If this indicator is set, the material is costed using costing with a quantity structure (BOM and routing).
The system searches for any existing cost estimates with quantity structure for the individual materials; it ignores existing cost estimates without quantity structure. If the system does not find any valid costing data for the materials, it costs the material or accesses the price in the material master.
If this indicator is not set, the planned costs for the material are calculated using the cost estimate without quantity structure. In this case, you use unit costing to create the quantity structure manually by entering costing items for materials and activity types, for example.
The system now searches for any existing cost estimates without quantity structure. If a cost estimate without quantity structure exists for a material, the results of this cost estimate are included in a cost estimate with quantity structure. If there is no cost estimate without quantity structure, the cost estimate with quantity structure accesses the price in the material master record. The planned costs for this material then go into the cost estimate with quantity structure as raw material costs.
This does not apply if the indicator Ignore prod cost est w/o qty structure is set in the costing variant.
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