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cost estimate in material master

Dear Friends,

can anybody explain about the significance of fields 1)with qty strucure and 2)material origin in the cost estimate1 screen.suppose, if we keep either of one tick mark, how system differentiates the costing run for a material in the orders?



Former Member

Dear Krishnamurthy,

<u><b>1.Material-related origin</b></u>

If this indicator is set, the material number will be written to the cost element

itemization in the Controlling module.The main use of this indicator is the costs

incurred will be updated under a primary cost elementwith reference to the

material number.This enables you to analyze material costs in the information

system in more detail.

Generally it's included and will be kept mandatory.

<u><b>2.Material Quantity Structure</b></u>

1.A quantity structure consists of a bill of material (BOM) and a routing.

2.In process manufacturing, a master recipe is used instead of a BOM.

3. In repetitive manufacturing, a rate routing is used instead of a routing.

4.If you always cost your materials (including raw materials) using costing with

quantity structure, you should turn on this indicator. This improves performance,

because the system does not search in vain for existing cost estimates without a

quantity structure for every material when it explodes the BOM. Therefore, only

turn on this indicator if you normally cost the materials using costing without

quantity structure.

Regardless of the setting, you can cost a single material with or without quantity

structure. However, you should bear in mind that this setting is always used in the

costing run and in mixed costing (creating procurement alternatives).

<u><b>3.cost estimate without quantity structure</b></u>

Here we enter the items to be costed (such as materials and activities) into a unit

cost estimate manually.

<u><b>4.cost estimate with quantity structure</b></u>

The quantity structure can be any of the following:

BOM and routing (production by lot size)

BOM and rate routing (repetitive manufacturing)

Master recipe (process manufacturing).

So Generally both the indicators are to be set for a proper Cost Estimate and also

to reduce the system load.



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