Controlling Product Costs by Sales Order

Objectives

After completing this lesson, you will be able to:
  • Determine the requirements class
  • Determine the account assignment category
  • Determine the valuation of individual stock

Requirements Class

The image depicts a flow chart for Material Requirements Planning (MRP). It starts with an MRP Group, followed by a Strategy Group, Planning Strategy, Requirements Type, and Requirements Class. A note mentions customizing for common business processes like Make to Stock Production, Sales Order, and Project Make to Order.

The scenario for sales order production is mapped mainly by means of the requirements class. The system can derive the requirements type in two ways on the basis of the Check control of requirements type Determination table.

Requirements Type Data

The system derives the requirements type data from the material master data in the following ways:

  • It attempts to find the requirements type using the strategy group in the material master, with the requirements class determination method.

  • It determines the requirements type using the MRP group, if the strategy group has not been maintained.

  • It uses the material type to access the relevant control tables if the MRP group has not been defined.

Requirements Class Determination

The image shows a hierarchical diagram depicting the structure and relationships between various elements involved in material requirements planning and sales and distribution processes.

The system can derive the requirements type from a combination of data, namely the material master record and the sales document.

Types

The various derived requirements types are as follows:

  • The system attempts to derive the requirements type from the Material Requirements Planning (MRP) type using the material master record and the item category in the sales document. If the system finds no requirements type here, it attempts to find a requirements type with the item category and the MRP area type.
  • If this is not possible, the system searches for a requirements type with the item category only.

If this last attempt fails, the system declares the transaction as irrelevant for the availability check or transfer of requirements.

Customizing – Requirements Class (1)

The image shows a diagram titled Requirements Class with various elements related to costing, account assignment, sales order stock, and product cost by sales order. The diagram depicts different options and configurations for these elements, using checkboxes and a matrix structure.

To be able to collect costs on a sales order item, you must select a requirements class that specifies an appropriate account assignment category. Collecting costs and revenues for sales order items is recommended in complex MTO production. In the standard system, the corresponding account assignment category is E.

Account Assignment Category

The image shows an Account Assignment Category E table with detailed information about account assignment options like consumption posting, account modification, and special stock.

In the standard system, the account assignment category E determines that you want to work with controlling by sales order and separate sales order stock.

If you are working with valuated sales order stock and do not want to use the sales order item (item in an inquiry, quotation, or sales order) leave the Consumption posting field in the account assignment category blank. This is recommended for mass production based on the sales orders. In the standard system, the corresponding account assignment category is M (MTO production without controlling by sales order).

In certain cases, you may want to assign materials from Make-To-Stock (MTS) production to a sales order item that carries costs and revenues. This is recommended for spare parts for the MTO product from sales order stock. In this case, for example, enter E in the Consumption posting field (settlement through sales order). In the standard system, the corresponding account assignment category is B.

Valuation of Individual Stock

The image shows a screenshot from a software application's Requirements Class section. It displays various fields related to costing, account assignment, assembly/requirements, and automatic planning.

The valuation indicator determines how the respective sales order stock is valuated. The valuation procedure for dependent requirements of the individual requirements products is determined by the independent requirements.

Segments of Sales Order Stock

The image depicts a flow chart illustrating the process of pricing and costing in a sales order stock segment. It starts with the price already existing, followed by various steps such as customer exit, sales order cost estimate, production order planned costs, and standard price (standard cost estimate).

The valuation in special stock uses a predefined strategy sequence, which the system carries out at the time of the first goods receipt in the special stock, and generates results that cannot be changed.

Functions

The functions of pricing in sales order stock segments are as follows:

  • The system calculates the valuation price based on customer exit COPCP002. If this is not activated by the user, the system generates a valuation price using the marked sales order cost estimate. This sales order cost estimate can be based on a unit cost estimate, a product cost estimate, or both.
  • The system determines the valuation price using the production order cost estimate or the planned costs for the Work Breakdown Structure (WBS) element. If there are multiple production orders for the same sales order item, the system uses the standard price.
  • The system uses the standard price from the material master record for the valuation if no price has been found. This standard price in the material master record may have been calculated in different ways, such as in a standard cost estimate.

Customizing – Requirements Class (3)

The image depicts the configuration options for the Requirement Class in an enterprise software system. It shows various settings related to costing, account assignment, assembly and requirements, and a note indicating that special stock is valuated by a standard cost estimate.

You can set the Without val. strategy indicator if you want to valuate the valuated sales order stock only at the standard price of the non-allocated warehouse stock.

Summary

  • Requirements class maps sales order production scenarios.
  • Strategy group, MRP group, and material type can influence requirements type determination.
  • The requirements type can also be determined from material master data and sales documents.
  • Account assignment category E is used for controlling by sales order and a separate sales order stock.
  • The valuation indicator determines how the sales order stock is valuated.

Learning

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