) * 30 (number of resources) = 1.500,00 USD.

However, the calculation done by the system is different. The service cost estimate calculated is only 20,00 USD/h (cost rate) * 2,5h (variable duration multiplied by number of resources, in hours) = 50,00 USD.

Using the previous example, the system considers that each resource will work for 5 minutes, and that together they will work for 150 minutes (2,5 hours), and not that each resource will work alone for 150 minutes (2,5 hours).

This is why the Result is not multiplied by 30 again.

The system behaves as expected and the Material Cost Estimate is correct.

KBA , SRD-FIN-INV , Inventory , How To