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KMAT sales orders - how to do an additional Cost Estimate?

Hello gurus,

My company uses KMATs and variant configuration, with dynamically determined super-BOMs and super-routings. We have configured the requirements type for a standard cost calculation that is the basis for the valuated sales order stock. All works well.

Our Sales and Controlling teams are now asking for a monthly current cost estimate because our raw material prices are very volatile.

There seems to be lots of flexibility with standard materials and multiple cost estimates/costing variants with CK40N...yet I cannot find any functionality to do this for sales order costing. Everything is driven by the requirements type, I can't use CK55 to calculate based on a different costing variant.

Is this an unusual request? :) I couldn't find any posts in SCN, or any mention in OSS notes for this requirement. I found some information on SD user exits and some costing function modules and Includes...but nothing specific.

Any advice is most appreciated!

Best regards,


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2 Answers

  • Jan 04, 2017 at 02:13 PM

    Hi Adrian,

    Good Day!!!

    If my understanding is correct, your requirement is to run 'Cost Estimates' for KMATS (=Configurable materials) on MONTHLY basis like in case of Standard costing (=CK40N).

    But, whenever a material is of 'configurable nature', you cant have 'cost estimate' on general mode (=CK40N @ Plant level) as valuation is specific to object (i.e. Sales Order). Hence, it has to go through Sales Order Costing only (=CK55) which implies that this 'estimated value' is valid only for that Sales Order line item based on that Sales Order BOM. Hence logically, you cant see such 'order-specific' valuation in MM03 which is at plant level.

    On the other hand, once Sales Order costing is calculated and further work is started, logically we should not run the same again as the very purpose is to measure efficiency of planning of production team (by comparing Sales Order Costing value with Actual cost of production, difference being charged to Sales Order as 'Production Vairance'. In a nutshell, CTO or MTO or ETO process of manufacturing.

    To conclude, i opine that this requirement is not valid logically as 'configurable materials' are linked to a CO Object i.e. Sales Order and hence can be costed only with that object, which implies they cant be costed periodically but as and when required in that object. Hope this clarifies.

    Kindly correct me, if my perception is wrong anywhere.

    Warm Regards,

    CMA Ramesh Kolluru,


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    • Former Member

      Hi Ramesh,

      I'm doing sales order costing of Kmat material which has a phantom assembly.

      Components of kmat are costed and shown in the cost structure,but components of Phantom are not being captured.

  • Mar 27, 2017 at 08:34 PM

    A belated thank you for the response. The requirement isn't on 'general mode' per se. Our sales teams want a sales order costing that reflects a closer approximate to the current market price of our primary raw material. They don't want the costing that is based on the yearly standard price. So our yearly standard sales costing variant is assigned to the requirements class and is the basis for our inventory valuation, but the sales teams want a statistical costing in addition to this.

    I can appreciate their wish, because our raw material is petroleum based and very seasonal, so a yearly standard could be e.g. $1/kg but fluctuate from $0.75 - $1.25/kg. The customer selling prices are driven by the raw material cost, and so the yearly standard is not helpful for them to analyze and manage their margins.

    And we don't have Material Ledger turned on :)

    So it seems we are going down the path of Order BOM cost estimates, and we will have to generate them in addition to the 'official' sales order costing driven by the requirements class. BUT...the transfer to CO-PA doesn't seem so easy because costing keys don't let you pick a costing variant when you want to pass a sales order estimate.

    As of last week, we had conversations with some SAP developers, and they suggested Order BOMs and KE27 Periodic Revaluation to get the sales orders updated in PA. But this transfer aspect isn't clear to me still. They haven't given us the details, not until we engage them, I would say ;)



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