The cost is used to compare the determined prices with the costs and to determine contribution margin accounting. To do this, you can use the condition type VPRS as the cost price, used as a statistical value in the pricing determination procedure.
The condition type VPRS accesses the valuation segment in the material master and from here, determines the standard or average price.

The values from the vendor invoice, or from the purchase order, can be used as the cost price in individual purchase orders. You can make the necessary settings for this in Customizing.

Billing is related to the delivery for customer individual purchase orders. You need to make certain settings in Customizing for billing document copying control at item level if you want the cost for the billing document to be taken from the vendor invoice or purchase order, and not the valuation segment in the material master. The quantity indicator in the billing document’s document flow then controls where the cost comes from.

• If you activate F in the Billing quantity field, the value is calculated from the incoming invoice and copied to the VPRS condition. This assumes that the customer billing document can’t be created until the vendor invoice has been posted, checked by copying requirement 004.
• If you activate F in the Billing quantity field, the value is calculated from the incoming invoice and copied to the VPRS condition. Goods receipt for customer purchase orders is not normally valuated and the value from the purchase order is used as the cost.