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 taking the price 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 are able to do the following:

  • Access the purchasing data (MM_PUR), in order to include delivery costs such as freight charges and insurance costs (see also Purchasing Master Data )

  • To include overhead and process costs

You can define a special costing sheet for raw material costing in the costing variant in Customizing. ( Overheads )

Caution Caution

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

End of the caution.

  • Create additive costs (see also Additive Costs )

  • Save an itemization (in addition to the cost component split) for the costing of raw materials.

  • Arrange the delivery costs in different cost components

  • Calculate a mixed price, if you have several supply sources for one material component. For more information, see Mixed Costing .

Activities

In Customizing for Product Cost Planning, check the following:

  • Valuation variant

You should use strategy L (price from purchasing info record) for the material valuation in the valuation variant

Using this strategy for configurable material components means that only one material variant price will be included The same applies for material components with procurement alternatives The conditions of different vendors will only be taken into consideration if you implement this strategy. This strategy will be executed in both of these cases first, in other words the strategy sequence will be ignored to start with for configurable materials and when costing procurement alternatives. You can enter the strategy Price from purchasing info record as the last position in the strategy sequence, if a different strategy should be used.

  • 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 Creating a Cost Estimate with Quantity Structure .

In the cost estimate without quantity structure , you activate or deactivate raw material costing, by choosing Start of the navigation path Functions Next navigation step Raw material costing Next navigation step Switch on/Switch off End of the navigation path . The cost estimate then inserts items of type I (Raw material costs) in the list screen.