The special procurement type in the costing view of the material master record specifies that subcontracting is to be carried out for the material. If you have not entered a special procurement type in the costing view, the entry in the MRP view applies.

For costing, you can choose the source of supply or the vendor using either the planned quota or the actual quota in the quota arrangement book. You do this by setting the Planned quota arrangement or Actual quota arrangement indicator in the valuation variant.

The system selects a vendor in the following way:

1. If a vendor exists in the quota arrangement book, this vendor is selected.
2. If no vendor exists in the quota arrangement book, the vendor in the source list is selected.
3. If no entry exists in the source list, the vendor is selected using a purchasing info record (such as a dummy info record, or preferred info record), provided that the corresponding indicator is set.

You determine in Customizing for Product Cost Planning which price is selected for subcontracting by defining a valuation variant and assigning it to the costing variant.

You can access the following prices:

• From the purchasing info record (purchasing):

• Effective price from the quotation
• Effective price from the quotation less fixed costs
• Net quotation price
• Gross quotation price

• From the purchase order:

• Effective price from the purchase order
• Effective price from the purchase order less fixed costs
• Net order price
• Gross order price

You determine which activity price is selected by defining a valuation variant in Customizing for Product Cost Planning and assigning it to the costing variant. By defining the planned or actual quota arrangement for subcontracting in the valuation variant, you can specify whether the selection of the source of supply or vendor is dependent on the actual quota or the planned quota.

The valuation variant contains a search sequence that has a maximum of three prices.

1. Net quotation price
2. Net order price