Product costing issues

1)what is different bitwen with quantity structureand with out quantity structure?
2)what is valvated stocks and non valvated stocks?
3)what is the need of cost component structure , how many segments can be define in cost component structure?
4)how we are going to do work ing progress in product cost
5) what are the status in order, types of order?

Dear Pradeep,
1.Material Is Costed with Quantity Structure
This indicator determines whether the material is costed using costing with or without a quantity
structure.
This setting can be found in Costing1 view in the material master.
Use
If you usually cost materials using costing with quantity structure, turn on this indicator.
If you usually cost materials using costing without quantity structure, do not turn on this indicator.
You can change the indicator in the material master record at a later time.
Procedure
If you always cost your materials (including raw materials) using costing with quantity structure, you
should turn on this indicator. This improves performance, because the system does not search in vain
for existing cost estimates without a quantity structure for every material when it explodes the BOM.
Therefore, only turn on this indicator if you normally cost the materials using costing without quantity
structure.
Regardless of the setting, you can cost a single material with or without quantity structure. However,
you should bear in mind that this setting is always used in the costing run and in mixed costing
(creating procurement alternatives).
CK11N and CK40N is used for costing material with quantity structure.
KKPAN is used for creating material cost estimate without quantity structure.
2.Valuated stock is the stock of the materials maintained in value basis,it may be under Restricted use
or non-restricted use .
Nonvaluated materials (UNBW)
Nonvaluated materials are managed on a quantity basis, but not by value.
5.status in a production order are for Eg,
REL Released
PCNF Partially confirmed
PRC Pre-costed
BCRQ Order to be handled in b
GMPS Goods movement posted
MANC Mat.availability not che
PDLV Partially delivered
SETC Settlement rule created
So after performing each business funtion the status of the production order changes.
Regards
Mangalraj.S

Similar Messages

Hi Product Costing issue

hi all
can any body thrugh some lights on the following issue
I have created a planned order for a SFG/FG & converted into process order when iam analyzing the costs unable to see the origin value in COR2 & unable to have the split
i have not maintained the selection for Material Origin in material master/costing1 & not maintained the variance key for raw material specially
plz.. let me know the solution
i really appreciate the early response
thankas in advance

Hi Rammurthy
Thanks for the response
while Execution of the Ck11n iam unable to see the total split of the different overheads & The consumption of different materials along with the activities,
plz.. suggest me what to do
waiting for the reply
thanks in advance
regards

Special MTO Scenario - Costing Issues

Hi,
Not sure if I should post it here or in the FI / CO forum, but here it is ...
I'm in the process of implementing APO in a Aerospace company in Montréal, Canada and we're stuck on an Account Assignment Planning, and Product Costing issue.
Today, all demand / production / movements / costing is done by creating a Project Network.
Here are the current settings:
- Create a project with activities for each major "line section" for major components.
- Each activity has a component allocated to it
- Each activity has a different WBS element assigned to it.
- All production orders/purchase orders/goods movements are created/posted against the WBS elements.
- All stock for MTO parts are assigned to the WBS element
In order to provide better integration with APO and bring more flexibility in the Planning and Simulation processes, we were hoping to stop using Project Networks as the trigger for demand / planning / execution. The idea was to use Sales Orders (or Customer Independent Requirements - CIR) to generate the demand and run APO and MRP planning from it. The special stock segment now becomes linked to the sales order (or CIR) which changes alot of thing in the accounting documents and costs elements in the whole planning and execution processes.
Here is what we were hoping to achieve in order to limit impacts on finance :
- we are implementing APO and would like planning to be performed without using project networks.
- we would like to have planned orders for the top level for long term and be able to trigger the purchasing of long lead time items.
- we would like all goods movements (PO reception, GI to production order etc, ) to be posted to WBS elements
- we would like all production orders to settle to WBS elements
We tried different scenarios with different account assignments categories, but could not find one that fits the bill :
1) we tried using account assignment category "D" which allows assignment to sales order and WBS element. We created CIR as demand.
The problem is the stock is non-valuated which resulted in having no accounting documents for goods issue to production order.
2) we tried account assignment category "Q" with using CIR as demand. We had one WBS element assignment in the CIR. When we changed the WBS value in planned orders to represent each "line section" we ended up with duplicate demand in the original segment and the new segment.
So, is there a scenario with valuated stock that would allow us to do a make-to-order process that would post all costs to WBS?
Thanks,
Marc

Hi, sorry for the title confusion ... I cannot change it anymore.
I'm not sure I understand what you are proposing.
In our case, the problem is not really linked to the CIFing to APO but more on the Account Assignment Category in ECC and the Customer / Project Stock Segment in MRP.
Since we have a multiple level BOM and that the intermediate levels need to be associate with different WBS element according to major parts of the aircraft.
Here is an example :
Aicraft -- Has its own BOM with major parts as sub assemblies,
Major Parts -- Each Major Parts needs to be linked to a different WBS for costing purpose.
Minor Sub Assemblies -- All cost of producing the Minor Sub Assemblies should be tracked inside the Major Parts WBS.
Components -- All components costs and accounting documents should be tracked inside the Major Parts WBS.
We know that by using a project Network for the Aircraft Level we could create activities for each Major Parts with different WBS, but since we want to do planning in APO, we were hoping to not use PS has a scheduling basis. The integration of PS in APO is still not used a lot and the flexibility of Projects in planning processes is not great.
In resume, we are trying to create the demand from a Sales Order or CIR, but manage costs and accounting documents within WBS for all level in order to limit impacts on the Finance Department.

Product Costing MTO vs MTS

Hi everybody:
Please, anyone can say me what is it the main difference between MTO & MTS under point of view of Product Costing?
I mean where is the difference for reports, analysis, where are posted the values of cost of production?
Thanks
Omar Perea

Dear Omar,
Check these links,
Make To Stock ,
http://help.sap.com/saphelp45b/helpdata/en/7e/cb7d6343a311d189ee0000e81ddfac/content.htm_
authorization for TECO
Product cost issue
Make To Order,
http://help.sap.com/saphelperp2005/helpdata/en/dd/5600cb545a11d1a7020000e829fd11/frameset.htm_
Regards
Mangalraj.S

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

Issues adding variable production cost

Hi
I am having issues to find the correct way to add production cost.
I know that basically a labour item that has cost in master data (Standard method) is added to the BOM and will then be added to the production order. However, this is a fixed cost, and even the same cost for every BOM/production oder.
How can I add variable cost to the production that i can easily change at the end of the production?
additional ...: I do receive invoices from external companies for the production/assembling - mostly some weeks after the production. Ho do i enter them into the system? Is there a way to link the received invoice to the cost of a production order?
Thanks for your help
Franz

Thanks for your answer!
Here's what I am going to do ... maybe someones interested in this too:
- Create an item with standard cost evaluation and a standard cost of 1$ (I plan to use this in BOM for production cost and purchase, mainly)
- Make this item a non-inventory, sales- and purchasing item
- Add a price to the price list (needed if used in sales and BOM sales calculations)
- Add the item, with a quantity relative to the production cost (external work) to be added, to the BOM / production order (i.e. 15.5)
- Use the item to issue a PO for this external work
- The production cost will be included in cost calaculation of item
- The invoice for the external work can be added to the system and the item does not have to be reevaluated
Franz

Planned issues against a Product Cost Collector

Hi, I am very new to Product costing and currently looking to find out the planned quantities that are there against the actual quantities that are issued through a Product Cost Collector for producing a Semi finished good maintained in Kg. Any help?
Thanks
Deepankar

Hi
The issue is solved.
The problem was on our end that some of the transports were missing. Ajay was right and those transports were missing.
Thanks Ajay.
Really appreciate it

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

Error while creating Product Cost Collector

Hi SAP Gurus,
While creating Product Cost Collector I am getting the following Error:
Enter a distribution rule for Order without a validity limit
Message no. KD059
Diagnosis
The settlement profile used requires you to define a distribution rule for Order. For period 009 2008, however, you have not created a distribution rule for Order.
Procedure
Create a distribution rule for Order without a validity limit, because, if the distribution rule does have a validity limit, the system always issues this message in the period following the last valid period.
You can also use a different settlement profile that does not require such a distribution rule, or change the settlement rule used.
Can any one help where exactly i need to maintain this.
The settlement profile settings are fine.
I am getting this error only after i have changed the scenario to Reproting point back flushing

Dear Suryanarayana
Please check the corresponding settlement profile for product orders.
In most of the cases message KD059 means that no distribution rule is assigned to your production order.
This is not an error, but the system design. In order to avoid message KD059 you will either have to enter settlements parameters and a distribution, or change settlement profile for valid receivers in transaction OKO7 from 'settlement required' to 'Can be settled'.
I hope this helps resolve the issue for you. I wish you the best in your endeavours.
Kind Regards,
Brendan

Product Costing - Message CK 318 ()

Hi Experts,
While executing product cost calculation for material YYY we had warning message CK318 - Cost estimate for material XXX contains errors -> Planned price). XXX is a component used in YYY and the message was issued because we did not have price for XXX. We are now able to proceed with standard cost release for YYY.
As I remembered previously, if you have an error in lower level, the higher level material would have been costed with error too. Seems that this is no longer the case.
I am not sure if this has changed in standard system in ECC 6 or we have to change message control for this message from Warning (W) to Error (E) but it seems the system reaction is not logical to me.
Thanks for shedding insights into this.
Teck

HI Teck,
Can you go to OKKN, and quantity structure tab and check out the 'transfer active std cost meates if material costed with errors check box?
Best Regards
Vimal

While product costing CK11N error

While using CK11N I am getting following error:
Sr.No.               Error Description                                                                                Msg No
1>     No price could be determined for Material /Batch XXXXXXX/Plant XXXX                                                    465
2>     Cost Component split costed with value zero                    240
3>     No valid source of supply could be found.                         380
4>     Object was not costed                                60
5>     Cost estimate for material XXXXXXX /Plant XXXX is incorrect                                 168
Please help me how to fix above problem.
Thank you.

Check following points,
Probably material might be split valuated,Check price is maintained for all valuation types including header in MM60.
Check price is maintained in info record.
Check type of procurement in MRP2,it will be external procurement - F.
Do product cost estimate using KKF6N.
Check production version is maintained in MRP4 ?
Check throughly all masters vendor,info record & material master.
It will solve the issue.

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

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

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

Product costing valuated sales order stock

Hi all,
We are in complex mfg & currently re-vamping all the ERP SAP instances ( totalling 13 company codes into one single)
All 13 units( who use NON Valuated scenarios for cost object controlling) wil use valuated sales orders & projects. The old 13 companies will be trated as profit centers with transfer pricing functionality ( Multiple valuations)
My issue is to get a product cost for sales order in <b>profit center view</b> ( plan cost) exactly same as to the marked standard cost itemisation of the FERT material.
We mark & release the std cost in Jan & the client wants to have the same itemisation of the cost ( with same values) even if they create a sales order in 2nd or 3rd or last quarter. ( As you might be knowing that the sales order wil always cal;culate the values as per the current qty structure date. In Std SAP date control, there is nothing which allows us to cost exactly the same cost estimate as marked & released in JAn)
Could somebody pls give pointers as how to get this sales order plan cost itemisation exactly equal to prevously marked & released itemisation ?
We use the Std costing variant ( Costing Type = Profit center valuation) with Std date control.
Thanks in advance to all of you,
Warm Regards
Dhiraj

Hi,
If the sales order stock is valuated, you have immediate access to its value in Financial Accounting. The assigned accounts are debited and credited as a result of the valuated goods movements. From the viewpoint of MRP, the sales order stock is available for the sales order only.
If the sales order stock is not valuated, it is managed via a cost collector. The system does not carry out invoice verification postings for goods movements, and you cannot obtain an overview of how the stock is valuated until the end of the settlement period in Controlling.
Valuated sales order stocks have the following advantages:
The full costs are available at each manufacturing level.
All goods movements are immediately reflected in Financial Accounting
Assign points if helpful
Regards,
Saurabh

Product costing issues

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