Indirect Costs Assessments

Hi every body,
I am facing a problem, I have diferent Indirect cost accountings into cost centers. The user executed the transaccion KSU5 and the values of the Original Cost Center goes to diferent ones as the cycle assessment is customized. In addition to this, the values of the receivers cost center must go to the production order. Which is the best way to settle this values to de production order?
Thank you

it is possible to address the same requirement through two assessment cycle where after runing the first assessment cycle it will transfer the cost sender cost centre to receiver cost centre and when after that when the second assessment cycle run it will transfer the cost from sender cost centre (which was the receiver cost centre in first assessment cycle) to the concern producton order.

Similar Messages

STO Accounting entries for indirect costs

Hi experts,
I have following scenario:
Plant A
Quantity Update
Plant B
Value/Quantity Updatae
Then I create STO from plant A to Plant B. Include Indirect costs. No accounting entries is getting generated at goods issues nor goods receipt. System allows me to introduce invoice for indirect costs through miro. However, it doesn't propose the values as it happens in purchase orders.
Is there anything in custominzing I am missing.
Thanks.

But that's not the standard behaviour (i know it's strange, I made that error myself in the past).
Remove the K, and the system will make the posting to the cost element defined in OKB9.

Indirect costs after movement 107

Hello Experts,
I have following scenario:
Purchase order created with acceptance at origin indicator flagged.
Goods Receipt when vendor gives stock according to incoterm. It is a must that it affects accounting when vendor transfers responsibility. This is done with a 109 movement.
At that moment client doesn`t know indirect costs.
I want to know if it is possible to includes indirect costs before 107.
Thanks.

Hi,
Your question is little bit confusing. Could you please clarify whether you want to add the indirect cost before 109 or before 107.
You can include the indirect costs while creating PO. But if you dont know the exact indirect costs while creating PO, you may either include the approximate delivery cost / indirect cost in PO and post the planned delivery cost invoice with correct amount OR you may include the amount as unplanned delivery cost in MIRO.
Regards,
AKPT

Indirect costs allocated to specific activity type

I am trying to take costs from an indorect cost centre, and based on cost element groups, post it into a specific (production) cost centre activity type.
(I know the best way to do this is with KSCB, but the users entered thewrong master data in KP26, so it is either finding another solution, or recreate all the cost centres, with everything that that implies....)
Currently I am assessing using separate secondaries for each activity type. But because they are secondaries, I cannot get them included into specific activities via KP06 at the direct production cost centre. Alternatively I am trying to get the spliiting to link the secondary to a specific activity type, but I am not getting that working.
Any ideas would be greatly appreciated.
Distributions rather than assessment?

Now that I have actually assigned the splitting structure to the cost centre, it works a lot better....

Variable Costs using SKF in Indirect Activity Allocation

Hello
I am trying to use indirect activity allocations and KSPI to transfer costs from an activity in an indirect cost center to multiple direct cost centers. The Receiver tracing factor is planned SKF (i.e. number of employees). The issue I have is that when doing this allocation, the variable cost at the indirect cost center gets transferred as a fixed cost to the direct cost centers. We need to have this as a variable cost on the direct cost centers. Can anyone suggest anything or let me know if I'm doing something wrong?
Here are my sender/receivers:
Sender:
Quantities Calculated Inversely
Plan Values
Receiver tracing factor:
variable Portions
Planned SKF
No Scaling
Thank you

Hi Mark
I was able to achieve this in the past...as below
1. On the indirect Cost center - Use an activity type Catg 2 (indirect entry indirect allocation)
2. On the receiver cost centers - Use an act type Catg 4 (Instead of SKF)
3. Enter the Plan Act Qty for this Act Type on the receiver direct cost centers in KP26 and Actual Qty in KB51N
4. In cycle definition - Var Portion Type would be based on Plan Act Qty instead of SKF
5. Execute KSCB - Folllowed by KSPI.....
You can also try the above using SKF on receiver cost centers - But Act Type Catg 2 on the Sender Indirect cost center.... I guess, this is what you have done... In my opinion, this should also work...
I believe, to transfer the costs as variable - You need to plan them in KP06 as variable (i.e. Activity Dependant Planning)....
So, Plan your expenses on the indirect cost center in KP06 with reference to the Act Type Category 2
br, Ajay M

CCA Assessments to COPA(KEU5)

Hi All,
If i want to allocate my indirect costs from Cost centers to COPA using assessments and receiver rules is Variable portions and Value Field/Key figure is "Revenue" or Gross Sales.
What is the step by step process for this? How system will allocate costs to COPA, I mean on what basis? My receiving tracing factor Valuefield/Keyfield is "Revenue" or "Gross Sales" and No Scaling.
how system allocate costs from CCA to COPA?
Please explain me steps clearly and any help is appreciated.
Thanks,
Rau

Hiya,
This is basic math and you should be able to work it out on a test server creating your own examples.
Say your Tracing Factor is "Net Sales" and the New Sales to two (for the sake of simplicity) of the PSGs is:
PSG A: $ 1000
PSG B: $ 2000
In KEU5, in the tab "Receiver Tracing Factor", you need to mention the weighing factor for each combination of the Receivers. Assuming these are the only two receivers you defined and you allocated a weighing factor of 100 and 10 to each, the tracing factors are calculated as:
PSG A: Tracing Factor: 1000 * 100 = 100,000
PSG B: Tracing Factor: 2000 * 10 = 20,000
The Sender Tracing Factor is therefore: 100,000 + 20,000 = 120,000
Now, if you have $ 12,000 to assess to the two PSGs based on "Net Sales", the cycle will yield:
PSG A: = 12,000 * (100000 / 120000) = $ 10,000
PSG B: = 12,000 * (20000 / 120000) = $ 2,000
Total Assessed: $ 12,000
Hope this helps.
Cheers.

Cost of price difference and cost of goods sold

Dear All,
I got the explanation from forum :
The price variance differences are posted per purchased item which are used in making the material to be sold. this difference rolls to the COS line, but not the COGS account.
May I know what is the difference of cost of goods sold and cost of sales. Both also cost, cost of goods sold is inventory turned to cost upon goods sold whereas cost of sales, to me, can be indirect cost.
Any help to further explain of COS in relation to price variance?
Thanks

Hi
In SAP there is a concept of COGS, but there is no concept of COS.. COS is more of a accounting terminology,... There are different schools of thought on COS/... Some companies treat COS = COGS + Selling overhead...
With Material Ledger, the variances of components purchased can be rolled up to the Header Material which consumes them.... If this header mat is consumed in further processes, the consumption can also be revaluated.... Going So on and so forth, you can also revaluate the COGS of the final material....
Simply said, when variances are rolled up, you can revaluate the inventory... If the inventory is consumed before revaluation, then you can revaluate Consumption / COGS....
Hope this helps
Regards
Ajay M

Where do I define the automatic posting of goods issue to Cost Center?

Dear Experts,
I found out that all the raw material consumed each time I do the confirmation of process order via CORK did not post to Cost Center.
Where do I define the automatic posting to Cost Center for Goods issue for consumption?
regards,
Abraham

Hi,
I found out the default movement type has been predefined to 261 (GI for Order, in which it doesn't post to Cost Center). I guess the standard system has a valid reason to set it as 261 instead of 201 (GI for cost center).
As far as I understand, the Process order will accumulate all the costs (direct cost - material, labour and machine hour and also indirect cost) during the confirmation (material is backflushed and fnished goods is auto-GR). And at the end of the period, this process order will be settled its variance if there is (between the total cost credited - based on standard cost of the finished goods and actual total accumulated costs debited).
So, my question is, by right should there be any CO posting being made to Cost Center for material consumption in the above process flow as I checked in the standard system, the material movement for raw material and finished goods have no Cost Center posting at all?
regards,
Abraham

Type of cost center

Hi,
May I know what is the difference between direct cost center and indirect cost center?
Can explain with example?
Thanks
Moderator: There is no such SAP term. For indirect costs, please search the Web

Before you remove the Entity dimension, you must first un-assign it as either a work status dimension or a concurrent lock dimension. YOu'll need to temporarily assign some other dimension as the locking dimension.
Once you replace Entity with CostCenter, you'll probably want to set back the locks to use the new CostCenter dimension.

Product costing related querry

What are the settings and configurations that are required to be done for production order costing by PP and FICO modules so that the order gets costing. I am told there are settings for activity type in workcenter. Also terms like cost carriers that bind the workcenter and the cost center and finally this data flowing after the confirmation is done.
Kindly explain the process and how to do the same in SAP system also.

Dear Varun Kapoor,
Check this,
Product Cost = Materials Cost(ROH + HALB Materials Cost)Activity Cost (Operation Cost)Overhead Cost.
1.Raw materials cost are generally entered as Planned price along with the valid from date in Costing 2 view,and price
control indicator is "V".Origin group has to be given to all the Raw materials in costing 1 view.
2.For HALB Materials Price control indcator will be S for Inhouse manufactured & V for externally processed materials (Sub-
Contracted Items) respectively.Also assign Overhead group for all Inhouse manufactured items if a costing sheet is maintained for
overheads..
3.No need to enter any value(price) for the materials having S as the price indicator and for Sub-contracted itesm that's F30 also no
need to enter any cost in the material master.
4.Activity cost is the cost incurred in performing individual operation.This cost is captured via the work center which we mention in
each operation in the routing of that product.A Cost centre and an appropriate activity type is assigned in the work centre.
5.Proper Rates should be assigned for the combination of Activity type and Cost centre.
6.Overhead cost is the indirect cost that we capture according to the customer's requirement.
7.If certain items for certain products alone should not be considered for costing means,then we can achieve this using
costing relevancy indicator in the BOM and for the activity(operation's mentioned in routing) which should not be considered for costing
also can be mapped by removing the costing relevancy indicator in routing.
Overhead group is aasigned in Costing1 view.
8.Creating Cost center - KS01
9.Create Activity Type - KL01.
10.Assiging Rates for a cost center/activity type combination in T code KP26.
11.Cost estimate Related T codes are CK40N,CK11N,CK24.
12.UseCK40N always,so that you can do the costing ,mark the price and release the same.Generally Cost Rollup will be taken for
Finished product so that the sytem automatically calculates for the Semi-Finsihed products standard cost.
13.IF you use CK11N,then only costing will be done,but for marking and release you have to use CK24.
14.For each Production order type in T code OPL8 Order Type Dependent Parameters - Under controlling tab - Costing variant Planned
and actual has to be assigned.
15.In REM scenario - Product Cost Collector has to be created using T code KKF6N for all Inhouse Manufactured assemblies.
Regards
Mangalraj.S

Direct & Indirect Breakup after allocation to COPA

Dear All
We have an issue with COPA allocations.
Allocations happen in two steps.
1. Allocation of indirect cost centers such as head office costs to actual cost centers(branches)
2. Allocation of costs in the real cost center(Branch) to COPA products.
Here the management wants to know the product cost breakup, of direct and indirect.
However we cannot track the initlal flow of costs from indirect cost centers to actual cost center once the costs are allocated to the product.
Kindly let us know if anyone has handled a similar situation.
Thanks
Gayani

In the structure you would use a cost element group "All but indirect". This cost element group you should define using two intervalls of cost elements.
If your cost element for the allocation of indirects is say "500000", create the cost element group for "All but indirect" with the intervalls
000001 - 499999
500001 - 999999
The structure would then have to assignments, one for cost element "indirects" and one for cost element group "All but indirects"
Therefore, no updates to the structures are needed when new cost elements are created as long as they within the number range defined in the cost element group

Cost Sheet

Hi ; any expert help to understand the difference between costing sheet and overhead structure?
and also there applications ,please ?
Thanks : Anthony

Hi!
Costing sheet will be prepared with direct cost and indirect cost. the indirect cost is nothing but over head cost.
For example: Cost Sheet will contain RM cost + labour cost + other any direct cost + Material Over head cost + labour over head cost + Other any over head cost.
In SAP cost sheet will be prepared using th cost componenets:
First you will defined over head structure how you want to calculate over heads like over head type(material or labour), over head rates etc., and when over head is calculated, you should store this cost some where in order to show in cost sheet, So you have to define respective credits for each over head types. Here you will use secondary cost elements for credits. You can also use over head groups and over head keys in order to calcualate different over head rates based on materials. this over head structue will be assigned to controlling area.
Once over head structure completes you will prepare cost sheet : you will define different bases ( nothing but raw material costs, labour costs etc.,) and then over head rate and assign the credits in order store over head costs. So , you will arrive total cost in costing sheet.
Over head structure is one part of the costing sheet. this costing sheet sheet you will assign in valuation variant.
regs,
ramesh b

Fixed and variable cost element's cost

hi,
i would like to clarify. need your kind advice.
1) can direct cost has both fixed and variable cost? can have example?
2) can indirect cost has both fixed and variable cost? can have example?
3) direct cost only happens in direct cost center and indirect cost only happens in indirect cost center?
4) can direct cost center assign to fixed cost element and variable cost element? Likewise, indirect cost center assign to fixed cost element and variable cost element?
thanks

Hi,
As per my understanding
Direct cost to a department could be variable or fixed.
Example: A supervisor in the X department would be a direct cost to the Dept A department. Since the X salary is likely to be the same amount each month regardless of the quantity of products manufactured, it is a fixed cost to the department. The supplies furnished to the X department will be a direct cost to the department, but will be a variable cost to the department if the total amount of supplies used in the department increases as the volume or activity in the department increases.
Indirect cost is the Power used to operate a production machine.
Example: The cost of the Power is variable because the total Power used is greater when more products are manufactured on the machine. Depreciation on the production machine is also an indirect product cost, except it is usually a fixed cost. That is, the machineu2019s total depreciation expense is the same each year regardless of volume produced on the machine.
As you can see, costs can be direct and indirect depending on the cost object: product, department. The cost is fixed if the total amount of the cost does not change as volume changes. If the total cost does change in proportion to the change in the activity or volume, it is a variable cost.

"COST" Table update

Can anybody tell, how can we update Std. table COST?
Thanks in advance.

Dear Deven,
Check this,
Product Cost = Materials Cost(ROH + HALB Materials Cost)Activity Cost (Operation Cost)Overhead
Cost.
1.Raw materials cost are generally entered as Planned price along with the valid from date in Costing 2
view,and price control indicator is "V".Origin group has to be given to all the Raw materials in costing 1
view.
2.For HALB Materials Price control indcator will be S for Inhouse manufactured & V for externally
processed materials (Sub-Contracted Items) respectively.Also assign Overhead group for all Inhouse
manufactured items.
3.No need to enter any value for the materials having S as the price indicator and for Sub-contracted
items that's F30 also no need to enter any cost in the material master.
4.Activity cost is the cost incurred in performing individual operation.This cost is captured via the work
center which we mention in each operation in the routing of that product.A Cost centre and an
appropriate activity type is assigned in the work centre.
5.Proper Cost should be assigned for the combination of Activity type and Cost centre.
6.Overhead cost is the indirect cost that we capture according to the customer's requirement.
7.If certain items for certain products alone should not be considered for costing means,then we can
achieve this using costing relevancy indicator in the BOM and for the activity(operation's mentioned in
routing) which should not be considered for costing also can be mapped by removing the costing
relevancy indicator in routing.
Overhead group is aasigned in Costing1 view.
8.Creating Cost center - KS01
9.Create Activity Type - KL01.
10.Assiging Rates for a cost center/activity type combination in T code KP26.
11.Cost estimate Related T codes are CK40N,CK11N,CK24.
12.UseCK40N always,so that you can do the costing ,mark the price and release the same.Generally
Cost Rollup will be taken for Finished product so that the sytem automatically calculates for the Semi-
Finsihed products standard cost.
13.IF you use CK11N,then only costing will be done,but for marking and release you have to use CK24.
14. Table COST get's updated say For Eg: After Actual Cost calculation using T Code KSII
Regards
Mangalraj.S
Edited by: Mangalraj.S on Nov 27, 2008 3:38 PM

Cost Capturing of Materials

Dear friends,
Can anybody clarify me reg. how we capture costs in Production/ Process Order:
Direct material, activity and indirect material cost will settled against Order.
Thanks inadvance.
Regards,
Venkat

Hi Srinivasa,
Thank you for your kind and quick reply.
kindly go through my concern: How the cost settle when process or production order settled?
Do we get info from Production order cost analysis like:
   Direct Material
   Direct Labour
   Indirect cost:
If we want to get info like above what the necessary steps we need to do?
Hope u figure out my concern, kindly do the needfull.
Regards,
Venkat

Indirect Costs Assessments

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