Pricing and costing in MTO material

Hi
In Make to order production material is it advisiable to maintain pricing condition record (PR00) in VK11.As at the time of creation of a sales order it is difficult to know the the excact requirement of the raw material and other cost.
And also where to maintain the expected cost and actual cost for the MTO material and where to reconcile the differences. Can anyone tell me deatiled about the Pricing and costing related Issues in MTO.
Thanks
Debasish

Hi,
please go through this link..it may help u..
http://help.sap.com/erp2005_ehp_03/helpdata/EN/dd/560126545a11d1a7020000e829fd11/frameset.htm
regards...
yogi..

Similar Messages

Enquiry and quotation for MTO material

Friends,
can we create IN & QT for MTO material? If yes, what is item category in this case for Enquiry and Quotation? How it is determined?
As we know item category for MTO is TAK in the order. What abouyt Enquiry and Quotation?
Thanks
Shiv

please find below list of Item categories already there in std SAP
Item category detail configuration
IMG -> Sales --> Sales documents --> sales document item --> define item categories
AFN Inquiry Item
AFNN Free of Charge Item
AFTX Text Item
AGN Quotation Standard Item
AGNN Free of Charge Item
BVN Cash Sales
L2N Request
L2W Request
NLC Inter Co Stock Transfer Item
NLN Stand Stock Transfer Item
REN Standard Item
RENN Free Goods Item
TAD Service
TADC Configurable Service
TAE Explanation
TAF Configurable Service
TAL Ret. Packag. Shipment
TALS Standard Item: SLS
TAN Standard Item (Rush Order Item Category)
TANN Free of Charge Item
TAO Milestone-Bill. Plan
TAP Pric. at Item Level
TAQ Pric. at Header Level
TAS Third Party Item
TATX Text Item
TAW Value Item
WKC Val Contr Item-Config.
WKN Value Contract Item
IMG -> Sales --> Sales documents --> sales document item --> define item category Group
0001 Make-to-order
0003 Make to order / Assembly
BANS Third-party item
DIEN Service w/ Delivery
ERLA Structure/Mat. Above
LEAS Leasing
LEER Empties
LEIC Service w/o del. conf
LEIH Returnable packaging
LEIS Service w/o Delivery
LUMF Structure/mat. Below
NLAG Non-stock material
NORM Standard item
VCIT Value contract item
VERP Packaging
ITEM CATEGORY DETERMINATION
Sales Document Type + Item Category Group + Item Category Usage + Higher Level Item Category =
Default Item Category

Difference between normal Costing run and Costing run in Material Ledger

Hi everybody,
I have a question i wanted to know why we implement Material Ledger .
If material ledger is for settling variances on material then that is also possible without material ledger
Please clear the doubt what is different in ML as compared to normal costing run
thanks in advance
Regards
Deepa

Costing run is to calculate the std cost estimate of materials and Material Ledger costing run is to calculate Actual cost of production of materials.

Resource and cost driver

hi,
1) may i know what is resource driver and cost driver?
2) what is the purpose for both?
thanks

Hi,
Cost Drivers(Statistical Key Figures in SAP) and Resource drivers(Activity in SAP) are activities which causes costs. In traditional Cost Accounting, for example the maintenance costs are allocated on the basis of machine hours or asset value whichever is convenient. But recently, some Management Accounting Expert like Robert Kaplan found these cost drivers are giving inaccurate pricing and costing. Hence, they propounded ABC-Activity Based Costing, wherein they brought in more accurate Cost Drivers with the help of effect and cause relationships to assign costs objectively.
Trust this helps much!
Cheers!

Copy Material Codes, Costs, and Cost Code Distribution

Has any one come up with way to copy material codes with their unit prices and cost code distributions from one project(or template) to another? When a user has a large inventory of material codes, it would be helpful to be able to copy, or import these to a new project.
Thanks for any help.

Forgot to mention that CMPlus will copy Materials from one project to another with the unit pricing of the current project HOWEVER, the cost distribution is tied to the contract that the material is associated with. If you are using materials with Daily Reports to track material not related to a contract then this will be all you need. IF you are using Materials in association with line items on a contract/PO then it will populate the selection list but you will need to perform more data entry to properly link to the contract.
By performing this copy from one project to the other the capability to "Generate" materials from a contract or PO is no longer functional because the Material already exists as far a Contract Manager is concerned
One more item to think about - materials can only be associated with one contract - that does not mean that a material can not be used on more than one contract.
I am assuming that since you are asking this question that you have been using materials on your projects and understand the nuances and issues with the way CM handles Materials.

Material exchane ,copy pricing and conditions from main item to sub item.

Hi All,
We are using parts exchange/interchangeability in the transaction ME22N,
While using ME22N we are exchanging main item with interchangeable part and while doing so we want to copy pricing and conditions from main item to sub item.
But its not happening.
As per sap help its possible, details describe below.
http://help.sap.com/erp2005_ehp_04/helpdata/en/c2/0a5288b77d11d3bcce00105ab03aee/content.htm
Price Determination by Copying from Main Item
In the case of price determination by copying from the main item, the net price of the originally ordered part is still used for the superseding part in a part exchange.
The system copies all conditions from the main item to all sub-items and takes into account the order quantity for the main item when calculating scale prices. It does not take into account the conditions and scale prices that exist for the interchangeable part.
You cannot change the conditions, which have been copied from the main item, at sub-item level. It is possible, however, to define additional conditions for each sub-item.
Prerequisites
A calculation schema, which can be altered on an individual basis in Customizing, has been supplied for the price determination.
In the vendor master record, you have set the schema group 09 (interchangeable material).
But in customizing I didnu2019t find value 09 for schema group .
Can any buddy through some light on missing pieces which need to be set?
Thanks
Regards
Ritesh

Hi,
Can you check few more things and tell me?
- In this exit, does XVBPA and XVBAP contains all the line items. ( main and sub items ).
- In Sales order creation time, do these table have VBELN populated when this exit triggers.
- If you modify XVBPA or XVBAP in this exit, do they get overwritten after that.
Try this code. See if it works. Let me know if you still have a problem.
DATA: wa_hvbpa LIKE vbpa,
      wa_xvbpa like vbpa.
CLEAR: wa_hvbpa, wa_xvbpa.
* check if HVBAP and VBAP line items are not same
IF vbap-posnr <> hvbap-posnr.
* read the ****-to partner from main-item
READ TABLE xvbpa INTO wa_hvbpa WITH KEY posnr = hvbap-posnr
                                          parvw = 'WE'.
IF sy-subrc = 0.
*   read the line item data for sub-item based on main item
    READ TABLE xvbap WITH KEY posnr = vbap-posnr
                              uepos = hvbap-posnr.
* See if current line is the child of that BoM parent
    IF sy-subrc = 0.
      MOVE wa_xvbpa-kunnr TO xvbpa-kunnr.
      MOVE xvbap-vbeln TO wa_xvbpa-vbeln.
      MOVE xvbap-posnr TO wa_xvbpa-posnr.
      MOVE 'WE' TO wa_xvbpa-parvw.
      MODIFY vbpa FROM wa_xvbpa.
    ENDIF.
ENDIF.
ENDIF.
Regards,
RS

Material ledger and cost estmate

Hi all
Can any body tell me the impact on material ledger of deleting the current standard cost estimate from material master? The requirement has come for change the current standard cost from material master whom we have released on 01.01.2008 and now today at 07.01.2008 we want to change this. All the transactions for material in current period I have got the reverse. Now I will delete the cost estimate from T_code CKR1 and than the new standard cost will releases from today in same period. At month end we are going to run the actual costing. Would be any problem in actual costing?
Thanks and Reagrds
Vinay Thakre

thanks Pascal for prompt response,would you please advise my below understanding to ML and actual cost
1)CKMLCP - Edit Costing Run to create costing run to calculated periodic unit price
2)Because there are some activities in CKMLCP,we have to respectively execute CKMF / CKMG/CKMJ / CKMH / CKMI for each activity of costing run
3)after costing run with CIMLCP,SAP will use calculated periodic unit price to revaluate inventory for previous period,and the price indicator S automatically changed to V for previous as well.
4)SAP will generate FI cocument to adj inventory and consumption cost after "post closing"
5)there is different periodic unit price for each closed period
5)the price indicator for closed period is always V,the price indicator in current period is S

Reg. price maintenance in material master and Costing

Dear Experts
I have maintained price for material in material master and costing,but when I create PO price didn't come from anywhere. Pls help me.
Thanks
Rajakumar.k

Dear Rajakumar,
The values that are maintained in the material master in costing view is considered only for costing
purpose.
Say while doing the cost estimate for a material using CK40N,a costing variant will be used and say For
Eg,PPC1,for this a valuation variant will be linked ,as per this valuation variant for costing purpose the
first priority would have been given to the planned price in the material master in costing 2 view.
So this value will be considered only for costing purpose.
For procurement related things you have to maintain a purchase info record for a material + vendor
combination in ME11 and a source list in ME01.
In the purchase info record you can maintain a price for buying the material from that vendor.
I hope this will clear your doubts.
Check and revert back.
Regards
Mangalraj.S

How do i fetch workcenter ,cost center and cost elem using plant ,material

Hi.
i have plant and material in my sleection screen..
how do i get corresponding workcenter,cost center and coste elements..
i need to find total quanity(total hours per cost center) in terms of huors corresponding to each costcenter

Start with VAPMA and then go to VBAP. You can use the information here to go to BSEG if necessary.
Rob

Material and cost center

Hi,
May I know where is material kept?
As I understand, only when consumption of materail, it is debited to cost center. So before consume, the material is in inventory.
I would like to know if in inventory, then it is not belong to any cost center? then why in profit center?
thanks

Newphama Calesta wrote:
hi,
> thanks.
>
> 1 Anyway, is it possible that we debit cost center when the material is consumed in the cost center?
>
> 2 What about direct labour cost? It is coming from the cost center where the worker is reported. so how can we relate direct labour and cost center?
>
>
> 3
> Sorry, I do not understand the statement in bold.
> Need your help to explain a bit.
>
> Profit center is a responsibility area within an organisation which is required to show its own return on investment. For this purpose we require a balance sheet as well as profit and loss account for each profit center.
>
> thanks
Hello
1) Yes it is possible to debit cost center when the material is consumed in the cost center. An example of this is consumables which are consumed against cost centers with movement type 201. This is because these materials are not part of the BOM and pretty in nature.
2) Whenever wages and salaries are booked the relevant cost centers are debited. Here the wages account is debited (so also cost center) and bank/wages payable account is credited. When we do actual production we charge direct labour to Manufacturing orders as an activity. This is only a CO entry where the cost center is credited and the manufacturing order is debited.
3) Profit center is a responsibility area means the person who is managing the profit center is not only responsible for the profit but also responsible for the return on investment. Investment means total of current and fixed assets - liabilities. There may be two profit centers say A and B with investments of 1000 USD and 5000 USD. Both make a profit of 200 USD. So when we see the ROI then A is much better then B.
So to find the total assets which includes stock, we need to maintain them profit center wise. This is the reason why the profit center field is available in material master.
Hope this clarifies your doubt.
Sangram

Assigning cost center to material and GL

I have two material 100 and 200 and two material X and Y.
I would like to make the setting that when material 100 is used it should go to GL X and Cost center 500 and whe material 200 is used it should go to GL Y and cost center 500.
Substitution is the last thing which I can do.
But have been told to assign cost center in the accoutnig veiw of material master and then make assign gl to Material in type in VKOA or OBYC.
Can anyone let me know how to do this
thanks

Hi Ravana
You can assign profit center in the material master and not cost center.
As far I know there is no standard settings other substitution which would satisfy your requirement.
Even VKOA or OBYC only satisfies upto the GL Account and not the cost center part. You can assign gl accounts to various movements of the said materials.
Regards,
Suraj

SOP and transfer to Demand management for MTO material

Hi all,
I have the following situation:
I have a material, a finished goods product with planning strategy 20 Make to order defined in the material master. I enter a sales forecast for the material in SOP in SAPECC (transaction MC87), works fine.
But when I try to release the forecast to Demand Management (MC74), I get the following error message: "No requirements type exists for material 110100 1 in plant 2". I can see that planning strategy 20 MTO does not have any requirement type defined.
But what is the best practice then to forecast on MTO materials (with strategy 20 MTO)?
What I want to do is to bring down the requirements of the MTO material to Long term planning to get a BOM explosion for the components. I realize that I should not start a production plan for the MTO material, but I want to plan the requirements for components several months ahead.
What is the best practice? Should I use a different production strategy? Am I missing config or any fundamental thinking here?
I need to have the material as a MTO strategy, but I want to plan the components.
Please, give me input on this if you have any solution.
Regards,
Lars

Hi Lars,
Here's what you need to do:
1. Instead of pure 20, customize a strategy group that has in it 20 and 10, and attach this strategy group to your material.
2. In MC74 specify requirements type LSF, demand management version, and make sure to uncheck the "active" box (otherwise you will get requirements in the operative system, and not only in LTP).
3. Do the transfer, and include the version in a LTP scenario.
Regards,
Mario

Accounting 1 and Costing 1 View in Material Master

Hi SAP Gurus,
I noticed that we only have "Accounting" and "Costing" views activated in Material Master in our current SAP environment. I don't see "Accounting 1" and "Costing 1" views available. Could someone tell me how to activate these views?
Thanks,
Cassandra

Check this path out for adding views to material type:
Spro>Logistics-General>Material master>Basic Settings>Material types>Define attributes of material type, then click execute, then double click on material type you want to edit, here on right side you will see user departments, you need to get Accounting and costing view highlighted and click save
In MM01, you need to extend the view for accounting 1 and costing 1. Enter your material number and click enter, here when you see views, select accounting 1 and costing 1, maintain data in the said views and save the material, your material will be extended to the said views.
Edited by: Afshad Irani on Apr 22, 2010 10:56 PM

Integration between Product line costing/schedule/risk/pricing and Finance

Hi SD Gurus
Anybody pls help me ,
" Bidding integration between Product line costing/schedule/risk/pricing and Finance business plans ".-- Fixing Core Phase.
Pls send me Business process for this Pain Area.
Very Urgent.
Thanking you
with regards
pawan

HI Gowri
Regarding products, those are not created in the cloud. In regards to what data is unidirectional versus bi-directional the discussion normally focuses on who owns the data. Products aren't owned by the sales or service teams, they are normally owned by a master data function. Products are unidrectional from ERP to Cloud for customer. Review our golden deck, listed in the how-to guide blog to understand what data is integrated.
http://scn.sap.com/community/cloud-for-customer/blog/2014/03/27/sap-cloud-for-customer-integration-with-erp-and-crm-how-to-guides-and-e-learning
-ginger

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

Pricing and costing in MTO material

Similar Messages

Maybe you are looking for