Process Industries Costing

Hi,
  I am new to SAP, Implementing PPPI module for Process Industry. I have the following requirement,
Our Client Producing Oil as Finished along with 4 additional products. In that 3 products they will sold and 1 product they use for Internal purpose. So I consider 3 product as a Co product and 1 is Byproduct.
1. In the Finished Product Material master I maintained Co Product Apportionment structure. In that Apportionment structure I have idea of maintaining the Material cost proportion for finished and co product. But additionally we have the option for production cost and overhead cost. How can I maintain these cost. Is there any special setting need?
2. How can I map the By product costing.
Experts please help me.
Regards,
M25111979

Hi Pradeep,
Sorry for the late reply.
I have the following doubt,
   1. We can maintain Material cost, Production cost, Overhead cost proportion for Header and Co product material in the same apportionment structure. If I maintain the same means during cost estimation I got only the Material cost proportion only not the production and overhead cost proportion.
2. In our scenario we have by product. How the cost calculation taking place, Is there any special settings required. How the By product cost taking place?
Can you please explain in details regarding the above queries.
Regards,
M25111979.

Similar Messages

  • Pi industries costing

    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

    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

  • Process Order Cost Analysis Target and Actual Quantity Missing

    This is related to Process order costing .
    Issue : Before activating  Material Update field in Costing view 1 of Material master , we have created few process orders and Delivered .
    Hence cost analysis shows Actual and target cost fields  Empty in COST ANALYSIS  report of  order  . After Updating field in Material master , New Process orders are calculated with Actual and Target cost .
    Solution needed : How to do Actual and Target cost estimation back in cost analysis report  for old process orders which are created before Material Update field ?

    You have deleted the Component in the BoM.
    Then you have created a production order, check if the start date of this order is after the date change in the BoM..... Can be that the component stills exists in the order ? Have you tried deleting the compoent in the order BoM ?

  • Control Costs not Displayed in Process Order Cost Reports

    Hi
    After Variance calculation and settlement of Process Orders also COntrol COst appearing as Zero, is there any step I am missing or any configuration needs to be adjusted?
    Thanks in Advance
    Regards
    Venkat

    Hi,
    I checked in IDES system as well, there also using standard settings control costs are not getting updated on the process orders. 
    I couldn't makeout how the control costs fields get updated in the process order cost reports
    Regards
    Venkat

  • Process of costing

    hi.....
    i want to know all about process for cost of goods sold,cost of manufacture,cost of production.
    Thanks & Regards
    Rekha sharma

    For frozen standard cost (both legal frozen standard and profit center standard), maintaining planning costing sheets are used
    KZZ2 (Percentage Overhead Type/Plant) and
    KZM2 (Quantity Overhead Type/Plant)
    Both [' will pickup when processing standard cost estimate']
    The prerequisites are first check the following:
    MM03 - check material standard price
    CS03 - check material BOM
    CA23 - check Rate Routing
    KP27/KP26 - check/update Production Activity Type Price

  • Process Industries

    hi all
    i am completeely new for Process industries.
    i am getting a new implementation project of paint industries.
    so please explain me how to create
    reciepies,
    resource
    material master
    bom ?
    please help me

    Hi,
    Please go through following Link
    Click on PDF Index. From the List get Document related to Production planning -process industries.
    http://help.sap.com/printdocu/core/Print46c/en/Data/htm/english.htm
    Regards,
    R.Brahmankar

  • Mile stone confirmation in process industries

    HI,
    Please tell how to carry out milestone confirmation in process industries any settings

    In img settings required are
    in transaction - OP67, see FOR THE CONTROL KEY PI01, see that confirmation field is with setting --2(Confirmation required).
    for confirmation see the help document
    http://help.sap.com/saphelp_47x200/helpdata/en/05/603bc6462311d182b50000e829fbfe/frameset.htm
    If you are using PP-PI sheet i.e.process management then let us know
    GO THROUGH THIS LINK FIRST IF PROCESS MANGEMENT IS INVOLVED
    http://help.sap.com/saphelp_47x200/helpdata/en/05/603bc6462311d182b50000e829fbfe/frameset.htm

  • Planning Process of Costing Sheets - Standard Cost Estimate

    Can some one please explain which planning values costing sheets will pickup when processing standard cost estimate
    Thanks.

    For frozen standard cost (both legal frozen standard and profit center standard), maintaining planning costing sheets are used
    KZZ2 (Percentage Overhead Type/Plant) and
    KZM2 (Quantity Overhead Type/Plant)
    Both [' will pickup when processing standard cost estimate']
    The prerequisites are first check the following:
    MM03 - check material standard price
    CS03 - check material BOM
    CA23 - check Rate Routing
    KP27/KP26 - check/update Production Activity Type Price

  • Import Process - Translate costs to row material inventory

    We need to define our internal Import Process of row materials
    currently we imports material and entry to inventory, without
    the nationalization costs,and free charge of nationalization (customs, transportation, etc. ..)
    , these costs and expenses are recorded separately
    because different vendors are also .
    There is also the reality that the product reaches the
    floor and you need to enter a stock for the final product
    assembly, and the actual values ​​of costs are known a week later.
    We need to implement a process in sap as simple as possible to
    allow us to have real and current cost of our materials in
    inventory. and pay to our differents process´s suppliers
    I could detail step by step how serious this process?

    Hi,
    currently we imports material and entry to inventory, without
    the nationalization costs,and free charge of nationalization (customs, transportation, etc. ..)
    , these costs and expenses are recorded separately
    because different vendors are also .
    first thing there is no relation between different vendor and inventory,eventhogh you have different vendor in condition tab you can inventoried duty if you want
    Please try understand basic of import PO
    as you know there are total 7 custom condition out of which 3 condition value add in material master( in this case you have different vendor in custom condition)
    check following link and revert back if any issue
    [Import PO procedure..?;
    [http://www.sap-img.com/materials/procedure-for-import-po-and-duty.htm]
    Regards
    Kailas Ugale

  • Easy Cost Planning: Calculation Row (Business Process) in Cost Model Derivation Rule

    Hi All,
    The Requirement:
    Using the Cost Model I am able to do up to Sub-Total Value.  I tried with Calculation Row (Business Process) in the Cost Model Derivation Rule, but could not succeed. 
    I tried with Base Planning Object, but the formulas are different for other scenarios.  Which require 5 to 6 Base Planning Objects are required to be created to get the total amount for a single line item, in the construction project there will be more than 10,000 line items and it is very difficult to maintain the data and also it is time consuming.
    Can you suggest me, how to map the requirement?
    Best Regards,
    K. Rajendra Prasad Rao

    You need to check the following for the material cost to appear in network costing:
    1. Check whether costing variant is assigned to the network or not.
    2. Check whether costing relevancy indicator is checked in material component assigned to the network.
    3.  If costing variant exists, check the valuation variant and strategy sequence for material valuation.
    4. Go to the material master and see whether price is mentioned  or not.
    I would suggest you to use Network costing, Also note network costing are recorded in Co version '0' so if you have maintained your ECP for '0' version, there is a chance of both the costing getting added up.
    Edited by: Ahmed Rifaee on Mar 28, 2010 10:10 PM

  • Make To Order - Process Industries

    We are process order industries. And we have make to order scnerio (Tcode : cor1). Now we also want to make to order scnerio.
    Please guide me what are configuration changes, what are tcodes for the same.

    > We are process order industries. And we have make to order scnerio (Tcode : cor1). Now we also want to make to order scenario.
    I feel now you are creating a process order directly  in COR1,
    IS MRP run is required?  for your client?
    If MRP is required, use strategy 40, System will consider both make to stock as well as MTO for that material,  IF you want  pure make to stock strategy then use strategy 20. that you can assign in MRP3 view of material  master
    then enter the sale order, the requirement will come automatically in MD04
    and Run MRP in Md02
    and convert the plan order in to production order in MD04 or MD40, MD41

  • HCM Processes & Forms Cost Assignments Defaults

    Hello Everyone,
    I have a question about making Cost Assignments for Infotyps like "Additional Payment" (0015) or "Employee Remuneration Info" (2010) within a Processes and Forms Scenario. This is really a huge requirement for us because the hole Company is split in several subsidiaries so we need to book the costs to different cost objects.
    In the Backend World (PA30/PA61) when creating a record for either one of the Infotypes I can choose the Option "Maintain cost assignment" so I can define a different cost object where the costs of the created record should be booked.
    I know the data of the cost assignment get's stored in the tables ASSHR & ASSOB. But as I'm using the SAP Backend Services SAP_PA and SAP_PT I can't make any DB update/insert statments after the records are created.
    Did anyone implemented a Scenario like this before?
    Would be awesome if someone could give me an advise.
    Best regards,
    Tobias

    If the infotypes in  question are standard PD infotypes you could use SAP_PD service to update them.
    For any other tables you will have to go with a advanced generic service or do the update in a background workflow task.
    Refer here to the post by Christopher Solomon's Profile | SCN: http://scn.sap.com/community/erp/hcm/blog/2012/08/20/hcm-processes-forms-when-all-else-failsadvanced-generic-services
    Hope this helps.
    Regards.

  • Process Order Costing

    Hi Guru's,
                 I am having problem that when my process order gets confirmed the values of production are not updated in the cost center, what i done wrong, pls provide me solution.
    Thanks & Regards,
    Karad D D

    Pls help me in this

  • Process Order Costing by proportion

    Hi All ,
    We used t-code : CORZ to record operation start and end time , base on the duration to calcaute the production cost
    In our industry , the processing normally will take quite longer , most of case over the month
    Let's say , the operation start from middle of this month and will finish end of next month
    We found out the issue the cost related to activities linked to that operations are only declared when the operation is finished
    is there any way can setup the cost calcuation base on the period proportion ? for example 40% from last month , 60% from current month ?
    Thanks for the advising !
    Denny

    Hi,
    You can use the WIP settlement option for order settlement.
    For this process you have to confirm the operations partially at the time you want to do the settlement. For example you have started one order in mid of month i.e. 15th & you want to settle it on end of month i.e. 30th. You have to carry out partial confirmation & WIP settlement. System will take the costs based on the partially confirmed activites.
    Please discuss it with your CO consultant for controlling part of this process.
    Hope this will help you.
    Regards,
    Navin

  • Process OrderBalance Cost

    Dear All
                       We have Some Process order with balance Cost, Price control V is used situation is this many time we are not able to settle order as inventory movement is very fast when we check order to settle on next day we are not having that quantity in stock as it already dispatched. so we dnt want to settle those order with balance cost.
    Can i close mm period and FI and CO period wit balance cost in order.
    if i do same what will be implecation on system.

    What happens to the $$ of material consumed in order, if you are not settling?
    If the accountants are satisfied with the dollar flow, you should be able to:
    Try Transaction OKO7 - change the Settlement proile from "to be settled in full" to "can Be settled"
    the order can then be closed with a balance on it.
    Be sure to immediatly revert the settlement profile

Maybe you are looking for