Books on Product Costing

Kindly suggest me some books on Product costing.
Thanks & Regards

Hi Friends,
CK11N does not create an accounting document. If your costed material has price control "S" and you release the plan cost estimate (CK24) the S-price will be changed and if there is a quantity on stock this new valuation creates an accounting document.
What is Quantity on Stock ?
Would anyone through some light on that ?
Thanks in Advance
Neela

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ANY ONE NEED SAP PRESS BOOKS PRODUCT COSTING COPA ,OTHER CONTROLLING BOOKS

hi
any one need SAP SIEMENS FICO CD OR SAP CONTROLLING PRODUCT COSTING ,COPA and other SAP CO GALILEO SAP PRESS BOOKS contact me immediately deleted

Stop being unprofessional for your selfish means.. read the rules of the forum and respect it
it is not meant for your marketing needs!

How to calculate the Current APC (Acquisition and Production Cost)

Hi,
Please help me how to calculate the Current APC.
The Current APC (Acquisition and Production Cost) is a calculated value based on Previous Year Acquisition balance plus any value changes up to the time of the report.
The Asset History Report (RAGITT_ALV01) calculates the Current APC value &
The Current APC can also be found in the Asset Explorer (transaction code AW01N) under Country Book 10/ Posted Values tab then the line Acquisition Value and column Posted values.
I suppose that the calculation of Current APC (Acquisition and Production Cost) is getting done in the GET statements in the report RAGITT_ALV01, but unable to find the actual logic.
Please help me.
Thanks in advance,
Satish

Hi,
you'll find the logic in fm FI_AA_VALUES_CALCULATE
A.

Flow of product costing

Hi All,
Iam new to controlling area. I want to know the entire process flow of product costing and what are journal entries reflect in this flow.
Thanks,
chandu

Hi,
The requirement of batch wise capturing of costs can be achieved by creating a separate production order for each batch of production. The production order captures all the cost, which are incurred during the production process. The details of each cost are as below.
1.For every batch of production a production order is raised in the production department. The production order contains the details of BOM and recipe.
2.The Bill of Material (BOM) details the raw material and packing material in the required portions that are required for production.
3.The recipe contains the detail process of production activity including resource such as manufacturing machineries, equipment. Each operation is assigned to its resource and each resource assigned to relevant activities such as Labour, fuel, power etc. (maximum of six parameters for each resource). Each resource is attached to a cost centre.
4. The recipe and BOM are copied to production order automatically when the order is created. The quantities of materials and activities are determined at standard levels (Planned costs).
5. A production order may contain several phases and each phase requires individual confirmation.
6.Once a phase in production process is complete the production person gives his approval by the way of confirmation.
7. At the time of giving confirmation he inputs the actual quantities incurred for material and activities. Using these inputs the Actual Cost can be arrived.
8. From controlling module, the planned rates of activities are uploaded on periodical basis. monthly or annually. The cost of material is taken at Moving Average price.
Once the batch production is complete the production person gives his final approval to the order as u201CTechnically completed (TECO)u201D.
9. At the month end / period end all these process orders are settled at the costing department.
10. The settlement results in calculating the overheads on predetermined rate and transferring the total cost of the production on to the finished product. The following entry is generated
Finished goods stock Account Dr
To factory output Account Cr.
11.The work-in-process is calculated based on the status assigned to production order. If the order has a status of u201Cu201CTechnically completed (TECO)u201D. the work-in-process is not calculated, but the order will be totally settled.
12.The standard cost of finished product is released at the beginning of every month. The standard cost is calculated based on the Bill of Material and recipe defined independently for each finished and semi finished product.
13.The variance is calculated on the difference of standard cost of material and the actual cost incurred in the production.
14. When the actual cost of power, fuel, Labour are accounted against respective cost centres in the month end, the system automatically determines the under absorption or over absorption of production costs. This difference cost will be apportioned to all the batches on a predetermined basis.
Revaluation of Production orders
Initially cost planned in cost centre accounting against activity types are used for valuating the materials that are produced. At the month end when actual cost are booked from financial accounting, revised activity price calculation is carried in cost centre accounting and with this prices the production orders are revalued. The revaluation is carried to the extent of difference between planned vs. actual activity prices. The revaluation production orders will not be carried, as production orders will be settled Immediately.
The actual cost of every batch is determined using above process. A report is generated to know the cost for each batch.
The standard cost fixed with each customer for each product is maintained in a separate database. The Costing department should compare these details with the actual cost of production and identify the difference. Accordingly a Debit/Credit note can be generated.
Once a standard cost estimate is created, it updates the material master with that rate.
Cost Object Controlling is an area in cost accounting that assigns the costs incurred in the production of company activities (such as internally manufactured materials) to those activities. Cost Object Controlling supports you in:
Reaching make-or-buy decisions
Determining price floors
Performing complex cost analysis (such as target/actual analysis)
Determining inventory values
Cost component Structure:
A control of how the results of activity price calculation or material costing are stored.
In Product Cost Controlling (CO-PC), the cost component structure determines the attributes for passing on the following costs:
Material costs passed on to material valuation as the standard price or inventory price
Product cost components are
Material
Accessories
Power
Fuel
Sal & wages
Depreciation
R&M/ Stores
Others
Admin OH
Standard Cost Estimates (Applicable for trading activity)
At the start of the fiscal year standard cost estimates will be released based on the planned raw material prices and planned manufacturing overheads. These standard prices are updated in the respective material master. These cost estimates are run only for make-to-stock materials.
The various components of cost are incurred in producing a product is captured. The following cost components are considered for materials cost, consumables and fuel, direct
Labour cost, utilities. Repairs and maintenance gases, depreciation, administrative overheads. A costing sheet will be created to capture administrative overheads cost which are not absorbed in the products as activity cost but are to be considered for inventory valuation In the first step planned activity outputs for each cost centre are planned, then planned cost that will be incurred against each activity type and primary cost element are planned, by carrying out activity price calculation the planned price of each activity is arrived. These activity types are entered in the work centers and routings. When cost estimates are created, system captures material cost from the prices mentioned in material master. The manufactured overheads are updated from the activity cost planned in cost center accounting.
Sadashivan

Essence of product cost collectors

In REM
what is essence of product cost collector (KKF6n), {As I understand production cost collectors
are cost carrying elements}, but needs to have more insights like how it captures
production costs ( i.e through activities, price maintained in accounting view....)
Does it make any difference if product cost collector is executed before MRP run, or it has
to be executed only after MRP run

Dear Eshwer,
1.Product Cost collector is one of the master data in REM scenario.
2.This product cost collector is no where related to MRP.
3.Product Cost collector is used as a cost object in REM scenario,which means all the cost will be
booked under this product cost collector for that material.
4.Whatever the confirmations that are done in MFBF or MF41 or MF42N,the cost will get debited or
credited accordingly for that material and the impact will be seen in the product cost collector.
5.This product cost collector will be having an order number which will be used for order settlement and
variance calculation.
6.For creating a product cost collector you will require a production version.
7.so whenever you do an assembly or activity or component backflush,the cost will be booked under
this product cost collector.
8.So as such there's no relation between MRP and a product cost collector.
I hope this pints will help you to some extent.
Revert back with your further queries.
Regards
Mangalraj.S

Difference between three types of product costs

Hi,
SAP Masters
can any bode explain the what is the difference between product cost by period, product cost by sale order and the third one is there and also please esplain the master recipe

Dear Kavya,
__1.Product Cost by Period:__
Product cost Collector:
1.Product Cost collector is one of the master data in REM scenario.
2.Product Cost collector is used as a cost object in REM scenario,which means all the cost will be booked under this product
cost collector for that material which is nothing but period based costing.
3.Whatever the confirmations that are done in MFBF or MF41 or MF42N,the cost will get debited or credited accordingly for that
material and the impact will be seen in the product cost collector.
4.This product cost collector will be having an order number which will be used for order settlement and variance calculation.
5.For creating a product cost collector you will require a production version.
6.so whenever you do an assembly or activity or component backflush,the cost will be booked under this product cost collector.
2.Master Recipe:
This comes under PP-PI,where Process order's are used for production.
The master recipe is used for the manufacture of products or for rendering services.
Structure
A master recipe consists of a header and several operations, each of which is carried out at a primary resource. An operation
is subdivided into phases.
A master recipe contains process control data that can be stored in the following way:
· in the form of characteristic-based process instructions, which you define in the operation overview for the phases.
· in the form of XSteps, that you maintain in the XStep editor ( XSteps).
http://help.sap.com/saphelperp60_sp/helpdata/en/05/603bc6462311d182b50000e829fbfe/frameset.htm_
Revert back with your further queries.
Regards
Mangalraj.S

Product costing Scenario

Dear Experts,
I have a basic understanding that to calculate Material cost estimate data from MM and PP is required.From MM we will get material component data thu BOM and from PP we will get data for activity performed during production thru routing.
Now data from BOM is available but activities are not defined in the system. One plant is equal to 1 work center and all overheads are booked at company code level thru jv irrespective of the nature i.e direct or indirect overheads.No overhead cost is booked against process order currently.
I have to implement Product costing and below are the difficulties I`m facing:
1. Which overheads are normally booked against:
process orders
at company code level against production/service cost centers.
2. The production process of FG`s is muti stage but only 1 work center is created for 1 plant. In 1 process cycle at different stages different fg`s are produced. Is the approach of work center is correct or i have to change it.
3. I need to define cost center, what is the basic funda to consider what should be the cost center.
4. To create cost component structure what should be the things to consider.
Looking forward for quick suggestions.....
Regards
Nitisha

Hi Nitisha,
1. Which overheads are normally booked against:
You have to book direct and indirect over heads through costing sheet. First you have to check with client how they want to charge over heads, based on information provided you have to define cost sheet and attached this in the variant.
2. The production process of FG`s is muti stage but only 1 work center is created for 1 plant. In 1 process cycle at different stages different fg`s are produced. Is the approach of work center is correct or i have to change it.
If the process are multiple stages, then you have to create multiple work centres.
3. I need to define cost center, what is the basic funda to consider what should be the cost center
You can define cost centre based on functional side or physical location or allocation criteria. You can find lot of information about it in SCN. So search it.
4. To create cost component structure what should be the things to consider.
First of all how your costing information should display. Based on this you have to create cost component structure. Basically it breaks up the costs i.e. material costs, process costs and overheads. In this you can further sub divide.
Regards,
Mukthar

Acquis. and production cost account specification for AO90

In AO90, for Dep Area 50 and 51, B/S account determination, we have given Acquision: acquis. and production cost account and Contra account: Acquisition value account same. Is this a remmandable practice?
In any case. can you please tell me what should be the specifiations of
(1) Bal. sheet account: Acquisition and production costs
(2) Contra account: Acquisition value posting
Thank you for your help.

Dominic:
Thank you for your prompt reply. When I run ASKBN, it thorws an error that Contra account Contra Account: Acq Value not found for Dep Area 50 as well as 51. FYI ~ 50 AND 51 are differential Dep area (Book - Tax and Book - Stat). Hence i thought of using Bal. sheet account: Acquisition and production costs account as Contra account. After I made this change to AO90,, system thew another error that account 2360100 ( Which is my Bal. sheet account: Acquisition and production costs account) is a Assets Recon Account and can not be used as a Contra account. Can you please throw some idea to handle this?
Also, please let me know the inplecation of setting the areas to reporting only and how is it done. Thank you!!!

Unplanned production cost

Hi friends,
We have an issue related to implementation in textile industry.
There is a type of cost which is 'drawing / knoting' ...it is actually a preprocessing exp....but for a particular type of textile.....there can be multiple production orders using this preparatory process.. This cost is for a specific number of looms.......
In actual practice if in case of urgency they may use more looms and 'drawing' cost will be more...
So the problem is we cannot plan it correctly ...and also it is a one time initial cost of production...
Clint wants to charge this cost to the production orders on a later stage.....based on the actual scenario...
How can we do this???
Even if we charge tis to production orders by some method.....it will end up in production variance...which is not correct??!!!...
Can we keep it seperately and charge to COPA against the gross margin????/ but in that case it will not reflect in actual cost!!!
Please suggest a good solution for this issue...
thanks in advance...
Ramesan

Hi Ajay, Thanks for your reply
Let me elabourate it more....
Industry- Textile:-
There are some pre production activities which cant be added in routing. Such as Drawing, Knoting,
which is not specific to a production order. It is for a serios of Production Orders.
Let say Drawing happened for a particular material x. the same will be used for different production orders until unless the material change. The same is true for Knoting also. These expenses cant be included in routing because this operation is not required for every production order.it is a onetime expenses and must for a series of production orders of same type of material.
How to bring this into both standard and actual expenses avoiding variance.
Alternative-1
collecting these costs to a cost center and bring to copa through assessment.
Advantage- The cost is distributed over the gross profit of the material
Disadvantage- It is not considered as production cost and not included in stock.
Alternative-2
Include in Activity
Advantage- included in production and stock and no variance.
Disadvantage- This expenses booked in one production order where as othere production orders with out this cost. I.e 1st PO overloaded and other PO are not charged.
Please, suggest if any better way is there.

Product costing in BI

Hi,
Is it possible to do product costing in SAP BI?
Has any one done this.
We have scenario as mentioned below.
The system landscape consists of SAP ECC plus some other ERP running with Oracle as DB.
The BOM is maintained in the external system. Product planning is executed in excel and the derived standard cost is updated in the external system. The actual qunatities for production, RM, PM consumption is available in the external system. The actual RM PM rate is available in SAP. The overheads are booked in SAP FICO.
There may be need of cost allocation to be done in BI.
How can it be done?
Please advise.
Thank you.
Deepak

Hi
How are calculating the Previous Period Data selection?
Have you defined an abap routine in the infopackage?
When it has loaded 50000 records, check in the Monitor, for what PERIOD data selection, the load has happened.
You can check the data in source system through RSA3 transaction.
Thanks.

Product Costing in Previous Month

Hi Experts,
Actually we are using repetitive manufacting in our company, and we run the costing on every 1st day of the month, sothat we can book the production during entire month.
Now our management want to run the costing on 28th of previous month. Means for Production starting from 1st Jan 2012, we have to use the costing results on 28.01.2011, but system is not allowing to book the prodction in our system untill we run costing on 01.01.2012. Means we don't want to run the costing on 01.01.2012, but for Jan 2012, we will run the costing on 28.12.2011 and for feb production we will run the costing on 28.01.2012
How can I achive this, please suggest me urgently.
Regards
Ishu

Hello Ishu
Check the costing variant you are using. In customisation for costing variant OKKN check the date control. In the date control configuration select cost date from as Start of next posting period and costing date to as end of next posting period.
So when you run the cost estimate this will be effective from 1st of next period.
Sangram

Product cost collector for sales order related production

Hi Friends,
This is Azam and here i am new to this discussion forum.
we are in situation that use diffrent variant for configurable material in sales order related production,
I would like to have some information about use product cost collector for this kind of sales order related production,
also I want to know difference between prelimanary cost estimate or cost estimate for sales order?
Please co-operate me.
I would be highly appriciated if you can respond at the earliest.
Thanks
Azam

Hi,
Here, for each sales order item, you will have sales order cost estimate. This enables the system to compute the variances once the actual costs are booked against the production.
In the case of preliminery cost, we get the preliminery cost for production order as a plan cost and is not being used for the computation of variance but only for comparision purpose which is very marginally used.
Trust this helps much and do encourage our efforts!
Cheers!

Assesment To Product Cost Collector

Dear All
Do you know how to do assesment from cost center to Product cost Collector based on activity quantity that input by Production planning modul?
Thanks

Dear Shankar,
As you explained it's not possible to perform GI through MIGO or MB1A against a product cost collector.
In case if you want to post the extra component consumption,use component backflush radio button in
MFBF and select do you want to post as per the BOM components(select the radio button for Propose
components according to BOM) or else you can enter the components manually (by selecting the radio
button for No BOM explosion).
I hope through this can post the components,because the cost gets booked in the product cost collector.
Check and revert
Regards
S Mangalraj

Old material overwritten by new material code in Product cost collector

Hi SAP Gurus,
How can I work around if a product cost collector with material XXX has been overwritten by a new material YYY when creating the KKF6N.
Both material code having the same plant, same orde type,same production version but just different material code.
When saving the preliminary costing for the product cost collector for material YYY, the system prompted me the order number 700022 which is already existing and created for material XXX.
By right, this shd not be happened but indeed it did.
Now when displaying the report S_ALR_87013127 - Order Selection, the report showed the new material YYY was created with order number 700022 but the content of the data was for old material XXX.
Now my problem is how can I get back the product cost collector for material XXX as the original order number 700022 was meant for material XXX and not mat YYY.
And also when executing backflush (MFBF) for old material XXX, the error msg prompted as 'content of order 700022: Mat YYY transferred to interface (IMSEG):Mat XXX due to this I can't backflush material XXX.
Really appreciate your expertise on this urgently.
many thanks!

problem due to system bug, have to log to OSS for help.

Product Costing:External Processing

Hi Gurus,
My doubt is I am comparing standard cost estimates of production client with another client which is its copy. The product cost estimate of a material, the cost component 'External Processing' is showing value 700 in PN client and 1000 in the New client. The cost element for 'External Processing is 700000000H as primary cost element and another as secondary cost element. I tried checking the GL account report in FBL3N regarding the postings happened in the GL accounts.
1. My question is why there is a variation of 700(of PN client) and 1000(in NEW client).
2. The second question is, from where these values are flowing.How we can trace back the flow of values for this particular cost component of External Processing' of a material cost estimate?
Is it anyway related with Exchange Rate differences? If so, how and where it is linked?
I'll be really grateful for your answers.
Looking forward for you reply soon.
Thanks,
Prithwi.

Hi,
I have checked the valuation variant 001. The startegy sequence is same only. There's no change in configuration settings as the new client is copy of production client only.
I wanted to know, the 'External processing' data or values from which.postings. How it gets picked up and how we can check its origin?
Thanks in advance for your help.
Prithwi.

Books on Product Costing

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