Product Costing Co-Product

Hello,
We have the following issue in the Material Cost Estimate (using the Standard Cost Estimate with Qty Structure).
In the production line #1, the Product B is treated as a co-product and, based on an apportionment structure, it is reducing the cost of the leading Product A (based on the % specified in the Material Master u2013 Joint Production tab).
In the production line #2 (same plant of production line #1), the Product B is treated as leading product and the cost is calculated based on BOM & recipe.
The Standard Cost in the material master of Product B is based on value calculated in production line #2.
Do you know if it is possible update the price in the material master data of Product B using the value calculated in Production line #1 instead of Production line #2 (excluding the BOM/Recipe of production line #2)?
Thanks for your support, Dario

Thanks for your answers!!!
just to summarize:
1. in the material master of Product B we'll set the BOM usage = 6 (the BOM usage of Product B in production line #2 remins 3)
2. create a new BOM in production line #1 where the Product A is the leading product and the Product B is the co-product. The BOM usage is 6.
To cost this product i need to use the transaction CK40N or CK11N (using the BOM usage 6)?
Dario

Similar Messages

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

Product cost or Product unit cost

Hi,
Does anyone know if there is any standard content for product cost or Product unit cost? Please let me know. I don't know under which area this belongs to ie SD, MM....etc.
thanks
Sabrina.

Hi Sabrina,
You can evaluate CO-PC datasources in your R/3 system and the corresponding sources, objects etc. in BC.
Also you may look at Product Cost Controlling Analyses at BI best practice:
https://media.sdn.sap.com/html/submitted_docs/Best_Practices/BW/index.htm
Best regards,
Eugene

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Hi Gurus,
I have a question about preference determination for a finished product. As you can see from below screen shot, there is a value for production costs, which is used to calculate RVC. Could you shed lights where this production costs value is from?
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Ryan

Hi Dave,
Thanks for your reply.
Actually I checked related tables mentioned by you. However, the logic does not explain well in my case. Value from table /SAPSLL/PRVAL for value type PROD_PRICE is not equal to productions costs showed during performing material preference determination.
One more thing, I got an odd case which has production costs as minus value( -3095.21 CAD). while doing preference determination. Any idea why prodduction costs is minus? (see attached screen shot)
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Product costing without production planning module

Is there any way to work with product costing module without production planning for service sector.

Hello
You may use the product costing without quantity structure. This is useful if you do not have PP module but have materials and you need to calculate the standard cost of the materials.
In case you do not have materials and only have kinds of services then these can be created as activities for a cost center like a FICO consulting activity for SAP cost center. You may then calculate a price per hour of the activity and may charge it to the service order/ internal order.
Sangram

Recognizing external production costs for production order

Hi Experts,
Our company is new to SAP and one issue we have not resolved is whether it is possible to attach costs to an Inspection Plan, and ultimately have these costs flow with the production order to Cost of Goods Sold (COGS).
The objective is to enable us to analyze which specific customers/products require us to incur these additional costs. Any advice you have to accomplice our objective would be appreciated.
We are a Process Industry, and many materials are sent out for external testing. These costs are significant and some customers and/or products require more testing. We currently have Inspection Plans set up for each Material that requires testing, but have not found a way to burden the material with the appropriate COGS for the external testing.
For example, if a product must be tested for the following characteristics, and each test cost is known, how do we get the test costs attached to the production order for the total of $200?
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Thank you!

Richard,
Are you able to advise which forum is the proper one for this question?
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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

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

Product costing Reports in ECC 6.0

Does anyone know where I can find standard SAP reports for product costing and assets?

Hi,
Please check following path in easy access
1) Accounting ->Controlling -> Product Cost Controlling ->Product Cost Planning ->Information System
2) Accounting ->Financial Accounting ->Fixed Assets ->Information System
Best Regards,
Madhu

Which Product Costing is most used By order, By Period, By Sales Order?

Hi,
As you know there are three types of product costing.
Product Cost by Order
Product Cost by Period
Product Cost by Sales Order
May i know which product costing method is widely used in the industries?

Hi Vijay,
Looks like your working on MTO and MTS pocess.I am new to Make To Order and Make to Stock controlling process and client like to implement Make To Order with SD integration. have you worked on these processes? Please explain me what is Make to Order and Make to Stock Process in Controlling (SAP-CO) and configuration in CO.
If you can provide process design documents and configuration documents to me.
anusha.r3 at gmail
Thanks & Regards,
Anusha

Product Costing Related Reporting

Hi Gurus,
Kindly provide the Transaction codes for Product Costing reports and any other related but useful to Product costing reports.
Also, what is the TCode for consumption reports to compare actuals with planned..?
Many thanks.
Points available.
Cheers..!!

HI,
There are lot of Product costing report available under Information system menu. Product Cost Controlling-> Product Cost Planning ->Information system.
Hope this helps.

Product cost v/s Production Order cost

Hi all Guru's,
Can any one help me in understanding difference between product cost and production order cost in SAP.
Will give full marks for helpful answer.
Thanks,
Abhishek
Edited by: ABHISHEK AGRAWAL on Jan 29, 2008 9:46 AM

Dear Abhishek,
Standard Cost Estimate or Material cost Estimate is nothing
but the standard cost for the Inhouse Manufactured materials
(FERT) = Raw Materials Cost + Activity(Operation Cost)
Cost+Overhead Cost if maintained for the Company code.
This cost will gets stamped in the material master in Costing2
view,under Current Planned Price field.
This cost will be the Planned Cost of the Production order and
after confirmation of the order the actual cost and the variances
for the production order can be viewed.
So the Production order cost is for the order quantity say for
Eg: for a quantity of 100.
The cost(variance) will be settled against that production order
after confirmation and TECO status.
I hope this will be helping you.
Regards
Mangalraj.S

Internal Production Cost

Dear all,
Can anyone assist me how special production order process cater the internal production cost. (internal production cost, not material cost)

Internal Production cost captured as Additional Cost in Summary tab,
You can get its break up in WOR1 table.

How to Close Planned Over Heads in product costing

HI,
We are maintaining planned over heads through KP26 and Costing sheet.Kindly tell me how to close planned over head wether it is periodicall closing or other?
Kindly provide me the guide lines how to do this Planned overheads closing in the system?How many ways are there to close planned overheads in the system?
Kindly adviice me?
Thanks
Sunitha

Dear Sunitha,
To run the Cost estimate or close the planned overhead KP26 and Costing Sheet is not enough you have to move forward and you need to define Cost component Structure (OKTZ) Path: SPRO > IMG > Controlling > Product Cost Controlling > Product Cost Planning > Basic Setting for Material Costing > Define Cost Component Structure. After maintaining cost component structure you need to define Costing variant T.code OKKN Path: SPRO > IMG > Controlling > Product Cost Controlling > Product Cost Planning > Material Cost Estimate with Quantity Structure . Here you copy PPC1 standard and create your own costing Variant.
After Maintaining the Configuration go to T.code CK11n and run your costing and if it is correct then save it. To update Price in MM run T.code CK24 and release Material and update it.
thx.
Ganpat

Blogs for Product Cost Planning (CO-PC-PCP)

The intent of this thread is to collect the relevant blogs in CO-PC-PCP are
1. How to Configure Mixed Costing
/people/young.sun/blog/2010/05/17/how-to-configure-mixed-costing
2. Currency translation when calculating price from purchasing info record
Blogs for Product Cost Planning (CO-PC-PCP)
Edited by: Young Sun on Oct 7, 2010 7:50 AM

Hi,
Followings are the steps for configure the mixed costing in sap
A. Create a Procurement Altternative in CK91N for each of the 4 prod version... Choose process category = Production in CK91N
B. 1 Now, create a mix cost ratio for each of these 4 proc alternative in CK94....
B.2 To maintain a mix ratio in CK94, you need to maintain Qty Structure Type.. Follow the below steps
create a Qty Structure Type in IMG - Controlling > Product Cost Controlling > Product Cost Planning > Selected Functions in Material Costing > Mixed Costing
> Define Quantity Structure Types - Define Qty Str Type here and assign it in the next step
> Define Costing Versions - Assign Qty Str Type to your costing version 1 and Costing Type
C. Now run CK11N.. Your std cost will be a weighted average of all the 4 prod versions... And target cost in production order will be based on the prod version used in prod order
Regards
Ashok verma

Product Costing Co-Product

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