DO NOT cost indicator In Matrial master

[Former Member]

Dear all,

Can any one tell me the importance of Do not cost indicator, Initially system is not considering  the DO NOT COST functionality,( i.e values are updated in the standard costing even when i select the Do not cost check box) When i run the standard costing,

Please suggest.

Thanks

kishore

[Former Member]

Hi,

If you activate Do not cost check box, For the  material then you can do the material cost estimate/ sales order cost estimate for that material. Generally we will activate this flag fot the Rawmaterials, so that system will exclude all the rawmaterils from selection at the time of Std cost estimateion. It will save your system performance as well.

Regards,

RAM

[Former Member]

Hi,

Initially system will take the values of RM(Activated DO NOT COST) in standardcosting but later on if you run the standard costing system will not take the updated values .

my question is what is the reason behind this process.

Thanks

kishore

[former_member198686]

Hi Kishore,

Normally we run CK11N and CK40N is for SFG or FG  material only on that FG MAT( Material) we assign several RAW mat for that raw mat  we assign as components. for that materials you are planning some cost for estimate or not based on that "Do not cost" and "with QTY structure" will be use full.

The Do Not Cost indicator denotes whether the material is to be costed while cost run i.e. while executing ck40n. If the indicator is set, the material is excluded from selection and no BOM and Routing of the same will be exploded. It means you cannot create material cost estimate (with or without quantity structure).

Price Indicator controls the movement of the material and its valuation.

If the Price Indicator is S and the Do not Cost indicator is active, the standard price of the material will never get updated.

Please check below links for your under standing.

MARC-NCOST - Do not Cost Field | SCN

Regards,

KRK

[Former Member]

Hi Kishore,

Adding to Ram, If you select the DO NOT COST indicator, you cannot create the material cost estimate,sales order cost estimates and procurement alternatives.

Material is excluded from selection and BOM explosion.So that no cost component split will be created by the costing process.Generally we will activate this flag fot the Rawmaterials.If the material is included in another cost estimate as a component to be valuated, the valuation price is determined through the valuation variant.

I hope your problem will resolve, Please let me know if any queries.

Regards,

Puri

[Former Member]

Hi,Puri

Ok , Please tell me with the following example

My FG is having 2 components (RMs) in costs 100 and 200 respectively

for example i have activate donotcost indicator for second material (200) will the system consider 200 in the standard cost estimate for the FG?

1. FG cost 300

(or)

2.FG cost 100

Which amount system will show for standard costing for the FG?

Thanks

kishore

[Former Member]

Hi kishore,

Good question.. If you active "DO NOT COST" indicator for second material, System will not consider(200 rs) for costing.System will consider only for first material (100).

Regards,

Puri

[Former Member]

Hi Kishore,

Your Fg cost is 300... If you activate the do not cost does not mean not consider the cost of RM in the FG.

It will just ignore that material from Costing.

Regards,

Ram

[Former Member]

HI Ramakrishna,

It will just ignore that material from Costing.

Please explain me the above line.

Thanks

kishore

[Former Member]

Hi Kishore

Actually if we tick the Do Not Cost indicator for the raw material then it will not allow the cost run for the raw material but if that raw material is in the BOM of any FG or SFG, the cost run can be done for FG & SFG, 

as your question

My FG is having 2 components (RMs) in costs 100 and 200 respectively

for example i have activate donotcost indicator for second material (200) will the system consider 200 in the standard cost estimate for the FG?

the FG cost will be 300

but if that raw material again have BOM components then the costing will not be done of that raw material

Thanks & Regards.

Zubair.