Activity cost impact on Target Cost issue

Dear All,
Earlier this issue was posted in PP forum but didnt get the answer
Kindly follow the link.
[Activity cost impact on Target Cost issue;
Regards,
Shayam

Dear Shyam,
Normally the Total costs in activity price calculation (KP26) are taken and multiplied with quantity and charged off to the receivers irrespective of the type of costs i.e. whether it is a Fixed cost or variable cost. We don't have functionality to consider the Fixed costs to spread across the output and take the per unit value accordingly. The Fixed costs in kp26 are updated just to reflect the costs in the cost component structure as Fixed costs.
Kind Regards
Umapathi G

Similar Messages

Special MTO Scenario - Costing Issues

Hi,
Not sure if I should post it here or in the FI / CO forum, but here it is ...
I'm in the process of implementing APO in a Aerospace company in Montréal, Canada and we're stuck on an Account Assignment Planning, and Product Costing issue.
Today, all demand / production / movements / costing is done by creating a Project Network.
Here are the current settings:
- Create a project with activities for each major "line section" for major components.
- Each activity has a component allocated to it
- Each activity has a different WBS element assigned to it.
- All production orders/purchase orders/goods movements are created/posted against the WBS elements.
- All stock for MTO parts are assigned to the WBS element
In order to provide better integration with APO and bring more flexibility in the Planning and Simulation processes, we were hoping to stop using Project Networks as the trigger for demand / planning / execution. The idea was to use Sales Orders (or Customer Independent Requirements - CIR) to generate the demand and run APO and MRP planning from it. The special stock segment now becomes linked to the sales order (or CIR) which changes alot of thing in the accounting documents and costs elements in the whole planning and execution processes.
Here is what we were hoping to achieve in order to limit impacts on finance :
- we are implementing APO and would like planning to be performed without using project networks.
- we would like to have planned orders for the top level for long term and be able to trigger the purchasing of long lead time items.
- we would like all goods movements (PO reception, GI to production order etc, ) to be posted to WBS elements
- we would like all production orders to settle to WBS elements
We tried different scenarios with different account assignments categories, but could not find one that fits the bill :
1) we tried using account assignment category "D" which allows assignment to sales order and WBS element. We created CIR as demand.
The problem is the stock is non-valuated which resulted in having no accounting documents for goods issue to production order.
2) we tried account assignment category "Q" with using CIR as demand. We had one WBS element assignment in the CIR. When we changed the WBS value in planned orders to represent each "line section" we ended up with duplicate demand in the original segment and the new segment.
So, is there a scenario with valuated stock that would allow us to do a make-to-order process that would post all costs to WBS?
Thanks,
Marc

Hi, sorry for the title confusion ... I cannot change it anymore.
I'm not sure I understand what you are proposing.
In our case, the problem is not really linked to the CIFing to APO but more on the Account Assignment Category in ECC and the Customer / Project Stock Segment in MRP.
Since we have a multiple level BOM and that the intermediate levels need to be associate with different WBS element according to major parts of the aircraft.
Here is an example :
Aicraft -- Has its own BOM with major parts as sub assemblies,
Major Parts -- Each Major Parts needs to be linked to a different WBS for costing purpose.
Minor Sub Assemblies -- All cost of producing the Minor Sub Assemblies should be tracked inside the Major Parts WBS.
Components -- All components costs and accounting documents should be tracked inside the Major Parts WBS.
We know that by using a project Network for the Aircraft Level we could create activities for each Major Parts with different WBS, but since we want to do planning in APO, we were hoping to not use PS has a scheduling basis. The integration of PS in APO is still not used a lot and the flexibility of Projects in planning processes is not great.
In resume, we are trying to create the demand from a Sales Order or CIR, but manage costs and accounting documents within WBS for all level in order to limit impacts on the Finance Department.

Batch wise actual material consumption and activity cost

hi
my client is steel industry, client requirement is heat wise actual material and machine cost. Heat is a batch number, how i can check batch wise actual material consumption and machine cost.
regards
imdad

Hi Imdad
Whats the batch definition in your case?? have you designed One batch per Prod order or One batch per GR?
If its one batch per Prod order - you can directly see the prod order.. however, chances are less for this as Steel company might be using PCC i.e. repetitive mfg
If its one batch per GR - Then you will have to track using the Confirmation no because each Confirmation will trigger the Goods Issue and Activity Confirmations...
Using Table AFRU - You can track the individual Confirmation no and also the Activity Qty confirmed....COSS / COSSD will have the Activity Cost
If any goods mvt are posted during the Confirmation, you would see a Mat Doc No populated in the field "Mat Doc"
Br, Ajay M

Costing Issues

Dear All,
             Please give me the solutions for below
u2022     We are having 2 co.codes (A=Biscuit,B=Bread), u2018Au2019 is manufacturing biscuits.
u2022     u2018Bu2019 manufactures bread, but here the issue is, such manufactured bread relates to u2018Au2019
u2022     u2018Au2019 issues material to u2018Bu2019, including fuel.
u2022     Remaining expenditure bear by u2018Bu2019(Production Happens in u2018Bu2019)
u2022     For such manufacturing u2018Bu2019 receives job work charges from u2018Au2019
u2022     Now the issue is how can we give profitability(profit and loss) of u2018Au2019 Bread(manufacturing in u2018Bu2019)How will be arrive the exact manufacturing cost of bread at u2018Bu2019
u2022     Coming to Co.code u2018Bu2019 How can we calculate Activity Cost(Manufacturing Bread)
u2022     Whether we can do production implementation in u2018Bu2019 co.code without material(Other than Bread Nothing this Co.code will do u2018Bu2019)
u2022     B.O.M is preparing in u2018Au2019 co.code,
u2022     How can we map this scenario:Co.code u2018Au2019 want to see cost of such Bread
u2022     How ca we map this scenario: Co.Code u2019Bu2019 want to see the cost of activites (machine cost, labour cost,setup cost)(remain that material from u2018Au2019 co.code including fuel and u2018Bu2019 manufactured bread)
u2022     Atlast u2018Au2019=Biscuit Division wants Finished Good of Bread Cost(Which is manufactured in u2018Bu2019)
u2022     u2018Bu2019=Bread Division Wants of Bread Manufacturing Cost(without raw material and fuel supplied by u2018Au2019=Biscuit Division) (Which is Manufactured in u2018Bu2019).
Another Issue:
u2022     While extending material from plant to depot(depot is also a plant)
u2022     Error message is u201CDO want to change the profit center, but in material stock still existsu201D
u2022     Plant (phillaur) and Depot(ahmadabad),Phillaur having one profit center,ahamdabad is having another profit center.
u2022     Here it should allow the material(plant-phillaur) to extend (depot-ahmadabad).
Another Issue:
u2022     In Vendor Line item Display FBL1N(Profit Center updation is not showing)
u2022     In Customer Line item Display FBl5N(Profit Center Updation is not Showing)
u2022     But in General Expenditure Fd10n(Profit Center is updating)

Hi,
The Co codes A & B can transfer the material using the inter comany transfer scenario which will rasie bill to the supply company & do the production further process in company B.
If the BOM is in the Company A then if the production is in B then you can transfer the price to other company using the functionality Transfer Pricing control.
Bu2019 receives job work charges from u2018Au2019 this case you create the A & B as vendor as raise the service PR for the job done by A to B & once raise the Bill do the SES for accept bill then invoice to A.
The pricing control can be determined seperately for both CC A & B.you can get the COGM for both the plant seperately.you define same material code for this & extend to two company code.
See when extending the material you can change the profitcenter for the extended plant,for ex Plant having X profit center & Depot can have Y profit center.
while creating the material master newly you have to maintain this data,if there is any stock exists you cant change the profitcenter,you have to make the stock to zero then change the data.then updtae the stock.
see you can maintain profit center seperately for two different plant it is plant dependent data only thing is no stock should not there.
It will show the line item posted to the vendor & customer in the FBL1N & FBL5N.select the layout from the transaction it will show all option of profitcenter,costcenter,purchasing document everything,select & check.
Regards,
Raj.
u2022 In Vendor Line item Display FBL1N(Profit Center updation is not showing)
u2022 In Customer Line item Display FBl5N(Profit Center Updation is not Showing)
u2022 But in General Expenditure Fd10n(Profit Center is updating)

Work Order & Activity Costs

Iu2019m extracting the underlying SAP tables so I can populate a Data Warehouse with Work Orders information and I have identified the following SAP tables:
u2022     Work Order tables: AFFL, AFKO, AFPO, AFRU, AFVC, AFVU, AFVV, AUFK, AUFM
u2022     Bill of Material tables: MAPL, MAST, MKAL, PLAS, PLKO, PLPO, STAS, STLO, STPO
u2022     Activity Cost tables: CKIS, CKIT, COST
u2022     Other tables of interest: CHRD, CRTX, CSLA, CSLT, CSSL, JSTO, PLMZ, RESB, S022
With the Work Order & Bill of Material tables I can identify the actual & target materials quantities & costs and I can also identify the actual & target activity / resource time spend. The problem I have is that I canu2019t detect the join between the Work Order tables and the Activity Cost tables, so there must be a table (or two) missing that creates this link.
Will you help?

Thank you for your assistance. Finally found the table that best answered my question in COEP.
Discovered lots of useful tables along the way.

Order settlement cost ( Activity cost) can we consider for financial report

I am in port Implemetation as per their senario financial reports based on cost center hierarchy,
for minisrial report requirement, they submitting Operational wise nothing but cost center heirarchy wise
for Pm order settlement Man hour cost based on kp26 computed cost converted actual at the time of confirmation. At the time of settlement to concern cost center is debited but primary cost booking for (man hour) salaries not deducting the primary cost element. Here is salaries and manhours both is apprearing in the cost center. My client requirement is based manour activity cost deducted in salary primary element, they want that process. After Order settlement based on amount we can deduct concern intial cost booking cost center to Order settle cost center.
Please suggest and PM order cost affect in cost center in primary booking and after order settlement
Please anyone resolve my issue
Clarification above issue
when we settle PM order Activtiy cost (Manhours) based on the salaried booked in primary cost element,we assume per hour man hour cost and specify in kp26 based on the activtiy cost planning system picks cost and at time of order settlement it will settle concern cost center.
intially we booked salaries in primary cost not thing but salaries a/c and once again we are settling the same salary assumption cost to cost center ...
when we go for cost center report Initial salary a/c booking Administrative cost center and now production cost center with activity cost with secondary cost element ....so problem is both cost centers are debiting for the same salaries( activity cost) but my client want cost center report all including primary and secondary cost element total balance.
Please resolve my problem it very critical
Edited by: msreddy08 on Sep 10, 2009 6:27 AM
Edited by: msreddy08 on Sep 10, 2009 6:39 AM

Dear Sudhakar,
salaries cost booked in administrative cost center with primary cost element salary a/c
but Activity type man hour is meant for per hour salary cost. we can specified in kp26
so when we take cost center report, we get salary amount and activity cost in admin cost center and product cost center for the same salary amount... for financial report requirment, if we use cost center report the salay amount appeared twice.
Please explain the activity cost against salay amount ..

Material Cost Estimate with Qty Structure - Activity Cost

Hi All
While executing the Cost Roll up (CK11n) Im facing a peculiar problem . I have defined an activity for which the rates are also maintained in KP26 against the Basic UOM(eg for 1000 activity 10Rs is the variable price mentioned) . When Im taking the min lot size say 1 for the costing run the quantity appearing against this activity is appearing in the lower UOM (taking actual gms but the value for this activity is appearing in rupees only calculating from activity price x this figure). This is making the whole activity cost on very higher side .whereas If I execute with the same factors but with big lotsize say 1000 the value for the activity is coming absolutely ok .
Pls confirm me how to put a check on the value of activity or uom of activity to evaluate the standard costing with minimum lower size also
Best Regards
Manoj

Im closing this thread

Active Cost Centers

Req : List of active cost centers in a month.
I tried doing this : ECC - Table CSKS - Contents
<b>CostCenter|ValidTo|ValidFrom</b>
AKST1|09/01/1999|07/31/2009
AKST2|08/31/2007|09/31/2007
AKST3|06/31/2007|09/31/2008
AKST4|12/31/2007|07/31/2010
Valid To & Valid From seemed not to be of any use in this context ( for filtering ).
When I do filter for valid cost centers in the month of 07/2007 by inputing - Valid From - 07/01/2007 | Valid To 07/31/2007, it doesn't do the look up if the inputed dates lie btn Valid From's & Valid To's Existing in the table. What it actually does is it just luks for 07/01/2007 if existing in all the Valid From dates available in the table & same for Valid To's....n so results no data for this instance.
Is there any workaround to get the list of active cost centers in a given period on ECC or BI side?

If you try the steps I gave beforee, it should work:
Try this:
1. Make cost centre as a info provider - RSA1 - Inset chars as info provider.
2. This makes cost centre as a reportable object.
3. Create a variable on valid from and give single values.
4. Same for valid to.
5. Use both variable in the query.
Ravi Thothadri

Settlement of internal activity cost to primary cost element.

Hi Gurus,
My client has a urgent requirement to settle the internal activity cost captured through Warranty order to a primary cost element (FI), also need an offsetting entry to another primary cost element against the first one.
Note: The value should flow to COPA also.
Please suggest the way through which it can be achieved.
Best Regards,
Ramakanta

When you do settlement of the order, you can post to FI all the balance of the order.
Just configure int he peroid end closing tab of the order the settlement cost element (P&L) and the g/l account (BS- offsetting)
For sure you can do this on a internal order, i don't know about warranty order (but shall be the same). Otherwise you can first settle to an internal order and then to the desired GL account.
Regards,
Paolo

Active cost center field in delivery item line

Thanks for this Forums.
I want to active cost center field in delivery item line.
how can I do it?

Hi,
In Del Doc.--> Financial Processing --> Account Assignment
This are Automatic entries, posted while delivery done.
As, you may find entries in Field: Profit Center (as Income posting from Internal order)
Similarly, Field: Cost Center may get hit by some entry if there is any subsequent Purchase Order, linked to your Sales Order. so, when you Accept services from your vendor, a delivery gets genrated to your Customer with posting expense in to the Cost Center.
However, I would suggest you to post the same query in to Forum: SAP Financials or wait for some other Senior Member's comment.
Best Regards,
Amit.

Activity Cost

Hi All,
         I have create a production order.In this order i have maintain activity type in routing. But The problem is when I go to cost itemization in the order activity cost show in 1/2 price. WHY?
         In KP26 i have maintain fixed price. activity type i.e. machine is used for 20 Hr. In KP26 i have maintain machine price is 10 Rs. According to that my cost is 200 Rs. but system show me only 100 Rs.
                 Thanks
                  Parag

Hi Anupam,
             I have created cost center, activity type, and cost element in month of octomber. thats why in kp26 at the time of assignment of cost center and activity type i have maintain according to fiscal year
                       version                  0
                      from period             7
                      to period                 12
                      cost center            1301
                       activity type           machine

Activity Costs Revaluation Using Actual Price

Hi,
Since we can revaluate the activity costs at actual price in the product costing module itself using t.code MFN1, why SAP has provided another option to revaluate acticvity consumption at actual price in the material ledger multi level price determination?
What is the difference between the both? If i had used MFN1, do i still have to use the revaluation of activity costs provided in the material ledger?

Hi,
However don't you think if the production order activity cost has been revaluated at actuals in the production order then during settlement it will carry the activity actual costs which will be shown in material ledger receipts category with the same actuals value for the activity costs.
So why should i be revaluating the activity costs again with actual activity price in material ledger once again? It sounds like a duplicate work to me under this scenario....

Active cost center field in FA master data (subnumbers)

hello,
I would like to ask you, what is the path in SPRO if I want to active cost center field for maintanancne in subnumbers?
Thanks
Hana

Go to SPRO-Asset accounting->Master data->Screen layout->Define screen layout for asset master data. There inside the screen layout tab go to Logical Field groups and inside Time dependent data you will cost center field mantenance.
This screen layout would be assigned to your relevant asset class in SPRO transaction OAOA.
Thanks and regards
Kedar

Actual Activity Cost

Hi Friends
For calculating the actual rate system take all the actual activity cost and divide it with actual quantity. I want to know how the system is calculating actual activity cost.
In KSII system will calculate the actual activity rate. What is the backgroung calculation. Or how to find out the actual activity cost per period is XXXX.
Regards
Jos
Edited by: Joji Jose V on Nov 15, 2010 3:58 PM

Hi Jose
1. Actual Activity cost means Actual cost posted with cost center and act type in FI postings / Depreciation postings
however, this is quite rare... To use this, Act Type must be switched in OKKP in Control Indicators
2. In absence of (1), Actual Actvity cost means Actual cost posted with cost center
3. If there are more than one act type in a cost center, then KSS2 would split the costs between the act types based on your Splitting rule in OKES... And then these costs would be divided by Actual Act Qty to calculate the Activity price
Regards
Ajay M

Plant Maintanence Order activity cost reverse concern primary cost explain.

Dear All,
In our senario we have PM module, they are preparing the
1repair
2 breakdown
3 shutdone order for specific cost incurred cost centers, Problem is
when we specify salary cost as activity cost in kp26, the same cost debiting the order specified cost center at time of order settlement
1. we are booking salary cost in administration cost center through primary cost
2. when we settle the PM order to concern cost center correspondant salary(primary posting) doesnot reverse.
it will apear in administrative cost center 100 (this is Primary posting)and PM work down cost center 50 ( this secondary posting)
suppose we want cost center reports actual Rs.100 (Primary posting)salay shows --- Administration Rs.100 and PM work center Rs.50 which are not corret against Rs.100
but my client want cost center reports for financial report requirment purpose...... Please suggest senario and how I over come this problem.

Hi Ranjan,
Booking of Administration cost center with primary posting, will reverse when we do PM order settlement to concern service cost center.
for example
A administration cost center incurred Rs. 100/- for (Salaries)
B Service cost center is settlement cost center of PM service Order Activity price is Rs.50/- which is based on administration cost center cost.
Now we go for cost center report, we mention A and B cost centers cost for the period A shows Rs.100/- with primary posting and B shows Rs. 50/- with secondary cost element as per our client requirement as per based on secondary posting, concern primary posting should reverse concern administrative cost center
I gone through the reports, primary not crediting the administrative cost center and secondary cost is debiting against service cost center.
Please suggest how I configure for primary reversing based on activity cost when settling service Order activity cost.
Thanks
M Srinivas

Activity cost impact on Target Cost issue

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