SAP Knowledge Base Article - Public

2951453 - How to use condition type Cost (PCIP) in SAP S/4HANA Cloud

Symptom

  1. How is the cost determined in pricing?
  2. How shall I set up condition type PCIP in Customizing?
  3. Why is the cost not copied from the sales order to the subsequent document although, in the copying control from delivery to billing document, I have used a pricing type which does not redetermine the cost?
  4. Where can I see how the cost is determined?
  5. Why is the condition amount of condition type PCIP in a different currency in the billing document than in the sales order?
  6. Can an item have several price conditions of condition category Cost (G)?
  7. Why is the price condition PCIP of a document item not zero although the related goods issue had the condition value zero?
  8. Why is the currency conversion for condition type PCIP performed differently than for other condition types?
  9. Can I use condition type PCIP as a template to copy to other non-statistical condition types?
  10. Why is the price condition PCIP not redetermined when a repricing is performed in the billing document?

Environment

SAP S/4HANA Cloud

Cause

General questions about the cost when used in pricing.

Resolution

1.       How is the cost determined in pricing?

In the sales order, the cost is generally taken from the valuation segment of the material master.
However, in the billing document, the cost can have other sources. Depending on the business transaction, for example, the costs can be determined from the goods issue of the invoiced delivery.

In the following, we describe only the goods issue case as an example. However, the information also applies to costs from purchase orders, goods receipts, and invoice verification runs.

These costs are handed over to pricing and included in the condition value of condition type PCIP. The condition amount is calculated as condition value divided by quantity. Therefore, the calculation of the condition value may differ in the billing document.

2.       How shall I set up condition type PCIP in Customizing?

To ensure that the real costs of the business transaction are included in condition type PCIP, the condition must be assigned to condition 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).
The condition category ‘S – Standard Cost’  takes costs exclusively from the valuation segment of the material master.
For condition type PCIP, you must not assign an access sequence. In the pricing procedure, set the Statistical indicator for condition type PCIP.
Recommendation: In addition, in the pricing procedure, enter routine 4 in the Requirement field and select B (Carry over value to KOMP-WAVWR (cost)) in the Subtotal field.

3.       Why is the cost not copied from the sales order to the subsequent document although, in the copying control from delivery to billing document, I have used a pricing type which does not redetermine the cost?

Condition types with condition category ‘G’ are subject to a special logic during billing. If the goods issue is available, the system always determines the condition value from the condition value of the goods issue.
This behavior is independent of whether the price condition was merely copied or redetermined in the billing document.

4.       Where can I see how the cost is determined?

In a business document, for example, a sales order, choose Item Conditions, select the price condition PCIP, and then choose Condition Detail.
- If the condition control is set to Condition value fixed (cost price) (H), the cost is taken from the goods issue.
- If the condition control is set to Adjust for quantity variance (A), the cost is calculated from the valuation segment from the material master.
- If the condition control is set to Fixed (D) or Condition value and basis fixed (E), the cost is copied from the preceding document.

5.       Why is the condition amount of condition type PCIP in a different currency in the billing document than in the sales order?

If the cost in the billing document is taken from the goods issue, the condition amount is derived from the condition value (which is always in the document currency, in this case from goods issue):
Condition amount is condition value divided by quantity.
As a result, the condition amount is always in the document currency. A currency conversion is not performed. This is the standard system behavior and cannot be changed.

6.       Can an item have several price conditions of condition category Cost (G)?

It's not recommended to have more than one price condition of condition category G for an item. For each item, only the first price condition of condition category G receives the goods issue value as the condition value. The special logic for condition category G is not carried forward to further price conditions.

7.       Why is price condition PCIP of a document item not zero although the related goods issue had the condition value zero?

For technical reasons pricing cannot differentiate between a goods issue with value zero and no goods issue. As a result, the system determines the costs from the valuation segment of the material master in both cases.

8.       Why is the currency conversion for condition type PCIP performed differently than for other condition types?

In contrast to other condition types, condition types with condition category Cost (G) are always converted with the exchange rate type average rate (M), while ignoring the defined exchange rate in the customer master. An exception to this is intercompany billing.

The exchange rate type average rate ensures that the costs posted in Financial Accounting (FI) and Controlling (CO) are identical.

9.       Can I use condition type PCIP as a template to copy to other non-statistical condition types?

It's not recommended to use the condition type PCIP as a copying template for other condition types because the following issues may occur:

       a) The specific rules for currency conversion are implicitly transferred to the dependent condition types.

       b) As part of third-party business transactions or individual purchase orders, the costs in the billing document and therefore the condition value of PCIP might change subsequently.

If the document is already in accounting, an adjustment of additional price conditions is no longer allowed and is not carried out. As a result, there is a risk of inconsistencies if other price conditions depend on the condition value of PCIP.

10.   Why is price condition PCIP not redetermined when a repricing is performed in the billing document?

In general, the cost is taken from the goods issue in the billing document. However, the information of the goods issue is only available while creating the document.
Therefore, the true costs would be irreversibly lost during a repricing if price condition PCIP was redetermined.
The same applies to condition types from condition category costing (Q), such as Actual Costs (EK01), Calculated Costs (EK02), which are not recalculated in the billing document either.

For more information about condition types, see Condition Types on SAP Help Portal.

See Also

SAP Help Portal - Condition Types

Keywords

WAVWR, cost, PCIP, allocation value , KBA , SD-BF-PR , Pricing , Problem

Product

SAP S/4HANA Cloud all versions