Machine Cost

Dear all,
I have a scenario in product costing like this:
For 1 litre Finished Goods, the cost is Rs. 100=(Machine/Labour Cost Rs.20+Raw Material Cost Rs.80)
and for 10 litres FG, the cost is Rs.820=(Machine/Labour Cost Rs.20+Raw Material Cost Rs.800). Now the issue is I want to distrubute machine and labour cost with respect to change in quantity.
In this case, for 1 litre price, the machine/labour cost should get reduced based on the quantity. How to do?
Thanks & Regards,
A.Anandarajan.

HI,
Let me assume, both machine /labour cost is a activities and those has been assigned to work center and has been used in routing. And let u say, per hour rate for activity machine is 20 rs.
Now, in routing, assign the activity value to produce 10 liters as 1 hr. So, automatically system will pick up value as 0.2 fo 1 litter.
let me know, if you expect something else than my understanding.
Vijay

Similar Messages

CK11N No Direct Machine Cost

Hello SAP Gurus,
When I run CK11N to estimate the standard cost, I get the result only without the direct machine cost, but labor cost is correct as bellow:
http://scn.sap.com/servlet/JiveServlet/downloadImage/506810/image001.png
As you can see:
(1) the costing lot size is 1000PC
(2) direct machine cost (HMAC) is 0.00
When I check the relavant factors, I cannot find any errors:
(1) Activity price:KP26
http://scn.sap.com/servlet/JiveServlet/downloadImage/506811/image003.png
(2) Routing:CA23
http://scn.sap.com/servlet/JiveServlet/downloadImage/506812/image005.png
(3) work center: CR03
http://scn.sap.com/servlet/JiveServlet/downloadImage/506816/image007.png
According to the basic data I maintained, the direct labor cost=(70*1000PC/3600s)*200=3888.88, That is correct.
So the direct machine cost should be: (40*1000pc/3600s)*100=1111.11, but it is actually 0.00 now.
It seems no problem for every factor, I really don't know what causes the error which actually no error message. Could you please give me some advice to resolve it? Or do I missed some key configuration?
Thank you very much!
Eric

Hello Hrusikesh,
Furtherly, the quantity of machine time can be correctly accessed from routing on the itemization view as bellow:
So I guess the problem may be caused by other reason from activity price maintanence(KP26).
But when I check the table COST, it seems correct for activity HMAC as well. You can find the table as bellow.
Cl.
Le
Object number
Year
VT
Vsn
PrI
PBlck
BTran
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Total price
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
Price (fxd)
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
PUnit
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fix+vbl.price OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Fxd Prices OC
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
Unit
200
00
KLC0000016061101HMAC
2014
01
000
001
16
RKP2
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
0.00
0.00
0.00
0.00
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
23.02
0.00
0.00
0.00
0.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
0.00
0.00
0.00
0.00
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
193.64
0.00
0.00
0.00
0.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
200
00
KLC0000016061101HMOD
2014
01
000
001
16
RKP2
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
0.00
0.00
0.00
0.00
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
11.02
0.00
0.00
0.00
0.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
0.00
0.00
0.00
0.00
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
92.70
0.00
0.00
0.00
0.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
200
00
KLC0000016061102HMAC
2014
01
000
001
16
RKP2
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
0.00
0.00
0.00
0.00
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
11.89
0.00
0.00
0.00
0.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
0.00
0.00
0.00
0.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
0.00
0.00
0.00
0.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
200
00
KLC0000016061102HMOD
2014
01
000
001
16
RKP2
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
0.00
0.00
0.00
0.00
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
23.78
0.00
0.00
0.00
0.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
0.00
0.00
0.00
0.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
0.00
0.00
0.00
0.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Do you know anyother table can check whether the price is correctly maintained or not?
Thanks
Eric

Adding Labour & Machine Cost in Costing

can anybody explain how to add machine & Labour cost in costing, as i want to see the mfg cost.
please explain step by step.
urgent

You have to define this in the work center(CR02)
Under Basic Data tab
select SAP 1 against the standard value key field
Then there should be activity type created for set up,machine & labour activity
This is done in KL01
Check if the cost elements r ther if not then create secondary cost elements in KA06
Cost center & Price for the activity types need to be maintained in KP26
Under Costing tab in work center
For set up,machine & labout activity assign the created activty types & also assign the cost center & also the relevant formula
Once this is done assign the respective work centers to the operations in the routing(CA01)
Then in production order(CO02) upon confirmation the cost will be captured & you can get the cost under cost itemization(Go to>Costs>cost itemization)
Hope the above is useful
Revert if you have further query
Regards,
SVP
Edited by: SVP on May 20, 2008 12:57 PM

How to add machine activity to service cost centre

please clarify, i want to calculate machine cost on service cost centre, wheather it is possible ? how ?
please explain the steps.

Hi,
You have a work center with service cost center in it. Asign machine cost activity type to this work center.
In routing, along with your other operation, add booking of m/c cost operation also.
You have to maintain machine cost activity in KP26.
While confirmation, system will propose the value as per routing for machine cost.
You machine cost against the required service cost center will be certainly booked.
Try it now.
Srini

Batch wise actual material consumption and activity cost

hi
my client is steel industry, client requirement is heat wise actual material and machine cost. Heat is a batch number, how i can check batch wise actual material consumption and machine cost.
regards
imdad

Hi Imdad
Whats the batch definition in your case?? have you designed One batch per Prod order or One batch per GR?
If its one batch per Prod order - you can directly see the prod order.. however, chances are less for this as Steel company might be using PCC i.e. repetitive mfg
If its one batch per GR - Then you will have to track using the Confirmation no because each Confirmation will trigger the Goods Issue and Activity Confirmations...
Using Table AFRU - You can track the individual Confirmation no and also the Activity Qty confirmed....COSS / COSSD will have the Activity Cost
If any goods mvt are posted during the Confirmation, you would see a Mat Doc No populated in the field "Mat Doc"
Br, Ajay M

Costing Issues

Dear All,
             Please give me the solutions for below
u2022     We are having 2 co.codes (A=Biscuit,B=Bread), u2018Au2019 is manufacturing biscuits.
u2022     u2018Bu2019 manufactures bread, but here the issue is, such manufactured bread relates to u2018Au2019
u2022     u2018Au2019 issues material to u2018Bu2019, including fuel.
u2022     Remaining expenditure bear by u2018Bu2019(Production Happens in u2018Bu2019)
u2022     For such manufacturing u2018Bu2019 receives job work charges from u2018Au2019
u2022     Now the issue is how can we give profitability(profit and loss) of u2018Au2019 Bread(manufacturing in u2018Bu2019)How will be arrive the exact manufacturing cost of bread at u2018Bu2019
u2022     Coming to Co.code u2018Bu2019 How can we calculate Activity Cost(Manufacturing Bread)
u2022     Whether we can do production implementation in u2018Bu2019 co.code without material(Other than Bread Nothing this Co.code will do u2018Bu2019)
u2022     B.O.M is preparing in u2018Au2019 co.code,
u2022     How can we map this scenario:Co.code u2018Au2019 want to see cost of such Bread
u2022     How ca we map this scenario: Co.Code u2019Bu2019 want to see the cost of activites (machine cost, labour cost,setup cost)(remain that material from u2018Au2019 co.code including fuel and u2018Bu2019 manufactured bread)
u2022     Atlast u2018Au2019=Biscuit Division wants Finished Good of Bread Cost(Which is manufactured in u2018Bu2019)
u2022     u2018Bu2019=Bread Division Wants of Bread Manufacturing Cost(without raw material and fuel supplied by u2018Au2019=Biscuit Division) (Which is Manufactured in u2018Bu2019).
Another Issue:
u2022     While extending material from plant to depot(depot is also a plant)
u2022     Error message is u201CDO want to change the profit center, but in material stock still existsu201D
u2022     Plant (phillaur) and Depot(ahmadabad),Phillaur having one profit center,ahamdabad is having another profit center.
u2022     Here it should allow the material(plant-phillaur) to extend (depot-ahmadabad).
Another Issue:
u2022     In Vendor Line item Display FBL1N(Profit Center updation is not showing)
u2022     In Customer Line item Display FBl5N(Profit Center Updation is not Showing)
u2022     But in General Expenditure Fd10n(Profit Center is updating)

Hi,
The Co codes A & B can transfer the material using the inter comany transfer scenario which will rasie bill to the supply company & do the production further process in company B.
If the BOM is in the Company A then if the production is in B then you can transfer the price to other company using the functionality Transfer Pricing control.
Bu2019 receives job work charges from u2018Au2019 this case you create the A & B as vendor as raise the service PR for the job done by A to B & once raise the Bill do the SES for accept bill then invoice to A.
The pricing control can be determined seperately for both CC A & B.you can get the COGM for both the plant seperately.you define same material code for this & extend to two company code.
See when extending the material you can change the profitcenter for the extended plant,for ex Plant having X profit center & Depot can have Y profit center.
while creating the material master newly you have to maintain this data,if there is any stock exists you cant change the profitcenter,you have to make the stock to zero then change the data.then updtae the stock.
see you can maintain profit center seperately for two different plant it is plant dependent data only thing is no stock should not there.
It will show the line item posted to the vendor & customer in the FBL1N & FBL5N.select the layout from the transaction it will show all option of profitcenter,costcenter,purchasing document everything,select & check.
Regards,
Raj.
u2022 In Vendor Line item Display FBL1N(Profit Center updation is not showing)
u2022 In Customer Line item Display FBl5N(Profit Center Updation is not Showing)
u2022 But in General Expenditure Fd10n(Profit Center is updating)

Problem in Standard Costing

Dear Friends,
When i am running standard cost estimate, indirect overheads are calculated from KP26.
Suppose i have maintained the Machine Cost Rate at Rs. 60 for 1 Hour. When i run the standard cost estimate for that material, it is calculated by Rs. 30 per hour. For each and every cost, it is calculating half of the price maintained.
Please help me in this regards.
Regards,
Jimmy

Hi Mangalraj,
Thank you very much for your reply. I found all the things fine.
I found one new point by my due analysis. The points is,
I have maintained activity rates in advance till June 2009. its is as follow.
Jan - 60 Per Hour
Feb - 60 Per Hour
Mar - 60 Per Hour
Apr - 60 Per Hour
May - 60 Per Hour
Jun - 60 Per Hour
Now, the system calculates the indirect OH at the rate of Rs. 30 per hour ( i.e Rs. 360 for 6 months. Now the system calculates the OH rate at Rs. 30 per hour, which is derived by Rs. 360/12 months)
Why the system is behaving like this? it takes the average of 12 months in all cases. I tried by changing the distribution key also but it does not work.
What would be the reason behind it?
I hope to get back you soon friend.
Regards,
Jimmy

Activity cost-for each activity of individual operation

Hi, in co02, cost view, analysis, shows the cost of each activity of all opeartions. say, if we have 6 opeartions, it will show the setup cost, machine cost, labor cost individually for all 6 operations. if we wants to see setup cost (etc) of individual opeartion. what are the settings req for that. pls help.

Dear,
KKBC_HOE or KKBC_ORD report you get all production order cost Plan /Actual.
Or for operational cost you need to develop report with the help of ABAP.
Regards,
R.Brahmankar

SAP Query - material costs split by labour/ingredients

Hi,
Is it possible to create a SAP query to show the following;
Material / Lab unit cost / Material lab cost
I'd also like to be able to select r show 1 or 2 cost variants.
I essentially need a list of materials and their costs broken down into their constituent parts.
How can I do this please?
Thanks

Hi Commandante
You can not have WIP split in the FI GL accounts.....
However, there is a work around possble which can give you the break up in report
You need to do small tweaking to get WIP by cost component
1. Define as many LINE IDs as your cost components in OKTZ
2. For eg: If you have cost components like raw material, packing material, labor, machine cost.... then define similar LINE IDs and do the relevant configuration for WIP as per these line IDs.... Assign the specific cost elements in WIP config instead of masking....
3. Assign cost comp str in OKN0 and choose product group = Material Group.. Transport it to production
4. Run KKRV to collect the data
5. Now run the WIP reports in KKO0
When you execute your KKO0 reports, WIP would be with the same breakup as your cost components
This is a tried and tested approach!!
Regards
Ajay M

Cost Run in Sub Con Process

Hello all,
I have an issue. There is sub con senereo. The procurement type is F & 30 ( External pur wih subcontrcting) . In the begining i am sending raw material to sub contractor & he does operation over it & sends me the finsh component. I have maintained infor records with info catagory as subcon with price Rs.60/- When i run the cost then i could see the cost of finish component as Rs.70/- ( Material coast rs.10 + 60rs as machining cost ).
Now again i am sending for 2nd operation for platting to sub con with info price. 10rs/ . But when i am again trying to run the cost for the material then i can not able to see the cost of plating ( 10rs) in the cost of material....
What do u think....where i am doing wrong......in both the case how can i maintain the info reocrds?
please guide.
Thanks in advance

Not answered

Mac Pro drive configuration/expansion advice for Time Machine

I have the following:
Mac Pro 1Tb internal drive (2 x 500Gb in software RAID, so 2 drive bays used, 2 free)
500Gb external drive (Formac XTR platinum - 2 x 250Gb in RAID)
I use SuperDuper to backup the internal to the external - I'm using about 440Gb on the internal and this fits on the external with about 10-20Gb spare. However, my usage of the internal drive is growing, and as Time Machine backups grow in size, my 500Gb external will very quickly lose the ability to go back in time and shortly afterwards run out of space for even a simple backup.
My options are:
1. Buy 2 500Gb IDE drives and upgrade the external to 1Tb - Cost about £140. If I put the redundant 250Gb drives in enclosures and sell them, net cost would come down to about £100
2. Buy single 750Gb SATA drive and install internally for TM backups - cost £110. Sell external drive and cost comes down to about £40
3. Buy 2 500Gb SATA drives and install inside Mac Pro for Time Machine - Cost about £130. Sell external and cost about £60
4. Buy single 1Tb SATA drive and install internally for TM backups - cost £200. Sell external and cost about £130
Pros & Cons
Option 1 - Con: Left with untidy external enclosure. Pro - 2 internal bays free for expansion.
Option 2 - Con: Less internal expansion, Pro: No untidy external box, can add another 750Gb drive when required
Option 3 - Con: No internal expansion. Pro: Ermmm, not sure.
Option 3 - Con: Most expensive. Pro: Longer time required before need to add another drive.
I know external drives are useful for off-site backups but I do have a 160Gb and a 320Gb external drives for that purpose (and for TM'ing my MacBook).
I think I've answered my own question - get a 750Gb SATA drive and stick it inside.
Regards,
Steve

I am in a similar situation. I have a 160gb for my boot/system drive and two 500gb for data, backed up to two other 500gb drives. Both 500gb drives are about 80% full and I bring in 50 or gig a week, paring it down quite a bit, then importing new photos and culling them out again. I may replace my 160 backup drive for my boot partition with a 750gig, but I don't see Time Machine being capable of backing up a 500 or 750gig drive that had several hundred gigs of current data and moves gig after gig onto and then out of the hard drive. I think Time Machine will be really great for many many people, and if it allows me to "roll back" my system to an earlier known-good point in time even better than my current method of using superduper when I feel my system is stable, then Time Machine will be great for me too, but I don't see how it's going to be usable for data backup for heavy professional photographic work or for video backup where large amounts of data are entered, deleted, entered again, deleted, etc etc. There isn't enough anectodal information on Time Machine to know what size is going to be really required, but I think most folks will be surprised at how much room is going to be needed - especially those that use their machines heavily. Mom and Dad who do nothing but a few emails and surfing the web will have no problem, Mac Pro users involved with grahics and video...not so easy I'm afraid. Time will tell.

Actual or plan cost take as an account

hi
plz tell me answer
In the CK11N ,we just find for one finished product cost, here we will estimate machine cost and labor cost but during production order ,here which one we will take estimate cost or really incurred cost or plan cost estimated in ck11n, generally we donu2019t take actual cost. in the real time what will happen
thank you
soumya

Dear Sowmya,
Plan price is entered in KP26 but actual price is entered in KBK6. After entering the actual price in KBK6, you can do actual price calculation. This activity brings in extra debit or credit into the production order in order to get the actual cost of the product.
Trust this answers to your query and helps much in resolving your problem!
Regards,
Ashok SINGH

Report in standard costs between RM , labour & OH

Dear Experts,
Need a report that lists all of our plants parts and breaks the part's standard cost down between raw material and labor/overhead costs.
Report that breaks down the the standard cost between raw material and labor/overhead costs
Thanks,
Bhaskar.

Dear Baskar,
Execute Report S_P99_41000111 for a material and plant combination ,cost component view 1and after executing click on
change layout(Control+F8) and select the fields,Machine Costs,Labour Cost,Overhead cost,Purchase material usage(raw
material's cost).
You can get the splitup costs in T Code CK13N,after entering the material,plant,costing variant press Enter and then press F5.
Regards
Mangalraj.S

Check the cost per hour of a work center

Hi all.
I need to make some calculations to determine if a change in work tools is justified. Basically, on our CNC machines, we have one operation that requires 2 tools of lower value (drilled hole using a bit, tapered at the top with a reamer). Tech department has proposed we switch to a new single tool that replaces the 2 previous, resulting in a faster operation time (drill bit with reamer). I'm sorry, I don't know the correct name of the tools in English, but that's beside the point anyway.
The tool is more expensive than the 2 previous tools combined, but allows for a larger number of holes to be drilled compared to the old drill bit, but less tapers than the actual reamer can do. Assuming the bit does about 1000 holes before needing replacement and the reamer about 5000, I divide the total cost of the tool by the amount of operations it can perform and I get a aprox. cost per hole for each tool. The new tool does about 2000 then needs replacing. Being more expensive, I have worked out that at it's most basic level, the cost per hole is a bit higher for the new tool.
Now, however, I need to factor in the gain from the time reduction. For that I need to know the machine cost per hour.
My question: what TA can I use to check the total running cost for a workplace, given a specific time period, or the cost for a predefined time period? I was thinking of somehow using MM03 for that, but I can't since the TA seems to be pulling a production variant that involves several conventional machines instead of the variant that uses the CNC. If I could somehow get MM03 to pull the correct production variant for calculations, then I could maybe use that. Any ideas?
All help greatly appreciated.

Hi Nuno,
Cost esitmate is done using CK11n.
Cost estimate display using CK13.
The rate per activity can be maintained in KP26 against the cost center.
Contact your FICO consultant for the details.
Regards,
Senthilkumar SD

Split valuation / material costing

Hi all
I am valuating a raw material twice since in-house production( 50 INR) and external procurement(100 INR). Material code is same as usual. This material is used to make a fert material and is to be included in costing. If then, which valuation type will the system take?
Yuvi.

costing depends on the usage of the material with split valuation
Eg . Material : AAA
Inhouse material cost -- Rs 50 -valuation type :XXX
External procurment - Rs 100-Valuation Type :YYY
you are assembling this material AAA and FERT is made
Fert Material : CCC
BBB :inhouse machining cost -Rs 25.00
costing of CCC:if you
inhouse material then -> 50+25.00-75.00
External procurement -100+25.00->125.00
Hope it is clear
G.Ganesh Kumar

Machine Cost

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