HALB & FERT Valuation

In ETO (Engineer to Order) how the HALB and FERT are valuated. What is impact on Project actual Cost?

HI,
Usual practice in ETO scenario is there, we use KKPAN(Cost estimate without quanity structure) and find the cost of the product. And there will not be any permanenet BOM and routing since it is in very initial stage. So, while costing the material with KKPAN the approximate material consumption and rouitng values entered.
Once the production order is created, actuals is according to GI. And cost will be captured under the cost object according to settleemtn rule.
Vijay

Similar Messages

FERT valuation class

Hi gurus !
For some goverment reasons in my country i have to change the valuation class of all the FERT and HALB type materials. I know i have to reduce my inventory to 0 (zero) for being able to change it; that's as far as i've got. In the accounting 1 view I have the inventory value in 0 and i'm able to change the valuation class but when i try to safe an error popups telling me that there are already production orders created (it lists all of the orders that have been confirmed).
Does anybody know what can i do ?
Thanks a lot !
ps: in this case the material ledger is active.

When a production order is created,then system will believe that you will execute the order and will make the material to come in stock..(See in MD04,if a material is 2 nos in unrestricted,and there are 4 production orders,then the stock will logically include those 4 also)
So YOu need to complete that order...But I don think it is possible to delete the order if there are costs over it.. Try to reverse all the materials from that order and delete it..
Hope it helps..
karthick

Combining Master inspection charac. of HALB & FERT in a Quality Certificate

Dear Experts,
material A (halb) with Inspection Plan1 produced material B (fert) with inspection plan 2. Some of the Master Inspection Characteristics maintained in inspection plan 1 are not in inspection plan 2. I intend to create a Quality Certificate for material B (fert). How do i pick some charateristics from insp plan 1 (which is assigned to halb material A) to display in addition to charateristics from insp plan 2 (assigned to fert material B). Characeristics from fert diplays in my Quality Cert, but how do i incorporate characteristics from the halb?

You do this in the certificate profile. Click on the button on the menu bar labelled "Materials". In here you define what materials the system should look for to find the relevant batches or inspection lots.
For this functionality to work, you must have the batch where used functionality set up. I recommend having the batch where used list update in real-time rather then in batch.
FF

PP/DS Optimizer u2013 Planning for HALB and FERT in sequence with Optimizer

We are using PP/DS optimizer to plan the two level BOM items. FERT and HALB planned orders are converted from SNP. ROH products are not planned in APO. PPDS is not used to create or delete orders. Only scheduling is done by optimizer. Only one mode exists in PDS. Setup matrix is used for both HALB and FERT.
The requirement is to schedule HALB products in time on their own resources in time for multiple FERT orders. The optimizer does not appear to do this consistently. We use the following steps in planning run:
1.     Stage numbering.
2.     Schedule orders at the earliest with infinite planning. This is done to ensure there are no blank spaces at the beginning of the planning interval on resources after optimization. The result is all orders starting at the same time with multiple loading on resources.
3.     Optimization with weightage for makespan and setup time. Key settings are: Forward planning, finite resource loading, pegging relevance, considering inter order relationships. All HALB and FERT resources are selected in this step. (Delays are not important within the Optimization interval and there are no stocks of HALB except when there are time gaps between HALB Orders and FERT orders. HALB order is finished earier than FERT order start.)
The question is: Is Optimizer capable of scheduling HALB and FERT on their own resources but at the right iner order timings while optimizing the setup time. Are there any key setting to watch out for in Optimization profile or Strategy profile to enable this?
If this is not possible, we will have optimize only at one BOM level and then use top down or bottom up heuristics to plan the other level.

HI TemYogi,
Assumptions:
1. One PDS each for HALB & FERT level with one resource
2. HALB to be scheduled first. Based on HALB schedule, FERT has to be scheduled
To achieve this
Maintain "Maximum Lateness of a Receipt" in Pegging tab in Demand tab in Product master
in FERT PDS maintain the consumption type of HALB components as continious/ start/end of the the operation
use the planning direction as backward and reverse in DS strategy profile
Use schedule mode as Insert operation / insert operation and close gaps until end in DS strategy profile
Fix all the previous run orders in DS board for HALB and then Schedule all the HALB orders considering u r setups through optimization
Now run the optimizer for FERT
Regards
Sravan maturu
+91 9392602314

Production order settlement in case of non valuated material

Hello guys,
Our client wants some of the materials have to be non valuated. These materials are raw materials and SFG also. We can assign UNBW material types to those materials.
I have created one material for test purpose. It doesn't contain the accounting view so as no valuation class. BOM of it , doesn't contain any component as client doesn't want to show any consumption on production order.While creating the order for that material system asks for the settlement rule. I skip that step and create the order. I do GR for the same.
My question is, is production order settlement essential for these orders? What if we don't settle the order. No activity type has been assign to the work center.
Kindly give ur valuable inputs.

Hi,
No need to create material as UNBW type.
Normal ROH, HALB, FERT material type we can achieve this.
In the BOM of FG or SFG goto item detail screen there is a tick mark in costing.
Remove the tick by OS23 - BOM status.
Now you can do your production as regular. But cost will not get update.You can do regular settlement also.
Regards,
Dharma

How system determines Valuation strategy in PP order confirmation.

Hello Experts,
i have maintained in valuation variant for valuation variant 006 and 007 strategies are 1st standard price 2nd moving price and 3rd plan price.
We have maintained two prices in material master one according to price indicator That is V in our case for eg 1000 per ton and other price which is standard price For eg 1200
Now while creation of production order my planned price according to valuation variant 006 is picking 1200 for a ton which is perfect but while doing confirmation and saving my production order system is not picking the strategy defined in 007 which same as 006 and its should pick same 1200 instead of 1000 but not happeninng
kindly reply as soon as possible
Regads
Naveen Chawla

HI
The System will take either Standard Price or Variable price but it will not take the values at time even though u maintain both the prices in material master . if its is taking the standard Price than your material may be Semifinshed or Finished good s
For Semifinished & Finished Goods --- Standard price is taken into consideration
For Raw Material - Variable price is taken into consideration ,,,,
Varable price is not consideration of HALB&Fert as in the the priceses are updated by the variable price inthe raq material when we perform Costing Run ...
Hope this may help u
Regards
Ramanujam

Changing Cost Estimation ( ML activated)

Hi All,
We have ML activated and we have Price Control as "S" for all ROH, HALB & FERT Materials.
The intention was to have one Cost Estimation per year and difference to be posted to variance.
The Material Valuation Strategy is
1. Valuation Price from User Exit
2. Price from Info Record
3.MAP
4.Planned Price 1
Now our issue, in June 2011 we have executed cost estimation for some new materials(say one Material ABC - Cost estimation must be $12000 but it is updated as $19000 due to wrong price maintenance) with wrong price and made goods movement.
Now when we want to correct the cost estimation by executing a new cost estimation( i.e. we want to overwrite the $19000 by $12000 for the ABC material) by this month( July 2011), but the system is picking the same old cost estimation price (old cost estimation price as $ 19000).
Can you suggest, how we can overwrite the existing cost estimation.
Do suggest.
Regards,
Rex

Hi All
Costing valuation follows the priority you have define. If this is taking 19000 maybe this value is coming from the first option (user exit).
I suggest you to change the priority to take price from planned price 1. Go to OKKN and change the priority for Valuation variant.
...or you have to assure there is no prices from priority from 1 to 3.
Regards.

Special Production Order

Hello Guru,
Yesterday we have issued, we want to have a production order that we dont want to direct posting of cost during Production Order declaration. we created a dummy material with mat type is non valuated, we made a production order with this kind of material,and doing the PO via CO01 SAP ask me to maintain settlement Rule: Overview, where i indicate the category and the cost center, after that release and confirm it log working hour for labor, and with this we made settlement via KO88. after all this process i done and check the PO that we made there is cost in analysis and its balance? is this because we indicated in the confirmation that activity in labor has values that's why the were register cost in my production order?
how could we achieve that our order will not be posted directly a cost?any set-up eitheir with the material,cost center etc?
thanks

Dear,
Best solution for your problem is,
No need to create material as UNBW type.
Normal ROH, HALB, FERT material type we can achieve this.
In the BOM of FG or SFG goto item detail screen there is a tick mark in costing.
Remove the tick by OS23 - BOM status.
Now you can do your production as regular as non value added.
Steps for Settlement.
1. Over-head - KGI2 or CO43
2. WIP - KKAX or KKAO
3. Variance - KKS2 or KKS1
4. Settlement - KO88 or CO88
Please try this check your result and come back.
Regards,
R.Brahmankar

How to eleminate unused master data from Costing Run?

Dear
We have some material codes that we do not use for material type HALB & FERT. But they keep appearing in MM60 . what can be done to remove them from MM60?
These unused materials appear in the costing run ck40n. They create costing error/ discrepancy etc. How to get rid of it? If I activate deletion flag for these materials will they stop appearing in costing run?
Thanks
Chandra

Dear Chandra,
1.MM60 is only a report for the list of materials and here if you include the check box for valuated materials then the system
displays only the materials that have the accounting data,and for a proper list of materials I suggest you to fetch either from the
table or else via a query using MARA,MARC.
2.In case if you dont want to cost certain materials set the indicator on for do not cost in the costing 1 view of the material
master.
3.Also in my understanding CK40N will be run for the FERT materials and in this only the BOM component's HLAB and ROH
materials will be normally included in the costing and the error come only for the BOM component's and related to operation.
4.So instead of running it for the entire plant,input the Finishes products andf the plant combination and check the same,the no
of errors may get reduced.
Check with this and revert back.
Regards
Mangalraj.S

Fields in material master views related to costing

Hi All Gurus,
In Material Master Views
Can you suggest the fields or indicators according to MM point of view,
which should be given or indicator to setting on.
Rgds
Ana.

Hi,
For accounting view.
If material is FERT or HALB: -
Enter valuation class,
Price control as "S"
Standard price(If you have run costing for FERT & HALB then not enter standard price because at the time of costing run system calculate standard price of product).
For ROH, VERP, ERSA etc...
Enter valuation class,
Enter price control as "V",
Enter moving average price.
Regards,
Mahesh Wagh

Backflushing problem in Production order

Hi,
In my scenario we use valuation type for the components which we consume in the production order.There is one BATCH field in the component list for a production order.
There i can give my valuation type of material which i want to consume for that order.But all the time i have to give it manually in the order.Is there any possiblility of picking it up automatically because i use backflush concept.
So in my CO11N transaction the goods movement tab appears
where the componets get displayed.but i have to give the valuation type field manually.Other wise automatic GI does not happen.
The problem is that i have approximately 60 components to be backflushed for an order and all the time i have to give the valuation type maually.So it is creating problem for me.
Please suggest.
Regards
madan

Hi!,
I think you are using spit valuation and want automatic determination of valuation type as per priority set in the configuration. For this you need to define stock determination rule/group etc. Make the necessary configuration in SPRO> Material Management> Inventory Management> Stock determination. Make the necessary assignments for various functions mentioned there such as inventory management / production order / pick list etc.
If you want to default the valuation type for the HALB / FERT material (Split valuated) while production order creation then you need to do necessary configuration for their respective material types in SPRO>Mat Management>Valuation & Account determination>split valuation. There you can give default valuation type for the material type and also you can keep it modifiable or nonmodifiable.
I hope this will solve your problem.
Regards,
Uday

Product cost estimate

Hi Experts,
Can somebody explain me the theoritical point of need for product cost estimate. From my know somepeople say we need to enter the standard price in the cost estimate tab of the material master, but sometime i see that when we run the CK11n the price automatically updated in the standard price field of the material master when we mark and relese the std cost estimate.
Do we need to enter price in the material master before the cost estimate for the materials or if we do the cost estimate do we do cost estimate only for the finished products so that all the cost under that product will be calcualted or do we need to do cost estimate for all material raw material, HALB & FERT?
what is the purpose of cost estimate and the result of cost estimate?
Thank you
Edited by: Nivi ram on Dec 29, 2009 9:52 PM

Hi Nivi,
Partly I agree with Pradeep, but I would to add more information regarding product cost estimate concept.
Maintaining material master on Accounting view or Costing view is mandatory prior to run Product Costing. It is true, by maintain price manually you cannot get cost breakdown or what so called as cost component structure. It is initial price which then later can be updated by "process Marking and Release" product cost estimatel.
How the system get the value of material costs and process costs are defined by Costing Variant. Costing variant control how the system find the BOM and routing to calculate the material costing and the production costing. System will access the material and activity cost based on Valuation variant in the Costing variant. I am sure you can costing variant use in the CK11N.
When the product cost are free of error then, you can go to the process to utilize the product cost estimate to update the material master with CK24 ( update material master indivdually). You can also use mass costing using CK40N - Edit Costing Run to maintain the costing and update material master. So product cost estimate can be run either for finished product (FERT), semi finished product (HALB) or other components
Hope this help.
Regards,
Irhasni

Reg: Material types

H i All,
I have special scenario, a material which is FERT in one plant is sold thru IPT to another plant which would be ROH in the receiving plant ,
In this case how would i treat the material types for the same material code and alo let me know the respective valuation classes.
Reg
VKK

Hi,
I'm not creating two different material type but I would create the material as HALB across the plants and delare the FERT valuation class in the sending plant(i would also delcare it as RG1 in J1ID) at receiving end the valuation class would be ROH's valuation class. Is this right ?
Reg
VKK

Cost estimite

hi,
while creating matirial in MM01 i am getting this error.
"No cost estimite number could be assigned"
regards,
balu

Dear Balu,
Generally while creating the material master for material types ROH alone the price control indicator will
be V and the moving average price will be entered as planned price 1 along with its valid from date in
Costing 2 view.
For material types HALB/FERT which are In-house manufactured will be having S as the price control
indicator and we have to carryout the standard cost estimate.For sub-contracted item V will be the price
control indicator.
But I doubt why the system is showing such an error at the time of material creation.
So just check whether your valuation class, price control indicator's are correct.
Regards
Mangalraj.S

Error while creating Consignment PO

Dear Gurus,
I am getting error message as 'Account assignment is mandatory for a material' while creating consignment PO with item category 'K'.Could you please address the problem?
Note:I have created Material master record and Consignment info record for that material
Thanks in advance
Regards,
Babu

HI,
1. Create a Material - MM01(Use stockable material types like ROH,HALB,FERT, HAWA, etc, Do not use consumable Material which is NLAG mat type)
2. Create a Vendor - XK01
3.. Create a Consignment Inforecord - ME11
4. Create a a PR with Item Category K - Consignment
5. Then assign PR to PO - ME57(PO Creation) Or directly create a PO with reference to PR - ME21N
6. Release the PO with any release stratergy is there
7. Recieve the material in MIGO
8. Transfer material from vendor consignment stock to own stock - MB1B 411 K mvt te.
9. Consignment Liabilities settlement - MRKO
This error comes into picture when you use Non-stock material... Avoid using it.
Or in case if u have to use Non stock material try giving Cost center and GL account in account assignment tab in item details
Thanks & Regards,
Kiran
Edited by: Kiran. V on May 1, 2008 3:50 AM

HALB & FERT Valuation

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