Cost Price Calculation

Hello Gurus,
How to calculate the cost price of an Article in Retail, how does the system calculate it?
I did try looking for SAP note for help. However I couldnu2019t find one. Would appreciate your responses.
Thank you for your time in advance.
Regards,
Gareth.

Hi Gareth,
If by cost you mean the moving average price the system deos the calculation as mentioned below
MAP = (Current stock value + Receipted stock value) / (Current stock quantity + Receipted stock quantity).
For e.g. if you had 5 quantities of material X with unit price as $10 your current stock value is $50.
now if you take a GR 10 quantities of the same material wih unit price $15 your receipted stock value will be $150.
The MAP in this case will be: (50150) / (510) which is $13.33.
Regards
Kaizad

Similar Messages

Cost price calculation of raw material

I want to know how cost price of raw material is calculated in sap. Is it when ever price changes we have to go to each material code and change the price or we can have our own policy?
Edited by: gururaj gadgoli on Sep 18, 2008 1:05 PM

Dear,
For Raw material costing please have a look at :
http://help.sap.com/saphelp_erp60_sp/helpdata/en/b8/9c76a0c89c11d189990000e8214595/content.htm
and also
http://www.sap-basis-abap.com/sapcostd.htm
http://www.sap-img.com/materials/price-control-v-or-s-in-material-type.htm
Regards,
Syed Hussain.

CO PC - Cost Split / Price Calculation

Hi.
When i do the Actual Price Calculation of my activites, i have a problem:
We post to the Cost Center, some "cost elements" that are not included in any "Spliting structure" tcode OKES.
When we do the Actual Price calculation, this cost elements are considered in the calculation of the price of my activities. Exist any customizing to avoid this.
This is an example:
Cost Elements: CE01, CE02, CE03.
Activity ACT001
CE01 and CE02 are asigned to a Split Sturcture with ACT001, but CE03 is "free".
In my cost center, we "DEBIT" :
CE01 --- 100 usd
CE02 --- 100 usd
CE03 --- 100 usd
and we post 50 hours to the cost center.
In actual price calculation, the hour must cost (100 + 100) / 50 = 4... but the system calc ( 100 + 100 + 100) / 50 = 6 usd / hr

The problem was the Weight in the rule, ans the equivalente number in tcode KP26...

Cost splitting and Actual price calculation

Dear all,
What is the difference between cost splitting and actual price calculation?
Thanks & Regards,
Ar

Hi,
KSS2 (splitting) is fixed cost splitting based on defined splitting rules. Fix cost splitting means, although the cost are activity unindependent (=FIX) they are splitted to each actual activity unit,... (based on the splitting rule you use)
This is/can be a prerequisite for calculating actual activity rates, which is done by KSII (actual price calculation).
best regards, Christian

ME21N--Quantity conversion error in net price calculation

Hi MM experts,
Issue: while creating PO, when attempting to add the net price for line item. but system removes the cost and gives the follow error message says "Quantity conversion error in net price calculation".
The system was not able to convert the order unit into the purchase order price unit. Possible reasons:
i) the conversion results in a net price that is too high, or
ii) the conversion factor for the units has not been properly maintained.
iii) Check whether the units of measure and their conversion factor are correct.
I have checked material master>unit of measure> 1 PL = 22 KG maintained.
Can you please tell me how to resolve this issue?
Appreciated early response.
Thanks in advance.
Suresh

Hi Suresh,
Please check on Material Master Data - Accounting 1 tab - Price Unit
Moshe

Moving average price calculation logic of material with Price Control "S"

Dear Gurus,
As you know that there is a Moving price and standard price icon in the material master.
I want to understand the calculation logic of the moving average price of the materials having price control "S"
How the system calculates the MAP for standard price materials? The receipt from the process order I suppose is valuated at the process order cost after settlement, but if the issue has hapened for the material does the system recalculate the issue price also?
Below is the sample process order receipt and issue scenario:
Receipt from process order 161000000223
300 kg and GR at standard cost value is Rs 5892
Issue to process order 162000000294
250 kg and GI at standard cost value is Rs 4910.
Thus the balance at period end is 50 kg and balance at standard cost value is Rs 982.
Here in process order 161000000223 the actual cost is 10 Rs. Then how will the system calculate the MAP?
Thanking You,
Amit Dhanurdhari

Hi
Try the following calculations,
One of them will work depending upon your version and support pack
Expected MAP calculation ( As with price control V)
= ((Qty before transaction*MAP + Transaction Qty * transaction
Price)) / quantity after transaction
New Method ( when price control is S)
= Old MAP + (Price Variance w.r.t Standard Price/Qty after transaction)
Also go through the following notes,
Note 1225167
1253944
518485 FAQ: Valuation of goods movements
212286 Overview note: Valuation during goods movements
209864 Moving average price is disproportionately large
202166 Collective note: Statistical moving average price
185961 Moving Average Price Calculation
I have done extensive research on this, let me know if you need to know something specific.

VPRS - Cost price from sales to billing not valuation record

Hi,
I need to get the cost to flow from the sales document to the billing document for the cost price.
We allow selected users to change the cost price at the time of the sales order. But when I create a billing document the moving average price is determined and not the cost price on the sales order.
In copy control pricing is 'G' and price source is order.
Is there a way around this via configuration ?

Dear Javaid
Can you confirm that the sale order quantity and the billing quantity are same. In most of the cases, these would be different and hence the cost also.
Meanwhile, in V/06, for this condition type VPRS, ensure that the Calculation Type is "C"
thanks
G. Lakshmipathi

Cost/Price diffrences posting (PRD)

Dear ALL,
I am facing the issue in (PRD)Cost price diffrence account postings.
In Article Master (Retail) using Moving avg price while doing GR price diffrence posting to PRD account due to negative stock indicator in Article master.
Ex : In Article master having negative quantity 1 at MAP 10.
Now i am procurring 2 qty at MAP 20 with purchase record. while doing GR for the qty 2 system calculating for 1 qty at 20 and 1 qty calculating 10 at old MAP diffrence 10 rupees posting to PRD account .
This is wrong this needs to go Inventory but it is going to PRD, please let me know how to avoid this with out unchecking negtive qty in Article master.
Please respond
Cheer's
Ram
Edited by: Ram on Mar 19, 2010 11:02 AM
Edited by: Ram on Mar 19, 2010 11:07 AM
Edited by: Ram on Mar 24, 2010 4:39 PM

Hi,
Check your settings in OBYC.
Regards,
Mohan.

In Which table Cost Price of Items stored in SAP?

Hi Friends,
I am extracting Items details using DI API.
I want the cost price of items purchased? In which table
the cost Prices stored? And What is the Price which is
displayed in SAP B1 Item master data?

Hi Sooriya,
There are three calculation metods in SBO.
You find Basic Init. under menu Administration | System Init...
1. Moving avarage
2. Standard
3. FIFO
If I understand you correctly - you need to find costprice per item in stock.
I think there is not such possibility - The only way to find such link between Sales Order/Purchase Order is that user generate PO when creating SO. This way Base/Target document link is established. You need to make a join query of Sales Order/Purchase Order to find the linked costprice of the item.
Value AvgPrice in item wareh.table is only a calculated or fixed value.
Hope this helps something.
-Regards,
Geir

Wrong cost price in good receipt

Hello,
I try to to make good receipt, but when the document is done, there is wrong cost price. I tried to set various properties but I haven't found any solution.
Price and PriceAfterVat is Ok, only Cost Price is wrong.
Is there any way how, can I set the Cost Price, or how it is being calculated by the SBO ?
Thanks
Peter Bordac

HI,
way to modify the price of a material in the good receipt without a purchase order?
I am not sure what you want price of goods receipt means material price
try following
MR21 and change material price
Regards
Kailas Ugale

Authorization control for actual price calculation

Dear all,
I found that there is no authorization control for actual price calculation(KSII), this means user can calculate actual price for all cost centers, even this cost center belongs to other company. Is there a way to control this?
Thanks,
Ben

Hi Ben,
By SAP standard we do not have the control. we also have the same situation. We are venturing in to Realisation phase and we decided to have some kind of program (development) to control this.
Please let me know if you find some better solution
Best Regards
Surya

Actual price calculation

Hi Experts,
We have this scenario:
1. Activity prices are entered manually in KP26.(Activity type indicator=5)
2. At the time of CO11N only POWER activity will confirm.
3. Executing CPTA for overhead allocation.
4. KSS2 for power activity
5. No splitting for other cost elements
6. KSII Actual price calculation
7. MFN1 Revaluation of order
After revaluatin of order when i am checking actul cost for activities only power cost is coming.
Please find the enclosed print screens for same above process.
Please guide me how to get the actual price calculation for other activities.
KP26 :
KSS2:
KSII:
CO03:
Regards,
Vivaan

Hi Rajneesh,
Yes Splitting rule is Activity only.
Ex.
1.Order Quantity = 1000
2. I confirmed yeild 500 Qty & power activity 200 in CO11N.
3. Now when i execute CPTA for that order its calculating like below.
4. KSS2:
KSII:
Now actual price is coming same for other activities except power.
If i maintain no split structure that time in KSII only power actual price coming as print screens posted in original query posted.
Please advise me on Actuall price calculation as per our business scenario.
Regards,
Vivaan
Now my client is asking is as below
Cost center report xxxxxx
Water GL cost = 60000
Water Qautnity=1000(This is PO Total order quantity)
Water actual price=60000/1000 =60
Confirmed Quantity= 500
Actual price calculation for water = 500*60=30000
same for other activities also.
Please advise.
Regards,
Vivaan

Actual Price Calculation (KSII)

hi,
I am not able to get the actual prices for my production order.
I maintained certain settings for actual price calculation in OKEQ.
Does it is mandatory to run the MFN1 (Revaluation of actual prices) before the KSII.
Srinivas

Hi Sateesh,
Please find below the process for calculation of Actual Activity Prices:
1. Define Splitting structure, rules (method). I am sure you would have done this
2. Assign the splitting structure to Cost Centers. I hope you would be done this as well
3. Actual values (Costs and quantitative details) will get collected to cost centers in the following way:
- Quantities will get collected to Cost Centers once the confirmation of activities are done for the production order. Please make sure that "Record Quantity" check box is selected for the relevant secondary cost elements.
- Values will get collected from FI to the primary cost elements
you may check whether the values have been properly collected to the cost center using the cost center reports
4. Execute cost Split using - KSS2
5. Then calculate Actual activity unit price - KSII
6. Once the prices are successfully calculated, you can check the prices in KP26
7. after this process is completed then you can revaluate you production orders using the actual activity prices
I hope i made is clear.
Let me know if you need further details in this regard
Surya

Actual Price Calculation Issues

Hi,
I need explanation on how the system calculates actual prices in KSII.
In my cases i maintained Rs 1.00 as variable price for my activity type and cost center combination in KP26. My planned activity is 1000 Mins and actual activity is 3600. in KSII system is showing 2129.64 as actual price calculation. how the system is calculation as 2129.64. If i see cost center report it is showing that over absorption as -2600.
Please guide me on the actual price calculation.

HI,
KSII - Actual Cost/Actual Qty.
Please check what is your actual cost and Actual qty. in your cost center report and check. Planned qty. or Planned cost is not taken for consideration during KSII.
Bye,
Ramesh

Actual price calculation configuration

Dear experts,
What are the configuration settings required for actual price calculation in product costing?
Regards
Jay

Hi,
please find below the list of activities that need to be done to calculate the actual price calculation:
Config requirements:
1. You have defined the splitting structures
2. You have assigned Splitting structure to Cost Centers
End user side:
1. KSS2 - Execute Actual cost splitting
2. KSII - Calculate Actual activity price
Please let me know if you need futher details in this regard
Surya

Cost Price Calculation

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