If you are in a sales-order-related production environment, you must make a number of settings before you can use the Cost Object Controlling functionality
You control this in Customizing for Product Cost Controlling under Cost Object Controlling
The account assignment category is taken from the requirements class, which in turn is taken from the requirements type.
You control this in Customizing for Product Cost Controlling under Cost Object Controlling ® Product Cost by Sales Order ® Control of Sales-Order-Related Production ® Check Requirements Classes with the Valuation indicator.
SAP recommends that you use a valuated sales order stock.
You control this in the account assignment category with the Consumption posting indicator.
You specify this with the Individual/coll. field in the MRP 4 view of the material master record.
If this field is empty, the account assignment category of the higher-level material (in this case, the individual customer requirements) determines that the dependent requirements are also managed on the sales order stock. These materials must be manufactured or ordered for the sales order, even if make-to-stock inventories of these materials are present.
If the field contains the entry 2 (only collective requirements), the dependent requirements can be taken from the make-to-stock inventory. The indicator Collective requirements is passed on to all lower-level materials in the production structure.
To ensure that the costs for collective requirements and individual requirements materials can be correctly in rolled up in product costing, you must specify in the definition of material account determination in Materials Management that the individual requirements materials are assigned to different accounts, and thus to different primary cost elements, than the collective requirements materials.
If no price control indicator has been specified in the material master record, (such as with configurable materials), the system uses the price control in the Attributes of the Material Types instead. To display the attributes of the material types, go into Customizing for Product Cost Planning.
If the material’s price control indicator is set to S, the valuated sales order stock is valuated according to the settings in Customizing for Product Cost Controlling under Product Cost by Sales Order ® Control of Sales-Order-Related Production ® Check Requirements Classes (indicators Valuation and Val. strategy).
If the material’s price control indicator is set to V, the valuated sales order stock is valuated according to the strategy defined in the valuation variant for the valuation of goods received in Customizing for Product Cost Controlling.
For information on the control indicators, see the Implementation Guide (IMG) for Product Cost Controlling under Cost Object Controlling® Product Cost by Sales Order ® Control of Sales-Order-Related Production.
For information on valuated sales order stocks, read the following sections:Valuated Sales Order Stock Update of Valuated Sales Order Stock Standard Price with Valuated Sales Order Stocks Viewing Valuated Special Stocks Example for Valuated Sales Order Stock Without Product Cost by Sales Order: Quantity and Value Flow Product Cost Collectors in Sales-Order-Related Production Variances with a Valuated Sales Order Stock