Production cost for MTO in Sales Pricing

Hi All,
For Make-To-Stock items the material standard cost comes from Accounting view of material master as VPRS in Sales Pricing (provided we include that condition type). Now how do I get the production cost for Make-To-Order items in Sales Pricing. Please elaborate the process.
Thanks in advance.

In the first Accessof the Access sequence 0016 for Additionals (specified for the condition type KAD0) , under the fields - there is a field called Doc. Field. When I changes this field through a ADDNR to MATNR - then the condition record is properly picked and KAD0 condition is filled with the cost and then used accordingly in the calculation schema.
However this looks only like a workaround.

Similar Messages

Planned cost for MTO

Dear,
Here in the company have the following situation:
The system appropriates the planned cost for the production order when the process is MTO.
Anyone know any way to settle the planned cost of the stock of free stuff and not the planning of the Order of production?
thank,
Sergio Navarrete

Ajay,
Here's an example:
This material is the planned cost for the stock free: Process MTS.
Standard Price 12,96
In the same material (special stock) planned cost came with the Production Order Sales Order. MTO process.
Standard Price 100,96
Order 20232271
So we can see that the cost calculated by the planned production order is very different from the planned cost of the same material for free stock.
Question:
You can make the system use the same cost of the planned free stock for stock of the particular process, such as material inventory value free, 12.96?
thank,
Sergio Navarrete

How to select the production versions for MTO?

Hi PP Experts,
In our scenario we have two production versions and also we are in MTO strategy. While creating the sales order is there any option to select the production version (i.e.) before planning for that corresponding sales order I have to choose the production versions.
Example:
Material u2013 A -
sale order u2013 666001 u2013Prod version - 0001
Material u2013 A --- sale order u2013 666002 u2013 prod version - 0002
How to map the above scenario?
Thanks in advance.
Regards,
Vimal

In our scenario we have two production versions and also we are in MTO strategy. While creating the sales order is there any option to select the production version (i.e.) before planning for that corresponding sales order I have to choose the production versions.
If the Production version selection is based on Lot size means No problem.
If both the Production version is same lot size, system will select the first PV only in MRP
In STD SAP, we can't Give Production Version in sale order level,
If you want after MRP run , U can assign Production version in plan order or in production order Manually

Easy cost planning in Project & sales pricing

Dear All
When i was trying to create easy cost planning from project, I am uable to get the costing variant. I have done basic settings.But the same is not working properly
Kindly advise me how do i do this?
I need to create easy cost planning from project and from project i need to create salespricing through DP91. I have assigned DIP profile in project profile.
Please advise
Regards
Deepu Pillai

Hi,
Yes, that is the key that determines how a cost estimate is performed and valuated.
Depending on the object being costed, either the functions of either unit costing or product costing can be used.To calculate the costs of producing a material, you create a product cost estimate with or without a quantity structure
In a cost estimate with a quantity structure, the costing variant determines the following:
1. Which dates are valid for the cost estimate itself and for exploding and valuating the quantity
structure.
2. How the BOMs and routings are selected to create the quantity structure
3. Which prices are selected to valuate the quantity structure
4. How overhead is calculated
You create a unit cost estimate to cost the following objects:
1.Materials (cost estimate without quantity structure)
2.Materials (additive cost estimate)
3.Production orders in Controlling
4.Internal orders
5.WBS elements
6.Base planning objects
7.Cost object IDs
8.Sales documents
In unit costing, the costing variant determines which prices are selected to valuate the individual costing items and how overhead is calculated.
Costing variants are also used to calculate costs for Production orders,Networks,Maintenance orders,
Run schedule headers,Process orders,Sales document items,Appropriation requests,Ad hoc cost estimates.
A costing variant is linked to the control parameters like Costing type,Valuation variant,
Date control (in costing with and without quantity structure).
For config of Costing Variant,
Go to SPRO- Project system-Costs-Planned Costs-Costing-Define Costing Variants
Hope this helps.
Regards
Tushar

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?
Product 1 Inspection Plan
Salmonella $70
EColi $59
Coliform $25
Yeast/Mold $46
Thank you!

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

Production cost for product preference dermination

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?
Thanks,
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)
Regards,
Ryan

Production costs for material with price control V

Dear all,
Can anyone pls tell me, how will the costing occur for a material produced in-house and having price control 'V' ? I am not able to see the target costs.
Also kindly tell me the settings to be done in CO, like target cost version, valuation variant, costing variant, etc.
Thank you,
Shrenik

Rather than giving my own versions I have compiled here SAP inputs. Pl let me know if you require any clarifications:
Costing variant has the following components:
Define Costing Types
Define Valuation Variants
Define Date Control
Define Quantity Structure Control
Define Transfer Strategy
Define Reference Variants
Costing type:
In the costing type, you define the purpose of a material cost estimate by specifying, for example, which field in the material master record the costing results can be transferred to:
Update Cost Estimate
Standard price Standard cost estimate (01)
Tax-based price Inventory cost estimate
Commercial price Inventory cost estimate
Price other than std price Modified standard cost estimate or
current cost estimate
No update Any cost estimate
Define Valuation Variants:
Define Valuation Variants
Here you create a valuation variant containing the parameters required for valuation of a cost estimate.
You also specify which costing sheet should be used to calculate overhead.
Valuation Strategies
Material valuation
Here you define the sequence in which the system searches for prices from the accounting view or costing view of the material master record to valuate materials. You can also access prices from purchasing info records and condition types.
For material cost estimates, you also specify whether additive costs can be added to the selected price.
With configurable/configured material components and with procurement alternatives, the sequence defined here is ignored if the strategy "price from purchasing info record" was selected, in which case that strategy is always executed first. For more information, refer to the SAP Library in the component Product Cost Planning under Raw Material Costing or Mixed Costing.
Activity Types / Processes
Here you define the sequence in which the system searches for prices in activity type planning or actual activity price calculation in Cost Center Accounting or Activity-Based Costing to valuate the utilized activity types and business processes.
You also specify which plan/actual version is used.
Subcontracting
Here you define the sequence in which the system searches for prices in the purchasing info record. In purchasing, quota arrangements are used to create a mixed price for materials that are manufactured with external vendors with parts provided by the customer. You can specify whether the quota of the individual vendors that are entered in the source list for the material to be processed should be determined through the planned quota arrangement or the actual quota arrangement.
External processing
Here you define the sequence in which the system searches for prices in the purchasing info record or routing operation for valuation of the external activities.
Strategy Sequence
You define the individual valuation methods for the valuation variant as strategy sequences. For the valuation of the material components you define a strategy sequence that reads the fields of the material master record in a particular sequence such as:
1. Planned price 1
2. Standard price
3. Moving price
The first price that is not zero is used to valuate the material component.
Target versions:
Target cost versions are used in the following ways:
In variance calculation:
To control which variance (total variance, production variances or planning variance) is calculated
To valuate unplanned scrap( scrap variance)
Unplanned scrap is valuated in the period-end closing activities when the variances are calculated. You can specify in a valuation variant for WIP and scrap which cost estimate you want to use to calculate the target costs for the valuation of unplanned scrap. You assign the valuation variant to target cost version 0 if you want to include it in the valuation of scrap.
When you are using a cost object hierarchy with active distribution, you use the target cost version to control which cost estimate the system uses to calculate the target costs, which are used as the basis for determining equivalences for actual cost distribution.
The actual costs collected at the level of the hierarchy are distributed across the orders in accordance with these equivalences. This distribution is proportional to the target costs for the cost element under which the actual costs are written. Actual costs for material costs are distributed in proportion to the target costs for the origin group, such as for the material, if you have entered an origin group in the costing view of the material master record and have set the indicator Material origin, for example.
If no target costs were calculated under this cost element, enter a cost element group in the target cost version. The actual costs are distributed in proportion to the target costs for this cost element group. This cost element group should be complete. If costs were updated under a cost element that is not in this cost element group, no distribution is possible.
You can calculate equivalences on the basis of SAP standard target cost versions 0, 1 and 3.
The standard system supplies the following target cost versions:
Target cost version 0 ( total variance)
The amount of the total variance generates a posting in Financial Accounting during settlement.
For this version, select actual costs as the control costs and standard cost estimate as the target costs.
Target cost version 1 ( production variance)
For this version you choose actual costs as the control costs and planned costs as the target costs.
Target cost version 2( planning variance)
With target cost version 2, the costs from the preliminary order cost estimate are interpreted as control costs.
For this version, select planned costs as the control costs and current cost estimate as the target costs. You cannot calculate planning variances for the product cost collector.
Target cost version 3 (production variance of the period)
You compare the planned costs of the period calculated on the basis of an alternative material cost estimate (such as a modified standard cost estimate) with the actual costs of the period on the basis of the yield delivered to stock in the period.
The base quantity for variance calculation is the yield.
For this version, you choose the actual costs as the control costs and the alternative material cost estimate as the target costs. To determine the alternative material cost estimate, enter a costing variant and choose a costing version.
The target cost version specifies which data is to be compared. The target cost version also specifies which variance variant is used and therefore which variance catagories are calculated. You can define a different target cost version for each controlling area

ADDDITIVE COST FOR PRODUCT COST BY SALES ORDER SCENARIO.

Dear friends,
We are using costing for sales order & we have maintained the costing variant under the path IMG> Controlling> Product Cost Controlling> cost object controlling> Product cost by sales order >premliminary costing & order based costing>product costing for sales order costing>Costing variant for Product costing >Check costing variant for product costing.
Under this we have maintained the Costing variant, Now we need to have Additive cost. But didnt found the tab in the costing variant where as when we check in T.code OKKN which is a part of Product cost planning we can find the Additive cost tab.
How to run addtive costing run for Product cost by sales order scenario & please guide me with one example.
Or else is there any configuration where we can assign standard costing variant PPC1 instead of Costing variant SOC1 ( which is a costing variant of Product cost by sales order.
Please guide me
regards,
Sandeep

Hi Sandeep,
You may please try using Unit Costing for Sale Order.
It is over an above the sale order costing you have done. So in case you want to post any additional known cost, you may do the unit costing for the sale order after the sale order costing.
Trust this helps

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 profit center view ( 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 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 Costing in SAP Retail Solution

Hi experts
I have a question about product costing in SAP Retail (SAP ECC 6.0).
In material master data (Tr. MM43 - Tr. MM42) Product Costing view for Logistics:CD sheet is activated.
Although, for Logistics:Store sheet is not activated.
In customizing, we have tried to activate the Product Costing view for Logistics:Store sheet, but there no standard dynpro to use it. So, we have some doubts:
- Do we have to create customer (Z) dynpros in order to activate Product Costing view for Logistics:Store sheet?
- Does SAP allows Product Costing functionality in SAP Retail solution?
If both answers are YES, i have another doubt:
- In our business scenario, the store is supplied by the Distribution Center. So, does it make sense to run product costing for
a articles in a Store?
We think it makes sense to apply product costing functionality in Distribution center. In order to analyze deviations from
Standard costs to real costs. But we are not sure about Stores.
Does anyone have experience in customizing product costing functionality for a SAP retail in a Logistics:Store?
Thank you for your time
Regards

hi
Product hierarchy in R3 is termed as Merchandise category hierarchy in SAP IS retail
But in R3 Product hierarchy is not used much but Merchandise category hierarchy that is termed as MCH is a basic thing reqd for defining master data that is article master data which is nothing but material master in R3
As i said Product hierarchy levels are available in R3 also but not much used
Merchandise category hierarchy levels is most commonly used in SAP IS retail
What we call material group in R3 is same as Merchandise category in SAP IS retail and material in R3 is article in Retail
Merchandise category hierarchy levels
Say a Retail mall has merchandise items
Under merchandise there are 2 divisions Food and non food
Under nonfood say there are 2 divisions say hardware and apparel
Under apparel there 2 divisions say Mens wear and ladies wear
Under mens wear you have t shirts,shirts and pants etc
Here t shirts,shirts and pants etc are individual articles
Menswear and ladies wear are material groups
Hardware and apparel are merchandise hierarchy level 1
Food and non food merchandise hierarchy level 2
Retail mall is merchandise hierarchy level 3
like that hierarchy levels are commonly defined and used as a must to have efficient master data in SAP retail and the maximum no of hierarchy to have ideally is 6 apart from Merchandise category
In our example we have defined three levels
The same functionality can be used as product hierarchy in R3 also but doesnt been put in to use much
In Retail the no of articles a store is going to manage to be will be huge hence this sort of seggregation is needed there must
For more clarity try to post this in retail forum(Trading industries)
Regards
Raja

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

Actual costs for laboratory exams / Material Ledger

Hi Experts
I have a doubt for actual cost scenario for laboratory industry.
My background is for product cost for consumer goods, specially food companies, so this is a new segment for me.
This laboratory has baseline version, no service/production order, it means all material consumption goes to cost center and they use activities to send costs from cost center to cost center.
They have BOM for all exams (finished product). They only run CK40N for standard costs but they don't have actual cost (material ledger - CKMLCP) implemented.
This is the issue: they want actual cost for every exam in the way we have for consumer goods industry.
So they can analyse profitability for product (exam) x customers.
I wounder if the same industry actual cost scenario can be applied to this business segment or if there is a special SAP solution for this segment.
The main issue is the stock, there is no stock, it´s service. I believe we could change the account in BSX key (OBYC) for some P&L accounts but I´d like your opinion/experience.
I hope you help me to clarify these doubts
Thanks in advance.

Dear Rupesh,
I don't think so there will be any std.report in PS module to show plan vs actual cost of material component.
For looking plan vs actual cost in PS having many std reports but they don't show for material component.
I think for this you need to develop a Z report which will show Plan vs Actual cost of material component.
In CN52N report (Component overview report) you can add two fields one is for plan cost & other for actual cost.This can be one of possibilty you can try.Otherwise develop a new Z report for the same.
For this you need to take yr abaper's help.
Regard's
Sandeep

Product costing in Sea food industries

Hello Gurus,
Please let me know is there any difference to implement product costing for Sea food industries.if any one have specific material
please share with me.
Thanks

Hi,
1.U run the Std Cost estimate for the materials/orders for a given period. Once u mark and release, this Std Cost Estimate will become the std cost.
2. Repetitive Manufacturing indicates, u produce material in more or less in std procedure in terms of proceeses, material components and other activities over a period of time. Material Costing by period may be better option for these industries...
Eg: Chemical Industries, Auto Component Industries etc...
Regards
Sudhakar Reddy

About product cost by period

HI all
I have some questions
can u caculate product cost by period,however in the normal production order enviroment ,do not use the process order type like "rm01"
how to config?

Hi,
there are two process of the REM( product cost for period ) and discrete are different, In rem we use the product cast collector with the production version and this product cost collector will be the cost object, were as in discrete we use the production order as the cost object.
in rem we use product cost collector as it is ... easy and there will not be much of change in the bom and routing is also simple, and also to be noted the product will not chnage over a long period of time. there is no defined lot size as constant flow of production line.
more over we use black fleshing - automatic movement of good issue and receipt.
hope this is clear assign points.
Edited by: krishna singareddy on Mar 10, 2008 10:17 PM

Production cost for MTO in Sales Pricing

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