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Additive costs

Former Member
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Hi friends,

We have an issue related to Additive Cost. some costs which have been put live in the system since go-live have used additive costs to deliver the fixed ohd into the product cost instead of the purchase order condition type and

when conducting a cost roll up (CK40N), we were finding that we were getting 2 lots of additive cost because we have loaded new additive cost values from 1st may but we think the reason is that the we have loaded additive costs via the upload (CK74) but they are also pulling from the purchase order condition type so we are getting two lots of cost.

So we think the fix is that purchasing must update their condition types and we realised that the additive costs shouldn't have been loaded and we have deleted the additive costs because they never should have been loaded.

So advise me do we need to stop to upload or any other way to stop two times cost values.

Raju

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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resolved by follow the process

Former Member
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Hi,

Ideally you shouldnt have created additive cost estimate since your purchasing overhead are already coming from Condition record in purchasing.

You can either delete the existing additive cost estimate using CKR1 (only if additive cost estimate contains purchasing overhead).

Else in valuation variant setting for material prices, uncheck include additive cost estimate.

Regards

Chetan.

former_member188826
Active Contributor
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Chetan, just wondering, how can we include the freight cost into the cost component of the material. That is where perhaps, the freight need to be incldued in the additive cost?

Former Member
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Hi,

If you have a purchasing condition type for Freight, you can map that conditon type to origin group which in turn can be assigned to cost component.

In this way, the freight cost can be built up in standard cost without additive cost estimate.

Regards

Chetan.

former_member188826
Active Contributor
0 Kudos

Freight cost is added on to the basic standard cost of materials, which is fine. Basic cost of materials comes from regular cost estimate and the freight from additive. Now when a purchase order is raised, the vendor needs to be given a purchase order only for the basic price and not the freight. The material could be brought by own transport or the vendor charging separately for freight.

That being the assumption, the purchase order is loaded with a accrual type condition type for freight, which shall customized to create an accrual entry upon purchase. This could be meaningful to reduce/avoid the unwanted effect of distorted purchase price variance.