Costing shows high value due to BOM alternative material

[Former Member]

Hi,

In BOM we have maintained alternative material for few line items.(not maintained alternative BOM) When we do the standard cost run system is taking main material and alternative material value. so the cost of the product is showing high.

How system will behave this situation when doing standard cost estimate? how to avoid this excess value due to adding the alternative material?

[former_member740051 · Accepted solution]

HI,

Check the validity date of the current material and alternative material. This should not over lap.

FYI, the current material validity date should ends previous day of alternative material.

If this is perfect, system will not pick up both the materials.

Vijay

[Former Member · Accepted solution]

hi vijay,

thanks for your reply. here in BOM they have given priority 1 alternative material XXXX, if stock is not there then priority 2 alternative material yyyy. In this scenario system is taking both the material for costing. This is based on stock availability. Can you explain how the date to be given with one example.

govind.

[former_member184655]

Dear Govindaraj,

If there are alternative items maintained in the BOM,then as per the usage probability defined for each

item the cost will be taken.

say for one item if its 60% and for the another if its 40% means accordingly the cost gets captured.

So goto CS03,say Items X and Y are defined under alt.item group A1,now select the first item(row) X

and click on item details and check under Basic tab page you will be able to see the alt.item group

along with priority,strategy and usage probability.

So in CK11N or CK40N,it will be showing as 6 ea and 4 ea along with their prices for costing part.

So as per to the usage prob it picksup for the costing part.

Check and revert back.,

Regards

Mangalraj.S

[Former Member]

Dear Mangalraj,

Thanks for your reply.

As per your advice i am giving 50% for X material and 50% for Y material. In this case i dont have any problem for costing. But during the time of backflush, is it system will post both the material 50+50 =100 or 50%.

My doubt is, in the same above BOM setup, i dont have stock of X material during backflush then system will post Y material 50% only. Can you advice me further.

govind

[former_member184655]

Dear Govindaraj,

Again during confirmation the concept is different and its based on strategy used,Check this link and if

you have any queries revert back.

Regards

Mangalraj.S