Scrap costs in production

Hello,
Is there any possibility to post scrap costs during production against the standard costs until the scrap occured without using a special material for making the scrap posting?
For example:
Standard cost production: 1000
No of operations: 4
St cost Op 1: 300
St cost Op 2: 100
St cost Op 3: 400
St cost Op 4: 200
Suppose that scrap occurs at Op 2. In the confirmation we confirm the scrap and want to have the costs posted in FI and CO at 400 per piece.
Which settings do we have to maintain in order to make this possible (without creating new materials).
Thank you for the information in advance
Regards,
Johan

If you do not want to consider the scrap qty. in operations but want to consider it only for costing purpose, then create a costing BOM i.e. usage 6. In this BOM you can maintain the scrap. Also ensure the costing variant which you're using has a priority of costing bom over say production bom or universal bom.
Discuss this with your costing person as well.

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What are options for applying non-inventory costs to production orders?

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Scrap costs in Standard Costs without adding scrap factor in BOM

Running one part number, multiple operations in factory.
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Scrap cost in porduction order

Hi All,
We want to set up a scenario in order to capture scrap cost seperately in production order.
Currently when we declare scrap of finished product while confirmation, then this scrap is reflected on material account in prodction order cost analysis. We want to capture this scrap cost seperately in a different segment (under seperate cost element) in production order cost analysis view.
plesae suggest the possibilities.
Regards,
Rohit

Dear
For Doing this Scenario scrap costing will happen in BOM item level Details u ll find assembly scrap operation scrap so on
please follow this link
[http://help.sap.com/saphelp_470/helpdata/EN/1f/9e3fc69eff11d29f4f080009b0db33/frameset.htm]
With Regards
Pushpalas
Edited by: pushpalas on Jan 9, 2012 10:19 AM

Scrap Confirmed in Production Order

Hi,
I have a doubt.
While confirming the production order, the PP fellow confirms scrap say 2 in 100 production order quantity.
Now what happens to this quantity. Where can I track this in Material Quantity.
Further, what happens to the cost relevant to this material. Where does it get posted.
Presently, I am not able to trace the cost related to the scrap.
Please suggest

Hi!
if scrap( finished product scrap) is given in production order , the scrap cost will be accrued to production order and shown as variance.
For example:
You have planned for 5 finished products and scrap is 2 finished products.
By assuming 5 finished products, you have issued raw material quantity( 1 RM for 1 FP) and activity quantity to be performed.
then Goods rceipt will be : 3 * Rs. 100 = Rs.300
Goods issue will be : 15 Rs 100 = Rs.500
Activity cost : = Rs.50
So your total input cost is: Rs.550
and goods receipt is Rs.300
so Variance will be include extra raw material consumed i.e 2*Rs.100=Rs.200 ( note here i have taken both RM and FP at same cost).
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Hi ,
Please refer to the following Link
http://help.sap.com/saphelp_46c/helpdata/en/7e/cb84ab43a311d189ee0000e81ddfac/content.htm

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Cost of Production BOM in Prodcution Order

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Resolved

Actual cost of Production Order settled to Fixed Assets

Dear all,
My client is doing in-house production of moulds (internal order suggestion is not accepted by the client) for which
they have the following
1. BOM
2. Machine hour
3. labour
4. overhead etc
5.plan value
6. actual value
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If yes
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1.production order created
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3. allocation structure
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5 define asset in settlement rule
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regards
elango

Hi,
Although i am not CO expert , please check with your FICO consultant who are expert before make the final call.
During settlement to a G/L account or a fixed asset, the system ignores additional account assignments that were manually specified in the distribution rule.
Based on what i know .
you can stipulate that settlement may be made to cost centers and orders, but not to fixed assets.
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Allocation Structure
In the settlement structure you combine the primary and secondary cost elements into groups, in which debits are then posted to the sender objects. For each group, you specify whether (for settlement to a given receiver type) settlement is performed
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Hi,
Sudhakar is completely right in his comments. But, I would not just accept that actual costing is not active, so you have to find a solution without it. Your requirement is a good reason to activate actal costing, and calls for it.
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[http://help.sap.com/saphelp_erp60_sp/helpdata/en/a5/320e28d56c11d295c200a0c930328a/frameset.htm]
Calculate periodical actual prodcut costs at period end
[http://help.sap.com/saphelp_erp60_sp/helpdata/en/ec/f835d7f08311d185810000e8a4bacc/frameset.htm]
Revalue CO-PA at actual costs with KE27
[http://help.sap.com/saphelp_erp60_sp/helpdata/en/f5/0f0739edfcb03ae10000000a11402f/frameset.htm]
[http://help.sap.com/saphelp_erp60_sp/helpdata/en/7a/4c39be4a0111d1894c0000e829fbbd/frameset.htm]
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best regards,
Udo

Table of Actual cost of production

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Madhu.

Dear Madhu,
Table COEP will help you to check the actual cost.
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To see the cost of production order after settlement to header material

hello guys,
   In make to stock,we settle the total cost of prodution order on header material,right(if we keep as the default rule( distribution rule in order type)?
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Dear,
There is a little missunderstanding in your thought.
If the material of price control S, When you do the GR, the STD cost of material is deducted from production order cost, then when you settle the production order, the variance is settled to variance account/PD account. hence the production order cost balance is zero.
Example- Production order cost is 60000
After GR the production order cost balance is 60000-50000 = 10000.
After settlement production order cost balance is zero.
Now your question is where can i see the production order cost?
You can see the production order cost in the production order itself.
In the production order...cost disply option just filter the origin with test settlement and GR.
Then total up the cost, then you can see the cost as 60000.
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Cost of production

where we manintain COST OF PRODUCTION TYPE in SPRO.i want to change year in cost of production type

Sanjay,
Your question is not clear. There are two type of costing types 1) Production-Planned cost and 2) Production- Actual cost.
Both you can maintain in transaction OPMI.
If any more question then revert us with details.
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TAJUDDIN

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
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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.
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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
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Br. Ajay M

Scrap costs in production

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