BCO Administration Settings

Before you start with BCO, it is important to have the administration settings correct. On the Price Structure tab you will find the settings that are relevant for the BCO design. Of particular importance are the settings about Coverage and Operations.

 


On the Price Structure tab, review what it says and why certain choices were made. You can find this tab in the Administration Settings under General. Assessing the price structure in MKG is part of a step-by-step plan for setting up BCO. This article describes step 1.


 

Coverage

Coverage or not? At a coverage rate of 0, the operating costs are covered by the total operating costs/direct machine hours. What is not on the production order will have to be booked in the costs. After all, you want that covered. Transport costs for example:

  • Not on the order? Then include it in the hourly rate.
  • On the order? Then in the costs, because you want to cover it.

If you want to add certain percentages or a margin, use the ‘Material’ column or the row ‘Commercial %’.

 

Operations

  • Recommended Operation Rate:
    • Billable Rates = no link between cost price and sales price
    • Net + Coverage + Surcharge = there is a link between cost price and sales price

We advise you to choose the option 'Billable Rates'. We advise billable rates not to work with cover.

  • Cost Price:
    • Net + Coverage
    • Billable Rates

We advise you to choose the option 'Net + Coverage' because otherwise the cost price is equal to the operation rate.

 


Administration Settings

  • General > General > Price Structure

 

Choices for settings are made and recorded during the implementation process. Changes in this can have far-reaching consequences. Therefore, only make changes under the guidance of an MKG consultant or the MKG Helpdesk. Authorization of the administration settings is recommended so that no unexpected changes can occur without the knowledge of the system administrator.