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

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Can any body working product costing or CO_PA
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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 .
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In Disrete manufacturing Product costing
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Hi,
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govind.

Hi
1. If the original cost estimate was run in the current month - Then you cant re-release cost estimate unless you reverse it from CKR1
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