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Function documentation Costing of Procurement Alternatives Locate the document in its SAP Library structure

Use

Many companies manufacture their products in more than one plant. There are often several different procurement alternatives.

Example

For example, a sales and distribution center of a company in Denmark could decide whether to manufacture their shoes in Portugal or India. Denmark, Portugal and India are mapped as plants in the R/3 system.

In this example, Controlling is located centrally in Denmark. That means that the product cost planning will take place in and be triggered by Denmark. The shoe has been created as a material master in all three plants. It has a special procurement key in the Denmark plant (80 production in another plant). The special procurement key refers to one of the production plants (Portugal or India).

In the R/3 system you can only enter one special procurement key in the Controlling view or the MRP view of the material master. You therefore cannot map alternative procurement possibilities. This, however, is necessary in order to be able to assess the cost benefits of certain procurement alternatives. The AFS system offers you additional functions for exactly this purpose.

Although you can only choose one price (procurement alternative) for the material valuation, you can enter alternative prices as information in additional statistical price fields of the material master (such as planned price 1).

Features

In the R/3 standard system different cost estimates for the same material can be split using the costing version. The AFS system uses this function to map procurement alternatives. You can link each costing version to a special procurement key. This enables you to consider different special procurement keys for each material depending on the costing version.

You can enter a special procurement class in the material master (AFS Valuation view). This special procurement class merely represents a key which refers to a new Customizing table (Customizing: Product Cost Controlling ® AFS Product Costing). In the Customizing table you can define the link between the costing version / special procurement key for all materials.

The product costing determines the special procurement key that should be used as follows:

  1. First the system uses the special procurement key that results from the Customizing definition of the special procurement class you entered.
  2. If no special procurement class has been entered, the system uses the special procurement key which has been entered in the material controlling view.
  3. If no entry can be found there either, the system uses the special procurement key of the material MRP view.

Note

For each procurement alternative you can define delivery costs that will be automatically added during the product costing (see Additive Costs for Materials with Special Procurement).

 

 

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