Valuing Inventories using mixed costing

Valuing Inventories in SAP using Mixed Costing

Overview Mixed Costing allows customers to cost materials as a mix of multiple procurement sources. As a simple example, Mix Product cost of a procured material could be the weighted average of purchase price from multiple vendors (i.e. vendors is “procurement alternative” for Mixed Costing). SAP allows you to define the weightage for each procurement alternative. This Product cost using…

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Valuing Inventories using Purchasing documents

Valuing Inventories in SAP using Purchasing documents

Inventories can be costed in SAP automatically using existing Purchasing documents in the system. Purchasing documents could be Source Lists, Purchase Info Records, Purchase Orders, Contracts. If the Product Costing variant is configured to pick Purchasing documents, it will search for Purchasing documents in a specific order and use the value on that document as the source to value the product.

SAP Product Costing - a Primer

SAP Product Costing – a primer

Product Costing in SAP is a mature process that has been implemented and being used by several of SAP customers. The significant limitation with Product Costing was that it was biased significantly towards Standard Cost. Over years, Product Costing spawned a new feature in SAP to handle this limitation – Material Ledger. Product Costing along with Material Ledger allow customers…

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