Actual Cost of finished goods in MIGO

Hi,
The value of Finished material in FI Document generated in MIGO takes the (Goods Receipt Quantity) X (Planned/Moving average Price from material master), Where as it should take the Total Actual Price calculated after Order Confirmation Based on Actual Material Purchase Price & Actual Activity Posting Value.
For example:
Present scenario
Material-> MIGO QTY>Moving Avg Price -->MIGO FI Document Value
Finished> 1000 EA> Rs. 10/ EA--
>Rs. 10,000=00
Required Scenario:
MIGO FI Document value= (Purchase Value of Raw Material)+ ((Activity Posted while Confirmation)X(Activity price))
Thanks.

Hi,
What u said is right Mr Kapil.. See when u do GR From Production Order System Calculate Moving Price or Planned Price from
material Matser .
As per ur Reuirement u told it should calculate (Raw Material Price + activity+OVHD).
it is possible only when order quantity is less , suppose say your order qty is 150 mt per day and your Plant capacity is 500mt
per day production will be done in a half day, sale can be done on same day after Production with the formula what u told.
If suppose say , Your order is 2000 ton of Oil , it will take u to complete 4 days for your Total production as you told, GR should
be done on (Raw Material Price + activity+OVHD) formula, you dont know exact activity price for 2000 ton until u finish your total
production, at the same time until u do GR sales cannot be done. So in SAP Gr is intially done on Moving Average Or Planned
(Standard Price) , After totla Prodcution GR is Compared with Actual Cost(Raw Material Price + activity+OVHD)= :"Variance".
Plus are MInus is Reduced or added to Finished Goods Account or PP account during Settlement.
If any wrong Pls Correct me Experts,
Pavan

Similar Messages

How to get unit cost for finished goods in prod order

HI all,
IN a production order of type PP04, there is cost analysis you can get from CO03. This shows the cost for finished goods and BOM components. Would anyone know how the cost for finished goods are calculated ? The issue i have is that the unit cost of the finished goods is not correct. It is higher than what it should be. I looked at the moving avg price at material master but the cost used in calculation is different than in material master. Can anyone shed light how finished goods are calculated and why it is picking up a higher unit cost ? Where is the higher cost coming from for finished goods material as shown in CO03 ? The BOM materials are picking unit cost correctly. Would this have anything to do with cost settlement ?
thank you.
joyce

Hi,
Finished goods price will depend on BOM componenet price, activity price and overhead price. Check whether this prices are picking correctly or not.
Regards,
Sreekanth

Actual Cost for Finished Products

Hi All,
For Finished Goods calculation will use Semi finished Goods and Raw Material, while calculating the Finished Goods in cost object controlling system is picking the Standard Price Multiply Actual Quantity of semi finished goods.
My Client requirement is to calculate the Finished Goods based Actual Quantity Multiply Actual Price.
Is there any standard settings available or not?
Regards
Srinu

hi..
If you do not want to activate ML then all materials defined as price control "V" and Price deetermination as "2"
kkumar

Allocation of overhead cost to finished goods through vendors and raw mat.

We are trying to allocate a cost base in our purchasing department of around 200 mio dkk to our finished products. These products we manufacture ourselves. The cost represents salaries and external services
The outcome of an ABC study has been to allocate these costs, first on vendor level based on the total spent on each vendor and subsequently to the raw materials from each vendor based on value. The cost of purchasing should then be included in cost estimate of the raw material and hence in the cost of the finished goods through the bill of materials.
Our challenge now is to implement this algorithm into our product costing system in SAP.
The easy solution from the point of view of the SAP department is to have cost controllers doing the math of calculating the cost per material number in Excel and then allocate this rate through a costing sheet or a template.
But this solution on the other hand leaves the users with an extra manual task which again leaves room for error and it reduces transparency.
So has anyone tried implementing such a calculation scheme in product costing?

Hi
As far as I know, SAP does not support this... What you can do is
1. Calculate this price outside the system and include this overhead in the Plan Price of raw material (Costing 2 View).. So, this gets included in raw mat price itself
or
2. if you want to see it as an overhead, you need to arrive at an overhead% which you may calculate as Amount of these Expenses / Total raw material cost and apply this % across
Study the historic data of past 3-4 years to see if the % remains more or less stable
br, Ajay M

Costing Report summarized production cost by Finished Goods Material

Dear Expert,
I am looking for a report that can summarized the production cost in production order by Finished Goods Material Number.
or a report that can show me the cost components incurred related to a Finished Goods Material.
Can any expert enlighten me? please help.
Thanks a lot.

Hi
I would recommend the product drilldown reports in KKO0...
For this you will have to do settings in OKN0 (Asisgn a Cost Comp Structure and specify the Product Group)
After this, execute KKRV to collect the summarized data and then you can use KKO0 reports
It gives cost of production as per the Cost Comp Str and also the product no, product group, Prod Order etc
Regards
Ajay M

Additional cost for finished goods

Hi all,
Here we are following fifo method valuation. we are using SAP B1 2007B PL 04.
I have a doubt how do we account the additional cost like Rent, Electricity etc.
and What G/L Account need to specify at determination level. Here we are determing G/L account with account groups.
I have a document for that but that doesnt give me clear picture of additional cost and
G/L accounts.
Kindly explain me in details with respectives to G/L Accounts
Regards
Shashi

Hi Shashi,
static costs should be included in a BOM as standard cost items. This will add to the item cost of the finished product.
Have a look at our Wiki here (Expert on Phone Newsletter April 2008):
[How to include labour cost in a BOM.|https://wiki.sdn.sap.com/wiki/display/B1/Howtoincludelabourcostina+BOM.]
You can substitute other costs for 'labour'.
All the best,
Kerstin

How to allocate cost variances during goods issue in sales process?

Hi all,
In China GAAP, cost variances ( variance between standard cost and actual cost) should be capitalized to balance sheet at month-end.
Q1: Could I settle the cost variance to a B/S account instead of P/L account? What's SAP or your recommendation?
Q2: if we settle the cost variances to a B/S account, How could we allocate the production cost when post goods issue for sales order? i.e
Dr: COGS
Cr: cost of finished goods
Cr: production cost (B/S account, cost variances by proration of sold)
Please advice.Thanks in advance
Regards,
Alex LIU
Message was edited by:
Shuping Liu

Hi,
All variances between Standard & Actual cost should be settled to a P/L A/c as these are similar to Purchase Price variances on Raw Material purchases.
If you are valuing your Finished Goods @ Standard cost, then the difference between the Standard & the Actual cost should be debited or credited to a Price or Cost difference P/L A/c either at the time of doing the GR of the Production or at the time of posting the Goods Issue for Sales Order.
The balance in the Cost difference accounts needs to be finally posted to profitability segments in COPA.
Regards,
Assign points if useful.

Finished Goods at Moving average Price.

Hi Experts,
In my company FG maintained at Moving average price, during the Go-live they fed the value manually in material master of FG.
Now at the time of production conformation system considering BOM for consumption, but for cost of production system just taking the value fed in FG material master.
Please explain what is the impact if i maintain my FG at moving average, whether we can change that to standard price.
Please explain me briefly.
Regards
Sreenivas.P

Hi,
Ideally Raw Material, packing material should be maintained on Mvg Avg Price for your CO-PC (product Costing). Finished Goods / Semifinished goods should be maintained on Standard price only.
Actually once you maintain the same on Std price, So after your costing run the system will pick Std. price of that FG / SFG based following :
1. price of RM / PM from material components defined in BOM
2.Activity prices defined in KP26
3. Based on routing / master recipe, system will calculate activity defined for your resource / work center
4. Overheads from costing sheet
So, in Std. price of your FG / SFG, system will give all these details. While you go for your process Order / Production order, system will book actual cost of FG / SFG on production order. So, at month end when you run variance cycle, system will also give you variance between plan and actual.
Hope it will help a lot.
Thanks & Regards,
Taral Patel

Overhead key for Finished goods

Hi all,
Guide on the following.....Depending upon the Costing Overhead Grp the Overhead will be applied , in our case Overhead % applied depending upon the Raw material consumption . So we have incorporated Over head key in all Semifinished material .
Now , in all assembly all HALB material have Over head Key , but whether we should have Overhead Key to Finished material also?
Do revert
Regards

Hi,
It depends how you are arriving at the cost of Finished goods. If all the consumption, activity and overheads are
taken into account upto the top most level of the component, there there is no necessity of assigning a seperate
overhead key. If the company requires packaging charges of the finished goods in batches, bar coding activities are to be added after the production, you can use an overhead key on FG.
Regards,
Sadashivan

Actual Costing-ML

Sirs
My client wants to activate ML/Actual costing.
Basic configuration steps I know and help is also available on the forum. Here my question is that:
What kind of working discipline needs to be maintained to use these functionality so as to get good results? Also please guide what are the pros and cons of using ML/Actual costing?
Best regards
Shalabh Shastri

Hi,
Please go through the below link, & let me know if any more quires apart of from this.
Discipline required when using Material Ledger/ Actual Costing
http://scn.sap.com/message/15326883#15326883
The following Decipline need to follow when ML is Active
I
ML is to arrive Actual Costing for SFG/FG Material which is activated for ML (S-3)
II
1st decipline has to be followed @Material Master Level which will address to All ML Activites
III
Every Goods movment will effect to the respective month end to Calculate Actual Cost
1.All Goods Receipts & Invoice Receipts should puch for respective month
2.All Production Confirmation & Completion of Order to be happed
3.All Delivery & Billing to the respective month should happen
4.All Sales return has to be moved from returnSTOCK to Unresticted
5.All FI-Cost has to book to respective Cost Centers
IV
Actualization of Cost (Prices diffrence) will settled to respective product @month end based upon the sales(charge off) has happened
V
Once atcual posting ML activities has happened *No Goods movment will happen "Provided ML will get reversed"
Regd,
Khan.

Validation of batch nos. in migo for finished goods (fert)

I want to validate batch number entered by user at the time of migo for finished goods (fert) against the batchs in mcha. how can i do this? also is it possible to give f4 help to user for available bach nos. for the particular material ?

Hi,
Cannot you use message M7 668 for this purpose?
Problem is "batch has been already posted in stock"
Regards,
Csaba

Standard report for the cost of raw materail in production of finished good

Is there any standard report for calculation of raw material cost from the production order of finished goods.?
plz help in this issue.
Thanks.

closed

Actual cost at the time of Goods Receipt

Hi All,
When I create Goods Receipt, I am getting actual cost in WBS Element. As per customer request, When I do the Goods Issue then only actual cost has to come to WBS Element.
1. Is it due to statistical cost element cretaed for inventory account (BalanceSheet account)?
2. If statistical cost element not cretaed, will commitment raise?
(Or) Am I missing any configuration settings?
Regards
Suresh

Sureshkumarsap wrote:
> 1. Is it due to statistical cost element cretaed for inventory account (BalanceSheet account)?
Yes, if you are using valuated Project Stock.

Ke24 cost of goods sold field reporting future price not actual cost.

Hi Guru's
KE24 line item report is showing a future price in the costs of goods sold field. Can this report be configured to show the actual costs of goods sold from the relevant accounting document.
thanks

Thanks Mr Ajay for understanding my question.
As I told mentioned in my initial question that I have created the GL:500000 (COGS) when CRM/SD issues the stock for delivery.
What my FI done is that the same GL (500000) is assigned both in GBB-VAX and GBB-VAY as per the client requirement.
Now suggest me as how to come out from this situation?
If I need to do Validation ,request you to give your guidance as how to do it as I never done.
Thnaks in advance.
Su

To get Actual Materail Consumption for a Finished Good

Hello Experts,
I would like to know, how we can find the actual materials consumed to make a finished good. The FM "CS_BOM_EXPL_MAT_V2" gives the standard consumption, means the one which was planned but not actual.
This is urgent for me, as I should know what are the materials ACTUALLY consumed to finish a good and also, from which PLANT those materials were supplied.
Thanks in advance.

Thanks for the immediate reply.
But are they the actual consumed ones? The problem is, I am not finding the PLANT from which they are transferred.
The field "Issuing Plant" is blank from STPO.
And about MAST-WERKS for that SFG, I am finding the plant same as the one of FG. But I need the plant from which it was transferred.

Actual Cost of finished goods in MIGO

Similar Messages

Maybe you are looking for