Cost Management Using the Sales Order

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  1. Basics: configuration and objects
    • Account assignment 
  2. Business processes
    • Costs in Third-Party Business Transaction
    • Costs in Individual Purchase Orders
    • Make-to-Order Production
      • Assembly Processing Using a Production Order
      • Make-to-Order Production: Cost Management Using the Sales Order
      • Make-to-Order Production: Cost Management Using the Project System
    • Resource-Related Billing

Basics: configuration and objects

547570 - FAQ: VPRS (cost) in pricing

(1)
In the order, the cost is generally taken from the valuation segment of the material master.
In the billing document, however, it can have other sources. Depending on the business transaction, the costs can be taken from the goods issue of the invoiced delivery or, in the case of third-party order processing or individual purchase order, the relevant purchase order, the goods receipt, or the invoice verification in purchasing.

Still, the information also applies to costs from purchase orders, goods receipts, and invoice verification runs. For details, refer to the SAP Notes 372760 and 547590. These costs are passed to pricing externally and included in the value of the condition VPRS.
You then obtain the amount by through the recalculation Amount = Value / Quantity.

(2) 
To ensure that the true costs of the business transaction are included in the condition VPRS, the condition must have category 'G' – Cost. Only then are the costs taken from the goods issue if needed (or from the invoice verification, goods receipt, or purchase order). 
If the setting is 'S' or 'T', the value is taken exclusively from the valuation segment of the material master.The condition category should not have an access sequence and should be flagged as statistical in the pricing procedure for pricing. In addition, we recommend that you define the condition 004 and the subtotal field 'B' in the pricing procedure for pricing.

(3) 
Conditions with category 'G' are subject to special logic during billing. Their value is always determined from the value of the goods issue (if available).
This behavior is independent of whether the condition was merely copied or was determined in the billing document. If you actually want to copy the cost from the order, refer to SAP Note 24832

(4)
Go to the detailed display of the condition VPRS.
If the condition control (KSTEU) is set to 'H' here, the cost is taken from the goods issue.
If an 'A' appears here, it was calculated from the valuation segment from the material master; if it is 'D' or 'E', it was copied from the preceding document.

(5)
If the cost is taken from the goods issue in the billing document, the amount is derived from the value (which is always in the document currency): Amount = Value / Quantity.
As a result, the amount is always in the document currency as well. No currency translation is performed. This is the standard system behavior and cannot be changed.

(6)
In general we do not recommend using more than one condition of type 'G' for each item. This is because only the first condition of the type 'G' for each item contains the goods issue value as the condition value. For further conditions, however, the special logic of the condition category 'G' is lost.

(7) Why is the condition VPRS in an item is not zero, this item if the related goods issue had the value zero?

For technical reasons, it is not possible to determine whether a goods issue with the value zero no goods issue at all within pricing. As a result, the system determines the costs from the valuation segment of the material master in both cases. For more information, see SAP Note 84229.

(8)
We do not recommend using the condition VPRS as the basis of other conditions, because otherwise the following problems may occur.

(9) During the processing of billing plans, the system always sets the full cost. What should I do?

Check the pricing type in the copy control between the order/contract and billing document. This pricing type must NOT recalculate the costs, because otherwise the full cost would be recalculated in every invoice.
Note 24832 describes which pricing type recalculates which conditions.

(10) Why does the system not change the condition VPRS when pricing is carried out again in the billing document?

In general, the transfer price is taken from the goods issue in the billing document. However, the information about the goods issue is only available when the document is created.
Therefore, during a repeated price determination, the real costs would be irrevocably lost if the condition VPRS were recalculated.
The same applies to costs from costing EK01, EK02 (condition category 'Q'), which is why it is not recalculated in the billing document either.

Account assignment 

CO account assignment objects are used to collect the costs and revenues of a sales order and update them in CO. The system assigns the costs and revenues to different CO account assignment objects.

In order to assign from SD into CO, there are many options. It is always to be distinguished between main and auxiliary account assignments. 
  • Main account assignments are real assignments.  In one item, only one real assignment may be present. 
  • Auxiliary account assignments (max. 3 per order item) serve to collect the costs and revenues even in other divisions, parallel to the main account assignment, in order to be able to make separate analyses.  
The most important rules for the account assignment logic
  • A document line item is relevant to cost accounting if the G/L account has been created as a cost element (KA03).
  • A document line item must contain exactly one actual account assignment object.
  • A document line item must not contain the same account assignment object both as an actual and statistical object.
  • In addition to the actual object, up to three statistical account assignment objects are allowed in a document line item.
  • Planned costs and revenues are updated when the sales order is saved.
  • Actual costs and revenues are updated when the billing document is released to accounting.
An account assignment object can be put into the document line item by the application which creates the document, or by the CO interface:
  • Substitution rule
  • Automatic account assignment
  • Default account assignment from the cost element master
The SD-CO interface uses the communication structure COBL.

Real assignments

  • Sales order item: If the sales order item itself forms a CO-object, the costs and revenues are carried to the item itself, and *VBAP-OBJNR contains the number of the CO-object. The precondition for forming a CO-object on the item is VBAP-KZVBR = 'E' If the items are assigned on itself, VBAP-VBELV = VBAP-VBELN and VBAP-POSNV = VBAP-POSNR.
  • WBS-Element: A sales order item can also have a WBS-element as an account assignment object. For this there are two possibilities: 
    • If VBAP-KZVBR = 'P', then the assignment to a WBS-element must be one, 
    • if KZVBR = ' ' , then a WBS-element can be entered manually, however, it is not a must. The updating of the incoming sales orders takes place in this case not through the SD, but through the PS.
  • Profitability segment: When a profitability segment is formed, the number of this object is written in the field VBAP-PAOBJNR. The profitability segment is a hybrid between the main account assignment and auxiliary account assignment. Though only one main account assignment is possible per order item, a profitability segment is needed in order to update the incoming order. Thus one-second main account assignment would exist. Therefore a trick is applied: When the main account assignment exists, and nevertheless a profitability segment must be formed, then in the account assignment view, the profitability segment is hidden (not displayed).
  • Cost center: The account assignment to a cost center is possible only at the header level. Cost centers can not accept any revenues. Intention: Cost centers should be assigned if cost-free supplies are present. Therefore the field is open only when the sales document category is *VBAK-VBTYP = 'I' (cost-free order). If the item has no separate account assignment, the cost center from the header is used. The suggestion of the cost center is made in customizing through the order reason and the sales area for all sales document categories. Revenues from invoices go statistically to the cost center (cost centers can carry statistical revenues) and actually into the profit calculation (PAOBJNR is determined in the invoice).
  • Order number:*Up to and inclusive of 4.0B, it was only possible to assign an account to one service order from the *VA90 In this case, the number of the service order was written in the field VBAP-AUFNR. From 4.5* it is possible to manually record even internal orders, to which account assignment should be done. Statistical orders are likewise supported. The incoming sales orders are updated in SD.

Statical account assignments

  • Profit-Center: A Profit-center is always booked statistically. The determination of the Profit-center is done according to the following priority:
    1. The Profit center is suggested from the real account assignment (WBS, AUFNR, Costcenter).
    2. The Profit-center can be manually input.
    3. In the sales order, depending on the sales order attributes, a substitution can be made.
    4. The Profit-center is suggested from the factory view of the material master.
    5.  If no Profit-center is determined, though the Profit-center accounting is active, automatically a Dummy-Profit-Center is determined, which records these wrong entries.
  • Statistical internal orders: If it deals with a statistical internal order, this cannot carry any planned revenue.

Is the account assignment consistent?

This question can be asked within R/3 with the function module SD_DOCUMENT_ACCOUNT_ASSIGNMENT.

Business processes 

Make-to-Order Production

Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the MRP group and the strategy group in the material master record.

Assembly Processing Using a Production Order

The manufacturing costs are calculated in the production order and are passed to the sales order. The costs are recorded in the condition type EK02 and are displayed on the pricing screen.

Make-to-Order Production: Cost Management Using the Sales Order

The costs are allocated to profitability analysis using a particular settlement rule which the system automatically proposes. You can change the proposal manually.

If you want to settle costs to a general ledger account rather than to a profitability segment, you can change the settlement rule manually and enter the relevant general ledger account number in the account assignment screen for the item.
  • If the order is created with reference to a quotation, costs and stocks can be managed in the quotation. The quotation number is then adopted into the sales order as an account assignment. 
  • Alternatively, you can change the settings in Customizing so that cost management and sales order inventory management only starts with the sales order. For this, you must assign a requirement type to the item category of the quotation that does not permit make-to-order production.
In account assignment, all costs and revenues are allocated to the relevant account assignment objects. The data necessary for the assignment is maintained on the account assignment screen at item level.
  • Business Area: The business area is a legally independent organizational unit within a client, for which balance sheets for internal reporting can be created. It is determined either on the basis of sales organization/division or the delivering plant.
  • Profit Center: A profit center is an area of responsibility within a company for which a separate operating profit can be calculated. The profit center is proposed from the material master record if maintained. You can change the proposed value manually.
  • Profitability Segment: The profitability segment consists of criteria that have been defined for the particular operating concern in the controlling area. You can enhance the profitability segment manually.
  • Settlement Rule: The settlement rule consists of the sender and the settlement distribution rule which includes the settlement receiving accounts, distribution factor, settlement type, and validity period. 
    • Settle to a business segment
    • Settle to a general ledger account
  • Results Analysis Key
    • The results analysis key controls how the relationship of costs and the base (such as revenue or produced quantity) for an order's progress toward completion is valuated.
    • The results analysis key proposed by the system depends on the requirement type. You can change the key manually.

Make-to-Order Production: Cost Management Using the Project System

Unit Costing for a Make-To-Order Item in a Sales OrderIn make-to-order production with cost management using a project, all costs and revenues relating to the make-to-order item are collected and allocated to a project in the SAP Project System. The costs are allocated to profitability analysis.

Enter the project number in the Project field on the Account Assignment screen.

Sales order stock is inventory that results from a make-to-production sales order. Products are made or assembled in response to the customer’s order. The resulting stock is assigned specifically to the customer’s sales order and becomes part of sales order stock.

The following stock types are available for use with sales order stock:
  • Unrestricted use
  • Quality inspection
  • Blocked stock
Sales order stock is not available for material requirements planning (MRP).

Costs in Individual Purchase Orders

The values from the vendor invoice, or from the purchase order, can be used as the cost price in individual purchase orders. 

You can make the necessary settings for this in Customizing.
Billing is related to the delivery for customer individual purchase orders. 
You need to make certain settings in Customizing for billing document copying control at item level if you want the cost for the billing document to be taken from the vendor invoice or purchase order, and not the valuation segment in the material master. The quantity indicator in the billing document’s document flow then controls where the cost comes from.
  • If you activate F in the Billing quantity field, the value is calculated from the incoming invoice and copied to the VPRS condition. This assumes that the customer billing document can’t be created until the vendor invoice has been posted, checked by copying requirement 004.
  • If you activate ? in the Billing quantity field, the value is calculated from the incoming invoice and copied to the VPRS condition. Goods receipt for customer purchase orders is not normally valuated and the value from the purchase order is used as the cost.

Costs in Third-Party Business Transaction

If Customizing has been configured appropriately, the system determines the cost for third-party order processing from the value of the vendor invoice plus proportional statistic conditions (for example, cash discounts or statistical freight) from the purchase order in Materials Management.

You need to make certain settings in Customizing for billing document copying control at item level, if you want the cost for the billing document to be taken from the vendor invoice with proportional conditions. The quantity indicator in the billing document’s document flow then controls where the cost comes from. Activate indicator F in the Billing quantity field (billing quantity equals goods receipt quantity minus quantity already billed).

Resource-Related Billing

https://help.sap.com/viewer/7b24a64d9d0941bda1afa753263d9e39/2020.000/en-US/46446cb2-7707-48f7-89bc-fe886f1c681b.html

When to use?

When there are no rules to calculate the pricing as it is known not yet. 

Where is it applicable?
In the Customer Service (CS), Sales and Distribution (SD), and Project System (PS) components for processing sales orders and service orders.
  • Make-to-order production
  • External plant maintenance in the service company
  • Specific services such as consulting
Use
Carry out the new resource-related billing for the following objects:
  • Items of an SD document with controlling object 
  • Items of an SD document with relation to a work breakdown structure 
  • Items of an SD document with relation to a production order or internal order
  • Non-revenue bearing service orders with reference to an SD document item
  • Revenue-bearing service orders


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