Additive Cost - Product Costing

What is the use of additive cost.
What are the configuration required to set up the additive cost.
Also pl explain one sample business scenarios where additive cost can be used.
please reply asap.
regards
abhay

You can also use an Additive Cost to represent the 'markup' for Inter-Company transfers, freight, special handling, etc.
CONFIG: Define Costing Variants:
IMG> Controlling> Product Cost Controlling> Product Cost Planning> Material Cost Estimate with Quantity Structure> Define Costing Variants (OKKN)
Choose appropriate Costing Variant. On u2018Additive costsu2019 tab, choose u201CInclude additive costsu201D in the field Additive Cost Comps. Also, flag the u201CInclude additive costs with stock transfersu201D option.
1. Create an Additive Cost Estimate using a u2018Vu2019 Item Category (Variable Item). Follow menupath: Accounting> Controlling> Product Cost Controlling> Product Cost Planning> Material Costing> Cost Estimate with Quantity Structure> Additive Costs> Create (CK74N)
2. Create a new Material Cost Estimate with Quantity Structure to automatically include the Additive Cost Estimate created in Step 2. Use menupath: Accounting> Controlling> Product Cost Controlling> Product Cost Planning> Material Costing> Cost Estimate with Quantity Structure> Create (CK11N)
The new Material Cost Estimate with Quantity Structure will have automatically pulled in the Additive Cost Estimate that you created in Step 1.
If you want to view the Additive Cost Estimate use menupath: Costs> Additive Costs (CK13N) within the Material Cost Estimate with Quantity Structure display screen.

Similar Messages

Use of template using CPT1 for charging an additional cost to the product

Hello,
I'm trying to charge an additional cost burden to the cost of my product for every base unit produced. (cost estimate)
I have created a template using transaction CPT1 with sender as Cost Center / Activity Type in environment 001
The activity type is measured in EA (Eaches) while we make our product in boxes (Product base unit of measure is 'Boxes') with say 20 Eaches going into a Box
I have maintained an activity price using transaction KP26 at say $0.55 per Each
I have assigned this template to my costing sheet , valuation area and overhead key using transaction KTPF
When I now cost the material for costing lot size of a 1000 boxes, it still charges the product with the activity price per Each ($0.55) instead of multiplying $0.55*20*1000 = $11,000 for a 1000 boxes
The formula I have chosen in the template against 'Plan quantity ' is in the attachment enclosed:
I need help with doing the right thing within the template to make it give a cost burden of $11000 for every 1000 boxes costed (costing lot size)

Didn't realize that you have to use transaction CPTD to charge template overhead to production orders. That's why it was not working. Now it is posting by reading the confirmed yield. But it is still not converting eaches to boxes using the conversion factor in the material master.
The formula I'm currently using in the template for actual quantity is as under:
OrderYieldConfirmed / AltQtyFactorFromMaterial( AlternativeQuantityUnit
= 'BX', Material = OrderMaterialNumber )
Please tell me what I need to do to the above formula to make it convert boxes to eaches using conversion factor in the material master?
A similar formula has worked beautifully for 'cost estimate'
OrderTotalQuantity / AltQtyFactorFromMaterial( AlternativeQuantityUnit =
'BX', Material = OrderMaterialNumber )

Additive cost not seen in production order and while settling hits PRD

I am using additive costs for my product costing via CK74n.
Cost estimate looks good since I have the valuation variants setup to include additive costs.
But when I see the production order that is being created, all others costs are being considered except additive costs. They are recognized but not as a line item instead as a variance. When I settle the order the costs actually hit price difference account and not even the GL account that I had assigned for the additive cost. SAP did not consider the cost as variance even if it was showing up as variance initially. This as I understood is partly because of the settlement rule that I have in place which tells SAP to go and settle on the material (which is standard SAP to do since I want all the costs from the production order to settle on the eventual material going into stock) so SAP went on to settling on the material. Since the material is set as standard price the variance is being booked as a price difference entry.
Ideally I would have expected the additive cost getting debited to the order and credited to the gl account that I assigned for the additive cost. The eventual cost (incl. additive cost) should hit the inventory.
Am I missing a step?

Hi Sapluver,
Appreciate your prompt response..Please see my response in italics
Few queries related to your post.
1. So your standard cost got two part, one with quantity structure ( materials, labor, OSC etc) which the system cost automatically and one manual part, which is your additive cost. While costing system picks up this manual part from CK74N.
I hope this part you got correct. Yes, the cost estimate is reading from both the qty structure and the additive costs and the cost roll-up is coming up correctly
2. Now in actual cost controlling, i think System is not sure how to valuate your additive cost actual part.I agree, the additive cost does appear in the cost analysis section of the production order but does not show up as a line item initially. Instead it comes up as a difference item right in the bottom of the screen after totals have been displayed without any line item reference. As if the system is not sure how to display the line item. Once I have done the material issuance confirmation to the order, the additive cost got picked up correctly as I have set it up in the cost component structure as material overhead but again shows up only as variance
Which method you used to debit your production order with additive cost, is it a normal journal entry or through some automatic posting through routing ( example OSC through Purchase order/Good Receipt).I probably need to understand your point more clearly? I am not manually debiting the production order at all for the additive cost. I was expecting SAP to debit the order the same way it does for overheads. Overheads too initially show up as variance but then when we run the overhead calculation KGI2 the overheads costs get debited to the production order. Was expecting similar behavior for additive costs. I am receiving the finished product from the production order into stock via MIGO goods receipt movement type 101. I was expecting the debit to happen perhaps at the time of settlement via CO88 but here the system posted it to the price difference account via account key PRD. This I understand the system did because the settlement rule is set to post all the costs on the material and the material has the valuation control as standard price; so the system is seeing the additive cost as a price difference hence posting it to the price difference account.
System is unaware of the additive cost from actual cost point of view, there is no specification to additive cost from costing variant for actual cost. So you have to debit the order with the additive cost part.So do I manually debit the order with the additive cost? What about the price difference additive cost sitting on the order? Would appreciate if you can tell me the process steps for posting this correctly
regards
Sapluver

Product calculation in combination with additive cost and mixed costing

Hello all,
I want to calculate trading good. I have defined a mixed costing for this article. Additional I had entered additive costs for the same article. When I run the calculation, it works only with the definitions of the mixed costing. Does the calculation take either the mixed costing or the additive cost?
Best regards
Jürgen

We also faced similar issue & had approched SAP for the same. As clarified by SAP, additive cost with mixed costing is not supported.
You may try using reference costing variant for this.
Regards
Rakesh Pawaskar

Additional costs while the product is at your warehouse...how to link?

Hello experts,
I was wondering if SAP lets you add costs to lots after they have been recieved to a particular warehouse.
Example:
We recieved a shipment containing 2 lot numbers. Once is in our warehouse, we performed an additional lab test to one of the lot numbers. So how do you vinculate this additional costs to the lot? What options do I have to affect the inventory value with the correct information?
Kind regards

Hello Gordon,
I have tested but landed costs is a complex alternative.
If I want to base the new landed costs on the original Landed Cost Document, there is a problem with the warehouse allocation. At the inital Landed cost document the warehouse was "In transit" but at the 2nd Landed Cost document it will be " General". however, if I copy from initial document I cannot change the warehouse.........
I tried as weel the inventory revaluation and think it wil probably be the best alternative. Is there any way to include the batch information on this document. Would you suggest a UDF?
Thanks

Additional cost for finished goods

Hi all,
Here we are following fifo method valuation. we are using SAP B1 2007B PL 04.
I have a doubt how do we account the additional cost like Rent, Electricity etc.
and What G/L Account need to specify at determination level. Here we are determing G/L account with account groups.
I have a document for that but that doesnt give me clear picture of additional cost and
G/L accounts.
Kindly explain me in details with respectives to G/L Accounts
Regards
Shashi

Hi Shashi,
static costs should be included in a BOM as standard cost items. This will add to the item cost of the finished product.
Have a look at our Wiki here (Expert on Phone Newsletter April 2008):
[How to include labour cost in a BOM.|https://wiki.sdn.sap.com/wiki/display/B1/Howtoincludelabourcostina+BOM.]
You can substitute other costs for 'labour'.
All the best,
Kerstin

To add additional cost to specific cst component in cst component structure

Hi All,
We have an issue related to Product Costing.
The requirement is to add 5% additional cost to one specific cost component in cost component structure related to material handling (now coming as variable cost). The assigned cost elements to this cost component have cost element category as 41 (overhead rates). The requirement is to display this 5% additional cost on the single cost component only in cost component split.
If anyone has worked on similar requirement, could you please let me know how to proceed on this.
Thanks in advance for your valuable feedback.
Thanks & Regards,
Darshanjeet Singh Sachdeva

Hi
Use CK74N.. You can add the value you want and also the cost ele of your choice.. Save it in CK74N
Now when you run CK11N, the cost you added in CK74N would get added to CK11N's own cost
br, Ajay M

Additional Costs on a Purchase Order

Hi Guys,
I wonder if anyone can help with this. We have a scenario where we are buying product from one supplier at a certain price and then paying an amount to another supplier for the use of their logo on this product. The scenario is a little like delivery costs in that we would receive an invoice for the additional costs which we would then want to post against the PO in order to influence the MAP for the product. For example, we may buy @ £10 each and pay £1 each for the right to use the logo. What is the best way of implementing this requirement?

Hi,
If you have one price condition for freight costs, for example, just go to the IMG activity and create another one by copy.
On the PO, add that same new price condition, and on the loupe enter the price condition and change the vendor.
Then, on the incoming invoice, choose 3 - Goods receipt + planned costs, and Layout - 7_6310 All information.
Cheers.

Import Duty 10% & Additive Cost

Hi Guru,
Is there possibilty to create % in additive cost. Eg Import need to be incorporate into the costing run of the raw material.
If can, please advice how to do it and cannot advice how to bring this cost into the coting run.
Hope to hear from you soon.
Thanks.
Regards,
Kulasingam Balasingam

Hi
A material cost estimate in which you can enter costs manually in the form of a unit cost estimate, so that the manual costs can be added to an automatic cost estimate with quantity structure.
To ensure that the additive costs are included, set the indicator Incl. additive costs for each valuation strategy in the valuation variant in Customizing for Product Cost Planning.
Specify the following through the costing variant in Customizing for Product Cost Planning:
o Whether any existing additive costs are to be included in cost estimates that you create with this costing variant
o Whether the additive costs are to be included when calculating overhead
o Whether the additive costs are to be included when transferring stock to another plant.
http://help.sap.com/saphelp_di471/helpdata/EN/7e/cb81fa43a311d189ee0000e81ddfac/content.htm
Regards

Additive Cost and Variance Calcultion

We started using Tcode CK74N to enter additive costs for certian materials. I did the configuration needed in the costing variant and added a cost element for additive costs in the cost component structure.
Everything is working fine, when we run CK11n for a material that already have an additive cost estimate, the additive costs are being picked up and included in the cost estimate. if we mark and release the cost estimate the additive costs are being reflected in the new standard, so far so good.
My question is around the variance postings that happen once we enter a production order and settle the variance at period end.
lets look at this example
Assume the following:
Material X current standard = $100
Order X quantity produced =10 cases
Material X NEW standard after negative additive cost =$80
Scenario 1 (no additive costs) the total debits (Actual postings form material consumption and activity confirmation) to a the order = $900
The total credit was $1000 (standard*quantity produced) , a $100 in variance will occur, and the posting at settlement will be to Debit the price difference account and to credit the cost of sales account for $100. This is the normal case
Scenario 2 : We included a -$200 of additive costs for that material in the standard (new Standard is 80) , the credit to the order will be $800 instead of $1000 , which will make the variance -$200 and the posting currently is to DR cost of sales and credit price difference account for $200
The business and Based on scenario 2 wants to automatically generate a posting to the ACTUAL side of the production order equivalent to the additional variance caused by additive costs? which will put the variance back at 100.
They would like to see a credit to the cost element used in the cost component structure to book additive costs. and the reminder of the variance 100 in our example should continue to be booked to the same price different account .
If this is possible and right to do? what account should be used to offset this credit that being proposed to the additive cost element ? Because I assume that a new FI document should be created to record the credit?
Thanks for your help

Hey,
It depends a little upon the settlement rule of your process/production order.
If you are settling to the material (MAT), the price difference will only be accounted for with one line, without separation between difference coming from additive costs and other differences.
If you are settling not via within CO, you maybe have the possibility the way you settle, but I can not see how you can use such a logic in a settlement process.
What I would do, is to create a custom reposting program, which reposts the additive cost difference separately, after which the normal settlement can take care of the remaining difference.
Regards,
Koen

Additive costs

Hi friends,
We have an issue related to Additive Cost. some costs which have been put live in the system since go-live have used additive costs to deliver the fixed ohd into the product cost instead of the purchase order condition type and
when conducting a cost roll up (CK40N), we were finding that we were getting 2 lots of additive cost because we have loaded new additive cost values from 1st may but we think the reason is that the we have loaded additive costs via the upload (CK74) but they are also pulling from the purchase order condition type so we are getting two lots of cost.
So we think the fix is that purchasing must update their condition types and we realised that the additive costs shouldn't have been loaded and we have deleted the additive costs because they never should have been loaded.
So advise me do we need to stop to upload or any other way to stop two times cost values.
Raju

Freight cost is added on to the basic standard cost of materials, which is fine. Basic cost of materials comes from regular cost estimate and the freight from additive. Now when a purchase order is raised, the vendor needs to be given a purchase order only for the basic price and not the freight. The material could be brought by own transport or the vendor charging separately for freight.
That being the assumption, the purchase order is loaded with a accrual type condition type for freight, which shall customized to create an accrual entry upon purchase. This could be meaningful to reduce/avoid the unwanted effect of distorted purchase price variance.

BOM- Actual Additional Cost

Hi Experts,
In production order :status - released : Summary Tab : actual additional cost field the additional cost is not shown. .
Looking into the Journal entries created from that transaction I can't find any entry generated out of that service or labor item. But the Unit price for that item is same as that shown in the field Product price of the BOM window.
Plz help
Regards
Aniruddha

Hi Experts,
I have similar problem. We have created 7 Labor type item for 7 BOM since we have different rate for each BOM item.
I already check the following,
Valuation Method = Standard
Item cost is not null we encoded the rate already
GL method is set by item group
WIP inventories and WIP variance is already set.
Issuance Method is Back Flush
My problem is 2 of of 7 BOM item has no additional cost n the journal entry (zero amount)when we received FG quantity . I already compare the master data , all set up is the same except for item cost which has different rate.
Please help ASAP

Condition type for pricing came from PC but has not included the additive cost record

hello all;
we have the pricing base for the sales order with the estimated cost from pc; our costing process has a posting record for additive cost is not included on the total cost is sent to the condition type EK02.
question: It is possible to include these kind of postings?, in fact, these record apear on the costing report as part of the cost of sales..
thanks in advanced...

Hi Francisco
Two things,
1. Your condition type must be EK01 if you wanna use it in
Pricing
2. Additive cost in CK74 is at the level of material and plant. It is not at the level of sales order
If you wish to add costs manually in sales order cost estimate, then use Unit Costing as the costing method in your requirement class
Or use Product costing as costing method and use a costing sheet
Br. Ajay M

Additive Costs: URGENT !!!!!!!

Hi
we are using Additive costs to be sent to O/H cost component, I have 3 questions,we load additive costs,
1) how can we fix an additive cost if it is not correctly loaded?
2) Do we have any report which shows all the additive costs for all materials?
3)in S_ALR_87099931 analyzing cost estimates ,for the materials which are having Additive costs,they are not showing up but these costs are mixed with O/H cost component and I can see in that column, is this because of the configuration in OKTZ ?
Thank you , your help hreately appreciated...
Paarthu
Edited by: Parthu Birampalli on May 1, 2008 4:26 PM

Parthu,
I'm hoping you are trying in your system and not totally depending on what you read here!
The table for cost components (including additive costs) is KEPH. Here's how:
From KEKO, put in the material no., and plant, and costing date, costing version, costing variant, etc.
You'll get the product cost estimate no. which is unique for each product cost estimate that you create in your system.
Use this and go to KEPH to get all the cost components that make up your standard cost. This will include the additive cost components. Pick up an example from your system to find out which additive cost components map to which fields in the KEPH table. You can then go ahead and use a small query (SQ01) with a join of these two tables, and pick up whatever you want.
Happy exploring!
Remember to assign points if found useful.
Regards
Gulshan

Use an additional cost in the cost calculation

How to make to use one or more additional costs during the calculation of the cost of a finished product
Could you help me, please.
Thank you.
Jean-Marc

You can use additive costs to add costs to a product other than the cost estimate.CK74n

Additive Cost - Product Costing

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