Do Not Cost indicator across multiple plants, but for one material number??

[Former Member]

Hi, can you help

i hope this is the correct forum for this

We have a manufactured part (MRP type E), extended to multiple plant numbers

In the plant of manufacture, we have a price control of S (with the Do Not Cost indicator unticked), and in the other plants for stock storage / sales reasons, we have price control of V, with the Do Not Cost indicator ticked

Is this correct. I do not believe this is correct, because all plants have a different Standard Price in them

if a part is manufactured in a plant, (and costed via CK40n / CK11n) must the Do Not Cost indicator be the same across every plant, regardless of where manufactured ?

Please advise

many thanks

[Former Member · Accepted solution]

Normally make parts (proc. key - E) are maintained as 'S' and they are costed.

But if you notice it as V & flagged for Do not cost, the first person to approach would be your costing person to find out why this material is flagged as do not cost.

Sometimes however there are situations where you do flag materials for not costing. So it is not a question of whether it is correct or not, but more of understanding as to why it has been done so at your end.

So get in touch with your FI-Co person to get the right help.

[Former Member · Accepted solution]

Hi Vivek

thanks for getting back to me. Unfortunately, our FICO people don't have the knowledge we require.

Perhaps i can be clearer

I manage the entire Mat Master, and there are many gaps.

I have instructions that say a manufactured part, in its plant of manufacture (MRP type E) will have a Price Control of S.

The same part, in all other plants will have a Price Control of V

I have doubts as to whether this is right. Can you advise

Also, I'm told, for the part in the other plants with Price Control V, we do not need to cost them, so flag as Do Not Cost.

However, it appears we now have different Standard Pricing across all plants ?

i do not believe this is correct

For a manufactured part, should the Price Control be S across all plants, and the Do Not Cost indicator un-ticked in all plants, so we maintain the same standard price across all plants ?

Can you help

many thanks

[Former Member · Accepted solution]

My first suggestion would be to get people with the financial know-how on your project, else I am quite sure you can assess the impacts.

As regards to this specific query, normally the materials are valuated at plant level (also called Valuation area), so you can have different price control for different valuation areas. But the normal practice for make part is to follow 'S' & for buy parts 'V'.

The do not cost indicator makes a difference when you carry out a cost estimate (eg: Material or Sales order etc.). If it has been flagged, then these materials will not be costed. Instead of just going ahead and making an ad-hoc change now, first draft a plan as to how the company wants to valuate its material. The draft should contain detailed explanation as to how the material is to be costed, how inventories will be valuated, whether there is a need to have split valuation, whether there is a need to have inventories valuated for stock & reporting purposes differently, legal requirements etc.

I believe this will be a project unto itself & if a short cut approach is adopted, then you would land yourself in more trouble. As changing and / or maintaining something in SAP has to be based on sound business logic.

[Former Member · Accepted solution]

Thanks for your help Vivek

It seems there is no clear cut answer. Unfortuntely our FICO area has limited know how

I shall take up your suggestions with Management to assess how best to manage

many thanks