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BOM costing at component level for trading goods

Former Member
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Hello Experts ,

My client deals with trading goods which are drop shipped by 3PL's. We have a scenario where they want the costing to happen at component level of the kit instead of header level. It's a sales BOM and all products are MTS . No manufacturing happens at client site.

My understanding was component level costing makes more relevance to MTO where sales order costing is done. In my above business case, can the cost be activated at component level. Is it a valid business scenario and what are the implications from MM/FI perspective.

If this could be done, apart from Item category cost activation for sub items and having the right Item category group (LUMF), is there any other setting that needs to be taken care of .

Please provide your valuable suggestions.

Sai

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Answers (1)

Answers (1)

Lakshmipathi
Active Contributor
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Even in MTS scenario also, we do costing. Since the material is being procured externally, you can set the material as moving average price with price control V in master data and do goods issue so that system will take care of cost.

Former Member
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Thanks Sir. From what you said, I am understanding that in case of BOM material which explodes in sales order, if I set the material master settings to moving average price for both header and child materials, the costing at component level will be taken care. Please correct me if I am wrong.

How about the settings at the BOM level (CS01) for header and child materials?

Thanks

Sai

Lakshmipathi
Active Contributor
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As for as costing is concerned, you need to discuss with FI person.