Cost Estimate Run

Hi Gurus,
Please tell me why we run cost estimate and what is the use of it.
What are impacts of running cost estimate?
Please revert asap.
Thank You

Hi,
Cost Estimate is runned to calculate the Cost of Goods Manufactured or Cost of Goods Sold for your Materials and Update the prices in Material Master.
You have different ways of Calculating your COGS and COGM in SAP.
The Important methods are
Cost Estimate With Qunatity Structure and Without Quantity Structure.
In Cost Estimate With Qunatity Structure  you will not have the option of entering the lot size for your Cost Estimation. It will be automatically determined from your BOM and Routing.
Whereas In Cost Estimate  Without Quantity Structure you need to manually enter the Quantity at the time Cost Estimation.
With Regard to Impact of Cost Estimates.
While Running the Costing Run you have to Mark or Release your Cost Estimation results inorder to Update the prices in Material Master record.
Hope I have briefly given an idea baout Cost Estimates and its impact.

Similar Messages

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    Santosh
    Reward points if helpful.

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    Hi All
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    Rakesh

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