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Procedure documentationCreating/Changing Mixing Ratios Locate this document in the navigation structure

 

There are various options to manufacture or procure a material, producing prices that differ according to the manufacturing process or supply source used. In order to calculate a mixed price for the material, you must create procurement alternatives for the individual manufacturing processes and procurement options. The mixed price is created by weighting the procurement alternatives using equivalence numbers. This section tells you how to define mixing ratios for the procurement alternatives.

Prerequisites

Before you can define mixing ratios, you must do the following:

  • Create procurement alternatives for the material in the application.

    See also: Editing Procurement Alternatives

  • Define quantity structure types in Customizing for Product Cost Controlling.

    The quantity structure type controls the following for costing:

    • Whether, and how, mixed costing should be performed

    • Which procurement alternative should be costed with which mixing ratio (validity period of the mixing ratio)

    Note Note

    If you create a mixing ratio for a material with split valuation, note the following:

    For each material, a mixing ratio can contain either procurement alternatives without valuation types only, or procurement alternatives with valuation types only. If both types of procurement alternatives exist, the system asks you whether you want to create a mixing ratio with or without valuation types.

    End of the note.

Procedure

  1. Choose   Accounting   Controlling   Product Cost Controlling   Product Cost Planning   Material Costing   Master Data for Mixed Cost Estimate   Mixing Ratios   Create/Change  .

    The Change Mixing Ratios screen appears.

  2. Enter the material number and plant.

  3. In the Mixing Ratio screen area, enter the following data:

    • Quantity structure type

    • Period and year

      These entries are required if the quantity structure type is time-dependent. You can also define time-independent quantity structure types.

  4. Choose Continue (Continue).

    The system displays all the existing procurement alternatives, including those for which the indicator MR (Procurement Alternative Provided for Mixed Costing) was not set.

    Choose Mixing ratio only if you want the system to list only those procurement alternatives for which mixed costing is intended (the indicator MR has been set). Choose All alternatives to display all the procurement alternatives for the material again.

    You can set a filter in this list. To do this, select at least one column, and choose Filter (Filter).

    You can sort the list in ascending or descending order. Select at least one column, and choose Sort in Ascending Order (Sort in Ascending Order) or Sort in Descending Order (Sort in Descending Order).

  5. Enter the mixing ratios or change the existing ratios, as desired. You can enter equivalence numbers or percentages.

    Note Note

    If you enter a weighting in the mixing ratio field, the system sets the MR indicator automatically and the procurement alternative is used in the mixed cost estimate.

    You can also set this indicator manually for procurement alternatives for which you have not entered a mixing ratio. In this way, you can ensure that procurement alternatives with a zero portion are included in the mixed cost estimate.

    End of the note.

  6. To go to the detailed information for the procurement alternatives, double-click on the alternative(s) concerned.

    Note Note

    If you are editing a procurement alternative of the process category inventory change, you can enter a valuation variant and the valuation date in the detailed information for the procurement alternative. This enables you to determine the price or cost component split with which the opening stock is valuated, as well as the date on which valuation is to take place. If you do not make any entries, the system determines this data from the costing variant used for the mixed cost estimate.

    End of the note.

  7. To delete mixing ratios, select the desired procurement alternatives and choose Delete (Delete).

    The mixing ratios and valuation dates for the selected procurement alternatives are deleted.

    To select or deselect all the procurement alternatives, choose Select All (Select All) or Deselect All (Deselect All).

  8. You can undo all the changes you made since you last saved by choosing .Undo Changes (Undo Changes).

    Caution Caution

    All changes made since the last save are undone.

    End of the caution.

  9. If you want to change or create procurement alternatives, choose   Goto   Change Procurement Alternatives  .

  10. Save the mixing ratios.

    Note Note

    If you set the 100% Check indicator when you defined the quantity structure type in Customizing, the system checks whether the mixing ratios equal 100% when saving. You can then only save the mixing ratio if the ratios total 100%.

    End of the note.

Result

The mixing ratio contains information as to which procurement alternative is involved with which portion of the mixed cost estimate. A procurement alternative can be assigned to several mixing ratios, or to no mixing ratios. A mixing ratio is clearly identified by the material number, plant, quantity structure type, fiscal year, and period.

You can execute a mixed cost estimate as soon as you have created the mixing ratios for the material. You can transfer the resultant mixed price to the material master. For example, if you have created a standard cost estimate, you can update the costing results as the standard price in the material master.