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Relevance of Low Level Code in PP

Hello Experts,

Warm Greetings!!

I am here with a query on Low Level Code. I have a basic idea of what Low Level Codes are and how they are calculated within a BOM. Let us say, a BOM is created and the same has been consumed by a Sales Order.

Below are my questions in this context.

1. Is Low Level Code mandatory during Sales Order Costing? If Yes, Why?

2. If No, How to facilitate Costing without Low Level Code?

Looking forward to all your answers.

Thanks a trillion in advance.

Best Regards,

Ram

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2 Answers

  • Best Answer
    Posted on Oct 12, 2015 at 12:44 PM

    Hello

    In costing It uses low level code for costing roll-up to its higher low level code material.If your scenario is MTO ,costing will be based on SO based.

    Are you getting any message when you creating SO?

    Regards,

    Velmurugan S

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    • Velmurugan S Ramachandran Vijayalakshmi Rajan

      Hello,

      In general product costing reads the BOM and routing for cost estimation.(BOM is for Raw material cost and Routing is for Activity cost).This BOM and routing is known as Quanity Structure in CO. But In variant Configuration, BOM and Routing will be configured dynamically based on Sale order Configuration details.

      But for your case,Please ignore below reply from me.

      If you want switch off BOM and routing ,you can remove Quantity Structure in Costing View,but this will calculated without quantity structure (BOM and routing)

      Did you tried with below link

      no itemziation exist fro material in plant | SCN

      Regards,

      Velmurugan S

  • Posted on Oct 12, 2015 at 12:59 PM

    Hi Ram,

    The purpose of low level code comes in material planning. As soon as a material is created it is assigned to low level code 999 and gets recorded in planning file. Once its used in a BOM, The low level code changes based on the position in which the material is assigned. If its the BOM's header material , code would be 000, first level material 001 and so on. low level coding hence determines the sequence in which material is planned during requirement planning. So material with 000 is planned first, then 001 ...and so on.

    Now, coming to your question, as per my understanding there these low level codes are maintained in BOM management program and has influence in planning. So if there is a BOM in SAP it would definitely have low level code. You can not have BOM without low level code. I am not sure about your question regarding sales order costing but since you are dealing with a BOM, you will have low level codes and material planning / requirement generation happens for complete BOM structure using these codes. I feel sales order costing in not direclty linked to low level codes as such but it only helps to calculate total cost for finished product by adding up cost of all assemblies / components used.

    Regards,

    Rohit

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