Priliminary costing

Hi,
We are in repetative manfacturing industry(Fertilizer). We are using product cost collector.
REM profile is craeted with using data from preliminary costing of prodct cost collector(2nd option in REM profile).
Price control "S" we are using in Material master.
1. Should i run preliminary cost every month? because this rate is not updating material master. where this cost will be used ? goods receipt is posting with standard cost only. Can i post goods receipt with preliminary cost?
2. Standard cost run at month end we are executing for stock revaluation effect in the same month.
How variance will be calculated with priliminary cost ???? or Standard cost???
If variance thorugh priliminary cost, what would be effect in costing reports??
3. What is simultenous cost?
Thanks in advance
Padma

Dear Padma,
1.Once when the product cost collector is created through KKF6N,while saving automatically the
system calculates the preliminary cost estimate for that material.
2.Whenever there is a change in the BOM or routing of that material,come to KKF6N--->goto change
mode and click on costing button (calculator like icon) and save the datas.
If you miss this step means while backflushing through MFBF,the system always considers the old
BOM and old routing details and captures its related quantities and costs,so the actual booking will not
be proper.
3.Even if your REM profile supports only backflushing as per to standard cost estimate ,still once after
for a period if already a released cost estimate exists and after that if there is any BOM changes in
order to capture this you have to execute the step mentioned in step2.
4.the captured variances will be settled at the month end.
Check and revert back.
Regards
Mangalraj.S

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PCC vs Production Order Based Costing

Hi,
Please reply back difference between PCC and Production Order Based Costing.
Thanks in advance.
Regards,
Sameer

Hi,
PCC is product cost collector which is used in mostly REM process.
1. Here you have to creat the product cost collector mean sthe cost is based on period, when u create PCC you are creating the priliminary cost means the quanity strucure costing considering BOM , activity prize and the cost from costing sheet i.e admin cost, etc .
2. In product cost collector the the cost of document posted in backflush is posted periodiclly. For that u have to run standard cost run i. CK11N and CK24. monthly.
3. but in Production oredr or Process order thre is no PCC instaed of PCC the cost is settle with the settlement profile defined in OPL8 i.e order type dependent parameter SPRO.
4. Each prd ord is REL,CNF and TECO when the status is TECO means the logistic point of view the order is complet now ready to costing .
5 Then FI consultant settle this order
6. here order based costing no period based costing
hope u r prob solve..
Siddhesh

Cost estimates

Hi: All,
Can any one Please explain the following with its applications
1) Standard Cost Estimate for material
2)Priliminary cost estimate for Product Cost COllector.
please explain them with example.
your help will be rewarded.
Cheers,
Nagesh.

Dear Nagesh,
1.Standard Cost Estimate for a material or product is made up of Materials cost,Over head cost & the activity cost(oparation cost).
Standard Cost estimate which is done using T code CK40N is for the Finished product so that it automatcially calculates the HALB
materials cost also.Product Cost = Material's Cost (Raw Materials & Semi-finished product's ) + Activity Cost (operation cost) +
Overhead cost,if an overhead group is assigned in the material master of Finished product.
For Raw-materials Planned price's are given in the material master in Costing 2 view & the price control indicator will be V.
For In-house manufactured Semi-finished & Finished products the price control indicator will be S.
Activity cost is calculated as per the operation time maintained in Routing or Rate routing(A Cost center & activity type will be
assigned to the work center and a rate should be existing for that activity type & cost center combination in KP26).
Once after standard cost estimate is completed the calculated cost is printed in the material master for FERT & HALB products.
This is carried out using t code CK40N.
2.Preliminary Cost estimate is carried out using T code KKF6N for Inhouse manufactured HALB & FERT's which comes under REM
scenario.Its only a cost calculation but this value does not gets updated in the material master.
3.SO in REM scenario as per the setting in control data 1 for cost accouting post activities it can be using standard cost estimate or
else using data from pre.cost estimate for product cost collector confirmation can be carried out that's MFBF can be carried out.
I hope this will clear your doubts.
Regards
Mangalraj.S

Diff between Planned Cost - Target Cost

Hi all of you,
Could you please explain me the difference between Planned Cost and Target Cost. Why do we go for the settlement of Variance (Diff between Actual cost and Target Cost).
Please give me your valuable suggestions regarding.
Thanks & Regards
Ramki

HI,
Let us say, for the product X, my planned cost through standard cost estimate is 100 Rs. This has been found through executing the t code Ck40n or Ck11n.
One more assumption is, We have created production order with quanity 10. Did Goods receipt 10 nos.
Now ,,
Planned cost is = Std cost estimate cost x Qunaity=100 x 10= 1000
Target cost: This is being used for comparison purpose. You can have many versions of cost using target cost. let us say, I want to have target version price should be equal to priliminary cost estimate instead of std cost estimate. This can be achived through customizing in t code OKV6. And production order will pick up the target cost value as per the target cost version.
This target cost field in Prod. order gets updated once you run variance calculation.
Actual cost:
Standard cost * actual qty= 100*10=1000
Settlement:
While doing GR/GI to order, the cost is captured under the production order. if there is a difference between actual and plan, that should be posted to Price diffference account.That activiry is being done at the time of settlement.
vijay

About product cost collector

hi
pp experts
what is t/c mf30 what is the used of priliminary cost estimate after u create & run product cost collector

Hi Nil
This Update in Prem Cost estimate is required if you use the following scenario
1. standard price for the FG
2. Backflush using PREM cost estimate( IN REM PROFILE)
So whenever there is a change in the BOM or standard values in the Routing or activity price then to update the PREM cost estimate you need to Execute MF30 or KKF6N. So that it will use the updated cost.
so your variance calculation at any time will have exact variance which will improve the accuraty of CO-PA
hope this helps
BR
SK

CK 11 N

Dear all..
Our client does not require product costing.
He just intrested to run Cost estimates with Qty. Structure i.e.CK11N.
I just want to know what settings are required for that..from start to end.... from controlling area settings to costing sheet if required..
It will be better if anybody will provide configuration links or guides..

HI Ranjeet,
Your client does not required prodict costing , but still he want CK11N means???
Which is your process either REM, PP or PP-PI.
In REM - repetative manufacturing there is be product costing like
1. u have product cost collector
2.production version
3. do ck11n
4.ck24
then cost is updated in the materil master of costing view.
In CK11N you are runing the cost for a materil for certain period with giving input prd version, costing lot, dates.
once Ck11N is complet then you are do Ck24 i.e marking and relase the cost.
Because of product cost collector the cost is collectd here and this cost is called priliminary cost , which is quanity structure of BOM component.
This is monthly activity and then settle the cost.
regarding to sheet, check OPN2, you are responsible to gve valuation varrient to CO consultant so that it assign into costing sheet.
CO consultant defines the REL stratyegy of costing, then over head cost parameter etc in costing sheet.
For more details plz check the SPRO settings of PRODUCT COSTING
Regards
Siddhesh

Shipment Cost for different Forwarding agents in one Shipment Document

Hi.
I have an requirement, can we create one shipment type, which is based on multiple Forwading Agents,
i.e suppose if we have a Route with priliminary & subsequent legs having forwrding agents different at each stage.cost has to be calculated according to the forwarding agents with in the document according to the ROUTE .plz suggest..
Regards.
Sujith.

Hi Sujith,
This situation may arriase anytime.
it is possible to create one shipment cost document for more than 2 forwarding agents.
Standard SAP gives all the option in such scenario.
No Z developments required for achieving seperate costing for individual forwarder.
Regards,
Dnyandeo H. Ainarkar

Configuring requirement : ordered item to absorb cost of free goods

Hello Friends,
I need to configure this in SAP SD.
The main item should accumulate the cost of the free goods.
I have set the cumulative indicator and deactivated pring for this item.
Do i still need to configure the stock value for the free goods as cost free item? Or is this step only applicable for
another scenario, like,
If I were to activate Pricing such that free goods is displayed as subitem and VPRS configured as cost and discount set to 100%
1. Set Item category to TANN using FREE usage AND
2. use condition type RL00 with requirement 55.
3. use pricing type B.
regards
Ravi

Read this SAP help at http://help.sap.com/saphelp_47x200/helpdata/en/dd/55fa4e545a11d1a7020000e829fd11/frameset.htm and the topic Free Goods in Sales and Distribution Processing for details.
Also go through each step of the configuration of the path at SPRO->Sales and distribution->basic functions->free goods.
Regards,

Cost(vprs) of free goods with batch managment

Dear Gurus,
I have a problem ahout free goods with batch management.
Cost(VPRS) is not accumulated in billing(free goods is not relevant for billing).
My configurations are shown as below:
Ordered goods (and batch) item category :zta1(copied from tan)
Free goods (and batch) item category :zann (copied from tann) pricing:B ;not relevant for billing;dermination cost:X
copy control(from delivery to billing):
ztan: accumulation cost :X
If I use the material without batch management,Cost of free goods(without batch) is accumulated to main item(ordered goods).
So, what can I do?
Thanks and Best Regards,
Lykin Kan

Hi,
These notes are useful:
SAP Note 1365939 - VPRS logic and Customizing settings in SD
SAP Note 547570 - FAQ: VPRS in pricing
If you have the problem in the transfer from SD conditions to CO-PA, check if you transfer only invoices to COPA, if you don't invoice the deliveries of free goods, then you don't transfer this 'sales' or costs of 'gifts' to COPA. You can check the customizing of COPA in tcode ORKE (IMG for COPA). SAP Note 74486 - INFO: Overview of consulting notes for CO-PA is a good summary about this issue.
I hope this helps you
Regards,
Eduardo
PD: I forgot SAP Note Number 33968 SD/CO-PA: Characteristics from sales doc tables
Edited by: E_Hinojosa on Sep 10, 2010 9:44 AM

Cost of free goods in header

dear all
i have configured free goods,in the order the cost is coming for free goods at item level and it is not adding to the header cost total.
for eg:i have 2 items and 1 free item.costs r 300,400,500 respectively.
in the header it is showing only 700 as cost.
i observed the inventory doc is posting correctly with 1200(which includes free goods cost).
can anybody tell weather it should add up or not and how it can be done??
thanks
reddy

Dear Yugandhar
Check
SPRO->Sales and Distribution->Basic Functions->Free Goods->Control Free Goods Pricing->
Control Pricing For Free Goods Item Category you will find statistical value
or in VOV7 below pricing you find statistical value
Statistical values
Indicates whether the system takes the value of an item into account
    when it determines the total value of a document.
There are three options
      System will copy item to header totals
X     No cumulation - Values cannot be used statistically
Y     No cumulation - Values can be used statistically
Check if it is initial for your item category
Standard for TANN is initial and pricing is B     Pricing for free goods (100% discount)
Do give your feedback
Regards
Jitesh

Item cost not found for one or more items - Inventory Posting

Good Day Mentors,
My user has encountered an error during Inventory Posting and its "Item cost not found for one or more items".
The specific Message ID from SAP's System Message Log is 10001287.
I found a similar post which addresses this error here.
But unfortunately it did not help me solve my user's problem.
I already checked if the items had a defined "Item Cost" in the Item Master Data Inventory Tab, and they all have "Item Cost" defined.
I'm not sure if this will help, but below is the Inventory Audit Report of one of the items that is throwing the "Item cost not found" error.
I am not a business consultant neither am I literate in accounting, so thanks for the patience.
SAP Version: 9.0 PL5
Valuation Method: Moving Average
Thanks in advance!
Sean

Hi Augusto and Raviraj,
I've already verified in our production database the points you made:
- Is the "Manage Item cost per warehouse" selected in the Basic Initialization Screen?
YES
- Is the "Manage Inventory by Warehouse" ticked/checked in the "Inventory Data" tab of the "Item Master Data" screen?
YES
* I apologize for not have been able to give this information upfront.
Anyway, the database only has one warehouse at the moment.
I've checked the items, like the item in the screen shot above, and it does have an item cost.
Below is the screenshot of the sample item from my original post,
Thanks in advance!
Sean

I have a 27 in. iMac with the latest version of Snow Leopard. When Lion comes out, will it be software I purchase and download online? I am trying to prepare for cost and don't have a point of reference, having been a Windows guy until last summer.

I want to know what to expect in terms of moving from one OS to another. Having been a Windows guy until last summer, my only experience is going from one version of Windows to another, which is usually a fairly costly purchase. I will want to go to Lion, but as a retired teacher, my income is fixed. I am not looking for a specific price, I am sure that is unknown, but I would just like to know help Apple does these things so I won't be sadly surprised.

Historically Apple has sold OS X upgrades via DVD media however with the advent of the Mac Apple Store that throws another possibility into the mix. That's about as much as I can say as these forums don't allow us to speculate about future products. As for the cost historically Apple has priced OS X upgrades between $29-$129, the last upgrade (Snow Leopard) was only $29 but that was an exception. Again we cannot speculate on these forums about that. The good news is that Apple is unlike Microsoft which makes OS upgrades expensive and complicated. The choice with OS X is do you want a server version (most users don't need one) or a single computer license. The users that buy server versions tend to have a number of Macs they manage from a server, most consumers don't have this issue.
Keep reading the news, as you know Apple has announced a Summer release for Lion.
Upgrades on OS X are usually very simple. I've upgraded from Tiger to Leopard to Snow Leopard and each transition has been very easy. With any major OS upgrade there are some basic rules to follow, for example always, always, always backup prior to any update. When Lion is released to the general public post again for what to do to prepare or even do a Google search on "How to prepare for OS X upgrade" and you will find a number of articles that will provide some suggestions and valuable insight. You can also re-post here and users will be happy to assist.

Report for bom wise target and actual cost as well as qty at line item

Dear Experts,
Is there any standard tcode for bom wise target and actual cost as well as qty at line item level for the month.
there is one tcode s_alr_87013127 but user has to double click in order to get line item details.
I want to see line item wise breakup/bom wise target and cost cost as well as qty.
Thanks in advance.
regards
RK

Dear experts,
I am still looking for a revert.
regards
RK

Open Balance on Sales Order Cost Report

Hi SAP Group -
I have a couple questions about the settlement of manufacturing variance to COPA.
When our settlement process is complete (production order and sales order both settled to COPA), there is a balance remaining on the sales order cost report which is equal to the manufacturing variance on the production order.
It seems that the manufacturing variance is posting from the production order to the sales order, but is not being assigned to the PSEG and flowing to COPA.
I am looking for advice in two areas:
First, how do we "clear" these balances on old orders that are already settled?
Second, how do we prevent this from happening on future orders?
Thanks !!!

Refer to OSS 183250 and note 186485.
If you dont specify in the settlement profile for the production order that the variances are not transferred from the production order into CO-PA, you will settle the variances to <b>CO-PA twice</b>: once from the production order (broken down into variance categories), and once from the sales order item. The settlement rule still references the material and not the sales order item.
Special Features of Product Cost by Sales Order with Valuated Sales Order Stock
<a href="http://help.sap.com/erp2005_ehp_02/helpdata/en/90/ba66cc446711d189420000e829fbbd/content.htm">Read the topic on 'Special Features of Product Cost by Sales Order with Valuated Sales Order Stock'</a>
You may want to check the period of the variance settlement from mfg order to sales order and ensure the settlement of sales order is also done the same period, if the type is PER.

Dunning costs and Dunning letters

Hi to All,
Any body can help me out, In this regard.,
In the report of Dunning cost(Sendiing Dunning letters to customers)., Customers are showing but company code was not showing.How can i get the company code for those customers.
And one more thing was customer dunning letter cost also showing differently for Customers(for one customer $ 2 and for other itwas variated to $2.50 likewise).
Where I can see the dunning letter cost per customer.
Thanks If in advance,
Dara

Hi,
Line items should reach minimum number of days, referring to the due date of net payment, to reach a certain dunning level.
In FBMP check you dunning interval. If line item has reached interval maintained for 2rd and 3rd level then items will not be dunned.
Also check dunning levels for your dunning procedure in FBMP.
If you find no problem with dunning settings then, activate additional log for the dunning run to identify exact reason for the problem.
Thanks!
Raju

Priliminary costing

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