Costing Bom

Dear Sir or Madam,
We have repetitive manufacturing set up and the costing is always based production BOM. Now we are planning to switch over to costing BOM. Even though the priorities are set up in costing configuration to selection costing BOM the system by default selects production BOM. I made the changes in product costing quantity structure, BOM selection, BOM usage.
Is there anything else I have to do from the logistics side.

Hi,
BOM Usage
This key defines the area (such as engineering/design, production or costing) where a BOM can be used.
Use
Data is entered and edited according to organizational area.
The BOM can be displayed for a specific usage.
Procedure
Enter the usage for which you want to enter or edit the BOM.
For costing BOM, use usage as 6.
This BOM will be used by costing department only and will not participate in Production activities like in Planned orders or Production orders.
Srini

Similar Messages

  • Production consumption variance w.r.t. Costing BOM

    Dear Sir / Madam,
    Our client is using BOM usage 1 as well as BOM usage 6 i.e., Production BOM and Costing BOM.
    Consumption of Raw materials and MRP happens based on the BOM usage 1.
    Costing of FG happens  using BOM usage 6.
    Users want to have a variance report between the actual raw materials consumed v/s the BOM components in the Costing BOM in value as well as quantity basis.
    If the costing BOM says 100 components and the production consumption happens for 110 components then the difference must be highlighted to them in the variance report.
    We have ML activated. Kindly help.

    Hi
    1. Create one more costing variant and valuation variant...
    The Qty Structure Control in this Costing Variant should refer to Costing BOM
    Also, assign this costing variant to Version 1...
    2. Run Cost estimate using this Costing Variant and save it in Planned Price 2 or 3 field
    3. Create Version 0 and Version 1 for target cost calculation (IMG > CO > Prod Csting > Cost Obj Contr > Prod cost  by order > Variance calculation)
    Version 0 will be based on Costing variant which releases Std Cost
    Version 1 will be based on Valuation variant which releases the cost to Planned Price Field
    Br, Ajay M

  • How to get costing BOM from R/3

    Hi friends,
    How to get costing BOM from r/3 with levels into bw.and the transaction in r/3 is ck13n

    Hi,
    You'll need to go in for a generic DS in this case.
    Cheers,
    Kedar

  • Costing BOM usage

    Hi Experts,
    Please explain me with some examples what is the use of " BOM usage (6)costing BOM".
    I have the following scenario where i was trying to use the Costing BOM concept.
    To produce material 'A',  I need component 'B' and 10 other consumable materials.
    For the cost estimation purpose, the client wants to put the consumables in the BOM.
    The production of A is happening like this, Prod. Order qty of A is 100000 Meter.
    The confirmation of A will be taken place partially like 500 m, 700m, 900m...etc.
    When i do the confirmation, Auto GR for material A and consumption of components by 261 movement type will be taken place.
    Here i can monitor what is the actual consumption of component B and i will enter during confirmation. So that i can get the Plan Vs Actual quantity.
    But for consumables i can not monitor what is the actual consumption since it is very less quantity and it will be filled in the tank as a bulk quantity.
    Please thro' some light on the following 2 queries,
    1.In the costing BOM i will put all the consumables and in Production BOM i will put only the prime material, how to avoid the Variance during every confirmation?
    2.If i don't put the consumables in the BOM, i added it in the Costing sheet, and i am issuing all to Cost center by 201 movement type. In this case how to take the Plan Vs Actual variance?
    Thanks in Advance.
    Bala

    Dear Balamurugan,
    Check out this,
    Generally the Production BOM will be used for production as well as costing.Production in the sense which
    will be used for running MRP or for creating a planned order or else a production order.
    If you want to create a BOM for a material just for doing the cost calculation or if your company wants to
    know the cost split up alone means then you can create a BOM using the usage 6,where the same will not
    be considered for production that's in particular for running MRP.In case if you want to restrict that one
    should not run MRP for a material which has a BOM (which has only Costing BOM) then in this case it will
    be helpful.
    Regards
    Mangalraj.S

  • Material Error in PO and Costing BOM

    Hello,
    Am having error when am using a certain material in creating production order error is "In-House production is not intended for material 50 status inactive Prod. : DSS only" this same material also encountered error in changing Costing BOM error is "material status Z4 inactive prod.: DSS only does not allow BOM maintenance". what thus this error mean and how could this material be used with this transaction?
    Please guide and help me solve this.
    Thanks and Regards,
    JJ

    Hello,
    You will find the Material Status in Basic Data 1 View as well as in MRP1 View (apart from other places)..\
    For this material, it Seems that the status restricts the Material is Mat. Cost Estimate Procedure as "B"
    And Production Order Header also "B" (Error Message).
    One thing I would recommend is please check why this status is put?
    Whether some one is intentionally put this status for any business reason?
    or Blocked this material altogether?
    Regards,
    Siva

  • JDE World / Actual Costed BOM ( not standard ) Manufacturing

    Hello,
    I was wondering if any of you knew if JDE had the capability to report an actual costed BOM.
    We are running LOT control on 90% of our products and would like to report an actual cost for each LOT / work order.
    This would include,
    Actual labour collected through Kronos
    Actual price paid for a piece part (we may have paid premium on a particular lot)
    This would then give me the actual cost of a unit which I can then compare against price sold and report profit and loss at part number work order level.
    Your help is much appreciated.
    Thanks,
    Dan

    Dear Janos Noll ,
    Can you please share with me, what goes wrong for SAP B1 community members if SAP provides this feature in B1 ?
    I believe SAP is intrested in SAP B1 Product Ehanancement, that is why SAP has created this forum upfront.
    Personally I believe that there is far gap between quality of SAP product and Add-On developed by other agencies.
    When Customer is spending money on SAP brand name they must receive the same quality all to gather.
    Hope you understand and support me on this DRQ. I strongly believe it is of utmost importance for SAP B1 community members that includes, Partners,Consultants,Customer and last but not the least SAP.
    Thanking you in advance,
    Samir Gandhi

  • Costing Bom Cencept

    I have a query that In chemical Industries Recovery process  Mother Liquor which is byproduct comes from the centrifuge we have reprocessed it and getting recovered solvent and used this recovred solvent in the same process ,by doing this we save our Fresh Solvent Cost we are getting  costing benefit of using this in Process Order for this there is one concept of *COSTING BOM* , anybody having idea about this in SAP.

    Visahl
    If I understood you correctly, the solution is as below...
    1) create the BOm of your FG including the Mother Liquor (as by-product) recovered solvent & Fresh Solvent as your raw material with alternate grouping & appropriate usage probability( e.g 80:20)
    Upon confirmation you will be getting by-product mother liquor & consuption will happen of recovered solvent & Fresh Solvent according to the settings done for alternate group.
    2) create another BOM for recovered solvent  within which mother liquor will be a RM & procee this through order. you will have the stocks of recovered solvent to use in process 1)
    This will also take effect of appropriate costing issues you are facing.
    Regards
    Mahesh

  • Question on costing BOM

    Dear all,
    I have a question on BOM Usage Type. We know that when the BOM Usage Type is 1 (Production) and when we have different alternative BOM's, Alternative BOM's are picked up by the Production version (based on lot size and other criteria).
    Now the Question is:
    When the BOM Usage Type is 6 (costing) and there are several alternatives BOM present for the same header material, where and how exactly are the alternative BOM's used in Costing. Because when the BOM usage type is 6 (costing), it will be not considered for the production but only considered for Costing. So the use of Prouduction version will not be there as there wont be any master recipe for production.
    So similar to production version, there should be something which will pick up the alternative BOM for costing purpose. Please let me know on the same. It will also be great if a SAP help link on the same is shared.
    Regards,
    Brijesh

    Hi,
    check the following
    While doing the costing run, SAP checks if you have maintained the "Production version to be considered for costing" MARC-FVIDK field in Costing View. It will use this Prodn Version for cost estimate.
    If you have not maintained the production version field, then it will use the values maintained in the "Quantity structure data" section on costing view. I.e. it will use the BOM alternative. and recipe information from here.
    If you have not maintained above values then system picks up the first BOM alternative (MAST table) and first recipe information (MAPL table) it finds for the material-plant combination.
    Also according to my knowledge SAP cannot decide the Lot Size for Prodn Version while doing the costing run. You need to tell the system what data to be used for costing.
    While standard cost estimate, In CK11n screen at Quantity structure tab you can choose, the required BOM and routing combination.
    Like this you can have cost estimates for different combinations. But you can release only one.
    regards
    Venkat V

  • Costing BOM and Mixed Costing

    A product which is manufactured in-house has more than one production version.  Each production version has its own BOM and Recipe.  To calculate a blended standard cost, we will use mixed costing functionality and assign ratio to each production version.  However we want to copy the BOM usage 1 (production) to BOM usage 6 (costing) and make changes only for costing purpose.
    Hence each production version will have a BOM for production and equivalent BOM for Costing as follows:
    Production Version/Procurement alternative
    BOM for Production
    BOM for Costing
    1
    Usage 1 / Alternative 1
    Usage 6 / Alternative 1
    2
    Usage 1 / Alternative 2
    Usage 6 / Alternative 2
    If a process order is created with Usage 1 /Alternative 1, how does the system know to compare actual cost with procurement alternative with Usage 6 / Alternative 1 for the purpose of variance calculation?
    Thank you,
    Siva

    Hi
    Welcome to SDN
    You dont have  option to specify the Valuation type in BOM i.e. in the BOM of B, you can only specify A as the Input material... You cant specify C1 or C2
    Hence, as a result, costing uses only the average price of C1 and C2 which is maintained in the Mat Master as a PLanned price
    MIxed Costing as well as Split Valuation for Material B makes no sense in this case....
    If you still want to have Mixed Costing & Splt Valuation in this case - You need to create one more material for Mat A i.e. Separate Mat codes for C1 and C2.. however, it will have its own challenges during MRP as to which material should be ordered, etc
    br, Ajay M

  • Material Ledger Actual costing - fully costed BOMs and variance type split

    We are in the process of activating material ledger and have 2 user
    requirements that we have not yet been able to complete. First, the
    difference between standard cost and weighted average cost needs to be
    split between the variance types (raw material purchase price, raw
    material usage, packaging price, packaging usage, etc.). Secondly we
    need a fully exploded cost itemization that supports the weighted
    average cost, similar to the costing structure pane in transaction
    ck13n.
    Do you know of any custom developement that might assist us in these
    requirements, or have any information that might help us develop a
    process to calculate these values ourselves.
    Thanks

    We are in the process of activating material ledger and have 2 user
    requirements that we have not yet been able to complete. First, the
    difference between standard cost and weighted average cost needs to be
    split between the variance types (raw material purchase price, raw
    material usage, packaging price, packaging usage, etc.). Secondly we
    need a fully exploded cost itemization that supports the weighted
    average cost, similar to the costing structure pane in transaction
    ck13n.
    Do you know of any custom developement that might assist us in these
    requirements, or have any information that might help us develop a
    process to calculate these values ourselves.
    Thanks

  • What is BOM? Steps Needed. How is it Related to Product Costing

    Gurus,
    What is BOM?
    How is it related to Product Costing and Profitability Analysis and CO?
    Technical help and steps would be appreciated.
    Thanks.
    Points available.

    Hi,
    BOM (Bill of Material) is a structured list of components (with the object number, quantity and unit of measure) that go into making of a product or an assembly.
    Bill of Material can be simple or complex depending upon the structure of the product. And, a collection of BOMs that lets you describe a product or a number of similar products is known as BOM Group.
    T code is CK51.
    In product costing BOM is used to estimate the cost incurred for the creation of a finished product.
    Technically, when u do a product cost run for particular material and if you don't have BOM for the material, the system will give an error.
    If useful, assign points.
    Regards,
    Manju

  • Incorrect Cost in the Cost Run -  Recursive Indicator in the BOM.

    Dear All,
    We have an issue with few materials where in the Cost run cost is incorrect.On Further analysis we got to know that this is because the recursive flags set for in the costing BOMs caused the incorrect cost.I just want to know if any one of you have encountered this type of issue and how you fixed this issue.Please let me know.
    Thanks,
    dbk

    Hi,
    Please check if the following correction notes have been installed:
    - 1487255
    - 1448124
    - 1437988
    - 1428408
    Best regards,
    Antje

  • Scrap costs in Standard Costs without adding scrap factor in BOM

    Running one part number, multiple operations in factory.
    Need to account for Standard Cost including Scrap, but do not want to inflate BOM using a scrap factor.  How can we maintain accurate backflush of matls and capture scrap costs for use in Stds?

    If you do not want to consider the scrap qty. in operations but want to consider it only for costing purpose, then create a costing BOM i.e. usage 6. In this BOM you can maintain the scrap. Also ensure the costing variant which you're using has a priority of costing bom over say production bom or universal bom.
    Discuss this with your costing person as well.

  • Default BOM in costing

    Dear Sir or Madam,
    We have repetitive manufacturing set up and the costing is always based production BOM.  Now we are planning to switch over to costing BOM.  Even though the priorities are set up in costing configuration to selection costing BOM the system by default selects production BOM.  I made the changes in product costing quantity structure, BOM selection, BOM usage.
    Is there anything else I have to do from the logistics side.
    Thanks
    Joseph

    Hi,
    BOM Usage
    This key defines the area (such as engineering/design, production or costing) where a BOM can be used.
    Use
    Data is entered and edited according to organizational area.
    The BOM can be displayed for a specific usage.
    Procedure
    Enter the usage for which you want to enter or edit the BOM.
    For costing BOM, use usage as 6.
    This BOM will be used by costing department only and will not participate in Production activities like in Planned orders or Production orders.
    Srini

  • Costing calculation using production bom

    Dear experts，
    In CK11n，under what circumstance， do we need to create costing bom？
    in order confirmation， plan cost is calculated from production bom or costing bom？
    actual cost is calculated from production bom or costing bom？
    Thanks

    Hi
    If your organization does not want to calculate Cost based on Prod BOM (Say you want to ignnore scrap in the Prod BOM), then create a Costing BOM and use it for Costing
    In an ideal world, both must be the same as far as possible
    br, Ajay M

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