Actual costing/standard costing

Dear all,
can anybody sugg me what is actual costing&standard costing.and what's difference between two.
regards
usha.

Dear UshaRani,
Standard Cost/Product Cost = Materials Cost(Raw Materials Cost Semi Finished Materials Cost)
Activity Cost(Operation Cost)
1.For all your ROH - Raw materials maintain price control indicator as V and enter the value as Planned
Price 1 and Planned Price Date 1 under Costing 2 View - Planned price tab.
2.For all your Inhouse manufactured semi-Finished(HALB) and In house manufactured Finished materials
(FERT) maintain price control indicator as S and dont enter any value directly in accouting view.
3.For activity's cost(Operation Cost) comes via ---> work centre in which the operation is performed.
4.A cost centre and an activity type where a rate has been maintained for that cost centre and activity type
(T code KP26) will be linked to the work centre under costing tab.
5.As per the operation time,the cost is getting calculated.
6.Overhead cost is the indirect cost which's spend during production.
7.So when the cost rollup is taken using T code CK40N (or else using CK11N estimating & CK24 for
marking and release) all this cost gets added and the materials standard cost is calculated and same is
marked in Costing 2 view under Current Planned price column.
8.Standard cost estimate is done for FERT materials so that automatically the system does for Semi-
Finished products also.
9.Actual Costing is nothing but the value of the materials( Raw-materials cost) when production
confirmation is made for the operation.
10. Say there's a raw material X whose planned price is Rs 10/,so while doing GR for this material Let's
assume for a quantity of 10 the value is Rs120/-,so now the actual value becomes 120/10 = Rs 12.
I hope this will help you to some extent.
Regards
Mangalraj.S

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Standard Vs Actual Cost report for Production Order

Hi Expert,
I have an requirement that i need report for Standard Cost (CK40N) and Actual cost (261 Movement) for multiple production order or Multiple Material.
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Regards,
Pranav

Hi Pranav
There are Standard reports
Option 1
You can use Product Drilldown reports in KKO0
For this:-
a. Do settings in OKN0 - assign a Cost Comp Structure and Choose Material group = Product Group
b. Run KKRV to collect data and then use KKO0 reports
I have replied this in SCN many times.. You can search here. Just google as "SCN" "Ajay Maheshwari" "OKN0" and you can see some posts answered by me
Option 2
You can use Summarization Hierarchy KKBC_HOE
For this
a. Set up Summ Hierarchy in KKR0.
b. Run KKRC
c. Run KKBC_HOE report
Br Ajay M

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Hi,
We are using 3 valuations (Legal, Profit Center and Group Valuations). In order to transfer standard and actual costs to COPA for all 3 valuations do we need to create 3 costings (total 6) for transferring standard and and 3 costings keys for transferring actual costing to COPA?
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Hi Ravi.
Very interesting question!
1: Ledgers in FI are not related with Material Ledger Valuation. EG, in FI you can have IFRS, TAX, and GAAP; and in ML You can have "currency/valuations" Legal, PCA / Group. Keep in mind this are different stuff.
2: In Material Ledger, you can valuate your stock according to different ledgers, with the bussiness function FIN_CO_COGM (Paralell cost of goods manufactured). The idea of this BF is have alternative valuations assigned to the principles (IFRS, TAX, GAAP), so in FI you can accomplish different Stocks, COGS and on accounts, based on different accounting principles. You can understand this as the brothers of FI Ledgers, in order to do product costing.
3: In PA, you only post (or transfer) one record. You have to decide if use "Local, Group, PCA or Paralell Cost of Goods Manufactured". (Im 90% sure based on lot of reading, maybe im missing somethings).
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Sir,
I ve to create standard & actual cost report for client in PP
But i cant gate table & field name for:-POWER & UTILITY,
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Moderator: If it's PP, why do you ask it on Conrolling forum? Anyway, a question likes this could not be properly answered

Hi
Check the fun modules
K_VARIANCES_PARALLEL_CALC
K_VARIANCES_HIERARCHY_CALC
K_VARIANCES_OBJECT_CALC
<b><REMOVED BY MODERATOR></b>
regards
Anji
Message was edited by:
        Alvaro Tejada Galindo

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

Actual and standard cost

Dear forum,
I would like to seek clarification.
Standard cost of a finish goods is getting from costing run. When it is sold, the cogs is a standard cost or it is actual cost?
If it is standard, what transaction code should I get the actual cost of goods sold?
Thank you very much
Srina

Hi Srina,
You can use Actual Cositng mainly to process Mateial Ledger, the result of actual costing also can be transffer to profitability analysis in month-end to be cheked and be compared.
best regards, Takashi

Standard and actual costing run

I am doing actual coting run ckmlcp every month end on last of the month. stadard costing run I am doing on start of the month on 1st day of the month before actual transactions taking place.
Here the problem is I already did the stadard costing and actual costing runfor april, now i want to do stadard costing today midnight 1AM for june and I want to do actual costing tomarrow evening 6PM for may.
April stadard price is Rs150 and current stadard price is Rs 160 beacause of 1st june costing run. If I will do the costing for May month now means (1st)tomarrow evening which stadard price it will pick in ckmlcp and varience calculated.

as cost estimate is run for the material in plant u can not get cogs at depot level.
Edited by: kumaraguru v on Jan 17, 2008 12:24 PM
Edited by: kumaraguru v on Jan 17, 2008 12:25 PM

JDE World / Actual Costed BOM ( not standard ) Manufacturing

Hello,
I was wondering if any of you knew if JDE had the capability to report an actual costed BOM.
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Thanks,
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Dear Janos Noll ,
Can you please share with me, what goes wrong for SAP B1 community members if SAP provides this feature in B1 ?
I believe SAP is intrested in SAP B1 Product Ehanancement, that is why SAP has created this forum upfront.
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When Customer is spending money on SAP brand name they must receive the same quality all to gather.
Hope you understand and support me on this DRQ. I strongly believe it is of utmost importance for SAP B1 community members that includes, Partners,Consultants,Customer and last but not the least SAP.
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Dear Experts,
Is there any standard tcode for bom wise target and actual cost as well as qty at line item level for the month.
there is one tcode s_alr_87013127 but user has to double click in order to get line item details.
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Dear experts,
I am still looking for a revert.
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Actual Cost of finished goods in MIGO

Hi,
The value of Finished material in FI Document generated in MIGO takes the (Goods Receipt Quantity) X (Planned/Moving average Price from material master), Where as it should take the Total Actual Price calculated after Order Confirmation Based on Actual Material Purchase Price & Actual Activity Posting Value.
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Present scenario
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>Rs. 10,000=00
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Thanks.

Hi,
What u said is right Mr Kapil.. See when u do GR From Production Order System Calculate Moving Price or Planned Price from
material Matser .
As per ur Reuirement u told it should calculate (Raw Material Price + activity+OVHD).
it is possible only when order quantity is less , suppose say your order qty is 150 mt per day and your Plant capacity is 500mt
per day production will be done in a half day, sale can be done on same day after Production with the formula what u told.
If suppose say , Your order is 2000 ton of Oil , it will take u to complete 4 days for your Total production as you told, GR should
be done on (Raw Material Price + activity+OVHD) formula, you dont know exact activity price for 2000 ton until u finish your total
production, at the same time until u do GR sales cannot be done. So in SAP Gr is intially done on Moving Average Or Planned
(Standard Price) , After totla Prodcution GR is Compared with Actual Cost(Raw Material Price + activity+OVHD)= :"Variance".
Plus are MInus is Reduced or added to Finished Goods Account or PP account during Settlement.
If any wrong Pls Correct me Experts,
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Posting Actual Costs at Material Level

Hi All
For our standard costs we will have BOM Components, Activities from Routings and additive costs. We also have activated Material Ledger and will use it for Actual Costing, the objective being that each and every actual cost will be brought to the SKU level. For BOM components and activities that is no problem since it will be done through settlement.
However for cost components that have additive costs how do we settle them to the material ledger? Do we need to do MR22 for difference between standard and actual? Is there a way to do this through a template allocation or some other allocation method?
Thank you

Hi
Lets assume, you have Std cost of 100 USD involving Material + Labor and an additive cost of 10 USD entered manually from CK74N...
During production order processing - You would issue material components and confirm Labor hrs... Say, this amounts to 120 USD as against the std cost of 100 USD...
However, in prod orders, there will be nothing posted against the additive std cost of 10 USD... If you wish, you need to post it either through template allocation from some cost centers or use some assessment cycle or transfer manually from KB11N or use a costing sheet
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Ajay M

Break Up of Actual Costs in a report for list of orders

Hi All,
SAP standard reports displays only the total planned & total actual costs.
Is there any standard report available which can display break up of planned & actual costs along with total costs, for list of orders (e.g: time, material and external resources consumption).
Thanks in advance
JK

hi
you can find the material cost,external service etc in the standard cost report itself select the change layout and select the items you want to display ,you can get the result
regards
thyagarajan

Report painter/writer for actual cost component split

Hello Gurus,
Any of you guys ever explored possibility of creating a report using report painter or writer that can give both Standard and Actual cost component splits in one report? Is it even possible without custom ABAP involvement?
Thanks
RG

Hi Raghu,
After your reply, I am getting a doubt..
Have you Activated Material Ledger? When you say Actual Cost Component Split, are you talking about it what you get in Actual Costing/Material Ledger?
If yes, then you can map your cost compnents for Actual Costing in the path SPROControllingProfitability AnalysisMaster Data Valuation--Setup Valuation using Material Cost Estimate -- Define Access to Actual Costing / Material Ledger
Further, there are no standard reports available in COPA. Try to build a report comprising two columns, 1st column with the value fields which are mapped for Standard Cost Components and 2nd column with the Value Fields which you have assined for Actual Costing under the above path.
You will be able to get the comparison...
Pls don't hesitate to call me for further assistance....
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Planned vs Actual Cost Report (with variance) for PM Orders

Hi Experts,
We are using the project system to collate order costs for annual shut work. We have a requirement for a report to show 25% variance between planned and actual order costs (maintneance order).
At this stage, we dont mind whether this is implemented in the the PM system, or the PS system.
This is a fairly basic / common requirment. Are there any standard transactions we could use to:
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3. Display a list of orders where the planned vs actual costs were greater than 25% and what the actual variance is for each order?
Thanks,
Maikel

Hi Maikel,
I have never seen any such scenario, but the best thing that can come to me is for the shut down activities you muct have created a Revision, then based on that Revision you can take a dump of all the orders with Planned and Actual Cost, in the excel, and there by putting the formulae you can definitely have the Varience report.
Hope it helps you.
Regards,
Yawar Khan

Breakdown of COGS into ACTUAL cost components

Hello,
I am looking to design a product cost report which gives breakdown of COGS into actual cost components. We use moving average cost for all materials (purchased as well as manufactured) in a make to order environment.
For example:
Sales order - Shipped material A at COGS $100.
Process order # 1 produced material A using input material B and a series of operations defined in a recipe.
Process order # 1 costs: Input material B - $70
Operations cost - $30
Process order # 2 produced material B using raw material C and a series of operations.
Process order # 2 costs: Input material C - $40
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So, the results should look like COGS 100 comprise of $ 40 material cost and $ 60 operations cost.
I understand standard cost estimates can be linked to CO-PA fields to get cost component structure. But, we don't use standard costing. We use CO-PA which gives COGS.
Is there something similar to cost estimate to calculate as above? Or, this is a custom development.
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What is COGS?

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