Cost estimate of the product

Hi,
Can anyone please let me know what is process for cost estimate for the product in SAP. Just give me a thought in simple terms.....
1. How system will estimate the costs?
2. In which cases we should settle the costs?
3. What is the process to settle the cost through internal orders/gl's etc.,?
4. What are the main requirements for this process?
Please give us your thoughts on the above mentioned queries...
Regards
Krishna

Cost estimate for a material is done by the system through product cost planning.
You have to define the following:
A cost component structure which splits the cost into different components as per your requirement
A valuation variant which decides the various factors such as material pricing, activity pricing, sub-contracting, external activity prices, etc.
A costing variant which controls the parameters for a costing run which helps to update the prices in the material master.
a production run is carried out for a production order, process order, product cost collector etc. Periodically these objects are settled to the material in question.

Similar Messages

Valuation with material cost estimate: error with product

Hi Experts,
Message no. KE350, Valuation with material cost estimate: error with product "2286940000". Please suggest me to resolve this issue.
Points will be provided for good solution.
Regards,
Jay

Hi Jaya
This means that your customization is wrong then...
In KE4J or KEPC you have assigned costing keys to your material types or some other combination... You should have done this config in a way that costing key is not called for in the case of non valuated materials...
In Ke40 you have defined costing key where in you have specified "Issue error msg if no cost estimate found".. This costing key is assigned in KE4J or KEPC in a way that it is getting called even in case of non valuated materials...
Do you have a separate mat type for non valuated material? If yes, remove this mat type from KE4J/KEPC..
If you dont have separate mat type i.e. in the same mat type if you have both valuated and non valuated, then you have a problem.. You would get stuck in that case
Regards
Ajay M

Valuation with material cost estimate: error with product "117122"

Hi people,
We have the error:
=====================
Valuation with material cost estimate: error with product "117122"
Diagnosis
In Profitability Analysis (CO-PA), the system tried to valuate a line item using the current standard cost estimate.
In order to determine the current plan period, the system needs to read the valuation segment of the material master.
The system has found that the current plan period is not filled forproduct "117122" in plant "UBE1".
We have the follow configuration in trans.: KE40:
. Determine material cost estimate
   . Transf. Standard Cost Estimate
. Costing Variant
. Control Data for Standard Cost Estimate
   . Period Indicator = "Current Standard Cost Estimate acc. to entry in mat master
. Addiitonal data CO-PC
    . Transfer cost estimate in controlling area currency "activated"
We think the reason about our error is because the field above is activated and some configuration more is necessary for this case. For examplo: Trans.: OKYW and this one was not configurated yet.
Do you know what happend?
If we need to configure some transation, or sonly process the cost estimate?
Thanks,
Rosana.

Hello Guido
Thank you very much for your return.
It is happenning in a Client that some people are doing the configuration.
Before we didin't have in KE40, the fiel "Transfer cost estimate in controlling area currency" activated.
And now, the people activate that in this new Client and I don't know the impact about that.
I think we have to make the configuration in OKYW.
The other transation you told me, we don't have any information.
Could you tell me some other idea what happend?
Message error is just "Message no. KE350"
Abou claculate the cost:
It was calculated by trans.: CK11N for future planning and the real wasn't not possible to release because this material already have moviments.
Could you tell us is there is some thing more to do?
Thanks,
Rosana.

Valuation with material cost estimate: error with product " 200038 "

Hi,
I am getting an error:
Valuation with material cost estimate: error with product " 200038 " (Message KE350).
Kindly assist on the same?

If this material is mto material go to t.code KE40 and maintain define access to standard cost estimate define cost key with
"Transfer sales orde cost estimatex".
If it is mts material define costing key with Transfer std cost estimate and in costing data
costing variant : ppc1
costing verstion: 1
period indicator: Release std cost estimate matching with goods issue or material costing matching posting date.
This will resolve ur problem.

Sytem restrictions during Releasing new Cost Estimate during the year

Hi,
We are currently using Moving Average Price for Traded materials (Material type ZHAW) with Price Control indicator "V". We have an internal requirement to change the basis of valuation to Standard Cost immediately. Thus we have to change the following immediately before the close of the current Financial year:
1) Change the Price control indicator from 'V' to 'S' in the material master of Traded materials.
2) Thereafter, release new Standard cost estimates for all such materials in the current year. This is required because the business wants to have a different standard cost from the existing Moving average price.
I would like to know what are the system restrictions / safeguards to be taken care of before doing the above activities, since we are doing this before the period-end & year -end.
Your early response will be appreciated.
Regards,
R.Rajaraman

You can change the price control from V to S or vice versa. You might need some additional config for if required to send the price differnece to variances account in OBYC. Other than that since it is trading materials which are not produced you might not need Product Costing Planning.

Negative Material cost in cost component of the Product

Hi,
We are in ECC 6.0 and using Material Ledegr and Actual Costing. We have cost component structure - Material cost, Packing cost, Overheads, etc. The total cost of the product is positive. However, at the cost component level Material cost shwoing as negative.
e.g.
Material-Cost      (-10.00)
Packing-Cost          0.00
Overheads        40.00
Total cost         30.00
It seems the negative Material cost is coming from Lower levels. I have checked this in T-code CKM3N and in Table CKMLCR/CKMLKEPH. There are no reversal of material movements.
Will you share your views on this issue for how to identify the root cause and take preventive action?
Thanks & Regards,
ADI

Hi ADI,
The note 671767 explains possible root causes of negative cost
components. They are usually caused by:
1. Negative cost components due to by-products
2. Negative cost components due to WIP problems
Regards,Declan

How to run cost estimate for the purchased materials to updt Pln prices?

Hello Experts,
Can any body explain how to upload the plan prices through cost estimate in purchased materials..
Regards,
Ravan

Hi Ajay,
Thank you for reply
I do agree update plan prices through LSMW or Manually in Material Master
I am trying to update planed price1 and 2 through cost estimate, for this I configured like below
New costing type:G1
here I selected for prices update as "prices other than standard price" and valuation view as Legal valuation
New valuation variant :GG1
here I given MAP as a first priority in strategy sequence
Regards,
Ravan

KKAX shows WIP costs after settling the production order

Dear experts,
We have production order and we did the following actions in March (end of the year),
1-     Create the order
2-     TECO the order
Then in May we did the following actions:
1.     Revoke TECO
2.     Give DLV
3.     TECO again
4.     Calculating the variances
5.     Settle the order
The problem that in KKAX we can see the WIP costs in the column (WIP (Cumul.))
So, although the order is settled but the WIP costs not cleared,
And as I know the settlement will clear the costs, how this happen.
Thanks in advance

Hi
First u see whether u have any incomplete Production order .
That is in any oder have u not comfirmed quantity if in this casse please clear than now try to run the KKAX
Regards
Ramanujam

Cost Estimate for the previous period

Hi,
For a material we have a inconsistency between Material Master and Info record in base unit of measure.
in the material master: 1 piece = 1 mm
in the info record: 1 piece = 1 m
During the month of December, user posted a goods receipt posting of this material: 625 m with an s-price-value of u20AC 668.750
For the stock valuation in year-end closing he says he need a right s-price calculation of the material in 2010.
If not, he will post a depreciation of more than u20AC 600.000 for this material.
Can we save a new calculation for Dezember 2010, if not what is the alternative? Can we suggest MR21?
Thanks to share your thoughts.
Kind Regards
Umapathi G

Hi Umapathi
MR21 is your only option... You cant release new price in Dec 2010
however, what I dint understand is this a purchased material or produced material?
If it is a produced material, then reverse your GR, make corrections and post it again.. Else, you would have good amount of variances
Regards
Ajay M

Cost Estimate before Inquiry

Dear All,
We have the scenario in which once the Inquiry received by SD, Production department run the cost estimate for the product inquired with reference to existing BOM and also trying out other combination of Material, acitivity types and work center or in some cases other plants also.
Please reply. Is it possible through Base Planning Object or similution costing?
Thanks & Regards,
Bhadresh

Hi,
It is possible through Base planning Object using KKE1
Regards
Balaji

Error during variance calculation for production order "NO cost estimate "

hi all,
I'm gettin this error message while trying to calculate the variance for a production order. error is "No cost estimate for material xxxx for 01.10.2008.
when i look at material xxx in MM02, under cost estimate for current period there is a value but nothing for previous period. So i'm guessing the the Cost estimate was not run of this material? am i correct here?
Now if i try to run cost estimate for material for the missing periods using CK11N, i get an error "cannot save for past period"
Could some one tell me how can i get a prior year estimate into the material master?
I tried CK40N and CKN1 but just cant get it to work...
Thanks heaps

Hi Tom
unfortunately there is no easy way to get a product cost estimate for a past date. One of the reasons for this would be inconsistant product valuation.
You could in theory create a cost estimate in a current date and use an ABAP or manually adjust the valid from and to dates directly in the tables (e.g. KEKO). To do this in a production environment would be restrictive off course.
The standard cost estimate is the basis for the target costs so as an alternative you could look to change the configuration of the target cost version in OKV6 to either of the following:
- Plan Cost/Preliminary Costing (that is the plan calc done on your production order)
- Alternative Material Cost Estimate (one that is not necessarily a product costing that is set for marking and release).
I hope this is of some help.
Elaine

Costing errors at the time of creating and confirming production order

Hi friends,
I'm in the process of setting up a controlling activity called assembly of a product (this assembly is final assembly or would result in the finished product, JOTRUCK).
The Issue that I'm facing is, the system is not capturing costs.
i.e., it is allowing the creation and confirmation of production orders, however with a warning message which says costing errors.
Steps that I've completed (from controlling end):
1. defined primary cost elements
2. defined secondary cost elements with category 43.
3. defined a cost center.
4. In OKB9 I've assigned a couple of cost elements.
Please notify if there are any more steps that I need to configure for getting the right results.
If you have any material possibly with screen shots, pls do forward the same to: [email protected]
Regards
Kim

Hi,
I hope you have carried out the following activities:
1. Carry out standard cost estimate for the materials involved.
2. Check KKPAN to see the cost details of the product.
Need more details on the steps that you have carried out so far.
Regards,
SGP.
P.S - assign points incase the info was useful.

How to Run a Cost Estimate with Budgeted Values parallel to the Std Cost Estiamte

Hi Experts,
My client want to run a parallel cost estimate with Budgeted values for each type of cost in a similar process like standard cost estimate(currently only Std business run only the std. cost estimate). Below will be provided to run the said cost estimate.
     1. Budgeted Cost for cost elements against each cost center
     2. Re-posting/distribution will be required run to allocate and apportion the cost from service cost centers to Production cost centers
     3. All Planned(future) Material Cost will be provided. (note that the valuation strategy of costing variant of standard cost estimate has below sequence
     4. Budgeted activity quantities will be provided. (Cost and activity qty for Kp06 and Kp26)
Based on the above data business need to run a cost estimate with budgeted values parallel to the standard cost estimate(based on planned values), which will be compared with actual then Budget at each months.
Simply an alternative cost estimate with budgeted values for a given period for all materials.
Kindly advice the possibility of such a cost estimate in the system and if possible pls. mentioned the Process in order and configuration steps for the same.
Thanks in advance.
Aziz

Hi..
You can define costing variants which have valuation variant for budgeted values parallel to the standard cost estimate in Customizing for Product Cost Controlling.
You can define target cost versions using above costing variants under the customizing transaction OKV6 as below picture.
When you calculate variances, you can check “all target cost version” flag to calculate variances for all target cost versions in the controlling area as below picture.
You can analysis the difference between actual cost and several budget cost using target cost version as below picture.

Target Cost not captured in the production order.

Dear All,
I have created cost estimate for the FG material and moved the standard cost to FG material and created the production order.
In the production order ,I could see the Actaul cost & Plan cost,but the Target cost is ZERO.I have checked the entire and PP & CO settings ,it is OK.
Please let me know that what could be the reason for not capturing the Target Cost.
Regards
Subbu

Hi Subbu
1. Have you released the cost estimate from CK24 before GR from prod order? Check if field Current price in Costing 2 view is not Zero
2. If your contr area currency is different than comp code currency, then your costing variant should allow you to release the cost in contr area currency as well.. T code OKKN ("assignments" tab)
3. Check if target cost version 0 is defined properly and assigned to your contr area
4. check if variance key is there in your prod order.. you can assign default var key to plant in OKVW
5. Execute Variance calculation KKS1/2/6
Regards
Ajay M

Product cost estimate

Hi Experts,
Can somebody explain me the theoritical point of need for product cost estimate. From my know somepeople say we need to enter the standard price in the cost estimate tab of the material master, but sometime i see that when we run the CK11n the price automatically updated in the standard price field of the material master when we mark and relese the std cost estimate.
Do we need to enter price in the material master before the cost estimate for the materials or if we do the cost estimate do we do cost estimate only for the finished products so that all the cost under that product will be calcualted or do we need to do cost estimate for all material raw material, HALB & FERT?
what is the purpose of cost estimate and the result of cost estimate?
Thank you
Edited by: Nivi ram on Dec 29, 2009 9:52 PM

Hi Nivi,
Partly I agree with Pradeep, but I would to add more information regarding product cost estimate concept.
Maintaining material master on Accounting view or Costing view is mandatory prior to run Product Costing. It is true, by maintain price manually you cannot get cost breakdown or what so called as cost component structure. It is initial price which then later can be updated by "process Marking and Release" product cost estimatel.
How the system get the value of material costs and process costs are defined by Costing Variant. Costing variant control how the system find the BOM and routing to calculate the material costing and the production costing. System will access the material and activity cost based on Valuation variant in the Costing variant. I am sure you can costing variant use in the CK11N.
When the product cost are free of error then, you can go to the process to utilize the product cost estimate to update the material master with CK24 ( update material master indivdually). You can also use mass costing using CK40N - Edit Costing Run to maintain the costing and update material master. So product cost estimate can be run either for finished product (FERT), semi finished product (HALB) or other components
Hope this help.
Regards,
Irhasni

Cost estimate of the product

Similar Messages

Maybe you are looking for