Configurable Variant Material and Make to order Costing

[former_member218048]

Dears

WE are in make-to-order variant configurable material scenario.

We have an input material which is a variant of configurable material. IM9001  i.e. we prefabricate frequently the required variants of this material and to place them in stock.

Hence, we run standard costing CK40n for these material and release the price.

My doubt is :

When we do the costing of the Sales Order for the Finished good, the above IM9001 which is part of the BOM is also costed.

It is seen that the Sales order Costing result of IM9001 is slightly different than the CK40N cost.

Since we have updated the Standard Cost of this material, why it should be costed again in the Sales Order ?

If that is the case which price will be taken up for GR : SO estimated cost or CK40N released cost ?

I am looking for guidance from you.

[ajaycwa1981 · Accepted solution]

Hi Nikki

The GR of IM9001 should happen based on its Std cost

The GR of the FG Material (which uses IM9001) would happen based on Sales Order Cost

Regards

Ajay M

[former_member218048 · Accepted solution]

Dear Ajay

Can you please tell me the reason for GR based on std cost ?

Than what is the purpose of costing it again in the Sales Order ?

[ajaycwa1981 · Accepted solution]

Hi Nikki

Based on what you said, I assume IM9001 and the FG are two separate materials.. Is that right?

It seems IM9001 is a Configured Material (Not Configurable Material). Hence you were able to do Std cost

The FG material is a Configurable Material. hence you do Sales Order cost..

So, its fine to Valuate FG based on Sales Order cost..

How is IM9001 brought to Inventory? Check the GR document and how it is Valuated

Regards

Ajay M

[ajaycwa1981 · Accepted solution]

Hi Nikki

Is this resolved?

Ajay M