Current Price Vs Future Price and Roll Up

[Former Member]

My client is facing a situation where they have to create a future cost for the same fiscal year, just a period in the future. The valuation variant has a setting to look for the latest planned price feild updated for the purpose of costing. In one specific case the planned price 1 was X and the raw material (A1) was costed based using costing variant to create current year standard. This has to finally roll up to calculate the standard price of the finished good (12345-6).

Than a new planned price 2X was entered in the system for raw material A1 and using the same costing variant a new standard was calculated and marked but not released (so that is the future price, a period in future of the same fiscal year). After the future was set, the user proceeded to calculate the standard price for finished good 12345-6 and marked and released it only to find that the price of raw material A1 was 2X where as we expected to pull X since this was the price set as the current standard while 2X is the future price.

Can you give me a logical explanation of why the system does that. Is there a way to avoid it.

[Former Member]

When you roll up the cost, all parts involved in the costing process are re-costed according to their updated master data, so once you set 2X to be the planned price, the system used this price.

In CK40N, try unchecking "Always recost material" in the parameters of the selection step. another solution is to block the raw material from being costed at the master data level until you finish the costing of the finished good.

Yoel.

[Former Member]

When you roll up the cost, all parts involved in the costing process are re-costed according to their updated master data, so once you set 2X to be the planned price, the system used this price.

In CK40N, try unchecking "Always recost material" in the parameters of the selection step. another solution is to block the raw material from being costed at the master data level until you finish the costing of the finished good.

Yoel.

Thanx for the reply. In the similar scenario when 2x in updated in plan price field and the future is marked using a different costing variant (we use it to mark future prices) for period 1/ 2012 and than the finished good is recosted using the costing variant for current year (used to mark and release current standard) than the raw material is rolled up with the price X and not 2x (since x is the current standard). I haven't tried your solution and I will try it soon but it is the concept that I cannot understand and it is really bugging me.

[ajaycwa1981]

Hi

What the system did is absolutely correct...

If 2X is existing in the material master @ the time of cost calculation, it will pick up 2X....

In your case, your valuation variant should have referred to Plan Price 1, Planned Price 2 and then other prices...

You can have X in Plan Price 1 with a ABC validity date and then 2X in Plan Price 2 with a differnent Valid from date... This can serve your purpose

Br, Ajay M

[Former Member]

In your case, your valuation variant should have referred to Plan Price 1, Planned Price 2 and then other prices...

No, since the valuation variant has strategy of picking up plan price field that has the most latest update. So if Planned Price 2 field was updated on March 1st and Planned Price 1 field was updated on Feb 25th the system will pick Planned Price 2 field.

You can have X in Plan Price 1 with a ABC validity date and then 2X in Plan Price 2 with a differnent Valid from date... This can serve your purpose

The dates are different now too but because of the reason mentioned above 2X is being picked

I really appreciate the interest that you take in answering my questions, thanx

[ajaycwa1981]

Hi

If you have setting as Planned Price 2 as 1st Priority and Pland price 1 as 2nd priority in your Valuation variant, it will behave the way I said above...

I dont know about your current setttings in Val Variant, But if you do as I said above, It wont pick up the Planned Prce 2 by default

Eg: You execute CK11N with valuation date of 31.01.11.... Your Plan Price 1 is Valid from 01.01.2011 and Planned Price 2 is valid from 01.02.2011, CK11N will pick Planned Price 1 in this case...

Br, Ajay M

[Former Member]

If you have setting as Planned Price 2 as 1st Priority and Pland price 1 as 2nd priority in your Valuation variant, it will behave the way I said above

Yes but as I mentioned in the last post I dont have this setting in the variant. The settings in my variant says to pick up the fiels either plan 1,2 or 3 ....which ever has the latest planned date. For one issue the client would not be too inclined in changing the settings of their valuation variant to the one that you are reffering too. So I need to come up with a solution that works with the current val variant settings.