Differences in Costing of Orders

Given the differences in cost calculation between sales orders and purchase orders, these costs are probably different. The cost on a purchase order is different from the cost displayed on the sales order detail line. This situation is especially true in a standard cost (Cost Method 07) manufacturing environment where standard cost is calculated and frozen with a number of variables accounted for beyond the cost of the item from the supplier.

Note: The Configurator Costing Method field in the Item Master (P4101) is used by the purchase order system only, and not by the sales order system for detail line cost calculation.Complications in costing can arise from other variables, such as currency and unit of measure conversions, edits, overrides, or other system variables that can affect sales order and purchase order costs.