In this step you create keys that you can use to mark BOM items or the material components in a work order and the operations or suboperations in a standard task list or work order as relevant to costing.
In the standard system, the indicator X is linked to the factor one (fully relevant to costing) and a blank indicator is linked to the factor zero (not relevant to costing).
If you want to devalue an item in costing, you can define additional relevancy to costing indicators and link them with factors for a percentage devaluation. These factors are only used in inventory costing.
In standard cost estimates , modified standard cost estimates, current cost estimates, and order cost estimates, items with a relevancy to costing indicator are always treated as fully relevant to costing - no devaluation takes place.