3761083 - Valuation Quantity Higher Than Expected in Material Cost Estimates

The Valuation Quantity Higher Than Expected in Material Cost Estimates

1. Navigate to the Planning and Production Master Data work center.
2. Select the Production Models view.
3. Remove all filters and search for the relevant production model ID.
4. Open the Released Execution Model (current released version).
5. Expand the operation's Input product section and identify the relevant component (e.g : component maintained with quantity A ea and input scrap Y%).
6. Navigate to the Inventory Valuation work center.
7. Select the Material Cost Estimates view.
8. Open the latest cost estimate for the material.
9. Expand the relevant cost object and compare the component's valuation quantity ABC (e.g., 4.200 ea) against the parent requirement quantity XYZ (e.g., 2.100 ea).

The displayed quantity is the result of the following system logic:

Quantity rounding is active for the cost type used in the material cost estimate.

For materials with a discrete unit of measure (e.g., A ea), the per‑unit quantity is rounded up to the nearest whole number.

Example: A per‑unit quantity of X.Y ea (representing X ea plus Y% input scrap) is rounded to M ea.

The rounded per‑unit quantity is then multiplied by the parent requirement quantity.

Example: A parent requirement of XYZ multiplied by the rounded per‑unit quantity (example : 2.100* 2 ea results in 4.200 ea.)

To summarize, the final outcome is driven by:

1: Bill of Material (BOM) explosion logic,

2: Input scrap handling, and

3: Quantity rounding rules applied during cost estimation.

This is standard system behavior.

Verify and if required, disable quantity rounding for cost estimates:

1.  Go to Business Configuration work center
2.  Select Overview view
3.  Search Material Cost Estimate and click it
4.  Click Rounding in Material Cost Estimates
5.  Select the relevant cost type (for example, Estimated Cost),
6.  Uncheck Quantity Rounding, and save.
7. Re-run the Material Cost Estimate (ensure Quantity Structure Explosion is selected) so quantities are recalculated without rounding.
8. Review the new estimate and the Material Cost Estimates – Cost Breakdown (Item Type) report to confirm consistent valuation quantities.
9. If rounding is intended, keep the setting enabled and consider the rounded result as expected.

KBA 1865742 - Quantity Value Gets Rounded When Doing Cost Estimation For A Material

KBA 3574040 - Incorrect Valuation Quantity in Material Cost Estimates – Cost Breakdown (Item Type) Report

Material Cost Estimate Run | Help Portal

Production Bills of Material Quick Guide | Help Portal

Material Cost Estimates – Configuration Guide | Help Portal

material cost estimate, valuation quantity, quantity rounding, input scrap, BoM explosion, discrete unit rounding, estimated cost cost type, cost breakdown report, unexpected high quantity, rounding setting, per-unit rounding, production model, inventory valuation, costing, bill of material , KBA , SRD-FIN-COR , Cost & Revenue , How To