Cost estimate Issue

Hi All,
We are creating cost estimate and got error message "Credit Key not defined".
We are not maintaining credit key in our cost sheet and we dont follow this process.
Please let us know what is missing in our process according to user transaction level .And what does this mean in costing terms.
Regards,
Payal Saxena

Hi,
1). Check weather you have assigned any Credit key in your Costing Sheet which is not available in system? Or
2). If you dont assign any Credit in Costing sheet then remove the costing sheet assignment in Costing Variant/Valuation Variant
Remember,If you remove Costing sheet assignment, it wont pull any overheads in Standard Costestimate.

Similar Messages

Cost estimates issue

Hello,
A mistake was made when we release our annual costing run for standard cost: validity dates 01.01.2011 to 31.01.2011 instead of covering the whole year.
As a result, the production variance analysis (where it is broken down into categories ..) cannot be made from February on, the system check the validity dates. It all falls into u2018residual category.
So I need to release the same cost estimates, with the correct validity dates.
Do you think itu2019s possible without redoing a costing (which may bring different results)
Thanks in advance
KR - Loï

Hi Loic
Redoing cost estimate is the only option....
I agree with you that reoding may bring diifferent results... However, if your activity prices are not changed and the Planned prices of materials are also not changed, dont expect any major changes in it
Br, Ajay M

Cost estimate issue (Urgent!!!!)

Hello,
While doing the Cost estimate i am getting below error message for Material 'A':
It was showing me cost estimate earlier , but we wanted that for a particular Cost element (already existing in CCS) planning needs to be done and needs to be included in Std cost of material.
I have not touched Cost component strcuture nor the Splitting structure. Everything is in place.
I have added Planning in KP06 for Costcenter and Cost element (non activity related)
Then i did KSS4 - Splitting allocation to activity types
and then KSPI - Price calculation.
After that i am performing the cost estimate it is giving me below error. Can u please help. Even if i have undone what i have done it is giving the same message.
Points would be rewarded imm.
Cost center 1045262000, activity type M_RUN: Actvty price differs fr. cost comp splt
Message no. CK687
Diagnosis
For cost center 1045262000/activity type M_RUN, the activity price calculated for price strategy 2 is different from the corresponding primary cost component split.
Possible causes:
You are working in Cost Center Accounting with manually-set activity prices that are included in the iterative activity price calculation.
Rounding error (in this case, notify your system administrator).
System response
Costing ignores the primary cost component split from Cost Center Accounting, and assigns the costs to the product cost estimate through the allocation cost element of the cost component split.

Hi rajeshwari,
have u got a solution? if not, then go to T-code KSBT. Check there must not be a rate calculated for the Cost center 1045262000, activity type M_RUN.
For the sake of removing the error message, go to T-code KP26, key in activity as 1 & fixed rate also as Rs 1 . Save this & again execute cost estimate .
Aslo check Tcode KSV3 if u have a distribution cycle in place. Then check splitting.
Hope this helps
regards
makrand

Issue with Standard Cost estimates / Material Ledger

Background:
We have been using SAP for the last 5 years with Material Ledger active. Due to a number of reasons, we have not revised its standard cost estimates from 2001 till now. This means that at month end, we do not mark and release prices as recommended, nor do we mark prices and use dynamic release.
What Happened:
A new material called PFSW3 was made. This is a FERT. Before production
could start my team released the standard cost estimate for this material. Production was now able to proceed without problem. Then, when the time came to sell the material (VF02), SAP again raised the error 'cost estimate not found'. On checking the standard price in MM03, we discovered that the future cost estimate was missing. So we created and marked a new cost estimate in the middle of February 2007.
Problem:
When the first sale took place, SAP released the marked cost estimate and posted a Price Change document to adjust for the new standard cost. I understand this was due to dynamic release. Now, when month end came, the system settled all the production orders of material PFSW3 but did not do multi level costing on it.
Internal Investigation:
My team has determined that the material PFSW3 has price determination 2 set by mistake. All our other production materials (HALB and FERT) are
set to price determination 3 in the material master (accounting view).
Questions:
To sum this situation up,
we need to know why the material PFSW3 was not marked closed in its period status (CKM3) at the time of closing through CKMLCP?
What are the implications of not closing this material in Feb 2007 (current period status is showing 'Quantities and values entered')?
How can we close this material this month?
The future cost estimate is again missing for PFSW3 in March 2007 and I
fear we are going to face more problems as this material is sold to customers.
Please respond this is an urgent issue.

Dear Shumyl,
Please, have a look at Note 645083 - Material period status set to "Closing Entry Completed" that might help to closing your material in previous period.
Hope it will be useful.
Regards,
Flaviano.

Material Cost estimate realted issue and question

Hello,
we have a multi level BOM, I have makre and released for one sub level material in the BOM, there are few other sub- materils which need to be costed, can i do the cost estimate for the highest level of BOM or do i need to do first for each sub- component in the BOM, also for the one sum- companent wchi is realesed can that be changed.
please let me know.

Hi
Both are in one way the same.
Material cost estimate can be calculated as
1. Material with quantity structure
2. Material without quantity structure
You can get more insight into it at the following link
http://help.sap.com/saphelp_47x200/helpdata/en/7e/cb938143a311d189ee0000e81ddfac/frameset.htm
Regards,
Suraj

Digits Of Significance/Rounding Issue-Cost Estimate With Quantity Structure

I have an Excel based BOM which includes Material (Yield) Qty, plus a scrap factor. This adjusted yield is then multiplied by the Unit Price to get the Extended Amount. An example from my file is:
Material 10-0766 = yield of 1.824 sq ft less 4% scrap 0.07 sq ft = adjusted yield 1.897 sq ft * 1.836 USD/sq ft = Ext. Amt of 3.483 USD.
In SAP, I created a BOM via CS01 with this material as a line item, 1.824 as the qty, UOM is FT2 (sq ft) and I added a Assembly Scrap of 4% with the Net ID indicator checked. When I create a cost estimate via CK11N (in our SAP AFS 6.0 sandbox), the itemization for this material reads: qty of 1.897, total cost of 3.48 USD.
The math all works, but the resultant USD amount in SAP is short by .003 USD. I realize that USD currency is configured to only 2 decimal places, and that is fine. But, I thought that the calculations that costing was doing was retaining all the digits of significance past the 2 decimal places being shown, rather than rounding off to 2 decimal places. There are 24 materials in this BOM, and the total delta between my Excel sheet total (17.647 USD) and my SAP estimate (17.63 USD) is 0.017 USD. If I look at each item, the cumulative difference is due to each line rounding off to 2 decimal places.
The units of measure (via tcode CUNI) are all configured to show display 3 decimal places (field DECAN) and round to 5 decimal places (field ANDEC).
Does anyone have any information/suggestions around the precision in my SAP cost estimate? Am I stuck with these differences, or is there something I can do differently to prevent them? I know I can increase digits of significance in Activity Price Calculation, but I can't find anything similar in Product Cost Planning. Any help would be greatly appreciated.

Hi
To achieve you have to run the costing run twice once normally.
Secondly you create an alternate BOM 2 by having the same alternate BOM 1 and remove the 2 materials which you dont want.
Execute the costing run, provide the details required in the Costing data screen, press enter, go to the Qty structure screen give the details of the Alternate BOM 2 in the BOM details and execute the costing run.
Save the cost estimate, which would be have been costed without the values of two materials as you wanted by using the alternate BOM 2.
Then use CK24, select the option "other prices" to release the cost estimate for the commercial price only by selecting the indicator of commercial price 3 only.
Regards,
Suraj

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

Sales order cost estimate not happening because of GIT B/S account

Hi,
Requirement is to have Goods in Transit account in PGI and reverse it in Invoice no issues iwth it.
For the same sales order user wants to get cost using sales order cost estimate.
When i run that am getting following error
Item 00001 : Cost element 14001212 does not exist in CO area 0010 for 10/07/2011
Message no. KK689
Even though i maintain the CE for Balance sheet account with Cost element category 90 its not accpeting.
Can you please help me on how to proceed for sales order cost estimate.
Thanks,
sudha

hi,
if you give a balance sheet account in obyc , you will not be able to create a cost elementin category 01 , accordignly system will give error in sales order costing , as its not able to get correct cost element in cost planning.
if your requirement is just to post cogs to a balance sheet account which is goods in transit and when invoice is done cogs to be posted.
you should actually use revenue based RA functionality on sales order instead of assinging a balance sheet account in obyc.
in this approach;
- first assign a p/l account in obyc and create cost element in cateogry 01.
- create revenue based RA and assign RA key in requirement class.
- in OKG8 for RA category WIPR and your ra key assign , goods in transit account and give a offsetting account which is not cost element (credit entry in offsetting account nullify debit in account given in OBYC when GIT is posted , when billing is done system will automatically post a oppsite entry in both account).
-in OKG8 for RA category COSR give the COGS account and a offsetting account without cost element (credit entry in offsetting account nullify debit in account given in OBYC when COGS is posted).
regards
rajesh

Error reading material cost estimate for sales order (KE292)

Dear All,
I have an issue with billing. we are posting july month transactions, the material cost is maintained through MR21. When releasing billing document for accounting we are getting error message like"Error reading the material cost estimate for sales order "11"
Message no. KE292
Diagnosis
In Profitability Analysis (CO-PA), the system tried to valuate item 000010 of sales order 11 by reading the corresponding product cost estimate.
However, no product cost estimate could be found for this sales order item.
The system accessed product costing for product AMLFP011011XX00P using costing key YB3 as defined in the
CO-PA Customizing settings.
System Response
The system cannot process the document any further.
Procedure
Check your Customizing settings."
We cross checked with other client as a current date and we ran cost estimate through CK40N with same material. and we posted entries. Here it is working fine. but in above process it is not working. Can you pls guide me where i missed.
Regards,
Nagaraju,

Hi,
When the Costing Key is assigned to the material types in the COPA customizing, then system expects Cost estimation when billing is released to Accounts.
If you dont run cost estimation but update the material master through MR21, system will not accept as in the Costing key configuration you must have selected the Current Standard price field for the valuation.
Hence, try to run cost estimation and then do releasing.
Thanks & Regards
Ravi Kumar

Recursive Loop Error while doing standard cost estimate

SAP Gurus,
We are trying to do standard cost estimate on a material and we are getting error because it is going in recursive loop even though we have used "recursive allowed" indicator for item components in the BOM. The error message numbers are CK 730 and CK 740. We are using 4.6c. I have tried the same scenario in ECC 6.0 and still I get the same problem.
Below is my BOM structure:
Material 10890345 (has low-level code 012)
        ---> 10867220 (has low-level code 013) and has recursive allowed indicator
10867220
        ---> 10846733 (has low-level code 014) and has recursive allowed indicator
10846733
        ---> 10890345 (has low-level code 012) and has recursive allowed indicator
According to me, the BOM for material 10846733 is causing the problem.
For some weird reason while doing the costing run for material 10890345, it s not stopping and going in a loop.10890345 and 10846733 should ideally have the same low-level code as they are recursive.
Please help to provide some solutions at the earliest on how to avoid recursive loop during costing.
Regards,
Swapnil

Dear,
I have 2 things to shear with you.
The method we followed to solve the iteration is as below
1.Config change -
Valuation variant in the costing variant, we changed the sequence as below
material valuation
4 planned price 1
2 std price
3 Mov ave price
2. Material master change
made all the semi finished goods and finished goods
procurement type = E,
costing with qty structure,
Enter the planned price1
By doing this what happens is
when system first start the iteration, takes the planned price 1 and start iterating and next time in the second iteration it takes the calculated price from qty structure till it finds the difference between the value calculated is less than .001. Then it gives the result
Why lot size is important is, in our case in some levels the usage is very less compared to the first material header qty and system used to stop in between and not even reaching the last level as during the cycle it was reaching less .001 difference. may be in your case it may not be the case...just check
Please come back after trying this. this was the only last option i had to solve the issue in my client.
Another alternative is to have a different material for costing purpose to stop the iteration which i will not recommend as we need to do some calculation for each stage and input the cost of dummy material in each stage.
My client is happy with the result as the difference between manual calculation and system calculation is less then .1%...this is because SAP will not consider the difference beyond .001, but in excel you get as many as decimals you want.

Target sost calculation not considered Current cost estimate in KKBC_ORD

Hi All,
We have an case wherein it observed that target cost calculation on SFG is wrong
in KKBC_ORD where system does not considered the current cost estimate.
We have all the necessayry customisation in place for Target cost version 0 for current cost estimate.
Below is detailsed case.
1 Process Order created in Dec 2011
2 Price Released to Mat master on 01.01.2012
3 Goods movement,Operation confirmad Material Issues, FG qty delivered @ std cost 0n 04.01.2012
4 Order Technically completed (TECO)
5 KKS1/KKS2 will be done at month end.
We know that In Process order, after deliver of FG the target cost on FG is not getting calculated,target cost will be updated only after calculating variance. it does
not calculate after delivery of finished goods, On Execution of KKS1/KKS2 variance will be calculated the target cost on FG and will be updated.
In process order (COR3 --> Cost analysis) Target cost ,Actual cost and Planned cost are calculated based on the following:
Total Plan Cost = Std Cost the material required to Produce X Planned Qty of the required material
Target Cost = Std Cost the material planned to Produce X Std Qty of material required to produce, for Produced Actual Qty
Actual Cost = Std Cost the material planned to Produce X Actual Qty of material consumed, for Produced Actual Qty
The variance is calculated on SFG and assemblies based on the difference between actual and target cost in KKBC_ORD. During creation of process order, the plan cost
will be updated with the valid standard cost upon the creation.
The target cost on SFG and Assemblies is only generated when there is good receipt from production order into inventory.
The target cost is generated using the valid / recent costing run for the correspondence SFG in KKBc_ORD.
All other target costs showed in COR3 (Menu Go to > Costs > Analysis) or KKBC_ORD before doing KKS1/2 is only statistical- However in our case Traget cost calculated
on SFG in KKBC_ORD not relevant with current cost estimate.
However Actual cost and Planned cost Calculated correctly.
Actual Cost= Current Standard costof the materilal(5.624,88)X Actual Qty (13.693)=77.021,48
Planned cost= Std Cost the material required to Produce (6.572,12) X Planned Qty (12.415)= 81.592,87
However Target cost is not considering the current cost estimate;It should be - Current Standard cost of the materilal(5.624,88)X Target Qty(13.958,124)=78512.07.
But Errorneously Target cost is showing 67.383,59 which causing unfavorable variance to standard.
It should be 78512.07-77.021,48= 1490.59 favourable var to standard in KKBC_ORD.
Any help,suggestion and input would be highly appreciated.
Thanks with Regards
Subrata

hi
target cost is your standard cost* actual confirmed quantity, not the standard quantity required
the variance calculated will be always the actual debit to the production order- actual credit of the production order
your actual credit for the process order is std cost* actual quantity delivered to the inventory= Current Standard costof the materilal(5.624,88)X Actual Qty (13.693)=77.021,48
actual debit to the process order is total actual cost which you can see in COR3 report .
By the way for which period you have calculated variance, target cost will be calculated based on that months standard cost
krishna

Excluding price of last purchase order from cost estimate

Good morning,
we have the issue described below:
we would like to exclude a price of some purchase orders from valuation in cost estimate in case of valuation is made by price from purchasing info record.
In this case valuation considers price of last purchase order even if there is a valid agreement used.
Our customer would like to have valuation with price of purchasing agreement and not price of the standard purchase order closed, but if agreement is older and during creation of standard PO is setted the "InfoUpdate" flag, system updates the inforecord and in CK11N during cost calculation it uses this price for subcontracting.
We have done some tests...Is there a standard SAP solution to have price of valid purchase agreement?
Many thanks.
Giusy Castiglione
Accenture Outsourcing

Hi,
Your requirement seems to be very unique and hence you need to try out through by selecting the valuation through user exit where we can request the system take the po price from purchase agreement instead of purchase orders. This selection deftly resolve this unique requirement instead of searching for a std solution.
Trust this helps much!
Regards,!
Ashok Singh

Can't delete the cost estimate via CKR1

Hi,
We have one material. We can't delete the cost estimate via CKR1. It is only warning. It is no error log. The other material cost estimate can delete normally. I check the material master I can't find the issue. The following is the warning message. Could you pls help check it? Whate factor will effect the cost estimate deletion? Thanks.
==========================
Deleting current standard cost estimates can cause inconsistencies
Message no. CK 669
Diagnosis
u2022 If you delete a current standard cost estimate, the fields for
the cost estimate are set to zero in the material master record. If you
use the material ledger, the standard prices in the material ledger
master data are also deleted when you delete the current standard cost
estimate. The material master record for the material thus does no
longer contains a current standard price from a standard cost estimate.
u2022 If you delete an active standard cost estimate, you can no
longer determine scrap, work in process and variations for previous
periods.
u2022 In certain countires, it is a legal requirement to maintain
records of standard pricing. Therefore, you should check whether you
are obliged by law to keep records of your standard cost estimates.
Please also contact the relevant accounting and inventory management
departments.
==========================
Best Regards
Park Han

Hi,
The deletion of Current standard cost estimate should be followed with some rules of the IFRS.
If you want to change the standard cost you can do the change,If you want to delete the standard cost of material then it will set the price of material to zero.If the material ledger also activate then it will make the Moving average price & standard cost of the material to zero.
So follow the Law of the country & Discus with Audit team &then delete the curent standard cost estimate of the material.
Regards,
Raj

Cost component in cost estimate

Hi all,
In cost estimate with quantity structure, costs assigned to one of my cost components do not appear in the correct group.
This only happens for a group that should include semi-finished costs. The correspondance in the customizing is correctly made between the cost element and the cost component and when looking at itemization, the correct cost element is displayed but no cost component is shown.
I assume the problem may arise from the fact that my finish product use elements from other cost component, e.g. raw material, packaging,...
Would someone have any idea on this issue?
Thanks in advance for your help.
Ronan

Hi,
Pls. used tcode CKMCCCC - Manual Change of Actual Cost Comp Split.
Pls. assign points if it's helpful
regards
sel

Cost estimate less tna zero

hi
i have a scenario
where i get the free of cost material form customer
i add the conversion,the scarp generated m
if i use the scrap generated as credit the cost estimate is negative
but i should bcz this is a sfg and it fits into aonther FG and the customer do concder the scrap generated credit during pricing
but at the sfg level the cost estimate is negative.how to do this .

Find it very hard to interpret the nature of issue you facing. If you can elaborate with more details or better still upload screenshots to some portal & paste the link here, will be helpful to understand. Also did you discuss this with your CO consultant?

Cost estimate Issue

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