Is required product costing

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hi all
i would like to work on profitable analysis.
my question is : Is required to know for profitable analysis configuration ?
pls reply soon
Geeta

hi geeta,
if u r required documentation in product costing .
pls send ur email id.
rohit agrawal

Similar Messages

Product Costing Requirements Study

Hi,
I am looking for requirements study questionnaire for product costing module which can be used to gather the requirements from the business people. Please help me with this or atleast let me know the key questions we need to ask them to document the blueprint.
If anybody has a product costing sample blueprint please let me know.

Hi:
These are the question that should be taken into consideration for product costing.
Whether it is Discrete Manufacturing or repetitive manufacturing .
What are the finished products,semi-finished products and raw materials.
Whether moving price or standard price is used.
Collect a list of primary cost elements and secondary cost elements.
Define activity types ie. ex:labour hrs, machine hrs and setup hrs.
Refer to this websites
http://www.sap-topjobs.com/SpecialPP/samplepc.doc
https://www.sdn.sap.com/irj/sdn/bpx-bp-in-practice?rid=/webcontent/uuid/4f0f6717-0b01-0010-949b-9ab68dd45fec [original link is broken]
www.sap-img.com/financial/simple-overview-of-product-costing.htm
help.sap.com/bestpractices/BBLibrary/Documentation/J74_BPP_EN_ZH.doc
Please let me know if you need more information.
Assign points if useful.
Regards
Sridhar M

Product cost by sales order - conceptual clarity required

Hi,
We are a manufacturing company with both Make to Stock and Make to Order Scenarios. In cost object controlling, we have made the settings for product cost by order. Now, the question is whether product cost by sales order is a mandatory setting in MTO scenario. I understand this is a conceptual question but i never got the clarity after reading help files, threads and blogs.
I'll put down my understanding - pls correct me.
If i do the product cost by sales order, there will be a statistical cost object ie sales order. Now every cost incurred (with a component split) will be recorded stastically in the sales order in case of production orders created from S.O.s
If I don't do the setting i cannot get a component wise split for the cost of sales order to do any analyses. but still I'll have the COGS which i'll capture to COPA and take the profitability.
Can you please give me some more clarity on this scenario? Are there any other factors/ advantages/mandates in product cost by sales order?
Best Regards
Vimal

Hi Vimal
Prod Cost by SO is done in the case of MTO.. Here, you have 3 possible scenarios
A. Only Qty i.e. GR from Prod order is tagged to Sales Order.. Sales order is not a CO Object....
This scenario is as good as MTS... Only that GR is tagged to SO....
Your costs are collected on Prod order....
PGI uses GBB-VAX i.e. does not post to sales order... Billing updates revenue and COGS to costing based COPA
B. SO is cost obj with non valuated stock (SAP recommends this)
C. SO is cost obj with valuated stock...
B -
Prod Order is settled upon sales order.. GR from prod order does not update any acc doc
Sales order is settled to COPA.. Here you can use a PA Trf Str where in you have replicated your Cost Comp Str... i.e. You can create as many assignment lines in KEI1 as your CCS in OKTZ and assign each one of them to a separtae value field
No question of variances in this case
C
Prod order is not settled upon sales order.... GR from Prod order updates acc doc.... However, variance from prod order can be settled to the sales order if you create variance account as a cost element... Else, it is settled to COPA
Upon PGI, the COGS is posted to Sales Order as a single line item
Here, in your PA Trf Str, you would create an Assignment line and tick "Qty Billed/Delivered".... This would update the Billing Qty to COPA upon settlement of Sales order
This Qty update will trigger KE4R.... i.e. You need to assign CCS to VF in KE4R for PV=01 and Rec Type = C.... This would update the CCS in COPA as per the Sales Order cost estimate
The Costing Key in KE40 should refer to "Sales order cost estimate" and not "Std Cost estimate"
br, Ajay M

How to maintain One product cost collector for multiple materials and configuration setting

Hi experts,
my requirement is that i want to maintain one product cost collector for multiple materials ans also i want to know the configuration setting for the same.
I have used KKF6N but it is not working in my case. I went through KKF6M also but there i found multiple cost collectors.
please guide me in the same.
Thanks in advance.

Hi Shripad,
you cannot assign same Product cost collector to different material.
Because you creating cost collector for material combination of material /production version,material /Bom Routing.
so please create individual cost collector for every material.
if you have any query kindly revert back.
Please mark the answer as helpful if it is helpful to you.
Because march 5 onwards scn has stopped awarding points to liked content.
Starting now: No more points for likes on comments/replies
Thanks & Regards
Sandeep Kumar Praharaj

Error while creating Product Cost Collector

Hi SAP Gurus,
While creating Product Cost Collector I am getting the following Error:
Enter a distribution rule for Order without a validity limit
Message no. KD059
Diagnosis
The settlement profile used requires you to define a distribution rule for Order. For period 009 2008, however, you have not created a distribution rule for Order.
Procedure
Create a distribution rule for Order without a validity limit, because, if the distribution rule does have a validity limit, the system always issues this message in the period following the last valid period.
You can also use a different settlement profile that does not require such a distribution rule, or change the settlement rule used.
Can any one help where exactly i need to maintain this.
The settlement profile settings are fine.
I am getting this error only after i have changed the scenario to Reproting point back flushing

Dear Suryanarayana
Please check the corresponding settlement profile for product orders.
In most of the cases message KD059 means that no distribution rule is assigned to your production order.
This is not an error, but the system design. In order to avoid message KD059 you will either have to enter settlements parameters and a distribution, or change settlement profile for valid receivers in transaction OKO7 from 'settlement required' to 'Can be settled'.
I hope this helps resolve the issue for you. I wish you the best in your endeavours.
Kind Regards,
Brendan

Automation for actual input of utility rate in Production Cost centers

Dear All,
Currently we have a process where we are downloading actual rates through KSII for each location and rates calculated are inputed through KBK6 for all individual production cost centers by activities ,so my requirement is whether there is any procedure where downloading and uploading can be eliminated and actual rates calculated by system directly loads on to the production cost centers.
Kindly provide any suggestions
Thanks and Regards
vijay

Hi,
If u run KSII, system will give a message "Do you want to post the results of price calculation?" if u click on YES , it will automatically update in your KBK6. Pl. Check once.
Regards,
Rajeswari

BADI for changing the product cost

Hi All,
My requirement is to change the product cost when the costing engine is running via ck11n or ck40n. Iam looking for user exits and BADI's for this requirement.
I did look into the BADI DATA_EXTENSION_CK but this particular BADI does not have export or changing parameters. Can anyone suggest any user exit or BADI's for this requirement. I also looked into other BADI's like
CK_KALAMATCON2_CI
COSTINGRUN_CK
COST_APPORTION_CK
CO_PROD_COSTING_CK
DYNPRO_EXTENSION_CK
ORDER_COSTING_CK
QUANTITY_STRUCT_CK
SUR_STOCK_TRANSF_CK
VALUATION_CK
But none of them served the purpose. Plz help...Thanks in advance...
Regards,
Nirmal.

Hello,
Will this help?
Product costing with Enhancement (Valuation variant with User Exit)
Cheers,
TD

Product Costing - Process Order Confirmation

Dear Experts,
We are facing a situation with our Product Costing Scenario :
Under SFG Process Order Confirmation, there are Ten Phases to finally confirm the order. First Phase is for Raw Material Issuance. From Second Phase to Ninth Phase are relevant to Activity Types. Tenth Phase which is final phase, in this point Goods Receipt posting is generated.
At first phase, system posts Raw Materials Goods Issue (Movt Type 261) to Process Order:
Entry : RM (Cr), Consumption (Dr).
Client needs the system to post one more entry at the same time by : WIP (Dr), Inv Change (Cr).
Reason:
According to client, they have made consumption entry in finance but what if all raw materials are not consumed as yet and factory comes under fire, then how can they claim insurance on those Raw Materials which are not consumed and are still in the IN PROCESSING Stage?
My Answer was:
- They can find all material costs in Process Order as Debit Item.
- They can also calculate WIP but cannot post WIP in Finance unless the order is settled.
Ultimately, as per my knowledge client cannot check the unprocessed Raw Materials report in FI but they can check in CO. And this is the point of reservation from client.
They need an entry in Finance for WIP to claim insurance in case of fire and therefore they need a posting of WIP entry immediately after Goods Issue of Raw Materials to Order.
Can anyone please guide me further regarding this scenario and if any one can suggest any work around then it would be highly appreciated!
Regards,
Zain Bashir

Hi Zain
This is a very unusual question
Buddy, there is something in accounting called as "Going Concern Concept" which we all were taught in our accounting days.. That means when you do business, do it with a mindset that you are goinig to do it for long / for ever.. Accidents dont happen every day and you cant build a system around such things
Assume there is a fire (God forbid).. After the accident, you wont even know how much was lying there unconsumed which got gutted in the fire..
And insurances not just covers the stock lying consumed, but also stock manufactured and stock in the process of manufacturing (WIP)
And most importantly, dont expect SAP to throw up a figure at the click of a button.. Does your client really think that they will simply submit the report generated from SAP as-is to Insurance people?? SAP is just a technology enablement, which requires human intervention at various places
My opinion - Dont build system for such requirements
Br. Ajay M

Flow of product costing

Hi All,
Iam new to controlling area. I want to know the entire process flow of product costing and what are journal entries reflect in this flow.
Thanks,
chandu

Hi,
The requirement of batch wise capturing of costs can be achieved by creating a separate production order for each batch of production. The production order captures all the cost, which are incurred during the production process. The details of each cost are as below.
1.For every batch of production a production order is raised in the production department. The production order contains the details of BOM and recipe.
2.The Bill of Material (BOM) details the raw material and packing material in the required portions that are required for production.
3.The recipe contains the detail process of production activity including resource such as manufacturing machineries, equipment. Each operation is assigned to its resource and each resource assigned to relevant activities such as Labour, fuel, power etc. (maximum of six parameters for each resource). Each resource is attached to a cost centre.
4. The recipe and BOM are copied to production order automatically when the order is created. The quantities of materials and activities are determined at standard levels (Planned costs).
5. A production order may contain several phases and each phase requires individual confirmation.
6.Once a phase in production process is complete the production person gives his approval by the way of confirmation.
7. At the time of giving confirmation he inputs the actual quantities incurred for material and activities. Using these inputs the Actual Cost can be arrived.
8. From controlling module, the planned rates of activities are uploaded on periodical basis. monthly or annually. The cost of material is taken at Moving Average price.
Once the batch production is complete the production person gives his final approval to the order as u201CTechnically completed (TECO)u201D.
9. At the month end / period end all these process orders are settled at the costing department.
10. The settlement results in calculating the overheads on predetermined rate and transferring the total cost of the production on to the finished product. The following entry is generated
Finished goods stock Account Dr
To factory output Account Cr.
11.The work-in-process is calculated based on the status assigned to production order. If the order has a status of u201Cu201CTechnically completed (TECO)u201D. the work-in-process is not calculated, but the order will be totally settled.
12.The standard cost of finished product is released at the beginning of every month. The standard cost is calculated based on the Bill of Material and recipe defined independently for each finished and semi finished product.
13.The variance is calculated on the difference of standard cost of material and the actual cost incurred in the production.
14. When the actual cost of power, fuel, Labour are accounted against respective cost centres in the month end, the system automatically determines the under absorption or over absorption of production costs. This difference cost will be apportioned to all the batches on a predetermined basis.
Revaluation of Production orders
Initially cost planned in cost centre accounting against activity types are used for valuating the materials that are produced. At the month end when actual cost are booked from financial accounting, revised activity price calculation is carried in cost centre accounting and with this prices the production orders are revalued. The revaluation is carried to the extent of difference between planned vs. actual activity prices. The revaluation production orders will not be carried, as production orders will be settled Immediately.
The actual cost of every batch is determined using above process. A report is generated to know the cost for each batch.
The standard cost fixed with each customer for each product is maintained in a separate database. The Costing department should compare these details with the actual cost of production and identify the difference. Accordingly a Debit/Credit note can be generated.
Once a standard cost estimate is created, it updates the material master with that rate.
Cost Object Controlling is an area in cost accounting that assigns the costs incurred in the production of company activities (such as internally manufactured materials) to those activities. Cost Object Controlling supports you in:
Reaching make-or-buy decisions
Determining price floors
Performing complex cost analysis (such as target/actual analysis)
Determining inventory values
Cost component Structure:
A control of how the results of activity price calculation or material costing are stored.
In Product Cost Controlling (CO-PC), the cost component structure determines the attributes for passing on the following costs:
Material costs passed on to material valuation as the standard price or inventory price
Product cost components are
Material
Accessories
Power
Fuel
Sal & wages
Depreciation
R&M/ Stores
Others
Admin OH
Standard Cost Estimates (Applicable for trading activity)
At the start of the fiscal year standard cost estimates will be released based on the planned raw material prices and planned manufacturing overheads. These standard prices are updated in the respective material master. These cost estimates are run only for make-to-stock materials.
The various components of cost are incurred in producing a product is captured. The following cost components are considered for materials cost, consumables and fuel, direct
Labour cost, utilities. Repairs and maintenance gases, depreciation, administrative overheads. A costing sheet will be created to capture administrative overheads cost which are not absorbed in the products as activity cost but are to be considered for inventory valuation In the first step planned activity outputs for each cost centre are planned, then planned cost that will be incurred against each activity type and primary cost element are planned, by carrying out activity price calculation the planned price of each activity is arrived. These activity types are entered in the work centers and routings. When cost estimates are created, system captures material cost from the prices mentioned in material master. The manufactured overheads are updated from the activity cost planned in cost center accounting.
Sadashivan

Use of Product cost collector in REM

Hi All,
I am new to PP module, I got some doubts when working on costing of the product.
1. In REM scenario why do we need an extra step of creating product cost collector ??
2. when a product is produced will the prod cost collector is used for both debiting(raw and semi) and crediting(finished prod) ?

Dear Reddy,
1.Product cost collector is the cost collecting object for a period based production or in a REM - repetitive manufacturing
scenario.
2.Without having any product cost collector you cannot carryout production confirmation(assembly backflush) for a product.
3.So for all the products for which production confirmation will be declared requires a individual product cost collector.
4.Prior to this you require a production version for the material.
5.Production version and a product cost collector is also the master data for a REM scenario.
Now check and revert back.
Regards
Mangalraj.S

Production cost

hi friends,
in the routing for finished material i have defined the base quantity as 1 and labour as 10 mins. there is no setup and production activities to be captured.
a labour activity is created and is entered in the work center costing view. the formula to that is given as sap003 which is labor*operation quantity /base quantity /operation splits.
i created a production order for quantity 100. after production the production cost is showing as 7500.
now the labour minutes is 900mins. in activity price planning (kp26) i have defined as 10rs per minute.
can anyone tell me how did it arrive at 7500.
pls guide.
thanks
sita

Hi
Cost for any production order having say 2 operations is calculated as
Cost required to make 1 PC = (Total Cost of operation 10 / Price Unit) + (Total cost of operation 20 / Price Unit)....Be precise about units of activities
This is for 1 PC. If you have 10; multiply this with 10
Apart from above prices; it also checks components maintained via BOM
You relate above things with your scenario or give some more details. Also check the break up of costs from production order i.e. Goto > Costs and also see the SCE for this material
Rgds

Product cost by period

hello gurus,
Can anyone please tell me the what are the configuration is required to Product cost by period
thanks
rihana

Dear Rihana,
In my understanding product cost by period will be used in a REM scenario(Repetitive manufacturing).
The product cost collector serves as the cost collecting object and for each Semifinished or finished product for which
confirmation(backflush through T Code MFBF) are made a product cost collector should exist.
Product cost collector will be generally created for Order type RM01 and number ranges has to be defined.
Each product cost collector has a number and using the no,the variance and the cost will be settled periodically.
Product cost collectors will be created using T Code KKF6N or KKF6M and the preliminary cost estimate can be done through
MF30.
Regards
Mangalraj.S

Essence of product cost collectors

In REM
what is essence of product cost collector (KKF6n), {As I understand production cost collectors
are cost carrying elements}, but needs to have more insights like how it captures
production costs ( i.e through activities, price maintained in accounting view....)
Does it make any difference if product cost collector is executed before MRP run, or it has
to be executed only after MRP run

Dear Eshwer,
1.Product Cost collector is one of the master data in REM scenario.
2.This product cost collector is no where related to MRP.
3.Product Cost collector is used as a cost object in REM scenario,which means all the cost will be
booked under this product cost collector for that material.
4.Whatever the confirmations that are done in MFBF or MF41 or MF42N,the cost will get debited or
credited accordingly for that material and the impact will be seen in the product cost collector.
5.This product cost collector will be having an order number which will be used for order settlement and
variance calculation.
6.For creating a product cost collector you will require a production version.
7.so whenever you do an assembly or activity or component backflush,the cost will be booked under
this product cost collector.
8.So as such there's no relation between MRP and a product cost collector.
I hope this pints will help you to some extent.
Revert back with your further queries.
Regards
Mangalraj.S

Product Costing on Order

Dear COPC Guru,
In PM order, the component tab, there are the material and required quantity , currently default setup is the plan cost = MAP * this quantity. I would like to use other quantity field,could you advice, any proper to do it. where I can define another plan quantity field so that product costing on service order can calculate plan cost based on this customized quantity.
thanks in advance.
Cathy

Dear two,
Thanks, the reason I need to have this is because the company need to compare targeted ( or planned) quantity versus the actual part consumption. and the targeted/planned is pre-defined every beginnning of the year.
Can I have your opinion, how to achieve this, thanks.
Regards,
Kick

Product costing - cost elements not to be created

Hi
Can any one suggest on the list of G/L accounts for which cost elements not be created in CO in terms of product costing?
thanks
Moderator: Please, search before posting

hi,
Cost elements need to be created for those you want assign in your cost component structure.
Secondary cost elements for over heads material, Production with category - 41,
Cost elements for WIP calculation (All costs, Material costs)- 31 category
Cost elements for RA.
Primary cost elements are some how need to be created for the P/L accounts.
secondary cost elements are which are used inturn used for production process like over heads etc.
Why you are worried about GLs & cost elements not to be created.
Which are require you create them.
Edited by: santosh kumar on Feb 6, 2012 4:47 AM

Is required product costing

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