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valuation variant

Product Cost Controlling (CO-PC)

Product Cost Planning

Key that controls which prices the system selects to valuate the quantity structure of a material cost estimate or order, or to valuate the costing items of a unit cost estimate.

The valuation variant controls how the materials and activities in the cost estimate are valuated. The valuation variant specifies the following parameters:

• Which price in the material master (such as the standard price) or in the purchasing info record (such as the net order price) is used to cost a material in the BOM

• Which planned or actual price is used to valuate the internal activities

• Which version in Cost Center Accounting is used to valuate internal activities

• Which costing sheet is used to calculate overhead

• Whether and to what extent a BOM item or an operation in the routing is relevant to costing

The different valuation strategies for materials, internal activities, external activities, and subcontracting are stored as strategy sequences.

A global valuation variant is valid for all plants. A local valuation variant is valid only for a specific plant. You define valuation variants in Customizing for Product Cost Controlling.

Cost Object Controlling

In Cost Object Controlling there is a valuation variant that can be used for the valuation of work in process at target costs and for the valuation of scrap variances.

In this valuation variant, you specify which cost estimate is used to calculate the target costs.