Entering content frameFunction documentation Product Cost Estimates for Sales Order Items Locate the document in its SAP Library structure


You can create a product cost estimate for a multilevel BOM for a sales order item. The material in a multilevel BOM for a sales order item can be a material with a closed BOM (nonconfigurable material), a configured material, or a material with an open BOM (configurable material) whose characteristic values were defined in the sales order item.


You can define the following default values in Customizing for Product Cost by Sales Order under Control of Sales-Order-Related Production ® Check Requirements Classes:

The Costing indicator in the requirements class allows you to specify whether sales order items must be costed.

You can use the Costing indicator to control the time point at which the sales order is costed and the sales order cost estimate marked.


If you enter A (automatic costing) or B (automatic costing and marking), the sales order item is automatically costed, or automatically costed and marked, when the sales order is saved.

If you entered B but cost the sales order manually before you save the sales order, you must also mark manually.

If you don’t enter anything, you must always manually cost and manually mark ( see also : Creating a Product Cost Estimate for a Sales Order Item Manually).

You specify the following in Customizing for Product Cost by Sales Order under Preliminary Costing ® Costing Sales Order Items with Product Costing ® Costing Variants for Product Costing ® Check Costing Variants for Product Costing:

The system requires the itemization if you are using a valuated sales order stock and if:

For example, you can specify that the lot size is only passed on for materials from individual requirements. You specify whether a material is an individual requirements material or a collective requirements material in the MRP view of the master record.

Requirements Explosion

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Passing On the Costing Lot Size

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The settings for the costing lot size should not conflict with the transfer control.

The costing type determines the technical attributes of costing. For sales order costing, it also determines the following:

In addition to the other settings in sales order costing, the valuation variant determines which costing sheet is used for the material components, depending on the costing type.

The transfer control parameters determine whether a material is recosted when cost planning data for the material exist in the plant or controlling area of the finished product. Transferring existing costing data can significantly improve performance.

For example, you can specify that existing standard cost estimates should be passed on for all collective requirements materials.

Transfer Control for Collective Requirements Materials


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Transferring existing order BOM cost estimates can significantly improve performance.


You specify in the costing variant whether you want to transfer order BOM cost estimates. Order BOM cost estimates are only transferred if they were created with the same costing variant. You therefore use the same costing variant for sales order costing as for order BOM costing.

You define the cost components and activate the cost component split in Customizing for Product Cost by Sales Order under Preliminary Costing ® Costing Sales Order Items with Product Costing. The cost components group the costing results and determine how the costs are rolled up through the structure. If you are using a valuated sales order stock, the costs are rolled up the same way as in make-to-stock production.

If you are using Activity-Based Costing, go into Customizing for Product Cost by Sales Order under Basic Settings for Product Cost by Sales Order and make the appropriate settings for Activity-Based Costing.

If you want to calculate the overhead for collective requirements materials differently than for individual requirements materials, then when defining the material account assignment in the Materials Management component you must make sure that the individual requirements materials and the collective requirements materials are assigned to different accounts and thus different primary cost elements. If you are using a valuated sales order stock, the individual and collective requirements inventories are separated by means of the valuation classes in the accounting view of the material master record.


Product costing is a tool for planning costs. It normally calculates the cost of goods manufactured of a material using the material’s BOM and routing in Production Planning. In sales-order-related production, product costing is used to calculate the planned costs for the production of the material in the sales order item.

For trading goods and other materials without BOMs or routings, you can use product costing to select a price that can be different from the price according to price control (S or V) in the accounting view of the material master. This allows you to specify, for example, that for materials with V price control a planned price is used from the costing details screen in the material master record. You can calculate material overhead on the basis of this information.

The system always saves a cost component split for the product cost estimate for the sales order item. You can transfer a cost component split calculated in a sales order cost estimate to Profitability Analysis (CO-PA). This provides a view in CO-PA by cost components according to the sales order cost estimate.

See also:

For more information on the required settings in Customizing, refer to the Implementation Guide (IMG) for Product Cost Controlling.

For information on the special features of overhead calculation in sales-order-related production, refer to the section Structure link Overhead in Sales-Order-Related Production.

For information on transferring the cost component split to CO-PA, refer to the following section:

Structure link Update of Planned Costs

For information on Activity-Based Costing, see the document CO-ABC Activity-Based Costing.

For information on cost component splits, refer to the document Product Cost Planning.

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