Material Ledger Actual costing - fully costed BOMs and variance type split

We are in the process of activating material ledger and have 2 user
requirements that we have not yet been able to complete. First, the
difference between standard cost and weighted average cost needs to be
split between the variance types (raw material purchase price, raw
material usage, packaging price, packaging usage, etc.). Secondly we
need a fully exploded cost itemization that supports the weighted
average cost, similar to the costing structure pane in transaction
ck13n.
Do you know of any custom developement that might assist us in these
requirements, or have any information that might help us develop a
process to calculate these values ourselves.
Thanks

Similar Messages

Material Ledger : Actual Cost settlement to Consumption Accounts

Dear CO Experts,
We are aware that when we run CKMLCP, all variances (in the Price Diff GL Account) due to Material Prices flutuation, diff in Standard & Actual Cost of Production, etc. would finally get settled to Consumption or Stock Account in its appropriate ratios.
Consumption Acount GL is a Cost Element with Cost Category as 1.
There can be cases, when there are diferences in Production Order, due to fluctuations in Prices or Actual consumption is more than standard consumption.
When a Production Order is settled the difference is posted to Price Diff Account.
When a Material Ledger (Actual Costing) is executed, Price Diff Account is targetted to be Zero. The Price Diff is then splitted in Stock & Consumtion Account in its appropriate ratios.
Main Question :
Since, Consumption Acount GL is a Cost Element with Cost Category as 1, what shall be the CO Account Assignment Object, when the ML value is settled to Consumption Accounts.

hi merchant..
   1. Price diff between stnd and act is initially goes to PRD a/c through OBYC setting at the time of GR/Invoiceing/Issue if mat is set as S&3.
   2. In case of mat set as V&2 idially there should not be any diff but may arise some small amount due to "no or less stock qty" at the time of invoicing.
3. When CKMLCP is run these price diff & order settlement diff splitted to cons and stock as you mentioned.
Now your question :
" Since, Consumption Acount GL is a Cost Element with Cost Category as 1, what shall be the CO Account Assignment Object, when the ML value is settled to Consumption Accounts"
    Cons GL is cost element cat 1 for capturing mat mov for Issues to orders/cost centres,oth co obj for primary posting at stnd price.
    Now at the time of CKMLCP run you revaluate the materials and price diff are splitted to cons & stock and goes to mat to calculate act cost (stnd +/- prd).
I think this will give you some light on your issue.
kkumar

Material Ledger - Actual / Standard costing

Hi Experts, we need some help in material price determination with material ledger. Due to local regulations, we need to have our material master with price control determination valued to V in local currency, however, due to IFRS regulations, we need to post the group currency (USD) with standard costing.
We've already configured opposite way (local/group currency with price control S and calculation of actual costing with CKMLCP for previous period) but we need something similar for local currency in V price determination.
Any ideas?
Thanks in advance.

Thanks for your response. Yes, CKMLCP will change the price control to V but we need this price in every operation in local currency (price determination 2). Now, in material ledger, we need to post the standard price (by operation or adjusting with a process at the end of the period). This is the scenario that you are saying but backwards.

Material Ledger - Actual costing

Hi experts,
I am searching for the best practices with ML actual costing.
Please let me know whether it is the best choice to ML perform costing run based on YTD, or periodwise?
What are your experiences related to production orders WIP calculations and prevent of lost costs?
Please advice whether I can count with some positives or negatives while I decided to use ML costing run on YTD basis?
Thanks a lot

Hi Jay,
that can be done without issues. At least not from a system point of view. If the company's finance people and the auditor can live with a new valuation method in the middle of the year, just activate material ledger and perform the closing from that ponit in time onwards.
And even if they are not sure: you still can activate ML and calculate the actual prices, but then don't post them as revaluations but just as accruals, more or less statistically.
best regards,
Udo

Material Ledger-Actual costing Run

Deal All,
I would like to run actual costing for previous period and current period (April-Mar)
08-Nov
09-Dec
But I have not done the period end closing for prior perods means 01-07.
If I do now actual cost run for 08 & 09 what will be the impact on systems?
Best Regards,
Sbpsbp

Hi,
Basically a monthly Material Ledger closing should be processed in all period, so you already have shifted a period in material master, you cannot processed a couple of preceding months with some error: C712 or C805 etc.
If you are facing above situation, please check SAP Note 361236.

Material Ledger - actual costing in intercompany transfer order

Hi Gurus,
in my client's scenario there are a lot a of one-step intercompany transfer order (from plant A in company 1 to plant B in company 2), the ML is active and we have EHP4.
We're into the design phase and the client doesn't know yet exactelly the requirements but i would need to know the possibile solutions about actual costing calculation:
Case 1: is it possible to have the actual cost and cost component split in receiver plant equal to the sender one, and with margin between sender and receiver in a dedicated cost element? What are the settings to be done in SAP?
Case 2: is it possible to have the actual cost and cost component split in receiver plant NOT equal to the sender one, so with cost component split only depending by the price condition into the intercompany PO and margin between sender and receiver NOT in a dedicated cost element? What are the settings to be done in SAP?
Thank you very much!!
Marco

Hi Marco,
You can read the documentation provided in this link
http://help.sap.com/erp2005_ehp_06/helpdata/en/c5/616893ba30402faeb09c151b4fa24c/frameset.htm
Regards
Ali

Costing relevancy in BOM and CK11n

hi,
In BOM for an item i have maintained Costing relevancy as 1 (50% relevancy) which is a procurement item, but even after running Ck11n for the matrl iam getting 100% cost for the child item.
Is there any other setting to be maintained.
regards

Hi,
The reason SAP has provided that is during the computation of the inventory cost estimate & not for the standard cost estimate the field is considered.
For standard cost estimate it is either / or situation, i.e. it is relevant for costing or not relevant, there is no % relevance for this.
This is in place due to financial & reporting requirements where some parts might require a devaluation. So i would strongly suggest to discuss with your Costing consultant for this.
However for this case, if you can let us know what is the reason you want to have this kind of partial costing done, the forum can provide some possible alternative if its a genuine business need.
Regards,
Vivek

Actual Costing concept in Material Ledger

Hi
Masters , can any body please explain the concept of Acutal costing in material ledger i think that involves the following steps:
1 Activate actual costing.
2.Define userdefined names for receipts and consumption
3.Assign user defined names for receipts and consumption /
for the above 2 and 3 points what is the purpose we have to define and assign user defined names in coantrolling level selecting the B+ Procurement and V+ Consumption.
thanks in advance

Hi,
Actual costing is a huge concept. It is difficult to explain the concept in few words
Please go through the following link for detailed informaton:
http://help.sap.com/printdocu/core/print46c/en/data/pdf/COPCACT/COPCACT.pdf
Configuration Points:
Path: IMG>Controlling>Product Cost Controlling --> Actual costing/Material Ledger
1. Activate Material Ledger for valuation areas
2. Assign Currency types to Material Ledger Type
3. Assign Material Ledger Type to Valuation Area
4. Configure Dynamic Price Changes
5. Define Material Update Structure
6. Assign Material Update Structure to a Valuation Area
7. Activate Actual Cost Component Split
8. Activate Actual Costing
Coming to your Questions 2 and 3. they are required to be created if you want your own Controlling level for transactions that you would like to differentiate in the material ledger, further than the standard system offers. Normally we don't use unless there are some specific business requirements
Some key points would be:
ML records all receipts, consumptions and variances for each material.
ML gives overview for each material of the starting balance, receipts, consumption, variance and ending balance.
ML calculates the actual cost for each material u2013 finished goods, packaging.
If a material has BOM, variances of lower levels are rolled up to next higher level up to finished goods, to calculate actual cost for raw material, semi finished & Finished goods in ML as unit price.
Calculated actual cost at end of month can be used as standard price for next period in the material master.
SAP MM is on standard price based costing, ML can do monthly average costing.
Direct settlement of all kind of price differences / exchange rate difference/ to materials at the end of the period.
Once activated , it is not that easy to deactivate although possible with implications like not having historic data.
Cannot be used in isolation : All the plants within the company code shall be material ledger active.
Material Price change is not possible after first transaction in that period.
Using material ledger, inventory in US plant in Canada will be available in USD and CAD
Hope this would help you.
Best Regards
Surya

Material Master (Material Ledger- Product cost actual costing)

When I create a material in MM01 and no Standard price is set the columns "Company code currency" y "Profit valuation" are disabled.
The only column available is the one corresponding to company code currency. The field "Price unit" starts with the number of 1000 and this information is not copied to the other price unit fields unless you introduce a value in the Standar price - Company code currency field.
Does any one knows a user exit that can modify this values (Price unit - Group Currency and Price unit - Profit valuation) ?
Kind Regards

Hi
1. It is not mondatory to activate Material ledger to create Product Cost collector.
2 It is not mondatory to create product cost collector if we actovate Material Ledger.
Material ledger Activation
1. In OMX1 activate ML and price determination 3 for production plants and 2 for sales depo plants (if need)
2 In. OMX3 assign ML type standard
3. Configure dynamic price changes : assign price release 1
4. Assign material update structure to a valuation area
5. Activate actual costing indicator and assign 2 Activity update relevant to price determination
PCC:
1.In KKF6N,enter the material,plant and select create button and select the order type as
RM01, radio button selected for production version and assign the production version here
2.Save the PCC for preliminary costing
3. PCC integrates with PP module in production version selection
Regards
Dev

Material ledger- pipeline materials actual costing

Dear all,
I am having problem with pipeline materials not being included in multilevel actual BOM in Material ledger actual costing. My client need information about actual quantity of pipeline material (natural gas) being consumed in multilevel production. I am not sure if pipeline materials are subject to actual costing/material ledger. Actual cost component is showing the amount of costs of natural gas, but in multilevel BOM, pipeline materials are not included. Am I right about this?
thanks in advance,
Duu0161ko

Hi Rafal,
there is a functionality built into acual costing to cover this:
[WIP Revaluation |http://help.sap.com/saphelp_erp60_sp/helpdata/en/9e/9e7a74681f1d4f9ba6f5d64aba4a44/frameset.htm]
best regards,
Udo

Material costing without BOM and routing

I have recd an order on sample basis. I want to cost the materia. I don't have BOM and routing. I want to cost that material manually. Is there any provision in SAP to do costing in such type of scenarios.

Dear BSR,
I guess you are meaning about cost estimate without quantity structure.
Check T Code KKPAN.
Regards
Mangalraj.S

Material Ledger,Revaluation Production Cost Center ,Standard Cost

Hi, I have a problem with revaluation of production cost centers.
Firstly, production cost center expenses are settled via activity types onto the production order at the end of the period. However, CKMLCP revaluate cost centers after the settlement because of using standard price. So cost centers at the end of the period have some amount.
As a result we can not find actual price for production orders.
If I use standard cost in order to consume on cost centers, material ledger revaluates again this cost centers. I dont want this condition. Because this cost center is settled to other cost object before closing.
Thanks.
Message was edited by:
Ergul Taslacioglu

Hi
Go to the following path in SPRO:
Controlling -> Product Cost Controlling -> Actual Costing/Material Ledger -> Actual Costing -> Activate Actual Costing. Double-click on "Actiavte Actual Costing" and change the indicator from "2" to "1".

Problem in costing run of bom

Hi all,
I have created routing & BOM for a finished material. This material has one semifinished material under it.the semifinished material has one raw material under it.
I have created two BOMs for the finished and the semifinished materials, and two routings.
when i execute cost estimation CK11n, for the semifinished material,i got the message, "Material in plant bp01 has no bom" and the Message no. is CK424.
How to overcome this?
regards,
K.Kumar.

Hi..
Please ignore previous reply..
check the BOM again (maybe the BOM usage defines it as not costing relevant)
in T-code CS03, tick F4 for the field BOM usage.
In accordance with the usage key, you define for all items whether they
o must be maintained in costing
o can be maintained in costing (.)
o cannot be maintained in costing
Furthermore check the costing relevancy sign in your missing BOM position (in the BOM position, goto "Status/Lng Text" in the "Item status" check if Costing Relevancy is set to X.
Regards
Vivek

Material Ledger for Stock Transfer Postings

Hi All,
I have a question about the way material ledger is calculated for stock transfer postings (movement type 641). I will give an example to illustrate this issue:
Material A has a Standard cost of $10
Material B has a Standard cost of $8
During the month 100 units were transferred from material A to Material B. This created a financial posting as follows:
Credit Material A -          $1000
Debit Material B -           $800
Debit Price Difference    $200
This price difference of $200 was used in the calculation of Actual cost for material B
However, the Actual Cost for Material A was $9. I would have expected the system to use this actual cost to calculate the difference to be posted to material B. Hence the difference used in Material B should have been $100 {(9 8) X 100} and not $200.
Has anyone had a similar issue, or know how the system resolves this (if at all)?
Points will be rewarded for relevance.
Thanks

Dave, I see that your process is slightly different to mine. We do not revalue inventory at month end, instead the material ledger program posts the revalued amount to a reserve account and the actual cost is only a statistical entry. The material ledger calculation is reversed automatically in the new month and the standard price is used for valuation.
I think this might make it difficult for the system to value STO's at actual. I may need to check with SAP.
Thanks

Material ledger - BRAZIL

Hi gurus,
my brazilian client wants recalculate, at the end of every month, the stocks and sales using the real prices of the material. he wants revaluate sales and stocks using monthly purchasing price instead of standard price.
Further more, he wants revaluate production orders (WIP), stocks and cost of sales using re-calculation of labor rate.
1) Can I use material ledger for this needs?
2) Is there every one with experience about brazilian client that help about this issue?
Thanks in advance
Regards

Hi Patricia,
did you finally implement a working solution? What did you use?
Could you succesfully run the material ledger/actual costing for the calendar months? I assume that you had to run the company code in a different controlling area than the one you are using for corporate from 27 to 26...
we are facing a similar issue and I would appreciate any experience you can provide.
thanks,
Luis

Material Ledger Actual costing - fully costed BOMs and variance type split

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