cost estimate for product mfg.in-house and subcontracted

[former_member1150623]

Dear experts,

I have scenario where a material can produced in-house or subcontracted (Assy. subcontracting and not the operation). I have create test cases as follows.

1. BOM for in-house production with component as xyz.

2. Routing for in-house production

3. BOM for subcontracting with usage S and component abc

4. No routing for subcontracting

5. 2 production versions for in-house and assy. subconcracting in material master.

6. Info record for sub-contracting with operation price and prod. version in it.

7. Proc. type X with special proc. key 30. (No MRP running)

8. Maintained prod. version in costing view for costing as per requirement, either in-house or subcontracting.

9. Selection method in mrp 4 view = 2

Now when i try CK11N with production version subcontracting, system shows - BOM of subcon + in-house routing/operation cost + no subcon. operation cost. It should be as

subcon. bom + operaion cost from info-record.

Why this is happening.

Where as if use inhouse prod. version system gives - inhouse bom + routing + activity and which is ok.

I am stucked with Subcon. costing.

One thing to note is it is not operation subcontracting.

Please give your valuable input.

Regards,

Manish

[rupesh_brahmankar3 · Accepted solution]

Hello Manish,

You calculate a material processed by subcontractor (subcontracting special procurement key). If the system used a purchasing info record to determine the price of subcontracting

However, via the selection method indicator in Materials Planning view 4 in the material master, you can control whether the quantity structure occurs according to validity (lot size, period) or according to production version. Here you have selected as production version and production version has routing and BOM which will be consider by the cost run.

The quantity structure is determined via the settings in the quantity structure control (Transaction OKK5).

Best Regards,

R.Brahmankar

[former_member1150623 · Accepted solution]

Dear Rupesh,

I have tested it already but as said, in such situation system is picking BOm of subcontracting as well as inhouse routing. Production version are correct.

Please find attached file for valuation variant setting.

[rupesh_brahmankar3 · Accepted solution]

Hello Manish,

As you have production version as selection system is reading the routing data from it,

I think you should test this without having selection as production version.

Else create dummy routing with fix activity price as info-record price and define another production version and do the costing with that version.

Refer OSS note 552486 - FAQ Product Cost Controlling note

Question 2. How does the system determine the quantity structure for the cost estimate (CK11N)?

Answer: The following priority sequence applies to the determination of the quantity structure.
              Priority 1:If you assign a quantity structure on the initial screen of the cost estimate, the system uses it in any case.


              Priority 2:The system determines the quantity structure data that you have entered in the cost estimate view of the material.


              Priority 3:Via the selection method indicator in Materials Planning view 4 in the material master, you can control whether the quantity structure occurs according to validity (lot size, period) or according to production version.


              Priority 4:The quantity structure is determined via the settings in the quantity structure control (Transaction OKK5).

Best Regards,

R.Brahmankar