REM product costing

Hi,
Would you help me out in product costing of REM scenario where HALB is given for subcontracting.Here I want to know in standard cost estimation how the cost of each activity type is incurred.
Regds,
sats.

Dear Dilip,
Whether its Discrete or REM scenario,for Semi-finished products(Sub-contracted) generally BOM is maintained along with the BOM
components and along with the Source List & Info record for sub-contracting process.
So while doing the Cost rollup for the Finished product , the standard cost for the HALB is automatically calculated.
So the price of that sub-contracted product = Raw materials cost (as per the planned price given in costing 2 view) + sub-contracting
charges (activity cost for doing the activity).
The cost calculation is done using CK40N or using CK11N+CK24.
Revert back in case of any more queries.
Regards
Mangalraj.S

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Rem product cost collector

Hai gurus,
I have one doubt in REM product cost calculation.
1) when I am running PCC for REM I met with following error as - Routing does not match with selection
ID 01.
How to correct the error.
Regards,
sekar chand.

Dear Sekar,
1.While creating product cost collector,use Production version as the controlling level.
2.Check RM01 is the order type and ensure your production version is without any errors.
3.Ensure you have selected rate routing in the task list type in the production version.
4.Check what routing selection id is assigned in MRP parameters in OPPQ and also in the scheduling
parameters in OPU5 for the order type PE.
5,Your routing selection id should be a one which gives the first priority to the rate routing R.
Now check and come back with your further queries.
Regards
Mangalraj.S

REM Product cost collectors and Production version

Hi All,
Can some one pls let me know
What are the product cost collectors in REM and how to create the product cost collectors ?
What is the production version and the difference between production version and controlling version?
Thanks & Regards,
Bujji

Dear Bujji,
A product cost collector is a cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a material. It can be created in txn KKF6N.
[Product Cosr Collector|http://help.sap.com/saphelp_47x200/helpdata/EN/08/77ba810a1611d3a6b900104b55d538/frameset.htm]
[Product Cost Collectors: Collective Entry for Repetitive Manufacturing |http://help.sap.com/saphelp_47x200/helpdata/EN/08/77ba810a1611d3a6b900104b55d538/frameset.htm]
A production version determines the various production techniques that can be used to produce a material. It defines the following information:
Alternative BOM for a BOM explosion
Task list type, task list group, and group counter for assignment to task lists
Lot-size restrictions and period of validity
A material can have one or more production versions.
It can be defined in the Material Master (txn MM02) in one of the following views:
MRP 4
Work Scheduling
Costing 1
The costing version is a different issue. It is a costing parameter and is used to save several cost estimates for the same material, with the same costing variant and the same costing date (e.g. in oder to cost the material several times with minor changes without creating new costing variants).
BR,
Antje

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

Error while creating product cost collector in REM ?

HI, all SAP expert,
I have to run repetitive manufacturing .
I create work center of category production line and use in rate routing of semifinished material.
In mm02 -- mrp 4 view of semifinished material , i select rem profile , production version.
Now I create product cost collector ( t-code kkf6n) for semi. material by giving order type (yrem), production version after enter it shows error
Error in number management (notify your system administrator)
in help it shows
Error in number management (notify your system administrator)
Message no. KO162
Diagnosis
A system error occurred in the number management.
Procedure
Please contact your systems analyst or the SAP hotline.
Edited by: Nitin Nerkar on Sep 30, 2009 12:16 PM

Dear Nitin,
Check whether is the number range maintained properly for the order type RM01,check the config setting in T Code
KOT2_PKOSA.
This is related to CO Module.
Check and revert back.
Regards
Mangalraj.S

Use of Product cost collector in REM

Hi All,
I am new to PP module, I got some doubts when working on costing of the product.
1. In REM scenario why do we need an extra step of creating product cost collector ??
2. when a product is produced will the prod cost collector is used for both debiting(raw and semi) and crediting(finished prod) ?

Dear Reddy,
1.Product cost collector is the cost collecting object for a period based production or in a REM - repetitive manufacturing
scenario.
2.Without having any product cost collector you cannot carryout production confirmation(assembly backflush) for a product.
3.So for all the products for which production confirmation will be declared requires a individual product cost collector.
4.Prior to this you require a production version for the material.
5.Production version and a product cost collector is also the master data for a REM scenario.
Now check and revert back.
Regards
Mangalraj.S

Reports for product costing in REM

Hi All,
Kindly give a list of various std. reports & table names for costing in REM.
regards,
Mohit

Hi,
MASTER DATA C223 PRODUCTION VERTION
PRODUCT COST PLANNING
COSTING RUN CKMATSEL CREATE
SELECTION LIST CKMATCON Edit
 CK40N EDIT COSTING RUN
its easy to find the Tcodes & Tables in R/3
for any Tcodes: Goto Tcode SE16 and select TSTC press enter and execute or just enter any first letter in the Transaction code Field and execute it will list all the tcodes starting with that letter.
Tables
Goto any transaction and press F1 on the field and click Technical info you get the table name, program name, everything.
Regards
Rehman
Reward Points if Useful

Automatic product cost collector in REM

Hi,
Could someone please let me know if there exists any functional module / BAPI to create product cost collector auomatically in background ?
Many thanks
Regards
Seshu

Hi Satish,
Thanks for the response,
I have come across a functional module KK_F_PKOSA_CREATE which creates product cost collector.
Have you / someone in the forum come across this functional module ?
Also please let me know if we can schedule KKF6M in background for all REM materials and plants to create product cost collector ?
Look forward for the response
Thanks
Regards
Seshu

How to see materials which donot comes under product cost collector

hello every body,
can any one help me in finding materials which donot comes under product cost collector.
thanks for all the people who are supporting me
regards,
Bh.krishna mohan

Dear Krishna,
1.Usally the product cost collectors will be maintained for the materials which are executed using a REM scenario.
2.Check in table MARC for the materials for which REM profile does not exists(means this field should be empty) for a given plant.
3.After executing download this and if needed pass it to MARA table to get the FERT and HALB materials.
4.So only those materials for which REM profile is empty ,the product cost collector does not exists.
Check and revert with your queries.
Regards
S Mangalraj

Service Product Cost & Profitability

Dear Experts,
I am having the following situation.
1) My Service product is relevant for cost but not for CATS entry.
2) Can I maintain a standard cost related to a service product?
I evaluated the option of replicating the service product to R/3 and then maintain an activity corresponding to a service product. This activity will have a cost attached.
But when the service order is saved , it creates an internal order in R/3 but this internal order does not have any information about the service product.
How do I post the revenue and cost for my service order?
Regards,
Ambarish

Dear Kandan,
1.Product Cost Collector is one of the master data in REM.
2.After material master,BOM,Rate routing,Production versions are created for the HALB & FERT item's,then the next step will be
product cost collector creation using KKF6N.
3.The controlling level for product cost collector will be Production version.
4.For each Production version an individual Product Cost Collector can be created.
5.Without a product cost collector you cannot carryout backflushing for an Inhouse manufactured items.
6.After backflushing,all the cost for producing the product will be saved(getting accumulated) in this product cost collector.
I hope this will clear all your doubts.
Regards
Mangalraj.S

Product cost by period

hello gurus,
Can anyone please tell me the what are the configuration is required to Product cost by period
thanks
rihana

Dear Rihana,
In my understanding product cost by period will be used in a REM scenario(Repetitive manufacturing).
The product cost collector serves as the cost collecting object and for each Semifinished or finished product for which
confirmation(backflush through T Code MFBF) are made a product cost collector should exist.
Product cost collector will be generally created for Order type RM01 and number ranges has to be defined.
Each product cost collector has a number and using the no,the variance and the cost will be settled periodically.
Product cost collectors will be created using T Code KKF6N or KKF6M and the preliminary cost estimate can be done through
MF30.
Regards
Mangalraj.S

Product cost by period process

Hello
Gurus,
Can anybody please explain the process of product cost by period, eventhough i searched but i did'nt get clear picture.
Please help in this because i have interview
Thanks

Dear Kavya,
1.Product cost by period is used in a REM scenario - Repetitive Manufacturing.
2.Here a product cost collector is created for the material + each production version combination.
3.All the costs(activity posting,Goods issue,goods receipt) are captured in the product cost collector of the respetive material.
4.Each product cost collector has an order number and based on this variance calcualtion and settlement can be done according
to the business scenario.
5.This type of costing can be used for a continous production like cement industry,steel manufacturing(dealing with furnace).
6.Here along with the costing part there are certain other shop floor control parameters to choose or select this scenario or a
Discrete scenario(where Production order's are used).
7.In a REM scenario confirmation will be made against a planned order or even with out any planned order.
Regards
S Mangalraj

Essence of product cost collectors

In REM
what is essence of product cost collector (KKF6n), {As I understand production cost collectors
are cost carrying elements}, but needs to have more insights like how it captures
production costs ( i.e through activities, price maintained in accounting view....)
Does it make any difference if product cost collector is executed before MRP run, or it has
to be executed only after MRP run

Dear Eshwer,
1.Product Cost collector is one of the master data in REM scenario.
2.This product cost collector is no where related to MRP.
3.Product Cost collector is used as a cost object in REM scenario,which means all the cost will be
booked under this product cost collector for that material.
4.Whatever the confirmations that are done in MFBF or MF41 or MF42N,the cost will get debited or
credited accordingly for that material and the impact will be seen in the product cost collector.
5.This product cost collector will be having an order number which will be used for order settlement and
variance calculation.
6.For creating a product cost collector you will require a production version.
7.so whenever you do an assembly or activity or component backflush,the cost will be booked under
this product cost collector.
8.So as such there's no relation between MRP and a product cost collector.
I hope this pints will help you to some extent.
Revert back with your further queries.
Regards
Mangalraj.S

Difference between three types of product costs

Hi,
SAP Masters
can any bode explain the what is the difference between product cost by period, product cost by sale order and the third one is there and also please esplain the master recipe

Dear Kavya,
__1.Product Cost by Period:__
Product cost Collector:
1.Product Cost collector is one of the master data in REM scenario.
2.Product Cost collector is used as a cost object in REM scenario,which means all the cost will be booked under this product
cost collector for that material which is nothing but period based costing.
3.Whatever the confirmations that are done in MFBF or MF41 or MF42N,the cost will get debited or credited accordingly for that
material and the impact will be seen in the product cost collector.
4.This product cost collector will be having an order number which will be used for order settlement and variance calculation.
5.For creating a product cost collector you will require a production version.
6.so whenever you do an assembly or activity or component backflush,the cost will be booked under this product cost collector.
2.Master Recipe:
This comes under PP-PI,where Process order's are used for production.
The master recipe is used for the manufacture of products or for rendering services.
Structure
A master recipe consists of a header and several operations, each of which is carried out at a primary resource. An operation
is subdivided into phases.
A master recipe contains process control data that can be stored in the following way:
· in the form of characteristic-based process instructions, which you define in the operation overview for the phases.
· in the form of XSteps, that you maintain in the XStep editor ( XSteps).
http://help.sap.com/saphelperp60_sp/helpdata/en/05/603bc6462311d182b50000e829fbfe/frameset.htm_
Revert back with your further queries.
Regards
Mangalraj.S

Product costing related querry

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.

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

REM product costing

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