Include Tool cost in Standard cost of material

Hi
I have a scenario where we use consumable tools in manufacturing the end product , which is 'nut'. We use roughly 80 tools in the manufacturing process. Each tool has its life. For eg. Tool A will be used to manufacture 10,000,000 nuts. The production lot size is usually 900,000 and the tool will be used for more than10 production orders.
Since the tool is being reused for various production orders, i have problems in bringing its cost. I cannot give 0.1 pc as the unit of measure for tool is per piece. If i give 1 piece, since its being reused, the cost will not be accurate and there will be huge variance.
Any ideas on how to deal with this?
Thanks

Hi,
is there an operation for tool usage within the production order where time confirmation happens?
And correlates the tool usage with the time confirmed?
If yes, post the tool consumption to the cost center that is a assigned to the work center that is used in this operation and in the cost center (plan) activity rate cover the tool cost overall.
Result: Each time confirmation valuated with the activity rate contains a portion of tool cost.
best regards, Christian

Similar Messages

How to include some costs in standart price on the base of material costs?

Hi,
the current client want to include some costs in standart price for the material on the base of raw material costs (according to bill of material). "Some costs" are costs for whole plant or workshop: electricity, gas, salary of some wokers an so on. These costs can not be ascribe to concrete finished products, but must be included in cost of goods manufactured. I assume to use cost center to collect these costs. Direct costs for raw material collects on cost collectors.
Now the problem by standard cost estimate:
1.The balance this cost center must be zero (it follows flegal requirements). Therefore I can not use overhead rates. Or I don`t know something?
2. I can create activity type, calculate its price on the base of planned costs of this cost center and use it in operation in routing for finished product. But in routing I can not use the costs of raw material to determine how many units of activity type must be confirmed. I can make only rule like: 1 Unit finished product - 1 Unit of activity type.
So, no chance?
P.S.
In fact there is no problem - I can use distribution of cost objects hierarchy
Best regards,
Yury
Edited by: Yury Pogorelov on Jun 17, 2009 4:33 PM
Edited by: Yury Pogorelov on Jun 17, 2009 4:33 PM
Edited by: Yury Pogorelov on Jun 17, 2009 4:34 PM
Edited by: Yury Pogorelov on Jun 17, 2009 4:35 PM

Hi Anu,
Putting the resource files in WEB-INF/classes is the correct and good way!
Simon

Custom SAP report used to display an average standard cost per material.

Hi All,
I need to implement a report with the following functionality,
This is a custom SAP report used to display an average standard cost per material. Standard cost data is stored in SAP at the Material/Plant level. This report will gather the individual Standard Costs at each applicable plant (restricted by selection screen input and additional logic specified in more detail in the u201CReport Fieldsu201D section) for applicable Materials (restricted by selection screen input; if not specified all materials should be returned) and calculate an average standard cost for each material. The corresponding Currency and Base Unit of Measure will also be displayed.
Additionally the relevant u201CCommodity Code/Import Codeu201D information should be displayed for each material returned. This attribute is also stored at the Material/Plant level. To determine the value of this field for each relevant material, the report logic must retrieve the values stored for each plant. If all values are the same, the value can be output to the report. If not all values are equal, a message u201CNot Consistentu201D should be output. It should be noted that if all values are u201Cnull,u201D a null value should be returned in the report.
Can any one provide me with sample code for the same??
Thanks Debrup.

Hello,
Also refer this [ THREAD|Re: error in Fleet management customising] and [link|Error when recording measurements in IFCU]
Regards
Nav
Edited by: Desire_Naveen on Nov 4, 2009 12:35 PM

Tool cost capturing and calibration of tool:

Hi, to capture tool cost, we defined tool as fhmi material type and included in bom. Accordingly it is issued to production (thru alternate unit) and tool cost is collected in production order. Now we need to do calibration also for that tool. To do calibration we need to define that tool as equipment as standard practice. What we feel that we are duplicating the data by doing that. Please advise is there any method to eliminate data duplication and to work with product costing as well as calibration. Please advise.

Dear,
Generally tooling cost will be obsorbed through overhead charges for a cost center. So best way go with overhead cost for PRT. And define it as equipemt PRT.
Regards,
R.Brahmankar

Actual cost of material in COPA

Hi Team,
We have implemented PP, CO & COPA our client has the requirement to see the actual cost of material in COPA as per their requirement we designed the KE30 report as product wise profitability report in that report we used the record types B( direct postings from FI), C(Order settlement), D(over head cost) from the copa assessment cycle & F ( SD billing).
1) Is it possible to see the actual cost of material( Including activity cost) in copa.
2) If it is possible please advise.

Hello
It is not possible to get the actual cost of the material in COPA. Actual cost can only be derived if you implement material ledger.
However in COPA we may come close to actual cost to some extent. The following configuration needs to be done:
1. Run standard cost estimate every month so that the price reflects the most recent material prices.
2. Define assessment cycles for auxiliary cost centers (whose cost should form part of inventory cost) to production cost centers.
3. Configure for splitting and revaluation at actual price.
4. Take the production variances to COPA.
5. Create a report to show the standard cost and variances.
One of the difference is that the total standard cost is for the quantities sold during the period however the variances will be for the quantities produced during the period.
Another difference is that the unabsorbed overheads could not be allocated to individual materials.
Hope this helps.
Sangram

PGI Should get block - without material cost in material master

Hi All,
The scenario is we want to show error message while doing PGI if the material does not have any material cost in material master. How it is possible? Will we able to do with standards?
Scenario: Material cost is nil in the material master, system should through error message if it do PGI for that material.
Please let us know to solve it out.
Thanks and Regards
Lakshmikanth

Dear friend
According to me this should not be SD consultants worry at all
1.The moving ave price or standard price needs to be mentioned in MMR by MM people depending on the material type and valuation class choosen and whether you are choosing accounting view
2.Most of the material types which comes for sales like FERT i dont think you can save their Material master records without mentioning either standard price or moving ave price in the accounting view
(It really surprises me that there is a material available for sale without mentioning either standard price or moving ave price in the accounting view of its master record) ( What i mean is it is already mandatory )
If not made then in OMS9 you can make it as mandatory
All these should solve your purpose
From SD side you can include VPRS condition type in the pricing procedure which will be statistical
Try changing that to mandatory and see what is the impact
I think now at sales order level itself you can control
Regards
Raja

Standard price of material to be included in pricing procedure

Hi Gurus,
Can I include the standard price of material from material master in my pricing procedure? If yes, how? Also, I want to tax 7% of this material in the pricing procedure. Can I configure a condition type this way?
Thanks,
Paul

HI John,
         1. Please maintain the condition type VPRS in your pricing procedure, the standard cost from Material master will come in to your pricing procedure.
        2. If you want to maintain tax in your pricing procedure you need to maintain Tax related condition type Ex: MWST and you create condition record for that condition type in VK11
        Define Tax procedure and assign to country (Please take help of FI people)
        Maintain Taxcode at FTXP
I hope it will help you,
Regards,
Murali.

Tool cost ammortize in component price

Hi All,
We have a case where component price is Re 1 per pc. Tool Cost is Rs 5000.00 and we have to ammortize the tool cost in 5000 Pcs of supply. After completion of 5000 Pcs Goods Receipt, system should change the price to Re 1.00.
How can we proceed, there is no facility in info record where we can maintain GR Qty 5000 Rate 2.00 and after that Re 1.00.
Please help.
Regards
Rajeev Gupta

Hi Rajiv
Tool amortization cost is the cost to be distributed to the material and has to be the part of material accessible value. To do that create a condition type in your regular calculation schema this you can do by copying a frieght condition type and set the controlling functionalities of this condition type as per your business needs. In this condition type try to assign subtotal 4, 6 etc..as you wish. Now go to your tax procedure in that for Base value condition type assign a routine 362. This is the standard routine. Here you bring the value of subtotal as a addition or subtraction as per your requirement. This you could do with a help of an abaper.
Reward if useful.
Regards
edwin

Production costs for material with price control V

Dear all,
Can anyone pls tell me, how will the costing occur for a material produced in-house and having price control 'V' ? I am not able to see the target costs.
Also kindly tell me the settings to be done in CO, like target cost version, valuation variant, costing variant, etc.
Thank you,
Shrenik

Rather than giving my own versions I have compiled here SAP inputs. Pl let me know if you require any clarifications:
Costing variant has the following components:
<b>Define Costing Types
Define Valuation Variants
Define Date Control
Define Quantity Structure Control
Define Transfer Strategy
Define Reference Variants</b>
<u>Costing type:</u>
In the costing type, you define the purpose of a material cost estimate by specifying, for example, which field in the material master record the costing results can be transferred to:
Update Cost Estimate
Standard price Standard cost estimate (01)
Tax-based price Inventory cost estimate
Commercial price Inventory cost estimate
Price other than std price Modified standard cost estimate or
current cost estimate
No update Any cost estimate
Define Valuation Variants:
Define Valuation Variants
Here you create a valuation variant containing the parameters required for valuation of a cost estimate.
You also specify which costing sheet should be used to calculate overhead.
Valuation Strategies
Material valuation
Here you define the sequence in which the system searches for prices from the accounting view or costing view of the material master record to valuate materials. You can also access prices from purchasing info records and condition types.
For material cost estimates, you also specify whether additive costs can be added to the selected price.
With configurable/configured material components and with procurement alternatives, the sequence defined here is ignored if the strategy "price from purchasing info record" was selected, in which case that strategy is always executed first. For more information, refer to the SAP Library in the component Product Cost Planning under Raw Material Costing or Mixed Costing.
Activity Types / Processes
Here you define the sequence in which the system searches for prices in activity type planning or actual activity price calculation in Cost Center Accounting or Activity-Based Costing to valuate the utilized activity types and business processes.
You also specify which plan/actual version is used.
Subcontracting
Here you define the sequence in which the system searches for prices in the purchasing info record. In purchasing, quota arrangements are used to create a mixed price for materials that are manufactured with external vendors with parts provided by the customer. You can specify whether the quota of the individual vendors that are entered in the source list for the material to be processed should be determined through the planned quota arrangement or the actual quota arrangement.
External processing
Here you define the sequence in which the system searches for prices in the purchasing info record or routing operation for valuation of the external activities.
Strategy Sequence
You define the individual valuation methods for the valuation variant as strategy sequences. For the valuation of the material components you define a strategy sequence that reads the fields of the material master record in a particular sequence such as:
1. Planned price 1
2. Standard price
3. Moving price
The first price that is not zero is used to valuate the material component.
Target versions:
Target cost versions are used in the following ways:
In variance calculation:
To control which variance (total variance, production variances or planning variance) is calculated
To valuate unplanned scrap( scrap variance)
Unplanned scrap is valuated in the period-end closing activities when the variances are calculated. You can specify in a valuation variant for WIP and scrap which cost estimate you want to use to calculate the target costs for the valuation of unplanned scrap. You assign the valuation variant to target cost version 0 if you want to include it in the valuation of scrap.
When you are using a cost object hierarchy with active distribution, you use the target cost version to control which cost estimate the system uses to calculate the target costs, which are used as the basis for determining equivalences for actual cost distribution.
The actual costs collected at the level of the hierarchy are distributed across the orders in accordance with these equivalences. This distribution is proportional to the target costs for the cost element under which the actual costs are written. Actual costs for material costs are distributed in proportion to the target costs for the origin group, such as for the material, if you have entered an origin group in the costing view of the material master record and have set the indicator Material origin, for example.
If no target costs were calculated under this cost element, enter a cost element group in the target cost version. The actual costs are distributed in proportion to the target costs for this cost element group. This cost element group should be complete. If costs were updated under a cost element that is not in this cost element group, no distribution is possible.
You can calculate equivalences on the basis of SAP standard target cost versions 0, 1 and 3.
The standard system supplies the following target cost versions:
Target cost version 0 ( total variance)
The amount of the total variance generates a posting in Financial Accounting during settlement.
For this version, select actual costs as the control costs and standard cost estimate as the target costs.
Target cost version 1 ( production variance)
For this version you choose actual costs as the control costs and planned costs as the target costs.
Target cost version 2( planning variance)
With target cost version 2, the costs from the preliminary order cost estimate are interpreted as control costs.
For this version, select planned costs as the control costs and current cost estimate as the target costs. You cannot calculate planning variances for the product cost collector.
Target cost version 3 (production variance of the period)
You compare the planned costs of the period calculated on the basis of an alternative material cost estimate (such as a modified standard cost estimate) with the actual costs of the period on the basis of the yield delivered to stock in the period.
The base quantity for variance calculation is the yield.
For this version, you choose the actual costs as the control costs and the alternative material cost estimate as the target costs. To determine the alternative material cost estimate, enter a costing variant and choose a costing version.
The target cost version specifies which data is to be compared. The target cost version also specifies which variance variant is used and therefore which variance catagories are calculated. You can define a different target cost version for each controlling area

Cost of material in sales order.

Dear SD Gurus,
1. How do I see that the cost of material captured in Sales order?
2. How do i check whether it's correctly following the FIFO method?
Regards,
Dsingh.

Hello,
1. Cost of Material is visible if you insert SAP Standard Condition Type VPRS in Pricing Procedure. It will bring Cost of material from Material Master Record - Accounting Screen. +
2. Regarding FIFO, check this: http://help.sap.com/saphelp_47x200/helpdata/en/47/61071349f011d1894c0000e829fbbd/frameset.htm
Hope this helps,
Thanks,
Jignesh Mehta
Edited by: Jignesh Mehta on Sep 13, 2011 12:13 PM

Inventory Costing Vs Material Costing

Can someone explain the difference between inventory costing and material costing ?
Edited by: VamsiM on May 3, 2010 2:14 AM

Hey,
An inventory cost estimate is used to update tax and commercial price, or prices other than
standard. In other words, the costing type is not for the standard price.
Best Regards
Young

COPA - Valoraciu00F3n del coste del material

Dear colleagues,
I am trying to bring some value fields COPA, the standard cost of material divided into subjects Pimas, Activities, etc. .. I performed the following parameterization, but only for testing raw materials:
+Record types+
       +Valuation strategies+
       +F I01 Actual valuation+
           +No. Valuation method                    CO-PA quantity       SD quantity          TP value field+
           +01   Material cost estimate              ABSMG                FKIMG+
               +Cost component structures+
               +01+
                   +Value field assignment1+
                       +VV020+
                           +001   Raw Materials+
But I managed to be assessed. Is it possible that you have to do some other Operation? In theory it should act to record a valuation COPA match with class of operation "F", right??
Thanks in advance
Best regards
Mary

Hi
I am not clear from what you have written
But, just making a wild guess.. I think you are asking that your valuation is not happening despite these steps
Did you assign your costing key to material types??
Regards
Ajay M

Costing of Material without BOM & its Impact in COPA

Hello,
I have a scenario wherein Few Finished materials does not have BOM and Routing. However client is aware of Standard Price for these Materials. These materials are lying in stock since long but may get sold. Client is ready to update standard price by MR21 and would not mind to exclude these materials from costing run. However We have profitability analysis active, so as per my understanding while selling such parts for which system does not have costing run, it will give cost estimate error since no costing variant was used for price calculation of these materials.
Need your suggestions.
Regards,
Rahul

Hi….
You don’t use MR21 because SAP don’t create CO-PA
document without standard cost estimate of material which have
price control “S” when you create billing document .
To change material current stock’s amount, you can use MR21.
MR21 don’t have a role to release standard cost to material master.
For material which don’t have BOM and routing but have price control “S”
, you should calculate standard cost using t-code KKPAN to create billing
document without error related to standard cost.

Tool cost amortisation

hi friends,
i have following query,
we are into auto component manufacturing and get tool cost amortised as part of selling price, ( Sale price is inflated till tool cost is recovered) and tool has specific life of some quantity.
We want to map as follows
Sale proceeds consists of sale price and tool cost
tool cost paid to vendors of in house is capitalised
Depreciation is @ standard rate, where as actually tools get scrapped in lesser period
my question is how to capitalise the tools and write off the same through amortisation.
Milind

Hi,
Using o/h accounting you can book the cost to the Tools.
In pricing you may try condition types to amortise.
hope this helps.
Regards
Ramesh

Unplanned delivery cost to material through G/L account during Invoicing

Hi,
We have a problem of capturing unplanned delivery cost to material
The scenario is as follows
We are not sure of few conditional value's during Purchase Order creation.
We come to know only during Invoice verification,
These conditions might be many, like labor Charges,Unloading Charges etc which should go to material.
Though we can post it to material directly with reference to PO,we will not be knowing the purpose of posting,as the client wants the complete landed cost including these.
And if we post it to a G/L account it does not go to material,Even if we set up UPF key, it still goes to G/L account only.
Is there any way to post to material via G/L Account,as we want to give G/L account as reference to those conditions.
Thanks and Regards
W.Raghuram

hi
there r two options either the cost will distribute to the items or it will come to some different acct
now u can set this
Spro > MM >Logistic Invoice verification > Incoming Invoice > Configure how unplaned delivery costs are posted.
here select appropriate option
if u want it to be loaded on material then select distibute among line items
if u want diff acct then chose 2nd option
if u want diffrent gl acct for diff types of delivery cost then u can directly activate the direct posting to gl acct
Spro > MM >Logistic Invoice verification > Incoming Invoice > Activate Direct Posting to G/L Accounts and Material Accounts
then u will find a G?L acct tab
here u can directly debit a amount to an acct
regards
kunal

Include Tool cost in Standard cost of material

Similar Messages

Maybe you are looking for