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MR21 vs PP1

nikkin
Explorer
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What difference is there between entering a cost for material via Plan Price 1 (PP1), on the Costing 2 tab in MM02, and updating the cost in MR21? Aren't they doing the same thing? Other than the obvious; for example MR21 allows you to change the price for more than one material at a time, and cost configuration dictates where the cost is pulled from first, what is the difference? Why would I use one method over the other for setting the cost?

Typically I review the material to make sure it's setup correctly in MM02 and then I set/update the price via MR21 then proceed with costing via CK11N and CK24. Once costing is complete I remove the costing block to release the material for purchasing via MM02 Costing 1 tab. *Also note my materials are set to moving average.*

What I would like to do is just enter the cost in via PP1 from MM02 since I am already there checking to make sure the material has been set up correctly. And then once costing is complete I would go in and remove the PP1 price while I am removing the costing block.

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former_member513101
Active Contributor
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Hi Nkki,

Planned price 1 is used by CK11N and CK40N if you set it at the valuation variant and then you assign it to Costing Variant OKKN. Example okkn-valuation-variant-pp1.png

Normally we set the PP1 to the raw material with price control S. This raw material is assigned to the SFG or FG BOM.

  • When you run CK11N for the SFG or FG, system will based on the valuation variant that we set to pick the price. In our example we set to pick the PP1 if cannot find PP1 and pick the standard price of the material to do the cost roll-up.
  • Or if you use CK11N to run costing for raw mat, system will check whether PP1 exist if no system will use the standard price of the material for your raw mat std price.
  • CK40N is to run costing for mass materials

For MR21, we normally use it to correct the material price if it is incorrect or not realistic. We won't use this for standard cost calculation. MR21 won't auto pick the PP1 be the standard price.

Thanks