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Posted by sap product costing -by Moorthy.Ke at 11:45 PM



W E D N E S D A Y , A U G U

Product Costin g - End User Ac ts

T.CODE TASK TO BE PERFORMEDCK11N Create Material cost estimateCK13N Display Material Cost EstimateCK24 Mark Future PriceCK24 Release Price UpdateCK40N Edit Costing RunCK44 Delete Costing r unCKAPP01 Display materials to be costedCKAPP03 Display sales order to be costedCKR1 Reorganization of cost estimateCO03 Display PP Production order CO88 Settlement prodn order collectiveKK87 Settlement of Prod. Cost Coll - IndividualKKAO Calculate WIP for PCC CollKKAO Calculate WIP prodn order collectiveKKAQ Display WIP for CO Production Order Coll.KKAS Calculate WIP for PCC - IndividualKKAT Display WIP for Product Cost - CollectiveKKAX Calculate WIP IndividuallyKKAY Display WIP for Prod. Order - IndividualKKRV Data Collection for Product DrillDownKKS1 Variance Calculation Production Order - CollectiveKKS2 Variance calculation production order -individualKKS5 Variance Calculation Product Cost Collectors - Col lectionKKS6 Variance calculation product cost collector KO88 Actual Settlement Prod. Order Indiv.KRMI Actual costs on order line items

S_ALR_87013046 Material Cost Estimate vs Preliminary Order CS_ALR_87013099 Order Plan_Actual ComparisonS_ALR_87013127 List of OrdersS_ALR_87099931 Price versus Cost estimate

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Sequence for production orders during period-endclosing:

1. Process cost allocation2. Revaluation at actual prices3. Overhead calculation4. WIP determination5. Variance determination6. Order settlement.

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When Should You Not Use Product Cost by Order?

For repetitive manufacturing (stable and continuous production), sincethe production of one material is the main priority over a long period of timeWhen you want to calculate WIP at target costsWhen you want to calculate WIP (at target costs) and variances at thesame time.

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When Should You Use Product Cost by Order?

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2009 (17) August (17)

Product Costing - End User Acts

Sequence for production ordersduring period-end c...

When Should You Not UseProduct Cost by Order?

When Should You Use ProductCost by Order?

Concepts should know in PC

When Do You Use ProductCost by Order?

SECTION II - Cost ObjectControlling

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SAP PRODUCT CO STING

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For individual or lot-related production. It is typically used for order-related production or for batch-related process manufacturing.Production is based on orders for which production and the costanalysis of a certain lot size are the priority.For test production/start-up production (for planned repetitivemanufacturing) for the exact determination of planning data (for example, variance analysis)When you want to calculate WIP at actual costsWhen you want to allocate your lot-size-independent costsWhen you want to schedule your orders accurately.

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Concepts should know in PC

Settlement type

In the plant settings for the order type, you need to selectsettlement type PP1.This means that all production orders for this order type and thisplant have the settlement rule with the FUL settlement type.In the order, the settlement type determines in which of thefollowing scenarios the production order is processed:

Product Cost by Order (FUL) or in Product Cost by Period(PER).

Status control

The status of the production order is very important in thisscenario.The delivered (DEL) or technically completed (TECO) statuscontrol the WIP determination (creation or breakdown), thevariance determination and the order settlement

Work in process (WIP)

This is calculated at actual costs.WIP is only created for orders that have been released (REL).If the order has been technically completed (TECO) or delivered

(DEL), then WIP is not created, but is broken down if it exists.However, WIP is only posted to FI when the order is settled.WIPcannot be calculated at target costs.It is only possible to calculate WIP in Product Cost by Period.

Variance determination

Variances can only be determined once the order has beendelivered (DEL) or technically completed (TECO), as the quantityactually delivered is fixed.This quantity determines the target costs of the production order and thus the variances per piece.This means that WIP and variances cannot be calculated at thesame time.WIP is only calculated for released orders (REL) and variances

for orders that have been technically completed (TECO) or delivered (DEL)If you are using Product Cost by Sales Order with the unvaluatedsales order stock, you cannot reliably determine any variancesfor the assigned production orders and process orders.Therefore, in this case, the system does not support thevariance determination, and you need to use the valuated salesorder stock instead.

Order settlement

The status of a production order in this scenario determineswhether that production order is settled and thus credited or not.The actual costs of the production order are only settled if theorder has been technically completed (TECO) or delivered (DEL).

For orders that have been released (REL), settlement only poststhe WIP to FI (if any WIP was determined).

Lot-size-independent costs

These are determined and calculated once (only) in thisscenario.In Product Costing by Period it is not possible to allocate these

STAGE III - Selected Functionsin Material Costing...

Product Costing Config Flow -Stage II

Config Flow of SAP ProductCosting

Origin group

Direct Costs

Overhead Rates

Cost ElementOverhead Cost Elements

Product Cost Planning

Product Cost Controlling

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Posted by sap product costing -by Moorthy.Ke at 12:31 AM

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When Do You Use Product Cost by Order?

Product Cost by Order enables you to analyze costs atproduction lot level. You can use it for make-to-stock production

and sales order-related production.In sales order-related production, you can use Product Cost byOrder for sales order-related mass production and as asupplement to Product Cost by Sales Order.In Product Cost by Sales Order, you use manufacturing orders(production orders or process orders) as cost objects.The costs that are updated on the manufacturing order areanalyzed by lot and then settled.This means that variances of the cost analysis are onlydetermined once the whole quantity that was planned for production has been delivered to the warehouse.

You can do the following with Product Cost by Sales Order:

Determine and analyze plan, target and actual costs for

production orders and process ordersUpdate or determine the inventory of unfinished products (work inprocess) and finished productsDetermine and analyze variancesTransfer work in process and production variances to Financial

Accounting (FI)Transfer production variances to Profitability Analysis (CO-PA)Transfer work in process and production variances to ProfitCenter Accounting (EC-PCA)Transfer production variances to actual costing / Material Ledger (CO-PC-ACT)

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SECTION II - Cost Object Controlling

Product Cost by Order - Manufacturing orders1 Check Costing Variants for Manufacturing Orders (PP)2 Check Order Types3 Define Goods Received Valuation for Order Delivery

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