Activate WIP at Actual Costs

Dear friends,
Our SAP system is going to upgrade to ECC 6.0. We did not activate WIP revaluation functionality in original ECC 5.0. Are there any impacts or notes if i directly activate WIP revaluation function via Tcode OMXW? Thanks in advance for your input.
Best regards,
Jessie

Hi ADI ,
So , its confirmed that its a ML issue only ..
Hence , You have to contact SAP for the same .Refer OSS Note : Note 1497118 - Helpdesk for WIP inconsistencies
Contact SAP helpdesk directly..
Regards
Sarada

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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

Need to de-activate Actual cost component split

Hi All,
I need to de-activate Actual cost component split in the test client.
It has been activated by my testing associate by mistake.
Please let me know the do and donts if anyone has done this de-activation before.
I could not find any relevent OSS messages or consulting notes on this topic
We are using ML Actual Costing and Multi Currency - without actual cost component split.
Thanks in advance,
Regards,
Vik Sood

Hi Balram.
If you have access to an IDES system, you can see a Cost Component split like this:
As fas as I know, this is only for educational porpouses. In the standard System, its not recomended have the detail of the split per movement, due to the huge amount of data genereted. There is a Flag that control this, in a Txxx table (i dont have access to the system right now).
If you really want this functionality, write SAP in the marketplace, and I guess their response is exactly what im saying.
Arturo.

MOH treated as COS actual costs are shown as WIP in RA method 14 (DIP)

Hi,
We have an issue with RA. We are using RA method 14 (Derive Cost of Sales from Resource-Related Billing of Dynamic Items).
When the status of the Service Order is REL and when we execute the RA the actual costs booked are treated as WIP and the
Material overheads are shown under Cost of Sales.
Could you please let me know how to control the customisation on the MOH so that system can treat the MOH as WIP only when the status of the order is REL? Thanks for your help.
Kind Regards
Umapathi G

Hi,
Any help on this?
Thanks for your time.
Kind Regards
Umapathi G

Valuated WIP at Target Cost or Actual Cost

Hi,
In a production order, how do we valuate it at target cost or actual cost?
Thanks,
Teo

Hello Sir ,
As per sap wip is valued at actual cost only.
Thanks & Regards
A.V.J .Krishna Reddy

Actual Cost is not updating in Production Order & WIP

Dear All,
I have issue in production order and Work in Process not getting Target Actual cost in costing view CO03 & KKAY.
Is there any settings or transaction missed out? Please guide me how to sovle the issue.
Thanks & Regards,
Venkat.

Dear,
Please check,
For Target cost
1. Your std cost must be released before Goods Receipt
2. There must be goods receipt posted on the prod order
3. You must calculate variances in KKS1/2
For Actual Cost
1. Post Goods receipt and Goods issues
2. See if any mat movements are pending in COGI
3. Ensure that operation is confirmed in PP and no entry is lying in COFC
Also in CO03GotoCost-Analysis--Here change the lay out and check it.
Regards,
R.Brahmankar

What is the impact if we switch from standard costing to actual costing?

Hi all,
what is the impact if we switch from standard costing to actual costing?
what are the changes is needed in costing?
thanks.

Hello,
Its an nice idea to switch from standard to actual costing. It would be advisable to make this switch over happen in a new period praferably with a new year. You would need to carry out the settings for material ledger / actual costing and for the accounting settings you may refer to sap note 908737.
Not much costing changes would be necessary to the existing configuration but you would need to activate material ledger and allign your Inventory accordingly. The settings for ML would be relatively simple but the main problem would be handling the inventory that you already have in stock. You would also need to have a proper closing procedure followed by next month's planning approach which would actualise the inventory at the end of the month and decide the methodology for next month's plan valuation. It should be kept in mind for configuring ML.
The closing sequence would be as under:
1. Complete all Cost Center and production order postings.
2. Complete all Cost center Assessment / Distribution
3. Calculate Actual rate
4. Revaluate production orders
5. Calculate WIP
6. Settle Production Order
7. Run Costing Run (CKMLCP)
Material ledger is capable of actualising activity costs and WIP as well and you should configure it according to your need.
You can follow the standard SAP documentations for configurations + Note 908737 for configuring ML.
Kind Regards // Shaubhik

Material Ledger - Actual costing

Hi experts,
I am searching for the best practices with ML actual costing.
Please let me know whether it is the best choice to ML perform costing run based on YTD, or periodwise?
What are your experiences related to production orders WIP calculations and prevent of lost costs?
Please advice whether I can count with some positives or negatives while I decided to use ML costing run on YTD basis?
Thanks a lot

Hi Jay,
that can be done without issues. At least not from a system point of view. If the company's finance people and the auditor can live with a new valuation method in the middle of the year, just activate material ledger and perform the closing from that ponit in time onwards.
And even if they are not sure: you still can activate ML and calculate the actual prices, but then don't post them as revaluations but just as accruals, more or less statistically.
best regards,
Udo

Actual cost process

Hello to all! I wanted to know if somebody can help me with costs of OPM. I am working in a test instance and I will make inventory transactions: Purchase receptions, Transfer among werehauses, inventory adjustments. As well as, to report in WIP of production batches. I have ready standard cost of each item and I want to know if it is enough to copy it at the current cost before beginning to make the transactions and calculate actual costs or I have to make some other process.
rgvel@

Hi
I am not sure what the purpose or itention is and hence the question becomes a bit unclear. Could you please elaborate on what is it that you want to achieve. You mention about actual cost and then you say you have standard cost available
REgards
Girish

Material Ledger Active - K088 Settlement doesnt use Actual Cost Comp Split

Production Order quantities are all scrap (in confirmation) thus order balance contains Consumed Materials and Activity Allocation
When KO88 Settlement is run, the system uses Standard Cost Component Split to allocate the residual to Cost Components instead of the Actual Cost Component Split
When we run the flow trace, the message says:
"Splitting according to output material S-Price CCS"
Expectation was that costs would flow according to Actual Cost Component split.
There is note 756167 - This note activates the update of the actual cost component split information in the material ledger document when you perform the order settlements.
However current release is 604, so its expected that this is already applied.
Any help or insight on how to settle using Actual Cost Component split is appreciated.
Edited by: Chris Gibson on May 5, 2010 8:57 PM
Edited by: Chris Gibson on May 5, 2010 8:59 PM

The second option you mentioned of using separate value field for transferring the standard cost component split from the actual cost component split is the way SAP designed this integration between CO-PA and the Material Ledger. But 40 value field for cost component split is excessive. CO-PA allows up to 120 value fields maximum, so I agree it does not seem prudent to use 80 of them for this purpose.
I suggest you reexamine the level of detail you think may be needed in CO-PA and try to use CO-PC reports at the cost element level to report on more detail. Keep the CO-PA view more aggregated and you can stick with the standard solution for comparing standard to actual costs in CO-PA.
Best regards,
Jeffrey Holdeman

Actual Cost Component Split for cross company code transfers.

Hi,
My issue is as follows.
Production process spans across 2 company codes.
Goods are produced in production company code, transferred (via stock transport order) to marketing company code and sold to customers from marketing company code.
Stock transport order follows sales scenario i.e.. marketing company code creates purchase order for goods from production company code and production company code bills marketing for the goods.
Actual costing / Material ledger is implemented in both company codes.
We would like to roll-up (transfer) actual cost component split from production company code to marketing company (in a similar way as in product cost planning in cross-company scenario).
However, due to the fact that the transfer between the companies is in fact a "sales" the goods in marketing company code are seen as externally purchased and the only cost component we can create is based on PO conditions. But we want to get the info about production cost component split.
Once again this is for ACTUAL cost component split.
I would be grateful for any ideas.
Thanks,
Szymon

Hi Udo / Szymon.
I have a question about this issue.
In the sap help about multiple valuations / group costing:
http://help.sap.com/saphelp_46c/helpdata/en/7e/cb848443a311d189ee0000e81ddfac/content.htm
Its not clear if this can roll up the Actual CCS? or what it do? My question is because i read the documentation of bussiness function: LOG_MM_SIT,and also the book *Actual Costing with The SAP Material Ledger*
states that we can handle the rollup of actual cost component split inter-company only with this BF active.
Could you clarify about this?
thanks!!
Arturo.
Group Valuation
Goods movements between affiliated companies not involving intercompany profits are processed using the group view. This view determines the actual cost of goods manufactured for the group, and does not include any intercompany profits. You can, however, display internal profits as delta profits in the legal and/or profit center views.
When you define cost components, you can specify that internal profits between company codes and/or profit centers are shown in detail in the cost component split. You activate these delta profits for the group valuation in the attributes of the cost components.
For each cost component structure, there can only be one cost component under which the delta profit is shown. This means that neither the legal view nor the profit center view can have more than one cost component for the delta profit.
To cost multiple values, you define a costing type for each valuation approach in Customizing for Product Cost Planning. You use the costing type to specify which valuation approach you require. You define each costing type in a new costing variant and carry out a cost estimate with this costing variant.
Group Costing and Multiple Valuation Approaches
In-Depth Detail of the Value-Added Chain: Partner Cost Component Split
You can display in detail the costs of materials and services of every company department in the value-added chain for every stage of the production process. The partner can be traced for every material used. To do this, you define a partner version, which enables the value-added portions of each manufacturing level to be displayed in detail. For further information about this, see Partners and Direct Partners.
The group cost component split can be displayed according to your partner definition. You can display the cost structures of the partners hierarchically according to your requirements, such as the company code segments on the highest level and the plant or profit center segments underneath.
To display partner cost component splits, define a partner version in Customizing and enter it in the costing type.

MESSAGE ERROR: WIP a target cost only possible with Product Cost by Period

I work with orders assign to WBS Element (Non-valuated stock).
If I enter confirmation to an order created, and then execute KKAX transaction to calculate WIP, the system shows this error message u201Cu2018WIP a target cost only possible with Product Cost by Periodu2019u201D, but actually the result has been calculated ok.
If WIP is executed collectively KKAO the error message is the same but the result is not calculated
Everything suggests that what we want is possible, but the error doesnu2019t disappear
Does anyone know what could be reason for the error?
Thanks

Hi
Check your RA key and WIP customizing... WIP at target cost is possible only in Product cost by period
Check your settlement rule in Prod Order.. I guess it would be FUL and not PER.. FUL settlement means you are in product cost by order.. There seems to be a mismatch between your settlement type (FUL/PER) and WIP config
Moreover, if your stock is non valuated, do you at all need to calculate WIP for prod orders? I dont think so
Ajay M

Planned and Actual costs at the Activity level

Hi all,
Can you tell me if there is a R/3 report which lists out the planned and actual costs for a project and displays it for each network and activity? I want these values at the activity level.
I found a report which lists out these values for each network, but I cannot drilldown to the activity level. Please help.
Thanks,
Satyajit.

Hi,
There is setting in network type. Please go through transaction OPUV i.e.
Change view- Network type paramaeters : overview " Overview.
Uner Network type parameters there is one radio button in front of ActvtyAcctAssgn. Just activate it.
Hope this helps.
Regards
Tushar

Actual Costs for Production Order

Hi All
I have a scenerio where they dont want any product costing methods say WIP,Variance calculation & Settlement.
When the Goods receipt is done for production order the actual costs and the Activity costs to be valuated.
Regards
Jayshankar.A

Hi,
In our case the Standard price is updated in the material master. For this, you need to create a costing estimate using T-Code CK11N and update & release in CK24.
When CK11N is executed the standard price is calculated for the material by taking Moving Avg Price of RM (Price indicator V) and the activity costs are calculated as per data given in KP26. These cost components are added and a final cost estimate is prepared, which is updated using T Code CK24.
the pre-requisites are:
1. BOM should be maintained.
2. Routing should be made.
For executing the same procedure for all the materials, you can use T Code CK40N.
Hope this is what you were looking for.
Revert for further details.
Regards,
Rohit.

Actual Costing concept in Material Ledger

Hi
Masters , can any body please explain the concept of Acutal costing in material ledger i think that involves the following steps:
1 Activate actual costing.
2.Define userdefined names for receipts and consumption
3.Assign user defined names for receipts and consumption /
for the above 2 and 3 points what is the purpose we have to define and assign user defined names in coantrolling level selecting the B+ Procurement and V+ Consumption.
thanks in advance

Hi,
Actual costing is a huge concept. It is difficult to explain the concept in few words
Please go through the following link for detailed informaton:
http://help.sap.com/printdocu/core/print46c/en/data/pdf/COPCACT/COPCACT.pdf
Configuration Points:
Path: IMG>Controlling>Product Cost Controlling --> Actual costing/Material Ledger
1. Activate Material Ledger for valuation areas
2. Assign Currency types to Material Ledger Type
3. Assign Material Ledger Type to Valuation Area
4. Configure Dynamic Price Changes
5. Define Material Update Structure
6. Assign Material Update Structure to a Valuation Area
7. Activate Actual Cost Component Split
8. Activate Actual Costing
Coming to your Questions 2 and 3. they are required to be created if you want your own Controlling level for transactions that you would like to differentiate in the material ledger, further than the standard system offers. Normally we don't use unless there are some specific business requirements
Some key points would be:
ML records all receipts, consumptions and variances for each material.
ML gives overview for each material of the starting balance, receipts, consumption, variance and ending balance.
ML calculates the actual cost for each material u2013 finished goods, packaging.
If a material has BOM, variances of lower levels are rolled up to next higher level up to finished goods, to calculate actual cost for raw material, semi finished & Finished goods in ML as unit price.
Calculated actual cost at end of month can be used as standard price for next period in the material master.
SAP MM is on standard price based costing, ML can do monthly average costing.
Direct settlement of all kind of price differences / exchange rate difference/ to materials at the end of the period.
Once activated , it is not that easy to deactivate although possible with implications like not having historic data.
Cannot be used in isolation : All the plants within the company code shall be material ledger active.
Material Price change is not possible after first transaction in that period.
Using material ledger, inventory in US plant in Canada will be available in USD and CAD
Hope this would help you.
Best Regards
Surya

Activate WIP at Actual Costs

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