Issue with Standard Cost estimates / Material Ledger

Background:
We have been using SAP for the last 5 years with Material Ledger active. Due to a number of reasons, we have not revised its standard cost estimates from 2001 till now. This means that at month end, we do not mark and release prices as recommended, nor do we mark prices and use dynamic release.
What Happened:
A new material called PFSW3 was made. This is a FERT. Before production
could start my team released the standard cost estimate for this material. Production was now able to proceed without problem. Then, when the time came to sell the material (VF02), SAP again raised the error 'cost estimate not found'. On checking the standard price in MM03, we discovered that the future cost estimate was missing. So we created and marked a new cost estimate in the middle of February 2007.
Problem:
When the first sale took place, SAP released the marked cost estimate and posted a Price Change document to adjust for the new standard cost. I understand this was due to dynamic release. Now, when month end came, the system settled all the production orders of material PFSW3 but did not do multi level costing on it.
Internal Investigation:
My team has determined that the material PFSW3 has price determination 2 set by mistake. All our other production materials (HALB and FERT) are
set to price determination 3 in the material master (accounting view).
Questions:
To sum this situation up,
we need to know why the material PFSW3 was not marked closed in its period status (CKM3) at the time of closing through CKMLCP?
What are the implications of not closing this material in Feb 2007 (current period status is showing 'Quantities and values entered')?
How can we close this material this month?
The future cost estimate is again missing for PFSW3 in March 2007 and I
fear we are going to face more problems as this material is sold to customers.
Please respond this is an urgent issue.

Dear Shumyl,
Please, have a look at Note 645083 - Material period status set to "Closing Entry Completed" that might help to closing your material in previous period.
Hope it will be useful.
Regards,
Flaviano.

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Material ledger and standard cost estimate

Hi Gurus,
When standard cost estimate is done in a scenario, where material ledger is activated, does the entire stock get revaluated andl post a credit in my P/L? Is it possible to keep my inventory(FG and SFG) at periodic unit price ie at the actual manufacturing price over a longer period say 3 years? Please fill this gap in my understanding.
Best regards
Vimal

Hi Vimal,
Material ledger uses the standard price as 'preliminary price' always during the current month, independent of the question if a new standard price was estimated and released.
But: After period end, when the actual price is calculated the posting will adjust the inventory and P/L accounts to the actual price, with posting date in the recent period.
That means if you have a material that was manufactured once and then consumed over a 3 year period, and during that period you calculate the same material in a standard cost estimate with changing results, that would mean: Looking back at any month during the 3 years the consumption and stock values will be valued at the actual price of manufacturing. But during the currently open period it will always be valuated at the price of the last released cost estimate.
I hope I understood your scenario correct...
Best regards, Udo

Problem with rounding in standard cost estimate.

Hi All,
Happy 4th of July!
I have a problem with the standard cost estimate where the system try to calculate overhead costs (from costing sheet) with a fix percentage (9.7%) to the value coming from material consumption costs element.
Let say I have $1.71 material consumption and the overhead rate of 9.7%
The real calculation should be (1.71*0.097) = $0.16587
But at CK11N screen, it shows only $0.16 (two decimal rounding)
Is there a way that I can bump the rounding to at least 3 decimal point to make it more accurate?
Very appreciate any input you guys can share. Thank you.
Charitha

Hi Chari ,
My experience says that you can use only 2 decimals ..
Moreover , please have a look into SAP Note : 639410 - CK11N, CK13N: Message CK869 due to rounding
differences.
There a some source code corrections also on rounding differences- check if it helps you also...
Regards
Sarada

SAP allows release of Standard Cost for Material with Moving Average Price

Hi
We set our Raw Material to use Moving Average Price (V) and price determination 2 (single level). And we activated material ledger.
During mass calculation of standard cost (CK40N), If user accidentally forgot to restrict the Raw Material for being included in calculation, the system calculate standard cost anyway, even though I set it as Moving Average Price. And user is able to release it too without any problem.
Why the system does not restrict it? By giving error maybe. Although as for now I can not find the wrong effect from releasing standard cost for MAP material, by your experience, is there any side effect that I should be aware of?
Thanks

CK40n is mass release of all materials. The release is not dependent on price indicator of the material in the master. It will calculate standard cost of all the materials.
Releasing standard cost estimate of raw materials does not have any side effect as long your calculation is based on moving average price.
Regards
Divraj

Raw materials on MAP with split valuation used in standard cost estimate

We have a few raw materials which are purchased from different vendors and of different brands. We have opened split valuations for these raw materials. These raw materials are later used in manufacture of different finished goods. We use MAP for raw materials and Std. for finished goods. What configuration and processing steps will be required to run standards cost estimate and what will be standard price for a finished good considering the following example:
Material X is finished good
Raw Material A with split valuation @ USD 5 (brand aplha) & USD 10 (brand beta)
Raw Material B without split valuation @ USD 1
It is expected that we used brand aplha 60% of the time and brand beta 40% of the time and production batch size is usually 100 Kg.
Please reply
Edited by: Chris SAP on Sep 29, 2011 7:56 AM

hi chris
Hope you have configured the material A for split valuation. while calculating standard cost estimate for the material C. through ck11n, the system will pick up the header price from material master.
But here you are saying that you have chances of using the material A, 60% of brand alpha and 40% brand beta
Instead of using split valuation use mixed costing concept. create the material A with separate Ids and create two boms one with alpha and the other with beta.
create procurement alternative in CK91N and mixed ratio with Ck94 and release the mixed cost estimate
please go through this thread also
Re: Difference between Split Valuation and Mixed Costing
Krishna

No standard cost estimate found for the material

Hi,
When we are trying to generate the bill systems throws the error as "no statandard cost estimate found" whereas the material is a kmat material.
Actually as per the requirement we should not Run standard cost estimate for any material,we will update the standard price in MR21
What are the settings that i need to do to avoid the above error message while doing billing?
Following error msg is appearing:-
No standard cost estimate could be found for material "300000"
Message no. K/834
Diagnosis
In Profitability Analysis, an attempt was made while valuating with material costing to read for material "123456" a standard cost estimate released on posting date "02.10.2008".
The system has discovered that there are no error-free standard cost estimates released in plant "BP01" on the specific date "02.10.2008" for material "123456".
The material cost estimate is accessed according to the CO-PA Customizing settings for costing key "YG1" under Define Access to Material Costing.
Display Cost Estimate for Material
Display Material Cost Estimate without Quantity Structure
System Response
It is not possible to process the document further.
Procedure
Check your system settings.
Thanks
Kishore

Remove the Costing keys assignment in the step "assign costing keys to any
characteristics" in COPA Configuration settings.

Standard cost estimate could not be found for the material

Dear All,
We have 4 manufacturing plants and 30 sale depots. We are maintaining price control (S) for FG and SFG in Manufacturing plants,price control (V) at depots for the same material code. we are getting an error message " standard cost estimate could not be found for the material" while doing billing at depot.
Please give me suggestion.
Your suggestion should be appreciate.
Thanks in advance............
AND
My client want to see profitability at manufacturing plant level and need break up for the COGM. So how can i get the values of depot sales.
please let me know how to do........

Hai
Price control should be S for Depot also. You need to run standard cost estimate in DEPOT after entering additive cost under CK74N for frieght, excise duty etc. To transfer the standard cost from the source plant you need to make configuration in OMD9 defining the receiver and sender combination so that system can pick up the cost from source plant. This special produrement type needs to be asigned in the material masters of DEPOT under MRP 2 view.
Pushkala

Backflush with Prel cost estimate still considering standard cost estimate

Hi,
Trying to do back flush with Prel cost estimate . Flagged in REM profile " Post Activities " / Using Data from Preliminary Costing".
However, FG rate is considred as per standard cost estimate and not as per preliminary cost estimate.
Kindly advise whether any other specific setting is needed.
Regards,
Mrinal

HI
check these links:
standard / preliminary cost estimate
Significance of Preliminary cost estimate,
preliminary cost estimate for product cost collector
Hope it clarifies.
Regards
Anupam Sharma

CO-PA Cost Component do not match with Standard Cost Component Values

Dear Members,
The CO-PA Cost Components (as mapped through KE4R), do not match with Standard Cost Component values for the Group Currency. In local currency the values match.
System is correctly picking up VPRS value, both in local currency and Group Currency, which is equal to the total of Standard Cost Components however, it is the Value Fields linked to the Standard Cost Components in Group Currency that do not match.
In KE40, the Indicator is 4:Released Standard Cost Estimate matching Goods issue Date.
I have verified KEPH/CKMLPKEPH tables. The values are same as that of VPRS.
Any help/clues?
Regards
Satya

Hi,
In case of billing documents the group valuation approach is managed in the data structures of the legal valuation in additional value fields. To control costs and revenues in the different views separately, you must create additional value fields and assign them to the data structures.
The field contents must be filled via the CO-PA user exit, they cannot be entered by assigning conditions to value fields. The profit center valuation is updated in a separate ledger. No separate value fields are necessary.
The exit to be used is function module 'EXIT_SAPLKEII_002' ( enhancement COPA0005 ). Within the exit you have the complete SD data avaialble in the tables 'T_ACCIT' and 'T_ACCCR'. The conditions can be found in T_ACCIT and the corresponding values ( linked via 'POSNR' ) in table T_ACCCR. The PA line item and the corresponding SD item in table ACCIT
can be mapped via the line item field 'RPOSN' and the field 'POSNR_SD' in table ACCIT.
regards
Waman

Recursive Loop Error while doing standard cost estimate

SAP Gurus,
We are trying to do standard cost estimate on a material and we are getting error because it is going in recursive loop even though we have used "recursive allowed" indicator for item components in the BOM. The error message numbers are CK 730 and CK 740. We are using 4.6c. I have tried the same scenario in ECC 6.0 and still I get the same problem.
Below is my BOM structure:
Material 10890345 (has low-level code 012)
        ---> 10867220 (has low-level code 013) and has recursive allowed indicator
10867220
        ---> 10846733 (has low-level code 014) and has recursive allowed indicator
10846733
        ---> 10890345 (has low-level code 012) and has recursive allowed indicator
According to me, the BOM for material 10846733 is causing the problem.
For some weird reason while doing the costing run for material 10890345, it s not stopping and going in a loop.10890345 and 10846733 should ideally have the same low-level code as they are recursive.
Please help to provide some solutions at the earliest on how to avoid recursive loop during costing.
Regards,
Swapnil

Dear,
I have 2 things to shear with you.
The method we followed to solve the iteration is as below
1.Config change -
Valuation variant in the costing variant, we changed the sequence as below
material valuation
4 planned price 1
2 std price
3 Mov ave price
2. Material master change
made all the semi finished goods and finished goods
procurement type = E,
costing with qty structure,
Enter the planned price1
By doing this what happens is
when system first start the iteration, takes the planned price 1 and start iterating and next time in the second iteration it takes the calculated price from qty structure till it finds the difference between the value calculated is less than .001. Then it gives the result
Why lot size is important is, in our case in some levels the usage is very less compared to the first material header qty and system used to stop in between and not even reaching the last level as during the cycle it was reaching less .001 difference. may be in your case it may not be the case...just check
Please come back after trying this. this was the only last option i had to solve the issue in my client.
Another alternative is to have a different material for costing purpose to stop the iteration which i will not recommend as we need to do some calculation for each stage and input the cost of dummy material in each stage.
My client is happy with the result as the difference between manual calculation and system calculation is less then .1%...this is because SAP will not consider the difference beyond .001, but in excel you get as many as decimals you want.

Standard Price in Material Ledger

Dear Gurus,
On one hand we need to update on finished products (manufactured) a standard cost estimate (CK11N or CK40N) in order to analyse variances on the corresponding production orders (during period en closing with KKS2 transaction), on another hand, because we are implementing material ledger component, we would like to update the standard price of these finished products with the periodic unit price (PUP) with CKME transaction.
The problem is that the system returns an error when we try to release the price with the PUP,
CKPRCH "A current or future standard price exists for material &".
Could you help me ? Thank you very much
Christophe

Hi
I suspect standard price can only be saved once for any period. You can make use of the other price fields in the material master to store different prices
Thank You,

KE380 for finished good with released cost estimate

Dear Gurus,
We have following error.
No product costing estimate could be found
Message no. KE380
Diagnosis
In Profitability Analysis (CO-PA), the system tried to find a product cost estimate for product 20010412 in plant FA03 that uses costing variant LG01.
The system looked for the cost estimate using costing key LG1 as defined in the CO-PA Customizing
settings.
System Response
No estimate could be found.
Procedure
Check the settings for valuation using product costing. If necessary, create a product cost estimate for this product.
The thing is this error occurs for materials with released cost estimate.
Before we had error ke350 for all materials considering DIEN and ROH.
After supressing the error in kepc we can release invoices with DIEN and ROH materials.
But we got another ke380.
How can we solve this issue?
With best regards,
Kamila.

Hi,
This type of errror is usual if costing based COPA is active and you are using Costing key to valuate the inventory using the Standard cost estimation.
When the costing key is been configured in COPA to access the standard cost estimation and is accordingly assigned to material types, then when the billing is released to accounting system tries to find out the SCE in the material master to pass the COGM to COPA. If it doesnt find the same, it will throw the error.
Hence, run SCE and update your material master.
Thanks & Regards,
Ravi Kumar

Re:No release of production order without standard cost estimate

Hello Experts
I do not want to release any production order without standard cost estimate
I have come acroos the same problem raised by some other users and can you please suggest how to achieve this?
Is there any way to achieve this without user exit?
Thanks and Regards
Subbu

Hello Subbu,
In this case, you need to put the status as "B4" Blocked in costing 1 view of material master, when you create the costing view and change it to "03" status when you released the cost estimate.
Please note that this field can be overwritten in MRP view also. Hence please get the good control of material master and good coordination with PP team to achive this.
Please let me know if you require any clarifications.
Thank you,
Regards,
Santosh
Please reward points if helpful.

No release of production order without standard cost estimate

Hi All,
I have an requirement, that is production order for a material should not be released or saved if standard cost estimate for that period is not released. Basically it should not allow to release or save the production for that material, is SCE is not run for that period. I tried various options, i also overheard its possible through user exit and many people have succeed in that.
Has anybody overcome this problem, please do let me know. And which user exit??
Thanks in advance
With Best Regards
GJ.

Hi...
I have faced the same problem in my previous project. What i have instructed to my client is to take control of Master data and put the status as "03" Blocked for movement till the statndard cost is released for this material.
You can relase the status to "E2" in Cross Plant Status Field in Costing one view once the cost estimate is released for the material.
I hope this works for you.
Please let me know if you require any fruther information.
Thank you,
Regards,
Santosh
Rewards points if helpful.

Standard Cost Estimate Report Comparing Current vs Previous Year

Hi Everyone,
Is there a standard SAP report that would provide materials with previous and current year standard cost estimates as found within the Costing 2 view of the material master?
Thanks,
Pete

Hi,
You need to look into periodic reports. Here is the best one to provide the copmarision between two period -
S_ALR_87099932.
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Amol

Issue with Standard Cost estimates / Material Ledger

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