Product Costing: Actual Cost by Component

Question

Hi SAP Gurus,
Products are manufactured in plant X, and have all the standard cost components (MP, DL, FOH, etc.) that one would expect of internally-manufactured skus. Traditionally, these products were shipped from Plant X to Plant Y and then to Plant Z. Once sold out of Plant Z, the actual Cost of Goods Sold (COGS) in the system likewise includes costs for MP, DL, FOH, etc.
However, last year we started also selling product directly from Plant Y. On Looking in ZCO_ACTUAL_COST(Actual Cost by Component), we see that, when sold, a given SKU is treated as a purchased finished good. That is, all of the standard costs & variances associated with the sku are aggregated into Purchased Finished Goods, a materials account. Because SAPu2019s actual cost has zero for all other line items (i.e. DL + FOH), the system generates favorable variances that eliminate these standard costs.
Please note that the issue is not standards (which appear to be fine) but actual cost allocation upon sale of the product.
Summary : The issue is that product sold out of Plant Y is incorrectly treated as a purchased finished good, instead of as an internally manufactured item.This is an issue because our materials costs are then overstated and other costs are understated
How to show the product sold from Plant Y as internally manufactured Item. (with Cost Components M+P, DL.FOH etc) like how it was showing for product sold from Plant Z?
Regards
Jaswanth

Answer 1

Hi Ajay,
In the material master for the material, I verified that the Price control is set as S( Std price) for both the Plant Y and Plant Z.
And the issue here is with the Actual Cost component and not the Std cost component. Can you please clarify where in MRP view for Plant Ywe need to set the indicator as transferred from Plant X.
Also I verified that the valuation class for Plant Y and Plant Z is different, ( For Plant Y it is set as Mfg Fin goods and for Plant Z it is set as Purchased Fin goods). Is the Actual cost component split has any relation with this Val class setup.
This is how the Actual Cost component looks
Mat No   Plant   Raw Mat  Packaging Mats  Pur Fin Goods  Direct Labour  FOH
   A          Z         XX              XX                     XX                         XX            XX
   A          Y           0                 0                     XX                          0                0
All the cost for Plant Y is rolled to Pur fin goods.
Kindly give your inputs
Regards
Jaswanth Kumar