Sales Order Costing (SAP Library - Order BOMs (PP-BD-BOM))

Sales Order Costing

Use

You can create a cost estimate for the following sales document types:

Inquiries
Quotations
Sales orders

The cost estimate costs the specific sales document item.

The costing results are transferred to the sales document as a condition value. The system can calculate the net value of the sales transaction using conditions that access this value.

Prerequisites

Control Parameters in Sales and Distribution (SD)

Before you can enter a cost estimate for a sales document, you must carry out the following steps in Customizing for Sales:

Define a condition type for pricing through costing

You select the condition type with the field CndType line items in the sales document type. The condition type must have condition category Q (costing).

Add this condition type to the SD pricing procedure

The SD pricing procedure specifies the conditions that are allowed for pricing a sales document. It also specifies the sequence in which the conditions are included. The results of the cost estimate can only be included if the pricing procedure specifies an appropriate condition type and appropriate access sequences.

Enter default values for costing in the requirements class

The requirements class specifies the following:

Whether a sales order cost estimate must be created, can be created, or can only be simulated

Whether the cost estimate is manually created, automatically created, or automatically created and marked
Which costing methods are allowed. There are two costing methods: product costing and unit costing. You use product costing when you want to cost an existing quantity structure for a sales order item. You use unit costing when you want to enter the individual costing items manually, instead of specifying an existing quantity structure.

You can use the functions of unit costing to modify the costs in a product cost estimate, for example to add additional costs or to reflect customer-specific changes in the quantity structure.

The requirements class also determines:

The default costing variant for the sales order item

The default costing sheet for the sales order item

Whether this costing sheet is passed on to the dependent production orders (indicator Copy costing sheet) For more information, refer to the section Overhead in Sales-Order-Related Production

You can check the requirements class in Customizing for Product Cost by Sales Order. The documentation in the Implementation Guide contains detailed information on the settings for the requirements class.

Control Parameters in Materials Management (MM)

The sales order cost estimate takes into account materials that are being produced or procured especially for the sales order and materials that are withdrawn from the make-to-stock inventory in different ways. In the MRP view of the material master record, you specify whether the materials used by the material in the sales order item are individual requirements materials or collective requirements materials (indicator Individual/collective).

This ensures correct cost rollup with collective requirements materials.

Note

To enable product costing to separate the costs for individual requirements materials from the costs for collective requirements materials, make sure that these materials have different accounts (and therefore different primary cost elements) when you define the material account assignment in Materials Management.

The costs will then be shown on different accounts. Differential overhead allocation is possible.

Control Parameters in Product Cost Controlling

Product Costing

To cost sales orders with the functions of product costing, you must define the following parameters in Customizing for Product Cost Controlling:

Costing variant
Costing type
Valuation variant
Transfer strategy
Date control
Quantity structure determination
Cost components

Unit Costing

To cost sales orders with unit costing, you must define the following parameters in Customizing for Product Cost by Sales Order:

Costing variant
Valuation variant

Features

When a sales order cost estimate is created, this has the following effects:

The conditions are updated in SD.

The planned costs are updated to the sales order item.

These functions are not performed on the order BOM cost estimate.

You can create a sales order cost estimate:

Using a product cost estimate for the multilevel BOM for the sales order item

With unit costing

By creating a product cost estimate and modifying it with unit costing

In the cost estimate for the sales order item, you can:

Use the lot size of the sales order as the basis for calculating the planned costs
Determine the quantity structure for the product through the configuration in the sales order
Include the costs of raw materials and trading goods procured externally when costing the sales order
Calculate overhead rates based on contractual terms unique to the sales order

The system creates a cost estimate for the sales order item. At the same time, the system updates the planned costs on the sales order item (see also: Update of Planned Costs).

You can transfer a cost component split calculated in a sales order cost estimate to Profitability Analysis. This allows the cost components to be seen in Profitability Analysis.

A requirement here is that you calculate the planned costs for the sales order cost estimate in a product cost estimate.

If you calculate the planned costs with unit costing, or use unit costing to modify the costs in a product cost estimate, you cannot transfer a cost component split to Profitability Analysis.

You define the transfer by cost component in Customizing for Profitability Analysis under Master Data ® Valuation ® Product Costing ® Define Access to Product Costing with the indicator Transfer sales order cost estimate.

Note

Note on Costing Sales Order Items with Valuated Sales Order Stock

The status Cost is only set if you specified in the requirements class that costing is required. This means that if costing is not required, a cost estimate with errors (status KF) will not cause the status Cost to be set.

Therefore, if you change the quantity, the configuration, or the pricing date for sales order items, it may be appropriate to create a new sales order cost estimate. In many cases, however, it is not necessary to create a new sales order cost estimate. Depending on the Customizing settings, the system proceeds as follows:

Case 1:
Prerequisites:

In Customizing for Product Cost by Sales Order in the requirements class, it is specified that a cost estimate should be created automatically. No marked sales order cost estimate (status VO) exists at the time the quantity, the price, or the configuration is changed.

The system responds as follows:

These changes result in the system automatically recosting the sales order item when you save.

Case 2:
Prerequisites:

In Customizing for Product Cost by Sales Order in the requirements class, it is specified that a cost estimate should be created automatically. A marked sales order cost estimate (status VO) exists at the time the quantity, the price, or the configuration is changed.

The system responds as follows:

Since a marked cost estimate already exists that may already have been used for valuation, the system does not automatically recost the sales order item. If you want the changes to affect the sales order cost estimate, you must manually initiate costing. The new cost estimate does not result in revaluation of sales order stocks that have already been valuated. Variances are calculated on the basis of the new cost estimate.

Case 3:
Prerequisites:

In the requirements class, it is specified that a cost estimate must be created. A marked cost estimate exists at the time of the change.

The system responds as follows:

The system does not automatically recost, since the marked cost estimate could already have been used for valuation. The status Cost is not set. If you want to recost nevertheless, you must initiate costing manually.

Case 4:
Prerequisites:

In Customizing for Product Cost by Sales Order in the requirements class, it is specified that a cost estimate must be created. It is not specified that costing should be performed automatically. No marked sales order cost estimate (status VO) exists at the time the quantity, the price, or the configuration is changed.

The system responds as follows:

The system sets the status Cost (to be costed) for the sales order item. You initiate sales order costing manually (if required). The Customizing settings do not allow automatic costing.

Note the following: For all sales order items with the status Cost, no delivery to the customer can take place. If no marked sales order cost estimate exists at the time the goods are received into inventory, valuation uses one of the strategies specified in the valuation strategy. If none of these strategies work, no goods receipt can be posted.

For information on the valuation strategy with sales order stocks, refer to the SAP Library in the following section: Update of Valuated Sales Order Stock

You can generate a list of all sales order items with the status Cost with the report Display Sales Order Items to Be Costed.

Case 5:
Prerequisites:

In the requirements class, it is specified that a cost estimate can be created. No automatic costing is to take place.

The system responds as follows:

Regardless of whether a marked cost estimate exists or not, the sales order item does not receive the status Cost with any of the changes, since due to the Customizing settings, it is assumed that the cost estimate is not used for valuation. A cost estimate can be created manually at any time.

Example

If you have specified that costing is required but is not to be performed automatically, the system sets the status for the sales order item to Cost (to be costed) when the sales order is created.

The status Cost prevents subsequent functions such as delivery or invoicing from being performed until after the sales order has been costed. This is of particular value if pricing in Sales and Distribution is based on the results of the cost estimate.

The status Cost is also set when a faulty cost estimate is generated (status of cost estimate is KF) and the Customizing settings require a cost estimate. If the sales order cost estimate is successfully created (status of the cost estimate is KA), the sales order item receives the status Cstd (costed).

This graphic is explained in the accompanying text

Effects of Order BOM Cost Estimate on Status Update for Sales Order Item

Can a status be updated for the sales order item?

The status update of the sales order item depends on the setting of the indicator Costing in the requirements class.

Indicator is not set = Costing allowed, with status update

If the sales document item already has the status Cstd, this status is removed after an order BOM cost estimate for an assembly is created.

A = Costing allowed, without status update

If an order BOM cost estimate for an assembly of the order BOM of the relevant sales document item is created, the status of this sales document item is not changed.

B = May not be costed

If an order BOM cost estimate for an assembly of the multilevel BOM of the relevant sales document item is created, the status of this sales document item is not changed.

X = Costing required

If costing is required for the sales document item, the sales document item receives the status Cost (to be costed) when it is created. When a sales order cost estimate is created, the sales document item receives the status Cstd (costed). If an order BOM cost estimate is created for an assembly of the multilevel BOM of this sales document item, the status Cstd is removed and the status Cost is set. This tells you how up-to-date the sales order cost estimate is.

The status update is made only for a sales order cost estimate. Order BOM cost estimates do not influence status update.

User-Defined Error Management

You can influence the messages output in the log of sales order costing by using user-defined error management.

Overhead

Product Cost Estimate for Sales Order Item

Unit Cost Estimate for Sales Order Item

For information on updating data in multiple valuation views, refer to the following section:

Transfer Prices in Cost Object Controlling

Transfer Prices

If you are using transfer prices, you can update the planned costs calculated in a sales order cost estimate in multiple valuation views. To do this, you create a maximum of two order BOM cost estimates (in addition to the sales order cost estimate) with their own costing variants for the same sales document item.