Business scenario of Product Costing

Hi all
pls explain me about business scenario of product costing
thanks in advance

Hi:
(From the link: https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/webcontent/uuid/4f0f6717-0b01-0010-949b-9ab68dd45fec [original link is broken])
Identified Need: You need to accurately determine the costs incurred in producing the goods and services that your company provides.
Business Process to Meet that Need: Product Costing
Product Costing helps a company know the costs incurred by its products in order to successfully manage its product portfolio.The product cost accounting business process calculates cost of goods manufactured (COGM) or cost of goods sold (COGS) broken down by each step of the production process.
For config:
www.sap-topjobs.com/SpecialPP/samplepc.doc
Assign points if info helps
Vj

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  • Business Content for Product Cost Collector analysis - KKBC_PKO

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    Edited by: Siegfried Szameitat on Jul 14, 2010 2:47 PM

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    Message was edited by:
            Davide Cavallari

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  • Co-Product and By-Product Costing in SAP PP Scenario

    Frds,
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    You have posted in a wrong forum.  This should have been posted in PP forum
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  • Product Costing in SAP Retail Solution

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    hi
    Product hierarchy in R3 is termed as Merchandise category hierarchy in SAP IS retail
    But in R3 Product hierarchy is not used much but Merchandise category hierarchy that is termed as MCH  is a basic thing reqd for defining master data that is article master data which is nothing but material master in R3
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  • Product Costing - Process Order Confirmation

    Dear Experts,
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    Can anyone please guide me further regarding this scenario and if any one can suggest any work around then it would be highly appreciated!
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    Hi Zain
    This is a very unusual question
    Buddy, there is something in accounting called as "Going Concern Concept" which we all were taught in our accounting days.. That means when you do business, do it with a mindset that you are goinig to do it for long / for ever.. Accidents dont happen every day and you cant build a system around such things
    Assume there is a fire (God forbid).. After the accident, you wont even know how much was  lying there unconsumed which got gutted in the fire..
    And insurances not just covers the stock lying consumed, but also stock manufactured and stock in the process of manufacturing (WIP)
    And most importantly, dont expect SAP to throw up a figure at the click of a button.. Does your client really think that they will simply submit the report generated from SAP as-is to Insurance people?? SAP is just a technology enablement, which requires human intervention at various places
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    Br. Ajay M

  • Product cost by period process

    Hello
    Gurus,
    Can anybody please explain the process of product cost by period, eventhough i searched but i did'nt get clear picture.
    Please help in this because i have interview
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    Dear Kavya,
    1.Product cost by period is used in a REM scenario - Repetitive Manufacturing.
    2.Here a product cost collector is created for the material + each production version combination.
    3.All the costs(activity posting,Goods issue,goods receipt) are captured in the product cost collector of the respetive material.
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    5.This type of costing can be used for a continous production like cement industry,steel manufacturing(dealing with furnace).
    6.Here along with the costing part there are certain other shop floor control parameters to choose or select this scenario or a
    Discrete scenario(where Production order's are used).
    7.In a REM scenario confirmation will be made against a planned order or even with out any planned order.
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    S Mangalraj

  • Product Cost Planning

    We are embarking on production planning & I need to know best course for financials/product costing.  Would the AC505 Product Cost Planning Course be suitable for a business who is about to embark on production planning .  We are in manufacturing, and we will be using lots of components (BOMs) and process orders etc.

    Hello Higgins:
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    AC505 - focus on product cost planning. for example, from BOM, routing to estimated / simulated cost.
    AC520 - focus on ACTUAL cost scenario ,for example , make-to-stock , make -to order, sales, service, periodic
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  • Product Costing and Production Planning

    Hi,
    Is Product Costing absolutely required before implementing Production Planning, specifically PP orders? My client does not want to plan costs or need any cost estimates. They want to use a PP order to check availability for a BOM, and then issue it out to an external vendor for services. After this material is processed by the external vendor, he would ship it back and we would be doing a goods receipt at the parent level of the BOM. The whole purpose of this is to get the accurate price of the BOM parent which would include all service costs. This parent would finally be sold via the regular SD sales order process. Our Logisitics consultant suggested that the only way this could be accomplished is a PP order. All this looks okay, but he also mentioned that a PP order cannot work without Product Costing and the process cant be accomplished CO-PC. I am unable to grasp why SAP would force us to have costing when the client doesnt need any cost estimates, planning etc. Could any one please tell me if we need CO-PC for this scenario?

    Dear SAPFicon,
    Technically, to run PP without using product cost planning would cause a lot of problems during business process of production order. Because, once a production order is created then the data structured is freezed in the PO and if there is any missing data it will cause errors. Any errors in production order would stop the following transactions. We never know what would be the error level of the production order. The worst case, the production or should be cancel and start it all over again.
    But by using product costing or product cost planning, this is a preliminary step to prevent and eliminate any error of the products tobe produced.
    So, ideally, there is one person in charge to ensure that the products which be produced in the production orders are free of error.
    So, the product costing is an integrated module that take data from variouse module such as PP, MM, CO, HR.
    The product costing use the Logistic master data such as folllowing;
    1. Bill of material
    2. Routing
    3. Work center
    4. Material master
    How you can say, that running PP without PC will run, while the to run the smooth production order, you need to mandatory parameter in Material Master that belong to Costing area.
    Without having product costing, I can assure that your client will trap in a lot of troubles with their business process.
    Please see the online documentation for product costing for a better overview or you are welcome to ask again
    Regards,
    Irhasni

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