Pi industries costing

Question

hai gurus,
1) For my new project which follows continuous process of producing beverages on MTS scenario,
her rectified spirit is produced in one plant as one finished goods. so the production is based on
the input from plg department,here all the raw material is made available for the production and
production withdraw materials from stores and produce the spirit and gives back to stores by GR.
For this scenario how to do costing as there is no order is followed,can we introduce process
order and do costing .
2) After production of spirit it is send to bottling plant and where it is mixed with certain ingradients
and filled in bottles ,packed and again send to stores,here also all the raw materials are made
available for the production,they receive matl by GI and send the finished goods (cases) to stores
by  GR,so no order is used , how to bring the system in to order to follow and track the productions
and do the costing.
kindly suggest me the sap system to control and monitor entire production process,csoting  etc.
with regards,
sekar chand

Answer 1

Hi,
Pls. find here some details about Process order costing procedure:
Process Orders in Cost Object Controlling
Definition
Manufacturing order used in the process industries.
Use
Process orders are used when materials or services are produced in specific quantities on specific dates. They enable you to plan resources, control how process orders are processed, and specify the rules for account assignment and order settlement.
Structure
A process order consists of operations. The operations are performed on primary resources. An operation is divided into phases.
A phase is an independent processing step that contains a detailed description of one stage of the manufacturing process. Phases are performed on the primary resource of the higher-level operation.
The way in which the phases are related to each other defines the sequence of the manufacturing process. Phase relationships can be sequential, parallel, or overlapping.
Multiple materials required for the execution of a specific processing step can be planned for an operation or phase.
A phase contains standard values for activities. These values serve to calculate dates, capacity requirements, and costs.
Multiple secondary resources can be planned for operations and phases in addition to the primary resource.
A phase contains a number of process instructions providing information relevant to process control.
Integration
A process order can be based on a master recipe.
A process order can be created from a planned order.
When an order is processed, the process instructions of a phase are transferred to the control recipe destination, which requires this information for process control purposes.
An inspection lot can be created when a process order is released.
Process Orders in Cost Object Controlling
Process Order Linked to Product Cost Collector
If you want to collect costs by product rather than by production order, you can specify in Customizing that you want to collect the costs on a product cost collector rather than on the process order. In this case you use the functions of Product Cost by Period. The process order is not a cost object in this case.
You define this in Customizing for Product Cost by Period under Product Cost Collectors ® Define Default Values for Order Types or in Customizing for Product Cost by Order under Manufacturing Orders ® Define Default Values for Order Types (PP and CO).
If you have specified in the order type that you want to collect the costs on a product cost collector, the system creates a link to the product cost collector when you create a process order for the corresponding characteristic combination (such as material / plant / production version). The process order receives the status PCC (product cost collector). This status prevents costs from being assigned to the process order. The production process number is shown in the process order. You can maintain the following fields in the product cost collector:
Costing variant actual
Variance key
Results analysis key
Profit center
Business area
Costing sheet
Overhead key
In the process order, these fields are not ready for input. The valuation variant specified in the Costing variant actual of the product cost collector is used to valuate the data confirmed for the process order. The Costing variant planned is not transferred from the product cost collector but is defaulted from the order type of the process order. This costing variant creates a temporary preliminary order cost estimate which cannot be saved.
No settlement rule is generated for a process order that is linked to a product cost collector.
The link between the process order and the production process of the product cost collector can only be changed as long as no functions that result in costs have been performed for the process order. If no such functions have been performed, then for example if the production version or the BOM and routing are changed, the process order can be assigned to a different product cost collector. If costs have been incurred, the original assignment is retained even if the production version or the BOM and routing are changed.
You can view the product cost collector from within the process order.
If no product cost collector has been created to which the production order can be linked, the system issues a message.
Process orders that specify a product cost collector are ignored when process orders are processed in the period-end closing activities of Cost Object Controlling.
Process Order as Cost Object in Product Cost by Order
In Product Cost by Order, the process order is the cost object.
As a process manufacturer, you can use process orders and production orders. You can also use production orders in joint production. The use of process orders is recommended, however, because they can handle the special features of process manufacturing.
You can create a preliminary cost estimate for a process order after releasing it. In sales-order-related production, the preliminary cost estimate of the process order can be used to calculate the standard price if you are using a valuated sales order stock.
Actual costs for process orders are collected during the production process, such as through goods issues and internal activity allocations.You can view the actual costs and the planned costs for the production order at any time.
At the end of the period you carry out period closing for the process order, in which you can calculate work in process, for example.
You can calculate the variances for the process order either cumulatively (lot-based) or by period.
You can summarize process orders and display the costs in the information system in various ways, such as by plant.
You can link process orders to collective orders.
Reorganization of Process Orders
Process orders that you no longer need can be deleted in a reorganization run.
Hope this helps.
Regards,
Tejas