We have a scenario where we will be importing Material X as trading material and process the material to finished stage in-house with some coding and packaging. In order to avoid creating another finished product with different value class (as per our business process), we are testing the option of recursive BOM. Here is the scenario for BOM:
Material A --> packaging material X
packaging material Y
Material A (with 0.960 EA,as the costing gives error if the quantity set up is 1 EA)., with recursiveness allowed option
When we do the costing for material A, the result expected for total cost is Material A Price (Price set up in master with Price Control 'V', 2000 USD) + Material X price (25 USD) + Material Y price (15 USD). = 2040 USD
Instead, the BOM is exploded 8 times during costing, and the final cost is about 1012 USD.
Is this the standard behaviour, as it seems if the 'recursiveness allowed' indicator is set in the BOM, it prevents from exploding the BOM repeatedly during costing.
We are on ECC 6.0
Please advise if anyone has experienced similar scenario.