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

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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

How the Trading Goods mapped in to Product costing and COPA in Controlling

Dear Experts,
I have a trading goods scenario in my client. How the mapping into Product Costing and COPA.
They just purchase FG products from Vendors and Sell to their Customers, they received FG Products to Main Plant from Vendors and then sends to Branches from Main Plant, In between some expenses accured like Transport, Fright etc. this is my scenario.
How the settings to be made in Product costing and COPA.
I am waiting for your favorable reply.
Thanks,
KBR.

Hi Bhaskar
I believe branches are also created as Plants
You have 2 choices....
Choice 1: If the Freight amount is known @ the time of Transfer from Main plant to Branches, include the same in STO so that inventory value in Branch = Purchase Value + Freight amount
CHoice 2: If thats not possible, then inventory value in Branch will be same as the Main plant... The expenses incurred on freight needs to be posted to a cost center... Then allocate them @ month end based on revenue / Quantity sold etc using KEU5
Whichever choice you make, Product Costing is not relevant and required as well... You dont need to do any CK11N
If you want to see in COPA Purchase value separate and the Freight, etc separate - Then choice 2 is the route for you
br, Ajay M

Tickets of Product costing and COPA

Hi
Can any body working product costing or CO_PA
Could you please send the ticekts and analysis to me i want to become CO cosultant in these two sub modules
Regards

Please be specific,
I am also a new bee with little experience.
if i know more about requirement what you want to get , I will try .
Parthu

Product costing and cost center

Hi,
My client is a trading organisation. In order to do product costing, at which point in sourcing we need to enter the cost center.
M.K

Hi MK,
In a trading organization, usually you do not need product costing as you are not manufacturing the product in-house.
You can value your Inventory at MAP and when you do MIGO, the MAP will get adjusted itself with different p.O.rates that you purchase.
And, even if you go for Product costing, you won't need Cost Center at any point of time for sourcing.
Regards,
Kavita

Material product cost and transport cost

Hi, all
my scenario,
Company Z Order 100 carton from Supplier A at $15/carton.
Company Z will born the transport cost ie per trip $500.
assumption one trip = 100 carton ($5 / carton / transport)
how can i treat the transport cost in SAP as actual cost per carton = $20 / carton.
please advice
many thanks

Hi
Product Costing is arriving at the Cost of Producing a particular material. For example
Raw Material 1 +
Raw Material 2 +
Overheads
Cost of Labour deployed +
Cost of Other over head like Electricity exp.
Overhead Cost
Overhead Cost like/expenses which are incurred in process of maufacturing or rendering services are Overheads. We can term labour & electricity in process of manufacturing as overheads. Overheads are normally flow into CO thru COst Objects (Cost Center, Internal Orders, Profitability segments)
Thanks
Colin Thomas

Co product and By product product costing and settlement

Dear Friends,
Here is my question
In Disrete manufacturing Product costing
when we design product costing Business blue print
Instead of using co-product we wrongly map to co-product what will be the impact in costing point of view
can any one explain demerits in costing point of view
Product costing is based on Quanity structure
if my question is not clear, please do not hesitate to ask for more information
Thanks & Regards
Raj

Hi,
Please consider the following:
1. By-Product Scenario:
You need to maintain a costing BOM, to determine the standard price of the by-product. In the BOM of main product, you can use this by-product as a credit, the system will calculate the target cost based on the std cost from coting BOM.
If you dont maintain the byproduct in BOM of main product, and while confirming you are entering by-product, then the system will calculate production variance.
2. Co-Product Scenario:
You need to maintain Co-product tick in either MRP2 or Costing View and maintain the coproduct combination in the Joint Production. This is to be maintained for all the co-products. Once you are entering a production order, the system automatically uses this combination and brings in multiple lines in the production order for all the relevant materials (co-products).
When cost estimate is done, the system divides the cost for materials, activity costs, etc based on the weightage maintained in equivalent numbers.
Trust this helps.
Please assign pts, if useful.

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.

Difference between product costing and cost collector

Hello experts:
Can anybody tell me wich is the difference between the product costing calculation and the preliminary cost estimate for cost collector?
Thanks
Laura

Hi,
Product cost collector is a cost object which collects actual cost which are incurred in the production of materials periodically. This is normally used in product product cost by period. Whereas, product cost calculation is wider scope.
Best Regards,
Madhu

Costing include inhose production cost and subcontractign cost

Dear Friends,
my requirement is my material is producing house and giving subcontracting so cost should include in house cost and subcontracting cost also , is it possible? please tell me how to do , what is parameter is required.
Regards,
Nagesh

Dear friends,
in material master in mrp2 we have maintained procurement "X", here if we maintain -special procument -30, it will take only sub contracting cost, it is removed, it will take inhouse cost, i removed 30, while using PP02 in routing it showing error that is maintain purchase info record but we have maintain sub contracting purchase info recored - why it is not taking in routing
we want to calculate internal and external cost in cost estimate.
reg
nagesh

Product costing and probitability analysis

Hello,
This is my issue
When a process order is settled, the following entries are passing by the system
510000 (consumption account)                = 1622.42 (debit)
520100 (production order settlement standard)     = 10067.58 (credit)
520110   Production order settlement variance      = 8214.7 (debit)
530000 Gain/Loss price variance           = 8214.7 (credit)
Balance sheet Account Change
131000 Raw material          1622.42 (decreased)
134000 Inventory FG          10067.40 (increased)
Is this correct.   As a result of the above entries... in P & L consumption account is showing a debit of 1622.42 and production order settlement standard account showing credit of 100067.58.
If it is correct... my problem is how to map these accounts in COPA .....
If the above is not correct and am i missing anything....
Thanks
Radha

hello
Yes, we have transactions in SD.... whenever we are doing billing COGS is updating in COPA .....
and operating and non-operating expenes are mapped in COPA
What should i do to reconcile COPA and FI ... the only difference between these two is only becasue of that consumption account and production order settlement standard account... these amounts are hitting whenever we do settlement of process order
.these are the steps we are doing for settlment of process order
1) A process is raised (COR1)
2) Goods are confirming (CORK) or Goods Movement in MIGO (issue)
3) Goods receipt (MIGO)
4) Variance Calculation (KKS2)
5) Settlement of order (KO88)
Not calculating anywhere WIP, and not doing techo complete in process order also.
Before the step 3 . I checked WIP (KKAX) it is showing zero after the step 3 also it is showing zero.
I think if finished goods are not sent to the stores. WIP balance should equal to the order confirmation amount Am I Correct??
Whenever we are settling the order some amount is going to consumption (debit in p & L) and some amount is going to production order settlement standard account (credit to P & L) .
I think these accounts should nullify by settlement order but showing difference.... because of this not able to reconcile fi and copa
Thanks
Radha

Product costing and COPA Step by step guiide

hi,
i need a COPC and COPA step by step guide with screen shots. someone please send help me on this. you can mail it to [email protected]

Hi Gulam
Couls u plz send me copa configuration document at following e-mail id:-
[email protected]

Revenue, Labor Cost and Hours

Hi All,
Does anyone know which extractor(s) will give me the info about Revenue, Labor Cost and Labour Hours. These numbers are posted thru PS and eventually landed in CO tables.
Does anyone know about these?
Thanks in advance.
Alex.

resolved.

Production Order and Internal Order for each item of the sales order

Hi
   I am developing Make To Order Report where I have to display the MTO Line Items and non MTO Line Items. For non MTO Line Items I have to display Internal order with Planned and Actual Costs and also Production Order with Planned and Actual Costs. Could anybody tell how to get the Internal order no and production order with Planned and Actual costs for each line item for a sales order.
Thanks
Naga

Hi,
You can get the Production orders, Planned orders, Internal orders generated for Sales order item from AFPO table (use fields KDAUF-Sales order number & KDPOS-Sales order item). Then to identify the order type use order category (AUTYP) from table AUFK.
Once you have the Production/internal order, you can ge the cost from COSS and COSP table. Use the object number from AUFK to get the cost entries from COSS & COSP.
You can use the following sample code as reference.
Hope this is helps.. (Don't forget to mark it... )
Form GET_COSTS                                                       *
Get the material cost, labour hours and the labour cost for the      *
sales order material.                                                *
There are no interface parameters to be passed to this subroutine.   *
FORM GET_COSTS.
DATA V_OBJNR LIKE AUFK-OBJNR.
DATA v_menge LIKE vbap-kwmeng.
SELECT SINGLE OBJNR
    INTO V_OBJNR
    FROM AUFK
   WHERE AUFNR EQ AFPO-AUFNR.
SELECT * FROM COSS
   WHERE OBJNR EQ V_OBJNR
     AND WRTTP IN ('01', '04'). " p_wrttp. "Labour Cost ( Plan, Actual)
    PERFORM GET_VALUES_FROM_COSS.
ENDSELECT.
SELECT * FROM COSP
   WHERE OBJNR EQ V_OBJNR
     AND WRTTP IN ('01', '04')         " p_wrttp
     AND KSTAR NE '0000510033'. " EQ p_kstar2.      "Material Cost
    PERFORM GET_VALUE_FROM_COSP.
ENDSELECT.
Get the unit cost of the production order by dividing the production
cost by the order quantity. The result will be multiplied by the
GL posting qunatity (Delivery quantity) to get the production cost
for the quantity being deluivered.
IF NOT AFPO-PSMNG IS INITIAL.
    OUT_REC-LABOUR_HOURS_ACT = OUT_REC-LABOUR_HOURS_ACT / AFPO-PSMNG.
    OUT_REC-ADDNL_LABOUR_HOURS_ACT =
                      OUT_REC-ADDNL_LABOUR_HOURS_ACT / AFPO-PSMNG.
    OUT_REC-LABOUR_HOURS_PLN = OUT_REC-LABOUR_HOURS_PLN / AFPO-PSMNG.
    OUT_REC-ADDNL_LABOUR_HOURS_PLN =
                     OUT_REC-ADDNL_LABOUR_HOURS_PLN / AFPO-PSMNG.
    OUT_REC-LABOUR_COST_ACT = OUT_REC-LABOUR_COST_ACT / AFPO-PSMNG.
    OUT_REC-ADDNL_LABOUR_COST_ACT =
                     OUT_REC-ADDNL_LABOUR_COST_ACT / AFPO-PSMNG.
    OUT_REC-LABOUR_COST_PLN = OUT_REC-LABOUR_COST_PLN / AFPO-PSMNG.
    OUT_REC-ADDNL_LABOUR_COST_PLN =
                     OUT_REC-ADDNL_LABOUR_COST_PLN / AFPO-PSMNG.
    OUT_REC-MATERIAL_COST_ACT = OUT_REC-MATERIAL_COST_ACT / AFPO-PSMNG.
    OUT_REC-ADDNL_MATERIAL_COST_ACT =
                     OUT_REC-ADDNL_MATERIAL_COST_ACT / AFPO-PSMNG.
    OUT_REC-MATERIAL_COST_PLN = OUT_REC-MATERIAL_COST_PLN / AFPO-PSMNG.
    OUT_REC-ADDNL_MATERIAL_COST_PLN =
                     OUT_REC-ADDNL_MATERIAL_COST_PLN / AFPO-PSMNG.
ENDIF.
Multiply the calculated Unit Production costs with the GL quantity to
get the actual production cost of the quantity delivered.
Calculation for Labour Hours
OUT_REC-LABOUR_HOURS_ACT = OUT_REC-LABOUR_HOURS_ACT *
                             OUT_REC-QUANTITY.
OUT_REC-ADDNL_LABOUR_HOURS_ACT = OUT_REC-ADDNL_LABOUR_HOURS_ACT *
                             OUT_REC-QUANTITY.
OUT_REC-LABOUR_HOURS_PLN = OUT_REC-LABOUR_HOURS_PLN *
                             OUT_REC-QUANTITY.
OUT_REC-ADDNL_LABOUR_HOURS_PLN = OUT_REC-ADDNL_LABOUR_HOURS_PLN *
                             OUT_REC-QUANTITY.
Calculation for Material Cost
OUT_REC-MATERIAL_COST_ACT = OUT_REC-MATERIAL_COST_ACT *
                              OUT_REC-QUANTITY.
OUT_REC-ADDNL_MATERIAL_COST_ACT =
      OUT_REC-ADDNL_MATERIAL_COST_ACT * OUT_REC-QUANTITY.
OUT_REC-MATERIAL_COST_PLN = OUT_REC-MATERIAL_COST_PLN *
                              OUT_REC-QUANTITY.
OUT_REC-ADDNL_MATERIAL_COST_PLN =
      OUT_REC-ADDNL_MATERIAL_COST_PLN * OUT_REC-QUANTITY.
Calculation for Labour cost
OUT_REC-LABOUR_COST_ACT   = OUT_REC-LABOUR_COST_ACT *
                               OUT_REC-QUANTITY.
OUT_REC-ADDNL_LABOUR_COST_ACT = OUT_REC-ADDNL_LABOUR_COST_ACT *
                              OUT_REC-QUANTITY.
OUT_REC-LABOUR_COST_PLN   = OUT_REC-LABOUR_COST_PLN *
                              OUT_REC-QUANTITY.
OUT_REC-ADDNL_LABOUR_COST_PLN = OUT_REC-ADDNL_LABOUR_COST_PLN *
                              OUT_REC-QUANTITY.
Get the planned material cost from the total of the planned cost of
the component materials in the production order confirmations.
SELECT BWART MENGE MATNR SHKZG FROM AUFM
    INTO (AUFM-BWART, AUFM-MENGE, AUFM-MATNR, AUFM-SHKZG)
   WHERE AUFNR EQ AFPO-AUFNR.
    CHECK AUFM-BWART NE '101'.
    READ TABLE I_MBEW WITH KEY MATNR = AUFM-MATNR
                               BWKEY = AFPO-DWERK.
    IF SY-SUBRC NE 0.
      SELECT MATNR BWKEY ZPLPR LPLPR PEINH
        FROM MBEW
        INTO I_MBEW
       WHERE MATNR EQ AUFM-MATNR
         AND BWKEY EQ AFPO-DWERK.
        APPEND I_MBEW.
      ENDSELECT.
    ENDIF.
    IF SY-SUBRC EQ 0.
      IF I_MBEW-ZPLPR NE 0.
        IF AUFM-SHKZG EQ 'H'.
          OUT_REC-PLANNED_MATERIAL_COST =
          OUT_REC-PLANNED_MATERIAL_COST +
                       ( I_MBEW-ZPLPR * AUFM-MENGE / I_MBEW-PEINH ).
        ELSE.
          OUT_REC-PLANNED_MATERIAL_COST =
          OUT_REC-PLANNED_MATERIAL_COST -
                       ( I_MBEW-ZPLPR * AUFM-MENGE / I_MBEW-PEINH ).
        ENDIF.
      ELSEIF I_MBEW-LPLPR NE 0.
        IF AUFM-SHKZG EQ 'H'.
          OUT_REC-CURRENT_MATERIAL_COST =
          OUT_REC-CURRENT_MATERIAL_COST +
                       ( I_MBEW-LPLPR * AUFM-MENGE / I_MBEW-PEINH ).
        ELSE.
          OUT_REC-CURRENT_MATERIAL_COST =
          OUT_REC-CURRENT_MATERIAL_COST -
                       ( I_MBEW-LPLPR * AUFM-MENGE / I_MBEW-PEINH ).
        ENDIF.
      ENDIF.
    ENDIF.
ENDSELECT.
Get the Future material cost per Unit by deviding the calculated
Future material cost above with the goods reciept quantity to, then
multiply the unit cost with the GL quantity to get the Future material
Cost for the Quantity delivered. (Quantity in the entery from GLPCA
Table).
IF NOT AFPO-WEMNG IS INITIAL.
    OUT_REC-PLANNED_MATERIAL_COST =
       OUT_REC-PLANNED_MATERIAL_COST / AFPO-WEMNG * OUT_REC-QUANTITY.
    OUT_REC-CURRENT_MATERIAL_COST =
       OUT_REC-CURRENT_MATERIAL_COST / AFPO-WEMNG * OUT_REC-QUANTITY.
ENDIF.
ENDFORM.                               " GET_COSTS
Form GET_VALUE_FROM_COSP                                             *
Get the Material cost from COSP table.                               *
There are no interface parameters to be passed to this subroutine.   *
FORM GET_VALUE_FROM_COSP.
FIELD-SYMBOLS: <FS> TYPE ANY.
DATA: V_COMPONENT TYPE I.
Cummulate the posting values of all the 16 period buckets as to get
total production order cost. This is to handle the aprtial posting of
prodction order values in diffrent periods.
V_COMPONENT = 15.
DO 16 TIMES.
    ADD 1 TO V_COMPONENT.
    ASSIGN COMPONENT V_COMPONENT OF STRUCTURE COSP TO <FS>.
    IF COSP-WRTTP EQ '04' AND COSP-KSTAR EQ P_KSTAR2.
      ADD <FS> TO OUT_REC-MATERIAL_COST_ACT.
    ELSEIF COSP-WRTTP EQ '04'.
      ADD <FS> TO OUT_REC-ADDNL_MATERIAL_COST_ACT.
    ELSEIF COSP-WRTTP EQ '01' AND COSP-KSTAR EQ P_KSTAR2.
      ADD <FS> TO OUT_REC-MATERIAL_COST_PLN.
    ELSEIF COSP-WRTTP EQ '01'.
      ADD <FS> TO OUT_REC-ADDNL_MATERIAL_COST_PLN.
    ENDIF.
ENDDO.
ENDFORM.                               " GET_VALUE_FROM_COSP
Form GET_VALUES_FROM_COSS                                            *
Get the Labour cost and Labour hours from the COSS table.            *
There are no interface parameters to be passed to this subroutine.   *
FORM GET_VALUES_FROM_COSS.
FIELD-SYMBOLS: <FS1> TYPE ANY,
                 <FS2> TYPE ANY.
DATA: V_COMPONENT1 TYPE I,
        V_COMPONENT2 TYPE I.
Cummulate the posting values of all the 16 period buckets as to get
total production order cost. This is to handle the aprtial posting of
prodction order values in diffrent periods.
V_COMPONENT1 = 15.
V_COMPONENT2 = 111.
DO 16 TIMES.
    ADD 1 TO: V_COMPONENT1, V_COMPONENT2.
    ASSIGN COMPONENT V_COMPONENT1 OF STRUCTURE COSS TO <FS1>.
    ASSIGN COMPONENT V_COMPONENT2 OF STRUCTURE COSS TO <FS2>.
    IF COSS-WRTTP EQ '04' AND COSS-KSTAR EQ P_KSTAR1.
      ADD <FS1> TO OUT_REC-LABOUR_COST_ACT.
      ADD <FS2> TO OUT_REC-LABOUR_HOURS_ACT.
    ELSEIF COSS-WRTTP EQ '04'.
      ADD <FS1> TO OUT_REC-ADDNL_LABOUR_COST_ACT.
      ADD <FS2> TO OUT_REC-ADDNL_LABOUR_HOURS_ACT.
    ELSEIF COSS-WRTTP EQ '01' AND COSS-KSTAR EQ P_KSTAR1.
      ADD <FS1> TO OUT_REC-LABOUR_COST_PLN.
      ADD <FS2> TO OUT_REC-LABOUR_HOURS_PLN.
    ELSEIF COSS-WRTTP EQ '01'.
      ADD <FS1> TO OUT_REC-ADDNL_LABOUR_COST_PLN.
      ADD <FS2> TO OUT_REC-ADDNL_LABOUR_HOURS_PLN.
    ENDIF.
ENDDO.
ENDFORM.                               " GET_VALUES_FROM_COSS

Indirect hours for product costing

Hi,
Currently indirect hours are captured manually out of system, how to handle these hours in SAP for product costing?
Indirect hours are lost hrs in production (breakage, shutdown)
Appreciate your inputs
Govind

Hi,
You can capture indirect hours through activity type by giving price indicator 1 and activity type category 1 in KL01(Manual entry, manual allocation).

Product Costing and Labour Hours

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