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
Operations cost - $30
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.
Thanks in advance for any pointers / advice?
Sanjiv Agrawal

What is COGS?

Similar Messages

COGS at standard, broken down / cost components

Dear masters
I went through numerous post but could not find the answer
We here do not have COPA. However I wish to find a report that would break my COGS at standard, into the cost components.
(raw material, labor..)
Do you know of any such report?
We have a classic configuration, with COGS journal entry posted at standard cost when the goods are issued to the customer
(movemnt type 601)
KR - Loï

Hi,
I am not sure whether there is any report of such type.
But you can check the T.Code S_P00_07000139 (Stock Card and Inventory Material Report) which gives the price per unit. In your case it would be standard cost per unit of COGS.
The labour and overhead can be taken from the tables A014 and KONP by matching the condition record number. You can try to create a report through sqvi for the same.
Regards
Hari

(project system) do book confirmation amount as a actual cost

HI all
it is possible in project system when i confirm my activity then it does not book actual cost to my network activity.
because i need to show this confirm amount as only for information purpose....my clint requirement.
thanks

with the material ledger, actual costs are not only used to value the stock at the period end. You also have the possibility to revalue the cost of goods sold with the actual costs of production for the period.
The system takes initial stock, initial value, production of the period, actual costs of production of the period to calculate "cumulative stock of the period" and "cumulative value". The cumulative value per unit is then applied to all consumption of the period (goods sold) and the final stock.
Your only alternative to the material ledger would be to value yout finished goods at V-price, not S-price. The problem with this is that you don't necessarily have all the information about actual costs at the moment your finished product enters stock. For example actual activity prices can only be reasonably calculated per period.
Whether V-price is an option depends on the details of your scenario.
To me material ledger is the right way to value stocks and COGS at actual cost.

Actual Values for the Cost Components in COPA - TC - KE4R

Hi,
In TC: KE4R, we are maintaining the value field for each Cost Components from the Cost Components Structure.
And the Point of Valuation is 01.
My understanding is that, when we use this value fields in the COPA report, it will show the value of the standard cost estimate from the cost component structure and not the actual cost that has incurred during the transaction.
Am I correct? If not please correct me.
If yes, then How can I get the actual cost for these cost component structure in the value fields.
Please help.
Thanks and regards
Kami

Hi Ajay,
we have a requirement that we need details about what makes cost of sales numbers in COPA.
i know the our VPRS value is flowing into COPA as COGS but now we want that we should have ite detailed breakdown as per cost components.
can you please tell me detailed configuration steps to make this happen so that we can create a new COPA ke30 report which gives us the breakdown of the COGS numbers.
one more requirement is that for purchase parts our client is maintaing price PB00 condition and some other conditions like brokerage, freight etc in the info record for those materials and they want that all these conditions value should add up to show the COGS value for these purchase parts in the COPA report.. how do we do that?
please reply soon...
Thanks in advance,
Gurjit

Inter company COGS and Cost Components in COPA

Looked at so many threads but couldn't find a proper answer.
Scenario: Company B in Canada books a sales order, delivering from a Plant in Company A in US. US bills Canada at Cost + Mark up.
In US:
On Goods issue COGS is booked based on std in US (say $10)
On Inter company billing - (Cost + 20% mark up) Inter company receivable is $12, this triggers a payable on Canada side.
In Canada:
We can have $12 booked as COGS when Payable entry is created in Canada through IDOC. so Accounting is OK.
How can I have this COGS of $12 posted in COPA ? Somewhere I read to use two condition types for VPRS, but unfortunately we cant do that as we have revenue recognition activated. only VPRS condition values comes through revenue recognition lines.
Since Delivering plant in US has a Standard cost of $10, VPRS is $10 in sales order and COPA gets the cost components from US plant, which is not correct. How can I have the mark up of $2 reflected in Cost components in COPA ?.
Assuming that I create a standard Cost estimate in a virtual Plant in Canada for $12 with two cost components for $10 and $2. Is it possible to manipulate VPRS on sales order to point to standard cost from this virtual plant and create a costing key to bring the cost split from this virtual plant into COPA. Has anybody tried this ?
Thanks in advance.
Krishna

Hi Krishna
1. Does this material always necessitates a supply from US company??
If yes, then your task is easy.. Create a Costing Key and assign to such materials in KE4H... In this Costing Key, do not tick the radio button "Use Line Item Plant as Cost estimate Plant".... Instead, You can specify the default PLANT to be used for reading the Cost Estimates in the field "Specify Cost estimate PLant"
You can use the above solution in case you go with Virtual Plant also
2. Are you saying that the VPRS in Sales order punched in Canadian comp code is 10 USD because the Delivery Plant is in US comp code?
I dont know how does Revenue recog behave in your case and when does VPRS (COGS) flow to COPA.... As you said, VPRS gets the feed from RR, so will manually manipulating the VPRS in sales order help you??
Anyways, the 2nd solution is as below... Few companies have used it
There is an output type in SD called RD04... I may not be fully right here, you can take it as RD0*... Ask your SD guy to identify the right output type
Using this, When you do the PGI in Canadian Comp code,
................. All this happens in background automatically...............
you can create a Virtual STO on USA Comp code....
USA does PGI and the stock virtually comes in Canadian Comp code
Then PGI happens from Canadian Comp code
................. All this happens in background automatically...............
This is a change in your process... The delivery plant for all practical purposes becomes Canadian Plant (only on paper)... Your Physical process can continnue as Delivery from USA...
This solution was adopted when both the companies were in same country.... Check with your business how far is it possibie for you
3. Last option would be to use valuation exit COPA0002.... I dont know how you would use it considering you have RR in place....
Be very careful in doing this
br // Ajay M

Actual Cost Posting Into Project

Hi,
I need clarification about actual cost flow into Projects in a typical customer project scenario. The business process is as follows. Projects include engineering, procurement & manufacturing of equirpments. ROH items are procured from external vendors & issued to HALB / FERT for in-house manufacturing. Purchase orders are being created w.r.t. WBSElements & same for production orders also. Please suggest me what will be flow of actual cost posting into WBSElement in this process. Is there any configuration required for this.
Thank you in advance.
Regards,
Jimmy

ROH items are procured from external vendors & issued to HALB / FERT for in-house manufacturing
You have to use the MM Purchase order functionality, make GR to inventory and issue to the production orders.
Purchase orders are being created w.r.t. WBSElements & same for production orders also.
Ideally you may be better off in recieving, storing and issuing to WBS or production orders
Please suggest me what will be flow of actual cost posting into WBSElement in this process.
You can create WBS for capturing all engineering costs. Procure materials and debit WBs for actual consumption. Create production orders for manufacturing equipments and settle them to the WBS elements.
Is there any configuration required for this.
In order to settle the production orders to WBS, the settlement profile assigned to the order type shall permit WBS elements,

CO-PC Cost components are not assigned when actual cost was posted

Hi Expert,
I estimate material cost by Tcode CK11N, the result is cost components were assigned to plan cost. It's okay. But, I have a problem when posting actual cost.
After actual cost was posted by confirming backflush, I run Tcode KKBC_PKO to check again, but Cost Component field is not assigned to actual cost.
Please tell me the reason.
Regard,

Hi,
Thank for your answer.
I will check Cost component Structure, and ensure that all cost elements were assigned.
Additional, cost components were assigned to PLAN cost, but not assigned to ACTUAL cost.
Do I have to configure something more?
Regard,

KSII, Can FI postings flow into Controlling actual cost splitting.

Can FI postings flow into Controlling actual cost splitting and actual price calculation. I am trying post FI documents(FB50,FB60,FB01) with cost elements, activity type, quantity and cost center combination. I am able to post a document and then I do all the KSS2, in KSII is not able to show me that posting. I need to know, is it possible to move from FI to CO in tcode KSII , if yes let me know i am missing something. and i am getting an error message
Message no. KP250
Diagnosis
The plan or actual activity for cost center , activity type is 0. However, costs were planned or posted in period(s) 2.

Hi,
As you know, the system splits all activity-independent costs to the activities according to the following three step logic:
-split based on target costs
-if not possible split by splitting structure
-in the last step if the above two were not possible split by equivalence numbers set in transaction KP26
In your case, if there is no actual quantity for the cost center, then the system will split by equivalence number. Therefore please make sure, that the cost center has actual quantity.
Further information is also provided in note 772794.
regards
Waman

Product Costing: Actual Cost by Component

Hi SAP Gurus,
Products are manufactured in plant X, and have all the standard cost components (MP, DL, FOH, etc.) that one would expect of internally-manufactured skus. Traditionally, these products were shipped from Plant X to Plant Y and then to Plant Z. Once sold out of Plant Z, the actual Cost of Goods Sold (COGS) in the system likewise includes costs for MP, DL, FOH, etc.
However, last year we started also selling product directly from Plant Y. On Looking in ZCO_ACTUAL_COST(Actual Cost by Component), we see that, when sold, a given SKU is treated as a purchased finished good. That is, all of the standard costs & variances associated with the sku are aggregated into Purchased Finished Goods, a materials account. Because SAPu2019s actual cost has zero for all other line items (i.e. DL + FOH), the system generates favorable variances that eliminate these standard costs.
Please note that the issue is not standards (which appear to be fine) but actual cost allocation upon sale of the product.
Summary : The issue is that product sold out of Plant Y is incorrectly treated as a purchased finished good, instead of as an internally manufactured item.This is an issue because our materials costs are then overstated and other costs are understated
How to show the product sold from Plant Y as internally manufactured Item. (with Cost Components M+P, DL.FOH etc) like how it was showing for product sold from Plant Z?
Regards
Jaswanth

Hi Ajay,
In the material master for the material, I verified that the Price control is set as S( Std price) for both the Plant Y and Plant Z.
And the issue here is with the Actual Cost component and not the Std cost component. Can you please clarify where in MRP view for Plant Ywe need to set the indicator as transferred from Plant X.
Also I verified that the valuation class for Plant Y and Plant Z is different, ( For Plant Y it is set as Mfg Fin goods and for Plant Z it is set as Purchased Fin goods). Is the Actual cost component split has any relation with this Val class setup.
This is how the Actual Cost component looks
Mat No   Plant   Raw Mat Packaging Mats Pur Fin Goods Direct Labour FOH
   A          Z         XX              XX                     XX                         XX            XX
   A          Y           0                 0                     XX                          0                0
All the cost for Plant Y is rolled to Pur fin goods.
Kindly give your inputs
Regards
Jaswanth Kumar

Actual cost component values

Hi
We are facing an issue that actual cost component values in our system are not calculating correctly. We consider that there might be difference in our understanding regarding the calculation of actual cost component values.
Therefore I want to understand that how actual cost component values are calculated in SAP Material Ledger. I will appreciate if anyone can elaborate this with example and formula, used for calculation.
Regards

Hi Saad,
Please find below about the actual cost calculation in ML.
In ML single -level and multi-level material settlements are available. Multilevel price determination calculates the periodic unit price for a material. The standard price, the single-level differences cumulated in the period, the differences between planned and actual prices, as well as input material differences (multilevel differences) are all taken into account.
The material price calculated in multilevel price determination can be used for inventory valuation.
The actual price for each material can be updated to the material master for the closed period.
-During price determination, the system carries out the following calculation:
=>Daily Transaction
1) Purchasing XYZ Qty 20 Std : 10, Actual : 11
   Dr) Stock XYZ 200                   CR) GRIR 220
Purchase price differ XYZ 20
2) Purchasing ZYX Qty 20 Std : 20, Actual : 22
   DR) Stock ZYX 400                   CR) GRIR 440
Purchase price differ ZYX 40
3) Good issue XYZ Qty 15 Std : 10
   DR) Material cost XYZ 150               CR) Stock XYZ 150
4) Good issue ZYX Qty 15 Std : 20
   DR) Material cost ZYX 300               CR) Stock ZYX 300
5) Good receipt 234 Qty 15 Std : 40
DR) Stock 234 600                    CR) Clearing 600
6) Good delivery 234 Qty 10 Std : 40
   DR) Material cost 234 400         CR) Stock 234 400
7) Good receipt 123 Qty 10 Std : 50
    DR) Stock123 500                    CR) Clearing 500
8) Good issue 123 Qty 5 Std : 50
   DR) Material cost 123 250         CR) Stock 123 250
9) Good receipt ABC Qty 10 Std : 60
    DR) StockABC 600                    CR) Clearing 600
10) Sold ABC Qty 5 Std 60
    DR) COGS 300                          CR) Stock ABC 300
=> Monthly Material Ledger Closing
1) Single-level price determination
   DR) Stock XYZ 5 ( Current Stock 5 / Total Purchase Qty 20 * price difference 20)
   CR) Purchase price differ XYZ 20
*Transfer price difference to 234 15 ( Good issue qty 15 / Total Purchase Qty 20 * price difference 20)
    DR) Stock ZYX 10 ( Current Stock 5 / Total Purchase Qty 20 * price difference 40)
    CR) Purchase price differ ZYX 40
*Transfer price difference to 234 30 ( Good issue qty 15 / Total Purchase Qty 20 * price difference 40)
2) Multi-level price determination
    DR) Stock234 5 ( Current Stock 5 / Total Good receipt 15 * price difference 15)
    CR) Transfer price difference to 234 from XYZ 15
*Transfer price difference to 123 from 234 10 ( Good issue qty 10 / Total Good receipt 15
       * price difference 15)
    DR) Stock 234 10 ( Current Stock 5 / Total Good receipt 15 * price difference 30)
    CR) Transfer price difference to 234 from ZYX 30
*Transfer price difference to 123 from 234 20
        ( Good issue qty 10 / Total Good receipt 15 * price difference 30)
    DR) Stock 123 15 ( Current Stock 5 / Total Good receipt 10 * price difference 30)
    CR) Transfer price difference to 123 from 234 30
* Transfer price difference to ABC from 123 15
            ( Good issue qty 5 / Total Good receipt 10 * price difference 30)
    DR) Stock ABC 7.5 ( Current Stock 5 / Total Good receipt 10 * price difference 15)
    CR) Transfer price difference to ABC from 123 15
*Not allocated price difference 7.5
            ( Sold qty 5 / Total Good receipt 10 * price difference 15)
3) consumption revaluation
         DR) COGS ABC 7.5
         CR) Not allocated price difference 7.5
=> Current Actual Stock Amount
   1) XYZ Qty : 5 Actual Amount : 55 (actual price : 11)
   2) ZYX Qty : 5 Actual Amount : 110 (actual price : 22)
   3) 234 Qty : 5 Actual Amount : 215 (actual price : 43)
   4) 123 Qty : 5 Actual Amount : 265 (actual price : 53)
   5) ABC Qty : 5 Actual Amount : 307.5 (actual price : 61.5)
I hope you understand the process of actual cost cal in ML.
Regards,
chandu.

Actual Cost in Valuated Stock

Dear PS experts,
     I am facing an issue in case of actual costs in 'valuated project stock' scenario.
      The scenario is as following:
   1. A material(assembly) is attached to network having planned costs as 100 Euros.
   2. The planned costs for project is also now 100 Euros.
   3. This material is assembly made from using 2 materials.
   4. The assembly is made by subcontractor.
   5. The breakup of the costs is 80 euro for 2 material components and 20 euro as subcontracting charges.
   6. When I run MRP and covert a req. to PO, the commitment is 20 euro for subcontracting order and 80 euro for material components PO.
7. After I receive the 2 material components in stock, the actual cost(statistical cost element is hit) for project becomes 80 euro.
8. When I send these components to the supplier and he converts it into assembly material, at GR the entries are like this:
          a. Commitment is reduced of 20 euro, actual cost is incurred for 20 euro for subcontracting charges.
          b. The consumption is booked for 2 components(movement type 543), actual cost incurred is 80 euro.
             So total actual costs at this stage is 100 euros.
9. Now the assembled material is issued against network activity ( movement type 281 Q), this again updates the the consumption at project with value 100 euro.
   In this way, I am seeing the actual cost at project is 200 euro. I think it is not correct, does anybody have any opinion on this. I am not able to understand if it is related to valuation categories.
If you are having any clue about it, please let me know. Thanks in advance !
Regards,
Mahendra Dighe

Hi,
I hope this scenario clarifies your problem.
assly- X- 100
material A- 40
Material B-40
Sub contracting charges20
MAterail A & B came to stock (project stock) so inventroy 80 INR(statistical)
now subcontracting PO for 20 INR
you can not issue project stock to subcontractor so you have to transfer A & B to plant stock. then do 541 for subcontracting
now in project you are having actual -0 and commitment 20
when you confirm subcontract PO then material X with 100rs will come to the stock. this will reflect as 100 INR in project as an inventory. just check cost element report.
when you issue it to network then inventory become zero and actual consumption shows you 100 INR again check yourcost element report.
i think this is how subcontracting works... lets wait for other experts comment.
I dont understand why you are doing 543 movement ( goods isue for sale order)?
venkatesh
Edited by: venkatesh kulkarni on Dec 3, 2009 8:38 AM

Actual Costing / Material Ledger - Component values transfer after movement

I executed a production order with several cost components, as Labor, Machine HS, after the settlement of the production order this cost where allocated into de CKM3N components. In addition to this, I executed movement 412 Q (Plant Stock to WBS Stock) for the material and the component values didnt pass to the material / PEP. I executed CKMLCP to Multilevel price determination. Can anyone help me with this?
The original material kept the cost split values, but the Material / Pep didnt. (the material code and plant didn't change)
Regards

Hi ,
Welcome to SDN ..
Its not a ML issue , but its a MM issue..
Movement 412Q is a transfer from plant stock to project stock. The material quantity gets reduced from plant stock and increased on project stock. The material value stays on the inventory account (so you won't see any actual costs associated with this transaction). ..
After you do a 412Q you can to a 221Q to issue the material from your project stock to the WBS. This will reduce the quantity in your project stock segment. The material value is credited to inventory and debited to material consumption expense(actual cost on the WBS).
The above applies to valuated project stock only. An issue to non-valuated project stock is treated like an inventory transfer from the logistics point of view(quantity is moved from plant stock to project stock) but like a consumption from a financial point of view(reduce inventory, increase expense).
Since, your Project Stock is not consumed.. CKM3N is not reflecting any consumption. Please use the movement type 221Q and i am sure your issue will be solved..
Please revert back for any further clarifications
Regards
Sarada

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
Regards
Ajay M

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....
Srikanth Munnaluri

Actual Cost component split - Per PO

Dear ML Experts,
We have activated Material Ledger and Actual costing/ Actual cost component split in our implementation. The standard cost is based on delivery costs and there is no manufacturing involved. In order to test ML, we created some POs and did a GR and IR for those POs. When I look at the Material Price analysis on the Price Determination Structure View, I can see the Price differences per transaction (Goods receipt, Invoice receipt).
But when I go to the Cost component View (Actual), I cannot drill down into the individual transactions. I am able to see the actual cost component split only at the summarized level across multiple transactions. I can see the category Purchase Order under Receipts, but I am unable to drill down to see the actual cost component split for the individual transactions (goods receipts, invoice receipts). Did I miss anything on the configuration? The client wants to see the price differences per cost component per transaction and actual cost component split per transaction.
Is it possible to view this information using standard configuration? Would I have to change the controlling level in order to achieve this?
Can you please provide your advice?
Thanks,
Balram

Hi Balram.
If you have access to an IDES system, you can see a Cost Component split like this:
As fas as I know, this is only for educational porpouses. In the standard System, its not recomended have the detail of the split per movement, due to the huge amount of data genereted. There is a Flag that control this, in a Txxx table (i dont have access to the system right now).
If you really want this functionality, write SAP in the marketplace, and I guess their response is exactly what im saying.
Arturo.

Breakdown of COGS into ACTUAL cost components

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