Item Cost calculation

Hi to all,
My problem is:
Item Cost is calculate on the basis of unit price, tax is not include. I want that Item Cost should be calculated on the basis of actual price+Tax amount. Please if anyone can help me on this.
thanks & regards
Annu

Hi Anu....
Its easy. Go to Administration > Setup> Financial --> Tax > tax Types>
Double on a tax type whose tax amt need to be included in item cost.
Put the 100% on Non Deductible column and save it.
Now when you select this tax code in transaction its value will go to item cost.
Generally people include CST amount in item cost. So if we give 100% deductible on CST tax Type then its value will go to item cost.......
Regards,
Rahul

Similar Messages

Item Cost as Base Price in calculating gross profit

Hi All,
We're using FIFO as item evaluation method. If "Item Cost" has been set up as the base price origin for gross profit, where does SB1 get the value for the gross profit base price for an invoice?
I know it is not from any price list, and it is not from oitw.avgprice. Is this item cost calculated using FIFO?
Thanks in advance.

Hi,
Your assumption is correct. It is item cost calculated using FIFO.
Thanks,
Gordon

Item Cost decimal point precision not correct

Hello,
I tried finding a thread in here that would answer my question, but I haven't found one yet.
What I'm noticing on certain Item Master records is that the Item Cost isn't being calculated using the correct amount of decimal places. I've set it to display 4 decimal places in the System Initialization area for Prices, Amounts, and Rates but that just tacks on more zeroes. I also haven't set any of the currency settings to anything other than "Default". Here is an example of what is happening and hopefully it will be clearer what is going on.
I have an item that we have purchased for 0.22 dollars and a Customs Group precentage set to 10%. This should result in an Item Cost of 0.2420 dollars. It is actually truncating the result to two decimal places and storing it as 0.2400 dollars. I need it to calculate correctly to four decimal places. We're using Moving Average for the Item Cost calculation and in this case all individual Item Costs are the same from PO to PO for the same part (so the Moving Average shouldn't figure in at all) although that might not always be the case.
This is only happening on certain items and I'm not sure what the difference is between the incorrect and correct ones. If someone has any idea why this is happening this way only for some parts, please let me know. Any information would be much appreciated. By the way, I'm using SBO2005A SP01 PL31.
Thanks in advance,
Brent

Thank you everyone who has replied.
Gordon, I don't really have a good way to find out how many are affected. This could be a very big issue or a small one. I'll look into finding a pattern probably on Monday and see if there's something down that road.
Jesper, this was something that came up in my mind before posting originally, but for all I've seen, it seems like everything should be calculating to 4 decimal places. As for the 6 settings, I have Amounts set to 2 (although I've tried 4 and it didn't seem to fix the problem so I reset it back to 2), Prices and Rates as 4, Quantities as 0, Percent and Units as 3. I think these are fine as is. I could be wrong though. The other reason I don't think these are a problem is because only certain items are having problems. Hence why I need to find some sort of pattern.
Bishal, I am not a Channel Partner, just a Customer. So it won't let me login to get to that. If you have another way of getting that to me, then that would be great. If not, thank you for trying.
I probably won't be doing anything with this until Monday. So there won't be a whole lot of updates until then at least. Thank you all for your responses and hopefully soon I can figure this out.
Brent

Item Cost FIFO was wrong when Goods Issue. How to slove it?

Dear Experts,
I met item cost of FIFO item was wrong when I did Goods Issue. The scenario is I did goods receipt from PO that item cost was 8.02 per unit. Then I saw in the inventory audit report that item cost was 8.02 per unit. That's right.
But after that I did goods issue the item cost was 7.485 per unit. And I check to Journal Entry and Inventory audit report were posted the wrong item cost, 7.485 per unit. What source does the system bring to calculation item cost for goods issue?
I access to SQL for check OINM and OITM table. Both of OINM and OITM's item cost were correct in the goods receipt transaction, but they booked wrong cost, 7.485 per unit, in goods issue transaction. I don't understand the logical that SAP B1 use to calculation item cost that use for goods issue. In the past I think the table that related to item cost calculation was only OITM, OITW, OINM, but now I think I misunderstand it due to this case.
Regards,
Pornrat Trisauvapak

Dear Gardon,
I use the FIFO for calculation and in this case has only one lot remain, that cost 8.02. Now I observe OINM table again all field are correct except OpenValue field. I'm not sure this field is related to item cost of goods issue, or not?
Regards,
Pornrat Trisauvapak

Decimal Places in Item Cost must be 6 characters while in Journal Entry 2.

I have the following problem:
Accounting needs to see and work with 2 decimal places, but the item cost is needed in 6 decimals.
If I register a A/P Invoice and i go to the Journal Remark, the Journal Entry should be in 2 decimals. If i look for the Item Cost on the Wharehouse this cost should be in 6 decimals.
Is there a way to handle Accounting in 2 units and Cost in 6 Units
Thank You very much

Hi Saul,
The request appears illogical, how can the accountant work with 2 decimal places & the item valuation is held with 6? The stock account with 2 decimals will never match the stock audit report with 6 decimals.
I'm afraid the SAP Business One core functionality does not cater for this need. There are no 'behind the scenes' journal entries. A JE is legally binding so you need to decide whether you wish to work with the most accurate calculations regarding item cost as possible (6 decimals) or accommodate the accountants & work with 2 decimals in the journals.
You might want to take the nature of the stock into consideration, if there are huge quantities at small individual prices 6 decimals might be better, if you use mainly standard cost &/or have no major cost fluctuations when using MAP/FIFO, 2 decimals might be sufficient.
All the best,
Kerstin

Bom Component qty & WIP Quantity differ at Trget cost calculation

Dear gurus,
i am facing the problem with WIP at target cost calculation in REM.
My issue is
BOM Component qantity is 9.524 TO and price is 2000 then total cost is 9.521*2000=19048.
but in WIP Report kkas in WIP explation it takes input qty 9.52 T0 and price 2000 then total price is 19040.
Difference is 19048 - 19040 =8
and also when i am issuing actual qty i.e 9.524 in BOM then my price is 19048.00 ant at time of variance calculaton then quantaty variance as 9.52.0-9.524.0=-0.04 then 0.004*2000 =-8
Please suggest solution for this.
Any OSSS NOTE Required
any Quires please revert back
REGARDS
Avinash.pegarlawar

Hi
Rounding differences between target and actual values and quantities are not unlikely to occur and cannot always be avoided but can be minimized.
Small prices and price unit of 1 are likely to cause more of these rounding differences..
The actual credit is simply calculated as price * quantity. The target credit however is calculated during the variance calculation
and based on the sum of all items in the itemization/cost components of the cost estimate and therefore more accurate.
To avoid this I suggest to store the material price with a larger price unit, i.e. 1000
Std cost release stores price upto 2 decimals and target cost calculation goes upto 3 decimals...
Please check also the note 1265918 for more information to this topic.
Regards
Ajay M

Actual item cost for batched items

Hi everyone,
I'm not entirely sure if there is an easy solution to this, however we have a client where their stock consumption method does not match their stock costing method therefore they can never really get a true stock valuation from SAP.
They currently have their items set to FIFO however they don't always use the oldest stock as its not always feasible to do so.
Due to this, they cannot really find out the age of the items in stock as SAP assumes they use the oldest stock first. To get around this I've suggested using either serial numbers for big items and batch numbers for the smaller items which will allow them to track when it came in to stock and whether it has gone out or not. This works well and allows the users to find out the age of the stock. However, the cost calculated in the journals and posted to cost of sales is picking up the cost from the oldest open layer in the FIFO (OINM) table and not the cost from the layer from the associated batch.
Is there any way we can get the system to pick up the actual cost of the item being dispatched?
If not, we may just have to create a report which looks at all open batches, get the incoming cost and get a stock valuation that way.
Has anybody faced similar issues?
Regards,
Adrian

Hi Marcella,
Many thanks for your reply.
I have looked in to both Standard and Moving Average and ran through various scenarios but unfortunately neither is exactly what the client wants and neither allows them to get a true stock valuation by item. The client would ideally like the actual cost to be posted, but I'm afraid its either the oldest layer, average cost or a standard cost posted.
Some items could possibly be standard as the cost doesn't alter too much, however some item costs vary rapidly dependent upon things such as exchange rates and other market influences.
I think this may have to be done via reports.
Regards,
Adrian

Alloting freight on item cost on basis of volume(diffrent way)

Hi all
During GRPO the client wants to allocate freight, custom duty on the cost of item. The allocation of freight should be on the basis of CBM/ Volume. The calculation is shown below:
Item           custom duty     CBM/Volume       qty    unit price    Actual price
Mouse      200rs               3m3                      10      100rs          Cal. shown below
Keboard   400rs               10m3                     20      200rs          Cal. shown below
Note: CBM/volume will be filled by user manually at row level, it cant be picked from master data as it keeps on changing during every GRPO. Custom duty will be also entered manually.
At document level user will enter diffrent freights as:
1. Del order expenses= A rs
2. clearing & forwarding = B rs
3. Doc. charges = C rs
Total freight will be calculated somewhere in UDF=ABC= Rs 10,000(Suppose)= this is total lorry freight
UDF lorry volume= 1000m3
Now calculation
1000m3 costs= rs 10,000
1m3 costs = rs 10
Now considering cost of freight applicable on mouse=3m3(3 meter cube) *10rs=30rs
likewise considering cost of freight applicable on keyboard=10m3(10 meter cube)*10rs=100rs
Now actual price is to be calculated at row level for mouse item=100(Unit Price)*10(Qty)200(custom duty)30(cost of freight applicable on mouse)
actual price is to be calculated at row level for keyboard item=200(Unit Price)*20(Qty)400(custom duty)100(cost of freight applicable on keyboard)
THE PURPOSE OF DOING SO IS THAT USER WANTS THAT ITEM COST SHOULD BE UPDATED WITH THIS ACTUAL PRICE.
Hope it clears you. Please provide some solution how to handle it in SAP B1.
Thanks

I have tried this. but this is only possible when the volume is to picked from item master data. Here in this scenario every time volume changes and so user fills it manually at row level.
So what could be done regarding this?

Shipment Cost Calculation

Dear All,
I know that tariffzone plays a role in determining the price for the freight/Service Agent condition in case of outbound shipment cost calculation
I have the following query in Shipment Pricing.
Can anyone please explain whats the role of the 2 postal code columns in the tariff zone assignment?
Also how & where I have to maintain the data for determining the tariff zone which I have assigned to the above combination.
Please help.
Regards,

HI Dave,
Thanks for the response.
Please note that I have maintained postal codes in my Shipping point also in my customer master.
For the combination of TP Point, Service agent, Shipping type & Country I have made the following assignment.
I have given my shipping point Postal code in both the Postal code columns of Tarff zone assignment (say Tariff) & my customer master Postal code in both the Postal code columns of Tariff zone assignment (say Tariff1).
Now I have maintained the condition records in TK11 for the combination of Depart. Tariff zone/Destn.Tariff zone/Service Agent i.e. Tariff/Tariff1/Service Agent
But my condition record value is not getting determined & when I simulate my shipment cost I am getting the following error message.
Shipment costs not yet calculated
Shipment costs item 000001 w/ ref. to doc. $0001 item 0001
Message no. VY104
Goods types directory could not be determined
Message no. VW803
Please help to reolve this issue.
Regards,

Weighted avg Unit Cost calculation for COGS

Hi friends,
Has any body done weighted avg unit cost calculation for inventory valuation and COGS calculation. In a way we need to mirror ECC material ledger functionality based on the APO data in side the planning tool.
Any ideas on the above!!!
Kind Regards,
Krish

Hi Jerry,
Thanks for the tip. I actually needed to clean the spreadsheet up and put bogus values in to comply with company policy. Anyhow, here is a sample of the spreadsheet
http://dl.dropbox.com/u/7499586/junk.png
Just imagine about 100 products and several hundred raw materials, a dozen types of labor and about 30 types of packaging. It's a monster spreadsheet.
The "units" under each product is the number of units per batch. You can see each product has two columns. One where you put in how much of a raw material, package type, and labor type go into each batch, the next calculates the cost for each item. Then it gets summed at the top for the total unit cost for that product.
Let me know if you have any other questions about it. Thanks so much for your help!

Item cost in Bills of material(BOM)

How to see item cost(FIFO, Average) for all raw material when constructing BOM. I feel strange why SAP is calling out from price list since price list consist of purchase cost or selling price rather than actual inventory cost based on inventory valuation method?
Regards
Thomas

Hi Thomas,
What about using the "Last Calculated Pricelist". Would'nt that carry forward the Valuation Price? You would need to run a "Update Parent Prices Globally" to update the latest Valuation of the Item. Please check on this as I am not 100% sure of it.
So try this as it may work.
- Create a pricelist called "Valuation Pricelist" and base this pricelist on the "Last Calculated Pricelist" and at a factor of 1.
- Set your Components Item's Pricelist as the "Valuation Pricelist" on your Item's BOM.
- Set your Parent's Item Pricelist also to the "Valuation Priclist" on you Item's BOM and click the orange arrow/triangle button to update the "Parent Product Price" value.
- Update the BOM
- Run a full Production cycle and see what your results are and this should have a "Total Variance" (between your "Actual Components Cost" and your "Actual Product Cost") to zero $0.00
If I am correct, this should carry the total components' values over to that manufactured parent's value.
But every time you purchase a component ("Recieve"), you will need to do an "Update Parent Item Prices Globally".
Try this and let me know what your results are.
Thanks
Message was edited by: Noor Jooma

Total Production Cost calculation

Dear all,
Anybody know where / at which tableI can see the breakdown calculation of Total Product Cost / Production receipt amount, that should inform us about
1. What is component cost
2. Quantity
3. Price
Thank you very much in advance.
Best regards,
Surya

Dear Rahul,
[Rahul]
Now if I issue 500 of CH00, 250 of CH002, 250 of CH003 then my component price will be ((50010)+(25015)+(250*20))=13750
Correct? [Surya] YES
[Rahul]
Now if I receive 1000 of FG001 then my product cost will be 13750/1000=13.75
Correct?   [Surya] YES
[Surya]
I tested your sample here. The result is correct same as I expected.
So when I receipt FG qty < FG plan qty the FG cost is not changed it is still same with 13.75
This is exactly correct. Same as what I'm expect.
But why in my case the result is not correct.
Test case :
BOM for FG-001 qty 120, the child are :
- PFILM qty 10 Roll , unit price 1,500,000
- INK01 qty 5 kg       unit price 75,000
- INK02 qty 2 kg       unit price 60,000
- INK03 qty 1 kg       unit price 65,000
- INK04 qty 1.5 kg    unit price 65,000
- INK05 qty 7.5 kg    unit price 50,000
- INK06 qty 4 kg       unit price 55,000
- SOLVENT qty 25 ltr unit price 10,000
I create production order # 73 with plan qty 120 and production order # 74 qty 120
Production order #73:
- plan qty FG-001 : 120
- good issue : actual component qty = plan qty = bom component qty
- good receipt FG-001 qty 120
- Result for item cost FG-001 : 137,520.83
Production order#74:
- plan qty FG-001 : 120
- good issue : actual component qty = plan qty = bom component qty
- good receipt FG-001 qty 110
- Result for item cost FG-001 : 137,524.96 -
> WHY ?
I expect FG-001 cost should not change even though Receipt Qty <> Plan Qty.
I expcet FG-001 cost is 137,520.83
Thanks Raul for your help.

Release cost calculation made by CK51N

Hi
We use scheduling agreements in transaction VA31.
We define that cost calculation can be done the scheduling agreement. But at this time, the costing lot size can not be changed.
We need to change it because for us the costing lot size is not the ordered quantity of the scheduling agreement item.
We tried to use transaction CK51N in which the costing lot size can be manually changed which is exaclty what we need.
We marked the cost calculation in CK51N.
Back in the scheduling agreement, and trying to do a cost calculation SAP warns that a cost calculation already exists.
But in our price procedure, we use the price condition which should receive the value of the cost calculation and it's empty.
It is normal?
It there another transaction we need to release the cost calculation made in CK51N?
Any help on the subjet would be really appreciated.
Regards.
Olivier

Hi
Thanks for your help.
I've check my procurement type and the condition was EK02 in fact missing.
I added it and this is now as above.
I created a new scheduling agreeements.
I calculate a new cost for this new document with CK51N and marked it.
But back in the document in VA32, EK02 is still not there. (This condition is flagged manual condition in the price procedure).
I also tried to add it manually, redo the cost calculation, but back in the scheduling agreement, the condition EK02 is still empty.
I probably do something wrong.
Is a calculation rule or basis needed for condition EK02 in the price procedure?
Regards
Olivier

Rework Production Order not able to confirm and no cost calculation

Hi Guys,
During rework production order confirmation system giving error message as below:
[Item category 01001 not allowed in accounting transaction 0000/0001
Message no. GLT2001
Diagnosis
The online document splitting is active in your system. Here, each document is assigned to a accounting transaction variant and each document row to an item category. You determine for each business transaction variant which item categories can or must be posted here.
The following error occurred for the document you entered:
Item category 01001 in accounting transaction 0000, variant 0001 is no allowed.
System Response
The document cannot be posted.
Procedure
Check the document entered, the derivation of the business transaction variant, the derivation of the item category, and the assignment of the item categories to the business transaction variant.
Procedure for System Administration]
This error relating to New G/L split functionality such as the document type and G/L accounts document type. Doc type is using as same as normal production order and normal production order confirmations and other activities are posted successfully. Iu2019m in a puzzle, regards to this behavior of rework order?
Back ground for rework order:
Rework order was created through trigger points.
Rework order doesn't have any material, it has to pick and settle to original production order; the same was defined at re-work order settlement.
Rework order not doing any cost calculations at production order level itu2019s giving a message as below:
Object was not costed
Message no. CK060
Diagnosis
The system could not find any entries that are relevant to costing.
System Response
The system did not cost the object.
Procedure
Check whether the following objects should be flagged as relevant to costing:
- Items in the BOM
- Display BOM
- Operations in the routing
- Control key in the routing
1. Look at the message log.
2. Check whether a quantity was specified in the confirmation.
Will some one throw some light to come out from this situation and what I missed out and what need to be maintained exactly Plz.
Thanks in advanceu2026Vyas

Hi Mangalraj,
Have check the BOM & Routing for Parent production order costing check box is for both. Coming to rework order doesn't have any material, though it has pulled the some material cost from parent production order. The same can see at production order costs>analysis, but where as costs>itemization not able to see and mesage issued like: object was not costed.
as early mentioned, confirmation level same error.
Hope this may give some idea on this case, thanks for your time on this.
Looking forward some light.
Thanks...Vyas

Price List based on Item Cost

We often get asked if we can have a Price List that is based on the Item's cost (AvgPrice in OITW). It would be helpful if the Price List had the ability to be based on actual Item Cost. Purchasing often wants to create purchase orders based on actual cost rather than a static price list. Others use cost plus markup pricing methods in calculating customer price lists.

We have the same problem. A client want to use the price cost as list of prices.
Ismael

Item Cost calculation

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