In which scenario sales order costing is needed ?

Is it mandatory to have every time for a sales order to have sales order costing?
is it mandatory to have SO costing in MTO scenerios always?
in which scenerio SO costing is not applicable in MTO scenerio ?

Dear ,
POC is a Cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a materia.
Product cost collectors are independent of the production type. This means that you can collect actual costs on product cost collectors in the following production environments:
In order-related production (that is, when you are using production orders) when you want to analyze the costs by period rather than by lot
In process manufacturing (that is, when you are using process orders) when you want to analyze the costs by period rather than by lot
Repetitive manufacturing : In repetitive manufacturing you always use product cost collectors as cost objects.
Few important points from Forum Experts 
u2022 Object in cost accounting used in Repetitive Manufacturing.
u2022 A separate product cost collector can be created for each production version or material. The collected costs are settled to inventory at the end of the period.
u2022 The functions performed for product cost collector during the period end closing process include :
u2022 Work in process (WIP) caculation
u2022 Variance calculation
u2022 Settlement
u2022 In Repetitive Manufacturing, all costs attributed to the production of a material are collected on a product cost collector and settled periodically (period-based Controlling).
u2022 The product cost collector is settled periodically according to the posting period (for example monthly) .
u2022 For a material , product cost collector is made for each version
u2022 The actual cost collected can be viewed through product cost collector
you cannot use product cost collectorsfor the following:
- Production orders or process orders that are manufactured for a sales order stock or project stock
- Production orders or process orders that are part of a collective order
- Joint production environments
Hope this will give you an idea .
Regards
JH

Similar Messages

  • Sales order costing - MTO Scenario

    Hi Experts,
    I am working on SAP ECC 6.0 on a Make-to-order scenario.
    I have created sales otder; run MRP for the sales order and converted the planned order to Production order and confirmed the production order.
    But I don't know the period end processes of make to order scenario. Please answer my following queries:
    Whether <b>WIP</b> will be calculated at Sales order level or individual production order level related to this sales order?
    Whether <b>variances</b> are to be calculated at each production order level or at sale order level?
    Which t-code should be used for calculation of variances if it is calaculated at sales order level? The production orders have TECO status. 
    Whether variances are to be settled at sales order level or each production order level?
    Which Transfer Control should I use in Costong Variant "Sales Order KDN" or "Complete Transfer"?
    Please also forward me some documents, if you have, which explains the whole step by step cycle from creation of sales order to settlement of sales order.
    My email id is  [email protected]
    Request your help.
    Thanks & Best Regards,
    Bijay Kumar Deo

    Hi Bijay
    To add few more checks and points - please note the following
    1)  Whether WIP will be calculated at Sales order level or individual production order level related to this sales order?
    A)  You need to selected RA for sales order in WIP RA version to ensure WIP is calculated for production orders which are linked to sales order
    2)  Whether variances are to be calculated at each production order level or at sale order level?
    A)  This would depend on whether u r following valuated or Non Valuated sales order stocks / costing
    If is is non valuated u cannot determine variances, actual costs of production order are settled to sales order item
    If it is valuated sales order following sales order costing, you can transfer production varainces to sales order item
    3)  Create settlement profile having sales order as valid receiver and assign profile to production type created for the sales order - MTO scenario
    4)  Which Transfer Control should I use in Costong Variant "Sales Order KDN" or "Complete Transfer"?
    4A)  Suggested to have complete transfer as transfer control strategy
    Hope the above clarifies.  Please assign points if useful as a way to say thanks
    Any more suggestions / corrections to above points for the above scenairo are appreciated from forum members

  • Sales Order Costing. Error values, need BAPI or Userexit or Enhancements

    Hi Experts,
    I have a situation to solve the Errors in Sales Order Costing.
    My Error is,  its not splitting values equally,,, (BOM Item Price Values)
    for example...
    let i have a parent Item A.
    and Child Items as A1, A2, A3.
    Now the Qty of A is 100. for each item the price value is 50. so the total value is 5000/-
    Now If i need one A, then I need 8 A1's, 4 A2's, 3 A3's.and let think A1 value and A2 value and A3 value (single Unit ) are equal. and let the value be 100.
    but in BOM i can see all the values of A1, A2, A3 as same. (500, 500, 500) but it should be (800, 400, 300)
    The single Unit Price is not multiplying with Quantity, but its equally splitting.
    Please tell me Can I find and BAPI or Userexit or any enhancements or any Configurations to do.
    Thanks & Regards
    Dileep .C

    no replies and my thread was dead.

  • Sales order cost estimate with GIT account

    Hi,
    Business introduced Goods - in - Transit (Balance sheet account), so PGI will always post to GIT and Invoice it will get reversed.
    For one of the Configuratble material (MTO) scenario we need the Sales order cost estimate to get the Planned cost.
    When i try to execute the sales order cost estimate it says cost element doesnot exist for GIT GL (WHich is right).
    But with maintaining the GIT how to achieve the sales order cost estimate.
    I tried to create CE category 90 for GIT, in Cost estimate am getting error CE 90 not supported for Cost estimate.
    Kindly help this is kind of urgent req for us
    Thanks,
    Sudha

    Hello Ashley
    Yes, if you have done your settings correctly, especially Requirements class set up  (see the documentation link),  then the cost estimate will flow to a condition type in Pricing, usually EK01/EK02 conditions. These conditions are used to calculate sales prices (PR00) in cost-plus (mark-up) scenarios.
    Link: http://help.sap.com/erp2005_ehp_04/helpdata/EN/90/ba6da4446711d189420000e829fbbd/frameset.htm
    However Profit margin  as calculated in a sales order comes from VPRS condition  (which is based in Material Master) and is the difference of net value and VPRS condition value in normal circumstance.
    Hope other more knowledgeable experts will weigh in.

  • Sale order costing process : Help required

    Hello All,
    Belatted Happy New Year 2011 to all.
    I have a question related to Sale Order Costing. It goes like this,
    My client is into Pipe coating business who receives the pipe from the customers, coats it as per there requirements and despatches it thereon. There is no concept of FG here as its only the service he is doing on it and also when he receives the pipe there is no raw material cost on it. Raw materials for him would be chemicals etc which he uses to coat the pipe.
    And also this demands variant configuration from SD and PP angel.
    As this scenario is customer specific, it demands Sale Order based costing(Sale order cost estimate).
    My doubt is, how the sale order costing process goes with.
    In general scenarios, Make to stock, we use production order based costing where standard cost estimate is calculated for planned cost and actuals are incurred on PO settling the variance to COPA
    Similarly how the costing goes with if Sale order cost estimate is used. What i think is, here instead of Standard cost estimate for plan, we will go with Sale order cost estimate at sale order level, and incur actual cost at production order and settle the cost of Production order to Sale order. Correct me if i am wrong, and request you ppl there to explain me the process of costing in the scenario said above.
    apart from that, my client wants the flexibility to change the cost estimate at quotation level.
    Please suggest me with solution explaining the process of costing here.
    Thanks in advance,
    Ravi Kumar

    Hi Ravi
    Your understanding of the scenario is very much right...
    In your case, you need to have sales order as cost object...
    Process
    Your stock would be non valuated stock, because the FG is not your stock.. You are just doing a service
    Based on the characteristics chosen in the Sales orders, system would determine the Sales order BOM
    Based on sales order BOM, Sales order cost estimate would be calculated....
    You would receive the Customer pipe in your stock against the sales order... It would be a non valuated GR... You can track the Qty only
    Sales order would trigger a production order... The prod order can have its planned cost, which is only for information sake
    The Customer Pipe, Chemicals would be issued to prod order to coat the pipe... And also Labor/machine hrs may be confirmed
    There after your production order would be settled on Sales order
    Then you would do PGI (Post Goods Isue).. This will not trigger any accounting doc
    Then you do billing... The sales revenue would be posted on the sales order
    Then you settle the sales order to COPA.. This will close the cycle
    Configuration
    The IMG Settings required would be as below
    1. You would use account assignment category (AAC) E
    2. Create a Requirement class with
    a. AAC = E.... (Means sales order is CO Object)
    b. Valuation Indicator = BLANK (Means Non Valuated Stock)
    c. Costing ID/Costing Method = As per your choice to calculate the Sales order cost estimate
    3. Assign this req class to Requirement Type
    4. Give this req type to your PP/SD team.. They would assign it to Strategy group / Item Category to determine it in the sales order
    Regards
    Ajay M

  • Non Valuated - Sales order costing

    Hello All,
    We are planning to use Non Valuated - Sales order costing for our client. My understanding is as follows :-
    1. Production order is automatically created from Sales order created (for ex item 010 - Material X) : Production order 1
    2. Sub- production order is also created if there is material Y , in the BoM of Material X & needs production : Production order 2 (linked to Production order 1).
    3. When GR is done on any on these production orders - no FI entry is posted.
    4. On settlement value of Production order 2 is settled in Production order 1.
    5. Further Production order 1 value is flow to Sales order line item 010
    6. Revenue is generated from Sales order for this item, when Invoice is posted. Still not COGS for delivery.
    7. And only on settlement of this Sales order : FI posting is done for COGS.
    Please let me know whether my understanding is correct point wise. Thanks
    Now I have few questions to clarify, in above example :-
    1. Generally these are new product (Material X) hence no standard cost is available for them. When does the cost estimate happens in such scenario. Is it when the first GR of material will happen ? When do I start see this cost estimate in Sales order.
    2. Till the time Production order 2 & 1 are not settled ... Do we see WIP at the production order level when we run WIP calcualtion for production orders ?
    3. What about the variances ? I have read variance calculation is not possible. Can you please elaborate why & what is avilable other than that ?
    Thanks in advance for reading a long query

    Hi Rajeshwari
    1. If you use ABC - Then COGS split wont be available
    2. Main diff between Valuated and Non val stock - Is once you produce and till you sell, the stock will appear in your balance sheet....
    Non Val shud be chosen whe you make a material completely customized to the needs of a customer and the time lag between mfg and sale is very less....
    If above two are not the case, then stock must be non valuated
    3. Implementing the same template or introducing Val Sales order stock depends on the business needs.... The criteria to decide shud be based on (2) above
    Also, if the new business where you are implementing now is the same as the existing business which is using non valuated stock, then you shud stick to the same template
    4. Sales order cost estimate gets created during creation of SO, using the costing variant specified in req class... Not created during GR
    5. Sales order costing does not make sense during Non Val Stock.... Unit Costing or prel costing you use during val Stock
    Unit costing means you dont want to maintain a BOM... And you specify the components during sales order costing
    6. I dont think you can settle prod order 2 to SDI.. You can try to change the settlement rule... In my opinion, you can not do it
    Regards
    Ajay M

  • Sales order costing release not possible due to Goods in transti account

    Hi,
    Business introduced Goods - in - Transit (Balance sheet account), so PGI will always post to GIT and Invoice it will get reversed.
    For one of the Configuratble material (MTO) scenario we need the Sales order cost estimate to get the Planned cost.
    When i try to execute the sales order cost estimate it says cost element doesnot exist for GIT GL (WHich is right).
    But with maintaining the GIT how to achieve the sales order cost estimate.
    Can you please help me in this regards.
    Thanks,
    Sudha

    Hi Ajay,
    I have created GIT (B/S) account with CE category 90.
    but in sales order cost estimate getting message " inconsistancy in CE category" CE category 90 is not accetable it should be either 01/02
    can you please help to move forward on sales order cost estimate with GIT account
    Thanks,
    sudha

  • Sale order costing in Retail Business

    Dear Experts,
    We are supporting Retaill based clinet and also that same client using IS RETAIL ECC6.0. Now client is doing retail business as well as S&D also. Business needs that they want to see sale order costing for every trading goods ,which same sold to external customers through S&D customers.
    1. Is it possible to get sale order wise costing for retail trading article (HAWA) type.
    2.How can i make cost sheet for trading goods
    3.How can i share or apportion palnned cost to sale order
    Please support this appreciate and pls.forward user docs and customization settings for sale order costing.
    Best Rgds
    Suma

    I think you put this in the wrong forum

  • Sales order costing- engineer to order production

    hi
    we have a scenario where the production is started based on the sales order. The product is not standard product, for every  sales order the product changes i.e. the material code should be created along with the sales order at the same point.
    1. Bom is not available for all collective requiremnts at the time of sales order creation therefore the sales order costestimate calculated on the same day of sales order creation does not give the true picture
    2. the chance is that the product that may be produced for the sales order may be after 6 months also, hence the production people are not ready to create bom for the sales order related product
    my question is can we suggest sales order costing in this scenario.
    krishna

    Hello Krishna
    In this case, I think you should suggest for sales order costing with variant configuration since the product is not standard and changes for every sales order. The sales order BOM needs to be created and a cost estimate should be taken. If the details are not available then the sales people should edit the sales order through VA02 later and rerun the cost estimate. After the BOM is finalised the production process may start.

  • Duplicate Overheads in Sales Order costing

    Hi Experts,
    We are facing an issue in VA02 and VA22. Here we are getting duplicate overheads in costing as below image:
    Kindly help. I am an ABAPer and debugged for it but could not find any bug. So this functional approach could help, I thought.
    Thank you so much.
    Jayaprakash

    As Warren mentioned, you need to work with your CO specialist. To analyze the issue, more information on the process is needed. If the process involves sell from stock, then take a look at OSS 1972019 - Sales Order Costing: Duplicate Overhead Rates for Sell-from-Stock
    Or if it is a re-work scenario, you may need to implement OSS 1844495 - Rework for product costing: duplicate overheads and  1204894 - Rework sales order costing: Duplicate process costs
    Regards,

  • Subcontracting in sales order costing

    Dear Sapfans,
    We are having make to order with sales order process (sales order as cost object).
    We are having a scenario where we are sending the goods for an external processing (subcontracting) .
    After the MRP run, we are converting the purchase requisition to purchase order with account assignment E.
    At the time of doing GR of finished goods from subcon vendor, the system withdraws components from the sales order stock. Which means the subcontracting charges should be debited to the sales order
    However, I am getting an error for assigning cost object for GL account for subcontracting charges.
    Why is the sales order not being considered as cost object here?
    I have done sales order costing and saved the cost estimate.
    Any suggestions please?
    Thanks In Advance

    Hi Anulekha,
    Please see below scenarios
    1. Subcontract to inventory
    At the time of GR against subcontract Purchase order we have the following three entries
    A:
    Dr: Consumption account
    Cr: Raw material Inventory account
    B:
    Dr: Finished material Inventory account
    Cr: Change in Inventory account
    C:
    Dr: Change in Inventory account
    Cr: GR/IR account
    2. Subcontract to PP/SD order
    At the time of GR against subcontract Purchase order we have the following two entries
    A:
    Dr: Consumption account PP/SD order
    Cr: Raw material Inventory account
    B:
    Dr: Finished material Inventory account PP/SD order
    Cr: GR/IR account
    We are using both scenarios and working correctly.sales order is cost object in my scenario also.
    Hopefully this helps you.
    Thanks,
    Rau

  • Sales order cost estimate to be updated in Info Record (ME11)

    Hi,
    We have two plants: (a) Sales plant and (b) Manufacturing Plant.
    At sales plant, sales order (external) is created and for same external sales order we create another sales order (internal) at the manufacturing plant.
    At the manufacturing plant we have the option of doing sales order cost estimate (VA02/ CK51N).
    We want to update info record (ME11) at sales plant with sales order cost estiamte value at the manufacturing plant. How this is possible? please suggest.
    Regards,
    Bijay

    Hi
    Ask your SD guy which routine is used during the pricing.. You need to write ABAP code in the routine in order to fetch the values from the Sales Order cost estimate
    usually, the sales order cost estimate is stored in EK02 condition type... You can read the value from EK02 cond type in Mfg plant and update it in Sales plant
    br, Ajay M

  • Sales order costing is not possible for recursive configurable material

    User is creating cost estimate for sales order, where system is throwing above error.
    The diagnosis is like below
    The system recognized that the BOM structure being costed is a recursive production process in which configurable materials are used. This scenario is not supportive by sales order costing
    System resopose
    Material XXXX in plant XXXX can not be exploded further.
    If anyone has come across such error or knows the solution, please help.
    Thanks

    Answered

  • FM/BAPI/Method for Sales Order Costing

    Hi,
    I need the FM/BAPI/Method for Sales Order Costing.
    Which is calculating at run time while process of Sales Order Costing
    Can any one please help me out.
    Thanks
    Chinni
    Edited by: Tirumula Rao Chinni on Mar 10, 2010 3:04 PM
    Edited by: Tirumula Rao Chinni on Mar 10, 2010 3:35 PM

    Vinraaj, thank you very much for your advice and the time you've spent for the ask.
    I am searching for whether there is any SAP offered FM. Therefore, I did not think to check the background (code side) of the process by debugging.
    There is not any documentation about the FM that you have offered, in the system.
    So , I can not be sure about the usage of it, too.
    Thank you very much.

  • BOM not picking correctly in Sales Order Costing

    Hi,
    During Sales Order costing of configurable material Say ABC is configurable material(finished material) and it has 4 components. I am using standard sales order costing variant as PPC4. During sales order costing from VA22(quotation) of the material ABC(finished material) system take its first two components during costing. Remaining two components system does not take. It shows correctly BOM usage as 2. But two components are missing during calculation.. What may be reaon or special configuration is required for sales order costing ?
    Best Reagrds,
    Samrat

    Dear,
    please check your condition type : Ek02
    It is used for statistical posting. If you use this condition type, the result of unit costing is simply a statistical value which you can compare with the price. So, this can be can used instead of VPRS to calculate the profit margin for the assembly item.
    Please note the following points:
    1) The condition type must have condition category 'Q' (costing).
    2) The condition type must agree with the condition type defined for unit costing in the pricing procedure.
    So, EK01 & EK02 are the condition type that will display the results of the unit costing for certain type of sales document and can be used in Make To Order scenario.
    Sales order cost estimate can be flow to COPA. Where you have to maintain setting in COPA in Define access to Standard cost estimate for costing key select sales order cost estimate.
    For transfer SD to COPA you have to use Transaction KE4I here enter SD conditions with COPA Value fields.
    So, whether EK01 or EK02, these will determine from Requirement class configuration. Requirement class in turn there is requirement type and requirement type is determined by item category and MRP type when you cost a sales order (valuated/non valuated sales order) at that time when save the cost estimate then the cost value automatically gets populated in your condition tab. Hence, if the item is not relevant to sales order costing then the cost comes from VPRS.
    For more details please check below links
    http://wiki.sdn.sap.com/wiki/display/ERPLO/VPRS%2C+EK01%28ActualCost%29andEK02%28Calculated+Cost%29
    Std Cost Calculation in Sales Order - EK02 and by T-Code CK11N
    Thanks,
    Ram

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