Raw Material Costing

Raw Material Costing

Use

There are no BOMs or routings for raw materials in the system. You can, however, use these functions to create a cost estimate for raw materials. Instead of simply the price being taken from the material master, an actual cost estimate (including overhead calculation) is created.

The raw material cost estimate enables you to include delivery costs, allocate overhead and include additive costs at the material component level.

Features

You can do the following:

Access the prices in the purchasing info record for the material, in order to include delivery costs such as freight charges and insurance costs (see also Purchasing Info Records)

Include overhead and process costs

To this end, you can define a special costing sheet for raw material costing in the costing variant in Customizing. See also: Overhead

You can only calculate overhead for raw materials in the planning data, not in actuals. The overhead should not, therefore, be stock-relevant.

Create additive costs (see also Additive Costs)

For the costing of raw materials in addition to the cost component split, save an itemization (see also Costing Results)

Arrange the delivery costs in different cost components

To find out how the system searches for a vendor, see Determining Vendors.

Activities

In Customizing for Product Cost Planning, check the following:

The valuation variant

In the valuation variant for material valuation, enter strategy L (price from purchasing info record), and define which values will be found from the purchasing info record and in which order, and which of them will be used for costing.

The costing variant

Enter the valuation variant defined above in the costing variant. If required, enter a special costing sheet for the application of overhead in raw material costing.

The assignment of condition types to origin groups

If you want to handle different conditions from Purchasing (MM) in different ways, you can assign condition types to origin groups. When assigning cost elements to the components, you can maintain different origins, and use this to assign the delivery costs to different cost components.

Create the cost estimate for the material as described in Cost Estimate with Quantity Structure: Process Flow.

In the cost estimate without quantity structure , you activate or deactivate raw material costing, by choosing Functions ® Raw material costing ® Switch on/Switch off. The cost estimate then inserts items of type I in the list screen.