Design a Quote Request Process Using Product Costing Components

  • by Surajit Mohanty, Independent Consultant
  • November 29, 2012
Learn how to use product costing and internal orders to create a system that can meet all the basic requirements for developing a quote request.
Key Concept

The quote request process can start with an external customer request or an internal product simulation exercise. Multiple departments become involved to develop or review this process. As soon as the marketing or research and development (R&D) department starts this quote process, R&D checks if an existing product with slight modifications in the configuration can be used and if this change is feasible. Procurement becomes involved to provide feedback for procured materials (e.g., their pricing). The production operation department may be involved to check the manufacturing process, and finally, finance reviews the costing of this product and completes the simulated gross margin analysis.

Organizations often need a system that can show them the what-if quotes for new or already used products. They also need a system that enables them to create customer quotes using all available master data, such as the material master and bill of materials (BOMs). The preference is usually to use the material master and BOMs for simulations only without actually changing the production-relevant data. Moreover, while simulating these objects, the organizations may need to use several materials that do not even exist in the system. All these exercises require coordination among various departments. Lack of a system or process in a standard system can cause a delay in preparing a quote request. Using the product cost planning module and internal orders, you can create a system that can meet all the basic requirements for developing a quote or to come up with what-if costing. Base planning object material cost estimates and easy cost planning methods are used from the product cost planning area (the CO-PC module). A separate statistical internal order is created, and the easy cost planning method is used for this object using the product cost planning configuration. Each new product quote is a new internal order.

I outline various configuration elements for the easy cost planning process. However, I do not go into detailed configuration for each step as these instructions are readily available on SAP’s help Web site.

You need to create characteristics and a data entry form to create these quotes. Using a template function within easy cost planning, you can simulate a material cost estimate. Various departments can add their information into the data entry form. I also demonstrate a basic standard data entry form to explain the concepts. In the templates, there is a provision to design a much more sophisticated custom screen using HTML coding.

Surajit Mohanty

Surajit Mohanty is an independent consultant with more than 14 years of SAP Financials consulting experience. In the past he has worked with various consulting firms such as IBM, Deloitte, and BearingPoint. He has vast experience in SAP CO (Controlling/Management Accounting) and FI areas spanning across nine end-to-end implementations. He has delivered solutions to a broad range of clients with various roles in the areas of product costing, material ledger average costing, transfer pricing, profitability analysis, revenue recognition, accounts receivable and payable, sales and use taxation, SAP General Ledger, and integration of the SAP General Ledger with materials management, production execution, and sales and distribution areas. He lives in Schaumburg, IL, with his wife and son.

 

 

See more by this author


Comments

No comments have been submitted on this article. 


Please log in to post a comment.

To learn more about subscription access to premium content, click here.