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Costing for Alternative Parts

Former Member
0 Kudos

Dear Expert,

There is a requirement for costing run with BOM which contains alternative parts.

For example, in CA01, BOM is maintain as such,

Part A which is quantity 1 pcs, alternative item group B, priority 1, usage probability 50%

Part A-1 which is quantity 1 pcs, alternative item group B, priority 1, usage probability 50%

when explode the BOM using CS12 and during running of backflush,

Part A shows 0.5 pcs

Part A-1 shows 0.5 pcs

However, for cost estimate,

Part A shows 1 pcs with cost RM 1

Part A-1 shows 1 pcs with cost RM 1.5

and the cost had been encounter twice (total = RM 2.5) where this is incorrect.

It should be as following:

Part A shows 0.5 pcs with cost RM 1

Part A-1 shows 0.5 pcs with cost RM 1.5

and total cost = RM 1.25

I had searched through the forum, most of the forums recommend on mixed costing.

However, this will require to maintain 2 BOM, 2 production version and some configurations.

Is there any other way to run 1 cost estimate which is able to pick up the ratio just like backflush?

Accepted Solutions (1)

Accepted Solutions (1)

ajaycwa1981
Active Contributor
0 Kudos

Hi

Did you think of maintaining the BOM itself as 0.5 Qty for A and 0.5 qty of A1 and hence no need to maintain the usage probability of 50% separately?

I am thinking of other options for you.... Mixed costing is one option, which I guess you are not interested in

Let me think of other options too

I tried just now as below and it worked

1. CS01 - Double clicked on the BOM Items

2. Maintained Alt Item Group as B, and entered Priority =1, Usage = 50% and Strategy = 1..

3. I saved the BOM.. Now I can see Alt Item Group B in the components screen of CS02 against the component

After that I executed CK11N.. It picked up the cost in 50-50 ratio as expected

Refer screen shot http://img703.imageshack.us/g/91907538.jpg/

Br, Ajay M

Edited by: Ajay Maheshwari on Feb 25, 2011 3:56 PM

Former Member
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Dear Ajay M,

Currently I had maintain CS02 as per what you had maintain. But costing CK11N does not work as desired...

I had maintain 2 component at CS02 using "Usage probability in %" (as per original question).

We had maintain the BOM in same way.

Is that I had missed out any configurations? Example such as costing variant?

Regards,

Yap

Answers (3)

Answers (3)

ajaycwa1981
Active Contributor
0 Kudos

Hi

This is always a challenge with smaller lot sizes

have costing lot size as 100 or more and also your Price Unit in Material Master should be higher.. you can avoid lot many probs due to rounding

Br, Ajay M

Former Member
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Will there be any impact on other area when costing lot size increase?

All the while in our environment, we are using costing lot size 1.

ajaycwa1981
Active Contributor
0 Kudos

Hi

The only impact will be that costing results will be more accurate...

Br, Ajay M

Former Member
0 Kudos

I am new in costing.

Appreciated if you could provide following:

1) What is costing lot size?

2) Benefit of using costing lot size?

3) Anything to concern when using costing lot size?

4) Is it possible to have different costing lot size for different cost estimate?

Former Member
0 Kudos

Another finding:

When try to run costing by changing particular material to 10 pcs, system is able to pick up ratio 50% which is 5 pcs.

However, only when material is 1 pcs, system is not able to cost it at 0.5 pcs.

Any idea?

Former Member
0 Kudos

hi..

Creat the following settings to get the ratio:

CK91N Procurement Alternative

CK94 Mixed Cost Ratio

kkumar