Dear sumanth ,
Note : The SO has 'cstd' ( costed ) system status. Is it because of this ? ( If yes,I am unable to remove this 'cstd' status )
Requesting you to kindly guide on this.
To remove the cost indicator you have to uncheck -- Determine cost at ITEM level in VOV7.
so that it will not calculate cost for particular ITEM type .
but in your scenario some sales order VC is editable , check this indicator for that line item type, if it is not check then check the logic in the dependence of characteristics values . so that you can get solution for this .
Regards,
C.B Reddy.