Regarding manufacturing cost of BOM

Hi Friends,
If we wants to calculate manufacturing cost , how to calculate it from BOM. Please guide me.
Regards,
Mahesh

Calculating manufacturing cost based on quantity structure (BOM and Routing) is done in SAP in CO (PC). First there are some settings that need to be maintained (like costing variant), then you run a cost estimate run (transaction CK11N).

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Manufacturing cost per unit

Hi.. Experts.
My client is in producing Perfumes (Process manufacturing- chemical Industry) and Production wants to know the cost of per unit manufactured in the plant/plants and explains this in form of the following points.
To arrive at manufacturing cost per unit we need to know
1) Per Unit cost of materials inclusive of transport (Raw & packaging material)
2) Conversion cost per unit which will include
a) Energy & other utilities expenses
b) Labor cost per unit (days wages of all in production / units produced)
c) Cost of quality--- including testing outside and chemicals used for testing in plant plus salary per day of people engaged in testing in q.c department.
d) Cost of administration-- employees engaged as well as office expenses like telephone,transport
Please consult me how to configure the above requirements in sap business one.
Regards
Rakhi

hi raakshit
The first point is where would u like to capture these records if its at the time of production order the it is easy
u can create UDF for all related items u have mentioned and fill the value manually and then in the production order either u can write the value manually or u can run A FMS which will sum up all the value and also the value of BoM ITEMS and would reflect in the total field
or if u wana add it in teh sales order i.e u want to show it at the time of sales then u can add all the items in the freight setup
Hope this would suffice your concern.
Regards,
Manish
Edited by: manish.malik on Jul 22, 2010 2:35 PM

Cost From BOM, WorkCentre, Routing

Hai Techies,
Could you please help me with some inputs for my query related to capturing cost from BOM, Workcentre, routing. To capture the cost should it always require to have an production order?
My doubt is mainly with respect to new product where they are creating a new product and during the new product implementation. So for the new product there wont be any production orders(correct me if im wrong). In that case how to compute the cost of the product.
Is there any possibilities.
Thanking you in advance.
Regards,
Gopalakrishnan.S

Hi,
In SAP you need to have either production order ( Discrete ) or planned order ( REM) in place to capture the cost.
cost are captured when you book confirmation in Co11n or MFBF.
From PP side you need to maintined OPL8 custmizing for planned and actual costing variant. These costing varaints are created in CO.
In BOM you need to mainating stock items and in staus / langauage text view maintin indicator , item relevent for costing.
In Routing operations you need to maintin contorl key which allows costing as well as in detailed operation view maintain indicator, costing allowed for operations.
Work center has cost center attched to it. It also has different costing formulas which helps you to claculate activity costs of individual operations to which work center is attached.
Regards,
Santosh Sarda

Product Costing - CK11N BOM component wrong quantity

Hi,
I have a question regarding Material Cost Estimates. I have a material (Product A) which has a BOM header Qty of 524. One of the Components (Product B) has a Qty of 560. When I run the Cost Estimate for Product A, the component costing list doubles the quantity of Product B, and therefore doubles the cost (this is when I change the report Qty to 524).
The Costing Lot Size on the product A is 1. When I change this Costing Lot Size on the material master to 100 and rerun the CK11N, the Component Qty and Cost are correct.
Is there some rule that I should be following when it comes to Costing Lot Sizes?
Thanks for any help.
Daniel.

TO MY KNOWLEDGE,
COSTING LOT SIZE IN MATERIAL MASTER, FOR WHICH YOU ARE DOING STD COST ESTIMATE,
COSTING LOT SIZE IN MATERIAL MASTERS, OF BOM COMPONENTS,
BASE QUANTITY IN BOM,
BASE QUANTITY IN ROUTING ,
ALL THE ABOVE SHOULD BE IDENTICAL.

Costed Multilvel BOM for more than one material

CK86 report shows costed multilvel BOM for one material.Is there any report whereby I can see costed mulitilevel BOM for more than one material
Regards
Paresh

Dear Paresh,
I dont think there is some standard report to meet this requirement,also please check whether this link can help you,
Re: Product cost report
Re: Report for Cost of Multiple products with Multilevel BOM explosion
Regards
Mangalraj.S

Tooling manufacturing cost calculation

Hi, how to calculate the tool manufacturing cost? is there any relation with prt's? pls describe the steps.

yadav ,
In many bussiness its required to produce , tools inside the plant and as this are not the salable product , cost is assigend to internal cost centres.
For this kind of production you can define new order tyep which will be solely used for this purpose only.
It can include all Jigs, Fixtures, tools etc.
material type you can decide as per your bussiness process.
and settlement of this new production order you can plan with the help of your CO consultant.
Hope it Helps you
regards
Ritesh

Two Different Project to handle Project Manufacturing Cost ?

Hello Guys,
Can any One Help me on this Question,
Sales Company - > Attaching their Project/Task to Sales Order.(Different OU,LE,Set of Books).
Manufacturing Plant - > Imports the Sales-Order of Sales Company(Different OU,LE,Set of Books).
Current Flow - > Sales Company Project/Task -> Planning -> Work Orders ->Transfer Cost to Projects.
And Manufacturing Unit will create their Internal Project.
Questions :-
Now Manufacturing Unit wants to know their Manufacturing Cost(Material Cost,Resource Cost and Overhead Cost) ?How to track cost for Manufacturing Plant ?
How we can transfer the cost from Sales Company Project to Manufacturing Project ?
Do we need to Transfer from Cost from Sales Company OU to Manufacturing Internal Project OU ?
Is their any other way to do the setups ?
Iam only concened about How to use Sales Company Project and Manufacturing Internal Project ?
Regards,
Satish

Hi Dina,
We are in a process to implement flow of information between Sales Order from two different LEs.
Our Order originates from Sales Service Org(Project Owning Org) ----> Trading Hub------- > MFG Plant. The equipment is shipped directly to customer.
We would like to know more on the solution which you have explained : -
"Manufacturing plant may use the same project as setup by the sales company. They could setup the transfer price rules for cross charge. Then run the Inter-company billing process which generates a sales invoice in the manufacturing OU AR, and interface that as internal supplier invoice to the AP of the Sales OU. To implement the Inter-company billing you need to follow the required setups in both OUs."
We have been following steps and found not working
(1) Created Project under Sales & Service Operating Unit (OU)
(2) Created Sales Order against this Project in Sales & Service OU, the shipping org on this sales order is MFG which belongs to different entity & OU.
(3) Pick and Ship from shipping org MFG OU
(4) Run Cost Collection Manager for Inventory Cost Transfer for the Shipping Org MFG
(5) There is no transaction pending for this cost under Sales & Service OU, however this is pending under MFG OU (shipping Org)
(6) Ran the "Transaction Import" program from MFG OU and the transaction got rejected as the Project belongs to Sales & Service OU.
Thanks,
Sachin Salvi

Cost of BOM

Hi
How can I easily calculate the cost of a BOM?
I create a BOM with several items. I now want to know what the cost of all the items of the BOM, the cost of the product is. All items used are in stock and have an item cost (average) in master data.
Thanks
Franz

Hi Franz,
If you are using Standard Cost as default inventory valuation method, your itemcost price list will be grayed out because it is based on system calculation. Item Cost will become a variable so that you may find BOM could be affected by all different kinds of inventory transactions. If you need a clear picture of the cost for BOM, you may need to define all component items' default price list not to be itemcost.
Thanks,
Gordon

Best practice for implementing Manufacturing Cost Planning ( MCP)

is there any best practice for implementing Manufacturing Cost Planning ( MCP) using BI-IP?

Hi:
Both options are viable. If you reverse posting in FB50 then FI GL account postings will also be reversed and along with cost center postings. Hence here advantage is that cost center reversal will be with referenced to the original document with which wrong posting were made. Disadvantage here is that you will to post the entry again in FB50 . In KB11N you will simply transfer cost center amount from wrong to new one that should be in place of it but here you will have no reference . I personally think reversing posting through FB50 is viable options , reverse postings can be seen in KSB1 as well against that cost center.
Regards

How to match manufacturing costs with milestone billings

How to match manufacturing costs with milestone billings

Hi
Inventory and WIP costs of Project Manufacturing are interfaced to Oracle Projects using the program - Cost Collector. I assume this same program will pick the EAM costs as well. Cost Collector should be run for the inventory organization after transactions were costed by Cost Manager. The transactions will be interfaced to PA Transaction Interface table. From there rub PRC: Transaction Import process to bring them into PA as expenditure items.
Dina

Transaction code for change in cost of BOM component

Hi Gurus,
If BOM or any source materials has been updated in the system, the header material need to be re-costed. Is there any existing T-code to get the list of the materials , the changed might impact to.
Regards
Kaisar

Dear Kaisar,
There is no standard T code to meet this requirement wherein you get all the required details.
Only you have to identify and cost it using CK11N/CK40N.
If you are ECM - change numbers,you can identify the made changes by a customized report and then
you recost those materials alone.
Again its a very big customized development.
check and revert back.
Regards
Mangalraj.S

KKF6N - Preliminary cost estimate- BOM explosion

Dear All,
When I try to cost a product cost collector on a finished product/production version with MF30 or KKF6N, the BOM is not exploded as if all the components were raw material - despite the BOM is multilevel. I don't understand why. Maybe i miss something...
On the other hand, when I cost the same finished product with CK11N, the BOM is exploded as expected.
The settings on cost variants and valuation variants used for cost collector and material cost estimate are similar.
Thank you very much if you can help !
Chris

Hi,
                                                                                The difference between CK13N / CK11N and KKF6N exists due to the method in which both of them calculate costs.
CK11N performs 'multi level costing' which means it considers the prices and the corresponding quantity structure for materials across the entire hierarchy of the BOM for the material and re-calculates it every time it is run based on current settings.
KKF6N performs 'single level' costing which means it considers only the price data for the input material and its immediate sub-components. It then displays the price according to the valuation strategy used in the costing variant.
CK11N also uses the valuation strategy, but the price is estimated based on a calculation of prices across the entire hierarchy of the BOM for the material also factoring in the quantity structure at the time the material is costed.
This is the reason why there is a difference in the price shown in CK13N and KKF6N, but it is the way the system is designed to work.
Kind Regards,
MLM

How to roll up costs in BOM

Folks
Can anyone please tell how to go down in Bill of Materials and calculate the components qty.
I could figure out all the component materials for a finished good, but I cannot calculate each components qty to make the final finished good.
I want the solution in either PL/SQL or SQL.
Please help me,
Regards
Srikanth
[email protected]
null

BOM is an Oracle Discrete Manufacturing Product. In Oracle Process Manufacturing, the Module is known as "Formulas".
There is standard functionality in OPM for performing cost rollups that are described in the OPM Cost Management Users guide. Please contact me directly if you need further assistance.

Apply Overhead to Cross Company Costing without BOM

Hi,
We are maintainin BOM's only in one plant and want to be able to cost materials in all the plants using costing run. The problem in doing so is we have the prices at different plants marked up by a specific percent when compared to the plant which mainatins the BOM's. It is possible to bring in the cost estimate of the material from the plant which has BOM's using the cross company costing and using special procurement keys but it is not possible to add an overhead to this cost estimate since the overhead is not added to this cost estimate. Please suggest an alternative approach if it is possible to add an overhead to a cost estimate from an another plant. Any help in this matter is greatly appreciated.
Thanks,

If I am understanding you, a manufactured material cost 10.00 in the mfg plant; you want to uplift it by 30% so in second plant it has a cost of 13.00
To do this, we turned off Cross plant costing and used Profit center transfer pricing. By creating overhead groups for shipping plant and pricing them in conditions (trans VK19) based on "from" plant "to" plant.
One draw back - the entire cost in the receiving plant is a "material" component Labor and overhead are not broken out.
The other issue, for you, is that a consultant and the SD Pricing guru did the configutation, created new key combination to include overhead group, so I can not explain in detail how it was done. I do not think that any user exist is involved.
Perhaps this give you hope.
Althea

Cost of Manufacture Cost from CK11N

Hi All
where can I get material cost estimate price for costing varient PPC3.
I check all the tables KEKO ,CKIS AND KEPH
but did not find the cost of goods manufactured "Total costs" in that table could you tell me which field it is ?
Eg CK11N - Enter the material press execute twice and you will see the costs component view how can I get that price and from which field
regards
Piroz

Hi Piroz
i have the same requirement which u have explained.
i need the final cost estimate value of the material, when i give MATNR as input.
if u got the required solution for this issue, can u please post it for me.
i gonna give u the points as soon as i get the solution from u.........
thanx in advance
Shyam

Regarding manufacturing cost of BOM

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