Costing Bom Cencept

[Former Member]

I have a query that In chemical Industries Recovery process Mother Liquor which is byproduct comes from the centrifuge we have reprocessed it and getting recovered solvent and used this recovred solvent in the same process ,by doing this we save our Fresh Solvent Cost we are getting costing benefit of using this in Process Order for this there is one concept of *COSTING BOM* , anybody having idea about this in SAP.

[Former Member]

Visahl

If I understood you correctly, the solution is as below...

1) create the BOm of your FG including the Mother Liquor (as by-product) recovered solvent & Fresh Solvent as your raw material with alternate grouping & appropriate usage probability( e.g 80:20)

Upon confirmation you will be getting by-product mother liquor & consuption will happen of recovered solvent & Fresh Solvent according to the settings done for alternate group.

2) create another BOM for recovered solvent within which mother liquor will be a RM & procee this through order. you will have the stocks of recovered solvent to use in process 1)

This will also take effect of appropriate costing issues you are facing.

Regards

Mahesh

[Former Member]

Thanks Guys ,but still the problem is there.I have wxplained AS-IS details :

I have Finished Product from which i am getting Byprodut and from this byproduct again i have prepared semifinished product which is used in making finished product .Now by using this semifinished product which cost is less because it is made by By -Product ,so i want to take the benefit of this cost difference against process order how can i map this.

vishal

[Former Member]

Dear Vishal,

As i understand, you have to create a BOM of finished product with input material both semi finished & By-product.

As we know that only consumable material price is get update on production material, rest ( By-Product) material get redue from the same.

so you have to maintained the BOM of finished Material with usage 01 (production) & maintained input component with costing relevant with require ratio.

I think may solve your problem, if not revert back.

Parminder

[former_member184655]

Dear Vishal,

costing BOM's are created same using T code CS01,with usage for production.

Costing BOM is generally used to do cost estimation and it's used to take trial's for different

combination,the same can be converted into a Production usage BOM if it's acceptable.

Further those components will be planned through MRP which are relevant to production.

If you have any other specific doubt regarding settings or T codes revert back.

Regards

Mangalraj.S

[Former Member]

hi

The costing BOM describes the product structure and is used to automatically determine the costs of the materials required for a product. Items that are not relevant to costing are not included in the costing BOM.

and while product costing the Finance people will select teh Costing BOM, to know the cost of product.

While creting BOM the usage is selected as Costing.

-ashok

[Former Member]

Hi

costing BOM is used for cost calculation. Normally used to analyse the cost of a new product, but not to take part in production. If u run MRP planned order will not be generated.