3399680 - How System Selects Cost During Material Cost Estimate if Purchase List Price is Used as Valuation Method for Materials.

During material cost estimate of a product, one of its input product uses purchase list prices as valuation method. However, now there are multiple list prices for this product with same company but different suppliers. Which price will system select for material cost estimate?

SAP Business ByDesign

1. Go to work center Inventory Valuation.
2. Access view Material Cost Estimates.
3. Click New - Cost Estimate, maintain mandatory fields and click Estimate.
4. Return to view Material Cost Estimates, select corresponding line item, click View.
5. In the section Material Items, material ABC has Valuation Method as Purchase List Prices.
6. Go to work center Product Portfolio.
7. Access view List Prices.
8. Search material ABC, there are multiple list prices for same company but different suppliers.

You want to know the logic how system selects the price from them for Material Cost Estimate as cost.

• If all these list prices have no scales maintained, system will always select the lowest price from them as cost in Material Cost Estimate.

• Example: List Price 1 with price 1 CNY, List Price 2 with price 5 CNY,  List Price 3 with price 10 CNY. System will select 1 CNY as cost in Material Cost Estimate.

• If some list prices have scales maintained, then during Material Cost Estimate, system will check the prices in corresponding scales according to the valuation quantity set of material ABC in Material Cost Estimate, and also other prices without scales, finally select the lowest price as the cost.

• Example: List Price 1 has scale as from 0 price is 10 CNY, from 5 price is 8 CNY, from 10 price is 5 CNY. List Price 2 has no scale but only price 7 CNY; List Price 3 has scale as from 0 price is 20 CNY, from 6 price is 5 CNY. In Material Cost Estimate, material ABC has valuation quantity as 8, then system will firstly find price 8 CNY in List Price 1, 7 CNY in List Price 2 and 5 CNY in List Price 3, finally select 5 CNY as cost.

Above logic applies to ByD system with version 2311 or versions after that.

Help Document "Material Cost Estimates"

List Price, Material Cost Estimate, Scales , KBA , AP-SOU , Sourcing , Problem