Mascidon, LLC

SAP Business  One Add-on Products

Cost Rollup - SAP 9.x

What does it do?
This module calculates the material and resource costs associated with a bill  of material  and 'rolls up' these costs from the lowest level of the BOM to the finished good level. 

SAP 9.x includes 'resources' within the BOM that define the labor,  machine and other costs associated  with the manufacturing.  Each of these costs has up to 10 'buckets' of costs defined in the Resource Master file.    When this add-on rolls-up the costs, the costs at each level in the BOM and the accumulated costs from all levels are stored in an SAP SQL table - 2 cost  buckets for  material - costs this level and accumulated costs; 20 cost buckets for each of the resource types (labor, machine and other) - costs this level and accumulated costs.  The end result of the cost rollup is an SAP table with all these costs defined by item.
If that were all this add-on did, your cost accountant could dump the contents of this SQL table to Excel and begin analyzing costs - knowing the costs were accurately calculated based on the current BOM definition. 

Cost rollup features:
  • Material costs used in the rollup are defined as either current costs within SAP, last cost, or prices as defined in a price list. The user defines this at the time the rollup is initiated.
  • Prices within SAP may have differing currencies.  The current currency exchange factors are presented to the user prior to the rollup and they can accept these or key in the currency exchange factor they prefer to use.  All prices in the cost rollup table produced are expressed in the system currency.
  • The user can elect to rollup costs for specific assemblies or all assemblies defined for the company.  Selecting 'all' is a  check box.   Selecting specific assemblies is done by adding items to a 'grid' of items in the cost rollup screen.
  • Cost rollups are done by warehouse unless  the warehouse selection is left empty.  For instance, the user can select 'All' items and then enter warehouse '01' and then all of the items with a BOM for warehouse '01' will be processed.

    Managing Pricing
    After the cost rollup SAP SQL table has been populated  with the costs, this add-on provides more functionality for cost accounting personnel.
    • Costs  from the SAP SQL cost rollup table can be pushed to an SAP price list.  This can be done selectively - material only for instance; or all  costs added  together and pushed to a price list.  The end result is the SAP  price  list has the sum of the rolled  upp costs by item.
    • Price list  costs can be used to populate  the SAP BOMs.  The BOM assembly items and component items have a defined pricelist list and its associated price.  These can be automatically populated from within the Cost Rollup add-on.  Why do this?  Think of a 10 level BOM with 1,500 components.  In a couple of minutes the prices on these BOMs can be updated using this automated method. 
    • Inventory can be revalued from a price list.  Most  often this is used to restate the 'standard costs' by cost accountants -  to bring the current standard costs closer to the actual current costs.  Prices from a price list are pushed to the standard cost defined for a warehouse - item.  An inventory revaluation transaction is created to adjust the inventory value.

      Indented BOM Features
      There are a few 'other' features in this module not specifically related to cost rollup.
      • An indented BOM query is provided that shows the rolled up costs for any BOM currently on the BOM screen. 
      • An indented BOM report is provided with both the component items and the resources included.  SAP's standard report shows only the item components.
      • An indented Where Used query is provided that shows all  of the higher level assemblies requiring a component.  This is an excellent tool to use if manufacturing issues are found with a component or sub-assembly.  It provides the means to quickly identify the items with potential 'upstream' issues, including parts that may have been shipped to customers.
      • During the rollup, the cumulative weight of the items are also rolled up from the lowest level of the BOM to the final assembly.  This is stored in the same SAP SQL cost table.  An accompanying SQL query is provided with a report of the weights by item. There are two uses for this report: first to test the reasonableness of the BOM.  If the rolled  up weight is 5,000 pounds and you know the product weighs around 200 pounds - there is a BOM error in either the component weights or in the BOM quantitty assignment. Second, this weight can be used to populate the shipping weight of the items in the item master.