Note
The assumption in this use case is that the same vendor is charging you for freight and that you know what the freight amount is.
Purchasing info records are used to record purchasing information about materials and vendors (either manually or automatically).
The following data can be accessed for material costing purposes:
Prices from the info record
Prices from the last purchase order entered in the info record
Conditions from the info record
Conditions from the last purchase order entered in the info record
You can distinguish between the following prices:
Net price = gross price - discount + purchasing overhead
Effective price = net price - cash discount + delivery costs
Costing Variant
In the main planning strategy, you specify that information from purchasing info records must be accessed.
You can use a maximum of three options in the strategy for purchasing info records to specify how the system should search for a price.
Prices in the Purchasing Info Record
You can find quotation prices or quotation conditions directly in the purchasing info record.
Purchase order prices or conditions are derived from the purchase order assigned to the info record.
Differences Between Procurement Costs
In Customizing for the costing variant, you can assign a separate overhead costing sheet for the raw material cost estimate.
The conditions in the purchasing info record contain procurement information that you can use in material costing.
Different Procurements
The following procurements can be used:
In the itemization for raw materials and purchased parts.
In specific cost components of the cost component structure.
Note
You cannot use the overhead costing sheet with the purchasing process. Therefore, you must include the overhead costs in the non-stock-related cost components. Similarly, when you post goods receipts and invoices (actuals) as in planned data, systematic price differences, and postings occur for procurement because this overhead cannot be allocated.
Conditions in Material Costing
The two levels of assignment are as follows:
- Assigning condition type to origin group
- Assigning origin group to cost component
Two-level assignment enables you to differentiate only between the itemization. The system creates an itemization row under the same cost element for each assigned origin group. When you assign the cost component structure, you can transfer these origin groups to the separate cost components.
Vendor Determination
There can be more than one vendor for a subcontracted assembly, a raw material, or a purchased material.
In costing, a strategy sequence is used to choose a vendor or a purchasing info record.
The following selection criteria are available:
- Quota arrangement for material
- Source list for material
- Purchasing info records
- Prices of vendors
Vendor Determination Process
The system first searches for a quota arrangement. If a quota arrangement exists, the system determines whether the permitted vendors exist. If the vendors exist, the vendor with the highest planned quota is selected.
If a quota arrangement or permitted vendor cannot be found, the system searches for a source list for the material. If a source list exists, the vendor indicated as the fixed supply source is used. If no vendor is indicated as a fixed supply source, the system checks in Customizing to determine whether a regular vendor is defined at plant level.
If a regular vendor has been defined at plant level, the system searches for the vendors in the source list. If there is no regular vendor, the cheapest vendor in the source list is used.
Data for the regular vendor is maintained in the purchasing info record.
If the search in the source list also produces no results, the system checks whether a regular vendor is defined at plant level in Customizing. If a regular vendor is defined, the system searches for a regular vendor in the list of existing vendors. If there is no regular vendor, the system uses the cheapest vendor to determine a price.
After the vendor has been determined, the system uses the valuation variant to select a price from the purchasing info record.
Note
Using a condition for freight in an estimate is viable when there is accurate data on what actual freight costs are. Sometimes, freight is paid to a different vendor than who supplies the material. This leads to a lack of transparency.
