Valuation of the Quantity Structure 
Use
When you create a cost estimate with quantity structure, the system creates a quantity structure using data from the PP master data (BOMs, routings). When you create a cost estimate without quantity structure, you create the quantity structure manually.
In both cases, the quantity structure is then valuated.
Features
You control how costing valuates the quantity structure through the following parameters in Customizing:
Valuation variant
Date control
Using the valuation date and the valuation variant, the system valuates the following:
The materials used
The activities and process activities performed
The externally-processed operations
The externally-procured materials
Valuation Variant
The valuation variant determines which values are used to valuate the materials and activity types included in the cost estimate. It determines:
Which price is taken from the material master record, or which values are taken from the cost estimate, in order to calculate the material costs (see also: Valuation of Materials )
Which price, and which plan/actual version, are taken from Cost Center Accounting to calculate the costs for internal activities (see also: Valuation of Internal Activities )
Which price is taken from the purchasing info record, purchase order, or operation to calculate the costs of external activities (see also: Valuation of Externally-Processed Operations )
Which price is taken from the purchasing info record or purchase order to calculate the costs for subcontracting, and which quota arrangement is used to valuate the subcontracting (see also: Valuation of Subcontracting )
Which costing sheet is used to calculate overhead or to determine a process template to calculate process costs (see also: Overhead )
You define valuation variants in Customizing and enter them in the costing variant. You assign the valuation variant to the costing variant. For more information, see Preparing for Material Costing .
Date Control
You specify the date on which the relevant prices are to be read by entering a valuation date for the cost estimate. The valuation date is proposed through the date control ID. (See also: Date Control )
You define the date control in Customizing and enter it in the costing variant. For more information, see Preparing for Material Costing .
See also:
Creating the Cost Estimate with Quantity Structure
Creating a Material Cost Estimate Without Quantity Structure
Implementation Guide (IMG) for Product Cost Controlling