Costing Factors for Vendor purchased material

[becca656]

We have a business requirement in our purchasing arena to support product costing in the efforts to develop cost estimates for finished goods.

The scenario is that our purchase prices are the actual supplier price for the raw material or component. The standard price for the raw material component is a combined sum of purchase price, a factor for freight and a second factor for sequencing. These factors are not part of the purchasing price, nor are they a part of the invoice price paid to the supplier. These are strictly internal factors used as overhead for price standards for externally procured materials.

Costing is asking purchasing to maintain these factors in the purchasing info record or in the value contract for purchase of the material. We maintain that the inclusion of these factors will unduly corrupt our purchase prices, as well as add considerable effort to maintain data we will not use and are looking for suggestions on how to properly maintain this information in SAP, so that costing can use it in their costing estimates.

[runman]

We have a business requirement in our purchasing arena to support product costing in the efforts to develop cost estimates for finished goods.

The scenario is that our purchase prices are the actual supplier price for the raw material or component. The standard price for the raw material component is a combined sum of purchase price, a factor for freight and a second factor for sequencing. These factors are not part of the purchasing price, nor are they a part of the invoice price paid to the supplier. These are strictly internal factors used as overhead for price standards for externally procured materials.

Costing is asking purchasing to maintain these factors in the purchasing info record or in the value contract for purchase of the material. We maintain that the inclusion of these factors will unduly corrupt our purchase prices, as well as add considerable effort to maintain data we will not use and are looking for suggestions on how to properly maintain this information in SAP, so that costing can use it in their costing estimates.

This is standard SAP solution. You need to maintain PIR with additional condition types for accrued values for freight (like FRA1), duty, purchasing O/H and whatever else your acountants want. They will not be included in purchasing price, but will be included in a standard price of material that is debited to Inventory account from GR document.

It also works for purchasign contracts and scheduling agreements.

I am not sure what is your current process to update PIR for materials, if you have some process 9probably customised program) - you will need to change it to include additional condition types.

[becca656]

Perfect - thanks!