After teco

dear gurus,
            after teco,i came to know the exact product costing is done by means of ck11n.after teco what is the flow of product costing.if any body explain it will be understandable for begginers?when and how is the settlement done?
           plz through some light on this issues
                                                   -gide

Gide,
Product costing flow,
CK11N (Product cost estimate)->CK24(Marking)->CK24(Release). Once release is done system updates the std cost in the material master. Here system considers BOM, Routing, Costing Sheet to calculate the cost.
How it needs to be costed and where data needs to be taken is through "Costing Variant" which inturn has "Valuation Variant".
Order Costing flow,
CO01(Order Create & release)->CO11N(Confirmation & Goods Movement)->CO02(TECO)>KGI2(Overhead calcuation)->KKS2(Variance Calculation)--->KO88(Settlement).
Here when the order is created system calculates the planned cost based on the "Target cost version" defination. Here you can define which would be the base for calculating the target cost and actual cost.
Incase if the target cost is defined as current Std cost then system takes the data from CK11N run for that material from the current period to calculate the planned cost for the order, and based on the actual data of cost (Good movement/confirmation/overheads) system calculates the delta. This delta cost gets settled to the price difference account and thereby balance order cost become zero
Hope this helps....Reward your points,
Regards,
Prasobh

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