Configured Item Direct Ship Order Costing

For direct ship orders of configured items or configured components, the cost is driven by the purchase order and written back to the sales order detail line. In this case, a combination of both the Configurator costing method in the Item Master program (P4101) and the cost method in the Cost Revisions program (P4105) are used as the basis for calculating the cost. The Configurator costing method determines how to roll up the cost, after which the cost is either the standard or non-standard cost.

The only exception to this situation occurs when you use standard costing (cost method 07) for sales order entry, which is common in a manufacturing accounting environment. In this case, the purchase order detail line does not write to the sales order. The sales order rolls up costs as it would in a non-direct ship order.