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Standard Cost Estimate CK11N, CK40N ignores Origin Group

Hi Everyone,

I'm having an issue with Standard Cost Estimate for materials with Special Procurement Type. We created Origin Group and assign it in Cost Component Structure to move O/H cost from Sending Plant to Material Cost in Receiving Plant like below example:

Cost Element Origin Group Cost Component Description

673000 S01 1 Raw Material

673000 <Blank> 2 Overhead

We also assign Origin Group in material master, however, when executing costing run, Cost Element doesn't split as expected. Did we missed any other configuration step?

Thanks.

Will

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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Mar 29, 2016 at 03:19 AM

    Hi Will

    Did you explore the possibility of using Auxiliary Cost Component Split. I believe it should take care of your requirement.

    Regards

    Mustafa

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  • Posted on Mar 29, 2016 at 02:04 AM

    Hi Srinath and Ajay,

    Thanks for your reply. Cost element category is 43 for production overhead.

    Our business requirement is to treat both Material Cost + Overhead Cost in Sending Plant as Material Cost only in Receiving Plant. That's why we came up with above solution using Origin Group. I already configured exactly as Ajay mentioned above. Somehow Costing Run doesn't split as expected. Please advise what is wrong or missing here?

    In Sending plant, we don't want to change Cost Component Structure so I think it's not right to maintain Origin Group in Material Master from Sending Plant.

    Thanks.

    Will

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  • Posted on Mar 28, 2016 at 09:50 PM

    Hi Will,

    I wonder if you have created the overhead cost element with cost element category 41.

    Also, please check if you have the origin group assigned in the material master in sender location.

    Since it is plant transfer, the origin group would be considering from the source location.

    Hope this helps.

    Regards,

    Srinath

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    • Hi Will, That's weird. check if the origin group is part of cost component structure or not. Also, please send the screenshot of receiving location material CK13N screen and source material costing 1 view. That may give some hints. Usually, it has to take the origin group from source location material.

      Regards,

      Srinath

  • Posted on Mar 29, 2016 at 01:21 AM

    Hi

    How can cost element be same for Material and overhead cost component?

    overhead cost component must have category 41 cost element

    In receiving plant assign origin group in material master AND assign Overhead cost + Origin Group to Raw Mat cost component

    Summary

    RM Cos element - Material cost component

    Overhead Cost ele- Overhead cost conponent

    Overhead Cost ele+ Origin Group- material cost conponent

    Ajay M

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