Material ledger and standard cost estimate

Hi Gurus,
When standard cost estimate is done in a scenario, where  material ledger is activated, does the entire stock get revaluated andl post a credit in my P/L? Is it possible  to keep my inventory(FG and SFG) at periodic unit price ie at the actual manufacturing price over a longer period say 3 years? Please fill this gap in my understanding.
Best regards
Vimal

Hi Vimal,
Material ledger uses the standard price as 'preliminary price' always during the current month, independent of the question if a new standard price was estimated and released.
But: After period end, when the actual price is calculated the posting will adjust the inventory and P/L accounts to the actual price, with posting date in the recent period.
That means if you have a material that was manufactured once and then consumed over a 3 year period, and during that period you calculate the same material in a standard cost estimate with changing results, that would mean: Looking back at any month during the 3 years the consumption and stock values will be valued at the actual price of manufacturing. But during the currently open period it will always be valuated at the price of the last released cost estimate.
I hope I understood your scenario correct...
Best regards,  Udo

Similar Messages

  • Costing sheet and standard cost estimate

    Hi
    I am trying to use Costing sheet for overhead calculation .
    But in costing run I am not getting the overhead amount calculated .
    I created the costing sheet and assigned that to valuation variant .
    Where from the actual / Plan values being picked up for over head calculation .
    More over I need to understand on what basis the %age for overhead can be calculted to be aborbed to material cost .
    In costing run I am having ZERO values for overhead .
    I have followed the following steps
    Costing Sheet: Components
    Define Calculation Bases
    Define Percentage Overhead Rates
    Define Quantity-Based Overhead Rates
    Define Credits
    Define Overhead Keys
    Define Overhead Groups
    Even then the Production overhead is not being calculated at the time of Cost Run
    for standard cost estimate .
    regards

    Do you enter overhead  group in the material master.
    Key that groups together materials to which the same overhead is applied.
    Procedure
    In costing with and without quantity structure, and when costing production orders and run schedule headers, you can apply percentage overhead charges by means of an overhead key if you:
    Assign a costing sheet to your production order or run schedule header, or to the valuation variant for the cost estimate
    Enter overhead charges in this costing sheet that use the overhead key field
    Assign the overhead key to an overhead group
    Enter this overhead group in the material master record of the material

  • Material Ledger - Actual / Standard costing

    Hi Experts, we need some help in material price determination with material ledger. Due to local regulations, we need to have our material master with price control determination valued to V in local currency, however, due to IFRS regulations, we need to post the group currency (USD) with standard costing.
    We've already configured opposite way (local/group currency with price control S and calculation of actual costing with CKMLCP for previous period) but we need something similar for local currency in V price determination.
    Any ideas?
    Thanks in advance.

    Thanks for your response. Yes, CKMLCP will change the price control to V but we need this price in every operation in local currency (price determination 2). Now, in material ledger, we need to post the standard price (by operation or adjusting with a process at the end of the period). This is the scenario that you are saying but backwards.

  • No standard cost estimate found for the material

    Hi,
    When we are trying to generate the bill systems throws the error as "no statandard cost estimate found" whereas the material is a kmat material.
    Actually as per the requirement we should not Run standard cost estimate for any material,we will update the standard price in MR21
    What are the settings that i need to do  to avoid the above error message while doing billing?
    Following error msg is appearing:-
    No standard cost estimate could be found for material "300000"
    Message no. K/834
    Diagnosis
    In Profitability Analysis, an attempt was made while valuating with material costing to read for material "123456" a standard cost estimate released on posting date "02.10.2008".
    The system has discovered that there are no error-free standard cost estimates released in plant "BP01" on the specific date "02.10.2008" for material "123456".
    The material cost estimate is accessed according to the CO-PA Customizing settings for costing key "YG1" under Define Access to Material Costing.
    Display Cost Estimate for Material
    Display Material Cost Estimate without Quantity Structure
    System Response
    It is not possible to process the document further.
    Procedure
    Check your system settings.
    Thanks
    Kishore

    Remove the Costing keys assignment in the step "assign costing keys to any
    characteristics" in COPA Configuration settings.

  • Relation between Preliminary and Standard Cost Estomate

    Hi,
    I would like to know how preliminary cost estimate using product cost collector and standard cost estimate are related to each other.
    I am not quite clear how both are used for a given plant in repetitive mfg scenario?
    Regards,
    Yogesh

    Hi,
    Thanks for the reply,
    My question do not need so many details for its answer.
    I would just like to know if standard cost estimate will still be required even if we are using repetitive manufacturing or it gets handled through product cost collector.
    I would like to know if there is any overlap between the two from process point of view.
    Regards,
    Yogesh

  • Issue with Standard Cost estimates / Material Ledger

    Background:
    We have been using SAP for the last 5 years with Material Ledger active. Due to a number of reasons, we have not revised its standard cost estimates from 2001 till now. This means that at month end, we do not mark and release prices as recommended, nor do we mark prices and use dynamic release.
    What Happened:
    A new material called PFSW3 was made. This is a FERT. Before production
    could start my team released the standard cost estimate for this material. Production was now able to proceed without problem. Then, when the time came to sell the material (VF02), SAP again raised the error 'cost estimate not found'. On checking the standard price in MM03, we discovered that the future cost estimate was missing. So we created and marked a new cost estimate in the middle of February 2007.
    Problem:
    When the first sale took place, SAP released the marked cost estimate and posted a Price Change document to adjust for the new standard cost. I understand this was due to dynamic release. Now, when month end came, the system settled all the production orders of material PFSW3 but did not do multi level costing on it.
    Internal Investigation:
    My team has determined that the material PFSW3 has price determination 2 set by mistake. All our other production materials (HALB and FERT) are
    set to price determination 3 in the material master (accounting view).
    Questions:
    To sum this situation up,
    we need to know why the material PFSW3 was not marked closed in its period status (CKM3) at the time of closing through CKMLCP?
    What are the implications of not closing this material in Feb 2007 (current period status is showing 'Quantities and values entered')?
    How can we close this material this month?
    The future cost estimate is again missing for PFSW3 in March 2007 and I
    fear we are going to face more problems as this material is sold to customers.
    Please respond this is an urgent issue.

    Dear Shumyl,
    Please, have a look at Note 645083 - Material period status set to "Closing Entry Completed" that might help to closing your material in previous period.
    Hope it will be useful.
    Regards,
    Flaviano.

  • Material ledger and cost estmate

    Hi all
    Can any body tell me the impact on material ledger of deleting the current standard cost estimate from material master? The requirement has come for change the current standard cost from material master whom we have released on 01.01.2008 and now today at 07.01.2008 we want to change this. All the transactions for material in current period I have got the reverse. Now I will delete the cost estimate from T_code CKR1 and than the new standard cost will releases from today in same period. At month end we are going to run the actual costing. Would be any problem in actual costing?
    Thanks and Reagrds
    Vinay Thakre

    thanks Pascal for prompt response,would you please advise my below understanding to ML and actual cost
    1)CKMLCP - Edit Costing Run to create costing run to calculated periodic unit price
    2)Because there are some activities in CKMLCP,we have to respectively execute CKMF / CKMG/CKMJ /  CKMH / CKMI for each activity of costing run
    3)after costing run with  CIMLCP,SAP will use calculated periodic unit price to revaluate inventory for previous period,and the price indicator S automatically  changed to V for previous as well.
    4)SAP will generate FI cocument to adj inventory and consumption cost after "post closing"
    5)there is different periodic unit price for each closed period
    5)the price indicator for closed period is always V,the price indicator in current period is S

  • Standard cost estimate could not be found for the material

    Dear All,
    We have 4 manufacturing plants and 30 sale depots. We are maintaining price control (S) for FG and SFG in Manufacturing plants,price control (V) at depots for the same material code. we are getting an error message " standard cost estimate could not be found for the material" while doing billing at depot.
    Please give me suggestion.
    Your suggestion should be appreciate.
    Thanks in advance............
    AND
    My client want to see profitability at manufacturing plant level and need break up for the COGM. So how can i get the values of depot sales.
    please let me know how to do........

    Hai
    Price control should be S for Depot also. You need to run standard cost estimate in DEPOT after entering additive cost under CK74N for frieght, excise duty etc. To transfer the standard cost from the source plant you  need to make configuration  in OMD9 defining the receiver and sender combination so that system can pick up the cost from source plant. This special produrement type needs to be asigned in the material masters of DEPOT under MRP 2 view.
    Pushkala

  • Report showing labor and machine time based on standard cost estimate

    Hi Friends,
    Ours is an Manufacturing organisation & we have a requirement of report showing machine and labor time as per part wise & cost center wise. We need to run the report before saving standard cost estimate [CK11N]  in order to see the part wise or cost center wise discrepancies in machine and labor time. If any one could help in creating such report in SAP  it will be of great help.
    Regards,
    Varsha

    Hi Varsha,
    you can jump from CK11N to a own report by
    Menu Function 'Costs -> User Exit Display'
         Cost Report 1 / 2 / 3
    The own report can be implemented via (SMOD) enhancement SAPLXCKA
    The report will be handed over the currently displayed in the program interface.
    some example coding is provided for the exit.
    compare SAP Note No. 71146
    best regards,   Udo

  • K/834 no standard cost estimate and ke435 costing key 000 does not exist

    Hi ,
    scenario as under we have following type of materials
    normal Material that has cost estimate
    Configuarable material
    Material without cost estimate -prices are updated thru MR21 (as some legacy system calculated the price)
    There are many company codes and use one or more above  category of material. further we have common Material type and valuation class.
    we need cost component split to get updated in COPA and for that i create 2 costing key one for normal and other for normal one and developed an enhancement (KEPC) that check whether material is configurable or not. based on that it assign 001 or 002 costing key
    it went well but failed for material that has no cost estimate and got error K/834.
    To tackle same we insert further logic to check for normal material whether cost estimate exist, if yes then assign costing key 001 else ignore it. configurable material logic remain as it is. it working fine for normal and Configuarable material but normal material without cost estimate resulted in error KE435.
    need to know:
    -at first place why system  generates K/834 error for enhancement - earlier we were using assignment rule (KEPC) where we use valuation class and assigned costing key 001, it worked for normal one and ignore configurable one and normal material without cost estimate. I haven't changed costing key rule and exclusive error is not marked .
    - any other way to tackle besides resetting message class from error to warning or changing Materila type or valuation class as that is not acceptable due to other complexity.
    Regards,
    Atul

    Hi,
    It resolved thru enhancement
    Regards,
    Atu

  • Is it possible to do Standard Cost Estimate even if we have open sales Orde

    Hi,
    I have a small doubt and questions regarding Standard cost estimate.
    Is it possible to Execute Standard cost estimate when we have Open Sales orders and Open Purchase orders?
    Is there any problem if we execute standard cost estimate when we have open Sales orders and Open purchase orders?
    Kindly clarify my doubt and help me.
    Thanks
    Supriya

    Dear Supriya,
    There is no relation between sales order or purchase order and a standard cost estimate.
    Standard cost estimate basically sums up the cost of the BOM components and the operation(activity
    cost) or the processing cost(if sub-contracted) based on the material's procurement type and the
    costing variant used.
    Check and revert back.
    Regards
    Mangalraj.S

  • Excise Duty - Standard Cost Estimate

    Hi Experts,
    We have defined Excise duty as one of the cost component in the cost component structure.  Can some one explain how this Excise duty is posted as planned values in the Standard Cost Estimate ( For material cost quantity from the BOM and price from Material Master is picked up according to the Valuation Variant - defined strategy - similarly for Excise Duty how the system captures the Value).
    Please Help - thanks in advance.

    Hi
    If your Plant is not in an Excise Free Zone - Then You should not add Excise Duty as a cost component because you will be getting credit for the same
    If your Plant is in an Excise Free Zone - Then your MAP/Planned Price etc must be inclusive of Excise duty.... This is handled by marking the excise condition as Non Deductible
    So, in short, there is no way to show it separate... For Case b, you can use CK74N to add Excise component as Additive cost
    br, Ajay M

  • Problem with rounding in standard cost estimate.

    Hi All,
    Happy 4th of July!
    I have a problem with the standard cost estimate where the system try to calculate overhead costs (from costing sheet) with a fix percentage (9.7%) to the value coming from material consumption costs element.
    Let say I have $1.71 material consumption and the overhead rate of 9.7%
    The real calculation should be (1.71*0.097) = $0.16587
    But at CK11N screen, it shows only $0.16 (two decimal rounding)
    Is there a way that I can bump the rounding to at least 3 decimal point to make it more accurate?
    Very appreciate any input you guys can share. Thank you.
    Charitha

    Hi Chari ,
    My experience says that you can use only 2 decimals ..
    Moreover , please have a look into SAP Note : 639410 - CK11N, CK13N: Message CK869 due to rounding
    differences.
    There a some source code corrections also on rounding differences- check if it helps you also...
    Regards
    Sarada

  • Recursive Loop Error while doing standard cost estimate

    SAP Gurus,
    We are trying to do standard cost estimate on a material and we are getting error because it is going in recursive loop even though we have used "recursive allowed" indicator for item components in the BOM. The error message numbers are CK 730 and CK 740. We are using 4.6c. I have tried the same scenario in ECC 6.0 and still I get the same problem.
    Below is my BOM structure:
    Material 10890345 (has low-level code 012)
            ---> 10867220 (has low-level code 013) and has recursive allowed indicator
    10867220
            ---> 10846733  (has low-level code 014) and has recursive allowed indicator
    10846733
            ---> 10890345 (has low-level code 012) and has recursive allowed indicator
    According to me, the BOM for material 10846733 is causing the problem.
    For some weird reason while doing the costing run for material 10890345, it s not stopping and going in a loop.10890345  and 10846733 should ideally have the same low-level code as they are recursive.
    Please help to provide some solutions at the earliest on how to avoid recursive loop during costing.
    Regards,
    Swapnil

    Dear,
    I have 2 things to shear with you.
    The method we followed to solve the iteration is as below
    1.Config change -
    Valuation variant in the costing variant, we changed the sequence as below
    material valuation
    4 planned price 1
    2 std price
    3 Mov ave price
    2. Material master change
    made all the semi finished goods and finished goods
    procurement type = E,
    costing with qty structure,
    Enter the planned price1
    By doing this what happens is
    when system first start the iteration, takes the planned price 1 and start iterating and next time in the second iteration it takes the calculated price from qty structure till it finds the difference between the value calculated is less than .001. Then it gives the result
    Why lot size is important is, in our case in some levels the usage is very less compared to the first material header qty and system used to stop in between  and not even reaching the last level as during the cycle it was reaching less .001 difference. may be in your case it may not be the case...just check
    Please come back after trying this. this was the only last option i had to solve the issue in my client.
    Another alternative is to have a different material for costing purpose to stop the iteration which i will not recommend as we need to do some calculation for each stage and input the cost of dummy material in each stage.
    My client is happy with the result as the difference between manual calculation and system calculation is less then .1%...this is because SAP will not consider the difference beyond .001, but in excel you get as many as decimals you want.

  • Update of Price in Material Master  when standard costing is released.

    Hello SAP gurus,
    When we created standard cost estimate, various cost estimate is created in various views Cost of good sold, cost of good manufactured and Inventory ( commercial ). Different view have different cost estimate.
    But we I release costing , the material master is updated by cost estimate of Inventory ( commercial). The cost estimate from Cost of good manufactured should be update?
    I am not able to solve the above issue , please help with customizing link
    Regards,
    Anand Agrawal

    Hi Anand,
    While you configure the Cost Componenet structure you define the attributes of cost Components in OKTZ.
    When defining the cost components, you must specify whether the cost component plays a role in the creation of the different prices that are transferred into the material master record. You have the following options:
    Standard price
    Costs that are flagged as relevant for stock valuation form part of the standard price if the results of the standard cost estimate are marked and released. These costs also serve as a basis for the following:
    The calculation of target costs in variance calculation
    The valuation of scrap in variance calculation
    The valuation of work in process for the confirmed yield for the operation (order-related production, process manufacturing) or at the reporting point (repetitive manufacturing)
    Commercial price
    Costs that are flagged as relevant for inventory valulation for the purposes of commercial law form part of the commercial price. This price is calculated in an inventory cost estimate and can be written to the material master record.
    Tax price
    Costs that are flagged as relevant for inventory valuation for the purposes of tax law form part of the tax price. This price is calculated in an inventory cost estimate and written to the material master record.
    The above information will prove helpful.
    Regards,
    amol

Maybe you are looking for

  • Best practice in datawarehousing

    This is the scenario for the client I am working with. They are taking data in the obiee reports , directly from essbase cube. ETL used is SSIS and schedular is Control M . Some times our client faced issue of server going down , still they are not d

  • Are you holding my phone number hostage now?!

    I recently switched back from a temporary iPhone4 to my Samsung Galaxy that insurance reiumbursed for me. I love the samsung phone but now I am not able to text with contacts who have iphones. I have been reading about this problem on many forums and

  • Converting Word Doc to PDF Form

    I am trying to convert a word document into a PDF Form. I have tried running the 'Form Wizard' in Acrobat 9.x Pro. I have the current version, just can't remember the rev. number. Supposidly the Form Wizard will recognize areas of the word doc as fie

  • One last question. Font size for the 8900?

    How do you change the size?  I can't see a way - at least not like my old curve.  Anybody know?  Thanks! Solved! Go to Solution.

  • Problem while import

    hi experts, i am facing the problem while importing DC. here is the msg i am getting . Problems were encountered during import:  Failed to read the project description file (.project) for LocalDevelopmentpapermtcs.com.  The file has been changed on d