Actual Cost of Product with Price control "S"

Dear Gurus,
Is there any report available where we can know the Actual Costs of Materials with Price Control "S".
In the material master field the actual cost in the "Moving Price Tab" of the material with Price Control "S" is available, but is there any report available for plant level?
Thanks & Regards,
Amit Dhanurdhari.

Hi Amit,
-- Under Standard Costing, you value your inventory at Standard Costs and any variances in Production Process will be settled to Price Difference Account. You will not be able to find out actual cost per unit. In Multi-level BOM scenario under Standard Costing (CO-PC), variances don't get rolled-up to the next level, only costs get rolled-up.
-- Under Actual Costing - Material Ledger, You will be able to find out the Actual Cost per Unit. Variances get rolled-up to the next level.
To explain difference between Standard Costing in CO-PC and Material Ledger briefly....
You have given Price Indicator as "S" in the material master of "X" material (semi finisher or finished) and you are doing Standard Cost Estimate for arriving at Standard Cost per tonne. Let's say, the Standard Cost per tonne is Rs.1000/-
Now, when you created production order for 10 tonnes and received output of 10 tonnes (GR). But the total cost incurred on that production order is Rs.1100/-. In this situation, actual cost per tonne is Rs.110.
But, because you are following Standard Costing, When you post GR against this Production Order, inventory will be posted at Standard cost only, i.e., Rs.1000/-. and the balance of Rs.100 will be posted to Price Difference Account. (and parallally the variance of Rs.100/-) will flow to COPA.
So, it is clear that, though, at Production Order level you can see the actual cost, at "material" level, you will not be able to see the actual cost per tonne.(as long as you are using only Product Costing and Standard Costing)
Alternatively, if you maintain Price Indicator as "V", you will able to get the Actual Cost per tonne at material level, but there will be no scope for establishing standard cost and comparison with actual thereof.
But, the same is possible if you are using Material Ledger (CO-ML). If Material Ledger is active, you will be maintaining "S" in the material master, still, the variances will be settled inventory and you will be able to get the actual cost per tonne. (bothe Standard cost estimate, actual cost per tonne will be possible).
Pls revert back for further explanation
Srikanth Munnaluri

Similar Messages

  • Is it required to cost the materials with Price control "V" ?

    Dear All,
    Would like to know if we have to consider the items with Price control "V" during the cost run in CK40N..?
    Since the system automatically updates the price of the item for price control "V", do we also require to update through cost run?
    Please help me understand.
    Best regards,
    Praveen

    Hi,
    Materials with price control "V" is dynamically updated with value whenever there is a receipts.  The system will calculate average rate by dividing total value by total stock.  Hence, cost the materials for this price control is not relevant.  It is recommended to have price control "V" for all externally procured materials.
    Best Regards,
    Madhu

  • Production costs for material with price control V

    Dear all,
    Can anyone pls tell me, how will the costing occur for a material produced in-house and having price control 'V' ? I am not able to see the target costs.
    Also kindly tell me the settings to be done in CO, like target cost version, valuation variant, costing variant, etc.
    Thank you,
    Shrenik

    Rather than giving my own versions I have compiled here SAP inputs. Pl let me know if you require any clarifications:
    Costing variant has the following components:
    <b>Define Costing Types
    Define Valuation Variants
    Define Date Control
    Define Quantity Structure Control
    Define Transfer Strategy
    Define Reference Variants</b>
    <u>Costing type:</u>
    In the costing type, you define the purpose of a material cost estimate by specifying, for example, which field in the material master record the costing results can be transferred to:
    Update Cost Estimate
    Standard price Standard cost estimate (01)
    Tax-based price Inventory cost estimate
    Commercial price Inventory cost estimate
    Price other than std price Modified standard cost estimate or
    current cost estimate
    No update Any cost estimate
    Define Valuation Variants:
    Define Valuation Variants
    Here you create a valuation variant containing the parameters required for valuation of a cost estimate.
    You also specify which costing sheet should be used to calculate overhead.
    Valuation Strategies
    Material valuation
    Here you define the sequence in which the system searches for prices from the accounting view or costing view of the material master record to valuate materials. You can also access prices from purchasing info records and condition types.
    For material cost estimates, you also specify whether additive costs can be added to the selected price.
    With configurable/configured material components and with procurement alternatives, the sequence defined here is ignored if the strategy "price from purchasing info record" was selected, in which case that strategy is always executed first. For more information, refer to the SAP Library in the component Product Cost Planning under Raw Material Costing or Mixed Costing.
    Activity Types / Processes
    Here you define the sequence in which the system searches for prices in activity type planning or actual activity price calculation in Cost Center Accounting or Activity-Based Costing to valuate the utilized activity types and business processes.
    You also specify which plan/actual version is used.
    Subcontracting
    Here you define the sequence in which the system searches for prices in the purchasing info record. In purchasing, quota arrangements are used to create a mixed price for materials that are manufactured with external vendors with parts provided by the customer. You can specify whether the quota of the individual vendors that are entered in the source list for the material to be processed should be determined through the planned quota arrangement or the actual quota arrangement.
    External processing
    Here you define the sequence in which the system searches for prices in the purchasing info record or routing operation for valuation of the external activities.
    Strategy Sequence
    You define the individual valuation methods for the valuation variant as strategy sequences. For the valuation of the material components you define a strategy sequence that reads the fields of the material master record in a particular sequence such as:
    1. Planned price 1
    2. Standard price
    3. Moving price
    The first price that is not zero is used to valuate the material component.
    Target versions:
    Target cost versions  are used in the following ways:
    In variance calculation:
    To control which variance (total variance, production variances or planning variance) is calculated
    To valuate unplanned scrap( scrap variance)
    Unplanned scrap is valuated in the period-end closing activities when the variances are calculated. You can specify in a valuation variant for WIP and scrap which cost estimate you want to use to calculate the target costs for the valuation of unplanned scrap. You assign the valuation variant to target cost version 0 if you want to include it in the valuation of scrap.
    When you are using a cost object hierarchy with active distribution, you use the target cost version to control which cost estimate the system uses to calculate the target costs, which are used as the basis for determining equivalences for actual cost distribution.
    The actual costs collected at the level of the hierarchy are distributed across the orders in accordance with these equivalences. This distribution is proportional to the target costs for the cost element under which the actual costs are written. Actual costs for material costs are distributed in proportion to the target costs for the origin group, such as for the material, if you have entered an origin group in the costing view of the material master record and have set the indicator Material origin, for example.
    If no target costs were calculated under this cost element, enter a cost element group in the target cost version. The actual costs are distributed in proportion to the target costs for this cost element group. This cost element group should be complete. If costs were updated under a cost element that is not in this cost element group, no distribution is possible.
    You can calculate equivalences on the basis of SAP standard target cost versions 0, 1 and 3.
    The standard system supplies the following target cost versions:
    Target cost version 0 ( total variance)
    The amount of the total variance generates a posting in Financial Accounting during settlement.
    For this version, select actual costs as the control costs and standard cost estimate as the target costs.
    Target cost version 1 ( production variance)
    For this version you choose actual costs as the control costs and planned costs as the target costs.
    Target cost version 2( planning variance)
    With target cost version 2, the costs from the preliminary order cost estimate are interpreted as control costs.
    For this version, select planned costs as the control costs and current cost estimate as the target costs. You cannot calculate planning variances for the product cost collector.
    Target cost version 3 (production variance of the period)
    You compare the planned costs of the period calculated on the basis of an alternative material cost estimate (such as a modified standard cost estimate) with the actual costs of the period on the basis of the yield delivered to stock in the period.
    The base quantity for variance calculation is the yield.
    For this version, you choose the actual costs as the control costs and the alternative material cost estimate as the target costs. To determine the alternative material cost estimate, enter a costing variant and choose a costing version.
    The target cost version specifies which data is to be compared. The target cost version also specifies which variance variant is used and therefore which variance catagories are calculated. You can define a different target cost version for each controlling area

  • Adding additional costs to Material with price control "V"

    Good Morning Gurus
    We want to add some additional cost to materials. How to do this ?
    These materials are valuated at MAP.
    Actually there are some delivery costs which were not inventorised correctly to the materials. The materials are undervaluated, we want to add this additional cost to the materials. We donot want to hit the price control account.
    Is there any other way ??
    Thanks
    Regards

    Hi,
    You can alter the Costing variant and valuation variant according to your scenario. Check the costing variant in OKKN and valuation variant OKK4. You will find the indicator for additive cost there.
    Regards,
    Jigar

  • Cost Run should not be getting executed on Material with Price Control V

    Raw & Packing materials are with price control V in MM as company wants to keep them on moving average cost. Somehow finance users executed cost run on one such material and cost run was executed and the difference was posted in price difference. As far as I know, system shouldn't be allowing cost run on materials other than those having S as price control.
    Question is: How to ensure system sends error if cost run is attempted to be executed on materials with Price Control V?

    Hi
    If you are executing cost run using CK40N, it releases the cost for all the materials i.e. both for the header and the components
    the components may be usually valuated at V. So, the std price update for these will be only for information purposes and it wont revaluate your inventory for sure... This cant post to price difference.... Price diff upon std cost release will apply only to those materials which have price control S
    However, if you dont want to release the cost for V items, you can specify them in the exclusion list... In Ck40N selection parameters you specify your plant/material, etc...  While specifying the materials to be costed in the multiple selection screen, , you can also specify the ones not to be. Then std cost wont be released in those cases
    Regards
    Ajay M

  • Moving average price calculation logic of material with Price Control "S"

    Dear Gurus,
    As you know that there is a Moving price and standard price icon in the material master.
    I want to understand the calculation logic of the moving average price of the materials having price control "S"
    How the system calculates the MAP for standard price materials? The receipt from the process order I suppose is valuated at the process order cost after settlement, but if the issue has hapened for the material does the system recalculate the issue price also?
    Below is the sample process order receipt and issue scenario:
    Receipt from process order 161000000223
    300 kg and GR at standard cost value is Rs 5892
    Issue to process order 162000000294
    250 kg and GI at standard cost value is Rs 4910.
    Thus the balance at period end is 50 kg and balance at standard cost value is Rs 982.
    Here in process order 161000000223 the actual cost is 10 Rs. Then how will the system calculate the MAP?
    Thanking You,
    Amit Dhanurdhari

    Hi
    Try the following calculations,
    One of them will work depending upon your version and support pack
    Expected MAP calculation ( As with price control V)
    = ((Qty before transaction*MAP + Transaction Qty * transaction
    Price)) / quantity after transaction
    New Method ( when price control is S)
    = Old MAP + (Price Variance w.r.t Standard Price/Qty after transaction)
    Also go through the following notes,
    Note 1225167
    1253944
    518485 FAQ: Valuation of goods movements
    212286 Overview note: Valuation during goods movements
    209864 Moving average price is disproportionately large
    202166 Collective note: Statistical moving average price
    185961 Moving Average Price Calculation
    I have done extensive research on this, let me know if you need to know something specific.

  • Actual cost of Production Order settled to Fixed Assets

    Dear all,
    My client is doing in-house production of moulds (internal order suggestion is not accepted by the client) for which
    they have the following
    1. BOM
    2. Machine hour
    3. labour
    4. overhead etc
    5.plan value
    6. actual value
    Can i settle the actual cost of production order to Fixed Asset ?
    If yes
    what are process kindly give me if any process other then the below
    1.production order created
    2. settlement profile - FA is settlement optional
    3. allocation structure
    4. Asset created
    5 define asset in settlement rule
    Kindly give me your valuable input
    regards
    elango

    Hi,
    Although i am not CO expert , please check with your FICO consultant who are expert before make the final call.
    During settlement to a G/L account or a fixed asset, the system ignores additional account assignments that were manually specified in the distribution rule.
    Based on what i know .
    you can stipulate that settlement may be made to cost centers and orders, but not to fixed assets.
    The Settlement profile is something that you need to create a settlement rule to settle the actual costs of a sender object.
    About the Settlement rule is something that  contains the distribution rules for the sender. It will define how the way to settle the cost.
    Allocation Structure
    In the settlement structure you combine the primary and secondary cost elements into groups, in which debits are then posted to the sender objects. For each group, you specify whether (for settlement to a given receiver type) settlement is performed
    by cost element or using a settlement cost element.
    For example, you might use settlement cost elements:
      To document the purpose of an order (such as, repairs or maintenance)
      To reduce data volumes (you can combine a number of debit cost elements
    under one settlement cost element).
    TQ

  • Actual cost of product in COPA

    Dear all,
    I am relatively new to COPA functionality.
    The requirement is that actual cost of product should be reflected in COPA and not the planned.
    Kindly give me the background also, as in the integration of COPC and COPA.
    Thanks in advance

    Hi,
    Sudhakar is completely right in his comments. But, I would not just accept that actual costing is not active, so you have to find a solution without it. Your requirement is a good reason to activate actal costing, and calls for it.
    The way SAP foresees to bring actual costs into CO-PA would be:
    Activate material ledger / actual costing
    [http://help.sap.com/saphelp_erp60_sp/helpdata/en/a5/320e28d56c11d295c200a0c930328a/frameset.htm]
    Calculate periodical actual prodcut costs at period end
    [http://help.sap.com/saphelp_erp60_sp/helpdata/en/ec/f835d7f08311d185810000e8a4bacc/frameset.htm]
    Revalue CO-PA at actual costs with KE27
    [http://help.sap.com/saphelp_erp60_sp/helpdata/en/f5/0f0739edfcb03ae10000000a11402f/frameset.htm]
    [http://help.sap.com/saphelp_erp60_sp/helpdata/en/7a/4c39be4a0111d1894c0000e829fbbd/frameset.htm]
    That brings you a completely integrated and accurate solution for actual product costs in CO-PA
    best regards,
                  Udo

  • CK40N - Update for material with price control 'V'

    i Experts,
    When im running standard cost estimate in CK40N, say for material types semi finished. The components that is raw materials of the SFG is also updated with the price, meaning for a raw material with price control 'V' has a price of 10, after
    releasing the cost estimate for the SFG, when i look into the material master of raw material, the price of 10 is also updated
    in the standard price.
    I am not sure why this is happening, i believe it should not happen. Because in the valuation variant, if i give the strategy as standard price, this price is easily picked up. And more over with price control 'V', i can change the standard price. Can anybody throw some light on this.
    Best regards
    gj

    Hi Rakesh,
    Thanks for the information. But i do agree even during release there is no impact on the inventory. But in my cost variant, say in PPC1, if i give the strategy say 1. standard price 2. moving average price, during cost estimate run, its going to take the standard price for the material irrespective of the price derived automatically for moving average price. For eg in our case for raw material with price control 'V' after sce run if the standard price is 10 and moving average price is 14, as per strategy of PPC1 above its going to take 10 and not 14.
    Is there any other way to avoid this. Please correct me if i had went wrong somewhere.
    Best regards
    gj

  • Function module for calculating planned and actual cost of production order

    Hi ,
    Do we have any standard function module for calculating planned and actual cost for production order?
    i need to implement this in a Z-report.
    Thanks
    Srini

    Hi,
    try below function module
    CRMCO_GET_PLAN_ACTUAL_COSTS
    CO_IH_GET_PLANNED_COSTS_TOTAL
    Regards,
    Sankaran

  • Table of Actual cost of production

    Hi Experts,
    I m developing one Z report for our client which shud contain Standard cost & Actual cost of production of the sold material for that particular month.
    I am following KKBC_PKO tcode for the same.
    Standard cost & Actual cost has a part of secondary cost element.
    Can I know which table will have Actual cost details to present in above mentioned report??
    Thanks in Advance.
    Madhu.

    Dear Madhu,
    Table COEP will help you to check the actual cost.
    Check and revert back.
    Regards
    Mangalraj.S

  • Price differenc value in Actual cost of Production

    Hi,
    We are creating a production order for Billets that is our Semifinished goods. The material master is maintained at Std price.
    Lets say that Std prce of the Billet is 100.
    Lets say that after the production order is completed , the actual cost of Billet is comes out to be 125.
    Now this billet is used for the production of the finished goods Wires. For the production order of wires, the price of the billet is taken as 100. 
    In this way the actual cost of the Wire will not come.
    May be this is the standrad process. Let me know in any way can we use price difference of 125-100= 25 in the production cost of wires so that I can get the actual cost of the wire.
    We are not using Material Ledger.
    Any suggestion
    regards

    Thanks Ajay,
    Even using ML we cannot get the actual price before the end of the period. And at the month end only we can valuate the inventory withe actual cost. I hope I am right till now.
    Pl correct if I am wrong.
    But in this case some wires rods are already out from the inventory for the sale that was valuated with the Std Price of the Billet.
    Hence these invenories will  not be available at the month end for the revaluation.
    Pl. correct If my thought is OK.
    ML can only be used where ther is lots of Raw Matl price variation..Hence I think I should go with the std price valuation itself.
    regards
    Kamlesh

  • Costing of product with last purchase price

    Hi
    how would be possible to get the Costing through CO with the last purchase price of the Product .
    suppose one product is having nos of SFG & RM.
    Rgds
    Pankaj Agarwal

    hi
    Is it that the the system has to pick up the last purchase price cost for standard costing run or while executing the production order, if it is while production order  update material price as planned price in material master using Z program and use planned price as strategy for valuation variant in actual costing variant.  But this is little bit cumbersome every time you have to run the z program for every purchase order for that raw material and if the prices are highly volatile  input price variance will be very high
    krishna

  • Actual cost of production order in inventory valuation

    Hi,
    Kindly tell me in our client requirement to "capture actual cost of drum manufactured. This cost will go to finished mixer. So actual goods receipt of drum should be with actual production order cost . Also actual mixer cost should be taken from actual production order cost. How to map this s cenarionin in SAP" ?
    Best Regards,
    Anindita

    Hi Shyam,
    In SAP product costing we use generally standard cost estimation. Raw material ara taken as moving averagae price as v and finished products are taken as standard price i.e, S. Before cost estimation we update plan price in material master costing view 2 for accurate cost estimation. In case of standard cost estimation price variance is occured which is post to separate gl account. Our client wants actual cost rather than standard cost. Without implementing material ledger is it possible to do actual costing in SAP. Please let me know the process of actual costing...
    Regards,
    Anindita

  • Actual Costing in Production Order

    Dear All,
    We are in Production Client.I have created cost estimate and moved to material master.
    PP has created a production Order and confirmed the activities.
    When I view the costs from CO03,i can see the target costs perfectly,but actual costs are not apprearing in the order.
    We have 6 activity types and out of 6 ,we have costs for 5 activities and for the remaining 1 activity ,plan qty is maintained ,but there is no plan cost.Is because of this ,actaul costs are not coming in to order? Or any thing is missed out ?  
    Please share any idea on this issue as we are in production.
    Regards
    Su

    Dear Mr Ajay,
    Sorry for the information given in the previous one as I have given wrong Order No.while checking.
    I have checked once again with the correct order.When I checked COFC ,System has given the error messages for the Setup activity type for which price is not available in the system as no costs are planned for the activity type as we don't  have setup hours for this month,but qty is planned and PP has confirmed the set up qty.
    Is because of this issue ,actual costs did not appear in the order?
    To my knowledge ,as I said we have 6 activity types,out of which there is no cost for setup,hence system is throwing a error for no price for that activity.
    But the system can capture the actaul costs for the remaing 5 activities for which prices are available.
    Regards
    Su

Maybe you are looking for