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Standard Cost Estimate of Variant Configurated Material

Former Member
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Dear Gurus,

We are using variant configuration, each variant has a material number. As you know, similar group of materials has a variant reference in MRP3 view. It means that there are 3-4 (differentiate parallel to material groups) super BOMs and Super Routing in the system.

The business scenario is that: SD enters Sales order with configuration info, PP converts it to production order. Produced materials enter to stock with material number and valuated in the level of material.

Under this case, I need cost estimate for each material (each variant).

When we run the CK11N tcode, the system calculates something but the BOM and Routing ingredients do not match with variant values.

How is the system work in standard cost estimate of variant configuration? What should we control or do in order to reach exact variant canfiguration components in the standard cost estimate? What is the logic of system in this case?

Would you please guide me about the problem?

Thanks in advance

Ahmet

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Answers (3)

Answers (3)

Former Member
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Hi Ahmet/Ajay..

What Ajay is telling is the right way to estimate MTO because where sales order is a cost object, estimation should be done at SO level and after MRP run and conversion of Plan order to Prod order there will be no mismatch between sales order estimation and prod order estimation.

But sometimes users do the prod order without sales order cost estimation and in that case required a stand cost which can be made through CK40N.

Ajay, you are right and thanks .....

kkumar

ajaycwa1981
Active Contributor
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Hi Biswas da

You still cant use Ck40N because it will be a mammoth value...

Consider this... You have a Super BOM for Configurable material CAR which has Blue, Black, Yellow, Red and all sorts of Paints in it...

If you calculate Std cost from Ck11 / Ck40N - The Std cost will consist of all these materials which is not correct because your actual car will have only one of them

During Sales order punching - You choose the Color ordered by Customer and hence your Sales order cost estimate is based on the color chosen by customer

In order to avoid the situation you mentioned - Make settings in Req Class for automatic costing & marking of sales order cost estimate

OR

use BADI Workorder_update and write ABAP code to check that a valid sales order cost estimate exists

br, Ajay M

ajaycwa1981
Active Contributor
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Hi Ahmet / BIswas da

Sorry, But i dont agree with the above reply...

CK11N / Ck40N is meant for MTS scenario.. It is not meant for MTO scenario...

The indicator in CK40N for Configurable materials is where you use Variant Material and not Configurable material

In the case of Config Mat, where sales order triggers the desired chars - This in turn triggers the BOM and Routing for Prod order.... sales order cost estimate is the ONLY & CORRECT choice for such cases

Ck11N does not and can not correspond to the chars you selected in Sales orders.. ONly sales order cost estimate can do that

Your Req class settings must specify the use of Sales Order Cost Estimate.... The Fields Costing ID, Costing Type etc in Req class needs to be filled... Also, the field Valuation must have M (Separate Valuation with ref to Sales doc)

br, Ajay M

Former Member
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Hi Ajay / BIswas da

In our case Sales Order is not cost collector, Cost collector is Prod. Order. And stocks are valuated in the detail of material number NOT Sales Order item. Actually Variant selection in the step of creating Sales Order is used to determine material configuration, As I mentioned in the prev. message that Each combination of variant is a product, Therefore we do not use MTO scenario, rather MTS scenario in terms of stock valuation.

What can be solution alternatives? I guess I could explained my problem clearly? Using variant configuration is much more like a tool for us in order to simplify logistical operation (production order items etc) rather than costing and stock valuation.

Ahmet

ajaycwa1981
Active Contributor
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Hi Ahmet

As far as I know, I have never seen such a case... If you have each variant as a Product - Then there should be no need to enter chars in Sales order.. you could have directly created a sales order with the Mat No

Anyways, in Ck40N - there is a indicator below Plant / Material to select "Configurable Material"... you can try this indicator

In my opinion, if you are having super BOM, etc - Then sales order cost estimate should have been used

br, Ajay M

Former Member
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Hi Ajay,

Repeating materials have sales order with material number, new configurations are created in Sales order with variants.

More than half of the materials are repetitive and use fixed variant, not changes in each sales order. I do not have detail knowledge in variant configuration and we need to do standard cost estimate because of certain reasons. This is the case, I am not sure how to solve the problem, it seems such a complicated case.

Ahmet

Former Member
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hi..

you can do standard cost estimate of configured mat by using CK40N. During flow step selection you will get a tab "configured mat".

kkumar

Edited by: kkbdsp on Apr 29, 2011 10:46 AM