Allocating Standard and Variances of Production Costs into CO-PA
Hi Experts,
I would like to ask you about the process of allocating eg. humal labour into CO-PA.
Lets have an example:
We have planned to spend 10 hours on some action. But actually we have spent 20 hours.
When we allocate our time from some PC, we have to allocate actuals, that means 20 hours, which will come into CO-PA online.
At the end of the period we run Production Order Settlement and find the variance.
What will now happen do distinquish between the planned costs and variances?
Thanks in advance for your answers!
Kindly Regards,
Radek
Hi,
I am not really sure about your question
We have planned to spend 10 hours on some action. But actually we have spent 20 hours.
When we allocate our time from some PC, we have to allocate actuals, that means 20 hours, which will come into CO-PA online.
At the end of the period we run Production Order Settlement and find the variance
The 20 hours will only flow to Production order and not to COPA online.
Whatever the difference between the planned actual vlaues in the cost centers, they will come a cost center variance report. It does not effect any where else.
But if there are any balances left out (difference between the total cost collect to the cost centers and the cost obsorbed to production orders etc), this values need to be assessed to COPA using COPA Assessment cycles
I hope i touched your question.
Please do let me know if your question is different. If it is different, please rephrase your question
best regards
Surya
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I have an issue reconciling variances in product costing when I run S_ALR_87013139 - Cumulative. For instance I am getting results like below
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Would also appreciate if someone could tell
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2. When is the target cost calculated? Is it only after the order is complete and variance calculation in KKS2. I also fing that whenever a production order is created I dont get target costs. Only planned costs are there.
Thanks for your help.
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Following are explanations for clarifications u asked for
1) Target costs = Actual qty delivered X standard costs ( as per standard cost estimate for the material). This means standard costs for actual goods delivered to stock. Planned costs means standard cost for planned qty of production order
2) Variances are calculated if the status of the order is either DLV or Teco and if material is issued and activities are confirmed. WIP is cancelled and variances are calculated
3) When u create production order - system only calculated planned costs of the order for planned quantities. Target costs are calculated only when goods are delivered to stock for the order either partially or full. Even if one qty is delivered to stock target costs gets calculated
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Dear all,
Please tell me the process in product costing by sales order.
In my client place, i have done the configuration but i dont know the process.
Please guide me.
Thanks & Regards,
ARHi,
Product cost by sales order is useful when a finished product is manufactured for a specific customer rather than for the normal make-to-stock inventory. You can use the Product Cost by Sales Order component in the following situations:
When you are manufacturing in-house with reference to a sales order in complex make-to-order production
When you are purchasing customer-specific trading goods with reference to a sales order and reselling them to your customers
When you are providing services whose costs are assigned to a sales order
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Product costing by sale order(urgent)
Dear all,
1. Please tell me all the configuration steps to do product costing by sale order.
2. Also please tell me how to test it after configuring.
3. Please explain me the end user part also.
I will award full points.
Thanks & Regards,
A.Anandarajan.Hi,
Product cost by sales order is useful when a finished product is manufactured for a specific customer rather than for the normal make-to-stock inventory. You can use the Product Cost by Sales Order component in the following situations:
When you are manufacturing in-house with reference to a sales order in complex make-to-order production
When you are purchasing customer-specific trading goods with reference to a sales order and reselling them to your customers
When you are providing services whose costs are assigned to a sales order
When you want to collect the sum of the actual costs incurred for the sales order item on the sales order item (standard cost of goods manufactured of sales plus variances) For detailed information, refer to the sections Valuated Sales Order Stock and Settlement in Product Cost by Order or Period. -
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https://websmp108.sap-ag.de/~form/sapnet?_FRAME=CONTAINER&_HIER_KEY=701100035871000437965&_OBJECT=011000358700003687172006E&_SCENARIO=01100035870000000183&
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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 -
Settle Production Variances to COPA- Cost elements and Value fields
Dear All,
I know this question has been discussed in the past, but I have one specific doubt regarding this topic.:
When assigning cost elements to variance categories in t-code KEI1, how do we figure out what combination of cost elements (in the top half of the screen) constitute Input Price Variance, Scrap variance etc (in the bottom half of the screen)? I know the net of the postings on those cost elements tells us what variances we are looking it, but how do we get the cost elements (group) for let's say, 'Input/Output Quanity Varinace or 'Lot size Variance' ?
Or is this a futile exercise? May be I should just create three types of variances: Labor, Machine and Overhead. And I know what cost elements (net of the postings) would, in total, make up the $ variance in each of those categories. I can then use them in my report painter reports.
Please help clear the fog for me.
Ajay?
Thanks a lot,
DeepakHi Deepak,
Welcome to SDN!!
There are 2 ways of updating variances in COPA... I Prefer the 2nd option always...
1. Category wise variances (Input Prc, Usage var, etc) - Here, create a Cost ele group, where in you include all the Cost elements that can be posted to the Prod orders
For the sake of simplicity, you can include Cost elements 1 to 99999999 in the Cost element group...
2. Cost Comp Structure wise variances -
a. Create as many assignment lines in PA Trf Structure as in your Cost Comp Str...
Eg: If your Cost Comp Str in OKTZ has Raw Mat, Labor, Overhead - Create 3 Assignments in PA Trf Structure..
b. Assign the same cost elements in the SOURCE as in the Cost Comp Str
c. Choose the radio button "Costs/Revenues" in your assignment line, instead of " Variance on Production orders"
d. Assign each Assignment line to a separate Value Field
br, Ajay M -
Hi Friends,
Could any one tell me the basic settlements done to COPA from Product Costing point of view and which tables will be updated at the periodic settlemnet of variences to COPA?
Thank you ,
ParthuHi
During settlement, variances are posted to CO-PA from the Production/Process Order/Production Cost Collecter at the same time that they are posted to the G/L. The fixed and variable portions of the variance are carried over into CO-PA with the same breakdown as the cost component layout that comprises the standard cost. Any characteristics that have been configured in CO-PA that are related to the product number are carried over for analysis, such as product number, product line, plant, and so on. This access allows the matching of variances with the products cost of sales.
The variances are posted to CO-PA in the period when they are incurred, not the period when the product is sold.
If you are using costing based CO-PA, the tables updated are:
CExYYYY, where yyyy = the operating concern/
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