Creating a Multilevel Cost Estimates

The prerequisite for creating a multilevel material cost estimate without quantity structure is a material master with costing view.

To create a multilevel material cost estimate, choose a costing variant.

When a costing variant is selected, the valuation strategy for costing items is established. For material costing, the costing variant is maintained in customizing. You have to enter the costing lot size to use it as a base.

A cost estimate header is created automatically.

When you insert (through drag and drop) an existing cost estimate from the worklist, you specify if you want to insert the original cost estimate or make a copy. If you choose to copy, any subsequent changes to the copied structure do not affect the original cost estimate.

Enter the missing quantity in the List screen of the unit cost estimate.

If you are going to edit anything from the copied cost estimate, you re-evaluate the whole structure as any change makes it mandatory to create a new cost estimate.

After saving, the system updates the cost estimate in the database.

You can display and save the costing results as an itemization. The itemization list can include the cost element assigned to each item.

The itemization provides detailed data about the resources required to produce a product.

The following data is stored for a material:

• Material and text
• Plant
• Quantity used
• Price of material

The following data is stored for an internal activity:

• Cost center and text
• Quantity used
• Activity type
• Price

The costed multilevel BOM report provides a hierarchical overview of the value added for each assembly item.

The display of costs for each component (assemblies and input materials) in the costed multilevel BOM is based on the structure and content of the BOM for the costed material.

You can also display other items such as manufacturing activities and overhead costs.

The cost component split groups cost elements in cost components. When a multilevel structure is costed, the system rolls up the cost component split so that the original identity of the costs from the lower levels is retained for analysis.

For each product, the cost component split provides information about the value of the produced material (upper level) and the costs of subordinate materials in the BOM (lower level).

The cost component split is available for material cost estimates with and without quantity structure.

The following functions help you to use the costing structure for enhanced efficiency:

• Copy:

  Select a cost estimate, or part of one, and drag it to the Costing structure icon. The system prompts you to specify the costing variant and costing version with which it produces the cost estimate. The system transfers the resources to the new cost estimate and displays the new cost estimate in the structure.

• Insertion:

  Select a cost estimate, or part of one, and drag it to the required position. The system asks you if you want to insert the cost estimate as an original or a copy. If you choose copy, the cost estimate will automatically assume the costing variant and costing version that is used in the costing structure you are modifying. If you choose original, the cost estimate retains its current costing variant and costing version. Any changes you make can affect other areas where this cost estimate is in use.

  When you insert a cost estimate, you need to enter the quantity of the material on the unit cost estimate list screen.

• Deletion:

  The Deletion function deletes an object from the costing structure only. The Deletion function does not delete the cost estimates from the database.

The costing structure has indicators for Changed and Error statuses.

The Changed status enables the cost planner to see if changes in substructures affect the higher level materials of the cost estimate after revaluation. A costing structure is consistent when all status indicators are green.

In the figure, changes have been made to the lowest level. A yellow status in the changes column indicates that changes have been made. At this stage, you are yet to revaluate the higher-level structures. After you make changes to lower-level items, the system automatically sets the red status in the higher-level items to indicate that the system has not incorporated the results of the changes made.

Revaluation can be performed for the entire structure and substructures. A net change is also available, which permits only those higher-level structures that are directly affected by the changes to be revaluated.

After you perform the revaluation, the Changed indicator is set to green for all levels.

The Error status indicates whether there were errors detected during revaluation. If the Error status is red then there is some problem in the costing item that needs to be investigated.

The figure shows the flexibility in the layout of the multilevel unit costing screen. The default screen has the basic layout, which displays only the costing structure.

You can adapt the layout to your requirements at any time during the work session. For example, when you are making changes to the costing structure you might want to display the worklist. When you have completed setting up the structure you might switch off the worklist and enable the detail list.

You can use the List screen filter to reduce the number of items displayed.

To set a filter, perform the following steps:

1. Select one or more columns on the list screen.

2. Choose the filter icon.

3. Enter the filter requirements.

Only the items fulfilling the requirements are displayed on the screen. If you want to see all items again, choose Delete filter.

When a global filter has been set, it remains until it is deleted, even if you navigate to another cost estimate in the costing structure.

The design of the worklist is such that frequently used structures and resources are available to the cost planner. You can drag and drop substructures and individual costing items from the worklist to the cost estimate in the costing structure.

Double-click a resource in the worklist to branch to other data, such as the master data.

The system displays the cost estimates that you select in the worklist as multi-level BOMs. You can display a multi-level BOM by double-clicking it.

The contents of worklists are organized in folders. You can create private and global folders in the worklist. Each folder is made up of containers. You can specify whether a container is allowed to have a specific item category only, such as base planning objects, or whether the container can contain multiple item categories. If the container becomes too large, you can either create a new one or convert it to a folder.