Inventory Valuation based on Sales Order Costing

[Former Member]

Dear All

My client requirement is the inventory value should happen based on the "Sales Order Cost Estimate"

Kindly give the configuration steps, if it is possible in SAP

Regards

Anilkumar

[Former Member]

Valuation of sales order stock is controlled via the requirements class assigned to the sales order line item. It is not material type dependent. There are a couple of critical fields in the requirements class that control the process. The valuation field (KZBWS) must be set to M for sales order valuation. You can have the sales order valuated through a seperate cost estimate or it can be valuated using the material master price. If you want to valuate based on the material master then click the "without valuation" box (BWST3). Otherwise, enter a costing variant in the costing variant field (KALVAR). You should also set the costing id (AUCOST) to B. In the standard system you can look at requirment classes 042, 042, & 048 as examples.

The requirements class is assigned to the sales order line via the requirements type. The requirements type assignment is based either on the sales order item category or the material's strategy group and MRP type. You can find this assignment logic in configuration under product cost by sales order.

Good luck

[Former Member]

Hi rback59,

The information you have provided is very clear and accurate. Thank you. I am hoping that you can assist with a related problem I am facing:

We have sales order costing in place with the Material Ledger and multiple valuation. For financial reporting purposes, we have a legal valuation/local currency variant entered in our requirements class (46) and we are using this to value our sales order stock. The problem we are facing is that the requirements class allows us to enter only one costing variant. This means we are not able to create a cost estimate for our two additional valuation views (group and profit centre). As a result, we are forced to use the material standard price in the material master for the group and profit centre views which is not ideal.

Do you know if there is a way to create cost estimates in all 3 valuation views for a single sales order line item?

Any pointers would be appreciated.

Thanks,

Ross

[madhusoodanan_ramachandra]

Hi,

In SO based inventory valuation, SO will have one material with KMAT material type which will contain multiple materials with S or V price control.

For configuration steps go thru the nodes under IMG->controlling->product cost controlling->cost object controlling->product cost by sales order.

Best Regards,

Madhu