Use this activity to define how cost should be captured from a supply site into a demand site, in a multi-site environment. It is a mandatory task to enter data if the cost bucket 510 - Inter-site Material Cost is going to be used in the cost model. You get default data into the page Multi-Site Costing Rules when you create a new site. When modifying a site you have options how cost can be captured from the supply site into the demand site. This is controlled by data in Default Cost Type.
The different rules are:
If no cost is found using the default cost type rule, then the system uses the rule defined in the substitute cost type as a "fallback" method.
As a result of this activity, the cost calculation process for a multi-site planned part, that has cost bucket 510 - Inter-site Material Cost definied in its cost template, can capture cost from supply site into demand site.