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Former Member

What is the purpose of With qty structure in Material Master ?

Hi All,

What is the purpose of With qty structure check box in Material Master in costing view 1.

To my understanding it is only to improve the performance of system. hence the reason the check can even be maintained for raw materials having price control V in accounting view 1, External procurement in procurement type in MRP2.

Please explain your views.

Regards

KM Naidu

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 26, 2007 at 07:18 PM

    Costing in sync with a BOM and routing is implied onto a quantity structure.An actual quantity structure is created from goods movements and the associated flows of actual quantities, and is based on procurement alternatives and procurement processes.

    Basically , It is used for multilevel material price determination in actual costing.

    Regards

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  • Posted on Dec 26, 2007 at 09:25 PM

    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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