I recently used an interesting piece of configuration in the valuation variant to value externally and intercompany purchased materials. My client has unique challenges because they are vertically integrated. They produce almost every raw material that goes in to their finished goods including packaging and the machinery to produce finished goods. The amount of intercompany purchases is massive and we needed a sustainable way to value purchased items and reference the purchasing conditions for intercompany markups and other charges like freight and shipping labor. This configuration is a multi-step process, but it’s fairly simple when you have all the pieces configured correctly.
1. First, in configuration transaction OKKN, I configured the Costing Variant. I created a custom Costing Variant for the standard cost estimate instead of using the standard PP01. The Costing Variant is the main source configuration for how materials are costed in SAP. The yellow buttons represent configuration inside the Costing Variant.
2. Inside the Costing Variant configuration is configuration for the Valuation Variant. The Valuation Variant contains parameters for valuation of a cost estimate. In a valuation variant, you can specify the strategy sequence for how costs are selected. For produced materials, the component’s standard cost, moving average price, purchase info record price, or planned prices may be selected. You can also choose a particular plan/actual version and average the plan activity rates for the year or take the current activity rates. You can navigate to the Valuation Variant using transaction OKK4.
The solution to this requirement was to assign strategy 1 as ‘L Price from Purchasing Info Record’, sub-strategy ‘A Quotation Price via Condition Table’, and to assign purchasing conditions to cost components. This strategy applies to costing component materials on a Bill of Material (BOM) for a finished good, as well costing any materials that do not have a BOM. This means that to value a material, SAP will first look for a Purchasing Info Record for the item or its BOM components. SAP will take the price in the PIR and add any purchasing conditions that have been mapped to the Valuation Variant. If a PIR is not found, SAP will go on to strategy 2 which is ‘7 Valuation Price According to Price Control in Material Master’. This means if a material is price control S, SAP will pick up the standard price. If price control V, SAP will pick up the moving average price.
3. If you click on the yellow button that says Delivery Costs in OKK4 Valuation Variant configuration, you see a table that allows you to assign purchasing conditions to a valuation variant. You can navigate there with transaction OKYO. I worked closely with a purchasing team member to determine which purchasing conditions were relevant for costing and mapped those in this table.
4. I also created several Origin Groups in transaction OPKS to help further separate costs in a cost estimate. For example, I needed to be able to split out the intercompany markup condition ‘ZMKP’ in a cost estimate. I used Origin Group ‘MRKP’ to separate this condition from the other conditions.
5. I had to map these Origin Groups to cost components in the Cost Component Structure transaction OKTZ.
6. Finally, I had to work with my purchasing team members to ensure Purchase Info Records and purchasing conditions were created for all externally and intercompany purchased items.
You can display PIRs in transaction ME13:
The price for costing is picked up from the Net Price field if a PIR exists for the material I am costing in that plant.
You can display purchasing conditions in transaction MEK3:
Conditions can be maintained using a few different combinations based on what is configured in the access sequence. Here is an example I created as a demonstration:
Here is the final result when a cost a finished good that contains several purchased items:
In transaction CK11N create cost estimate with quantity structure, you can see the components of the finished good on the left. I clicked on one of the purchased components and clicked on the Valuation tab to show that the material’s cost is coming from the Purchase Info Record.
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Thanks for your contribution Tanya.
We also implemented this configuration with a different requirement.
Origin group affected to pricing condition help to map different Cost Component Element.
Our problem is the following: this configuration is suitable for purchased product but cannot be implemented for subcontracted product as you cannot use strategie L.