Inventory Valuation based on Sales Order Costing

Dear All
My client requirement is the inventory value should happen based on the "Sales Order Cost Estimate"
Kindly give the configuration steps, if it is possible in SAP
Regards
Anilkumar

Hi rback59,
The information you have provided is very clear and accurate. Thank you. I am hoping that you can assist with a related problem I am facing: 
We have sales order costing in place with the Material Ledger and multiple valuation. For financial reporting purposes, we have a legal valuation/local currency variant entered in our requirements class (46) and we are using this to value our sales order stock. The problem we are facing is that the requirements class allows us to enter only one costing variant. This means we are not able to create a cost estimate for our two additional valuation views (group and profit centre). As a result, we are forced to use the material standard price in the material master for the group and profit centre views which is not ideal.
Do you know if there is a way to create cost estimates in all 3 valuation views for a single sales order line item?
Any pointers would be appreciated.
Thanks,
Ross

Similar Messages

  • Valuation Strategy for Sales Order Costing

    We are currently using valuated sales order stock in ECC 6.0. The "without valuation strategy field" on the requirements class is not checked. However, the valuation strategy varies for a material and for a sales order. Sometimes it is using valuation strategy 2 - cost from the production order cost estimate - which is desired and other times valuation strategy 3 - cost from the standard price field in the material master - which is not desired. When is the valuation strategy determined for a production order for valuated sales order stock?

    Costing Variant is assigned to Requirement class
    Requirement class is assigned to Requirement type
    Requirement type is assigned to Planning Strategy
    Planning strategy is assigned to strategy groups
    Strategy group is assigned to MRP3 tab in Material Master
    System picks the costing sheet in requirement class
    In this way product will be costed for Make to Order sale order costing.
    Srinivas

  • Cost of Inventory for Special Stock- (Sales Order Stock)

    Dear All,
    We manufactures "x" materail under Make to Stock and Make to Order Scenarios. We carried the standard cost estimate through CK11N and released through CK24N. There is a value of "X". Also we carried the sales order cost estimate that is value "Y". But we have observed the inventory value updated during confirmation of the production is at "Z" value. We have identified this Z value is the value of special stock previous periods.
    I would like to know the procedure of valuation of inventory under scenarios
    Regards
    Anilkumar

    Hi,
    thanks for your info.
    Can i say the changes will be done for those special stock.?
    Actually my problem is related to a Return Sales order process where we need to change the MAP before DO and GI, otherwise the Material document would not capture the correct MAP during GI.
    and the solution from the senior is select the variance "special stock -Sales order" and enter the sales doc# in MR21.
    The problem that we are not yet having any special stock for this return Sales order, but this MR21 works for us and after that, the material document is able to capture the correct MAP.
    Any idea what or where the MR21 is updating for the "Special Stock-Sales order" if we don't have any Sales order stock for the paticular sales document?

  • Non Valuated - Sales order costing

    Hello All,
    We are planning to use Non Valuated - Sales order costing for our client. My understanding is as follows :-
    1. Production order is automatically created from Sales order created (for ex item 010 - Material X) : Production order 1
    2. Sub- production order is also created if there is material Y , in the BoM of Material X & needs production : Production order 2 (linked to Production order 1).
    3. When GR is done on any on these production orders - no FI entry is posted.
    4. On settlement value of Production order 2 is settled in Production order 1.
    5. Further Production order 1 value is flow to Sales order line item 010
    6. Revenue is generated from Sales order for this item, when Invoice is posted. Still not COGS for delivery.
    7. And only on settlement of this Sales order : FI posting is done for COGS.
    Please let me know whether my understanding is correct point wise. Thanks
    Now I have few questions to clarify, in above example :-
    1. Generally these are new product (Material X) hence no standard cost is available for them. When does the cost estimate happens in such scenario. Is it when the first GR of material will happen ? When do I start see this cost estimate in Sales order.
    2. Till the time Production order 2 & 1 are not settled ... Do we see WIP at the production order level when we run WIP calcualtion for production orders ?
    3. What about the variances ? I have read variance calculation is not possible. Can you please elaborate why & what is avilable other than that ?
    Thanks in advance for reading a long query

    Hi Rajeshwari
    1. If you use ABC - Then COGS split wont be available
    2. Main diff between Valuated and Non val stock - Is once you produce and till you sell, the stock will appear in your balance sheet....
    Non Val shud be chosen whe you make a material completely customized to the needs of a customer and the time lag between mfg and sale is very less....
    If above two are not the case, then stock must be non valuated
    3. Implementing the same template or introducing Val Sales order stock depends on the business needs.... The criteria to decide shud be based on (2) above
    Also, if the new business where you are implementing now is the same as the existing business which is using non valuated stock, then you shud stick to the same template
    4. Sales order cost estimate gets created during creation of SO, using the costing variant specified in req class... Not created during GR
    5. Sales order costing does not make sense during Non Val Stock.... Unit Costing or prel costing you use during val Stock
    Unit costing means you dont want to maintain a BOM... And you specify the components during sales order costing
    6. I dont think you can settle prod order 2 to SDI.. You can try to change the settlement rule... In my opinion, you can not do it
    Regards
    Ajay M

  • AFS grid value/valuation type not picked in sales order cost estimate

    Hi Experts,
    We have different valuation types in the material master. This is part of the AFS, where each grid value is a valuation type. While making a sales order cost estimate and in one sales order item, we have 3 grid values (valuation types), system is costing only for one grid value and that too for the entire quantity. This way the costing is wrong as different grid values have different BOMs and routings.
    Is there any specific setting to have the grid value to be picked up in the sales order cost estimate? Or am i missing some setting? in general product costing settings or AFS product costing settings?
    Best Regards
    Vimal

    Hi,
    Do you mean "sales order costing", please  if so then please ref. the link:
    http://help.sap.com/saphelp_46c/helpdata/en/90/ba6da4446711d189420000e829fbbd/content.htm
    Regards
    DSR
    Edited by: D.Srinivasa Rao on Nov 25, 2011 8:19 AM

  • Sales order costing and valuated sales order stocks

    SAP Gurus
    Can somebody explain the key configurations and account postings in sales order costing and valuated sales order stocks in product costing using the specific tcodes.How the process moves from one configuration to the other?
    Use of examples will be appreciated too
    Thanks

    hi rback59
    Thanks  for  your valuable reply
    i completely agree with your point regarding valuation . but want to know what is the impact of recosting of a sales order . as system only picks first goods receipt cost all the time . then what is the use of recosting ?
    Thanks
    Sachin

  • Sale order costing process : Help required

    Hello All,
    Belatted Happy New Year 2011 to all.
    I have a question related to Sale Order Costing. It goes like this,
    My client is into Pipe coating business who receives the pipe from the customers, coats it as per there requirements and despatches it thereon. There is no concept of FG here as its only the service he is doing on it and also when he receives the pipe there is no raw material cost on it. Raw materials for him would be chemicals etc which he uses to coat the pipe.
    And also this demands variant configuration from SD and PP angel.
    As this scenario is customer specific, it demands Sale Order based costing(Sale order cost estimate).
    My doubt is, how the sale order costing process goes with.
    In general scenarios, Make to stock, we use production order based costing where standard cost estimate is calculated for planned cost and actuals are incurred on PO settling the variance to COPA
    Similarly how the costing goes with if Sale order cost estimate is used. What i think is, here instead of Standard cost estimate for plan, we will go with Sale order cost estimate at sale order level, and incur actual cost at production order and settle the cost of Production order to Sale order. Correct me if i am wrong, and request you ppl there to explain me the process of costing in the scenario said above.
    apart from that, my client wants the flexibility to change the cost estimate at quotation level.
    Please suggest me with solution explaining the process of costing here.
    Thanks in advance,
    Ravi Kumar

    Hi Ravi
    Your understanding of the scenario is very much right...
    In your case, you need to have sales order as cost object...
    Process
    Your stock would be non valuated stock, because the FG is not your stock.. You are just doing a service
    Based on the characteristics chosen in the Sales orders, system would determine the Sales order BOM
    Based on sales order BOM, Sales order cost estimate would be calculated....
    You would receive the Customer pipe in your stock against the sales order... It would be a non valuated GR... You can track the Qty only
    Sales order would trigger a production order... The prod order can have its planned cost, which is only for information sake
    The Customer Pipe, Chemicals would be issued to prod order to coat the pipe... And also Labor/machine hrs may be confirmed
    There after your production order would be settled on Sales order
    Then you would do PGI (Post Goods Isue).. This will not trigger any accounting doc
    Then you do billing... The sales revenue would be posted on the sales order
    Then you settle the sales order to COPA.. This will close the cycle
    Configuration
    The IMG Settings required would be as below
    1. You would use account assignment category (AAC) E
    2. Create a Requirement class with
    a. AAC = E.... (Means sales order is CO Object)
    b. Valuation Indicator = BLANK (Means Non Valuated Stock)
    c. Costing ID/Costing Method = As per your choice to calculate the Sales order cost estimate
    3. Assign this req class to Requirement Type
    4. Give this req type to your PP/SD team.. They would assign it to Strategy group / Item Category to determine it in the sales order
    Regards
    Ajay M

  • In which scenario sales order costing is needed ?

    Is it mandatory to have every time for a sales order to have sales order costing?
    is it mandatory to have SO costing in MTO scenerios always?
    in which scenerio SO costing is not applicable in MTO scenerio ?

    Dear ,
    POC is a Cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a materia.
    Product cost collectors are independent of the production type. This means that you can collect actual costs on product cost collectors in the following production environments:
    In order-related production (that is, when you are using production orders) when you want to analyze the costs by period rather than by lot
    In process manufacturing (that is, when you are using process orders) when you want to analyze the costs by period rather than by lot
    Repetitive manufacturing : In repetitive manufacturing you always use product cost collectors as cost objects.
    Few important points from Forum Experts 
    u2022 Object in cost accounting used in Repetitive Manufacturing.
    u2022 A separate product cost collector can be created for each production version or material. The collected costs are settled to inventory at the end of the period.
    u2022 The functions performed for product cost collector during the period end closing process include :
    u2022 Work in process (WIP) caculation
    u2022 Variance calculation
    u2022 Settlement
    u2022 In Repetitive Manufacturing, all costs attributed to the production of a material are collected on a product cost collector and settled periodically (period-based Controlling).
    u2022 The product cost collector is settled periodically according to the posting period (for example monthly) .
    u2022 For a material , product cost collector is made for each version
    u2022 The actual cost collected can be viewed through product cost collector
    you cannot use product cost collectorsfor the following:
    - Production orders or process orders that are manufactured for a sales order stock or project stock
    - Production orders or process orders that are part of a collective order
    - Joint production environments
    Hope this will give you an idea .
    Regards
    JH

  • Open Balance on Sales Order Cost Report

    Hi SAP Group -
    I have a couple questions about the settlement of manufacturing variance to COPA.
    When our settlement process is complete (production order and sales order both settled to COPA), there is a balance remaining on the sales order cost report which is equal to the manufacturing variance on the production order.
    It seems that the manufacturing variance is posting from the production order to the sales order, but is not being assigned to the PSEG and flowing to COPA.
    I am looking for advice in two areas:
    First, how do we "clear" these balances on old orders that are already settled?
    Second, how do we prevent this from happening on future orders?
    Thanks !!!

    Refer to OSS 183250 and note 186485.
    If you don’t specify in the settlement profile for the production order that the variances are not transferred from the production order into CO-PA, you will settle the variances to <b>CO-PA twice</b>: once from the production order (broken down into variance categories), and once from the sales order item. The settlement rule still references the material and not the sales order item.
    Special Features of Product Cost by Sales Order with Valuated Sales Order Stock
    <a href="http://help.sap.com/erp2005_ehp_02/helpdata/en/90/ba66cc446711d189420000e829fbbd/content.htm">Read the topic on 'Special Features of Product Cost by Sales Order with Valuated Sales Order Stock'</a>
    You may want to check the period of the variance settlement from mfg order to sales order and ensure the settlement of sales order is also done the same period, if the type is PER.

  • Migo based on sales order error -Require CO object

    Dear Experts,
    We have one process,
    Where we are creating sales order and based on sales order, we are doing migo and miro. final entry will be consumption a/c dr to vendor then we are doing billing for the same.
    We got error in migo based on sales order stated that 'please enter co account assignment object.
    where i will cpature this cost on sales order or cost center.
    I think must be part of sales order becoz we are doing consumption based on sales order and revenue and csot must be flow to copa in billing. M i correct?
    If cost object is sales order or PSG in migo? what setting need to be done for the same.
    What will be the ideal process for the same.
    regards
    RR

    hi ajay,
    I have used AAC -X with item category 's' for third party that was suggested by sap
    and the gl i have defined in okb9 with PSG tick.So consumption account linked to my PSG. becoz i m doing migo/miro based on sales order and final entry will be consumption a/c to vendor in my case.
    System will determine PSG in migo and then billing will happened for the same.So my cost and revenue will flow to COPA.
    We have one programme SDVPRSUPDATE that need to execute every monthend.In order to flow cost to COPA for some cases where Billing happened but no GR happened for the same.then this prograame will flow VPRS cost to COPA.
    regards
    RR

  • Sales order cost estimate with GIT account

    Hi,
    Business introduced Goods - in - Transit (Balance sheet account), so PGI will always post to GIT and Invoice it will get reversed.
    For one of the Configuratble material (MTO) scenario we need the Sales order cost estimate to get the Planned cost.
    When i try to execute the sales order cost estimate it says cost element doesnot exist for GIT GL (WHich is right).
    But with maintaining the GIT how to achieve the sales order cost estimate.
    I tried to create CE category 90 for GIT, in Cost estimate am getting error CE 90 not supported for Cost estimate.
    Kindly help this is kind of urgent req for us
    Thanks,
    Sudha

    Hello Ashley
    Yes, if you have done your settings correctly, especially Requirements class set up  (see the documentation link),  then the cost estimate will flow to a condition type in Pricing, usually EK01/EK02 conditions. These conditions are used to calculate sales prices (PR00) in cost-plus (mark-up) scenarios.
    Link: http://help.sap.com/erp2005_ehp_04/helpdata/EN/90/ba6da4446711d189420000e829fbbd/frameset.htm
    However Profit margin  as calculated in a sales order comes from VPRS condition  (which is based in Material Master) and is the difference of net value and VPRS condition value in normal circumstance.
    Hope other more knowledgeable experts will weigh in.

  • Sales order cost objective vs OKB9  Internal order cost object.

    Hi All,
    we facing an  issue with sales order cost objective vs OKB9 cost object.
    For IC PO service material, we assigned account assignment category 4.Reasonis Service material was not showing on G\R account.
    The G\L account 7898788, we assigned to Service Item (material type DIEN)  , for G\Cost 7898788 cost element is assigned in OKB9. Combination business + order 3478787.
    Now conflict with sales order cost objective vs OKB9  internal order cost object.
    While posting intercompany IR posting system thronging below error messageu2026
    Enter only one true account assignment
    Message no. KI249
    Diagnosis
    You made assignments to several objects in CO (cost center, order, project etc.). 2 of these have been created as true objects.
    System Response
    You are allowed only one account assignment for each cost-relevant account
    How to resolve this issue.. Do I make any config changes in the system to overcome this issue?
    Or any sub account to assin in VKOA config for internal orderu2026
    Regards,
    Adi

    Hi Waman,
    Thanks for your inputs.
    Issue :  IR failed to post for wax  Sales Order -> ICPO  - Error:  Enter only one true account assignmentu2019.
    Background:
    Original setup  in  Test system   & Productionu2013 account determination for servive (DIEN) account assignment category u20184u2019 was linked to G/L Account  34444444, As part of project orange u2019, account determination was linked to account u201889710100u2019.
    Account u20188970100u2019   34444444 was replaced with 8970100 ,is not linked to any cost center & always post with reference to IC Sales Order as per config in OKB9 based on company code (US99) + cost element (89701100) + business area (9yyy). This caused a conflict while posting IR, system could not determine exact order for posting financial value.
    Conflict:  Actual Sales Order 34789343 is  linked to PO via account assignment category & IC dummy sales order (8014331) is determine via config setting. Two cost objects cannot be linked to one IR G/L account booking.
    Regards,
    Adi

  • Sales order cost estimate not happening because of GIT B/S account

    Hi,
    Requirement is to have Goods in Transit account in PGI and reverse it in Invoice no issues iwth it.
    For the same sales order user wants to get cost using sales order cost estimate.
    When i run that am getting following error
    Item 00001 : Cost element 14001212 does not exist in CO area 0010 for 10/07/2011
    Message no. KK689
    Even though i maintain the CE for Balance sheet account with Cost element category 90 its not accpeting.
    Can you please help me on how to proceed for sales order cost estimate.
    Thanks,
    sudha

    hi,
    if you give a balance sheet account in obyc , you will not be able to create a cost elementin category 01 , accordignly system will give error in sales order costing , as its not able to get correct cost element in cost planning.
    if your requirement is just to post  cogs to a balance sheet account which is goods in transit and when invoice is done cogs to be posted.
    you should actually use  revenue based RA functionality on sales order instead of assinging a balance sheet account in obyc.
    in this approach;
    - first assign a p/l account in obyc and create cost element in cateogry 01.
    - create revenue based RA and assign RA key in requirement class.
    - in OKG8 for RA category  WIPR and your ra key assign , goods in transit account and give a offsetting account which is not cost element (credit entry in offsetting account nullify debit in account given in OBYC when GIT is posted , when billing is done system will automatically post a oppsite entry in both account).
    -in OKG8 for RA category COSR give the COGS account and a offsetting account without cost element (credit entry in offsetting account nullify debit in account given in OBYC when COGS is posted).
    regards
    rajesh

  • Sale order costing in Retail Business

    Dear Experts,
    We are supporting Retaill based clinet and also that same client using IS RETAIL ECC6.0. Now client is doing retail business as well as S&D also. Business needs that they want to see sale order costing for every trading goods ,which same sold to external customers through S&D customers.
    1. Is it possible to get sale order wise costing for retail trading article (HAWA) type.
    2.How can i make cost sheet for trading goods
    3.How can i share or apportion palnned cost to sale order
    Please support this appreciate and pls.forward user docs and customization settings for sale order costing.
    Best Rgds
    Suma

    I think you put this in the wrong forum

  • Sales order costing- engineer to order production

    hi
    we have a scenario where the production is started based on the sales order. The product is not standard product, for every  sales order the product changes i.e. the material code should be created along with the sales order at the same point.
    1. Bom is not available for all collective requiremnts at the time of sales order creation therefore the sales order costestimate calculated on the same day of sales order creation does not give the true picture
    2. the chance is that the product that may be produced for the sales order may be after 6 months also, hence the production people are not ready to create bom for the sales order related product
    my question is can we suggest sales order costing in this scenario.
    krishna

    Hello Krishna
    In this case, I think you should suggest for sales order costing with variant configuration since the product is not standard and changes for every sales order. The sales order BOM needs to be created and a cost estimate should be taken. If the details are not available then the sales people should edit the sales order through VA02 later and rerun the cost estimate. After the BOM is finalised the production process may start.

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