Activity Output prices/Product Costing
Hi Guys-
We have created-Machine Hours as activity type.But while doing KP26-how do arrive at unit cost/price of this activity type.ie-on what basis will this activity be costed?
Thx
Hi SR,
Let's go to the basics of Costing.
What is Machine Hours? Why have you created it?
Machin Hour Activity is created for measuring the cost incurred for running the particular Machine. As you must be knowing, each activity (Labour , Machin Activity) involves some cost for the organisation.
In case of the Machin Hr, the cost may be depreciation , consumables , cutting oil, electricity consumption required etc. You can add many more depending on the client requirement. Discuss with the team members also. They can give you info as per their requirement.
The total of the above cost for the company divided by the total machine hours consumed will give you the Machine Hour Cost.
Hope this helps you to understand the concept.
Regards,
Gov
Similar Messages
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How to Capture Logistics activity in overall Product costing?
Can anyone guide me and suggest me some ideas for capturing the logistics activity (both material inward and outward) to adding it to the overall product cost.
Sorry in fact, it was a typographical error. CO forum is the ideal forum to get suitable suggestions.
G. Lakshmipathi -
Hi All,
Iam new to controlling area. I want to know the entire process flow of product costing and what are journal entries reflect in this flow.
Thanks,
chanduHi,
The requirement of batch wise capturing of costs can be achieved by creating a separate production order for each batch of production. The production order captures all the cost, which are incurred during the production process. The details of each cost are as below.
1.For every batch of production a production order is raised in the production department. The production order contains the details of BOM and recipe.
2.The Bill of Material (BOM) details the raw material and packing material in the required portions that are required for production.
3.The recipe contains the detail process of production activity including resource such as manufacturing machineries, equipment. Each operation is assigned to its resource and each resource assigned to relevant activities such as Labour, fuel, power etc. (maximum of six parameters for each resource). Each resource is attached to a cost centre.
4. The recipe and BOM are copied to production order automatically when the order is created. The quantities of materials and activities are determined at standard levels (Planned costs).
5. A production order may contain several phases and each phase requires individual confirmation.
6.Once a phase in production process is complete the production person gives his approval by the way of confirmation.
7. At the time of giving confirmation he inputs the actual quantities incurred for material and activities. Using these inputs the Actual Cost can be arrived.
8. From controlling module, the planned rates of activities are uploaded on periodical basis. monthly or annually. The cost of material is taken at Moving Average price.
Once the batch production is complete the production person gives his final approval to the order as u201CTechnically completed (TECO)u201D.
9. At the month end / period end all these process orders are settled at the costing department.
10. The settlement results in calculating the overheads on predetermined rate and transferring the total cost of the production on to the finished product. The following entry is generated
Finished goods stock Account Dr
To factory output Account Cr.
11.The work-in-process is calculated based on the status assigned to production order. If the order has a status of u201Cu201CTechnically completed (TECO)u201D. the work-in-process is not calculated, but the order will be totally settled.
12.The standard cost of finished product is released at the beginning of every month. The standard cost is calculated based on the Bill of Material and recipe defined independently for each finished and semi finished product.
13.The variance is calculated on the difference of standard cost of material and the actual cost incurred in the production.
14. When the actual cost of power, fuel, Labour are accounted against respective cost centres in the month end, the system automatically determines the under absorption or over absorption of production costs. This difference cost will be apportioned to all the batches on a predetermined basis.
Revaluation of Production orders
Initially cost planned in cost centre accounting against activity types are used for valuating the materials that are produced. At the month end when actual cost are booked from financial accounting, revised activity price calculation is carried in cost centre accounting and with this prices the production orders are revalued. The revaluation is carried to the extent of difference between planned vs. actual activity prices. The revaluation production orders will not be carried, as production orders will be settled Immediately.
The actual cost of every batch is determined using above process. A report is generated to know the cost for each batch.
The standard cost fixed with each customer for each product is maintained in a separate database. The Costing department should compare these details with the actual cost of production and identify the difference. Accordingly a Debit/Credit note can be generated.
Once a standard cost estimate is created, it updates the material master with that rate.
Cost Object Controlling is an area in cost accounting that assigns the costs incurred in the production of company activities (such as internally manufactured materials) to those activities. Cost Object Controlling supports you in:
Reaching make-or-buy decisions
Determining price floors
Performing complex cost analysis (such as target/actual analysis)
Determining inventory values
Cost component Structure:
A control of how the results of activity price calculation or material costing are stored.
In Product Cost Controlling (CO-PC), the cost component structure determines the attributes for passing on the following costs:
Material costs passed on to material valuation as the standard price or inventory price
Product cost components are
Material
Accessories
Power
Fuel
Sal & wages
Depreciation
R&M/ Stores
Others
Admin OH
Standard Cost Estimates (Applicable for trading activity)
At the start of the fiscal year standard cost estimates will be released based on the planned raw material prices and planned manufacturing overheads. These standard prices are updated in the respective material master. These cost estimates are run only for make-to-stock materials.
The various components of cost are incurred in producing a product is captured. The following cost components are considered for materials cost, consumables and fuel, direct
Labour cost, utilities. Repairs and maintenance gases, depreciation, administrative overheads. A costing sheet will be created to capture administrative overheads cost which are not absorbed in the products as activity cost but are to be considered for inventory valuation In the first step planned activity outputs for each cost centre are planned, then planned cost that will be incurred against each activity type and primary cost element are planned, by carrying out activity price calculation the planned price of each activity is arrived. These activity types are entered in the work centers and routings. When cost estimates are created, system captures material cost from the prices mentioned in material master. The manufactured overheads are updated from the activity cost planned in cost center accounting.
Sadashivan -
Transfer price (Internal Reveue to be allocated to Production cost Center)
Hi Sap Gurus.
My cleint using tranfer price without activiation material Ledger. The internal revenue should not reflect in Fi. For that we have created ztable and we will be able to transfer the stock between profit center and we are getting internal reveue to the sending profit sender and expenses to the receiving profit center finaally balance become a zero,(we are maintaing same gl account while doing transfer price). Now expense in receving profit center should consider as part of produt costing. how to allocate this expense to the production cost center when there is no balance.
Example
SENDING PLANT 1 MATERIAL 123456 MM PRICE (10) TP 15
RECEIVNING Plant 2 Material 123456 MM PRICE (10) TP 15
While taking STO system is posting with material master price 10, but in the production if they are using that material system should take 5 also . 10 is the cost and 5 is overhead.
help me out?These are some few things I found out. Below is the result of a test I carried out when I tried to create a Settlement Rule for a statistical order.
Statistical order may not contain a settlement rule
Message no. KO188
Diagnosis
Order 12770, for which you are trying to create a settlement rule, is statistical.
System Response
Statistical orders cannot have a settlement rule because they cannot be settled.
Procedure
You could possibly remove the statistics indicator from the order (only if nothing has been posted to it yet).
I may be wrong but I have determined that, for production orders, you will have to use Standard Production Order Type and not a statistical order. The object class has to be production as well.
You will only be able to create a settlement rule if it is not a statistical order with the assignment category as ORD. Also, in your order type: Internal Order - Production, under general parameters, you will have to assign settlement profile 30 which is production order.
You may have to define planning profiles for co production orders, costing variant, valuation types. Maintain order types using KOT2. Example:
Order Type: PP01 Standard Production Order
Order Category: 10 PP Production Order
Number Range Interval: 1000000000--19999999999
Settlement Profile: abc
CO Partner Update: Semi-Active
Check of Classification
Next Maintain Settlement Profile: ABC Standard Production Order
Check off "To be Settled in Full
Default Allocation Structure: E.G: EB
Indicators: check off: 100% Validation. % settlement, equivalent numbers
Valid Receivers: 1 for most
Document Type: OS Order Settlement
Create Allocation etc.
Hope this gives you some pointers as to how to proceed.
Elias -
Actual Activity allocation and Planned and actual activity comparison issue in Product Costing
Friends,
I have tried to explain the issue i am facing currently under Product Costing......
1.Cost Component Structure
10 – Material
20 – Labour
30 – Diesel
40 – Electricity
2.KP26 – Planned under Fixed Price
Labour – 2.0 HR
Diesel – 1.0 HR
Electricity – 5.0 HR
3. When I run CK11N system collecting correct rates for all activities (Costing Lot Size- 1)
Like;
1 E LAB10 994310 2.00 2.00 AED 1.0 HR Labour Cost New
2 E DIE20 994320 5.00 5.00 AED 1.0 HR Diesel Cost New
3 E ELE30 994330 1.00 1.00 AED 1.0 HR Electricity Cost
4 M 1100000042 5.00 0.00 AED 1 PC RAW MATERIAL BAKERY CONSUMED
5 G 994201 0.00 0.00 AED Depriciation Cost
6 G 994202 0.00 0.00 AED Sales & Distribution Cost
13.00 AED
4.When I do process order Cost analysis for the produced goods it shows me different figures as my
BOM – RM is 1100000042 1 Quantity
Routing – All activity time is 1 Hr
40002 RAW MATERIAL BAKERY CONSUMED 1005/1100000042 5.00
40015 COST OF GOODS MANUFACTURED 1005/4400000071 13.00-
994310 Labour Cost New CBAKYPDDXB/LAB10 1.33
994320 Diesel Cost New CBAKYPDDXB/DIE20 3.33
994330 Electricity Cost CBAKYPDDXB/ELE30 0.67
2.67- AED
Note :- As per my understanding it should be
Labour Cost New 2.00
Diesel Cost New 5.00
Electricity Cost 1.00
5.Now after Process Order confirmation
40002 RAW MATERIAL BAKERY CONSUMED 1005/1100000042 5.00
40015 COST OF GOODS MANUFACTURED 1005/4400000071 00.00
994310 Labour Cost New CBAKYPDDXB/LAB10 4.00
994320 Diesel Cost New CBAKYPDDXB/DIE20 5.00
994330 Electricity Cost CBAKYPDDXB/ELE30 2.00
16.00
6.For Month end actual Activity calculation and load the activaty actual rates on product
I have configured the system in below manner
1 Work center = Mapped to 1 Production Cost center
Three Different Activities mapped to Secondary Cost Element with 43 Category
For Electrictity Activity assesment from Primary to secondary 1 more cost element created with
Category 42 Like; 994215-Electricity Cost All
One Actual Assessment has been configured to allocate Electricity cost from Primary Cost element to
Product/Order
7.Assessment Cycle Details
Controlling Area 1000 Controlling Area
Cycle ZELE01 Status Reviewed
Start Date 01.01.2014 To 31.10.2014
Text Elec. Cost Allocation to PROD
IND- Interactive
Assessment CEle 994215 Electricity Cost All
Sender
Cost Center CBAKYDXBAD
Cost Element 40204
Receiver
Cost Center CBAKYPDDXB
Tracing Factor
Var.portion type – Actual Activity
Selaction Criteria
Activity Type - ELE30
Receivers Tracing Factor
Cost Ctr Factor per 100
CBAKYPDDXB 100
8.I have received the actuall electricity bill for 1100 AED and the same has accocated through KSU5
After Cycle run when I follow below procedure
KSS2 Actual cost splitting
CBAKYPDDXB Production Dxb LAB01 183.33
CBAKYPDDXB Production Dxb DIE02 183.33
CBAKYPDDXB Production Dxb ELE03 183.33
CBAKYPDDXB Production Dxb DIE20 183.33
CBAKYPDDXB Production Dxb ELE30 183.33
CBAKYPDDXB Production Dxb LAB10 183.35
1100.00
Issue – System Split Electricity cost between all the activities assigned to Workcentres Cost Centre.
But I want to post that cost only to ELE30 Activity and not for all
When I RUN KSSI for actual Price determination system shows
OTy Object Name AUn Act Qty Total price Price (Fixed) PUnit
ATY CBAKYPDDXB/DIE20 Production Dxb HR 5.0 366.66 366.66 10
ATY CBAKYPDDXB/ELE30 Production Dxb HR 2.0 916.65 916.65 10
ATY CBAKYPDDXB/LAB10 Production Dxb HR 2.0 916.75 916.75 10
2200.06
2200.06 is almost double than 1100.00 which is actual electricity cost and the same is actually determined for all the activities.
After revaluation of the process order system posting below values
40002 RAW MATERIAL BAKERY CONSUMED 1005/1100000042 5.00 5.00
40015 COST OF GOODS MANUFACTURED 1005/4400000071 13.00- 13.00-
994310 Labour Cost New CBAKYPDDXB/LAB10 1.33 183.35
994320 Diesel Cost New CBAKYPDDXB/DIE20 3.33 183.33
994330 Electricity Cost CBAKYPDDXB/ELE30 0.67 183.33
2.67- 542.01
Production Variance is posted as 542.01….
I strongly believe there is some issue in configuration for activity allocation….
Main issue is
Point No. 4 – Different Figures in Process Order Cost Analysis
Point No. 7 – Assessment cycle run
Point No. 8 – KSS2 and KSII for Actual cost Allocation and Production variance…
Friends… I have tried to explain maximum please help me to understand the concept or missing configuration/Process.
Thanks
Sagar ChinchkarDear Rajneesh,
I have made the changes as suggested....
It seems now my Order Cost analysis and Product cost analysis are showing the same figures.
I have also maintained cost center splitting structure for ELE30 Activity allocation.
Structure Z1
Splitting structure for AT
Assignment 10
Electricity Cost
100
Allocation for ELE
Cost Element
994215
Activity Type
ELE30
Splitting Rule
100
Allocation for ELE
12
Activity quantity
Version 0
In my case actual activity confirmed is 3.1 for 2 orders in period 5
Order 1 - QTY 2
Order 2 - QTY 1.1
Total actual Electricity exp is 1150 in period 5
followed procedure to post actual activity on product is mentioned below
KSS2 Actual cost splitting - Result as expected 1150 for ELE30
KSII Actual price determination - Result as expected 3.1 actual confirmed QTY for ELE30 with actual price
QTY 3.1 Tot Price 3,709.68 Planned(FIX) 3,709.68 Per Units 10
(System is doing 1150/3.1*10=3709.68)
3.CON2 Actual revaluation of orders
Here while reevaluating the Process Orders system calculation is different
Order 1 - QTY 2 - 558.00
Order 2 - QTY 1.1 - 407.56
Total - 965.57
4. After CON2 system is changing the value of other activities like
LAB10 - Actual confirmed Value 10 to 0
DIE20 - Actual confirmed Value 10 to 0
Which should not be the case....
PL Act Var
40002
RAW MATERIAL BAKERY CONSUMED
1005/1100000042
10.00
15.00
50.00
40015
COST OF GOODS MANUFACTURED
1005/4400000074
26.00-
26.00-
994201
Depriciation Cost
WMBDDEP01
1.00
0.00
100.00-
994202
Sales & Distribution Cost
WMBDS&A01
1.00
0.00
100.00-
994310
Labour Cost New
CBAKYPDDXB/LAB10
4.00
0.00
100.00-
994320
Diesel Cost New
CBAKYPDDXB/DIE20
10.00
0.00
100.00-
994330
Electricity Cost
CBAKYPDDXB/ELE30
2.00
408.06
20,303.00
If we want to just post Electricity cost based on actual Electricity expenses and Labor and Diesel are based on planned activity rates.
What setting is required in current system.....
Million thanks in advance....
Regards
Sagar Chinchkar -
Activity Price in Cost Component Structure
Hi,
After costing run I have updated Activity Price in KP26.. I want to see latest activity price in Cost component structure e.g. Labour Activity and Machine Activity..cost for this a) Is it require re-costing run? b) how can we calculate activity price? e.g. total base qty/confirmed qty *no.of hrs. can you please corret me my formula I have maintain in KP26 capcity 500 and fixed price 10. I am able to see machine hrs. 6 in Resource data..
Thanks
SrinuHi Srinu,
Do you mean that, just after changing the KP26 values, u are expecting the same to reflect in your cost component structure of materials? KP26 is only to plan the price of an activity type in a cost center. This will be applicable for the future period. ie when operations are confirmed in production orders in future, this costs will be absorbed to the production order.
Use S_ALR_87013611 or similar reports for actual activity prices(debits) and actual activity quantities. Former divided by later will give you the actual per unit activity price for the last period.( in case of 1 to 1 relationship between cost center and activity).
Best Regards
Vimal -
Production costs for material with price control V
Dear all,
Can anyone pls tell me, how will the costing occur for a material produced in-house and having price control 'V' ? I am not able to see the target costs.
Also kindly tell me the settings to be done in CO, like target cost version, valuation variant, costing variant, etc.
Thank you,
ShrenikRather than giving my own versions I have compiled here SAP inputs. Pl let me know if you require any clarifications:
Costing variant has the following components:
<b>Define Costing Types
Define Valuation Variants
Define Date Control
Define Quantity Structure Control
Define Transfer Strategy
Define Reference Variants</b>
<u>Costing type:</u>
In the costing type, you define the purpose of a material cost estimate by specifying, for example, which field in the material master record the costing results can be transferred to:
Update Cost Estimate
Standard price Standard cost estimate (01)
Tax-based price Inventory cost estimate
Commercial price Inventory cost estimate
Price other than std price Modified standard cost estimate or
current cost estimate
No update Any cost estimate
Define Valuation Variants:
Define Valuation Variants
Here you create a valuation variant containing the parameters required for valuation of a cost estimate.
You also specify which costing sheet should be used to calculate overhead.
Valuation Strategies
Material valuation
Here you define the sequence in which the system searches for prices from the accounting view or costing view of the material master record to valuate materials. You can also access prices from purchasing info records and condition types.
For material cost estimates, you also specify whether additive costs can be added to the selected price.
With configurable/configured material components and with procurement alternatives, the sequence defined here is ignored if the strategy "price from purchasing info record" was selected, in which case that strategy is always executed first. For more information, refer to the SAP Library in the component Product Cost Planning under Raw Material Costing or Mixed Costing.
Activity Types / Processes
Here you define the sequence in which the system searches for prices in activity type planning or actual activity price calculation in Cost Center Accounting or Activity-Based Costing to valuate the utilized activity types and business processes.
You also specify which plan/actual version is used.
Subcontracting
Here you define the sequence in which the system searches for prices in the purchasing info record. In purchasing, quota arrangements are used to create a mixed price for materials that are manufactured with external vendors with parts provided by the customer. You can specify whether the quota of the individual vendors that are entered in the source list for the material to be processed should be determined through the planned quota arrangement or the actual quota arrangement.
External processing
Here you define the sequence in which the system searches for prices in the purchasing info record or routing operation for valuation of the external activities.
Strategy Sequence
You define the individual valuation methods for the valuation variant as strategy sequences. For the valuation of the material components you define a strategy sequence that reads the fields of the material master record in a particular sequence such as:
1. Planned price 1
2. Standard price
3. Moving price
The first price that is not zero is used to valuate the material component.
Target versions:
Target cost versions are used in the following ways:
In variance calculation:
To control which variance (total variance, production variances or planning variance) is calculated
To valuate unplanned scrap( scrap variance)
Unplanned scrap is valuated in the period-end closing activities when the variances are calculated. You can specify in a valuation variant for WIP and scrap which cost estimate you want to use to calculate the target costs for the valuation of unplanned scrap. You assign the valuation variant to target cost version 0 if you want to include it in the valuation of scrap.
When you are using a cost object hierarchy with active distribution, you use the target cost version to control which cost estimate the system uses to calculate the target costs, which are used as the basis for determining equivalences for actual cost distribution.
The actual costs collected at the level of the hierarchy are distributed across the orders in accordance with these equivalences. This distribution is proportional to the target costs for the cost element under which the actual costs are written. Actual costs for material costs are distributed in proportion to the target costs for the origin group, such as for the material, if you have entered an origin group in the costing view of the material master record and have set the indicator Material origin, for example.
If no target costs were calculated under this cost element, enter a cost element group in the target cost version. The actual costs are distributed in proportion to the target costs for this cost element group. This cost element group should be complete. If costs were updated under a cost element that is not in this cost element group, no distribution is possible.
You can calculate equivalences on the basis of SAP standard target cost versions 0, 1 and 3.
The standard system supplies the following target cost versions:
Target cost version 0 ( total variance)
The amount of the total variance generates a posting in Financial Accounting during settlement.
For this version, select actual costs as the control costs and standard cost estimate as the target costs.
Target cost version 1 ( production variance)
For this version you choose actual costs as the control costs and planned costs as the target costs.
Target cost version 2( planning variance)
With target cost version 2, the costs from the preliminary order cost estimate are interpreted as control costs.
For this version, select planned costs as the control costs and current cost estimate as the target costs. You cannot calculate planning variances for the product cost collector.
Target cost version 3 (production variance of the period)
You compare the planned costs of the period calculated on the basis of an alternative material cost estimate (such as a modified standard cost estimate) with the actual costs of the period on the basis of the yield delivered to stock in the period.
The base quantity for variance calculation is the yield.
For this version, you choose the actual costs as the control costs and the alternative material cost estimate as the target costs. To determine the alternative material cost estimate, enter a costing variant and choose a costing version.
The target cost version specifies which data is to be compared. The target cost version also specifies which variance variant is used and therefore which variance catagories are calculated. You can define a different target cost version for each controlling area -
Standar cost and product cost collector not updating the new price
Hi,
Created Standard cost estimate for one FG product and runned the product cost collector. Based on that consumption delivery everthing is made. Later on the work center and activity type changed in routing. Now i am trying to run the standard cost with new activity price (due to work center change) for the current period, system is showing only the previous rate(previous period) and it is not updating the new price becuase of already we have created the product cost collector.
Can any one give the suggestion for how to update the new price in standard cost as well as new price updation in product cost collector.
govind.Hi
1. If the original cost estimate was run in the current month - Then you cant re-release cost estimate unless you reverse it from CKR1
If the cost estimate was of previous months - then you can definetely release it again
2. In cost collector, you need to manually cost it again using the Preliminary costing feature... Your cost coll will then show 2 cost estimates i.e. One from Original date to current date-1, and 2nd from Current date to 31.12.9999
br, Ajay M -
Product Costing using Moving Average Price of FERT & HALB
Dear Experts,
My client wants to use Product Costing functionality by using Moving Average Price instead of Standard Price on Finished Goods & Semi Finished Goods and as per my understanding, SAP recommends to use Standard Price on FERT & HALB.
I know if we use moving average price instead of standard price than there will be no concept of variances. Can anyone tell me more about what are the pros and cons of using moving average price instead of standard price in Product Costing?
Thanks in advance.
Regards,
Zain BashirHi Zain
Let's take an example
You have V for Mat A
You create 3 Prod orders in a month
Order 1 - Qty 10 - variance 100
Same for Order 2 and 3..
At month end, you sold 20 pieces and 10 is in stock..
When you settle order 1, system will compare order qty and stock.. It will match I.e. 10 = 10... Hence variance of 100 will be posted on stock
Same will happen for Order 2 and 3... Ideally, only 100 should have posted on stock... but in this case 300 of variance will be posted on stock...
This is what the note mentioned by Arturo tells, but not so clearly
Hope this helps
Br. Ajay M -
Table for cost center / activity type prices
Can someone give me the table name where cost center/activity type prices are stored?
Regards,
Manoharhi,
for cost centers
table name = CSKSZ
field name = KOSTL
Activity prices
table name = RKPLN
field name = TKF
HOPE IT HELPS
regards
sayeed -
How to calculate actual activity price using cost center balance
I have a problem,the case is that: i have two pro.order. orderA settlement to cost center M; orderB is a standard pro.ord,and the work center of orderB link to cost center M. when i calculate the actual activity revaluation.the activity price update the PRO.ordA and B,and the cost center is zero.
when i settlement the order A,the cost center M is not balance,so i must calculate the actual activity revaluation again.
now,i want to calculate the actual activity revaluation from the cost center's balance,not the Dredit balance.so how can i calculate the actual activity revaluationdid you also assigned the cost centre to splitting structure?
what is not working? the cost are equally distributed on both activities? -
I need to be able to include a cost price when setting up a product, this is so when I export orders via Custom Reports I can, using a spreadsheet, work out the profit on each line item etc.
I have tried using a custom field but these are not included in the report generator.
Is this possible in BC?
Thanks
PaulGood thinking, but those options are not available in the Custom Report
- Customer Report. Therefore are not included in any export.
I need to export:
Invoice No, Product, Cost Price, Sale Price, Total Price.
I can export everything but the cost price as their is no field to enter it. -
How we calculate product cost without taken activity type
Respected sir,
pls tell me without taking activity type costing can we calculate product cost? is it possible through Overhead costing to calculate product cost?
or if we taken quantity base costing how we calculate each product cost?
please help me.......
Than'x
DhananjayHi
Without Activity type you cannot calculate Operation cost. It is not good practice. Why you want to do like this. Please explain.
I think Over head cost can be calculated without operation cost.
Regards
J. Saravan -
Product Cost under Moving Average Price
Hi Sapians,
Please guide me how to configure Product Costing & the users steps to test the same. Here client wants to work in Moving Average Price.
Regards,
VikasHello Viki,
This question can not be answered in this forum simply because its not issue based and we can't help you with each step. Yes product costing can be done using moving average price and you can do so in the Valuation and Account Assignment section in materials management. However, moving average is not a recommended approach for internally manufactured goods and it may result in allocation of the previous period's variance on the valuation of the products in the next period. You can find more on this on SAP Library and you can download the SAP's best practices configuration guides from the SAP website for help on configuring.
Kind Regards // Shaubhik -
Impleemt Product Costing with out Activity Based Cisting
Hi,
well, i am new bee in this arena.
please guide me, if product cost controlling can be implemented with out activity-based costing.
Regards
Ramakrishna ReddyDo you want to know: "Without ABC, or without activities?"
The answer in both cases is actually yes, but the implications are slightly different.
You use activities in CO-PC to allocate production-related overheads to a product, but use ABC to implement Activity Based management, which is not limited to Production.
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