Costing relevancy

[Former Member]

What is costing relevancy indicator in BOM and Routing?

If we give costing relvancy to 50% how does it effect the costing ?

For example for Material A costing relevancy is 50 % in a BOM

Material B has Material A in it's BOM

so for costing lot size of Material B how does it show up material A details ?

Does it show that only 50 % of quantity A is issued or 100 % of material A is issued but with 1/2 price of material A.

Can some body throw light on it

[Former Member · Accepted solution]

Hi Aparna,

Costing Relevancy is used to tell the system whether the cost of the materials (in case BOM) and the cost of the activites (in case of Routing) is to be considered and included in the cost of the product being manufactured.

In the Costing Variant (OKKN), Go to Valuation Variant, Go to "Misc" Tab, there you will find the button for "Price Factors". When you click that button, you will find a button "Costing Relevancy" on the right-bottom corner.

You can create a key (for example : "X") indiacting Costing Relevancy. Once you save it, you come out to the original screen of "Misc" Tab of Valuation Variant, click on "New" icon adjacent to "Price Factors" button. Now you will see a screen with the following columns..

Valuation Variant - Costing Relevancy - Fx Price Factor - Vble Price Factor.

Here you will mention the ratio (%) of the cost to be considered.

Ex: 001 X 0.500

In the above example, your valuation variant is 001 and costing relevancy key is X and cost to be considered is 50%.

So, when you assign this "Costing Relevancy Key" - "X" in your BOM, the system will take 50% of the BOM Componet for calculating the cost of the product being manufactured.

Hope you got it, if need more info, reply...

Srikanth Munnaluri