Cost  of finished product repetitive manufacturing

Hi,
My clients produces 5 different finshed products always. I want to map the scenario in Repetitive manufacturing.
Is it possible in REM to get the actual cost of production of 5 products separately?? fir example can i get cost of finished product 1 as Rs200, in the month of Jan2009 for 10 quantity, cost of finished product 2 in the month of Jan2009 for 5 quantity etc etc .
Regards.

Thanks to all for their valuable inputs.
Dear Mangalraj: Its really a challenge for me to decide whether to go for REM or not. The reason why I am not going for discrete is :
1. Client doesnt know how much of ( for example) fertilizers it issues for finished 1 or finished 2 . client says he  knows that in a month how much he has used  for example 100 kg of fertilizers in total, not on basis of finished goods. So, i think i will have problem during BOM creation and goods issue in particular.
2. Since finished products are rose plants, jasmine plants etc, client says i dont how much to do Goods reciept. few plants may still be not ready to be able to do goods reciept.Client says its very difficult for me to count flower plants everyday and then say out of 1000, 10 are ready to be done Goods reciept and 15 are dead so these should be scrapped etc.
These are the resons why i thought it to map to REM. But client also wants to know price of each plant , means whats the price of rose plant(per plant), price of jasmine plant( per plant).
Request you all to throw some light on this..
Regards.

Similar Messages

  • Actual Cost for Finished Products

    Hi All,
    For Finished Goods calculation will use Semi finished Goods and Raw Material, while calculating the Finished Goods in cost object controlling system is picking the Standard Price Multiply Actual Quantity of semi finished goods.
    My Client requirement is to calculate the Finished Goods based Actual Quantity Multiply Actual Price.
    Is there any standard settings available or not?
    Regards
    Srinu

    hi..
    If you do not want to activate ML then all materials defined as price control "V" and Price deetermination as "2"
    kkumar

  • Production cost calculation for non discrete manufacturing

    There is a problem I am facing in B1.
    We are into manufacturing of chemicals, wherein your output is never exactly same as what you have given in Bill of materials or at the time of 'issue to production'. For example, I issue goods for a product X thinking that I will get 10 kgs output, but after actual production, the output may be 9.9 kgs or 10.1 kgs or 9.7 or 10.2 or whatever. The output will be close to expectation, but never exactly same. Now, the problem is, the cost of finished product is calculated at the time of issue, and so irrespective of how much output I get, the cost of producing it per unit remains the same, which is not the right way of doing it. It should calculate based on the output received (ie. total cost of inputs divided by output quantity), so when I get more output, the cost of manufacturing will be less, and vice versa. This is also resulting in incorrect journal entries between raw materials to work in progress (WIP) in 'issue to production' document and WIP to finished product in 'Receipt from production' document.
    How do I solve this??

    The process is:
    1. Write a production order and based on it print the production instructions. (I assume it will be a repetitive process with more then one receipt from production.)
    2. When the production of a portion is ends, copy the original order, modify the quantities in it according to the actual component and result quantity, make a receipt from production based on it and close this order.
    3. For the next portion repeat the process described in the point 2.
    4. When there is no more production based on the original order, you can close it.
    (Probably there is no need for any stored procedure. )

  • Repetitive manufacturing:backflush

    Dear experts,
                      At my client place , repetitive manufacturing scenario is there.
    While doing back flush, I am facing an error "Argument 1061 not contained in table T437D"
                                     "Message no. RM001"
    Please guide me where I am going wrong in customisation.
    Regards,
    Sameer

    Dear Sameer,
    check for this 2 settings,
    SPRO-Production-Repetitive Manufacturing-Planning-Define scheduling parameters for Planned orders (OPU5),Check
    *whether for order type * or for order type PE - Run Schedule*Quantity for Plant RA01 whether you have maintained the
    relevant required parameters.
    Then also in SPRO-Production-Repetitive Manufacturing-Planning - Planning Table-Maintain distribution for Planning
    table whether you maintained the setting for the plantRA01.
    Once after doing this setting,it gets updated in table T437D.
    Regards
    Mangalraj.S

  • Material Valuation for Finished Product in Production Scenario

    Dear SAP Gurus,
    Kindly recommend appropriate Material Valuation Control for Finished Product in manufacturing scenario. SAP recommends pricing control 'S' (Standard), but my client's buying nature is not periodic(varies), they buy material on requirement basis (On actual material consumption ) which is very frequent. Pricing for each buy also changes due to the market conditions. You are requested to suggest me appropriate Material Valuation Control (either S / V) for Finished Product along with reasons, advantages & disadvantages for the same.
    Thanks,
    Shantanu

    Hi Alll
    Well one disavantage in material with 2/V for production consumption is in case of incorrect goods receipt, incorrect price for example, all your consumption will be wrong.
    For correction you would have to reverse all production posting, correct the goods receipt and repost the production confirmation.
    If you were using 3/S configuration, all consumption would be done in standard price and at month end material ledger would calculate the actual price for price revaluation. People from MM would have time to correct the entries during the month.
    Regards.

  • Does Repetitive Manufacturing Supports CO-Product Costing as well.

    Please can any one answer whether Repetitive Manufacturing  supports the C-Products costing.
    I have 6 Co-Products coming out of my process and cost of all should be calculated and shall be taken as benefit for Main product costing.
    Thanks and Regards
    Khadeer

    Hi,
    Are you asking whether SAP PP module support co-product as compare to PP-PI module?
    Yes, SAP PP module support co-product, in the BOM item basic data screen (CS01/CS02) you can indicator whether the item is a co-product or not.  You should post this to PP forum instead of MM forum.
    best regards,

  • Change in finished product inventories / cost components

    Hello,
    We are in the process of implementing SAP and couldn't get an answer to the following.
    Our understanding is that the production cost of each finished product is calculated by SAP based on cost components. After manufacturing, the finished products are transferred to the finished product inventory. The change in finished product inventory account (say 713000) is credited with the production cost of the product.
    Instead of having this single 713000 account impacted, we would like to have the change in finished product inventory broken down into several, say 713001 raw material component in finished product, 713002 labour cost component in finished product, 713003 subcontracting cost component etc. Can we get SAP to credit automatically each of these accounts based on the cost component (or group of cost components) information in the system ? How should we configure it ? (is there a link between the cost component or group of cost component and the account)
    Many thanks for your help
    Best regards

    Hi Vincent,
    In my understanding you are not clear with the requirement and therefore you are struggling with SAP. Please understand the following:
    1. The posting of GL accounts are determined by valuation class in material master. So if you want to post on different GLs please define those many valuation class in MM and assign the correct Valuation class to FG goods.
    2. When you confirm the production, SAP post the goods issue (i.e. material you define in BOM) by debiting the Material consumption account and credit  the invertory accounts. And also post the goods receipt posting by debiting the FG inventory account and credit the Factory output a/c.
    3. Here you have to convience your client that it is best pratice to have one inventory account for one material type, like RM inventory, SFG inventory and FG inventory. Normally we classify the consumption posting in different GLs like Material consumption, Labour consuption, Overhead utilization etc. and that you can define in your cost component structure by grouping the relevent GLs in given cost component items.
    4. You have to explain them how SAP works in product costing and how GL documents are posted. You have to also explain them the posting impact in P&L and BS.
    I will suggest that you should rediscuss the requirement and explain them the SAP way of valuation and posting. It is a big change management issue and as a CO consultant it is most challenging task.
    Thanks and all the best,
    Vivek

  • Manufacturing finished products from other finished product(co11n)

    Hiii all,
    Please can any body tell me how to avoid or block 261 movement type for some material..? we have some products which are manufactured with finished product then when we use CO11N to report the consumption: automatically that finished product used for manufacturing is s reported as if the raw material (261 mov)
    THANKS!!!

    Hello Abelo,
    First I would Like to understand in which country you / your client is. This is very important as in India there are Excise Tax Rules those ask you to submit the status of FG materials at the end of every month end. Now if you are consuming one FG material to produce another FG this is in general not applicable in Indian Scenario. (I am not aware about other countries).
    Now your requirement is "Not to consume 1 FG material while posting the production of another FG" (Correct me if I am wrong).
    In std. SAP this is possible as well as not possible.
    Possible:
    1.In the Bill of Material of FG2 (Header material for FG1), you can mark the component (FG1) as Engineering relevant and not Production and Costing Relevant. In this case, system will not propose the material for Back Flush.
    2. Mark Component (FG1) as Bulk Material in MRP2 view. System will not propose this material for Order Release as well as Backflushing (261 movement type).
    Not Possible:
    This is more of a discipline issue. If you are converting the One FG to another FG without consumption, How you are going to match the Stocks of Component. There will always be mis match in Physical and System Inventory. How you are going to address this? There will be Financial Impact of Inventory in this case.
    I suggest, please check the feasibility of stocks verification and then try solution given above.
    Please check and confirm whether you succeed or not.
    Rahul.

  • Average Costs of the Finished Products

    Hi,
    We are using the process order concept and we are calculating the costs of each FG seperately and our finished products are different kind of sizes and types.
    And the requirement here is that if we want to calculate the average cost of the two FG how we can do this ?
    For Example
    Product 1 is manufactured and the arrived cost is $ 30
    Porduct 2 is manufactured and the arrived cost is $ 10
    And if we use the ratios of 60 and 40 and we determine the avergae cost of (3060%+1040%)/100= $ 22
    And we adjust this $ 22 with Product cost of A and Product B.

    What is FG?

  • CK11N Costing variant Repetitive Manufacturing

    Hi ,
    T code : OKKN   we are able to find the Costing variant - PREM -Repetitive Manufacturing Version.
    While costing the productin in CK11N , Costing Variant does not display PREM.
    Could you pls suggest how to find.
    Regards

    If you go to OKKN, you will see that PREM is confiured as a Prem Cost Element.
    Ck11N, looks at planned values for product Costing, therefore this cannot be used.
    You cant use PREM, even if you were to copy it, you cant change the field.
    If you copy a standard one, then it will appear in CK11N, i.e. PPC1, however if you copy PREM it will still not appear.
    it appears to be down to the Valuation Variant, and it seems that 19 is not a recognised value for CK11N.
    Message was edited by:
            Mark Chalfen

  • Production Order in Repetitive Manufacturing

    Hi All,
    We are using REM scenarios. But we need to use the Production order for some material in the same plant where we are already using REM.
    Is it possible to use both Discrete and REM for the same material but at different periods? Using Discrete for some period and switching over to REM. Is there is anyway to use the above mentioned scenario.
    Kindly suggest.
    Regards,
    Sureshbabu G.

    Hi,
             As we know that In Repetitive Manufacturing, components are often staged at the production line without reference to a particular order.
    To create the demand program again for your production order, you must define the planning strategy for a product. Planning strategies represent the methods of production for planning and manufacturing or procuring a product. and run the scenario accordingly.
    Regards
    Chandra

  • Finished Products At Real Real Cost

    Hello Gurus,
    I'm working on a requierement where the cost of all finished products need to be calculated according to:
    1) Real material price of all components (raw materials and only raw materials of semifinished products)
    2) Real material consumption of all components (raw materials and raw materials of semifinished products)
    The actual costing structure is configured to calculate costs on the material list and operations. Also, the system is configured with the standard price control for semifinished and finished products and MAP for raw materials. We haven't activate the material ledger yet.
    Standard cost cannot be modified.
    In resume:
    Standar costing and all the process is working fine, but we need to calculate real raw material consumption and real raw material consumption of the semifinished product that is being used in the finished product at real prices.
    Thanks in advance.
    Regards, Agustin

    Change the material masters to be moving average.
    But make sure your invoice and other administration is up to date...

  • Raw mat and procured finish product cost

    we need to run cost run for both raw material and product, we want have the following scenario:
    first mark the raw mat. cost run,  then our finished product will get the future price of raw mat and base on BOM to update the future price of finished product.
    after we mark finished product, we then release raw mat standard price and subsequently release finished product.
    is any solution we can define  costing variant for above scenario?
    we have another scenario, we need to run costing run for finished good A, but this product A 's BOM contain only one procured finished product B, B doesn't have BOM and purchase info record, how can we change product B 's price, so finally finished product A 's standard price will be updated upon costing run?

    Hi ,
    In Costing Variant .. we have a Tab for valuation variant . In the valuation variant type , we have seperate valuations for raw Materials , activities, subcontracting etc .
    Cost Estimate with Quanity Structure will refer to the Costing Variant and compute costs .. Hence , maintain Costing Variant and Valuation Variant properly..
    This will solve both your issues..
    Kindly revert back for any further questions..
    Regards
    Sarada

  • Evaluation Structure for Production Order and Repetitive Manufacturing

    Dear PP friends,
    I am trying to create a Evaluation Structure with reference to an Evaluation Structure (t-code MCR7). I need to join the Standard Evaluation Structures S021 (Production Order) and S026 (Material Usage), but S021 is not appearing to choose characteristics and key figures.
    Does anyone have suggestions?
    My requirement is to create a report where I can see goods receipt x goods issues per order.
    Thanks in advance.
    Marcos

    Hi,
             As we know that In Repetitive Manufacturing, components are often staged at the production line without reference to a particular order.
    To create the demand program again for your production order, you must define the planning strategy for a product. Planning strategies represent the methods of production for planning and manufacturing or procuring a product. and run the scenario accordingly.
    Regards
    Chandra

  • WIP FOR REPETITIVE MANUFACTURING WITH VALUATED SALES ORDER

    Dear All,
    We are in the process of implementing Repetitive manufacturing with valuated sales order(MTO). I want to clarify whether in this scenario WIP will be generated.
    Since, at the time of final backflushing, what ever GR done for finished goods, the GI for its components will be done automatically. The components will be issued based on the BOM. I think in this scenario WIP will not be there.
    Please tell me whether i am correct.
    regards
    ranga

    Thanks. I have another scenario. My client wants to transfer all cost of HR,Admin, finance etc and other indirect production cost center cost to production cost center. I mean they want to charge on the product. I have to production cost center. Client will give me the basis for allocating the cost. I have to do assessment and distribution for cost allocation
    But, I want to clarify how do i include the admin, hr or finance and indirect production cost center cost in cost component structure if i do the above process.
    How to do the cost splitting.
    regards
    ranga

Maybe you are looking for

  • Unknown error 4280: please help.

    For some reason, the newest version of iTunes (7.0.2) has completely locked up my burner in any application, though I can still rip CDs. Even reinstalling an old version has not worked. I have heard this is due to some GearWorks program that comes at

  • How do I make a tiny icon for my site?

    Hi there, So I was wondering, is there a way in iWeb to make a tiny icon like other sites have in the address bar? Thanks a bunch! Raymie.

  • Apple TV 3 Refresh Rate

    Why doesn't the Apple TV 3 allow a refresh rate of 24fps? I read somewhere that the Apple TV 2 only output at 25 or 30fps because 720p/24 wasn't an official standard. But 1080p/24 is! The content sold on iTunes is 1080p/24 and Blu-ray players and mod

  • Can I disable Fill & Sign toolbar?

    The latest 11.0.09 release of Reader by default opens the Fill & Sign toolbar on any PDF with fillable forms.  My web application makes heavy use of embedded PDFs and fillable forms, but I do not want the toolbar to appear.  I cannot seem to find any

  • JPA OneToMany mapping whit toplink...

    I have a problem when i want to map a OneToMany unidirectional relation using toplink. Toplink maps the relation as a ManyToMany relation instead? Code in a class called Car: @OneToMany(cascade={CascadeType.PERSIST, CascadeType.REMOVE}) public List<W