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Former Member

Costing Relevancy - Not working


I have maintained Costing Relevancy 1 against Valuation Variant and maintained price factors 0.50 for costing relevancy.

I am using the same in BOM against particular material.

However, when I run the cost estimate, the system is calculating the 100% rate of the raw material and not 50% as maintained in BOM.

Please suggest.

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 24, 2009 at 08:44 AM

    Hi Swapnik,

    Pls go through the following...

    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.

    In addition to the above, pls check if the Valution Variant (in which you have defined the Price Factors) has been assigned to the Plant (in which the BOM is maintained and Std Cost Estimate run is taken place)

    Pls revert back after checking the above...

    Srikanth Munnaluri

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