Costing Sheet Setup

In my last blog I discussed the setup of,

  • Cost Groups
  • Costing Versions
  • Calculation Groups

In this blog I’m going to discuss setup of Costing Sheet

After the completion of the setup of above, the next step is to setup costing sheet

Costing sheets are used for calculation of indirect cost and it displays the information for the manufactured item or production order in accordance to the cost group break-up. As a matter of fact you can only setup one cost sheet per AX company.

For that Go to-Inventory Management-Setup-Costing-Costing Sheets


On the Root node Right click-Create

Under Setup-Type

Select-Cost of Goods Manufactured.

Enter a Code and Description





Check Header to display line as header

Check Total to display line as total. The total indicates that this node is going to be used to total all the underlying costs. Finished goods cost may comprise of the following:

  • Direct material cost
  • Direct manufacturing cost
  • Indirect cost

I am going to discuss how to setup each type of cost as following:

  • Direct material cost

The source of direct material is the production BOM or formula. It is the cost of the raw material used in the BOM or formula.

Now, I am going to show you how to setup the total direct material cost in the costing sheet.

Select the COGM node created above and right click on it. Then select ‘Create’ from the options.

Create a total node as above and give this node an appropriate name like ‘Materials’ for example.

Now, select the ‘Materials’ node and right click. Create a new node of type cost group. Provide the appropriate name to the node like ‘COGM-M’ for example. Select the appropriate cost group under setup field group. Since you are currently accumulating the direct material cost that’s why it is recommended to add the cost group of type direct material only.

Repeat the above step for each and every direct material cost group you want to track on your costing sheet.

  • Direct manufacturing cost

The source of direct manufacturing cost is the configured production route for the BOM or formula items. The cost is calculated based on cost categories and times configured on production route or entered as part of the route card or job card journals.

The steps required to configure the manufacturing cost is same as explained above. The only difference is that the cost group of type direct manufacturing must be selected.

  • Indirect cost

Indirect production cost can only be setup and calculated through costing sheet only.

Create the total node like previous and assign it a meaningful name like ‘Overheads’ for example.

In Microsoft Dynamics AX overheads can be calculated as either surcharge or rate. Surcharge are specified in terms of % and can only be applied to the direct material cost nodes. Whereas rate is specified as amount and can only be applied to the direct manufacturing nodes.


Here I have selected Surcharge



On the Edit tab-Calculation

Select code and subtype

This forms calculation basis of surcharge


On the bottom left on the surcharge tab select a costing version

On the Edit tab-Posting

Select the ledger accounts to be used for posting


Now we’ll see how does a costing sheet appears

Go to-Inventory Management-Common-Bill of Materials

Select a BOM and click Calculation



Then select a costing version and click ok


Now on this page click Summary


Summary Calculation Inquiry form appears


You can also see graphical view of the costing sheet by switching to Graphics tab


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