SAP Knowledge Base Article - Public

2883687 - How to Deactivate Inventory Cost of Inactive Business Residence for Cost Calculation in Sales Order Items


You are aware that the Cost of a Sales Order item is calculated as the average of all inventory costs maintained for all Business Residences of a Company.

But, how to exclude inventory costs for a Business residence which is no longer in use?


SAP Business ByDesign

Reproducing the Issue

  1. Go to the Product and Services work centre.
  2. Go to the Products view.
  3. Show All Products and in the Find field search for Product XYZ (XYZ represents the product ID).
  4. Press View All and navigate to the Valuation tab.
  5. Check all valid inventory cost entries for the company ABC (ABC represents the company ID).For company ABC, there are multiple business residences maintained, for example DEF, GHI and JKL (DEF, GHI and JKL are business residence IDs). 
  6. For the cost calculation in a Sales Order you need to exclude the Inventory Cost of Business Residence DEF. 
  7. But, once activated it is not possible to change the status of a Business residence back to In Preparation or even Not Active. 


Deactivate the Business Residence definition of the respective Organizational Unit:

  1. Go to the Organizational Management work center and open the Org Structures view.
  2. Edit the Org Structure. 
  3. In the Effective from date enter a date from when the Business Residence DEF is no longer in use. 
  4. Select Org Unit DEF and navigate to the Definitions tab.
  5. Remove the Business Residence mark. 
  6. Activate the Org Structure. 

If you now create a Sales Order item for Product XYZ the Inventory Cost maintained for Business Residence DEF will no longer be used to calculate its cost, provided the Pricing Date is on or after the business residence deactivation date.

See Also

2547292 - Cost Component of Items in Sales Order Shows Incorrect Value


Sales Order item cost; inactive business residence , KBA , SRD-FIN-INV , Inventory , Problem


SAP Business ByDesign 1911