Sales order costing (MTO) Variant configuration.

Hi,
Basically there 3 different types of finished castings :
1.     Special finished Casting u2013 which is a configurable material . this casting is saleable as well as can be used for manufacturing machined castings. This casting is been manufactured at plant : 8110 only. The planning strategy maintained is 25 (make to order with configurable material)
2.     Machined Casting u2013 this is also an configurable finished material which can be sold as well as can be used as an BOM for manufacturing Assembly castings. This casting gets manufactured at plant : 8130 only. The planning strategy maintained is 25 (make to order with configurable material)
3.     Assembly casting : this is also an configurable finished material which is always saleable. This casting gets manufactured at plant : 8130 only. The planning strategy maintained is 25 (make to order with configurable material)
Scenario which is as follows :
1.     Customer gives the PO for assembly casting at 8110 plant code.
2.     Therefore Plant : 8110 will generate the stock transfer order to 8130 for assembly castings
3.     For manufacturing of assembly castings in 8130, the plant needs to manufacture Machined castings in 8130 plant and for manufacturing machined castings in plant 8130 , the plant requires special castings which is been manufactured at 8110 plant.
4.     So, firstly Special castings will get manufactured at 8110 plant with the reference of assembly sales order .
5.     After that stock transfer for special castings will be done from 8110 to 8130 plant .
6.     Then customer would start manufacturing machined castings
7.     And then finally manufacture assembly casting
8.     Finally assembly castings will get transferred from 8130 to 8110 plant for sale
9.     Sale of assembly castings from 8110 plant respectively.
Touch points of the scenario:
1.     Cost of special casting and machined castings should get rolled up to the assembly castings
2.     These needs to be executed in MTO scenario only because of variant configuration
3.     While doing the stock transfer, the cost should include transfer pricing as well
Problem Statement :
1.     We understand that for configurable material , you cannot run the standard cost estimate, therefore the material master price with price control u201CSu201D is always zero. So when do the stock transfer from of assembly cast or special cast for one plant to another then cost update happening at both the plants is zero.
Please suggest some better solution for incorporating this scenario inclusive of the touch points.
Thanks...

Dear Srinivas,
You can post this query to SD forum also for better response.
Regards,
Rakesh

Similar Messages

Sales order costing - MTO Scenario

Hi Experts,
I am working on SAP ECC 6.0 on a Make-to-order scenario.
I have created sales otder; run MRP for the sales order and converted the planned order to Production order and confirmed the production order.
But I don't know the period end processes of make to order scenario. Please answer my following queries:
Whether <b>WIP</b> will be calculated at Sales order level or individual production order level related to this sales order?
Whether <b>variances</b> are to be calculated at each production order level or at sale order level?
Which t-code should be used for calculation of variances if it is calaculated at sales order level? The production orders have TECO status.
Whether variances are to be settled at sales order level or each production order level?
Which Transfer Control should I use in Costong Variant "Sales Order KDN" or "Complete Transfer"?
Please also forward me some documents, if you have, which explains the whole step by step cycle from creation of sales order to settlement of sales order.
My email id is [email protected]
Request your help.
Thanks & Best Regards,
Bijay Kumar Deo

Hi Bijay
To add few more checks and points - please note the following
1) Whether WIP will be calculated at Sales order level or individual production order level related to this sales order?
A) You need to selected RA for sales order in WIP RA version to ensure WIP is calculated for production orders which are linked to sales order
2) Whether variances are to be calculated at each production order level or at sale order level?
A) This would depend on whether u r following valuated or Non Valuated sales order stocks / costing
If is is non valuated u cannot determine variances, actual costs of production order are settled to sales order item
If it is valuated sales order following sales order costing, you can transfer production varainces to sales order item
3) Create settlement profile having sales order as valid receiver and assign profile to production type created for the sales order - MTO scenario
4) Which Transfer Control should I use in Costong Variant "Sales Order KDN" or "Complete Transfer"?
4A) Suggested to have complete transfer as transfer control strategy
Hope the above clarifies. Please assign points if useful as a way to say thanks
Any more suggestions / corrections to above points for the above scenairo are appreciated from forum members

Sales Order text for Variant Configuration

Hello
I have researched my issue and also have asked other peers for guidance. I feel that I am really close to getting my issue to work but I am not sure what I am missing, so I am hoping that someone can give me some advice as to what to check please. See below for the description.
My issue is in reference to SD Variant Configuration and is outlined below.
Overview
Main Unit is a radio test set
Test set can have an upgraded software
Example
Model 6015 u2013 standard test set
Model 6015T u2013 Upgraded software test set
Model 6015V u2013 Upgraded Software + test Set
Requirement
Use same Material Number using Variant Configuration for the upgrades
Price is to default to the Upgraded price
NOTE:
Our materials are already established and are set up as material type Finished Goods; ERLA item category; sales order item category is a copy of TAC. I am using a Configurable Material type KMAT, item category 0002 and linking to the FG material item category ERLA in the material master.
I have created the Material Variant (KMAT) in MM01
Created the characteristic in CT04
Created Classification in MM02 for material FG
Created Super BOM for Configurable Material in CS01 and added the upgrades as Alt Bom 2 for upgrade and 3 for Upgrade+. Also added the Alt BOM text
Created Profile of configurable material in CU41
For the Material I added the configurable material to MRP 3 screen in MM02
Created the BOM link in CS40
I simulate the material in CU50. I enter my material; select the icon for configuration, I can see the characteristic Value Assignment nad see my characteristics Description. I go to the value and use the drop down I then see the pop up of all the different values.
I have created Characteristic Reference VCSD_UPDATE_ARKTX with table VCSD_UPDATE and field ARKTX - no values
I have created a characteristic Test_Choice with the 2 values one is Test Upgrade 1 and the other is Test Upgrade 2. Both of these have the description as well.
For Material Text:
I have set up a reference characteristic using 30 character format (named VCSD_UPDATE_ARKTX),
with table name VCSD_UPDATE and field name ARKTX.
Then in the Configuration Profile(CU42) for configurable material, added a procedure(named PR_PRODUCT_DESCRIPTION) to the dependencies which contains code that sets the description
$self.VCSD_UPDATE_ARKTX = ''Test Upgrade 1u201D
If $self.TEST_CHOICE = Test_Upgrade_1,
$self.VCSD_UPDATE_ARKTX = ''Test Upgrade 2u201D
If $self.TEST_CHOICE = Test_Upgrade_2,
When Entering the sales order for Material Number XXXXXX, I receive a pop up that I can select which Alternate BOM (from CS02) I would like. I select my line item and then select the configuration icon at the bottom of the sales order. I see again my characterestics values (the same as CU50) but am unable to select the radio button. Not sure if this part is standard. Still no change in the sales order line item. I have validated that I am using a copy of the standard TAC item category. How does the text change to the correct value? Am I missing a seeting somewhere. Please provide any guidance with this as I have been trying to get this to work for over a month.
Thank you for your time. It is greatly appreciated.

I have figured out that this will work if I go to the standard material (it is not KMAT but it is a FERT material type) and set the flag in the Material Master Basic Data 2 tab that this is a configurable material and not use KMAT material type for a super BOM. The text changes for this scenario so it give me hope.
This is not ideal, as I want to use the Super BOM because there are different variations (non stock items) that I need to pull through on the picking list in order to tell the end user which option needs to be loaded in the standard material. At least I know the text can change on the sales order; but I am still struggling with the use of the super BOM and changing the sales text when there is use of a super bom as you tie that to the MRP 3 screen of the FERT material type. I can set everything up, but the text will not change if I set up the material master this way. Guidance is appreciated.
Example
Material 72433 (FERT)
on sales order I enter 72433, my alternate BOM comes up with different Options. Alternate BOM 1 is standard configuration; My Alternate BOM 2 has Option 3 and 4 while alternate BOM 3 has option 5 and 6. Alternate BOM 2 is a 6015T and Alternate BOM 3 is a 6015V.
I want my sales order to pull through the text of 6015T or 6015V, whichever is chosen. I want my picklist to print out the option that was selected.

Sales order costing- engineer to order production

hi
we have a scenario where the production is started based on the sales order. The product is not standard product, for every sales order the product changes i.e. the material code should be created along with the sales order at the same point.
1. Bom is not available for all collective requiremnts at the time of sales order creation therefore the sales order costestimate calculated on the same day of sales order creation does not give the true picture
2. the chance is that the product that may be produced for the sales order may be after 6 months also, hence the production people are not ready to create bom for the sales order related product
my question is can we suggest sales order costing in this scenario.
krishna

Hello Krishna
In this case, I think you should suggest for sales order costing with variant configuration since the product is not standard and changes for every sales order. The sales order BOM needs to be created and a cost estimate should be taken. If the details are not available then the sales people should edit the sales order through VA02 later and rerun the cost estimate. After the BOM is finalised the production process may start.

Variant/Sales Order Costing: Plz suggest

Hi Gurus,
My scenario is that the company is making machine tools -
A machine is assembled from about 60 sub-assemblies (60 sub-assemblies in BOM).
Which can be produced in-house or purchased. Each of these sub assemblies have
further child sub-assemblies. This BOM explosion may happen till about 4-6 levels.
In some cases, the suppose the customer already has certain machines which have
say servo motor sub assemblies from Seimens. He would prefer his new machines to
have same servo motors (so that maintenance is easy for him or say his trust lies
in servo motors of 'Seimens' make).
So, at the time of making the order for purchase of a new machine,
the customer may negotiate the scope of supply of parts/sub-assemblies as well.
As a result -
1. Some sub-assemblies (say about 25 of the 60 in the BOM) will be purchased by
the customer at his own end and provided to the machine tool company to be fitted
into his machine. (e.g. he will purchase directly from Seimens and send it to you
to be fitted into his machine.)
2. Some sub-assemblies may be produced by the the machine tool company in-house.
3. Some items may be purchased by the machine tool company from their vendors though
they can also be produced in-house. (e.g. you may decide to buy the sub-assemblies due
to shortage of time for production or there is request from the customer that please
use particular hydraulic components of 'Vickers' make).
In addtion, the customer may also ask for commercial quotation for the machine based on any
of the above permutation combinations (e.g. what will be the price of the machine if you procure all the components or what will be the price if he provides one or more materials). We would also like to view
profitability with respect to each order. How do we do that ?
We are in a position to freeze all this data at the time of punching the sales order.
We will then run MRP.
The MRP should provide the following -
1. Planned/production orders for materials to be produced in-house.
2. Planned orders/purchase requisition for materials to be purchased from Vendors.
3. Some PR (or return sales orders or some other document) to get material from the Customer
so that we are able to follow-up incase he delays sending the materials.
4. In case the sub-assembly is to be purchased the system should not give production orders for its child parts.
Kindly suggest how to map a solution of this scenario.
Shud I make Sales order BOM or variant configuration or what ?
Thanks and Regards,
-V

Hi Vishal,
I suggest that your cost of BOM is so dynamic and everything is driven by the Customer, it is better to go for Make to Order (Make to Sales Order) where you can cost it as per the customer instead of having a Std cost.
But inspite of having Sales order BOM, your requirement would drive each sub-assembly would have a make or buy decision (Procurmenet types - Both), so you might need to go ahead with Split Valuation where you can maintain one valuation with Inhouse Production and another valuation with External Procurement.
I dont think Variant would suit your requirement.
Regards,
Suraj

Routing data for configurable products (Sales order costing)

Hi
I am runnign sales order cost estimate for configurable product. here I want to confirm the activity quantity with cost estimate.
Pls let me know where can I check the activity quantity information . Pls help
Thanks
Sneha

Hi Sneha
I am bit confused with the terms you used..
you cannot confirm activity qty while doing cost estimate... Activity confirmation happens during Production Confirmation
Are you talking about missing activity qty/cost in sales order cost estimate?? Contact your PP consultant... You should have a routing attached while creating the sales order.. If that is there, then Activity cost would show up in the sales order cost estimate
Br, Ajay M

Purchasing condition for sales order costing

I am trying to add a condition to a purchasing document calculation schema that retrieves the sales order cost for a configurable material. I am using account assignment of M for this purchase order and have tried several settings in a conditin type. But no cost is ever found. Has anyone ever tried this?

Hi Arpit,
1. Go to t-code SWO1.
2. Click Settings -> Delegate.
3. Delegate the BO YBUS2032 to the BO BUS2032.
In workflow perform the following steps:
1. Go to t-code SWDD and open your workflow template.
2. Go to Basic Data (cap sign button at the top of the screen) or click Ctrl + F8
3. Go to Start Events tab.
4. In the Object type enter your BO name BUS2032 (not YBUS2032), in Event of object enter the BO event.
5. Click on 'B' i.e. Binding Defined, click on generate automatic binding. It would automatically generate the appropriate binding for the workflow. You can also alter the binding as per requirement.
6. Click on 'C' i.e. Start Condition. A dialog would open, select the appropriate start condition for the workflow. Use the attribute that you created and make the start condition. Check the condition before saving (recommended).
6. Click on 'A' to Activate the binding and start condition. All 'A', 'B' and 'C' would get green.
7. Save the changes made and activate your workflow.
Hope this helps!
Regards,
Saumya

Sales order costing for Configured Material (Material Variant Not KMAT Mat)

Hi All
For a Configured Material (Variant) (Not KMAT Material), which is having Std price costed.
But if we create a Sales Order for the Configured Material, what options are availale to Execute Sales order costing and take the sales order value to COGS during Delivery.
The reason being Client wants to Cost BOM items are price which is different from the Price used in Std cost estimate due to Price Volatility.
I can understand we can do this in KMAT, but not sure how to do in Conifgured material. We can execute sales order costing and get Statistical cost value in EK02/EK01, but how to get this value posted during PGI..?
Thanks
Aravind

Hi Ajay
Even if i maintain M in Valuation filed, my Material Variant HALB material is already having standard cost in its material master and it is picking the std cost during PGI Delivery and hitting COGS A/c.
Now how to get my sales order costing to real and post my sales order costing value to GI..this is the client requirement.
Due some complication KMAT is not used and logistics go with Material Variant

How to Copy Cost Estimate from Quotation to Sales Order in MTO Scenario

Hi,
We are working on a MTO scenario- Sales order Costing with Valuated Stock.
And our case we are creating the Cost Estimate at the time of Quotation using PP qty structure. Now we wan to transfer the cost estimate to Sales Order as we don't want to recost the sales order.
Currenty it's transferring only the EK01 condition as total planned costs in Sales order but we want to see the itemization also.
Please suggest is there any way to transfer this cost estimate with itemization from Quotation to Sales Order.
Regards
venkat

Hi
As far as I know the CO esimate does not get copied from Quotation to Sales Order
You need to recost the SO again.. If your Qty Structure has not changed between Quotation to SO and your valuation variant is also the same - it would give the same result
br, Ajay M

Sales Order cost estimate with variant config

Hi
I'm hoping for some advice on costing on a variant material.
I have created a sales order for a variant material and ran a cost estimate to get costs for the sales order. Should this populate a cost condition within the sales order pricing? How can the margin be seen in the sales order?
Thanks for your help.
Ashley Shannon

Hello Ashley
Yes, if you have done your settings correctly, especially Requirements class set up (see the documentation link), then the cost estimate will flow to a condition type in Pricing, usually EK01/EK02 conditions. These conditions are used to calculate sales prices (PR00) in cost-plus (mark-up) scenarios.
Link: http://help.sap.com/erp2005_ehp_04/helpdata/EN/90/ba6da4446711d189420000e829fbbd/frameset.htm
However Profit margin as calculated in a sales order comes from VPRS condition (which is based in Material Master) and is the difference of net value and VPRS condition value in normal circumstance.
Hope other more knowledgeable experts will weigh in.

Sales order costing is not possible for recursive configurable material

User is creating cost estimate for sales order, where system is throwing above error.
The diagnosis is like below
The system recognized that the BOM structure being costed is a recursive production process in which configurable materials are used. This scenario is not supportive by sales order costing
System resopose
Material XXXX in plant XXXX can not be exploded further.
If anyone has come across such error or knows the solution, please help.
Thanks

Answered

Sales order costing after changes on configuration or sales order BOM

Hi all
Our sales order items requruire an sales order costing. This is done automatically, when saving the sales order item:
Settings in requirement class:
- costing: X (costing required)
- costing-ID: B (automatic costing and marking)
This works perfect, means the sales order receives a caluculation that is marked.
Now, something is changed on the sales order BOM with transaction CU51
It seems, that each time you change the BOM you have to ensure yourself, that the costing of the sales order items (via VA02 -> extras -> costing) has to be performed manually.
There is no SAP standard process, that does this automatically.
Thanks for your feedback.
Pius

Dear Pius,
System cannot take the changes from the BOM and execute the cost estimate automatically.
Need to refresh system when the changes are happened i..e need to execute the Cost Estimate once again.
Kind Regards
Umapathi G

Sales Order Cost Estimates -- Versions?

In our MTS plant we are creating cost estimates each month with different version numbers so they can easily be compared to review cost changes.
This concept in our MTO plant is (of course) a problem.
We would like to create a dummy sales order and on each line list a KMAT and build an "average" configuration. We use variant config, so the sales order bom is built automatically. It also costs automatically. We would like to save this cost estimate and compare it with a cost estimate of the same configuration next month. I do not have an option for version CK51n, nor do I see a Costing Date in KEKO table. Either of these items for MTS would create a second cost estimat and allow comparison.
Is there a way to compare Sale Order Cost Estimates across periods?
Any other suggestions as to how to obtain the required data??
Thank you for all suggestions!!

Any one think of a solution?
thanks

Sale order costing process : Help required

Hello All,
Belatted Happy New Year 2011 to all.
I have a question related to Sale Order Costing. It goes like this,
My client is into Pipe coating business who receives the pipe from the customers, coats it as per there requirements and despatches 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.
And also this demands variant configuration from SD and PP angel.
As this scenario is customer specific, it demands Sale Order based costing(Sale order cost estimate).
My doubt is, how the sale order costing process goes with.
In general scenarios, Make to stock, we use production order based costing where standard cost estimate is calculated for planned cost and actuals are incurred on PO settling the variance to COPA
Similarly how the costing goes with if Sale order cost estimate is used. What i think is, here instead of Standard cost estimate for plan, we will go with Sale order cost estimate at sale order level, and incur actual cost at production order and settle the cost of Production order to Sale order. Correct me if i am wrong, and request you ppl there to explain me the process of costing in the scenario said above.
apart from that, my client wants the flexibility to change the cost estimate at quotation level.
Please suggest me with solution explaining the process of costing here.
Thanks in advance,
Ravi Kumar

Hi Ravi
Your understanding of the scenario is very much right...
In your case, you need to have sales order as cost object...
Process
Your stock would be non valuated stock, because the FG is not your stock.. You are just doing a service
Based on the characteristics chosen in the Sales orders, system would determine the Sales order BOM
Based on sales order BOM, Sales order cost estimate would be calculated....
You would receive the Customer pipe in your stock against the sales order... It would be a non valuated GR... You can track the Qty only
Sales order would trigger a production order... The prod order can have its planned cost, which is only for information sake
The Customer Pipe, Chemicals would be issued to prod order to coat the pipe... And also Labor/machine hrs may be confirmed
There after your production order would be settled on Sales order
Then you would do PGI (Post Goods Isue).. This will not trigger any accounting doc
Then you do billing... The sales revenue would be posted on the sales order
Then you settle the sales order to COPA.. This will close the cycle
Configuration
The IMG Settings required would be as below
1. You would use account assignment category (AAC) E
2. Create a Requirement class with
a. AAC = E.... (Means sales order is CO Object)
b. Valuation Indicator = BLANK (Means Non Valuated Stock)
c. Costing ID/Costing Method = As per your choice to calculate the Sales order cost estimate
3. Assign this req class to Requirement Type
4. Give this req type to your PP/SD team.. They would assign it to Strategy group / Item Category to determine it in the sales order
Regards
Ajay M

Sales Order costing error to prevent Plan Order generation in MRP run

Dear PP Experts,
We are into sales order costing due to Variant Config implementation.
Problem Statement: After sales order entry /Characterisitc value selection, while saving sales order , SO costing is auto triggered. Many a times one of the new Raw material price is not maintained( Purchase info record), hence SO costing occurs. SO costing is still saved, SO incompletion is not configured , so it is detected when Production order has 'No Target Cost'. This creates inconsistancy in FI postings.
My questions
- Can we set SO imcompletion for SO costing error( Standard Config?)
- Is there a enhancement to prevent MRP from processing Sales order with incompletion log i.e. Prevent MRP from generating Plan Order.
Best Regards,
Jatin

Hello Jatin
You can use BAdI MD_CHANGE_MRP_DATA to make the sales order not relevant to MRP.
Check the following document for an overview of the BAdIs available on MRP:
BAdIs for MRP
BR
Caetano

Sales order costing (MTO) Variant configuration.

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