Production BOM & Costing BOM

[Former Member]

Hi,

We have defined production BOM's with costing relevancy indicator 'X' for BOM items.

Now is there any need to maintain Costing BOM's. What impact does Costing BOM make over & above the production BOM's.

regards,

Mohit

[Former Member · Accepted solution]

Production BOM and Costing BOM are one and the same,

If you have maked it as costing relevant then it is implied that the top level/ header material of the BOM will be costed based on the component inputs.

For Most of the cases Production BOM will be same as Costing BOM.

Production BOM:

This BOM contains items that are relevant to production. These items are copied to the planned order. Dependent requirements are generated for them, and they are copied to the production order.

Costing BOM:

This BOM contains items that are relevant to determining the material costs of a product.

When you calculate production costs using a quantity structure, the system automatically determines the BOM and all the BOM items that are relevant to costing, in order to calculate manufacturing costs.

http://help.sap.com/saphelp_46c/helpdata/en/cb/69ec6eb435d1118b3f0060b03ca329/frameset.htm

http://help.sap.com/saphelp_46c/helpdata/en/34/55c90c98482bc0e10000009b38f91f/frameset.htm

Hope the above helps you.

[Former Member]

Hello Mohit,

Both BOM are diffrent and will be used for the seperate business araes like production BOM in production area and costing BOM in costing.

You can create BOM for a part for costing usage and give the usage indicator in the accounting view of the material master then during standard cost estimate system use this BOM for costing. If the usage is blank or production then production BOM will be used.

At the production confirmation actaul cost will be taken with reference to production BOM or per the selection criteria in the costing variant.

Regards

TAJUDDIN

[former_member196398]

Hi Mohit,

Generally if the client is R&D and manufacturing, this type of scenario exists. Intially at the R&D and Design stage if the costing team wants to have a look at the product cost to decide on the Pricing, they create Costing BOM. Latter on during acutal production of the product they copy the Costing BOM and create one for production BOM with additonal components if necessary.

When a BOM is created with usage Production default in the component details "Production relevant" check box will be activated. Similarly when created with usage Costing, "Costing relevant" relevancy is activated.

Hope this helps... reward your points,

Regards,

Prasobh