No overheads on cost estimate

When i am trying to cost estimate, i dont see the overheads on it, i have checked the activity types and BOM. it is not picking the right hours and price on the fixed and variable overheads.
Can someone please let me know, why do i need to check to solve this issue

Hi,
what is the order type?
Has the costing variant been maintained in the order customization?
In OPL1 check the costing sheet attached for the Planned as well as Actual.
Check the cost elements mentioned in the costine sheet for the base.
Check the cost element report for the estimation. whether they are hitting these cost elements from Base?
check the credit is properly maintaine?
hope its useful.
thanks.

Similar Messages

No overheads are reflecting in costing estimate

Dear All,
I am facing a problem while creating cost estimate. No overhead caliculation is reflecting.
I have done with following configuration
Configured a costing vatiant and done with assignment of
Valuation Variant--> Costing Sheet --> Base --> over head group --> percentage of the overheads.
Also done with defining the percentages for the over heads and assignment of origin group and overhead group in material master.
While calculating std. costestimate in CK11N the system is only showing the material cost but not the Overhead cost.
Can any body please advice where can we go and rectify this?
Any help will be greatly appriciated.
Thanks&Rgds,
Kumar.

Hi,
U have to check the setting of the Cost component structure
and the costing sheet also.
and also the origin group and the overhead group setting at material master, costing sheet , componemt structure.
u have to check the link of all the three.
when run the Edit costing estimate - ck40n.
hope thing r clear
With regards
krishna

Incorrect overhead % , released to material, re-run cost estimate ?

Hi guys,
Our costing team found that they are missing to maintain overhead % in Costing Sheet.
They already did CK40N, Mark and release to material master for April 2011. They want to change
the Cost Sheet and then re-run Cost estimate, mark and release.
Can we do CKR1 (we have over 1000 active SKU), and then release and mark again to April 2011.
If they do not re-calulate the plan cost, it will create a large production variance this month.
Thanks a lot !

Hi
Technically - You can process 1000 materials in one single cost estimate run in Ck40N...
however, for the sake of easy, create 2 Costing runs with 500 mats each.... it would enable you to handle the exercise easily
br, Ajay M

How to Close Planned Overhead Rates(KP26) after CK40N -cost estimate

HI,
How to close the planned overhead rates which we have maintained in the KP26 transaction after excuting Material Cost estimate?
Kindly advice me regarding the same.
Thanks
Sunitha

Hi,
Goto OKP1, enter your controlling area,version and fiscal year.then click on "PLAN"(F6) icon at your left side top.you will see transaction and period in new window.
here you can check the boxes under particular period.
Thanks,
Rau

Cost component not splitting at the time of Rune the tine of Cost Estimate

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Hi,
We are in developing phase for Product costing for coal mine project ,
we have raise coal material with Non component BOM , and Routing is only one activity with 400- Raised Coal Qty-MT ,
We upload the plan with Production cost center -activity type and cost element ( as per cost component -we have 10 cost component as per below )
RM - Blasting
Production Overhead
Power - Main
Stores,Spare,Consum
Repairs & Maint
Lease & Hire Char-PM
Power - Auxiliary
Depreciation
Over Burden
Development
we done the plan for Amount and Qty by KP06,KP26 and update plan price but system not calculate the cost component splitting in cost estimate as per planning while only one item showing for all cost to Production Overhead cost component
Production Overhead cost component which assign the secondary cost element which is assign to activity type 400
can any one help me to how we can resolve this issue
Please find attached document

Hi,
Here I am providing the necessity and importance of splitting structure, will share the configuration steps once you go through the following and get the comfort level.
                  Expense Analysis and Splitting in Manufacturing Cost Centers
Introduction In SAP Cost center work as a cost responsibility center, where all the expenses and cost are stored and analyzed for the purpose of management decision making.
The cost could be fixed or variable in nature. The difference between variable and fixed costs can be made in various ways in product costing in CO module.
Fixed costs represent the static costs incurred by the organization, which doesn’t change on the basis on manufacturing activities, which remain constant irrespective of production activities like rent for the premises, salaries of office staff etc.
On the other hand, variable cost varies based on the level of production activities; if production activities increase then variable cost also increased like electricity consumes raw material charges etc.
However all the variable cost doesn’t vary in direct proportion by quantity of goods produced.
In this document will try to define; how the Expenses analysis and splitting of cost done in manufacturing cost centers.
From controlling prospective, fixed cost remain constant regardless of operating activities, but if these factor changes, variable cost will fluctuate.
Basically raw material costs represent variable cost, but in this document main focused will be given to distinguish fixed and variable activity cost.
The segregation between fixed and variable cost is optional and is derived from the configuration and master data configured in cost center accounting and overhead accounting.
Activity Price:
There are different methods that could be used in cost center accounting to determine the activity price. The simple way is the manually enter “Fixed” and “Variable” Activity cost (KP26).
However there are other methods used in Cost center Planning and Budgeting that automatically calculate the fixed and variable activity price.
Here the focused will be given on Planning and Budgeting activity and automatic calculation of plan activity rate in cost center.
This method aggregate planned costs by cost element and capacity by plan unit to calculate the activity price.
Activity independent costs are segregated among different activities based on Splitting Structure, while activity dependent cost directly used for the purpose of variable activity rate calculation.
Fixed Activity Cost:
In product costing all those cost, which doesn’t vary based on the activities in manufacturing cost will represent fixed cost.
In a manufacturing cost centers there may be two or more activities performed.
To calculate the activities rate, the fixed costs are distributed to various activities on the basis of Splitting Structure defined for cost center.
Variable Activity Cost:
Variable activity cost, which directly depend upon the activity type and fluctuate based on increase or decrease in manufacturing activities. In SAP variable activity cost are directly linked to the respective activity.
Activity Prices: Fixed and Variable Split
In Cost Center Accounting dividing the cost between Fixed and Variable requires appropriate split to be made in the cost entered for the activity. The process is described below:
i. Variable cost would be planned at activity level and expenses should be maintained at cost element in the manufacturing cost center by assigning activity and cost element combination.
In other word, the expenses should be planned on Activity type at the time of primary cost planning (KP06).
Then the variable activity rates are calculated on Total cost planned at Activity divided by Total number of activity planned at that cost center (i.e. capacity in KP26)
ii. Fixed cost would be planned at independent of activity type. These costs are maintained in KP06 at cost element level on manufacturing cost center.
Then the fixed costs are distributed on various activity types on the basis of Splitting structure defined at OKEW.
In Splitting Structure we define the rules, how the fixed cost will be distributed to Activities. For the purpose of this document, considering split of fixed cost on the basis of Capacity maintained in KP26.
Regards,
Pavan kumar Arvapally

Cost estimate for material / plant is incorrect

Dear Gurus,
While creating material cost estimate with quantity structure the above error occurs.
Please let me know the solution for this?
Regards,
Ajit

Dear,
Please check with your Accounting,Costing datas in the material master .
Please check with fields like material origin,With Quantity Structure,Variance
Key,Planned price 1 & date against it.
Valuation Class,Price control indicator,Origin group,Overhead group(if maintained
any),Profit center.
If not solved ,please send the screen shots.
Regards
Mangal

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

St.cost estimate in order

hi sir,
please tell my problem,
i have estimated the material cost and released, closed the production order also.
now i want cost estimate for same product with the same raw material no change in MOB,no change in price also. i want to make repeated cost estimate with slight difference in costing sheet or overhead rate or activity price.
please tell how to make repeated cost estimate for production order.
while doing so like i got error '' product cost estmate is released ''
i have taken new costing variant,but same costing type and valuation variant have been taken and i have tried also using transfer variant (pc01,pc01) with no transfer and with transfer also but i didn't get , same error showing
1.i have taken cost type"01-st.prod.order plan( standard cost, legal view)
2.006 valuation variant plan( plan price,moving price, st.price).
TO UNDER STAND EASILY I HAVE GIVEN THIS LEANTHY,
please tell me how to cost estimate repeated same product afer mark and release the variant.
thank you
sekhar

Dear ,
I think "CKR1 Reorganize of Cost estimate" will be useful for for you.
Enter
Comapny code
Plant
Material Number
choose radio button :
Current Std. cost estimate.
GOPAN

Raw Material Cost Estimate

Hi,
I am trying to cost raw material.
1. I perform all the steps in product costing, assign condition type to origin group:
PB00 cond type to PB00 origin group
ZMAT cond type to ZMAT origin group
this is because I want to see the breakout of the PB00 and ZMAT.
I also specify to read the purchase info record price first in the valuation variant.
2. I set up the purchase info record with PB00 and ZMAT(% uplift).
3. When I run Ck11n, my cost estimate is not reading the Purch Info Record information, is reading the standard price info. I am not using BOM, nor Routing, just the purchase info record to cost.
What else is missing, why the cost estimate is not seeing the purchase info record information?!
Any suggestion greatly appreciated.
Thanks,
Alice

Hi Gulshan,
I did all that you suggested.
Let me list out all the steps I have configured, and see what else I am missing.
T-code OKTZ,
I created a cost component structure
structure    component    cost element
ZG             10-material    3500001234
ZG              20-Overhead 1100(2nd c.e.)
ZG              30-ZCDU       ?????
My question for the cost component structure here:
For component 10 - the material is for internally produced parts, and for component 30, I want to allocated the PIR condition type ZCDU to this cost component for purchased part ABC, what should I be using for the cost element?! for component 30? It can't be the same cost element as component 10.
I did all the valuation variant set up - using PIR, and then substrategy is condition type from PIR.
Assign the delivery cost set up as well,
PB00 assign to origin group PB00
ZCDU assign to origin group ZCDU
Created source list for vendor & material
so in my PIR, I created condition type PB00, and condition ZCDU.
PB00 = $2.00
ZCDU = $1.00
and when I run CK11N, I want it to pick up the PIR and roll up the cost to $3, and that should update the material master standard price, right?!
not sure what else I am missing that is not picking up the PIR.

Confuguarable Material Cost Estimate

Hi All.,
It is an urgent requirement.......
My client having both configuarable & non configuarable materials.....
with regarding to the configuarable material cost estimate i don't have good grip on this.
Can anybody please share some guidlines for how to create the cost estimate.....
Thanks one and all.,
Raja

Configurable materials can only have a cost estimate when there is a sales order bom to define the build.
We use configurable material and the cost estimate is configured in the same manner as standard material (Costing variant,costing dates, transfer control, etc. but some of the details differ), but it is only Saved within a Sales order. You can use CU50 for a trial cost - the configuration will have to be created in CU50 before it will cost.
When costing configurable materials in sales orders or for sales orders the valuation variant is different from standard cost variant in these points:
1 - The costing type is different. 18 - Sales order costing vs. 01 - Standard cost est. (mat.)
The Costing type for Sales order does not allow updating of the standard price in the Mat Mstr
The Costing type for Sales order also controls the use of Labor overhead for the costing variant.
2 - Valuation Variant can be different - Valuation for Prod Costing specifies the rules to build a cost estimate. For Sales order, you may want it to use ONLY the standard price for a material/component, and NOT build a cost estimate.
3 - Date control - The default from date for the Config Mat in a Sales order is Today while for product costing it is first of next month
Our Prod Cost Est. is valid until the end of the Fiscal year when a new cost estimate is released. Our Config Material on a Sales order is valid until the end of time.
I cannot explain why we chose one over the other, most of the decisions were made before I arrived. But the Costing Type Difference is very important to us, because there is no chance that the cost estimate will interfere with setting of standards and it allows searching for a Sales Order Cost estimate.
You have to analyze how each part of the costing variant could impact the business and decide how to set it. If circumstances change, you can review the settings later. (I fully intend to review some of ours directly after this conversation.)
Sales Order Costing Variants are on OKY9 while product costing is at OKKN
Sales Order Costing Variants are assigned under SD Maintain Requirements Classes for Costing/Account Assignment (table T459K)
Hope this helps.
Althea

Cost center doubt in Itemization of Material Cost Estimate

Hi,
I have one doubt. I creating a material cost estimate of a header material.A new overhead rate ZCDD has been maintained in the costing sheet. An existing crdit key ZC9 has been assigned to the overhead rate ZCDD. The cost element and cost center row has been added in the credit key.
When I run the material cost estimate, the cost element it is coming, but the cost center it is picking is not the one which has been maintained in the credit key.
Can you please clarify my doubt, I am stuck up on this. Please let me know if you need any more information roe clarifications.
Thank you very much.
Prithwiraj.

Hi Rau,
Thanks for the reply.
Can u tell me, is it mandatory to have only one to one Cost Center-Cost element mapping in a Credit Key?
I mean to say is it like that we can assign a cost element of a credit key only to one cost center?
Thanks,
Prithwiraj.

Can we use two costing variants for standards cost estimate release.

Hi,
We have 2 plants (plant 5100 and plant 5200) under company code 5000.
We have run standard cost estimate(CK11N) for material 98001000027 at plant 5100 using costing variant ZG01 and at plant 5200 using costing variant ZG02. First, we released standard cost estimate (CK24) for this materia at plant 5100 and set (in marking allowance) costing variant ZG01 and costing version 01. Next time when we are trying to release the standard cost estimate for the same material for plant 5200, it is automatically picking ZG01 as costing variant in marking allowance and it is not allowing to change the costing variant to ZG02 saying Company code 5000: Release already carried out, cancellation not possible, Message no. CK797.
Is it possible to use two different costing variants for release of standard cost estimate for a material at two different plants at the same company code? If so how?
Please suggest.
Thanks,
Bijay

Hi,
Thanks for your reply again.
What is the benefit of assigning "Single Valuation Variant same to different Plants" ? In costing variant also we can assign maximum only one valuation variant and this valuation variant will default for all the plants, and hence I dont think it is necessary to assign same valuation variant to different plants.
My issue is :
Example: ( Standard Cost Estimate for material 98001000027)
Plant - 1
Material Cost                                             Rs.100
Labour Cost                                               Rs.50
Overheads (10% of Labour Cost)                  Rs.5
(say ,through costing sheet - 1)
Total Standard Cost Estimate                      Rs.155
Plant - 2
Material Cost                                             Rs.150
Labour Cost                                               Rs.100
Overheads (20% of Labour Cost)                  Rs.20
(say, through costing sheet - 2)
Total Standard Cost Estimate                      Rs.270
Now, Please explain why we cannot have two Standard Cost Estimates for a material at two different plants? If it is possible to have two standard cost estimates for a material at two different plants, how to take care of overheads (rate of which varies) at two different plants (plant - 1 > 10% and plant- 2>20%) as we can assign maximum one costing sheet to a valuation variant variant?
How to map the system so as to meet the above requirement?
Thanks,
Bijay

Costing sheet and standard cost estimate

Hi
I am trying to use Costing sheet for overhead calculation .
But in costing run I am not getting the overhead amount calculated .
I created the costing sheet and assigned that to valuation variant .
Where from the actual / Plan values being picked up for over head calculation .
More over I need to understand on what basis the %age for overhead can be calculted to be aborbed to material cost .
In costing run I am having ZERO values for overhead .
I have followed the following steps
Costing Sheet: Components
Define Calculation Bases
Define Percentage Overhead Rates
Define Quantity-Based Overhead Rates
Define Credits
Define Overhead Keys
Define Overhead Groups
Even then the Production overhead is not being calculated at the time of Cost Run
for standard cost estimate .
regards

Do you enter overhead group in the material master.
Key that groups together materials to which the same overhead is applied.
Procedure
In costing with and without quantity structure, and when costing production orders and run schedule headers, you can apply percentage overhead charges by means of an overhead key if you:
Assign a costing sheet to your production order or run schedule header, or to the valuation variant for the cost estimate
Enter overhead charges in this costing sheet that use the overhead key field
Assign the overhead key to an overhead group
Enter this overhead group in the material master record of the material

Std Cost Estimate-Processwise

I have a requirement and seek your clarification:
Here we are in the process of settings of Product Costing. The client wants to have a display of cost estimate as follows:
Here the production process has 3 stages. Once the Standard Costing is run, it should be able to view the cost estimate as follows:
Process-I : Raw Material Cost xx
                   Direct Labour Cost xx
                   Overheads              xx
Process-II : Raw Material Cost xx
                   Direct Labour Cost xx
                   Overheads              xx
Process-III : Raw Material Cost xx
                   Direct Labour Cost xx
                   Overheads              xx
What is the best way out ? Do I have to have different cost elements for same item process-wise ?
Please give your inputs.

Hi Nikitha
I am not able to understand where your issue is...
This requirement is pretty standard and is addressed with in std SAP itself....
For each of these process,I am sure, you would be having a separate material code.... i.e. say, raw mat 1 is inputted... After passing through Process 1, It is termed as SFG A... Then A passes through Process 2 and the outcome is termed as SFG B and similarly FG C
Each Material A, B and C has its own BOM and routing.... BOM for B, will have A as component and BOM for C will have B as component....
When you execute CK11N for each one of these, cost for each A B and C is stored separately because each material is a separate entity in itself.. There is no reason why you would define separate GL accounts for them...
In CK13N, each one of them will show you its own cost...
You can await inputs from other members also...
Regards
Ajay M

Cost estimate Issue

Hi All,
We are creating cost estimate and got error message "Credit Key not defined".
We are not maintaining credit key in our cost sheet and we dont follow this process.
Please let us know what is missing in our process according to user transaction level .And what does this mean in costing terms.
Regards,
Payal Saxena

Hi,
1). Check weather you have assigned any Credit key in your Costing Sheet which is not available in system? Or
2). If you dont assign any Credit in Costing sheet then remove the costing sheet assignment in Costing Variant/Valuation Variant
Remember,If you remove Costing sheet assignment, it wont pull any overheads in Standard Costestimate.

No overheads on cost estimate

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