You must make the following decisions with settings in Customizing for Product Cost by Sales Order:
You normally use a valuated sales order stock.
You specify whether the dependent requirements are controlled by individual requirements or collective requirements in the material master record in the MRP view with the indicator Individual/collective.
You use Product Cost by Sales Order in the following situations:
Product Cost by Sales Order is normally used with orders of the order type standard order (TA). The material ordered or the combination of material and order type determines whether the Product Cost by Sales Order functionality is active for the order item or not.
You can calculate the planned costs for the sales order item in a sales order cost estimate. You can create a sales order cost estimate with product costing or unit costing. You can use unit costing to postprocess (modify) the results of product costing. You can use the sales order cost estimate to:
Purchase requisitions can be generated on the basis of the sales order items directly, or on the basis of planned orders. These purchase requisitions are assigned to the sales order item. The purchasing department converts the purchase requisitions into purchase orders. The purchase order is assigned to the sales order item.
If the sales order stock is valuated, the externally procured materials are assigned to the sales order stock at the time of the goods receipt. The standard price is the net order value. If the sales order item carries costs and revenues, price differences between the net order value and the invoiced price are assigned to the sales order item.
If the material being manufactured has a multilevel BOM, other materials may have to be manufactured with reference to the sales order if the material is controlled by individual requirements and consequently cannot be withdrawn from the make-to-stock inventory. Manufacturing orders are created for these dependent requirements. If the sales order stock is valuated, the manufacturing orders for the semifinished products deliver the semifinished products to the valuated sales order stock where they are withdrawn by manufacturing orders for higher-level materials. The manufacturing orders are credited when they deliver materials to inventory and charged when they withdrawal materials from inventory.
You can view the funds commitment in the valuated sales order stock on the sales order item as statistical actual data in the Product Cost Controlling Information System. A requirement is that you represent the material stock accounts as a cost element of cost element category 90.
When you deliver to the customer, the goods issue posting results in the sales order item being debited with the standard price. You can post costs for internal activities directly to the sales order item.
The customer is billed for the deliveries made and activities performed for the sales order. The revenues are assigned to the sales order item.
You can perform the following steps for the dependent manufacturing orders in the
You can transfer the
Create the price difference account to which you settle the variances as a cost element (the price difference account is not normally a cost element). Use a price difference account that you select by means of automatic account determination using transaction GBB and account grouping code AUA. When you settle the total variance to Financial Accounting (FI), the total variance is assigned to the sales order item.
Make sure that you don’t settle the total variance to Profitability Analysis (CO-PA) twice. The total variance can be transferred to CO-PA both when the manufacturing orders or product cost collectors are settled and when the sales order item is settled. Therefore, turn off the Variances indicator in the settlement profile specified in the order type.
In theperiod-end closing activities for the Product Cost by Sales Order component you perform the following activities for the sales order item:
If you have performed results analysis, you settle the results analysis data.
If you have not performed results analysis, you settle the costs and revenues carried on the sales order item.
You can transfer a cost component split for the planned costs to CO-PA if you:
For detailed information on the required Customizing settings for the Product Cost by Sales Order component, see the following section:Checklist for Product Cost by Sales Order