Cost capture

Hi
can any one explain how cost is captured in producing a finished product from raw material step by step please

Dear GB,
Product Cost = Materials Cost(Raw Materials Cost +Semi
Finished Materials Cost)+ Activity Cost(Operation Cost)
1.For all your ROH - Raw materials maintain price control
indicator as V and enter the value as Planned Price 1 and
Planned Price Date 1 under Costing 2 View - Planned price
tab.
2.For all your Inhouse manufactured semi-Finished(HALB) and
In house manufactured Finished materials(FERT) maintain
price control indicator as S and dont enter any value directly in
accouting view.
3.For activity's cost(Operation Cost) comes via ---> work centre
in which the operation is performed.
4.A cost centre and an activity type where a rate has been
maintained for that cost centre and activity type (T code KP26)
will be linked to the work centre under costing tab.
5.As per the operation time,the cost is getting calculated.
6.Overhead cost is the indirect cost which's spend during
production.
7.So when the cost rollup is taken using T code CK40N (or
else using CK11N estimating & CK24 for marking and release)
all this cost gets added and the materials standard cost is
calculated and same is marked in Costing 2 view under Current
Planned price column.
8.Standard cost estimate is done for FERT materials so that
automatically the system does for Semi-Finished products also.
I hope this will be sufficient for you.
Regards
Mangalraj.S

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PO cost capture date.

I wanted to check if the cost captured is based on the PO creation date (before cut-off) or the input amt date ( after cut-off).

Hi,
Where do you need to capture?
Are you reading it from IDoc?
Please be more descriptive.
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Ramesh

Sub Contract (operations) Cost Capturing in Product cost

Hi Guys,
I have a problem in cost capturing for sub contract opertaions.
Scenario is : I am working on product Costing. I want to caputure the cost of various product for various opeations, this I achived through activty type. But my problem is some of operations (for making the product) has been given to outsourcing through open PO and the payment to contractor is paying by unit rate(price rates are different for different operations).
Could anybody explain me the process or settings required to capture the cost of the product which my client is paying to outsource contractor.
Regards
Srinivas

Hi,
1. Please define that particular activity as external operation in routing
2. Flag it as subcontracting
3. Assign a Material Info record to this operation. Because the cost is picked up from Material info record in this scenario.
Just talk to your PP folks. They will definitely will guide you in Routing settings in this regard
Please award points suitably
Best Regards
Surya

Compatability Unit - Cost Capture

Dear Experts,
I am able to create CU order from CU Design , However I am not able to capture Cost in the CU order.
I have assigned a TL and assigned couple of operations with some labor hours.
May be I have missed some thing !
Can any one suggest @ cost capturing in CU order ?
Regards,
Rahul

Hi,
Welcome to sap.sdn.forum.
I think you sould consult your FICO/COPA people to take care of costing so that you can maintain cost elements and activity assignment in "KP26" for hourly billing for labour hours (also use work centre for labour).
regards
DSR
Edited by: D.Srinivasa Rao on Nov 9, 2011 10:54 AM

Cost capture for Rework for Incoming Inspections

Hi xperts,
Scenario
Incoming inspection, QC department checks and finds rejects No UD stock posting is done. They use in house personnel for reworking the partial rejects they have. (This is because they have imported raw materials with lead time of >3 months, Vendor does not provide rework costs)
Requirement is to capture the in company labor hours for these re works for the Incoming inspection lots. The stock has not been accepted into stock ie UD stock posting not done. They would like to accept stock only the usable ones after re work.
Can QM order capture this labor hours used up for rework (No production order is generated with or w/o material) for inspection lot ?
Regds
Jomy

Hi
You can definitely capture the cost in QM order. For that:
define activity type
assign it to cost senter & define the activity rate
then using tcode KB21n you can book the activities against the QM order
you can get the cost report in KOB1 agaist order
Hope this is helpful

In house mfgd. raw materials for a production order- Cost capturing

Hello Experts,
The scenario is as below:
Client wants to manufacture in house some of the raw materials for a production order of sub assembly. These raw materials are made from scrap, with some manhours spent on it. After making them in house, these are handed over to stores for kit preparation.
The planner wants to create a stock of these materials (without making individual prod. orders since there are many of these). One option is, planner can do the cost centre issue reversal (202 movement). But the raw material cost is also getting captured in it from the material master.
From costing point of view, the cost of raw material should not be included since it is made from scrap. Only the cost of man hours spent is to be accounted for.
Please help as to how to map this scenario. For capturing cost of man hours spent, we can include a routing for it in the production order of the sub assembly. But how to eliminate or exclude the material cost. All inputs from your side are appreciated. Thanks in advance
Regards,
Chetan.

Hi Chetan,
Your scenario has some major issue.
1. You cannot produce RAW material in SAP.
2. The cost of material produced inhouse will be different than that of original RAW material.
3. There will be some cost effect in the final finished product if you consider this inhouse produced material for product costing of finished goods.
We have similar scenario with my client and here is what I have implemented.
1. Create a new HALB type part number for the inhouse manufactured RAW material. This will ensure that you assign Routing and BOM to same and can capture the COST for the same.
2. Creating new material will enure that the product costing for inhouse produced RAW material is done.
3. You can create single Production order for the same as you only have to capture cost. This depends on your Business scenario.
4. Once you have inhouse produced raw material, you can create alternate BOM for the FINISHED Material with this new Part number in BOM.
5. Create Production Version for the two BOM and ask Planner to select the Version 2 if he requires new part number in Production Order. I assume that this case would genrally appear in very small numbers.
6. Now coming to product costing for final assembly. Since we are going to reuse scrap material to create the new part number, only activity cost and component cost will be used to determine cost. This cost will be less than that of RAW material cost.
So we always suggest our customer to consider OLD part number to determine the PRODUCT COST of final material. BUT business will have to take a call on this.
Do let me know if u need any thing else.

Cost capturing when issue spares from Maintenance Store

Hi Guru's,
I have a scenario which is typical and applicable to most of the factories.
Maintenance planner raise the PR and once the material has come to store . Immediately they will take it from store through maintenance order. So that they dont want to show in INVENTORY VALUE. Issued material will keep in the Engg store ehich is located in Maintenance dept .Whenever any breakdown or any other requirement has come they will use the material from Engg store and replace in the particular machine.
Client requirement : 1) They want the cost to be capture at equipment wise.
                              2) They dont want the inventory to be raised.
Proposed solution not accepted by client:
                             1) Creating of additional store and transfer the material ? .
                              2) Transfering of cost from main order to sub-order?
Kindly provide if any other method is there to resolve this issue.
Regards
DPS
Edited by: DP SINGH on Oct 9, 2008 5:07 AM

Dear DPS
you can easily capture this scenario, raise the PR from maint. order for non stock item and there is no need to worry about cost center during creation of maintenance order, you can also change cost center when you will settle your order whatever you want. & this is not standard practice that you issue the material when it just come to main store, whenever maint. person need some material only then he should issue material from store.
only when they will settle maint. order against their cost center then cost will reflect to mainteanance cost center.
regards
VS

Tool cost capturing and calibration of tool:

Hi, to capture tool cost, we defined tool as fhmi material type and included in bom. Accordingly it is issued to production (thru alternate unit) and tool cost is collected in production order. Now we need to do calibration also for that tool. To do calibration we need to define that tool as equipment as standard practice. What we feel that we are duplicating the data by doing that. Please advise is there any method to eliminate data duplication and to work with product costing as well as calibration. Please advise.

Dear,
Generally tooling cost will be obsorbed through overhead charges for a cost center. So best way go with overhead cost for PRT. And define it as equipemt PRT.
Regards,
R.Brahmankar

Cost Capturing of Materials

Dear friends,
Can anybody clarify me reg. how we capture costs in Production/ Process Order:
Direct material, activity and indirect material cost will settled against Order.
Thanks inadvance.
Regards,
Venkat

Hi Srinivasa,
Thank you for your kind and quick reply.
kindly go through my concern: How the cost settle when process or production order settled?
Do we get info from Production order cost analysis like:
   Direct Material
   Direct Labour
   Indirect cost:
If we want to get info like above what the necessary steps we need to do?
Hope u figure out my concern, kindly do the needfull.
Regards,
Venkat

Cost capture and analysis of recruitment in E-recruiting module

Hi,
How can we capture cost of recruitment (per requisition, per agency, per org unit, per postion etc.) in e-recruiting? Is there a standard functionality available to do so?
Is there standard functionality to generate offer letters with the Proposed Pay / Salary Components.
Thanks,
Devyash

Hi Devyaesh,
There is no standard functionality available for both the queries in E-rec.
Regards,
Divya

QM Cost capture.

Hello Guru's,
please help me to Solve the problem.....
i want to capture the material cost and notification processing cost.
My requirement is.....
i have the Notification and i assigned the QM order to the notification.
then is it possible to issue the material against the same Order? (as i assigned to the Notification).
if possible please help me.......

Hi
why do you want tyo issue the material to QM order.
If you are issuing the material to order means whether it is PP order or PM order..
Pl. clarify.
Regards
YMREDDY

04 inspection lot cost capture

my scenario is 04 lot -inspection -delivery to customer
i want to capture quality cost for 04 inspection lot kindly guide me with detailed procedure and how can i add this cost when dispacthing the material to customer.

hi,
For Delivery,
12, 10 is the inspectiontype which u need to maintain against the material.
Now question is that u need to capture the QM related costs or some other.
If u need Qm costs than u need to maintain tha workcenter and in that relevant cost center where it is attched with ur CO Module and for settelment also.
04 is not for deleivery it is "GR against production Order"
I hope this is clear.
Regards

Non confirmity cost capturing seperately machine wise through QM order.

I will be doing resorting activity for products which are manufactured seperately out of 2 machines. I want to capture cost involved in resorting activity of all products from these 2 machines seperately. I am capturing this information through quality notification. I will create QM order for capturing cost also. But for capturing cost for machine seperately, should I create work center and I assign it seperately to notification. Or should I assign corresponding cost center (M/c wise cost center) during KB21n trasaction code.

Dear DPS
you can easily capture this scenario, raise the PR from maint. order for non stock item and there is no need to worry about cost center during creation of maintenance order, you can also change cost center when you will settle your order whatever you want. & this is not standard practice that you issue the material when it just come to main store, whenever maint. person need some material only then he should issue material from store.
only when they will settle maint. order against their cost center then cost will reflect to mainteanance cost center.
regards
VS

Activity Cost capture

Hi,
i am used in MTO Process.capture for activity without goods mvt in po.
my issue is, Iron for one activity in material against . but contract people used.
am not used for service po, that reason is not related to sale order qty.
sub contract not for used,reason is material input and output are same material used.
so, any idea for this scenario.
Related for sale order qty are same not exceeded.
plz, advise me.
Regards,
JJ

Hello Srikanth,
You can use the costing sheets as proposed by Umapathi or you can use formula planning templates with business processes for allocating cost according to your requirements. If the problem is that there is no confirmation process in PP then you can use template and activity type which can allocate cost according to your formula say No. of units manufactured.
I would request you to revert back with your scenario so that we can advise accordingly.
Kind Regards // Shaubhik

Transport Cost capture

Hi Experts,
I have an issue with frieght,
In SO iam adding transport cost ,but it is not paid by customer it is paid by the company ,so how to link this transport cost to MIRO transaction,
Can any body explain in details
Regards,
Caprin......

I believe you were talking about transportation charges payable to transport vendor who carry the goods from a delivering plant and delivers to customer. If this is correct, then you can configure Transportation through which this requirement can be met.
On the other hand, if you are not willing to configure transportation due to the fact that it is a cumbersome process, you create a condition type for freight payable in V/06, maintain the required access sequence in V/07, assign this condition type in your pricing procedure with an appropriate Account Key and maintain the required freight charges in VK11
thanks
G. Lakshmipathi

Cost capture

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