2414369 - Cost Estimate Price Component Not Available For Material In Sales Order

You want to use the Cost Estimate price component in profit analysis reports for materials, such as the Profit Detail by Contribution Margin Scheme report. You have maintained the respective settings in scoping to calculate profit margins for sales order items. In Fine Tuning the Cost Estimate price component has been included in the Profit Margin.

You expect that the Estimated Costs maintained for material in its valuation master data are to be derived as the Cost Estimate amount for your sales order item. However, in the Sales Order Pricing tab the Cost Estimate price component is not available.

SAP Business ByDesign

Pre-Requisites:

A) Scoping settings:

1. In scoping under step 4 - Questions, find the General Business Data element.  
2. Open Product and Service Pricing and then select the Sales Price Specification element.
3. Ensure that the question: Do you calculate profit margins for service or sales orders and make them visible to your sales employees? has been added to the solution (selection box is marked).

B) Fine Tuning settings:

1. In the Activity List of your implementation project navigate to the Fine Tune phase.
2. Open the Configure Price Strategy activity (if your system is already live, you can access/edit this activity from the Overview view via the Change Immediately button).
3. Click the Configure Pricing Procedure link.
4. The Cost Estimate price component is listed for the used Pricing Procedure.

 Sales Order settings:

1. In the sales order you maintained material in the Items tab.
2. For this material an Estimated Cost has been maintained in the material's valuation master data.
3. Navigate to the Pricing (and Invoicing) tab of the sales order.
4. In the Item Pricing table you are checking all the price components available for your material item.
5. You notice the Cost price component.
6. However, the Cost Estimate price component is missing and not available to be added neither.

The Cost Estimate price component is only relevant for project based sales order items.

In sales orders the Cost Estimate price component is available for items of type:

• Service - time and material (Project),
• Service - fixed price (project),
• Product - project-based,
• Expense - time and material (project),
• Expense - fixed price (project).

The Cost Estimate price component derives its values only from the manually maintained amounts entered for the respective sales order item in the sales order Pricing tab. The values are never derived from the Estimated Cost value entered in a material's Valuation master data. It is used for the profit analysis of Customer Projects with Sales Integration.

This price component is also relevant in the Revenue Recognition functionality, for the calculation of the Percentage of Completion (POC) of a sales order items (only fixed price items) with the accrual method Recognize Using Cost-to-Cost POC or Recognize Using Cost-to-Cost Project POC.

For all other sales order item types the Cost price component is used to calculate the planned costs of a sales process. In this case the amount is derived as an average cost value of all business residences, maintained in a materials valuation master data.

In order to display and use the Cost Estimate price component for a sales order item select a project-based item type.

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