Product costing related querry

Question

What are the settings and configurations that are required to be done for production order costing by PP and FICO modules so that the order gets costing. I am told there are settings for activity type in workcenter. Also terms like cost carriers that bind the workcenter and the cost center and finally this data flowing after the confirmation is done.
Kindly explain the process and how to do the same in SAP system also.

Answer 1

Dear Varun Kapoor,
Check this,
Product Cost = Materials Cost(ROH + HALB Materials Cost)Activity Cost (Operation Cost)Overhead Cost.
1.Raw materials cost are generally entered as Planned price along with the valid from date in Costing 2 view,and price
control indicator is "V".Origin group has to be given to all the Raw materials in costing 1 view.
2.For HALB Materials Price control indcator will be S for Inhouse manufactured & V for externally processed materials (Sub-
Contracted Items) respectively.Also assign Overhead group for all Inhouse manufactured items if a costing sheet is maintained for
overheads..
3.No need to enter any value(price) for the materials having S as the price indicator and for Sub-contracted itesm that's F30 also no
need to enter any cost in the material master.
4.Activity cost is the cost incurred in performing individual operation.This cost is captured via the work center which we mention in
each operation in the routing of that product.A Cost centre and an appropriate activity type is assigned in the work centre.
5.Proper Rates should be assigned for the combination of Activity type and Cost centre.
6.Overhead cost is the indirect cost that we capture according to the customer's requirement.
7.If certain items for certain products alone should not be considered for costing means,then we can achieve this using
costing relevancy indicator in the BOM and for the activity(operation's mentioned in routing) which should not be considered for costing
also can be mapped by removing the costing relevancy indicator in routing.
Overhead group is aasigned in Costing1 view.
8.Creating Cost center - KS01
9.Create Activity Type - KL01.
10.Assiging Rates for a cost center/activity type combination in T code KP26.
11.Cost estimate Related T codes are CK40N,CK11N,CK24.
12.UseCK40N always,so that you can do the costing ,mark the price and release the same.Generally Cost Rollup will be taken for
Finished product so that the sytem automatically calculates for the Semi-Finsihed products standard cost.
13.IF you use CK11N,then only costing will be done,but for marking and release you have to use CK24.
14.For each Production order type in T code OPL8 Order Type Dependent Parameters - Under controlling tab - Costing variant Planned
and actual has to be assigned.
15.In REM scenario - Product Cost Collector has to be created using T code KKF6N for all Inhouse Manufactured assemblies.
Regards
Mangalraj.S