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Former Member

cost estimate1 in material master

Dear Friends,

can anybody explain about the significance of fields 1)with qty

strucure and 2)material origin in the cost estimate1 screen.suppose, if we

keep either of one tick mark, how system differentiates the costing run

for a material in the orders?



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2 Answers

  • Best Answer
    Oct 09, 2007 at 04:12 AM

    Dear Krishnamurthy,

    <u><b>1.Material-related origin</b></u>

    If this indicator is set, the material number will be written to the cost element

    itemization in the Controlling module.The main use of this indicator is the costs

    incurred will be updated under a primary cost elementwith reference to the

    material number.This enables you to analyze material costs in the information

    system in more detail.

    Generally it's included and will be kept mandatory.


    2.Material Quantity Structure</b></u>

    1.A quantity structure consists of a bill of material (BOM) and a routing.

    2.In process manufacturing, a master recipe is used instead of a BOM.

    3. In repetitive manufacturing, a rate routing is used instead of a routing.

    4.If you always cost your materials (including raw materials) using costing with

    quantity structure, you should turn on this indicator. This improves performance,

    because the system does not search in vain for existing cost estimates without a

    quantity structure for every material when it explodes the BOM. Therefore, only

    turn on this indicator if you normally cost the materials using costing without

    quantity structure.

    Regardless of the setting, you can cost a single material with or without quantity

    structure. However, you should bear in mind that this setting is always used in the

    costing run and in mixed costing (creating procurement alternatives).

    <u><b>3.cost estimate without quantity structure</b></u>

    Here we enter the items to be costed (such as materials and activities) into a unit

    cost estimate manually.


    4.cost estimate with quantity structure</b></u>

    The quantity structure can be any of the following:

    BOM and routing (production by lot size)

    BOM and rate routing (repetitive manufacturing)

    Master recipe (process manufacturing).

    <b>So Generally both the indicators are to be set for a proper Cost Estimate and also

    to reduce the system load.</b>



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    Former Member
    Oct 09, 2007 at 03:10 AM

    Hi Krishna Murthy,

    The significance of <b>Qty structure</b> is as follows reasons:

    1) This indicator determines whether material is costed using <b>costing with or without a quantity structure</b>

    2) If you usually cost materials using <b>costing with qty structure</b>, <b>you turn this indicator</b>

    3) If you usually cost materials using <b>costing without qty structure</b>, <b>you do not turn this indicator</b>

    you can change the indicator in the material master record at a later time.

    you can cost a single material with or without, this settings is always used in <b>costing run and mixed costing</b>.

    The significance of <b>material origin</b> is as follows reasons

    If you set this indicator, the material no will be written to the <b>cost element itemization in the controlling module.</b>


    If you set this indicator, the cost incurred will be updated as

    1) under the primary cost element

    2) with reference to the material number

    this enables you to analyze the cost in the information system.

    please reword the points, if very helpful.


    Mohan R

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