Product cost by period process

Hello
Gurus,
Can anybody please explain the process of product cost by period, eventhough i searched but i did'nt get clear picture.
Please help in this because i have interview
Thanks

Dear Kavya,
1.Product cost by period is used in a REM scenario - Repetitive Manufacturing.
2.Here a product cost collector is created for the material + each production version combination.
3.All the costs(activity posting,Goods issue,goods receipt) are captured in the product cost collector of the respetive material.
4.Each product cost collector has an order number and based on this variance calcualtion and settlement can be done according
to the business scenario.
5.This type of costing can be used for a continous production like cement industry,steel manufacturing(dealing with furnace).
6.Here along with the costing part there are certain other shop floor control parameters to choose or select this scenario or a
Discrete scenario(where Production order's are used).
7.In a REM scenario confirmation will be made against a planned order or even with out any planned order.
Regards
S Mangalraj

Similar Messages

Product cost by period/process configuration

hi
please any one send me your personal email id that who have more idea on process costing/ product cost by period
please help me .
thank you
nagesh

What do you need?
Ambadas

About product cost by period

HI all
I have some questions
can u caculate product cost by period,however in the normal production order enviroment ,do not use the process order type like "rm01"
how to config?

Hi,
there are two process of the REM( product cost for period ) and discrete are different, In rem we use the product cast collector with the production version and this product cost collector will be the cost object, were as in discrete we use the production order as the cost object.
in rem we use product cost collector as it is ... easy and there will not be much of change in the bom and routing is also simple, and also to be noted the product will not chnage over a long period of time. there is no defined lot size as constant flow of production line.
more over we use black fleshing - automatic movement of good issue and receipt.
hope this is clear assign points.
Edited by: krishna singareddy on Mar 10, 2008 10:17 PM

Product cost by period

hello gurus,
Can anyone please tell me the what are the configuration is required to Product cost by period
thanks
rihana

Dear Rihana,
In my understanding product cost by period will be used in a REM scenario(Repetitive manufacturing).
The product cost collector serves as the cost collecting object and for each Semifinished or finished product for which
confirmation(backflush through T Code MFBF) are made a product cost collector should exist.
Product cost collector will be generally created for Order type RM01 and number ranges has to be defined.
Each product cost collector has a number and using the no,the variance and the cost will be settled periodically.
Product cost collectors will be created using T Code KKF6N or KKF6M and the preliminary cost estimate can be done through
MF30.
Regards
Mangalraj.S

Product Cost by Period and Product Cost by Order

Hi,
For one client can we go for a group of materials(FERT) with Product Cost by Period and for some other group of materials materials (FERT) Product Cost by Order.
My question is can both the concepts be used simultaniously for one client?
Any difficultieis if you follow both the concepts simultaniously.
I Would greatly appreciate your replies.
Thanks!!!
-Kumar

Hi
You can very well use both the scenarios at same time.. Absolutely no issues with it...
Ensure that your Prod order types are separate for both the scenarios....
Prod Order type for Cost by order will have FUL as settlement type and the order type for Cost by period will have PER....
So, your user in shop floor needs to have that discipline of selecting the correct order type..
If your identification is based on some field like Material group, you can also put a custom ABAP check which wil give an error message incase wrong order type is chosen
For eg: Mat group ABC is allowed for cost by order... Order type for cost by order is Say, ZPP1... Your ABAP code can check if Mat group is ABC and order type is not ZPP1, then issue an error message
To put this check, use BADI WORKORDER_UPDATE
Regards
Ajay M

MESSAGE ERROR: WIP a target cost only possible with Product Cost by Period

I work with orders assign to WBS Element (Non-valuated stock).
If I enter confirmation to an order created, and then execute KKAX transaction to calculate WIP, the system shows this error message u201Cu2018WIP a target cost only possible with Product Cost by Periodu2019u201D, but actually the result has been calculated ok.
If WIP is executed collectively KKAO the error message is the same but the result is not calculated
Everything suggests that what we want is possible, but the error doesnu2019t disappear
Does anyone know what could be reason for the error?
Thanks

Hi
Check your RA key and WIP customizing... WIP at target cost is possible only in Product cost by period
Check your settlement rule in Prod Order.. I guess it would be FUL and not PER.. FUL settlement means you are in product cost by order.. There seems to be a mismatch between your settlement type (FUL/PER) and WIP config
Moreover, if your stock is non valuated, do you at all need to calculate WIP for prod orders? I dont think so
Ajay M

Which Product Costing is most used By order, By Period, By Sales Order?

Hi,
As you know there are three types of product costing.
Product Cost by Order
Product Cost by Period
Product Cost by Sales Order
May i know which product costing method is widely used in the industries?

Hi Vijay,
Looks like your working on MTO and MTS pocess.I am new to Make To Order and Make to Stock controlling process and client like to implement Make To Order with SD integration. have you worked on these processes? Please explain me what is Make to Order and Make to Stock Process in Controlling (SAP-CO) and configuration in CO.
If you can provide process design documents and configuration documents to me.
anusha.r3 at gmail
Thanks & Regards,
Anusha

Difference between three types of product costs

Hi,
SAP Masters
can any bode explain the what is the difference between product cost by period, product cost by sale order and the third one is there and also please esplain the master recipe

Dear Kavya,
__1.Product Cost by Period:__
Product cost Collector:
1.Product Cost collector is one of the master data in REM scenario.
2.Product Cost collector is used as a cost object in REM scenario,which means all the cost will be booked under this product
cost collector for that material which is nothing but period based costing.
3.Whatever the confirmations that are done in MFBF or MF41 or MF42N,the cost will get debited or credited accordingly for that
material and the impact will be seen in the product cost collector.
4.This product cost collector will be having an order number which will be used for order settlement and variance calculation.
5.For creating a product cost collector you will require a production version.
6.so whenever you do an assembly or activity or component backflush,the cost will be booked under this product cost collector.
2.Master Recipe:
This comes under PP-PI,where Process order's are used for production.
The master recipe is used for the manufacture of products or for rendering services.
Structure
A master recipe consists of a header and several operations, each of which is carried out at a primary resource. An operation
is subdivided into phases.
A master recipe contains process control data that can be stored in the following way:
· in the form of characteristic-based process instructions, which you define in the operation overview for the phases.
· in the form of XSteps, that you maintain in the XStep editor ( XSteps).
http://help.sap.com/saphelperp60_sp/helpdata/en/05/603bc6462311d182b50000e829fbfe/frameset.htm_
Revert back with your further queries.
Regards
Mangalraj.S

Type of product cost

Hello,
Can anyone please tell me how can I find out what kind of product cost is being used in my system. I want to know whether product cost by period, order or by sales order in my system.
Can any please suggest me.
thank you.

Dear Nivas,
you can check the configuration under Product Costing
if you are using sale order costing you can see the configuration in that path only.
other than that you can't get the configuration information.
regards
radha

Product Costs by Sales Orders

HI,
Is there any extractor that pulls the Product Costs by Sales Orders?
The 0CO_PC_02 extractor extracts Product Cost by Order and Product Cost by Period. It extracts just the
OR* entries from the COSB, COSS tables but not the
VB* and PR* entries from the tables. Values of Transaction KABG
Regards
Vijay

HI,
Is there any extractor that pulls the Product Costs by Sales Orders?
The 0CO_PC_02 extractor extracts Product Cost by Order and Product Cost by Period. It extracts just the
OR* entries from the COSB, COSS tables but not the
VB* and PR* entries from the tables. Values of Transaction KABG
Regards
Vijay

REM Product cost collectors and Production version

Hi All,
Can some one pls let me know
What are the product cost collectors in REM and how to create the product cost collectors ?
What is the production version and the difference between production version and controlling version?
Thanks & Regards,
Bujji

Dear Bujji,
A product cost collector is a cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a material. It can be created in txn KKF6N.
[Product Cosr Collector|http://help.sap.com/saphelp_47x200/helpdata/EN/08/77ba810a1611d3a6b900104b55d538/frameset.htm]
[Product Cost Collectors: Collective Entry for Repetitive Manufacturing |http://help.sap.com/saphelp_47x200/helpdata/EN/08/77ba810a1611d3a6b900104b55d538/frameset.htm]
A production version determines the various production techniques that can be used to produce a material. It defines the following information:
Alternative BOM for a BOM explosion
Task list type, task list group, and group counter for assignment to task lists
Lot-size restrictions and period of validity
A material can have one or more production versions.
It can be defined in the Material Master (txn MM02) in one of the following views:
MRP 4
Work Scheduling
Costing 1
The costing version is a different issue. It is a costing parameter and is used to save several cost estimates for the same material, with the same costing variant and the same costing date (e.g. in oder to cost the material several times with minor changes without creating new costing variants).
BR,
Antje

Product Cost Collectors

Hi,
Can anyone tell me what is exactly product cost collectors and what is the impact on the production orders and cost?
If there is a BOM change, we will just create new production version and new product cost collector. We will not update the standard cost. Is it that the new production orders will pick up the new cost based on the product cost collector? even though the standard cost was not up to date? What will be the impact to the accounting?
Kindly please advise. Thank you.

Hi,
Following link will be useful:
http://help.sap.com/saphelp_47x200/helpdata/en/5f/1faba54aee11d189740000e8322d00/frameset.htm
A few points for reference:
- Product Cost by Period, Product is the main cost object.
- Actual costs can be collected on the PCC
- No settlement rule for a mfg order linked to a PCC
- In PCC, the components in the BOM picks up the price from the material master
- If Std Cost Est is not upto date, then matls in PCC will take existing / old price
- So the FG Preliminary cost estimate will not match with its Std Cost
- Moreover inventory valuation may vary if std cost est is not up to date
- The Valuatin variant specified in the Costing variant actual of the PCC is used to valuate the data confirmed for the mfg order.
- This costing variant results in a temporary prelim cost est for the mfg order. This preliminary cost estimate cannot be saved.
Integration with Mfg Order:-
If you have specified in the order type of your mfg orders that the costs should be collected on a PCC rather than on the mfg order, the system creates a link to the PCC when you create a mfg order for the corresponding combination of characteristics (such as material / plant / production version). The mfg order receives the status PCC (product cost collector). This status prevents costs from being allocated to the manufacturing order.
The above might give you some lead.
Raj

Business scenario of Product Costing

Hi all
pls explain me about business scenario of product costing
thanks in advance

Hi:
(From the link: https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/webcontent/uuid/4f0f6717-0b01-0010-949b-9ab68dd45fec [original link is broken])
Identified Need: You need to accurately determine the costs incurred in producing the goods and services that your company provides.
Business Process to Meet that Need: Product Costing
Product Costing helps a company know the costs incurred by its products in order to successfully manage its product portfolio.The product cost accounting business process calculates cost of goods manufactured (COGM) or cost of goods sold (COGS) broken down by each step of the production process.
For config:
www.sap-topjobs.com/SpecialPP/samplepc.doc
Assign points if info helps
Vj

Product Costing and Production Planning

Hi,
Is Product Costing absolutely required before implementing Production Planning, specifically PP orders? My client does not want to plan costs or need any cost estimates. They want to use a PP order to check availability for a BOM, and then issue it out to an external vendor for services. After this material is processed by the external vendor, he would ship it back and we would be doing a goods receipt at the parent level of the BOM. The whole purpose of this is to get the accurate price of the BOM parent which would include all service costs. This parent would finally be sold via the regular SD sales order process. Our Logisitics consultant suggested that the only way this could be accomplished is a PP order. All this looks okay, but he also mentioned that a PP order cannot work without Product Costing and the process cant be accomplished CO-PC. I am unable to grasp why SAP would force us to have costing when the client doesnt need any cost estimates, planning etc. Could any one please tell me if we need CO-PC for this scenario?

Dear SAPFicon,
Technically, to run PP without using product cost planning would cause a lot of problems during business process of production order. Because, once a production order is created then the data structured is freezed in the PO and if there is any missing data it will cause errors. Any errors in production order would stop the following transactions. We never know what would be the error level of the production order. The worst case, the production or should be cancel and start it all over again.
But by using product costing or product cost planning, this is a preliminary step to prevent and eliminate any error of the products tobe produced.
So, ideally, there is one person in charge to ensure that the products which be produced in the production orders are free of error.
So, the product costing is an integrated module that take data from variouse module such as PP, MM, CO, HR.
The product costing use the Logistic master data such as folllowing;
1. Bill of material
2. Routing
3. Work center
4. Material master
How you can say, that running PP without PC will run, while the to run the smooth production order, you need to mandatory parameter in Material Master that belong to Costing area.
Without having product costing, I can assure that your client will trap in a lot of troubles with their business process.
Please see the online documentation for product costing for a better overview or you are welcome to ask again
Regards,
Irhasni

Proposal for Product costing

Hi,
Need suggestion..
My client is Steel Wire manufacturer. I have to suggest him the best Product costing approach. What should I suggest him...in terms of Product cost by Period or Product cost by Order / sales Order...
Please advice.
regards

hi,
it all depends on upon the business of the client
the following are the few examples of all the three PC approach
1. If the manufacturing takes place in lots size or batches the best idea would be to go for PC by order
2. If production is carried out only when a customer places an order then PC by sales order is an option.
3. If the products produced do not change with different sales order and are uniform over a period of time and are produced repetively PC by period suits such a case.
hope this helps
regards
sayeed

Product cost by period process

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