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

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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

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.
Regards
Ramesh

Costing run for materials with special procurement key

Hello,
Since moving to ECC6, the costing run for materials with special procurement keys is not pulling the marked price from the materials the special procurement keys point to. Only the released prices are pulled.
Example:
Material A, plant A has a future price (costing 2 tab) of 100 and a current price of 99
Material A, plant B has special procurement key Z1 (costing 1 tab) which pulls the costing from Material A, plant A
In our old system (46c) the costing run for Material A, plant B would pull 100.
In ECC6, the costing run for Material A, plant B pulls 99
Anyone that can push me in the right direction?

Hi,
Based on the info provided thus far, the result that you notice in ECC 6.0 is right as it is picking the current standard price based on your setup.
Now why it is picking the future price in 4.6c, well for that you will have to do a detail check as in which variant is being used etc. I would suggest you to work with your CO personnel on this. Do a costing run for this particular material via CK11n using the variant which you mentioned & see the results.
Or if you can upload the screenshots (picasaweb or some other portal) of the valuation variant you're using in 4.6c, along with Acctng view 1 & 2, costing view 1 & 2 details of the material it would help to have a better understanding.
Regards,
Vivek

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

After BUDK costing run, 300 materials are open.

After BUDK costing run, 300 materials are open . When clicked on the same it gave a dump.
What may be the reason for which the materials are still open. How to identify them and
take subsequent corrective action?

Hi
Refer Note 1402978 - CK40N: Incorrect statistics after inconsistency corrrection
This note has child Note 542790 - Inconsistency correction: Costing run statistics and others.. You should start with this note.. and then come to above note 1402978
Regards
Ajay M
Edited by: Ajay Maheshwari on Nov 12, 2010 6:57 PM

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.

How to capture raw materials,activity & overhead cost without order

hi
my client wants to capture cost of effluent plant.
i do not want to create a seprate production order.
in etp plant
waste water enters . it goes to some processing and come out as purified water.
some raw materials are used like alum,DAP,........
Some activities are done so there is processing cost,power cost,labor cost...
how can i capture all raw materials cost,processing cost,labor cost,power cost
is it possible without creating production order

Hi,
Without creating a production order you can't able to get the actual costs for material cost and the activity cost. By maintaining BOM, Routing you can get the Standard cost.
regards,
V. Suresh

Capture cost of procured materials in a third party sales order scenario

Dear Experts,
I'm developing a third party sales order solution to my company following the recommended third party scenario by SAP.
Everything is working fine from creation of sales order, automatic creation of purchase requisition, create purchase order using the purchase requisition ect...
The problem I have is the in the Sales order, the cost of the material is not getting captured correctly. The condition maintained in the sales order is VPRS and it is deriving the material cost from the material master record. Ideally it should be deriving the material cost from the invoiced value or else from the purchase order(which is the actual amount we are spending to buy the items). Deriving the cost from material master depicts an incorrect profit in the sales order.
Can someone please advice me how to derive the cost(to be shown in the sales order under VPRS condition)from the invoice or the purchase requisition and Not from the material master.
I'll be grateful if you can describe in a step by step proceedure.
Thanks in advance

Hi Lakshmipathi
Thanks alot for your response.
As u mentioned, at the point of sales order creation the price does gets picked up from the Material Master.
But during Billing, it does NOT get updated to reflect the purchase order price. If that happens, then its perfect.
I did a complete testing cycle and the material master price remains unchanged throught the process upto billing.
Is there any special parameter that I should maintain in VPRS condition for this to happen?
Anyway thanks again for ur reply, appreciate it alot. Let me know your views on this.
As u advise I'll post it on the sales forum as well.
Regards,
Randika

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

Cost element for materials in network profile

Dear All,
Want to use material planning field in internal activity under assignment tab. But I have the following queries
What is the cost element that I have to mention in network profile under internal activity?
If I mention the cost element in network profile and plan my internal activity in initial stage and later on if I assign material to internal activity will the Plan cost of that internal activity increases by the material added to that activity.
3. under OBYC materials have different cost elements based upon valuation class. so how the planned vs actuals will be show in the report.
Regards
Avinash

Hi Avinash,
See my replies below.
1 a & B: You are planning Qty on NWA and capturing costs - labor & Equipment on NWA elements.
When you are having elaborated to NWA-Element level, split your total work on each NWA-element and post labor cost. Thus you will have planned Vs actual costs at one place.
coming to equipment cost - are you capturing using PO through GR?.
2.a : Option1- create a separate WBS elements for materials and plan cost at WBS level. That value would be your total planned cost of material procurement as estimated. Under this WBS elements create NWAs and assign the materials. With this set up you can assign material and procure so that will have actual costs coming from GR.
Option 2: Create a one General Cost activity and assign the total planned cost of material on this NWA.
When you assign the material components, diligently you have to reduce the equivalent amount from the general costs activity. Also note that on component screen, you have to check box "Cost relevant" so that material cost will add to Cost NWA. Let the different materials have their own valuation class and have default CEs accordingly. that would not be big issue.
Please discuss with your MM team to get more information. Also my suggestion is to leave blank CE field in configuration.
The option2 is very cumbersome and high risk but one have to be very cautious to reduce the value from Cost NWA in order to sustain the planned material costs whenever they added.
3. I have answered the relevance of Cost relevance check box in above.
Hope above makes sense.
Thanks,
Sudhakar

Changeover Cost, Time and Materials

What is the best method for capturing changeover costs in a discreet manufacturing setting where production orders are used? Depending on the sequence of products being produced cleanout times and the quantity of cleaning agent used can vary. This has an impact on planning and profitability, and should be accurately captured.
Is it best to create multiple routings one with and on without changeover time?
Also, to capture the amt. of cleaning agent used, is it best to put that directly on the BOM? The issue is that we don't know how much cleaning agent is used until after we have already posted production. Is there a way to go back into the production order after posting production on the finished good and consume more material?

Hi,
Create production order without materials in transaction CO07.
You can use reference operations sets for this. You can assign the components in the order directly. Create reference operation sets and call on the operation in the production order wo material.
This cost can be captured on a cost center and distributed as per the requirement.
thanks and regards
Muru

Overhead costs on raw materials

Our requirement is to have some percentage overhead on raw materials. So I created a costing sheet and applied a percentage to them and did a std cost estimate. Now when GR is received it valuates against the std cost (which includes OH) and posts the difference to PPV. Client wants it to valuate against the orginal price of material (without OH)
Ex; ROH Mat A $1.00 in planned price 1
Costing sheet : 10% OH
Standard cost of this ROH A is $1.10
Purchase order will be at $1 so GR will post Dr. Inv $1.10 Cr. Gr/Ir $1.00 PPV $ 0.10
But clients want that PO price $1 to be valuated against $1 (true ROH cost) and post $0.10 to absorption account
Dr. inv $1.10, Cr Gr/IR $1 Cr abs $0.10
if P.O is $1.10 then Dr. Inv $1.10 Cr. Gr/IR $1.10 Dr.PPV $0.10 Cr ABS $0.10
I am not sure if it is even possible if not waht options do I have to have and overhead for Raw materials with out updating standard cost estimate with $1.10.
Thanks

Hi
Yes, it is possible
What you want is to Debit the inventory with 1.1 i.e. inclusive of Overhead.. But, Credit the GR/IR with 1 $ and post the 0.10 to absorption account instead of PPV... So, that PPV reflects true PPV
You need to create an accrual key for the same..
1. Create an accrual condition type and accrual account key in MM pricing procedure. In this way, there is a credit entry to the GL account represented by accrual account key. Hence the PPV represents the true value.
2. For the accrual condition type, you can create a condition record such that its value is same as your overhead. You can use the user exit to automatically populate its value from KEKO and KEPH table.
Refer this post where it was discussed a few days back
Product Costing-Overhead inclusion in Inventory standard cost without PPV
Regards
Ajay M

Cost of reagents (materials) used for QM inspection

Hi,
Could you please clarify the issue of managing reagents that were used for QM inspection?
Reagent is set in the system as ROH material. The objective is to view the amount and the cost of reagents that were used for the inspection operation.
There is a possibility to use QM order for the appraisal costs. But only time-related activities are taking into consideration there (for instance, n working hours of personal * rate).
The question is how to manage costs of materials (reagents) that were used while inspection operation.
Is there any possibility to carry out goods issue for the QM order?

Thanks for your answer, Gajesh
Though the movement type you proposed is not exactly what I was looking for, your answer lead me to goods issue in relation to QM-order. This is not possible with MB1A.
I tried MIGO. I added the field "Order" to the tab "Account Assignment" through the OMJJ transaction for 201 movement type.
And now it's possible to enter the QM order number while posting goods issue (reagents issue).
The relative controlling document contains the QM order number.
The only inconvenience left is the necessity to remember the QM-order number when posting the goods issue. Though the goal is achieved somehow.
Regards,
Salameja

Cost Capturing of Materials

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