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Former Member

production order cost estimate

Hi, guys:

In MTO scenario , we did not do sales order cost estimate . when production order GR ,the price of which is not equal to the price of the material . The Current valuation strategy in table EBEW is 2 - Value from production order cost estimate .I am confused when do the production order cost estimate .

Is when the fist movement of production order or released of production order ? would you help me . thank you very much .

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2 Answers

  • Best Answer
    Apr 05, 2016 at 04:43 AM

    Hi Liang

    Production order cost estimate is calculated when you Save/Release the production order.

    You make that setting in order type at the plant level. I think it is OKZ3

    Hope this helps. Please close the thread if resolved

    Ajay M

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    • Hi Liang

      if you have material cost estimate available from sales order, you won't need production order cost estimate. It should still calculate (you should see planned cost in co03). But there is no harm even if it not calculated

      Go to MR21- Enter Plant - Dates

      once inside, choose the Variant as Material + Sales Order in the middle of the screen

      now you can enter material and sales order #. Change the price as you wish ( New price)

      Ajay M

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    Former Member
    Apr 05, 2016 at 08:27 AM


    Production order’s preliminary cost is not used to valuate the production order GR.

    Standard cost for valuating inventory is calculated and released when you create or modify sales order.

    If you don’t generate production order’s GR, you can modify the standard cost for sales order using t-code CK55.

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