Cost of goods sold entry in PGI based on components of the main material.

[Former Member]

Hi friends,

Suppose material A is assembled using components B, C & D, during PGI of material A is it possible to generate an accounting entry at the component level. i.e accounting entry with debit entries of the cost of B,C & D

Please advise.

Regards,

Udaynath.

[ajitsingh6]

Dear,

You can create a Sales BOM, and price it at ITEM level.

If you want to assemble the products and depending upon the assemblies you want to price. For eg. if the customer asks for a certain combinationa of Material A, B and C respectively, then you create a Material Master record Material D with item category group as LUMF. While the Materials A, B and C are created with standared item category groups NORM only.

Then create a sales BOM using Tcode CS01 and enter the following details:

Material : Material D

Plant : Plant in which you created the material.

BOM Usage : 5 (Sales and Distribution)

then give the Materials A, B, and C and give their respective quantities.

Before you have to create pricing condition records for Materials A, B, and C.

Then configure the item categories ( T - code : VOV4).

When processing the sales order, just give the Material D and the system will pick up the corresponding assemblies for that material and populate in the order.

The item category for the header item will be TAP and the item cateory for the items will be TAN.

In this cas the Material D is called as the higher level Item , and all the assemblies are called as the sub items. Here the subitems are relevant for pricing and delivery where as the header item is not relevant for neither pricing nor delivery. It just acts as a text item.

Regards

AJIT K SINGH

[former_member1190345]

Hi Uday,

As you must be aware BOM for an item can be created 2 ways

a. In the first case the pricing and the billing will be done for the main item while the sub items are not relevant for pricing

b. In the second case you can carry out the pricing based on the sub items while the main item will become not relevant for pricing

In your case you can use the scenario b where in the pricing is done as per the sub items. The settings that you need to do for this are:

Item Category and Schedule line category determination for BOMu2019s:

For the main Item:

Sales Document Type OR + Item category Group LUMF = Item category TAP

For the Sub Item:

Sales Document Type OR + Item category Group LUMF + Higher level Item category TAP = Item category TAN

Once these settings are maintained system will automatically create the accounting document for the sub items.

Hope this helps.....

J Nagesh