Information in the BOM Items
Use
The item overview lists the individual material components needed to manufacture the product. The input quantities for the material components refer to the base quantity in the
BOM header.You enter a costing lot size when you create a cost estimate. The material input quantities for each item are adjusted in accordance with the base quantity of the BOM to correspond to the costing lot size.
The unit of measure must match the stockkeeping unit in the material master record. The price used for the material valuation is always based on the stockkeeping unit. If the component is issued in a different unit of measure or is entered in the BOM with a different unit of measure, then the system uses the output conversion rate from the material master to determine the required quantity.
Features
The following information in the BOM item is relevant for costing:
The item category classifies the BOM item. Costs are calculated for the following item categories:
You check the item category in the Material item overview screen.
For stock items and variable-sized items, the system selects a price from the material master record by means of a search strategy that you specify in the valuation variant in Customizing for Product Cost Planning. For stock materials and variable-sized items that have their own BOMs, the system creates a cost estimate and copies the calculated costs into the cost estimate of the higher costing level. For more information, see
For non-stock materials, the system determines the costs from the purchasing data in the BOM item.
The validity period of the BOM item is taken into account in material costing. If the item is not valid on the quantity structure date of costing, it is ignored.
You check the validity period of the BOM item in the Material item overview screen.
If the relevancy to costing indicator is not set, the BOM item is ignored for costing. For the standard cost estimate, the modified standard cost estimate and the current cost estimate, the field can contain an
For inventory costing, you can enter a relevancy to costing indicator that is linked to a factor in Customizing for Product Cost Planning. You can adjust the value of the BOM items (such as packaging materials) using this factor for commercial physical inventory valuation or tax-based physical inventory valuation. For more information, see
Inventory Cost Estimates and Tax-Based and Commercial Prices.You use the BOM usage and the default values of the item to control whether this field contains a default value and whether you can change the contents of this field during BOM maintenance.
To check the relevancy to costing indicator, choose Goto
® Item ® Status/long text.This indicator controls whether the input quantity is lot size independent (fixed for each base quantity in the BOM that is smaller or equal to the costing lot size) or whether it is lot size dependent.
To check this indicator, choose Goto ® Item ® Basic Data.
Component scrap is included in material costing during the BOM explosion. The system increases the input quantity of the component by the calculated scrap quantity. Component scrap can also be defined in the material master. For more information, see Component Scrap.
Operation scrap (the excess material consumption for each operation) is included in material costing. The system increases the input quantity of the component by the calculated scrap quantity. For more information, see Operation Scrap.
If the Net indicator is set, the system includes in the cost estimate the operation scrap for each BOM item and not the assembly scrap in the material master record. If you define operation scrap, you must set the Net indicator. For more information, see Costing Scrap.
To check the estimated scrap, choose Goto ® Item ® Basic Data.
The entries in the BOM item specify the planned scrap. You can valuate the confirmed scrap quantities in Cost Object Controlling in order to calculate the costs of the actual scrap.
See also:
PP BOMs
Item Categories for Material Cost Estimates
Validity Period
Scrap Data