Nonvaluated Sales Order Stock: Valuation

If you are using a nonvaluated sales order stock with individual requirements materials, reliable cost controlling results taking all values into account is only possible on the sales order item. When the sales order stock is not valuated, multilevel BOMs will result in incomplete planned and actual costs on the production order. For this reason you valuate your inventories using results analysis data.

Reason

With a nonvaluated sales order stock, complete planned costs can only be obtained through a cost estimate for the sales order item.

You can obtain complete actual costs by settling the production orders to the sales order item or through direct assignment of the costs of externally procured materials to the sales order item.

The actual costs for semifinished products are shown on the sales order item under their original cost element or under a settlement cost element and thus are not recognizable as the cost of goods manufactured for semifinished products.

The planned costs for the sales order item are calculated in a product cost estimate or unit cost estimate. It is also possible to use a unit cost estimate to modify the results of the product cost estimate.

The preliminary cost estimate for the production orders assigned to the sales order item does not contain the complete costs. If the finished product is an individual requirements material, the product cost estimate for the sales order item differs from the calculation of planned costs for the production order in that the latter does not include the costs of the individual requirements materials used in the finished product.

The reason for this is that the finished product will not include the material costs of the semifinished product in the actuals and the calculation of planned costs simulates the calculation of actual costs to ensure comparability of the planned costs and actual costs.