Product cost - stage wise.

Dear All,
In which table I can get product cost operation wise?
For ex:If I pass my production order No. with Operation,I need to know the cost of material(Raw) and operation cost.
Regards,
Manis,UK.
Message was edited by:
Mani Gandan

Hi Manis,
I think your are looking table for manufacturing cost for operation wise. i donot think ,u can get in sigle table.
Anyway check with table S027,and come back
regards
pradeep

Similar Messages

Product costing by sales order configuration steps

hi
plz send me product costing by sales order configuration steps.
sir, i know manufacturing order configuration step but i do not sales order configuration.
in the sales order also is same as manufacturing order like first we have to make planning cost , the planning cost should be updated to material master and next configure the actual cost.
for first step- costing variant -okkn
next -costing variant -opl1
for sales order also same we need to update planning price first- what is costing variant
for actual cost - what is costing variant
plz tell me detail
regards,
sowmya
Moderator: Please, read forum rules before posting

Hi Sashikanth,
Please send me the Configuration document for make to sales order.We are at Blue print stage need some docment for make to sales order.Plese send me the document it will will be very help full for me.
My id is [email protected]
Thanks in advance
Regards,
Nagaraju
Edited by: nagaraju sami on Mar 9, 2008 11:58 AM

Need Product Costing Interview Questions and Answers

Hi SAP Gurus,
I am looking for the product costing interview questions and answers or just questions which covers all the steps like
1. Product Cost planning, Cost Object controlling, WIP and settling in all the Scenarios (Make to Stock, Make to Order, Repetitive Manufacturing)
2. period end processing Scenario wise
3. Entries made by each step in each scenario.
I have already gone through help.sap.com--> Product Costing and some other forum links but I need with questions and answers which can make me to recall the process and understand the whole process scenario wise completely. Please share with me if you have any documentation.
Thanks.
Harter
Edited by: Harter21 on Jun 25, 2010 6:39 AM

Could some one help me?
Thanks,
-Harter

Product Costing - Process Order Confirmation

Dear Experts,
We are facing a situation with our Product Costing Scenario :
Under SFG Process Order Confirmation, there are Ten Phases to finally confirm the order. First Phase is for Raw Material Issuance. From Second Phase to Ninth Phase are relevant to Activity Types. Tenth Phase which is final phase, in this point Goods Receipt posting is generated.
At first phase, system posts Raw Materials Goods Issue (Movt Type 261) to Process Order:
Entry : RM (Cr), Consumption (Dr).
Client needs the system to post one more entry at the same time by : WIP (Dr), Inv Change (Cr).
Reason:
According to client, they have made consumption entry in finance but what if all raw materials are not consumed as yet and factory comes under fire, then how can they claim insurance on those Raw Materials which are not consumed and are still in the IN PROCESSING Stage?
My Answer was:
- They can find all material costs in Process Order as Debit Item.
- They can also calculate WIP but cannot post WIP in Finance unless the order is settled.
Ultimately, as per my knowledge client cannot check the unprocessed Raw Materials report in FI but they can check in CO. And this is the point of reservation from client.
They need an entry in Finance for WIP to claim insurance in case of fire and therefore they need a posting of WIP entry immediately after Goods Issue of Raw Materials to Order.
Can anyone please guide me further regarding this scenario and if any one can suggest any work around then it would be highly appreciated!
Regards,
Zain Bashir

Hi Zain
This is a very unusual question
Buddy, there is something in accounting called as "Going Concern Concept" which we all were taught in our accounting days.. That means when you do business, do it with a mindset that you are goinig to do it for long / for ever.. Accidents dont happen every day and you cant build a system around such things
Assume there is a fire (God forbid).. After the accident, you wont even know how much was lying there unconsumed which got gutted in the fire..
And insurances not just covers the stock lying consumed, but also stock manufactured and stock in the process of manufacturing (WIP)
And most importantly, dont expect SAP to throw up a figure at the click of a button.. Does your client really think that they will simply submit the report generated from SAP as-is to Insurance people?? SAP is just a technology enablement, which requires human intervention at various places
My opinion - Dont build system for such requirements
Br. 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

Cost centre wise budgeting

Hi All,
Can any one explain how to do budgeting cost centre group wise?
Thanks in advance,
Manisha

I have a question.
The purpose of the cost centre is to control the cost at different levels. If the budgeting is not done at the cost centre level but at the cost centre node than is it better to make the node as the cost centre instead of the multiple cost centre below it.
E.g in the present scenerio the budgeting is done at cost centre node level. There are 7 cost centre below this node. Now one of the cost centre is taken as the representative and the major expenses as Power and Direct labor are put in this. Other petty expenses are directly put in the respective cost centre.
Is this a good pactice. Also at present they are not having full CO implementation. They do not have the assessment and distribution cycles.
Please suggest that if there is large no of Cost centre than what will be the impact when complete cost centre accounting, Product costing, PA and PCA will be implemented in ECC 6.0.
Thanks for he reply.

Product costing Scenario

Dear Experts,
I have a basic understanding that to calculate Material cost estimate data from MM and PP is required.From MM we will get material component data thu BOM and from PP we will get data for activity performed during production thru routing.
Now data from BOM is available but activities are not defined in the system. One plant is equal to 1 work center and all overheads are booked at company code level thru jv irrespective of the nature i.e direct or indirect overheads.No overhead cost is booked against process order currently.
I have to implement Product costing and below are the difficulties I`m facing:
1. Which overheads are normally booked against:
process orders
at company code level against production/service cost centers.
2. The production process of FG`s is muti stage but only 1 work center is created for 1 plant. In 1 process cycle at different stages different fg`s are produced. Is the approach of work center is correct or i have to change it.
3. I need to define cost center, what is the basic funda to consider what should be the cost center.
4. To create cost component structure what should be the things to consider.
Looking forward for quick suggestions.....
Regards
Nitisha

Hi Nitisha,
1. Which overheads are normally booked against:
You have to book direct and indirect over heads through costing sheet. First you have to check with client how they want to charge over heads, based on information provided you have to define cost sheet and attached this in the variant.
2. The production process of FG`s is muti stage but only 1 work center is created for 1 plant. In 1 process cycle at different stages different fg`s are produced. Is the approach of work center is correct or i have to change it.
If the process are multiple stages, then you have to create multiple work centres.
3. I need to define cost center, what is the basic funda to consider what should be the cost center
You can define cost centre based on functional side or physical location or allocation criteria. You can find lot of information about it in SCN. So search it.
4. To create cost component structure what should be the things to consider.
First of all how your costing information should display. Based on this you have to create cost component structure. Basically it breaks up the costs i.e. material costs, process costs and overheads. In this you can further sub divide.
Regards,
Mukthar

Product cost by sales order - conceptual clarity required

Hi,
We are a manufacturing company with both Make to Stock and Make to Order Scenarios. In cost object controlling, we have made the settings for product cost by order. Now, the question is whether product cost by sales order is a mandatory setting in MTO scenario. I understand this is a conceptual question but i never got the clarity after reading help files, threads and blogs.
I'll put down my understanding - pls correct me.
If i do the product cost by sales order, there will be a statistical cost object ie sales order. Now every cost incurred (with a component split) will be recorded stastically in the sales order in case of production orders created from S.O.s
If I don't do the setting i cannot get a component wise split for the cost of sales order to do any analyses. but still I'll have the COGS which i'll capture to COPA and take the profitability.
Can you please give me some more clarity on this scenario? Are there any other factors/ advantages/mandates in product cost by sales order?
Best Regards
Vimal

Hi Vimal
Prod Cost by SO is done in the case of MTO.. Here, you have 3 possible scenarios
A. Only Qty i.e. GR from Prod order is tagged to Sales Order.. Sales order is not a CO Object....
This scenario is as good as MTS... Only that GR is tagged to SO....
Your costs are collected on Prod order....
PGI uses GBB-VAX i.e. does not post to sales order... Billing updates revenue and COGS to costing based COPA
B. SO is cost obj with non valuated stock (SAP recommends this)
C. SO is cost obj with valuated stock...
B -
Prod Order is settled upon sales order.. GR from prod order does not update any acc doc
Sales order is settled to COPA.. Here you can use a PA Trf Str where in you have replicated your Cost Comp Str... i.e. You can create as many assignment lines in KEI1 as your CCS in OKTZ and assign each one of them to a separtae value field
No question of variances in this case
C
Prod order is not settled upon sales order.... GR from Prod order updates acc doc.... However, variance from prod order can be settled to the sales order if you create variance account as a cost element... Else, it is settled to COPA
Upon PGI, the COGS is posted to Sales Order as a single line item
Here, in your PA Trf Str, you would create an Assignment line and tick "Qty Billed/Delivered".... This would update the Billing Qty to COPA upon settlement of Sales order
This Qty update will trigger KE4R.... i.e. You need to assign CCS to VF in KE4R for PV=01 and Rec Type = C.... This would update the CCS in COPA as per the Sales Order cost estimate
The Costing Key in KE40 should refer to "Sales order cost estimate" and not "Std Cost estimate"
br, Ajay M

Debtor Interest on product costing

Dear All,
Is there any provision for charging customer wise debtor interest on product costing. As per my knowledge we can put on material overheads or Cost Sheet. Please suggest some solution for the same.
Regards,
Pras

hi
You can use the template allocation for this type of expenses if you want to calculate that on run time and allocate the same.
This may help
Regards
Shantanu

Unplanned production cost

Hi friends,
We have an issue related to implementation in textile industry.
There is a type of cost which is 'drawing / knoting' ...it is actually a preprocessing exp....but for a particular type of textile.....there can be multiple production orders using this preparatory process.. This cost is for a specific number of looms.......
In actual practice if in case of urgency they may use more looms and 'drawing' cost will be more...
So the problem is we cannot plan it correctly ...and also it is a one time initial cost of production...
Clint wants to charge this cost to the production orders on a later stage.....based on the actual scenario...
How can we do this???
Even if we charge tis to production orders by some method.....it will end up in production variance...which is not correct??!!!...
Can we keep it seperately and charge to COPA against the gross margin????/ but in that case it will not reflect in actual cost!!!
Please suggest a good solution for this issue...
thanks in advance...
Ramesan

Hi Ajay, Thanks for your reply
Let me elabourate it more....
Industry- Textile:-
There are some pre production activities which cant be added in routing. Such as Drawing, Knoting,
which is not specific to a production order. It is for a serios of Production Orders.
Let say Drawing happened for a particular material x. the same will be used for different production orders until unless the material change. The same is true for Knoting also. These expenses cant be included in routing because this operation is not required for every production order.it is a onetime expenses and must for a series of production orders of same type of material.
How to bring this into both standard and actual expenses avoiding variance.
Alternative-1
collecting these costs to a cost center and bring to copa through assessment.
Advantage- The cost is distributed over the gross profit of the material
Disadvantage- It is not considered as production cost and not included in stock.
Alternative-2
Include in Activity
Advantage- included in production and stock and no variance.
Disadvantage- This expenses booked in one production order where as othere production orders with out this cost. I.e 1st PO overloaded and other PO are not charged.
Please, suggest if any better way is there.

Issue Relating to Power Cost in Daily Product Costing

Hi,
We are doing daily product costing. Here we want to allocate the power units of service to production cost centers proportionately on daily basis. Can anyone tell me is there any option in SAP and we need to go for development.

hi,
Power usage or cost can be apportioned only monthly wise not possible on daily basis. U can run the distribution or assessment cycle only for month wise, but not on daily basis.
Regards,
Sreekanth

Finished product profit plant wise

Dear Friend ,
Presently one of our client has three plants and they are taking all finished product to one account . They will sell to directly from there . Now they want to maintain sales profit / sales revenue of each plant wise and product wise . Is is possible maintain through cost centre . They don't want to maintain WM module in this case . They want to know finished product profit plant wise .
RB

Hi
You need to use Profit Cneter accounting for this , you can miantin the Profit center plant wiase by maintaining the same in Sales/ Plant Data.
Thanks & Regards
Kishore

Product Costing Plant rollout configuration steps

Dear All,
Could you provide the Product Costing Plant rollout configuration step by step.
What are the necessary information do I need to collect from the Business (Client)
Thanks In Advance.
Edited by: lakshmipathy nara on Jun 16, 2010 10:39 AM
Moderator: Please, read the rules of the forum

HI lakshimi,
if you implement separate plant you need to do below steps
1) create activity type
2) create particular cost center
3)maintain activity type price planing in kp26
below mentioned are plant wise
4) create bom
5) create work center
6)create routing
7) create materiel
Thank you!
Regards,
Prama.

Packing cost in production cost

Hi Gurus,
My client is producing metal coated coil and from coil the produce roofing sheets. Products produce in every intermediate stage are saleable. They want to include the packing in production cost but they do packing only if that product go for sales otherwise same product they send for the next process without packing. They want packing cost in the production cost if the product goes for sale otherwise(if it is go for next process) production cost exclude packing cost. Can you please tell me how it can be done? How BOM and routing can be used in production order?
Regards
Rajib pathak

Hello .
First solution is,
Create separate material code for Packed material and Unpacked material . Here you can define the BOM & Routing for each material.
Second solution is , if you donot want to create seriate material code ,
Create two production version for intermediate material. Define BOM & Routing with packing for 1st PV and Define BOM & routing with out packing for 2nd PV.
Now create production order and select the PV manually based on your requirement. Now packing cost will be added to production order for first PV.
For that you need to do following setting .
1.BOm selection by production version at MRP view
2. Production version selection = manual at for order type at OPL8.
Note:But if run the MRP, may be this will not work.
Please try and come back
Regards
Pradeep Kumar

Old material overwritten by new material code in Product cost collector

Hi SAP Gurus,
How can I work around if a product cost collector with material XXX has been overwritten by a new material YYY when creating the KKF6N.
Both material code having the same plant, same orde type,same production version but just different material code.
When saving the preliminary costing for the product cost collector for material YYY, the system prompted me the order number 700022 which is already existing and created for material XXX.
By right, this shd not be happened but indeed it did.
Now when displaying the report S_ALR_87013127 - Order Selection, the report showed the new material YYY was created with order number 700022 but the content of the data was for old material XXX.
Now my problem is how can I get back the product cost collector for material XXX as the original order number 700022 was meant for material XXX and not mat YYY.
And also when executing backflush (MFBF) for old material XXX, the error msg prompted as 'content of order 700022: Mat YYY transferred to interface (IMSEG):Mat XXX due to this I can't backflush material XXX.
Really appreciate your expertise on this urgently.
many thanks!

problem due to system bug, have to log to OSS for help.

Product cost - stage wise.

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