Moving average price of subcontracted material not picked for Cost estimation

[Former Member]

Hi Experts

I have the below scenario:

Finshed Product A has components B, C.

C is a subcontacted material and it has its own BOM with components D & E.

We are maintaining moving average price for the subcontracted material C, (because the subcontracter is adding X & Y in addtion to the components D and E, which are sent from us).

In the mateial maste of C, Procurement type is F and Spl. procurement type 30 are maintained.

When i do costing for the Finished product A, moving average price of C is not picked up (where as system calculates the std cost for C by adding the values of D & E and purchase info record price).

Is there any way to Calculate Price of A by using the mvg avg price of C.

I maintained the below valuation variant settings.

If i remove the spl. procurement type 30 in the material master of C, it picks up the mvg. avg price. but it affects the MRP planning of  items D & E.

Please advice.

Thanks in advance.

Regards

Bala

[Former Member]

Hi..

The cost of subcontracted material with spl.procurement type 30 is composed of raw material and processing cost. In case of that, the standard cost of the material is roll up to finished product's standard cost.

Subcontracted material that don't have spl.procurement type 30 is only recognized to raw material.

In case of that, moving average price of subcontract material is pick up according to your material valuation strategy.

[Former Member]

Hi Big choi

Thanks for your response.

I understand.

1. if we maintain spl. procureent key 30, system calculates standard cost based on raw material and service charges.

2. If we don't maintain spl. proc key, it considers the material as purchased and picks the mvg avg price from material.

But, is there any way to pick the moving avg price from material master eventhough i maintained the spl. procurement type 30?

Thanks

Bala

[Former Member]

Hi..

You don't turn on "With Qty Structure" indicator in the costing view1 of material master.

Then, If there is no cost estimate without quantity structure, moving average price will be selected

according to your valuation strategry.