Product cost Collection - Revaluation

I am trying to do the revaluation of product cost collectors at actual prices.
My activity planning price entered manually (Rs.17500 - fixed)
My activity actual price also entered manually (Rs.19500-fixed)
Now I am doing the CON1/CON2 transactions. But no details are coming in the revaluations screen eventhough system says objects are selected.
What could be the reason friends ?

WHETHER THIS ACTIVITY, FOR WHICH YOU HAVE CHANGED ACTIVITY PRICES, HAS BEEN USED??
IF THIS ACTIVITY IS NOT USED AT ALL, THEN , AS YOU KNOW, THERE WILL NOT BE ANY RE-VALUATION.
PLZ CHECK THIS.

Similar Messages

Table for Material-Cost center-Settlement Rule_REM product cost collecter

I want to generate a report to see for particular material which cost center and which settlement rule is available.
If we go in Product cost collecter (PCC) there we have an option to see settlement rule under header tab, I want to fetch that data for material as selection parameter, can anyone suggest how to get the data as,
Material        Cost Center        Settlement Rule
Thank you.
Regards,
Deven

Hi,
pleasefind tables related with cost.
                      TKA01               Controlling areas
                     TKA02               Controlling area assignment
                     KEKO               Product-costing header
     KEPH               Cost components for cost of goods manuf.
     KALO               Costing objects
     KANZ               Sales order items - costing objects
     Cost center master data
                    CSKS               Cost Center Master Data
                    CSKT               Cost center texts
                    CRCO               Assignment of Work Center to Cost Center
                    COSP               CO Object: Cost Totals for External Postings
                    COEP               CO Object: Line Items (by Period)
.     COBK               CO Object: Document header
     COST               CO Object: Price Totals
Regards
SANIL

Product Costing and COPA

Hi Friends,
Could any one tell me the basic settlements done to COPA from Product Costing point of view and which tables will be updated at the periodic settlemnet of variences to COPA?
Thank you ,
Parthu

Hi
During settlement, variances are posted to CO-PA from the Production/Process Order/Production Cost Collecter at the same time that they are posted to the G/L. The fixed and variable portions of the variance are carried over into CO-PA with the same breakdown as the cost component layout that comprises the standard cost. Any characteristics that have been configured in CO-PA that are related to the product number are carried over for analysis, such as product number, product line, plant, and so on. This access allows the matching of variances with the products cost of sales.
The variances are posted to CO-PA in the period when they are incurred, not the period when the product is sold.
If you are using costing based CO-PA, the tables updated are:
CExYYYY, where yyyy = the operating concern/
Hope this helps.

Material Ledger,Revaluation Production Cost Center ,Standard Cost

Hi, I have a problem with revaluation of production cost centers.
Firstly, production cost center expenses are settled via activity types onto the production order at the end of the period. However, CKMLCP revaluate cost centers after the settlement because of using standard price. So cost centers at the end of the period have some amount.
As a result we can not find actual price for production orders.
If I use standard cost in order to consume on cost centers, material ledger revaluates again this cost centers. I dont want this condition. Because this cost center is settled to other cost object before closing.
Thanks.
Message was edited by:
Ergul Taslacioglu

Hi
Go to the following path in SPRO:
Controlling -> Product Cost Controlling -> Actual Costing/Material Ledger -> Actual Costing -> Activate Actual Costing. Double-click on "Actiavte Actual Costing" and change the indicator from "2" to "1".

CO88 - Collective Settlement Processing for Product cost collectors

Hello Gurus,
I have couple of Settlement related problems. Please advice if you have any solution to fix these problems.
1.We are using CO88 - Collective Settlement Processing for Product cost collectors but some of the cost collectors are not settling fully. Where as the same cost collector settled individually without any problem.
2. Some cost collectors are settled but very small amounts are still there as un-settled.
Thanks in advance.
Vishwanath.

Hi
Welcome to SDN! We hope your 1st experience here is good
Issue 1: It depends on the error that you got at the time of settlement... Many times, when a PCC is being posted to from Production while you are trying to settle, it can give you error...
later on it can be settled w/o any issues
Issue 2: Ideally there does not remain any amount after settlement.. May be the amount which you are seeing pertains to the next month.. You can shift to periodic view using CtrlShiftF11 and see if any balance really exists
BR,Ajay M

Collective Product cost collector

Do we have a collective product cost collector,i.e even if I have 2 production versions,i need to see the cost in one cost collector.If so what is the T code to create ?

Hi Swain,
The are two Tcodes for Creating Product Cost Collectors.
1. KKF6N -- Process product Cost Collector
2. KKF6M - Collective entry. (Create Product costy collector by Production Version).
for your reqt you can use the Tcode : KKF6M.
regards
radhak mk

Transfer of Costs in Product Cost Collector to COPA

Dear Experts,
Please can you advise me on this current issue I'm having. Below is a description of problem:
Customer is currently using report designed in COPA (KE30) to derive P&L report for using Plant as a characteristic.
This was being done at a time when Product Costing functionality was not being used
All costs (administrative, sales and production costs) were being collected in cost centers
At end of month assessment of cost center values to COPA is executed (KEU5)
Customer is then able to derive P&L report per Plant characteristic
However with implementation of Product Costing, all Production related costs are captured in Product Cost Collectors and not Cost Center
Hence we have no way of assessing or transferring total production costs from Product Cost Collector to CO-PA
We have tried to configure FI/MM PA transfer structure (KEI1) and default account assignment (OKB9) for automatic transfer of costs on goods receipt/issue, however this is not working because the product cost collector is used as the default account assignment for the transactions
So far only material cost valuation of sales/billed materials are possible (which does not address concern)
As a result we have a gap and customer is unable to derive P&L by Plant from CO-PA.
Can you advise if there is a way out, in order to have all Production Cost transferred to CO-PA.
Thanks,
Ola.

Hi Ola
Your Cost centers would be categorized as below
1. MFG Cost Centers (In Plant)
2. Service Cost Centers (In Plant)
3. Few Cost centers (outside plant) Eg: Sales, Marketing, Sales offices etc
At period end
1. Allocate the Costs from SER CC to MFG CC using Distribution / Assessment cycle.
This will make SER CC as zero
2. Calculate actual activity price in MFG CC (KSS2 / KSII)
3. After this, do revaluation of PCC using CON2.. This will make balance in MFG CC as zero
4. Allow the Variances to be updated to COPA by ticking the "Variances to Costing based COPA" in your settlement profile
5. In short, what remains for you to allocate to COPA is the 3rd category of CC.. i.e. you should allocate those CC to COPA whose cost is not included in the cost of product using COPC module
Br. Ajay M

Actual Activity allocation and Planned and actual activity comparison issue in Product Costing

Friends,
I have tried to explain the issue i am facing currently under Product Costing......
1.Cost Component Structure
10 – Material
20 – Labour
30 – Diesel
40 – Electricity
2.KP26 – Planned under Fixed Price
Labour – 2.0 HR
Diesel – 1.0 HR
Electricity – 5.0 HR
3. When I run CK11N system collecting correct rates for all activities (Costing Lot Size- 1)
Like;
1              E              LAB10    994310                  2.00        2.00        AED        1.0          HR Labour Cost New
2              E              DIE20    994320                  5.00        5.00        AED        1.0          HR Diesel Cost New
3              E              ELE30    994330                  1.00        1.00        AED        1.0          HR Electricity Cost
4              M            1100000042                          5.00        0.00        AED        1              PC RAW MATERIAL BAKERY CONSUMED
5              G            994201                                0.00        0.00        AED                        Depriciation Cost
6              G            994202                                0.00        0.00        AED                        Sales & Distribution Cost
                                                                          13.00                    AED
4.When I do process order Cost analysis for the produced goods it shows me different figures as my
BOM – RM is 1100000042 1 Quantity
Routing – All activity time is 1 Hr
40002                    RAW MATERIAL BAKERY CONSUMED          1005/1100000042            5.00
40015                    COST OF GOODS MANUFACTURED              1005/4400000071            13.00-
994310                  Labour Cost New                                              CBAKYPDDXB/LAB10      1.33
994320                  Diesel Cost New                                              CBAKYPDDXB/DIE20      3.33
994330                  Electricity Cost                                                CBAKYPDDXB/ELE30      0.67
                                                                                                                                          2.67- AED
Note :- As per my understanding it should be
    Labour Cost New                                            2.00
                Diesel Cost New                                              5.00
                Electricity Cost                                                1.00
5.Now after Process Order confirmation
40002                    RAW MATERIAL BAKERY CONSUMED          1005/1100000042            5.00
40015                    COST OF GOODS MANUFACTURED              1005/4400000071            00.00
994310                  Labour Cost New                                              CBAKYPDDXB/LAB10      4.00
994320                  Diesel Cost New                                              CBAKYPDDXB/DIE20      5.00
994330                  Electricity Cost                                                CBAKYPDDXB/ELE30      2.00
                                                                                                                                          16.00
6.For Month end actual Activity calculation and load the activaty actual rates on product
I have configured the system in below manner
1 Work center = Mapped to 1 Production Cost center
Three Different Activities mapped to Secondary Cost Element with 43 Category
For Electrictity Activity assesment from Primary to secondary 1 more cost element created with
      Category 42 Like; 994215-Electricity Cost All
One Actual Assessment has been configured to allocate Electricity cost from Primary Cost element to
      Product/Order
7.Assessment Cycle Details
Controlling Area      1000 Controlling Area
Cycle                ZELE01                  Status    Reviewed
Start Date 01.01.2014 To 31.10.2014
Text                  Elec. Cost Allocation to PROD
IND- Interactive
Assessment CEle       994215      Electricity Cost All
Sender
Cost Center    CBAKYDXBAD
Cost Element 40204
Receiver
Cost Center    CBAKYPDDXB
Tracing Factor
Var.portion type – Actual Activity
Selaction Criteria
Activity Type - ELE30
Receivers Tracing Factor
Cost Ctr Factor per        100
CBAKYPDDXB 100
8.I have received the actuall electricity bill for 1100 AED and the same has accocated through KSU5
After Cycle run when I follow below procedure
KSS2 Actual cost splitting
CBAKYPDDXB                    Production Dxb                LAB01                    183.33
CBAKYPDDXB                    Production Dxb                DIE02                    183.33
CBAKYPDDXB                    Production Dxb                ELE03                    183.33
CBAKYPDDXB                    Production Dxb                DIE20                    183.33
CBAKYPDDXB                    Production Dxb                ELE30                    183.33
CBAKYPDDXB                    Production Dxb                LAB10                    183.35
                                                                                                                1100.00
Issue – System Split Electricity cost between all the activities assigned to Workcentres Cost Centre.
But I want to post that cost only to ELE30 Activity and not for all
When I RUN KSSI for actual Price determination system shows
OTy        Object                                  Name                  AUn                Act Qty      Total price    Price (Fixed)              PUnit
ATY        CBAKYPDDXB/DIE20        Production Dxb      HR                  5.0          366.66                  366.66                    10
ATY        CBAKYPDDXB/ELE30        Production Dxb      HR                  2.0          916.65                  916.65                    10
ATY        CBAKYPDDXB/LAB10        Production Dxb      HR                  2.0          916.75                916.75                    10
                                                                                                                                                      2200.06
2200.06 is almost double than 1100.00 which is actual electricity cost and the same is actually determined for all the activities.
After revaluation of the process order system posting below values
40002                    RAW MATERIAL BAKERY CONSUMED          1005/1100000042                            5.00        5.00
40015                    COST OF GOODS MANUFACTURED              1005/4400000071                            13.00-    13.00-
994310                  Labour Cost New                                            CBAKYPDDXB/LAB10                      1.33        183.35
994320                  Diesel Cost New                                              CBAKYPDDXB/DIE20                      3.33        183.33
994330                  Electricity Cost                                                CBAKYPDDXB/ELE30                      0.67        183.33
                                                                                                                                                          2.67-      542.01
Production Variance is posted as 542.01….
I strongly believe there is some issue in configuration for activity allocation….
Main issue is
Point No. 4 – Different Figures in Process Order Cost Analysis
Point No. 7 – Assessment cycle run
Point No. 8 – KSS2 and KSII for Actual cost Allocation and Production variance…
Friends… I have tried to explain maximum please help me to understand the concept or missing configuration/Process.
Thanks
Sagar Chinchkar

Dear Rajneesh,
I have made the changes as suggested....
It seems now my Order Cost analysis and Product cost analysis are showing the same figures.
I have also maintained cost center splitting structure for ELE30 Activity allocation.
Structure Z1
Splitting structure for AT
Assignment 10
Electricity Cost
100
Allocation for ELE
Cost Element
994215
Activity Type
ELE30
Splitting Rule
100
Allocation for ELE
12
Activity quantity
Version 0
In my case actual activity confirmed is 3.1 for 2 orders in period 5
Order 1 - QTY 2
Order 2 - QTY 1.1
Total actual Electricity exp is 1150 in period 5
followed procedure to post actual activity on product is mentioned below
KSS2 Actual cost splitting - Result as expected 1150 for ELE30
KSII Actual price determination - Result as expected 3.1 actual confirmed QTY for ELE30 with actual price
       QTY 3.1         Tot Price 3,709.68        Planned(FIX) 3,709.68     Per Units 10
       (System is doing 1150/3.1*10=3709.68)
    3.CON2 Actual revaluation of orders
      Here while reevaluating the Process Orders system calculation is different
Order 1 - QTY 2 -   558.00
Order 2 - QTY 1.1 - 407.56
Total -                    965.57
     4. After CON2 system is changing the value of other activities like
     LAB10 - Actual confirmed Value 10 to 0
     DIE20 - Actual confirmed Value 10 to 0
Which should not be the case....
                                                                                                              PL     Act     Var
40002
RAW MATERIAL BAKERY CONSUMED
1005/1100000042
10.00
15.00
50.00
40015
COST OF GOODS MANUFACTURED
1005/4400000074
26.00-
26.00-
994201
Depriciation Cost
WMBDDEP01
1.00
0.00
100.00-
994202
Sales & Distribution Cost
WMBDS&A01
1.00
0.00
100.00-
994310
Labour Cost New
CBAKYPDDXB/LAB10
4.00
0.00
100.00-
994320
Diesel Cost New
CBAKYPDDXB/DIE20
10.00
0.00
100.00-
994330
Electricity Cost
CBAKYPDDXB/ELE30
2.00
408.06
20,303.00
If we want to just post Electricity cost based on actual Electricity expenses and Labor and Diesel are based on planned activity rates.
What setting is required in current system.....
Million thanks in advance....
Regards
Sagar Chinchkar

Product costing Cycle run for first time to complete backlog

Dear sir,
In my Company we went live in April 2011 and since then we never did settlement of Product costing as process was not stream line , but now (in Aug-2011) it is stream-line and we wanted to do Proper costing Cycle run & settlement too.
Can you please let me know that how to proceed further, what precautions must be taken and whether we have to do settlement for April till July or directly we can go for settlement of last month July-2011.
Please let me know detailed steps,
Thanks & Regards,
Ashutosh

Hi,
Settlement will be done on period basis in you're case June month is closed and now open periods are July and august.
so the production orders can be settled collectively in CO88 for July month.
and for costing run i.e standard cost estimate you need correct BOM and Routing.
after doing settlement of production orders do costing run.
it's not mandatory that settlement should be done. even you can run the costing with out settlement.
costing run will consider the raw material prices ,activity prices sub-contracting price etc..
after considering the above prices after releasing the costing run it will update the actual price in the material master of the header material.
for indual material=CK11N and CK24
Collectively=CK40N
For the materials with Price indicator V(header materials) settlement is important here no cost estimate.
settlement of production order will leads to change the price in the material master. so here no Standard cost estimate..only settlement.
revert me if any issue
Regards,
Ravi

Allocating Standard and Variances of Production Costs into CO-PA

Hi Experts,
I would like to ask you about the process of allocating eg. humal labour into CO-PA.
Lets have an example:
We have planned to spend 10 hours on some action. But actually we have spent 20 hours.
When we allocate our time from some PC, we have to allocate actuals, that means 20 hours, which will come into CO-PA online.
At the end of the period we run Production Order Settlement and find the variance.
What will now happen do distinquish between the planned costs and variances?
Thanks in advance for your answers!
Kindly Regards,
Radek

Hi,
I am not really sure about your question
We have planned to spend 10 hours on some action. But actually we have spent 20 hours.
When we allocate our time from some PC, we have to allocate actuals, that means 20 hours, which will come into CO-PA online.
At the end of the period we run Production Order Settlement and find the variance
The 20 hours will only flow to Production order and not to COPA online.
Whatever the difference between the planned actual vlaues in the cost centers, they will come a cost center variance report. It does not effect any where else.
But if there are any balances left out (difference between the total cost collect to the cost centers and the cost obsorbed to production orders etc), this values need to be assessed to COPA using COPA Assessment cycles
I hope i touched your question.
Please do let me know if your question is different. If it is different, please rephrase your question
best regards
Surya

Product Costing and Labour Hours

Dear All
We have a basic process for product costing which follows the flow below:
0. Creation of material master which is costed (transaction MM01). If material master already exists for this material, this step is skipped;
1. Creation and release of CO production order to collect the costs of material production (KKF1);
2. Posting of actual costs to the CO production order created (goods issues, labour and services costs);
3. When production is completed, Overhead costs has to be calculated for this production order (KGI2);
4. Produced material delivery to stock has to be carried out (MB31);
5. CO production order has to be settled (KO88) and closed (KKF2).
We would like to start posting labour where the hours will be posted to a secondary cost element and included in the cost of the product. Can you please provide information on the steps to configure this.
Many thanks
PRG

Never mind

Costing Report summarized production cost by Finished Goods Material

Dear Expert,
I am looking for a report that can summarized the production cost in production order by Finished Goods Material Number.
or a report that can show me the cost components incurred related to a Finished Goods Material.
Can any expert enlighten me? please help.
Thanks a lot.

Hi
I would recommend the product drilldown reports in KKO0...
For this you will have to do settings in OKN0 (Asisgn a Cost Comp Structure and specify the Product Group)
After this, execute KKRV to collect the summarized data and then you can use KKO0 reports
It gives cost of production as per the Cost Comp Str and also the product no, product group, Prod Order etc
Regards
Ajay M

Flow of product costing

Hi All,
Iam new to controlling area. I want to know the entire process flow of product costing and what are journal entries reflect in this flow.
Thanks,
chandu

Hi,
The requirement of batch wise capturing of costs can be achieved by creating a separate production order for each batch of production. The production order captures all the cost, which are incurred during the production process. The details of each cost are as below.
1.For every batch of production a production order is raised in the production department. The production order contains the details of BOM and recipe.
2.The Bill of Material (BOM) details the raw material and packing material in the required portions that are required for production.
3.The recipe contains the detail process of production activity including resource such as manufacturing machineries, equipment. Each operation is assigned to its resource and each resource assigned to relevant activities such as Labour, fuel, power etc. (maximum of six parameters for each resource). Each resource is attached to a cost centre.
4. The recipe and BOM are copied to production order automatically when the order is created. The quantities of materials and activities are determined at standard levels (Planned costs).
5. A production order may contain several phases and each phase requires individual confirmation.
6.Once a phase in production process is complete the production person gives his approval by the way of confirmation.
7. At the time of giving confirmation he inputs the actual quantities incurred for material and activities. Using these inputs the Actual Cost can be arrived.
8. From controlling module, the planned rates of activities are uploaded on periodical basis. monthly or annually. The cost of material is taken at Moving Average price.
Once the batch production is complete the production person gives his final approval to the order as u201CTechnically completed (TECO)u201D.
9. At the month end / period end all these process orders are settled at the costing department.
10. The settlement results in calculating the overheads on predetermined rate and transferring the total cost of the production on to the finished product. The following entry is generated
Finished goods stock Account Dr
To factory output Account Cr.
11.The work-in-process is calculated based on the status assigned to production order. If the order has a status of u201Cu201CTechnically completed (TECO)u201D. the work-in-process is not calculated, but the order will be totally settled.
12.The standard cost of finished product is released at the beginning of every month. The standard cost is calculated based on the Bill of Material and recipe defined independently for each finished and semi finished product.
13.The variance is calculated on the difference of standard cost of material and the actual cost incurred in the production.
14. When the actual cost of power, fuel, Labour are accounted against respective cost centres in the month end, the system automatically determines the under absorption or over absorption of production costs. This difference cost will be apportioned to all the batches on a predetermined basis.
Revaluation of Production orders
Initially cost planned in cost centre accounting against activity types are used for valuating the materials that are produced. At the month end when actual cost are booked from financial accounting, revised activity price calculation is carried in cost centre accounting and with this prices the production orders are revalued. The revaluation is carried to the extent of difference between planned vs. actual activity prices. The revaluation production orders will not be carried, as production orders will be settled Immediately.
The actual cost of every batch is determined using above process. A report is generated to know the cost for each batch.
The standard cost fixed with each customer for each product is maintained in a separate database. The Costing department should compare these details with the actual cost of production and identify the difference. Accordingly a Debit/Credit note can be generated.
Once a standard cost estimate is created, it updates the material master with that rate.
Cost Object Controlling is an area in cost accounting that assigns the costs incurred in the production of company activities (such as internally manufactured materials) to those activities. Cost Object Controlling supports you in:
Reaching make-or-buy decisions
Determining price floors
Performing complex cost analysis (such as target/actual analysis)
Determining inventory values
Cost component Structure:
A control of how the results of activity price calculation or material costing are stored.
In Product Cost Controlling (CO-PC), the cost component structure determines the attributes for passing on the following costs:
Material costs passed on to material valuation as the standard price or inventory price
Product cost components are
Material
Accessories
Power
Fuel
Sal & wages
Depreciation
R&M/ Stores
Others
Admin OH
Standard Cost Estimates (Applicable for trading activity)
At the start of the fiscal year standard cost estimates will be released based on the planned raw material prices and planned manufacturing overheads. These standard prices are updated in the respective material master. These cost estimates are run only for make-to-stock materials.
The various components of cost are incurred in producing a product is captured. The following cost components are considered for materials cost, consumables and fuel, direct
Labour cost, utilities. Repairs and maintenance gases, depreciation, administrative overheads. A costing sheet will be created to capture administrative overheads cost which are not absorbed in the products as activity cost but are to be considered for inventory valuation In the first step planned activity outputs for each cost centre are planned, then planned cost that will be incurred against each activity type and primary cost element are planned, by carrying out activity price calculation the planned price of each activity is arrived. These activity types are entered in the work centers and routings. When cost estimates are created, system captures material cost from the prices mentioned in material master. The manufactured overheads are updated from the activity cost planned in cost center accounting.
Sadashivan

Use of Product cost collector in REM

Hi All,
I am new to PP module, I got some doubts when working on costing of the product.
1. In REM scenario why do we need an extra step of creating product cost collector ??
2. when a product is produced will the prod cost collector is used for both debiting(raw and semi) and crediting(finished prod) ?

Dear Reddy,
1.Product cost collector is the cost collecting object for a period based production or in a REM - repetitive manufacturing
scenario.
2.Without having any product cost collector you cannot carryout production confirmation(assembly backflush) for a product.
3.So for all the products for which production confirmation will be declared requires a individual product cost collector.
4.Prior to this you require a production version for the material.
5.Production version and a product cost collector is also the master data for a REM scenario.
Now check and revert back.
Regards
Mangalraj.S

Logistics cost to be added in product cost

Dear friends,
We are operating logistocs vehicles on every day morning to collect materials from another plant and also get materials from suppliers..
If the freight rate to be provided to logistcs is a constant value, we can give the rate in PO conditions inorder to add the freight cost in product cost.
Rate to be provided to logistics vehicle will be varied based on the weight and space occupation of a material and the type of vehicle used (like LCV, HCV...)
1. Incase of STO (Material from another plant) how to include the frieght rate in receiving plant product cost. Because the ratre is not a constant one it will be varied based on the above situations.
2. Incase of regular purchase order how to handle the same situation of adding freight cost in to product cost.
Thanx in advance.
Warm regards,
M.Selvaganesh,

Hi,
Check in the Below path
SPRO >> MM >> Logistics Invoice Verification >> Incoming Invoice >> Configure How Unplanned Delivery Costs Are Posted
Here check is there any GL code is maintained against your company code.
If its maintained then remove & post the invoice, then it will hit to your inventory acc
Regds,
CB

Product cost Collection - Revaluation

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