Error in amount at material price Revaluation

[Former Member]

Hi All

I have a problem where we need to revamp the material master standard prices.

So at month end, we are running the cost estimat - however, all is working fine except that the revalued amount difference between the old and new price is incorrect.

For example - old SAP std price was 7.10 and the new price after Costing is 4.17 so the difference would be 2.93 - however, my Material change document holds an amount of 1.76.

Why does it happen - any ideas?

Thank you

Rukshana

[Former Member · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

Hi ruksana,

Plz check the cost components, wherein , you will be mentioning, whether the cost elements are applicable for stock valuation or not.

Please segregate the cost elements, which are amounting to 1.76 and cost elements amounting to 1.17, then check whether the cost elements which are amounting to , 1.17 are made as relevant for stock valuation OR not.

regards,

santosh

[Former Member · Accepted solution]

Hi Santosh

Thank you soooo much for the response - I am stuck on this issue for the past 2 days.

Exactly where I check the cost elements are made as relevant for stock valuation or not?

Thanks again so much

Rukshana

[Former Member · Accepted solution]

Hi

PLZ CHECK CONFIGURATION OF COST COMPONENTS OF YOUR COST COMPONENT STRUCTURE. USE TCODE OKTZ.

PLZ REVERT FOR FURTHER CLARIFICATIONS, IF ANY.

SANTOSH

[Former Member · Accepted solution]

Hi again Santosh

What do I check in OKTZ

I have defined my Cost Component structure and assigned the cost component intervals, etc

what do i check there?

Thank you again

Rukshana

[Former Member · Accepted solution]

Hi Ruksana,

Double click on, any cost component interval. You will find the Option " Relevant for Stock Valuation".

santosh

[Former Member · Accepted solution]

Hi Santosh

GOtcha!

When I checked the OKTZ settings for labour - the radio button under 'Inventory Valuation' has 'Fixed and Variable Cost' selected.

Is that correct or incorrect?

Thank you

Rukshana

[Former Member · Accepted solution]

Hi Rukshana,

Go to OKTZ, Select the line of your Cost Component Structure, Double Click on "Cost Components with Attributes" in the left side navigation. Now, you will be able to see all the Cost Components which you have defined. Now, if you Double Click on any Component OR select the row of the Cost Component and press CtrlShiftF2, you will be able to see the properties of that Cost Component such as...

Radio Buttons for

Variable Costs / Variable and Fixed Costs

Cost of Goods Sold,

Inventory Valuation

Commercial Inventory

etc.

Try to understand the following logic...

If there are 5 Cost Components(1,2,3,4,5) in your Cost Component Structure and the Cost relevant to each Cost Component is 1-Rs.10, 2-Rs.10, 3-Rs.10, 4-Rs.10 and 5-Rs.10.

Now, if out of the 5 Cost Components, in two components, for the "Inventory Valuation" (inside those Cost Components), the radio button for "Not Relevant" is opted....

then, when you run the Std Cost Estimate, you will see Rs.50 as total cost (pertaining to all 5 components) but, when you release the Std Cost Estimate, only Rs.30 will get updated in the Material Master. (The cost relating to the other two components in which the radio button for "Not Relevant" for "Inventory Valuation" was opted will not be included in the revalued Std Cost).

Check all of your Cost Component settings as above and revert back if you need further assistance...

Srikanth Munnaluri

[Former Member · Accepted solution]

Hi Srikanth

Thanks much for the very elaborate explanation

I get you now - but all my cost components in OKTZ are NOT set to 'Not Relevant'

My material master gets updated with the corrected new price without any problems at all - it is the correct new price

My problem is that the Price Change document which gets generated at the time of Releasing the cost estimate has a lesser value than the Exact price change {eg if the old price was 5 and the new price is 7, the difference is 2 eh? but my price change document had a lesser value}

Why does this happen?

Is it because of existing inventory in stock and if so - whats the logic behind that?

Thanks again

Rukshana

[Former Member · Accepted solution]

Hi,

I got your doubt, but some screenshots will really help to understand better.

Srikanth Munnaluri

[Former Member · Accepted solution]

Hiya Srikanth

i sent u a mail with screen shots on my Customizing

THANK U ever so much

Rukshana