Change of Production material Costing Price with BOM confirmation MAP Price

[Former Member]

Lets say I have a production material with bom as material A=30%, B=30% and C=40%. I have cost estimated it and released with Rs 100. MAP and standard price of production material is now updated with Rs.100.

But when I confirm this material through MFBF, I only used material A with relevant quantity, now business have requirement to update the price and costing of Production material with this new Price which comes through MAP of material A.

How can I achieve this as I am getting same 100rs of production material irrespective of any change in BOM while confirmation.

[Former Member]

Is there any solution available to fulfill this requirement.

[Former Member]

Is the post is visible to all the SCN members, as not receiving any reply from any expert.

Hope I able to make my requirement to undertand to all.

[rajneesh_saxena]

Sir

Kindly think, what is the purpose of having standard cost estimate?

Apart from other uses one of the most important purpose of SCE is that it is used as a benchmark to evaluate your operations in the shape of variance analysis. If you are changing your std cost with every transaction (GR from Prod order) then the said purpose is lost.

How ever you can make use of Mixed costing, as I suggested earlier, and by using that you will be able to do variance analysis also which will make better sense to the business.

Rajneesh

[Former Member]

I think Mixed costing will not cover the requirement as the quantity of BOM component on confirmation will also vary on every MFBF transaction.

[Former Member]

Is there possibility of change in Price and MAP for Production material dynamically after release of its cost estimate with the change in BOM component on confirmation.

[Former Member]

Has anyone come up with these type of production order confirmation.

[rajneesh_saxena]

Hi Prem

This is standard design. If at all the cost is not significantly different you should convince them to accept this.

Moreover, Kindly tell us that BOM components A,B and C can alternatively be used to manufacture your FG? If this is the case then you may have four BOMs (one as per your given ratio and three for A and B and C separately) and accordingly four prod versions for your FG. Use mixed costing. This way an average cost will be updated as Std cost in th FG material and all GR will be done using that cost. Variance analysis will be available for relevant prod versions.

Regards

Rajneesh

[Former Member]

Yes, BOM components A,B and C can alternatively be used to manufacture the FG and also the ratio of quantity is dynamic on every production order confirmation. There can be many combination based on availability of BOM, so creation of 4 prod version will only be restricted to only four condition.

Is there any solution where production material MAP and Price would change based on dynamic combination of BOM component.

[former_member198650]

Hi Prem,

You can release the price once in a period. If you want to change re calculate the price, then first you have to delete the cost estimation in CKR1 and after that you run the costing with changed BOM.

Regards,

Mukthar

[Former Member]

I want to change the price dynamic on production order confirmation with change of BOM qty.