Formulas are used in costing, scheduling and capacity requirements planning. You can define your own formulas in the R/3 System.

Formulas are used to calculate:

• Costs
• Processing times in the process order
• Capacity requirements

In the R/3 System, you can

Formulas for calculating costs allow you to cost operations carried out at the resource. They determine how the calculation is to be carried out.

The time required for an operation in a process order is calculated in scheduling using the processing time formulas.

When you enter formulas for calculating the internal processing time, the system checks whether the dimension of the formula result is "time".

A formula can be assigned to every resource capacity to calculate capacity requirements.

The following graphic shows the relationships between the resource, recipe, and formulas for costing, scheduling, and capacity requirements determination. The formula parameter in the formula for the resource receives its values from Customizing (formula constants), the resource (resource constants) and the recipe (standard values, general operation data, and user fields).