Do changing Material type affects Product Costing ?

[Former Member]

Hi All

My Client decided to change the Raw Materials to Semi finished. Can any body tell me how its gonna affect Product costing. I seems like I would need BOMs and Routings for every materail but what would be the direct impact on product cost ?

I would appreciate your early response.

Thanks

MKR

[Former Member · Accepted solution]

Hi,

1.Price control indicator in Material Master should "S" and Valuation class and any other change in Material master.

2.You have to have BOM and Routing for that particular materials.

3. After creating BOM and routings you have run material cost estimate(CK11N or CK40N) for that material.

Hope this helps.

Thanks,

Rau

[Former Member · Accepted solution]

Thanks Rau for the response. This helps on the functional side but what would be the affect on Business flows.

Thanks

MKR

[Former Member]

Hi

Changing the material type from one to another will not have any difference. Only in the process side, there will be some change like BOM/ Routing needs if the pricing control will become S and cost estimate has to be run.

Vijayanand Sankaran