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Former Member

Do Not cost and CCS

Hello Everyone,

Afresh to CO module and have a question on the 'Do Not Cost' indicator on material master data and it's effect on material costing.

I have a raw material that has this indicator marked and the OBYC configuration has GBB - VBR mapped to, say, cost element 123.

Now, when I run CK11N for the finished product (the BOM has the raw material), I get the error message that the cost element 123 is not assigned to a cost component.

I understand this error can be resolved by OKTZ configuration with the 123 cost element and origin group from the material master data.

However, my question is, what is the purpose of 'Do Not Cost' indicator in the material master data and what role does it play in costing of a FG of which the RM is a component ?

I have read the SCN threads on this topic (a lot I would say) but didn't really understand what it means by "If the material is included in another cost estimate as a component to be valuated, the valuation price is determined through the valuation variant if no cost estimate with the same key exists for the material."

So summarizing, my question is "for the costing of a FG with a RM having Do not cost, is OKTZ configuration really required ?"

Regards,

-Ani

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    author's profile photo Former Member
    Former Member
    Posted on Jul 21, 2014 at 12:14 PM

    Hi,

    Your question: "for the costing of a FG with a RM having Do not cost, is OKTZ configuration really required ?"

    The answer is "YES", because OKTZ assignes the value of RM to the cost component you want it to.

    It doesn't matter if the "input material" has the "do not cost indicator" or not, the GBB /VBR account number / cost element must be assigned in OKTZ otherwise the mentioned message appears.

    The "do not cos"t indicator prevents a material from being costed. Compared to a system where the "do not cost" indicator is not set properly you will get a faster costing run (CK40N) and it helps to limit the number of messages created in the costing run, thus it makes sense to set this indicator where it is needed.

    BR Christian

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  • Posted on Jul 21, 2014 at 12:22 PM

    Hi Ani,

    "for the costing of a FG with a RM having Do not cost, is OKTZ configuration really required ?"

    Yes, For the FG is concerned this required to determine to which cost component the cost of the raw material to be included.

    ' Do not Cost' is set for the raw material only - no cost estimate is required for the RM.

    BR.

    Ramesan

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  • Posted on Jul 21, 2014 at 12:23 PM

    Hi Ani,

    In simple words, if you put "Do Not Cost" indicator for a input material (RM), system will avoid costing the RM which we don't want. Because, all Raw materials will have price control V usually hence, no need to do costing for input materials.

    But, for an FG, cost component structure will accumulate all the cost of input materials and provides you the break up of the total cost. So, both are individual requirements (Do Not Cost indicator and assigning CE in OKTZ).



    Br, Srinivas Salpala

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 21, 2014 at 02:06 PM

    Hello Folks,

    Thanks a lot for the responses. I've been chewing the points that were put across and it is starting to make sense.

    I believe the value of the RM to be included in total value during the CK11N of FG is determined by the valuation variant priority. However, I have a strange RM in my DEV client (i am calling it a ghost material) that,

    1) is a component of the FG

    2) has do not cost in master data

    3) no OKTZ setting when I am running CK11N for the FG

    4) the total value of 0.01USD is always picked up in the costing sheet

    I changed the standard price and MVP (material valuated V) of this ghost material and still the value 0.01 is picked up. Checked MMD, BOM and Routing but no where I see the value of 0.01.

    Any idea why (JUST) this material is permitting to finish CK11N for the FG without any OKTZ setting ?

    Regards,

    -Ani

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    • Hi

      Till now by seeing reply of the other consultants specially of Cristian Sir you may be convinced with your initial query.

      Now coming to the your 'Ghost material', I suggest to check OKTZ settings again and see that if the GL hit by this material is asigned in any of the cost components.

      If not the check if you have a cost component defined without giving a range of cost elements. You can check this on the screen where we assign the cost elements to the cost components. If that is the case then any cost elements which is not assigned to any of the cost components will automatically go to this blank cost component.

      Now coming to its value of .01, please check your valuation variant and check according to the strategies defined for material valuation one by one. You will definitely find this some where. Or else paste the screen of accounting 1,2 and costing 1 and 2 tabs of material master along with the valuation variant first screen i.e. strategy for material valuation.

      Regards

      Rajneesh Saxena

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