Actual Cost Rollup

[Former Member]

Hi

I would like to have suggestions to provide the solution for the following requirement in Cement Industry

Client wants to create only one process order per month to produce SFG (in-house) and order will be closed at period-end (No WIP). At the time of settlement the variance amount should update the Standard Price in the material master, to roll-up the actual cost to the material in the next process where this input material is used as a component and repeat the same procedure till the highest node of the hierarchy is reached i.e. bagged cement stage.

• Moving Average Price cannot be used because SFG can be procured from vendors.
• Material Ledger cannot be used, It won't consider actual cost of material for next level of process. because actual cost  is not same for all periods.
• Client do not want standard cost estimate (CK40N) for any SFG. It's done for only FG (Cement) i.e. last process 

I thought to do it though Z development with MR21 and Split valuation, but it doesn't fulfill the requirement.

Please advise possible solution.

Thanks,
Kumar

[santosh_battini3]

When SFG can be procured from outside, and when client does not want to do CK40N on SFG, there is no point in using price control S.

using price control V makes more sense in this scenario. with price control V, it is possible to Settle variance to materials and there is no need to do CK40N.

please explain why price control V cannot be used.

[Former Member]

If I use price control V it settles variance (actual cost) on material but when I procure the same SFG from outside vendor, immediately it changes the value in material. Then what is the point of settling it on material? Please observe my requirement actual cost should roll up for next level process.