About BOM calculations that use the fallback principle

Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Bill of materials (BOM) calculations that use cost records in a single, specified costing version do not use a fallback principle. However, BOM calculations that use another costing version or active cost records as a fallback principle can be useful in certain situations. The fallback principle indicates an alternative source of cost data if there is no cost data in the specified costing version. The following situations illustrate two uses of the fallback principle:

  • Two-version approach to standard cost updates – A costing version can contain the incremental changes to standard costs, such as pending cost records that represent new items or cost changes. In this situation, the fallback principle can identify the use of the active standard costs that are contained in other costing versions.

  • Simulating the effect of cost changes with planned costs – A costing version for planned costs can contain incremental changes for simulation purposes. This costing version would include pending cost records that represent the simulated cost changes to items, cost categories, and calculation formulas for indirect cost. In this situation, the fallback principle can identify the use of the active standard costs that are contained in other costing versions.

See also

About managing standard cost updates

About simulating cost changes by using a costing version for planned costs

About BOM calculations