Check Valuation Variants for Product Costing (SAP Library

Check Valuation Variants for Product Costing

Here you create a valuation variant that contains the parameters for the valuation of the quantity structure for sales order costing.

Sales order costing uses the following information:

The material ordered by the customer and (if necessary) the configuration in the sales order item

The order quantity

The BOM for the material ordered

The routing for the material ordered

The system creates a quantity structure from this data. The quantity structure contains the following information:

Material components used in the material costed

Activity types and business processes for internal activities used to produce the material

External activities used to produce the material

Subcontracting carried out during the production process

You create valuation strategies for the following objects in the quantity structure:

Material components

Here you define the sequence in which the system looks for prices in the accounting view and the costing view in the material master record to valuate the material.

Sales order costing currently does not take existing manually entered cost components into account.

Activity types / processes (internal activities)

Here you define the sequence in which the system looks for prices from Cost Center Accounting or Activity-Based Costing to valuate activity types or business processes. In addition, you specify the plan version on which the prices are based. However, you can also use the actual prices of the previous period for valuation. Irrespective of how you valuate the activities and processes of the period, you can revaluate the activity types and processes at actual costs (of the relevant period) during period-end closing.

You also specify which plan version in Cost Center Accounting is used.

External processing in the operation

Here you define the sequence in which the system looks for prices in the purchasing info record or in the operation in the routing to valuate the activity.

Subcontracting

Here you define the sequence in which the system looks for prices in the purchasing info record. Purchasing uses quota arrangements to calculate a mixed price for materials produced by external vendors where the materials are supplied by the customer. You can specify whether the quota of the individual vendors that are entered in the source list for the material to be processed should be computed using the planned quota arrangement or the actual quota arrangement.

You can also specify whether overhead should be calculated for subcontracted materials.

Strategy sequences

You define the individual valuation rates of the valuation variant as strategy sequences. For valuation of the material components, for example, you define a strategy sequence that reads the fields in the material master record in the following sequence:

1. Planned price 1

2. Standard price

3. Moving average price

The first price that is not zero is used to valuate the material component.

To be able to use the valuation variant in the cost estimate, you must assign the valuation variant to a costing variant.

Overhead

The valuation variant can also play a role in the calculation of overhead. The overhead for the sales order item itself is calculated in a costing sheet that is proposed through the requirements class. For secondary requirements, the type of inventory management determines how the overhead is calculated:

For materials from collective requirements, overhead is calculated in the costing sheet specified in the valuation variant.

For materials from individual requirements, the calculation of overhead depends on the costing type.

If the Pass on costing sheet from sales order indicator is set, the costing sheet specified in the sales order item is used to calculate the overhead.

If this indicator is not set, the costing sheet specified in the valuation variant is used. For externally procured materials, overhead is only calculated if the Overhead only for raw materials assigned to sales order indicator in the costing type is set. The costing sheet in the sales order item is used for this overhead.

Standard Settings

The standard system contains a number of predefined price strategies.

For material valuation, you can select up to five (5) strategies for each valuation variant.

For activity types and processes, you can select up to three (3) prices for each valuation variant.

For external processing, you can select up to three (3) strategies for each valuation variant.

For subcontracting, you can select up to three (3) strategies for each valuation variant.

You can modify the standard valuation variants to meet your requirements by changing the standard strategy sequences.

Activities

1. Enter an alphanumerical key and a name for the new valuation variant.

2. Define a valuation strategy for material components by entering up to five values as the search sequence.

3. Define a valuation strategy for internal activities by entering up to three values as the search sequence and assigning an appropriate plan version from cost center planning to this valuation variant.

4. Define a valuation strategy for external processing by entering up to three values as the search sequence.

5. Define a valuation strategy for subcontracting by entering up to three values as the search sequence.

6. Select a quota arrangement for subcontracting.

7. Assign the valuation variant to a costing variant.

Further Notes

Product costing can also calculate the costs for materials that do not have a BOM or routing. Using the valuation variant, you could specify, for example, that for materials with moving average price control the system is to use a planned price from the costing view in the material master record.

Note

If you want to use different valuation strategies or different overhead rates in plants that belong to the same company code, you can define plant-specific valuation variants by assigning a valuation variant to a plant. Choose the push button Valuation variant/plant. If you don't do this, the valuation variants apply to all your plants.