Material Cost Estimate Without Quantity Structure (SAP Library

Material Cost Estimate Without Quantity Structure

Purpose

Costing without a quantity structure is a tool for planning costs and setting prices for materials without reference to quantity structure data in Production Planning (PP and PP-PI). It is intended for materials with insufficient or no quantity structure data.

A material cost estimate without a quantity structure enables you to:

Plan costs for raw materials, internal activities, and external activities for a product in the form of a unit cost estimate

Assign production and material overhead to the product

Assign the calculated costs to the cost components and save them

Break down the costs of material consumption for semifinished products into cost components

It can also be used to enter data from non-SAP systems. (See also Connection of Non-SAP PP Systems)

Integration

Cost estimates without quantity structure can access data in the following components of the R/3 System:

Materials Management (MM), such as material master records and services
Production Planning (PP), such as work centers and resources
Controlling (CO), such as cost centers and activity types

For further information, see Master Data for Unit Costing.

Features

If you want to cost a material when there is no quantity structure (BOMs and routings) in the R/3 System, you can create a unit cost estimate (cost estimate without quantity structure) and enter the costing items manually.

This enables you to cost multilevel production structures without accessing BOMs and routings in PP. You create the quantity structure manually using the functions of unit costing. For each semifinished product, you create a cost estimate that assigns the costs to cost elements and cost components. You specify these semifinished products as material items when costing the highest-level material. The cost estimate of the highest-level material then contains the costs of the lower-level materials.

You create a spreadsheet, which can consist of materials, internal activities, external activities, services, processes, variable items, and overhead. The system determines the prices for the costing items entered.

Because the cost elements remain transparent in the itemization, you can compare the cost estimate against the following:

The preliminary cost estimate of a production order
Actual postings from other areas of the R/3 System

Unit Costing

Master Data for Unit Costing

Creation of Costing Items

Valuation of Costing Items