BOM- Routing- cost estimate

Hello
i want to find out the relationship between BOM - Routing and cost estimate.
i know what a BOM is, not sure how its linked to Routing and its compulsary
to have a BOM and routing to update the costing run with quantity structure?
can someone throw some light on this process and explain the flow.
I have read sap help links but didnt find them very usefull.
for testing purposes i want to update all the cost components manually. I need to have a materila which has all the cost components in the costing 2 tab in MM03
is this possible?
Thanks
Zaid

Hi
Create an LSMW for CK11N and enter the Prod version of your choice in CK11N.. No need to create a BDC...
Ideally, you should create a Proc Alt in CK91N with each Prod Version and Mix ratio in CK94 for such cases.... If you want to release cost with only one version and want the cost of other versions only for name sake, you can maintain the Mix Ration in CK94 as 100 0 0 0 i.e. 100 for One Prod version and 0 for the rest
br, Ajay M

Similar Messages

Selection of BOM and Routing in Cost estimate

Hi
I have an issue with the cost estimate run. We are using CK40n for cost estimate.
The selection method in MRP 4 is defined as 3 (only by prod version) and the version indicator is maintained in the costing views also.
When we run the cost estimate the system is chosing a different BOM and routing other than the ones defined in the prod version.
Following are the details of the prod version defined.
0010 Prod version
Lot 0 to 99999
BOM Alt 1 usage 1
Routing Grp 1234 counter 1
0020 Prod version has
Lot 0 to 99999
BOM Alt 2 usage 1
Routing Grp 1234 counter 2
0030 Prod version has
Lot 0 to 99999
BOM Alt 3 usage 1
Routing Grp 1234 counter 3
Ideally system should choose the first prod version.(alt 1 and usage 1 and Routing 1234 grp coutner1). This is not happening.
System for some reason is choosing the BOM with Alt 1 and usage 1 defined in 0010 prod version but the routing from a different prod version 0020 grp 1234 counter 2.
I have checked with all the relevant settings but i am not able to understand why this is happening.
This is not the same when i create a prod order. System chooses the first prod version when i create the order.
I have checked the priorities defined in the customising, and also the details in the costing varaint using CKC1.
What settings do i need to check to ensure that it works fine? Can you please let me know.

Vithal,
While doing the costing run, SAP checks if you have maintained the "Production version to be costed" [MARC-FVIDK] field in Costing View. It will use this Prodn Version for cost estimate.
If you have not maintained the prodn version field, then it will use the values maintained in the "Quantity structure data" section on costing view. i.e. it will use the BOM alternative..and recipe information from here.
If you have not maintained above values then system picks up the first BOM alternative (MAST table) and first recipe information (MAPL table) it finds for the material-plant combination.
Might be this is what is causing the problem for you. Also according to my knowledge SAP cannot decide the Lot Size for Prodn Version while doing the costing run. You need to tell the system what data to be used for costing.
Try and revert back.
Swapnil

Which bom & routing selection for costing

hi
i have 9 multiple BOM for a finished product and 1 routing.
i want to run CK11 AND CK24 for standard cost estimate.
my problem is that which bom & routing should be considered for std. cost estimate.
for each combination calculated std. price in CK11 is different.
how i should address this issue so that i can calculate std. price

Hi Rajeev,
If you have ( BOMs and 1 Routing that means you have 9 different Production version or not than create it.
Now How system will pick the Production version for Costing.
it Depends on
- Costing Lot size - Costing 1 of Material Master.
Now as per your Costing Lot size system will pick the nearest prod. version.And If there are more than one Production version found which match the costing lot size then it will pick the first one (See the production version sequence in t.code C223).
And depends on that Production version system will pick the BOM and Routing attached to it.
But if you want to run MRP as per your Selection then Select BOM and Routing in Quantity Structuer or Production version in
Costing Data 1 View of Material Master.
It will become default Selection for BOM and Routing for Cost estimate.
Regards,
Dhaval

Cost Estimate using Commercial Price 3 of BOM item

Dear Experts,
I am trying to create a cost estimate for certain materials using ABC costing variant. The objective is that the cost estimate should pick up Commercial price 3 from the material masters of the BOM item and then calculate cost estimate for the main product (The costing variant has been customized this way). However, for certain main products, the system is picking up the standard price of the BOM item and in some main products it it correctly picking up the Commercial price.
The BOM items used in the different products are different.
I am unable to understand this behaviour. If anyone has come across any such problem before, please help.
Regards,
Aditya

hi,
Check the Valuation variant and the strategy sequence whether you have selected the Commercial price 3 as the first priority and the Standard price as the next priority. If u dont want the standard price to be picked u remove this in the strategy sequence.
Further where the system is picking the standard price, possibly the commercial price 3 has not been defined in the material master. Possibly , the system is unable to find the commercial Price 3 and it is fetching the next Price as defined in the valuation variant which is the standard Price.
assign points if useful.
regards,

Material cost estimate using recursive BOM

Hello everybody.
I want create material cost estimate (CK11N) using a recipe with recursive BOM. When I execute the transaction CK11N the following message is display Costing of cycle 00001 does not converge
Do you know what is missing?
Thanks in advance.

Dear,
Message no CK740?
Please do check the link below......
http://help.sap.com/erp2005_ehp_03/helpdata/EN/f8/a3e333bf3d11d189900000e8214595/content.htm
and OSS note : 858384
Regards,
R.Brahmankar

Changes in poduction order,routing not updating in product cost estimate

Dear SAP Gurus,
i had done mto thru sale order and done some changes in production order,routing,and not updated the standard costestimate of newly updated can anybody tell me the procedure of updating the routings and production orders after production order released .
pls help me the standard cost estimate how to get updated while changing the routing,production order.
regards,
muralidhar putta

Hi Muralidhar,
Could you please share with us how your problem was resolved. It may help others too.
Thanks,
Manjula.S

KKF6N - Preliminary cost estimate- BOM explosion

Dear All,
When I try to cost a product cost collector on a finished product/production version with MF30 or KKF6N, the BOM is not exploded as if all the components were raw material - despite the BOM is multilevel. I don't understand why. Maybe i miss something...
On the other hand, when I cost the same finished product with CK11N, the BOM is exploded as expected.
The settings on cost variants and valuation variants used for cost collector and material cost estimate are similar.
Thank you very much if you can help !
Chris

Hi,
                                                                                The difference between CK13N / CK11N and KKF6N exists due to the method in which both of them calculate costs.
CK11N performs 'multi level costing' which means it considers the prices and the corresponding quantity structure for materials across the entire hierarchy of the BOM for the material and re-calculates it every time it is run based on current settings.
KKF6N performs 'single level' costing which means it considers only the price data for the input material and its immediate sub-components. It then displays the price according to the valuation strategy used in the costing variant.
CK11N also uses the valuation strategy, but the price is estimated based on a calculation of prices across the entire hierarchy of the BOM for the material also factoring in the quantity structure at the time the material is costed.
This is the reason why there is a difference in the price shown in CK13N and KKF6N, but it is the way the system is designed to work.
Kind Regards,
MLM

Order BOM Cost Estimate

I am working in an MTO environment i run order bom cost estimate immediately after creation of sales order. When I save the estimate, value against condition type EK02 gets update in sales order.
As far I know EK02 is a statistical condition, value in the EK02 is not used in price determination however condition type EK01 is used in price determination.
I want to understand that what happens when we save order bom cost estimate. And fields gets updated with this. And how the value in EK01 is used in price determination.

Hi
EK02 stores the Sales order cost estimate... The PGI and related goods movement happen at this value... This field helps you identify whether the PGI value posted in accounting docs is correct or not...
Regards
Ajay M

Cost Estimate on BOM set up with discontinuation group/Follow up group

Hi FI Experts,
Is there anyone there who has worked on BOM that consists of a material that has a followup material? Ex. BOX1 is to be replaced by BOX2 when BOX1 has no stocks.
It is giving us a wrong cost estimates because it still reads BOX1 instead of BOX2. Please help, im struggling with this. Please please!
THanks,
Keb

Hi Frnd,
Check the Production Version in material master.
and click on CHECK button.
also check whther u have assigned that BOM in production Version.
I hope this will solve ur problem
ASSIGN POINTS IF USEFUL
Regards,
Jigar

Alternate Bom for a finished product has huge varience in cost estimate

Hi all
I have created alternate BOMs for a finished material. One is local raw materials and another has imported raw materials. Goods are produced using both these boms but in one period i can release cost estimate of one BOM. Thats why there is a huge variance in cost estimate when alternate BOM is used for the material. kindly give me a solution as to how i can fix this issue.
regards,
shahzad

Dear,
Please refer this link for,
[Costing with alternative BOM |Re: Costing with alternative BOM]
One thing you can do it with split valuation with batch managment please take help from CO person.
Regards,
R.Brahmankar

BOM Cost Estimate for sales order items

Hi experts,
    Which data source could extract data created by CK51N (Order BOM Cost Estimate )? We need to get BOM Cost estimate (including input material and activity) for sales order items.
    The closest one is 0CO_PC_01, but it extracts itemizations for production order.
    It's urgent.Helpful answers would be awarded.Thanks.
Regards,
Aaron

Hi Henry,
   They even do not have Sales Order segment. How could I get cost estimate data based on sales order?
Regards,
Aaron

Routing is not pickup during cost estimate

Hi,
We have created BOM & Routing,
Issues During SCE System will not taking Routing,
Parameter taken in consideration
Configuration & Master data maintenance
1) In Material master Base UOM maintained is EA alternate UOM MLD
2) Activity rate we have maintained : KG / KW / HR
2) Routing requirement is MLD.
In Routing IF i Maintained EA UOM, System will take Routing for SC,
Client requirement :Mafg production in MLD and EA, Activity should be MLD Base
Is their any config missing for UOM
Could u tel me.
Thanks in Advance.
Regards,
VINU

Dear Vinutha,
If my understanding is correct then you have to first define all the alternative unit of measurement(like issuing unit,production
unit,ordering unit,purchasing unit) in the respective material's additonal data in the material master.( 100 Ea = 100 MLD - For
example).
While defining routing,in the routing header for the material mention the unit(MLD) in which you will be defining the
operation,operation timings.
Check with settings whether the system is picking the routing during SCE in CK11N/CK40N.If my understanding is correct then
there is no configuration settings related to the same.
Check and revert back.
Regards
Mangalraj.S

Cost component not splitting at the time of Rune the tine of Cost Estimate

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Hi,
We are in developing phase for Product costing for coal mine project ,
we have raise coal material with Non component BOM , and Routing is only one activity with 400- Raised Coal Qty-MT ,
We upload the plan with Production cost center -activity type and cost element ( as per cost component -we have 10 cost component as per below )
RM - Blasting
Production Overhead
Power - Main
Stores,Spare,Consum
Repairs & Maint
Lease & Hire Char-PM
Power - Auxiliary
Depreciation
Over Burden
Development
we done the plan for Amount and Qty by KP06,KP26 and update plan price but system not calculate the cost component splitting in cost estimate as per planning while only one item showing for all cost to Production Overhead cost component
Production Overhead cost component which assign the secondary cost element which is assign to activity type 400
can any one help me to how we can resolve this issue
Please find attached document

Hi,
Here I am providing the necessity and importance of splitting structure, will share the configuration steps once you go through the following and get the comfort level.
                  Expense Analysis and Splitting in Manufacturing Cost Centers
Introduction In SAP Cost center work as a cost responsibility center, where all the expenses and cost are stored and analyzed for the purpose of management decision making.
The cost could be fixed or variable in nature. The difference between variable and fixed costs can be made in various ways in product costing in CO module.
Fixed costs represent the static costs incurred by the organization, which doesn’t change on the basis on manufacturing activities, which remain constant irrespective of production activities like rent for the premises, salaries of office staff etc.
On the other hand, variable cost varies based on the level of production activities; if production activities increase then variable cost also increased like electricity consumes raw material charges etc.
However all the variable cost doesn’t vary in direct proportion by quantity of goods produced.
In this document will try to define; how the Expenses analysis and splitting of cost done in manufacturing cost centers.
From controlling prospective, fixed cost remain constant regardless of operating activities, but if these factor changes, variable cost will fluctuate.
Basically raw material costs represent variable cost, but in this document main focused will be given to distinguish fixed and variable activity cost.
The segregation between fixed and variable cost is optional and is derived from the configuration and master data configured in cost center accounting and overhead accounting.
Activity Price:
There are different methods that could be used in cost center accounting to determine the activity price. The simple way is the manually enter “Fixed” and “Variable” Activity cost (KP26).
However there are other methods used in Cost center Planning and Budgeting that automatically calculate the fixed and variable activity price.
Here the focused will be given on Planning and Budgeting activity and automatic calculation of plan activity rate in cost center.
This method aggregate planned costs by cost element and capacity by plan unit to calculate the activity price.
Activity independent costs are segregated among different activities based on Splitting Structure, while activity dependent cost directly used for the purpose of variable activity rate calculation.
Fixed Activity Cost:
In product costing all those cost, which doesn’t vary based on the activities in manufacturing cost will represent fixed cost.
In a manufacturing cost centers there may be two or more activities performed.
To calculate the activities rate, the fixed costs are distributed to various activities on the basis of Splitting Structure defined for cost center.
Variable Activity Cost:
Variable activity cost, which directly depend upon the activity type and fluctuate based on increase or decrease in manufacturing activities. In SAP variable activity cost are directly linked to the respective activity.
Activity Prices: Fixed and Variable Split
In Cost Center Accounting dividing the cost between Fixed and Variable requires appropriate split to be made in the cost entered for the activity. The process is described below:
i. Variable cost would be planned at activity level and expenses should be maintained at cost element in the manufacturing cost center by assigning activity and cost element combination.
In other word, the expenses should be planned on Activity type at the time of primary cost planning (KP06).
Then the variable activity rates are calculated on Total cost planned at Activity divided by Total number of activity planned at that cost center (i.e. capacity in KP26)
ii. Fixed cost would be planned at independent of activity type. These costs are maintained in KP06 at cost element level on manufacturing cost center.
Then the fixed costs are distributed on various activity types on the basis of Splitting structure defined at OKEW.
In Splitting Structure we define the rules, how the fixed cost will be distributed to Activities. For the purpose of this document, considering split of fixed cost on the basis of Capacity maintained in KP26.
Regards,
Pavan kumar Arvapally

Report for Cost Estimate

Hi,
Our client require a report for Planned Cost Estimate, where costing run will be on FG product and Client want Activity Hours and Cost for that FG product.
(for all the FG products we have multilevel BOM and Routing hence, Activity Hours are maintained at assembly level).
Regards,

As far as I know there is no report that gets you data for multiple materials at a time. You have to develop a Z report for this.
Logic is you have to go to KEKO and pick up the cost estimate and date for the particular material
and then go to KEPH table and pick up all the cost components for that material.
Then only you will have a report sapnning across multiple materials.
Revert back if you need more info.
Thanks
Naveen

Raw Material Cost Estimate

Hi,
I am trying to cost raw material.
1. I perform all the steps in product costing, assign condition type to origin group:
PB00 cond type to PB00 origin group
ZMAT cond type to ZMAT origin group
this is because I want to see the breakout of the PB00 and ZMAT.
I also specify to read the purchase info record price first in the valuation variant.
2. I set up the purchase info record with PB00 and ZMAT(% uplift).
3. When I run Ck11n, my cost estimate is not reading the Purch Info Record information, is reading the standard price info. I am not using BOM, nor Routing, just the purchase info record to cost.
What else is missing, why the cost estimate is not seeing the purchase info record information?!
Any suggestion greatly appreciated.
Thanks,
Alice

Hi Gulshan,
I did all that you suggested.
Let me list out all the steps I have configured, and see what else I am missing.
T-code OKTZ,
I created a cost component structure
structure    component    cost element
ZG             10-material    3500001234
ZG              20-Overhead 1100(2nd c.e.)
ZG              30-ZCDU       ?????
My question for the cost component structure here:
For component 10 - the material is for internally produced parts, and for component 30, I want to allocated the PIR condition type ZCDU to this cost component for purchased part ABC, what should I be using for the cost element?! for component 30? It can't be the same cost element as component 10.
I did all the valuation variant set up - using PIR, and then substrategy is condition type from PIR.
Assign the delivery cost set up as well,
PB00 assign to origin group PB00
ZCDU assign to origin group ZCDU
Created source list for vendor & material
so in my PIR, I created condition type PB00, and condition ZCDU.
PB00 = $2.00
ZCDU = $1.00
and when I run CK11N, I want it to pick up the PIR and roll up the cost to $3, and that should update the material master standard price, right?!
not sure what else I am missing that is not picking up the PIR.

BOM- Routing- cost estimate

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