Cost of BOM subitems on cash sales flow

[Former Member]

Hello,

I'm using the standard flow to my process of cash sales (sales doc BV, delivery doc BV and billing doc BV). In this process we have definded an BOM item that explode in sales order.

I need that the cost of BOM sub-items has to be assigned to higher level item.

Note that the cash sales billing document should be based on sales document.

Thanks in advance.

[Former Member]

Hi,

Thanks for your replies.

But in standard cash sales flow the billing document is made with reference to sales document and not to delivery document (and this is too a customer requirement).

In the copy control of sales document to billing document the field cumulate cost don't exist.

How can I solve this problem?

[reazuddin_md]

Are you calculating the profit margin by using this cost, in such case above Cumulate cost solution doesnt work. In fact SAP doesnt support, the reason could be cumulation of sub item costs to the Main item is to update the relevant COGS accounts only at the time of PGI.

There could be the possibility, some of the Sub item stock doesnt exist at the time of delivery & could not able to deliver it along with Main item OR chances of deleting the sub items in delivery.- for example.

So cumulation of sub items cost to main item in sales order is not feasible, as its not sure, that all the components may or may not deliver as it is in Sales ORder.

But as an alternative you may think of, Billing should be done only after PGI wrt Cash sales order. ( To achieve this, Billing type should have Routine "34" assigned to it)

Regards,

Reazuddin MD

[Former Member]

Hi Sandrina,

If you wnat to transfer cost of sub items to higher level item then you need maintain the setting for the higher level item category at the copy control between delivery to billing (VTFL) by selecting the appropriate value against the field cummulate cost.

This is very common and basic setting used not only in BOM's but also in Free Goods to reflect the correct profit margins from an FI stand point.

regards

Sadhu Kishore

[Former Member]

Hi,

Thanks for your reply.

By cost I mean the item cost i.e. the condition type VPRS, at higher level item, is the sum of the internal cost of subitems.

[Former Member]

OK. I just wanted to confirm the thought process.

For this I think you need to take care of the following data:

1) In Material master 'Cost Estimate 1' view, check mark the fields "With Quantity Structure'

and 'Material Origin' fields. Also maintain any relevant fields in the window "Quantity Structure Data'.

2) Also working with you PP/CO colleagues, check if you need to anything in IMG activities from the path below, especially Costing Variants and Valuation variants.

SPRO/IMG/Controlling/Product Cost Controlling/Product Cost Planning/Material Cost Estimate with Quantity Structure

Hope others will chime in with more info.

[reazuddin_md]

Hope the below thread may give useful. As the below given thread is not yet answered/closed. I pressume that he is still working on this.

As per your thread, I understood that, Sale of BoM happening through Cash sales, where as in delivery accounting document, Cost of sub-items should add to Cost of Higher level item.

Eg:

Item - -

---

Cost

main item - $ 100

Subitem-1--$ 40

Sub item2--50$

then you want the all sub items cost to be updated & accounted as main item's cost i.e. ( $40 + $50 = $90)

if yes, "Cumulate Cost " field should be marked in Delivery - Billing Copy control @ main item item category level.

Cumulate cost

This field is used in the main item to control whether the cost value (usually condition type VPRS) is to be copied from the relevant sub-items.

Regards,

Reazuddin MD

[Former Member]

Hello Sadrina

I am assuming that by cost you mean price,i.e., you want the Higher level item to be priced as a total of lower level items. Correct me if I am wrong.

This is accomplished by assigning Item category group ERLA to the High level item in the material master. Lower level items will have 'NORM' as usual. The the high level item will have TAQ ( Pric.at Header Level) and the sub items will be TAE items. Then the Higher level item will be relevant for pricing and delivery.

Hope this helps, let me know.