Material Cost Estimate Without Quantity Structure (SAP Library

Material Cost Estimate Without Quantity Structure

Purpose

The cost estimate without quantity structure is a tool for planning costs and establishing prices for materials without reference to quantity structure data from Production Planning (PP and PP-PI). It is intended for materials with insufficient or no quantity structure data.

Material costing without a quantity structure enables you to:

Plan costs for raw materials, internal activities, and external activities for a product in the form of a unit cost estimate

Assign overhead to the product in the production and material areas

Assign the calculated costs to the cost components as well as when saving them

Group the costs of the materials used for semifinished products into cost components

It can also be used to enter data from non-SAP systems. (See also Connection of Non-SAP PP Systems)

Integration

A cost estimate without quantity structure can access data in the following components of the R/3 System:

Materials Management (MM), such as material master records and services
Production Planning (PP), for example work centers and resources
Controlling (CO), such as cost centers and activity types

For further information ,see Master Data for Unit Costing.

Features

If you want to carry out costing without a quantity structure (consisting of BOMs and routings) existing in the R/3 System, you can create the material cost estimate as a unit cost estimate (cost estimate without quantity structure) and enter the data manually.

You can thus calculate the costs for a multilevel production structure without access to the BOMs and routings from PP. You create the quantity structure manually using unit costing. For each semifinished product, you create a cost estimate that assigns the costs to cost elements and cost components. You specify these semifinished products as material items when costing the highest-level material. The costing results of the highest-level material then contain the costs of the lower materials.

You create a spreadsheet, which can consist of materials, internal activities, external activities, services, processes, variable items and overhead. The system determines the prices for the costing items entered.

Because the cost elements remain transparent in the itemization, you can compare the cost estimate with the following:

The preliminary cost estimate of a production order

With actual postings from other areas of the R/3 System

Unit Costing

Master Data for Unit Costing

Creating Costing Items

Valuation of Costing Items