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material cost calculation without scrap

Former Member
0 Kudos

Hi all,

I have a requirement to estimate material cost of a product without any scrap, although there are component scrap percentage maintained for some components.

Example

To produce one X needs one raw material A. Material A has a component scrap of 10% and one part costs 10 EUR.

To produce 100 of product X you need 110 of material A. That is ok for production, but in the calculation of X the costs are 1100 EUR. Finance wants the cost without scrap of 1000 EUR as standard price.

Is it possible to exclude the scrap in the calculation?

Thank you for your help.

Regards, Vela

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
0 Kudos

Hi,

Probably the simplest option would be to create another BOM (costing BOM) and asign it to quantity determination structure in product costing.

Of course this new "costing" BOM should not contain scrap.

Cheers,

Szymon

Former Member
0 Kudos

Hi,

I have created an alternative BOM without scrap an another calculation variant (only for calculation) and it works.

But it is a lot of data maintanance.

For mass data the solution of Ajay sounds good. To delete/set the scrap from material master is possible with transaction MASS.

Thank you all!

Regards, Vela

Former Member
0 Kudos

Hi Vela,

actually I have to deal with the same requirement.

But to maintain a second BOM (without scrap) or to delete/set scrap in the material master is to extensive (time consuming/complex). The other point is, that we maintain scrap not in Material Master but individual for each Material in BOM.

my question is: Did you try also other options e.g. user exit or something else?

Thanks

regards

Former Member
0 Kudos

Hi

Go to Material master - costing tab - select Do Not Cost option.

ajaycwa1981
Active Contributor
0 Kudos

Hi

what are you trying to say? The query relates to avoiding scrap in calculation.. setting Do Not Cost will not cost the material at all

Regards

Ajay M

Former Member
0 Kudos

HI Ajay,

i guess what sap07 mean is that scrap thing has his own material number and it's Ok to tick that item in material master.

regards

ajaycwa1981
Active Contributor
0 Kudos

Hi

I dont think that is possible... Your standard costs are supposed to reflect the scrap as well, else you will always endup showing unfav variance..

If you include component scrap in BOM, that will have an impact over the standard cost....

If you still want it, remove the scrap from the BOM, run the std cost and then update your BOM with component scrap

Regards

Ajay M