Std cost and WIP calculation

[Former Member]

Hi All,

We follow cumulative costing ( a lower level FG becomes Semi-FG of a higher-level material and so on) due to some business requirements. So today, the std cost of superior material consists of the std cost of the lower level item thru BOM plus its own cost ( Raw mat+activity).

Now, we have a requirement to calculate the stand alone or unacumulated standard cost and maintain that value in commercial price 1 field of 'higher level material master.

For this, I create a new costing variant and version and set the cost element for Semi FG consumption as 'not relevant for valuation' under tax and commercial price section of OKTZ. But when I run the cost estimate against the new variant the semi FG cost is still being considered and rolled up. Could you please help me understand why this is happening and what could be missing on my part?

Thanks,

Vamsi

[Former Member]

Dear Hemanth,

Currently, we calculate and update standard price of all Finished products using PPC1 variant in a regular way. If a FG is part of the BOM of another material then it is considered as lower level item which has a different valuation class in the material master.

For example: FG-A's (which has its own BOM & routing) standard cost is say $100 and FG-B's $250 ( $100 comes from FG-A which is a BOM component of FG-B), these prices are calculated,released and updated as standard price. FG-A is termed as lowe level or SFG item.

I know this could have been done differently but since this is the design originally implemented we would like to continue with this design but there is a new requirement now to calculate the 'stand-alone' standard prices for all FG's and update these values in any available field in material master.

To avoid any change management issues, my idea was to create a new costing variant which will not roll up the cost of the SFG item and later update this new alternate standard price in tax price 1 field of the material master , by changing the cost calculation and roll up setting in OKTZ.

A follow up requirement is to calculate WIP using this new costing variant for informational purposes.

Please let me know if this is helpful to clear the requirement or if you need any further details.

Thank you again for your help so far.

Thanks,

vamsi

[Former Member]

Hi Hemanth,

I cannot consider the option 'do not cost' in either material master or in the BOM since the SFG should be costed and rolled up for standard costing calculation( PPC1/ Version 1).

I am looking to calculate an alternate cost with the SFG cost roll up and save the data in tax 1 price field.

Hope I am clear.

Thanks for your help so far.

Vamsi

[Hemanthkumar]

Dear Vamsi,

You need to calculate unaccumulated cost and store it in commercial price 1 or Tax price 1 field of Higher level material master is your requirement, if I understood correctly.

What do you mean by alternate cost calculation with SFG roll up? Could you illustrate more???

Best Regards,

Hemanthkumar

[Former Member]

Dear Hemanth,

Appreciate your quick response. Please note, the cost roll up flag has already been deselected for this particular cost component.

Attached is the screen shot for your reference.

Thanks,

Vamsioktz-sfg.png

[Hemanthkumar]

Dear Vamsi,

Deflag the Do not cost check box in material master costing 1 tab for Sfg. Now give an attempt

Best Regards,

Hemanthkumar

[Hemanthkumar]

Dear Vamsi,

Deflag the Roll up cost component check box in oktz for sfg. By virtue of this, sfg component won't be considered in Cost calculation of Fg

Best Regards,

Hemanthkumar