Purpose
The cost estimate with quantity structure enables you to calculate the non-order-related cost of goods manufactured and the cost of goods sold for products, based on the BOMs and routings (PP).
Prerequisites
You have checked the settings in the costing variant. For more information, see
Preparing for Material Costing.Process Flow
For further information, see the following:
For further information, see the following:
For further information, see the following:
For further information, see
Additive Costs.For further information, see
Overhead.For further information, see the following:
For further information, see the following:
For further information, see the following:
Example
You create a cost estimate with quantity structure for material P-100.
First, the system determines the quantity structure, being the BOM and routing. It then valuates the materials in the BOM and the production activities from the routing with prices and calculates the overhead.
The material costs are calculated for the
material components by multiplying a price from the material master record by the input quantity from the BOM. For example, the unit price for material M 100-110 is EUR 10. For materials not included in inventory (that is, non-stock materials), the unit price is entered in the BOM itself, such as material 100-400. The costs of the material components are variable costs.The costs of the
assemblies are calculated using the input quantity in the BOM and the data on the material in the BOM and routing. For example, the costs for material 100-100 consist of the material costs for materials 100-110, 100-120 and 100-130 and the costs specified in the routing for the assembly of these components (activity 1420). These costs comprise variable costs (for the raw materials used) as well as fixed and variable costs (for the internal activities, overhead and, if applicable, process costs).The costs of the assemblies are calculated level by level. This means that the costs for assemblies 100-100, 100-200, 100-300 and so on are first calculated, and then included in the total costs for assembly P-100. The process of assigning the costs of the subordinate material components and assemblies to each of the higher production levels is called
cost rollup.See also: