Master Data in Purchasing (SAP Library - Product Cost Planning (CO-PC-PCP))

Master Data in Purchasing

Use

Purchasing contains information for the procurement of a material or service from a certain vendor, such as conditions negotiated with the vendor. Costing enables you to access this information in the following areas:

Valuation of Materials

Raw Material Costing (not relevant for Reference and Simulation Costing)

Valuation of subcontracted materials

Valuation of external processing

Prerequisites

In order to access the prices from purchasing (that is, the purchasing info record or purchase order), you must enter the following in Customizing for Product Cost Planning:

In the valuation variant:

Enter strategy L (price from purchasing info record) for material valuation
Enter a strategy for the valuation of subcontracting and external processing

Enter this valuation variant in the costing variant that you want to use for the cost estimate

Features

The link between material/activity and vendor is established in purchasing. It manages information about the vendor, and about the materials and activities that you have obtained from the vendor, such as quantities, prices, price changes, and other costs.

When costing, you can access information in the purchasing info record and purchase order, for the following purposes:

To include delivery costs (such as freight charges, duty costs, and insurance costs) in the costing results

This enables you to carry out raw material costing. Instead of the price being taken from the material master, an actual cost estimate including overhead calculation for material components is executed. This cost estimate does not have a quantity structure (BOM, routing).

To valuate subcontracted materials with a price from purchasing

For more information, see Valuation of Subcontracting.

To valuate externally-processed items with a price from purchasing

For more information, see Valuation of Externally-Processed Operations.

You can access the following prices:

The price from the operation in the routing (not applicable to unit costing)
From the purchasing info record (purchasing):

Effective price from the quotation
Effective price from the quotation less fixed costs
Net quotation price
Gross quotation price

From the purchase order:

Effective price from the purchase order
Effective price from the purchase order less fixed costs
Net order price
Gross order price

You determine which activity price is selected by defining a valuation variant in Customizing for Product Cost Planning and assigning it to the costing variant.

The valuation variant contains a search sequence that has a maximum of three prices.

Example

You have defined the following strategy sequence for the valuation of external activities:

Net quotation price
Net order price
Price from operation

If a net quotation price exists in the purchasing info record, the system transfers this price. If no such price exists, the system transfers the net order price from the purchase order. If no purchase order was created for the operation, the system uses the price in the externally-processed operation in the routing.

See also:

For more information about purchasing master data, see the following in the SAP Library under MM Purchasing:

Purchasing Info Records

Source Lists

Quota Arrangements

For more information about performing costing, see the following:

Working with the Cost Estimate with Quantity Structure.

Working with the Cost Estimate Without Quantity Structure

Working with Reference and Simulation Costing