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

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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..?
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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

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.
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Any other suggestions as to how to obtain the required data??
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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- 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.

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

Automate Sales Order cost estimate

Hi Experts,
Can anyone please let me know about the automate sales order costing. We are suggesting to client pl follow the following method:
1.Create Req class
2.Create Req type
3.Assign req type to class
4.Define Cositng variant, costing ID etc., in req class through controlling.
Otherthan this is there any alternative method to calculate automate sales order costing for MTO?
Please suggest us and looking forward your valuable comments
thanks
vk

hi,
check this link
http://help.sap.com/erp2005_ehp_03/helpdata/EN/90/ba6794446711d189420000e829fbbd/frameset.htm
Thanks,
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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?)
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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
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Caetano

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I cheeked OKY9 and the Update tab had the "Save Error Log" checked, but on the Misc tab the "Log Messages but do not save" on the error message field was selected. When I changed the selection to "Log and Save Message" this corrected my problem.
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Inventory Valuation based on Sales Order Costing

Dear All
My client requirement is the inventory value should happen based on the "Sales Order Cost Estimate"
Kindly give the configuration steps, if it is possible in SAP
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Hi rback59,
The information you have provided is very clear and accurate. Thank you. I am hoping that you can assist with a related problem I am facing:
We have sales order costing in place with the Material Ledger and multiple valuation. For financial reporting purposes, we have a legal valuation/local currency variant entered in our requirements class (46) and we are using this to value our sales order stock. The problem we are facing is that the requirements class allows us to enter only one costing variant. This means we are not able to create a cost estimate for our two additional valuation views (group and profit centre). As a result, we are forced to use the material standard price in the material master for the group and profit centre views which is not ideal.
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Ross

Sale Order Cost Estimate

Hi,
We have maintained Material BOM (usage 1) as well as Sale Order BOM (usage 5).
When we run the Sales Order Cost estimate, which BOM would be picked for costing the sales order.

Hi,
The issue is not with respect to selection of the Sale order BOM or routing. System is correctly selecting the specific BOM and routing for costing.
However, when we display the sale order cost estimate, when we navigate to the Qty Struc tab and double click on the sale order BOM or Routing Group, it does not take me to the specific Sale Order BOM.
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Costing Sheet in requirement class for Sales Order costing

Hi Experts,
Could you please explain me the necessity of costing sheet in requirement class configuration.
There is a field for costing variant in requirement class. I hope costing sheet can be taken from that costing variant.
So what is the purpose of costing sheet in requirement class and could someone explain me the use of that field in requirement class.
What happens if the costing sheet in requirement class and costing sheet in costing variant mentioned in requirement class does not match.
Thanks.
Edited by: DSK on Dec 18, 2011 3:21 PM

Costing Variant is assigned to Requirement class
Requirement class is assigned to Requirement type
Requirement type is assigned to Planning Strategy
Planning strategy is assigned to strategy groups
Strategy group is assigned to MRP3 tab in Material Master
System picks the costing sheet in requirement class
In this way product will be costed for Make to Order sale order costing.
Srinivas

Sales order costing error found in quotation 2 order line items created in

Sales order costing error found in quotation 2 order line items created in quotation 5000562
1st line item with third party
2nd line item with PTO
Purchase price was entered in the configuration screen
1st item : 2,000 EUR
2nd item: 1,200 EUR
Purchasing info record was created with variant condition for EUR
Error in sales order costing:-
System does not take the purchase price in the configuration screen to
calculate sales order costing. It incorrectly took 1 EUR from variant
condition in sales order costing for both items.
By right, it should take purchase price from configuration screen.
Pls advise
Thanks

no replies and my thread was dead.

Subcontracting in sales order costing

Dear Sapfans,
We are having make to order with sales order process (sales order as cost object).
We are having a scenario where we are sending the goods for an external processing (subcontracting) .
After the MRP run, we are converting the purchase requisition to purchase order with account assignment E.
At the time of doing GR of finished goods from subcon vendor, the system withdraws components from the sales order stock. Which means the subcontracting charges should be debited to the sales order
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Why is the sales order not being considered as cost object here?
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Thanks In Advance

Hi Anulekha,
Please see below scenarios
1. Subcontract to inventory
At the time of GR against subcontract Purchase order we have the following three entries
A:
Dr: Consumption account
Cr: Raw material Inventory account
B:
Dr: Finished material Inventory account
Cr: Change in Inventory account
C:
Dr: Change in Inventory account
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2. Subcontract to PP/SD order
At the time of GR against subcontract Purchase order we have the following two entries
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Cr: Raw material Inventory account
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Dr: Finished material Inventory account PP/SD order
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We have two plants: (a) Sales plant and (b) Manufacturing Plant.
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Hi
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Variant/Sales Order Costing: Plz suggest

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