Override a volume

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To calculate volume-based costing, the initial volume is entered for the starting activity (i.e. the first activity in a diagram) and carried through the process, taking into account probabilities and feedbacks.

 

However, for some processes it may not be suitable to have the same volume type running throughout the process. For example, a process may involve envelopes, but half-way through a process the volume type may change to boxes of envelopes. In this case, the volume type will need to be changed for the relevant activities.

 

Note: If you refresh the costing data from a drill down and the start volume has been overridden, the volume is also refreshed in the activity that you are refreshing from a lower level.

 

 

1.Right-click the activity and choose Costing and then Values.

 

2.In the Volume panel select the Override volume check box.

 

Note: This option will not be available for the first activity in a diagram. You can only override the volume on the first activity by obtaining the volume from the drill down.

 

3.In the Volume text box enter a new value for the volume cost and, if required, choose a new time period from the Per drop-down list.

 

4.If the volume cost has changed then enter a new value in the Custom Volume Cost text box.

 

5.Click OK.

 

Note: If you want to override the volume on the first activity in a process, it must be obtained from the child diagram. To do this, right-click the first activity and select Obtain volume from drill down.

 

 

Ignore feedback calculations

 

Complications can arise if the volume is overridden midway through a probability feedback loop, for example where envelopes change to boxes of envelopes and a feedback loop is present later that feeds back to a part of the process before the volume type was changed. In this case you can ignore the feedback volume by selecting the Ignore feedback calculations check box. However, due to the potential problems, it is recommended that overriding the volume is avoided when a feedback loop is in place.

 

 

 

Related topics

 

Volumes

 

Defining start volumes