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Do not cost indicator in Material Master - Impact in CO-PA

Oct 26, 2017 at 11:01 AM

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Hi,

I wanted to freeze the SFG cost while valuating FG & hence I activated "do not Cost" in SFG material master. Post that when I run cost estimate for FG & try to view the cost component break-up, system does not bifurcate material cost into Raw Material, Packing material etc. but shows under cost component group "SFG". As a result, even CO-PA cost component breakup shown total material cost as SFG. The same is not the case if SFG is not ticked as "Do not Cost" indicator. Meaning: CO-PA cost component breakup shows "Raw Material", "Packing Material" etc.

Can anybody throw some light on this?

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4 Answers

Best Answer
MALAY VAKIL Oct 31, 2017 at 04:44 AM
1

Hi Harnish,

To meet your requirement "Do Not Cost" is not right solution. You have to use "Transfer Control" so SFG materials will not valuate when you try to release standard cost for FG

Regards,
Malay

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Thanks Malay. It worked.

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Harnish Shah Oct 27, 2017 at 06:02 AM
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Hi,

There are huge fluctuations in RM prices and those percolate down to SFG & ultimately FG. I want to run cost estimate for FG each month but would not like to impact the cost estimate with fluctuations in RM prices. Hence I would like to run cost estimate of SFG once in 6 months or once in 3 months & then would like to freeze the price. But would like to run cost estimate for FG each month. I would also not like to compromise on the cost component breakup as that is critical to my CO-PA reporting.

One of the solution is using Planned Price fields in material master of RM. But the volume of such RM is huge. So that is not a feasible solution.

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Muhammad Usman Akram Oct 28, 2017 at 04:37 PM
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Dear Harnish,

As per my understanding, donot cost check is used on raw materials only so that at the time of costing run, system could exclude reading those materials for cost estimate. in your case if you use this check on SFG then you will not be able to run cost estimate on semi finished goods however while running cost estimate on finished materials. if price is available in material master of semi finished goods then system will read it but will not explore its BOM and Routing which will effect cost component breakup as well and if price is not available in system then system will post error.

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Muhammad Usman Akram Oct 26, 2017 at 01:07 PM
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why you want to freeze it?can you please explain?

Donot cost indicator is used if you don't want to include a particular material cost into cost estimate.

Please also read F1 Help

Do Not Cost

Controls whether a cost estimate or a procurement alternative can be created for a material.

Use

If you select this indicator, you cannot create any of the following for this material:

  • Material cost estimate (with or without quantity structure)
  • Sales order cost estimate
  • Procurement alternative

The material is excluded from selection and BOM explosion, so that no cost component split will be created by the costing process. If the material is included in another cost estimate as a component to be valuated, the valuation price is determined through the valuation variant if no cost estimate with the same key exists for the material.

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