2547292 - Cost Price Component of Sales Order or Service Order Item Shows Incorrect Value

In the Pricing and Invoicing tab of a Sales Order or Service Order you notice an unexpected cost amount for an item which distorts the profit margin.

SAP Business ByDesign

1. Go to the Sales Order work center.
2. Go to the Sales Order view.
3. Find sales order XXX (XXX represents the sales order ID).
4. Press View All and navigate to the Pricing and Invoicing tab.
5. Select line item XX and press Expand (X stands for the Line Item ID).
6. For the Cost price component an unexpected amount appears.

You expect the cost to be derived from the inventory cost value of the business residence of the ship-from location. 

The material ordered in item XX is stocked in different business residences. The Cost price component displays an average value of the inventory costs of all business residences of the selling company: 

1. In the Inventory Valuation work center go to the Materials view. 
2. Search for All Materials and find material YYY (YYY represents the product ID of line item XX in sales order XXX).
3. In the Company column filter for the selling company of sales order XXX. 
4. You notice, the material is maintained for more than one business residence, displaying different inventory costs. 
5. The sales order item cost is calculated as an average of all valid inventory costs (provided they are higher than zero and the respective org unit is still a valid business residence). 

This is the expected system behaviour.

Please note: The value maintained for the sales order item's Cost price component is of display purposes only. For the actual goods issue posting, the inventory cost maintained for the ship-from location's business residence is derived.

The same valuation principle does apply to Service Orders.

sales order item cost,  pricing and invoicing, profit margin, wrong cost , KBA , SRD-FIN-COR , Cost & Revenue , AP-PRC-PC , Calculation , How To