SAP Knowledge Base Article - Public

3350669 - Material Cost Estimate Result Is Different Than Expected


You have maintained an Inventory Cost amount (for example, 1.00 USD) in Material ID ABC master data valid for a specific period. However, when you execute a Material Cost Estimate containing Material ABC, the resulting cost estimate amount is different than you expected. (ABC stands for the Material ID).


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Reproducing the Issue

  1. Go to Inventory Valuation work center.
  2. Open Material Cost Estimates view.
  3. Search for Material Cost Estimate DEF. (DEF stands for the Material Cost Estimate ID).
  4. Click on the row of the Material Cost Estimate DEF and click on view.
  5. In Costed Object ABC, you notice the Cost Estimate amount is different than expected (for example, 2.00 USD).
  6. In Input section below, click on Material ABC.
  7. In Valuation tab, you will notice that Inventory Cost maintained for the specific period is 1.00 USD.


For material ABC, the purchase list price has been maintained for the validity from period A to period B. Cost estimate has been run on a date between these periods. That is the reason cost estimate is picking the value different to the one maintained in Inventory Cost.

Since there are multiple possible sources of costs and prices for the individual items in a cost estimate, the system applies a valuation strategy during costing that defines the priority in which the costs or prices are selected. There is a valuation strategy for materials and another strategy for resources and services.
The selected cost or price is identified in the cost estimate as the Valuation Method.
Priority taken:
1. Planned cost from material's master data 
2. Price from fixed source of supply
3. Price from contract
4. Price from price list
5. Inventory cost from material's master data


If there is no Purchase Price List maintained for Material ABC, then Cost Estimate will apply the Inventory Cost maintained in the Material master data.
To do so, remove the Purchase Price List maintained for the Material ABC.

1. Go to Product Portfolio work center.
2. Open List Prices view.
3. Search for ABC.
4. Select the relevant list price and click on Release > Cancel release. 

After that, when executing a Cost Estimate for Material ABC, if it have a valid Inventory Cost maintained for the correspondent period, it will be applied.

See Also

3281592 - How the System Selects Purchase List Price When Running Material Cost Estimate

Material Cost Estimate Runs


Cost Estimate, Material, Purchase Price List , KBA , SRD-FIN-INV , Inventory , How To


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