Component scrap in material costing

Hi all,
my question concerns component scrap (or scrap in general) in material costing (only in cost estimate). in the bill of material (BOM) we maintain the field component scrap.
e.g. we use 100 pieces according BOM and component scrap is added with 10% --> then 110 pieces are calculated. This is SAP standard and works so far!
Is it possible to avoid or disable this function. This would mean that in my example only 100 pieces are calculated despite the filed component scrap (10%) is maintained??
are there any user exits or Business Add In's?
Thanks in advance!

Hi
Similar post was there in forum a couple of weeks back.. you can search itfor more details
The answer to your question is NO... thats not possible.. you either maintain 2 BOMs - one for costing (w/o scrap) and one for production with scrap
You link the costing BOM with your qty determination structure in costing variant so that costing BOM is considered for costing
But it is cumbersome.. Every time one updates the production BOM, they have to manually go and update the costing BOM as well
Ajay M

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Component scrap at material level

Hello,
We have some packing materials for which the component scrap % is always the same, wathever the line or the process. Today this value is maintained in the BOMs, as recommended.
For theses material, in case of a change of this value, we have to update all the BOMs, more than 350 for instance for the need we have know. As far as we know, there is no standard transaction to update this value in mass (CS20 don't provide this).
My question is the following: in such cases, wouldn't it make more sense to maintain the component scrap % directly in the MRP4 view of Material MD, and to delete (or replace) the value in the BOMs?
If yes, then can you ensure that it doesn't affect the costing process, more precisely that the scrap % will always be taken into account by the costing run, even if maintained at material lelvel?
If not, do you know about a transaction to update the component scrap in the BOMs?
Thanks a lot for your help!

Hi JJ,
Question 1 what is LSMW?
LSMW(Legacy System Migration Workbench) is the Tcode for uploading/editing master data which are of small size,if huge data then master data are uploaded using BDC
Question 2
if there are discrepancy on MRP4 and BOM scrap % system will take the BOM value rather than MRP4?
Yes system will first search whether any scrap % value is maintained in BOM,if yes it will consider only this else the one maintained in MRP 4 view of the material master-you can check it
Question 3
can this plan of mine be precise if we run costing that the scrap % declare in MRP4 material master will be taken into account, even if it is maintained at material master?
Yes if you delete the value maintained in BOM ,then it will take value from the material master & hopefully it should not cause any problem in cost calculation as it will pick from here(MRP4)
Revert if you have further query
Reward points if useful
Regards,
SVP

Component scrap and post material for production

Hi guys,
If we maintain component scrap in material master data. e.g.:10%. when we need 1000pcs "A", we will buy 1100pcs.
But, when we post "A" for production, we only want post 1000pcs.
Is there some method to achieve this?
Thanks
Dan

Hi Dan,
Create another material say " X " assign this material in the Bom as component also by-product .In this way you can post
1000 for production and 100 pcs under by -product during confirmation .
jayavimal

Entering individual component scrap values with CEWB

Gurus,
Am dealing with a list of 20 materials used in 15 different BOMs. At my clients after the anual budget definition process is complete, the component scrap is reviewed and needs to be changed in some BOMs. Each material has an INDIVIDUAL value. CEWB only allows to massively change all the materials with ONE value. Is it possible to specify one individual value by material in this t code ?
Material A -> Component scrap 5%
Material B -> Component scrap 4,5%
Material C -> Component scrap 3,5%
etc.
I don't want to use the component scrap in the material master as it would affect all the BOM usage and this should only be changed in the budget and production BOMs.
Am starting to think only LSMW will do it...
Thanks for your help,
Olivier

Hi,
If it is only 15 BOM means, it is better you can make the changes manually. That will be the easiest and the simple way. As per your example the % of the scrap is not the same, it is varying. In LSMW you can't maintain different scrap %.
Regards,
V. Suresh

Copy standard cost with Cost Component from another material

Hi,
I need to copy standard cost from another material not only total price but also details of cost component split. I try to used transaction CKUC with procedure of "explode material cost estimate" but the reference material use "mixed costing" and isystem stop explosion.
There is another procedure in order to make this copy? I can not use special procurement because are different codes (material A / Plant XXX copy froma material B /Plant XXX).
Thanks for your support.
Mic

Hi Chandra,
thanks for your suggestion, it works but only if I explode a level ... material "B" contains two mix codes that also contain their mixes. So system shows this message "Mixed cost estimate explosion in level 2 for material xxx" and "Mixed cost estimate exists: maximum of 2 explosion level (s) possible".
So Is not possible to copy and esploded a standard cost with multi level mix?
Thanks
Michela

Raw Material Cost Estimate - No split between cost component

Dears,
I need to execute a material cost estimate considering the Purchasing Info Record (PIR) where 3 different conditions are present:
1) PB00
2) FRB1
3) RUC1
The scope is:
- linking PB00 to cost component 1
- linking FRB1 to cost component 2
- linking RUC1 to cost component 3
Cost components are already created.
I did following steps:
- creation PIR with these 3 conditions (transaction ME11)
PB00 10,00 EUR @ 1 KG
FRB1 2,00 EUR @ 1 KG
RUC1 3,00 EUR @ 1 KG
- link condition types to origin groups (transaction OKYO)
FRB1 linked to FRB1
RUC1 linked to RUC1
- link origin groups to cost component (transaction OKTZ)
PB00, is linked to cost component 1 without origin group, but using only account coming from T030 table
FRB1 is linked to cost component 2 using origin group FRB1 and the same acocunt used for condition PB00 coming from T030 table
RUC1 is linked to cost component 3 using origin group RUC1 and the same acocunt used for condition PB00 coming from T030 table
At this moment, when I try to execute the cost estimate with transaction CK11N, the split is not done, and all condition types (all amounts) are linked to cost component 1. The set-up done in OKYO is not considered by the system.
In the material master there's any origin group, if I try to fill in origin group FRB1 all condition types (all amounts) are linked to component 2, and if I try to change the origin group in the material master from FRB1 to RUC1, all condition types (all amounts) are linked to component 3 --> this means that the set-up done OKTZ is correctly considered by the system to link the origin group to the cost components.
The problem is that the system reads the origin group from the material master, instead of transaction OKYO.
How can I solve this problem?
Thanks and Regards,
Jody

Pl verify following two things -
Check valuation variant.
Strategy sequence should have 'L - Price from purchasing info-record' and Sub-strategy should be 'A Quotation price via condition table' or 'B PO price via condition table'.
OKYO setting should have valuation variant associated with your costing variant, along with other details (dont leave that field blank).
Let us know if that works.
Regards,
Subodh

Raw Material Costing with Actual Cost Component Split

Hi All
I have requirement to split inventory RM Value with material component and Freight cost, all config done and looks well if I check at CKM3N cost component view, material cost $100 and Freight $20, I GR the inventory with freight cost, since I'm using actual costing when journal freight cost go to Price Difference account. But after actual costing closing why the system can't split the variance update to freight cost component? is this the standard SAP behaviour?
Please help for the solution
Regards
Luiz

I see that you want to split your material cost and freight cost. you need to check the following:
Is your current standard cost estimate support this structure i.e do you have seperate cost components for RM and Freight.
If not first you need to change cost component structure and as mentioned by owen you to map the purchase condition type to the origin group and cost component structure.
Then system will do the same for the actual costing

Negative Material cost in cost component of the Product

Hi,
We are in ECC 6.0 and using Material Ledegr and Actual Costing. We have cost component structure - Material cost, Packing cost, Overheads, etc. The total cost of the product is positive. However, at the cost component level Material cost shwoing as negative.
e.g.
Material-Cost      (-10.00)
Packing-Cost          0.00
Overheads        40.00
Total cost         30.00
It seems the negative Material cost is coming from Lower levels. I have checked this in T-code CKM3N and in Table CKMLCR/CKMLKEPH. There are no reversal of material movements.
Will you share your views on this issue for how to identify the root cause and take preventive action?
Thanks & Regards,
ADI

Hi ADI,
The note 671767 explains possible root causes of negative cost
components. They are usually caused by:
1. Negative cost components due to by-products
2. Negative cost components due to WIP problems
Regards,Declan

Component material costing (Unit of Measure conversion) is not working at S

Hi,
Unit of Measure conversion factor (Value) is not working for component materials at Sales order level costing, but the same conversion factor is working fine at Standard cost estimation level.
Example:
Conversion Factor for Raw materials (Procurement in Tones, Consumption in Each)
1 Ton (Rs.1000) = 10 Each (per Each u2013 Rs.100)
For Manufacturing of 1 pc FG is required 1 each Raw material
Issue: At sales Order level - Raw material costing is calculated at u201CTonu201D price u2013 Rs.1000 instead of u201CEachu201D price u2013 Rs.100.
Regards
Nagesh

Hi,
Pricing (unit conversion) is done different for MM and SD process.
MM has decided to use the old process which determines the values out of T006. There you have the conversion factors which are used in PO. If you create a sales order or billing document the determination will be different as the material master will be read.
regards
Waman

CO/PP - Costing run - raw material cost component

Hi
In the costing run how raw material cost is taken?
is it the material moving price/
or calculated separately?
Please help

i think this depends on the costing variant defined in the order type
in the costing variant, this come from the valuation variant
for process orders you may check the following txns COR4, OPL1, OPN2

Component scrap queries

Hi all,
We have maintained component scrap of 10% in the material master.
So if we create 100 PCS of header production order, component qty is 110. 10 pcs of scrap generated is sold outside.
There is a scrap material maintained in system. We want 10 pcs of that scrap generated should be in stock.
How can we get the stock of component scrap when we run the production order cycle.
Please reply.
Ragards,
S Sudhir.

Dear
To address this business process you need to maintain the Scrap in BOM with -ve quantity then that scraped we can move to scrap storage location with movement type 551.So that you will be able to sell this scrap seprately.
Once you have entered scrap in CO11N material movements are automatically posted in the system. By confirming scrap you are only reducing the balance confirmable qty in the order.
You can post component scrap as byproduct using 531 movement type if u want ot reuse the scrap. Further action is you have confirmed the scrap quantity now you need to post in some storage location either to order or to the GL account of the material. Both are possible from MB1C. Maintain some storage location and post the scrap.
By doing scrap in CO11N, material qty will consume from stock but scrap material you can not see in any where.
Normally in production no one can do scrap.
And also in every company they want to calculate monthly scarp qty.
To achieve the above doing component scrap it will not use.
Follow this method to get rid of your problem.
1. Confirm all the qty as yield qty in CO11N or CO15. ( ok + scrap)
2.Create one separate str location for rejection.
3.Physically you know the how much rejected qty. Move that qty from accepted str location to rejection str location by using MB1B 311 mvt.
4. Now yield qty will reduce.
5. Check in MB51 with mvt type 311 with corresponding period, you came to know how much quantities are rejected.
6.By 551 mvt materials people scrap that rejected qty.
7. In this no need to create any extra material for scrap.
8. No need to change in BOM assigning negative qty.
9.No need to create Byproduct.
If you want separated cost of scrap then you need to define it is as co-product then it possible with joint production costing. Co Product, In turn you need to setup the percentage, of cost sharing.
In case of Co-product costs are settled with a apportionment structure. In case of By-product the price of this by-product is credited to the order or the material stock account of the lead material being manufactured. Co-Product are defined as BOM Components/Items with negative quantities.When BOM is created for FERT , you can see one indicator in COMPONENT DETAILS screen for co-product. You need to define the co-products with this special indicator .
Stock transfer from storage location to storage location (in the plant) is also possible.
Hope this will be useful
Regards
JH

Component scrap factors in Planning

I am using component scrap factors for planning example being lets say finished material = M1 and component is C1. For every 1 M1 I need 1C1 but with a +ve yield of 10% which means for planning 100 M1 I need only 90 C1. I do not want to put in the BOM that 1 M1 REQUIRES 0.9 C1. I want to use some kind of component scrap to do the yielding. I am not able to use a -ve component scrap factor in SAP.
Can anybody tell me what the best solution to this problem would be?
thanks

Dear,
You are talking about the RM and not Finished product. There is nothing called yield for RM.
Yield in the case of FP is you suppose to produce 100 TO, and you are expecting a scrap of 10%, hence your actual yield is 90. If you produce more than that it is + Ve yield, if you produce less that it is -ve yield.
With resocet to RM, you planned to consume 100 TO, but your expecting a scrap of 10%, hence you require to plan 110. In case if you comsume 90, you can get the report in CCOIS, requirement qty and withdrawl qty. This will reflect in costing as less costed to produce 100 TO of FP
I hope you are clear,,please come back.

Material costed, production order with no target cost

I've a case of production order and I don't where to find information to solve it.
I've a product A costed from March. Standard cost is correct.
I'm creating a production order now. The cost estimate is calculated during the delivery.
I've confirmed order by CO15. I've created a variance by deleting 2 items in bom of order. And confirm less than wanted on other component. But I don't think these variances are linked to my problem.
In CO02 and cost analysis : target cost of my product equals 0.
I've checked my prod cost variant and choices are : std price, L price from PIR, moving average price.
Thanks for your helps
Christophe

How can I see that ? I've checked that material cost has taken the bom during the cost explosion. Components are also costed.
I've noticed that target cost appears after variance calculation for product.

How to get report for cost estimates material cost only

Hi Gurus,
We have requirement in sales order costing that we need to develope report which shows only Material cost for all BOM levels.
Normally at lower levels cost of Material and activity cost will be treated as Material cost for next level. Here I want to consider only material cost not activity cost at lower levels
Pls suggest the logic and tables for exploding BOM and fetching material cost only.
Thanks
Sneha

Sneha
If you tick the "Roll up" indicatorfor each cost component in Cost Comp Str OKTZ, then overheads do not get added to the material cost... This is my understanding about it.. Is it behaving some thing different in your case??
br, Ajay M

Re: create material cost estimate with ck11n without

hi gurus,
i need to do create material cost estimate with ck11n without cost result but before i need to check the BOM with material component 11111, and also instruct me how to correct maintain BOM list to get the standard cost
if anybody do the same scenoria giveme your golden inputs
thanks in advance,
kumar.b

Hi,
As note 351835 explains, calculation needs an inforecord to calculate prices from purchasing. Prices from outline agreements are generally not taken into account. According to note 499699, the system may consider entries in the source but it will ignore entered agreements (before this correction, any source list entries with agreement were ignored).
Prices from agreements could only be considered either via a modification or by using the user exit for material valuation (COPCP005).
This unfortuntely is a restriction resulting as a side-effect from note 499699. As soon as an agreement is entered in the source list, the fixed indicator will not be considered anymore.
You therefore have two options to overcome this.
1) You create a second source list entry without an agreement; then the fix indicator will be reflected; report Z_CREATE_EORD from note 409960 could be used to do this automatically
2) You are using user-exit EXIT_SAPLMEQR_001 in order to 'overrule' the standard search for source of supply (enhancement LMEQR001)
regards
Waman

Component scrap in material costing

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