Product costing valuated sales order stock

Hi all,
We are in complex mfg & currently re-vamping all the ERP SAP instances ( totalling 13 company codes into one single)
All 13 units( who use NON Valuated scenarios for cost object controlling) wil use valuated sales orders & projects. The old 13 companies will be trated as profit centers with transfer pricing functionality ( Multiple valuations)
My issue is to get a product cost for sales order in <b>profit center view</b> ( plan cost) exactly same as to the marked standard cost itemisation of the FERT material.
We mark & release the std cost in Jan & the client wants to have the same itemisation of the cost ( with same values) even if they create a sales order in 2nd or 3rd or last quarter. ( As you might be knowing that the sales order wil always cal;culate the values as per the current qty structure date. In Std SAP date control, there is nothing which allows us to cost exactly the same cost estimate as marked & released in JAn)
Could somebody pls give pointers as how to get this sales order plan cost itemisation exactly equal to prevously marked & released itemisation ?
We use the Std costing variant ( Costing Type = Profit center valuation) with Std date control.
Thanks in advance to all of you,
Warm Regards
Dhiraj

Hi,
If the sales order stock is valuated, you have immediate access to its value in Financial Accounting. The assigned accounts are debited and credited as a result of the valuated goods movements. From the viewpoint of MRP, the sales order stock is available for the sales order only.
If the sales order stock is not valuated, it is managed via a cost collector. The system does not carry out invoice verification postings for goods movements, and you cannot obtain an overview of how the stock is valuated until the end of the settlement period in Controlling.
Valuated sales order stocks have the following advantages:
The full costs are available at each manufacturing level.
All goods movements are immediately reflected in Financial Accounting
Assign points if helpful
Regards,
Saurabh

Similar Messages

Product cost by sales order with Valuated Sales order stock

Hi Gurus,
I am working on Poduct cost by Sales Order with Valuated stock. but i have doubt ragarding to Cost estimation.
1.In sales order scenario also Standard Cost estiamtion (CK11n and CK24) and Marking, Releasing is Mandatory? if not how can we estimate the cost?
2. If we are estimating the cost by using Standard Cost estimate, when can we estimate the cost?
can anybody please give me the steps which we are following in Poduct cost by Sales Order with Valuated stock from starting to end Settlement
Thanks&Regards
Prasad

Hi,
there are 3 types of scenarios in MTO.
In Two scenarios Sale Order would be cost object - (Non-Valuated Sale orders stock and Valuated Sale Order stock with Sale order being Cost Object)
In third scenario (Valuated Sale Order Stock without Sale Order controlling), Only Production Order is the Cost Object.
In all the cases wherever the Sale Order is the cost object, Sale Order is the final Receiver. Only the difference is that in valuated sale order stock, stock entries would be passed to FI and in non-valuated sale order, no goods movement for FG will be there.
Please let me know if you need further details in this regard
Surya

Valuated Sales Order stock for Semi-Finished Products

Dear Gurus,
One of my client faced the issue that the semi-finished products is valuated-sales order. We are in Mill Industries, downstream (steel processing). The situation is:
1. We use configuration material for both finished and semi-finished products. Both are valuated at standard costs with valuated sales order stock.
2. Once the sales order is created, the cost estimates are created for both Finished, and semi-finished products.
3. The production orders is created for the semi-finished products. During production, several semi-fg and fg can be manufactured at the same time. We are using the co-products feature to cover that.
4. During the goods receipt of semi-finished products, instead of using the standard costs in sales order cost estimate, it use the planned costs in production orders which against our design.
I tried to use the user exit COPC002 and influence the standard costs. But it seems that the routine is not called for semi-fg at all. Anyone has any light on this?
Regards,

Hi
I think you are talking about Special Stock "E"...ie) Sale Order Stock...
If my understanding is correct then,
If you go and see the Table T156....For the
Movement Type: 101,
Special stock Indicator : E,
Qty. Updation Checked,
Val. Updation Checked,
Movement Indicator : Against PO,
Consumption Indicator: Sales Order Stock.....combination....the transaction Event Key....GBB only has been Assigned....these settings you cannot change...
This linkage you can view in OLMW-----> Account Determination -
> Acc. Determination W/O Wizard -
>Account Grouping....also
Reward if useful
Regards
S.Baskaran
Edited by: baskaran srinivasan on Dec 20, 2007 12:18 PM

Valuated Sales order stock with CO Production Order

Dear All,
Our clinet is manifatcuring cables and having 2 plants, for one plant we have configured PP module so we are arriving valuated sales order stock, for another plant we didnt configured PP module so we planned CO production order, but where as we are not meeting our ultimate goal i.e; valuated sales order stock.
So please guide me how to arrive valuated sales order stock with CO Production Order.
Thanks & Regards
Narasimham T

Valuated sales order stock is not dependent on PP, so you should be able to still to use it. The requirements class associated with the sales order item determines whether the item is valuated sales order stock and it also determines the valuation method. If you do not have Boms and routings in this plant you can still value the line item based on the material valuation in the material master. You can also value it based on a unit cost estimate that can be created seperately for the sales order item. Justt make the desired settings in the requirement class.
thanks,

Sales order costing and valuated sales order stocks

SAP Gurus
Can somebody explain the key configurations and account postings in sales order costing and valuated sales order stocks in product costing using the specific tcodes.How the process moves from one configuration to the other?
Use of examples will be appreciated too
Thanks

hi rback59
Thanks for your valuable reply
i completely agree with your point regarding valuation . but want to know what is the impact of recosting of a sales order . as system only picks first goods receipt cost all the time . then what is the use of recosting ?
Thanks
Sachin

Difference between Valuated and Non valuated Sale order stock

Hi All,
Can anybody tell me the difference between the above said subject with the steps involved in each scenario.
That is valuated sale order stock and Non valuated sale order stock in Product cost by Sale Order.
With Journal entries at each step and whether any WIP or variances at Production order level and sale order level and all the financial entries related to them
Thanks in Advance,
Ravi Kumar

Hi Shail,
Thans for your inputs,
But I wanted to know it in more detail. In what scenarios they are used with financial entries in both the cases.
I will give you my scenario. It goes like this,
My client is in pipe coating business, who receives pipes from customers and does only coating work(which is considered as service) and despatches it to the customer. this process is carried on the basis of work order(Sale order).
Now Production order is created and work is done on that with reference to Sale order for that particular customer.
So the pipe which my client receives should be non valuated stock as it will not be a raw material to them and the cost incurred on it is booked on production order like chemicals as raw material consumption, activity cost etc.
now in this scenario just tell me how and at which stage FI entries get generated at Production order and Sale order level, and also at wat level Standard cost estimate should be created i,e at production order level or sale order level(sale order cost estimate).
Will there be any entries at goods isssue and GR against production order. If no then how the COGM account will get hit.
Please tell me this scenario in both cases Valuated sale order stock and Non valuated sale order stock with financial entries in Sale order costing.
Thanks & Regards,
Ravi Kumar

Valuated Sales order stock - Goods Receipt

Greetings,
I am trying to better understand the concept of 'Valuated Sales order stock" and I read in the SAP documentation that:
"When you are using a valuated sales order stock, externally procured individual requirements materials are assigned to the sales order stock at the net order price at the time of the goods receipt"
But I find that in our SAP system, this is not the case. Externally procured materials are valued at whatever price they are costed in the sales order they are used.
I can have a PO whose net price is 5000 Euros for Material X but if that same Material X is costed at 8000 Euros in the Sales order to which is it used, the GR for Material X will be at 8000 Euros.
(the PO for Material X is assigned against the sales order).
Perhaps I am misunderstanding what is meant by "externally procured individual requirements materials"?
In the example above, material X is not the Finished Goods sold to customer through the Sales order. It is a component that is involved in the production of the FG.
It seems to me more logical that Material X value be based on the cost estimate computed in the sales order rather than on the PO Net price...
Thanks in advance for your valuable feedbacks!
Best regards,
Sylvain

Hello Nikolas,
Thanks for your answer.
Yes, we value our inventory at Std.
(Is this why the GR is valued at Sales order cost estimate and not Net Price?. SAP does not mention this in its documentation)
I understand your point but my argument is based on the fact that if a purchased material (Material X in my example) is received into stock at the Net Price value, then, there will be a mismatch between
- the Cost Estimate of Material X in the Sales order (Material X will be valued at its Std there, based on our Costing variant)
and
- the value at which this Material X will be consumed in the Production process (since it will be at Net Price).
This would cause a Production variance to be recognized since the actual costs to produce the Finished good would be different from the Cost estimate of the Finished Good in the Sales order (and the cost estimate in the sales order determine the COGS of the Finished Goods in accounting).
The difference of 20 you mention is treated as a Purchase Price variance in our case. That PPV is assigned against the Sales order.
Best regards,
Sylvain

Non valuated sales order stock-help reqd

Dear Experts,
My client is into Pipe coating business who receives the pipe from the customers, coats it as per there requirements and dispatches it thereon. There is no concept of FG here as its only the service he is doing on it and also when he receives the pipe there is no raw material cost on it. Raw materials for him would be chemicals etc which he uses to coat the pipe.
This is the case of NON Valuated sales order stock.
1) non valuated GR will be done for customer stock -Only QTY update
2) sales order bom will be created with defined characteristic.
3) Plan cost of sales order will be updated based on Costing ID setting
4)Production order will be created based on Sales order.Good issue and Activity confirmation happen at Production order level but Good received only QTY but no value update.
5)Production order will be settled on sales order.Settlement profile of production order type must contain COST ELEMENT tick under settlement.
6)now my sales order contain actual cost of production.
7)No accounting document will be generated at PGI.
8)only accounting document will be generated at Billing.
9)Only COPA Document will be generated at Sales order settlement. I am going to create PA transfer structure in order to post COGM cost component wise.
Mi missing something?
Question
1) Whether all steps are correct
2) There will be no standard cost release and no variance calculation as well.
3)How can i use RA under non valuated sales order stock?.
4)HOw can i use customer stock under sales order bom with non valuated value?
5)How i will do Production order GR Only qty update?
regards
RK

Hi Raman
All steps are correct.. You seem to be an expert now!
THere wil be no Std cost release or variance calc
You can set up RA based on costs or Revenue... 1st of all check with your client whether they would like to have any WIP in this case
you can receive the customer supplied pipe using 501E movement as Non val
GR - Only Qty Update is controlled by Req Class... You need to leave Valuation field BLanlk in Req CLass and choose Acct Assn Catg E
br, Ajay M

Material Ledger Functionality with Non Valuated Sales Order Stock

We are in the process of setting up Make To Order (MTO) with Non Valuated Sales Order Stock. We currently use the Material Ledger in our other businesses that use Process Orders.
Does the Material Ledger functionality support MTO with Non Valuated Sales Order Stock? I have been testing this and have not yet figured out how to get ML postings. We are using production orders that settle to sales orders. We do not bring this into inventory, the costs reside on the sales order.
If this functionality does exist, I would assume I need to configure the Material Update Structure but I cannot find any documentation on this.
Any help would be appreciated.
Regards,
Greg

Hi Greg,
no, material ledger will not be able to calculate and allocate actual costs for the sales order in the scenario you describe. It would of course, if you used the valuated sales order stock.
Generally SAP sees in the valuated sales order stocks (avaliable since 3,1 or something) a great improvement and no real reason to use still the non-valuated scenario.
best regards,
Udo

External Procurement with a Valuated Sales Order Stock

Hi Experts,
I read the following in SAP Help,
For external procurement with a Valuated Sales Order Stock, system generates a purchase requisition from the sales order.
If you are using a valuated sales order stock, the externally procured material is assigned to inventory at the time of the goods receipt. If the sales order item is flagged as carrying costs and revenues, then when the goods issue for delivery to the customer takes place, the sales order item is debited with the costs of the externally procured material.
My question is - it says costs of external procurement is debited to sales order item when " goods issue for delivery to the customer takes place"
- but in my case, when I made the GR for purchase order (created automatically by sales order), system directly posted the procurement cost as actual costs to the sales order item. There is no delivery for sales order done still.
So actually, when should the external procurement cost be debited to sales order item -- when GR for purchase order is done (or) when goods issue for delivery to the customer takes place?
Thanks,
GAN

Hi Rafi,
Thanks for your reply. I understand the problem now.
Material which comes from prod order is posted statistically (value type 11) to sales order when GR for prod order is done.
Here, the issue is about a GR for purchase order (assigned to sales order). This material purchased is not used in any production process. Its a material which is supplied to customer along with main material produced in house.
In purchase order, I have given the consumption account (which is cost element 1). Entry was Consumption Dr and GR/IR Cr. So, this posted as actual cost to sales order.
I should have given inventory account in purchase order (with cost element 90).
Its a mistake of using consumption account in purchase order.
Thanks.
GAN.

Non valuated sales order stock explanation

Dear All,
Can anybody explain me Non valuated Sales order stock briefly.
I know some of the basics about this scenario but i would like to know more about this scenario.
appreciate your explanation.
Regards,
kishore.

With non-valued sales order stock you must also enable the sales order as a cost collector. All costs and revenues can then be assigned to the sales order. Goods movements for the finished good are performed and quantities tracked, however, the goods movement have no value and no financial impact.
For example, you manufacture a product and all the cost to manufacture the product are assigned to a production order. You do a goods receipt to record the produced quantity and the inventory quantity of the sale order stock is increased. In a valuated sales order environment, this transaction would debit inventory and credit expense. In the non-valued sales order environment, no financial posting is made and the costs remain on the production order.
When the goods are later sold, the quantity is removed from sales order stock, but again no finacial posting is made to account for the inventory since it is non-valued. The only financial posting would be to charge the revenue amount to the sales order with an offset to A/R. So at the end of these transactions all the cost and revenue are residing on the production and sales orders. You do have the option of settling those amounts to COPA.
thanks,

Product Costs by Sales Order - Settlement Options?

Hello All -
I am trying to understand if I need to settle to a sales order (SDI) or directly to material (MAT) or to COPA (PSG).
If i look at my sales order, it has item category ZPSF, which product costs by sales order configuration shows a requirement class ZKE. ZkE has a valuation of M, which means separate valuation of reference to sales document/project.
Does this mean I need to settle to sales order first?
Then i run vA88 to settle sales order to copa?
if ZKE valuation is blank, does that mean its not valuated? I have read on other sap help pages that means it is valuated. Please clarify.
also, when does one directly settle to MAT? what scenarios? this confuses me.
Thanks!
Emmas

I'll give this a try. When working in a make-to-order environment there are 2 settings in the requirments class that you must consider in determining how to settle the costs (and maybe the revenue as well). The first setting is the account assignment category. In the standard system "E" is used to designate the sales order as a cost collector. "M" is used to if you don't want the sales order to be a cost collector. Whether the sales order is a cost collector or not will determine your settlement options.
The second critical field is the valuation setting. If you set it to "M" then the stock assigned to the sales order will be valuated (by valuated I mean that once the goods are produced they will be held in inventory as sales order stock with a value). If you leave the valuation field blank then the stock assigned to the sales order will be held in inventory without a valuation.
If the sales order is not a cost collector then the cost to manufacture the order will be collected in your production order and the settlement rule for the production order will be to the material you are producing. Since the material has a valuation, the costs collected in the production will be reduced by the material's valuation once it is received into finished goods inventory. Any remaining costs are settled to wip or variance based on the production order's status and the RA key and variance key settings.
If you have set the sales order as a cost collector then the production order costs can either settle to the finished material or to the sales order. If you are using valuated sales order stock you would normal have the costs settle to the material and the production order would behave very much like the previous example. If you are not using valuated stock then you would need to settle the costs to the sales order and all the production costs would accumalte in the sales order.
If you are using the sales order as a cost collector than you will probably want to settle the sales order as well. During the sales order settlement you have the option of settling the cost and revenue assigned to the sales order to COPA. The settlement profile along with the RA key assigned to the sales order controls how these are settled.

Product cost by sales order - conceptual clarity required

Hi,
We are a manufacturing company with both Make to Stock and Make to Order Scenarios. In cost object controlling, we have made the settings for product cost by order. Now, the question is whether product cost by sales order is a mandatory setting in MTO scenario. I understand this is a conceptual question but i never got the clarity after reading help files, threads and blogs.
I'll put down my understanding - pls correct me.
If i do the product cost by sales order, there will be a statistical cost object ie sales order. Now every cost incurred (with a component split) will be recorded stastically in the sales order in case of production orders created from S.O.s
If I don't do the setting i cannot get a component wise split for the cost of sales order to do any analyses. but still I'll have the COGS which i'll capture to COPA and take the profitability.
Can you please give me some more clarity on this scenario? Are there any other factors/ advantages/mandates in product cost by sales order?
Best Regards
Vimal

Hi Vimal
Prod Cost by SO is done in the case of MTO.. Here, you have 3 possible scenarios
A. Only Qty i.e. GR from Prod order is tagged to Sales Order.. Sales order is not a CO Object....
This scenario is as good as MTS... Only that GR is tagged to SO....
Your costs are collected on Prod order....
PGI uses GBB-VAX i.e. does not post to sales order... Billing updates revenue and COGS to costing based COPA
B. SO is cost obj with non valuated stock (SAP recommends this)
C. SO is cost obj with valuated stock...
B -
Prod Order is settled upon sales order.. GR from prod order does not update any acc doc
Sales order is settled to COPA.. Here you can use a PA Trf Str where in you have replicated your Cost Comp Str... i.e. You can create as many assignment lines in KEI1 as your CCS in OKTZ and assign each one of them to a separtae value field
No question of variances in this case
C
Prod order is not settled upon sales order.... GR from Prod order updates acc doc.... However, variance from prod order can be settled to the sales order if you create variance account as a cost element... Else, it is settled to COPA
Upon PGI, the COGS is posted to Sales Order as a single line item
Here, in your PA Trf Str, you would create an Assignment line and tick "Qty Billed/Delivered".... This would update the Billing Qty to COPA upon settlement of Sales order
This Qty update will trigger KE4R.... i.e. You need to assign CCS to VF in KE4R for PV=01 and Rec Type = C.... This would update the CCS in COPA as per the Sales Order cost estimate
The Costing Key in KE40 should refer to "Sales order cost estimate" and not "Std Cost estimate"
br, Ajay M

Product costing by sale order

Dear all,
Please tell me the process in product costing by sales order.
In my client place, i have done the configuration but i dont know the process.
Please guide me.
Thanks & Regards,
AR

Hi,
Product cost by sales order is useful when a finished product is manufactured for a specific customer rather than for the normal make-to-stock inventory. You can use the Product Cost by Sales Order component in the following situations:
When you are manufacturing in-house with reference to a sales order in complex make-to-order production
When you are purchasing customer-specific trading goods with reference to a sales order and reselling them to your customers
When you are providing services whose costs are assigned to a sales order
When you want to collect the sum of the actual costs incurred for the sales order item on the sales order item (standard cost of goods manufactured of sales plus variances) For detailed information, refer to the sections Valuated Sales Order Stock and Settlement in Product Cost by Order or Period.

Different Method to valuate sales order stock

Dear expert,
     I came across a problem and I need your help:
     Scenario: Make-To-Order production without sales order controlling. Uses standard price in material master record.
     As we know, There are a predefined sequence to valuate sales order stock: First, The system uses the standard price on the basis of your customer exit COPCP002 Material valuation for valuated sales order stock. If not defined COPCP002, Then, the system uses sales order costing. Then, the system determines the standard price using the production order cost estimate. At the end, the system determines that If you manufacture a material both for the make-to-stock-inventory and for the valuated sales order stock, the system reads the material master record of the collective requirements material.
     In SAP online Help, there is a note that: If you calculate the standard price of sales order stock in a preliminary cost estimate for the manufacturing order or use the price in the material master record, you cannot transfer cost component splits into COPA. This is my doubt: I don't know exactly where are the differences between sales orde costing and standard price in material mater to determine sales order stock.
     So, I have a question: What are the extract diffences between using sale order cost estimate and the standard price in the material master record to determine valuated sales order stock?
     Thanks for your help. Best regards,

What you said is exactly what I want! Very thankful for your help.
Yes, I have found that in EBEW table that standard price is valuated with preliminary cost estimate because I don't give a sales order cost estimate but I give an sales order stock in the customizing - requirement class. So, I have this question that how the sales order stock is determined.
In COPA customizing (COprofitability analysismaster datavaluationSet up valuation using material cost estimate), standard cost estimate or sales order cost estimate can be transferred into COPA value fields in our system.
But, I have still have a question: I found in our system, preliminary cost estimate in the linked production order is determined for valuation of sales order stock in EBEW table. As sap online help says, cost component splits can not be transferred to COPA.
So, according to SAP online help, I think what you said u201Cu2026..However , when we start thinking about the result of this cost to flow into COPA , this cannot happen as the Inventory was valued with a Preliminary csot estimate. So , the Online help says that it will not be able to transfer Result of Preliminary cost estimate into COPA for transferrring COGS details. System would always require a Standard cost estimate or a Sales order Cost estimate to flow Cost details into COPAu201D is correct.
But, in our system, cost component can be transferred into COPA!? When I create a sales billing (invoice) with tcode VF01, it can create a profitability analysis document (shown in VF03) which it had a cost component split for that material in the sales order stock valuated with the preliminary cost estimate. Or where is stored for the Make-to-Order materialu2019s cost component split in COPA?
That is the real point that confused me. Hope you can help me. Thanks very much.

Product costing valuated sales order stock

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