Product Costing Cycle

Hi
Can somebody explain me the entire cycle of PRODUCT COSTING configuration...
10 points will be rewarded..
Rgds

Hello
Check these threads in the forum. It would give a fair idea.
Product costing
Product Costing
Product Costing
Reg
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Similar Messages

Product costing Cycle run for first time to complete backlog

Dear sir,
In my Company we went live in April 2011 and since then we never did settlement of Product costing as process was not stream line , but now (in Aug-2011) it is stream-line and we wanted to do Proper costing Cycle run & settlement too.
Can you please let me know that how to proceed further, what precautions must be taken and whether we have to do settlement for April till July or directly we can go for settlement of last month July-2011.
Please let me know detailed steps,
Thanks & Regards,
Ashutosh

Hi,
Settlement will be done on period basis in you're case June month is closed and now open periods are July and august.
so the production orders can be settled collectively in CO88 for July month.
and for costing run i.e standard cost estimate you need correct BOM and Routing.
after doing settlement of production orders do costing run.
it's not mandatory that settlement should be done. even you can run the costing with out settlement.
costing run will consider the raw material prices ,activity prices sub-contracting price etc..
after considering the above prices after releasing the costing run it will update the actual price in the material master of the header material.
for indual material=CK11N and CK24
Collectively=CK40N
For the materials with Price indicator V(header materials) settlement is important here no cost estimate.
settlement of production order will leads to change the price in the material master. so here no Standard cost estimate..only settlement.
revert me if any issue
Regards,
Ravi

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

Production cost in SAP

Hi,
i have calculated the standard price of product in SAP. but at the end my production cost seems very high and i don't understand why
this is what i did:
first i upload the budget in the system in KP06 for the full year
i upload the quantities of activities in KP26 for the full year also
then i run the assessment cycle to bring the budget at the level of the "production cost center"
then i splitted the budget per activity in KSS4, to get the budget of each activity/cost center.
i calculated the price of activities in KSPI.
then i run CK40N, to calculate the standard price of the different product.
but my problem is that:
why when i make the sum of all the production cost for all the product, i don't find again the initial budget i put in the system?
thanks for your comments

Hi SAPXPT,
Try transaction RKACSHOW, see note 28145. RKACSHOW shows all the tables that are updated on an order.
Regards,Declan

Over Absorption in Production Cost Center.

Dears,
We are getting the over absorption in cost center after doing of actual price calculation settlement. we have done the following transactions at month end. eventhough we are getting over absorption (i.e., credits are more than debits) Credits are activity costs are transferred from production cost center to production/process orders or product collectors.
KO8G settlement of internal orders to cost centers.
KSV5 execution of distribution cycle.
KSII execution of actual price calculation.
CON2 revaluation at actual prices.
CO88 Settlement of Production/Process Orders.
Even after doing of the above trnasactions we are getting over absorption.
kindly advise me in order to resolve this issue.

Hi Divraj,
The same issue i am replicating in the development server i created one assessment cycle i gave one service cost center as sender and one cost element group, the group contains 10 primary cost elements(GL's), i done postings with 10 gl's respect to this service cost center, in my assessment cycle i gave one assessment cost element in segment header the sender rule is posted amounts, the receiver tracing factor contains variable portions, actual activity and no scaling, in receiver i gave cost center group contains 4 production cost centers, sender values is share in 100%, version is zero the receiver tracing factor tab contains variable portions as actual activity and one activity i maintained, the receiver weighting factor contains 4 production cost centers and factor percentage is 100%.
Now i execute the assessment cycle in KSU5 i am getting senders in cycle but receivers i am getting zero, when i took the actual activity, variable portions and no scaling i have to maintain activity price in KP26 and this cost center i have to maintain in process order that is fine please explain me how the cost will distributed to production cost center please explain the procedure in detailed.
Hopefully i will get clarity on the concept................

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

Actual Activity allocation and Planned and actual activity comparison issue in Product Costing

Friends,
I have tried to explain the issue i am facing currently under Product Costing......
1.Cost Component Structure
10 – Material
20 – Labour
30 – Diesel
40 – Electricity
2.KP26 – Planned under Fixed Price
Labour – 2.0 HR
Diesel – 1.0 HR
Electricity – 5.0 HR
3. When I run CK11N system collecting correct rates for all activities (Costing Lot Size- 1)
Like;
1              E              LAB10    994310                  2.00        2.00        AED        1.0          HR Labour Cost New
2              E              DIE20    994320                  5.00        5.00        AED        1.0          HR Diesel Cost New
3              E              ELE30    994330                  1.00        1.00        AED        1.0          HR Electricity Cost
4              M            1100000042                          5.00        0.00        AED        1              PC RAW MATERIAL BAKERY CONSUMED
5              G            994201                                0.00        0.00        AED                        Depriciation Cost
6              G            994202                                0.00        0.00        AED                        Sales & Distribution Cost
                                                                          13.00                    AED
4.When I do process order Cost analysis for the produced goods it shows me different figures as my
BOM – RM is 1100000042 1 Quantity
Routing – All activity time is 1 Hr
40002                    RAW MATERIAL BAKERY CONSUMED          1005/1100000042            5.00
40015                    COST OF GOODS MANUFACTURED              1005/4400000071            13.00-
994310                  Labour Cost New                                              CBAKYPDDXB/LAB10      1.33
994320                  Diesel Cost New                                              CBAKYPDDXB/DIE20      3.33
994330                  Electricity Cost                                                CBAKYPDDXB/ELE30      0.67
                                                                                                                                          2.67- AED
Note :- As per my understanding it should be
    Labour Cost New                                            2.00
                Diesel Cost New                                              5.00
                Electricity Cost                                                1.00
5.Now after Process Order confirmation
40002                    RAW MATERIAL BAKERY CONSUMED          1005/1100000042            5.00
40015                    COST OF GOODS MANUFACTURED              1005/4400000071            00.00
994310                  Labour Cost New                                              CBAKYPDDXB/LAB10      4.00
994320                  Diesel Cost New                                              CBAKYPDDXB/DIE20      5.00
994330                  Electricity Cost                                                CBAKYPDDXB/ELE30      2.00
                                                                                                                                          16.00
6.For Month end actual Activity calculation and load the activaty actual rates on product
I have configured the system in below manner
1 Work center = Mapped to 1 Production Cost center
Three Different Activities mapped to Secondary Cost Element with 43 Category
For Electrictity Activity assesment from Primary to secondary 1 more cost element created with
      Category 42 Like; 994215-Electricity Cost All
One Actual Assessment has been configured to allocate Electricity cost from Primary Cost element to
      Product/Order
7.Assessment Cycle Details
Controlling Area      1000 Controlling Area
Cycle                ZELE01                  Status    Reviewed
Start Date 01.01.2014 To 31.10.2014
Text                  Elec. Cost Allocation to PROD
IND- Interactive
Assessment CEle       994215      Electricity Cost All
Sender
Cost Center    CBAKYDXBAD
Cost Element 40204
Receiver
Cost Center    CBAKYPDDXB
Tracing Factor
Var.portion type – Actual Activity
Selaction Criteria
Activity Type - ELE30
Receivers Tracing Factor
Cost Ctr Factor per        100
CBAKYPDDXB 100
8.I have received the actuall electricity bill for 1100 AED and the same has accocated through KSU5
After Cycle run when I follow below procedure
KSS2 Actual cost splitting
CBAKYPDDXB                    Production Dxb                LAB01                    183.33
CBAKYPDDXB                    Production Dxb                DIE02                    183.33
CBAKYPDDXB                    Production Dxb                ELE03                    183.33
CBAKYPDDXB                    Production Dxb                DIE20                    183.33
CBAKYPDDXB                    Production Dxb                ELE30                    183.33
CBAKYPDDXB                    Production Dxb                LAB10                    183.35
                                                                                                                1100.00
Issue – System Split Electricity cost between all the activities assigned to Workcentres Cost Centre.
But I want to post that cost only to ELE30 Activity and not for all
When I RUN KSSI for actual Price determination system shows
OTy        Object                                  Name                  AUn                Act Qty      Total price    Price (Fixed)              PUnit
ATY        CBAKYPDDXB/DIE20        Production Dxb      HR                  5.0          366.66                  366.66                    10
ATY        CBAKYPDDXB/ELE30        Production Dxb      HR                  2.0          916.65                  916.65                    10
ATY        CBAKYPDDXB/LAB10        Production Dxb      HR                  2.0          916.75                916.75                    10
                                                                                                                                                      2200.06
2200.06 is almost double than 1100.00 which is actual electricity cost and the same is actually determined for all the activities.
After revaluation of the process order system posting below values
40002                    RAW MATERIAL BAKERY CONSUMED          1005/1100000042                            5.00        5.00
40015                    COST OF GOODS MANUFACTURED              1005/4400000071                            13.00-    13.00-
994310                  Labour Cost New                                            CBAKYPDDXB/LAB10                      1.33        183.35
994320                  Diesel Cost New                                              CBAKYPDDXB/DIE20                      3.33        183.33
994330                  Electricity Cost                                                CBAKYPDDXB/ELE30                      0.67        183.33
                                                                                                                                                          2.67-      542.01
Production Variance is posted as 542.01….
I strongly believe there is some issue in configuration for activity allocation….
Main issue is
Point No. 4 – Different Figures in Process Order Cost Analysis
Point No. 7 – Assessment cycle run
Point No. 8 – KSS2 and KSII for Actual cost Allocation and Production variance…
Friends… I have tried to explain maximum please help me to understand the concept or missing configuration/Process.
Thanks
Sagar Chinchkar

Dear Rajneesh,
I have made the changes as suggested....
It seems now my Order Cost analysis and Product cost analysis are showing the same figures.
I have also maintained cost center splitting structure for ELE30 Activity allocation.
Structure Z1
Splitting structure for AT
Assignment 10
Electricity Cost
100
Allocation for ELE
Cost Element
994215
Activity Type
ELE30
Splitting Rule
100
Allocation for ELE
12
Activity quantity
Version 0
In my case actual activity confirmed is 3.1 for 2 orders in period 5
Order 1 - QTY 2
Order 2 - QTY 1.1
Total actual Electricity exp is 1150 in period 5
followed procedure to post actual activity on product is mentioned below
KSS2 Actual cost splitting - Result as expected 1150 for ELE30
KSII Actual price determination - Result as expected 3.1 actual confirmed QTY for ELE30 with actual price
       QTY 3.1         Tot Price 3,709.68        Planned(FIX) 3,709.68     Per Units 10
       (System is doing 1150/3.1*10=3709.68)
    3.CON2 Actual revaluation of orders
      Here while reevaluating the Process Orders system calculation is different
Order 1 - QTY 2 -   558.00
Order 2 - QTY 1.1 - 407.56
Total -                    965.57
     4. After CON2 system is changing the value of other activities like
     LAB10 - Actual confirmed Value 10 to 0
     DIE20 - Actual confirmed Value 10 to 0
Which should not be the case....
                                                                                                              PL     Act     Var
40002
RAW MATERIAL BAKERY CONSUMED
1005/1100000042
10.00
15.00
50.00
40015
COST OF GOODS MANUFACTURED
1005/4400000074
26.00-
26.00-
994201
Depriciation Cost
WMBDDEP01
1.00
0.00
100.00-
994202
Sales & Distribution Cost
WMBDS&A01
1.00
0.00
100.00-
994310
Labour Cost New
CBAKYPDDXB/LAB10
4.00
0.00
100.00-
994320
Diesel Cost New
CBAKYPDDXB/DIE20
10.00
0.00
100.00-
994330
Electricity Cost
CBAKYPDDXB/ELE30
2.00
408.06
20,303.00
If we want to just post Electricity cost based on actual Electricity expenses and Labor and Diesel are based on planned activity rates.
What setting is required in current system.....
Million thanks in advance....
Regards
Sagar Chinchkar

Allocation of cost from service cost center to production cost center

Dear sir ,
Will I use to distribute the cost from service department to production department and that cost centers also using for activity planing will get currect result in product costing ?

Hello,
Can you clarify what you want to do ?
Allocation of cost from service cost centers to production cost centers can be done with the help of Assessment / Distribution cycles and you can do a activity planning using the same costs as well. The steps for activity planning would be as under:
1. Create primary cost planning in the service and production cost centers (KP06)
2. Create activity planning in the production cost centers (KP26) without any rate
3. Run assessment / distribution cycles to transfer cost from the service cost centers to production cost centers (KSUB / KSVB), in case you are not transferring based on activity quantity then also do SKF planning in KP46
4. Run plan cost splitting in case you have more then one activity type (do config for splitting structure beforehand) (KSS4)
5. Calculate Plan price for the production cost center activity types (KSPI)
BR // SG

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

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 Costing:External Processing

Hi Gurus,
My doubt is I am comparing standard cost estimates of production client with another client which is its copy. The product cost estimate of a material, the cost component 'External Processing' is showing value 700 in PN client and 1000 in the New client. The cost element for 'External Processing is 700000000H as primary cost element and another as secondary cost element. I tried checking the GL account report in FBL3N regarding the postings happened in the GL accounts.
1. My question is why there is a variation of 700(of PN client) and 1000(in NEW client).
2. The second question is, from where these values are flowing.How we can trace back the flow of values for this particular cost component of External Processing' of a material cost estimate?
Is it anyway related with Exchange Rate differences? If so, how and where it is linked?
I'll be really grateful for your answers.
Looking forward for you reply soon.
Thanks,
Prithwi.

Hi,
I have checked the valuation variant 001. The startegy sequence is same only. There's no change in configuration settings as the new client is copy of production client only.
I wanted to know, the 'External processing' data or values from which.postings. How it gets picked up and how we can check its origin?
Thanks in advance for your help.
Prithwi.

Product cost component

Hello all,
I am trying to create a report painter report which dsiplays all the cost components on the columns and materials along the rows. I have chosen structure KKBE library 7EE to accomplisg the task. However I cannot come up witht the report I want to.
I have started doubting if the table and library even provides with the capability to achieve a report of such nature.
Please advice me whether the library and structure that I am using is right? if not what is the best structure that can be used??
What kind of reports can I make using structure KKBE?
I have been suggested that ABAP report is the best option that we have. Can you please confirm that for me?
I want to know what reason should I put before the management to effectively convince them that report Painter dosen't possess the capability and that ABAP needs to be used? (If that is truely the case)
Points will be duely assigned for all helpfull answers.
Thanks,
NIK

I tried defining the report however this is the error message I get when I try and execute the report.
Can someone please advise on how to fix this probs. Above all, please explain in plain english what the message is all about.
"Report contains more than one report object"
Message no. KN089
Diagnosis
The report is for more than one report object. This causes performance problems. This is not supportedc in product costing in particular.
Can't really understand what that means?
Also can you tell me what characteristics do I need to pull to define the column for cost component lets say "Direct Depreciation". If you can tell me for 1 cost comp I can emulate the info to define the rest of the columns for diff cost comp.
thanks
NIK

How to calculate the Current APC (Acquisition and Production Cost)

Hi,
Please help me how to calculate the Current APC.
The Current APC (Acquisition and Production Cost) is a calculated value based on Previous Year Acquisition balance plus any value changes up to the time of the report.
The Asset History Report (RAGITT_ALV01) calculates the Current APC value &
The Current APC can also be found in the Asset Explorer (transaction code AW01N) under Country Book 10/ Posted Values tab then the line Acquisition Value and column Posted values.
I suppose that the calculation of Current APC (Acquisition and Production Cost) is getting done in the GET statements in the report RAGITT_ALV01, but unable to find the actual logic.
Please help me.
Thanks in advance,
Satish

Hi,
you'll find the logic in fm FI_AA_VALUES_CALCULATE
A.

How to add depreciation and interest in product costing?

how to add depreciation and interest in standard cost estimate and actual costing in product costing ?

Hi,
WHy the admin and sales overhead will be deited to cost of product. The cost of product should include only the factory related direct cost and overhead cost .. not the sales and admin ovehead. exp. for those treat them as period expense and pass on the same to COPa and there those can be analysed there..
I hope i am clear..
Regards
Prabhat

How to maintain One product cost collector for multiple materials and configuration setting

Hi experts,
my requirement is that i want to maintain one product cost collector for multiple materials ans also i want to know the configuration setting for the same.
I have used KKF6N but it is not working in my case. I went through KKF6M also but there i found multiple cost collectors.
please guide me in the same.
Thanks in advance.

Hi Shripad,
you cannot assign same Product cost collector to different material.
Because you creating cost collector for material combination of material /production version,material /Bom Routing.
so please create individual cost collector for every material.
if you have any query kindly revert back.
Please mark the answer as helpful if it is helpful to you.
Because march 5 onwards scn has stopped awarding points to liked content.
Starting now: No more points for likes on comments/replies
Thanks & Regards
Sandeep Kumar Praharaj

Product Costing Cycle

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