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

Similar Messages

Product Costing & Profitability Analysis

Hi All...
Can anyone lemme know how to configure product costing & profitabibility analysis...?????
Thanks in advance...
help.sap.com

Hi
Look at the following sites:
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/COPA/COPA.pdf
http://www.sap-img.com/financial/simple-overview-of-product-costing.htm
regards
Meenakshi

Can product costing be used in service industry?

where a material master is being maintained (type DIEN) for services provided, can product costing be used for services? what pre-requisites are essential to implement product costing?

yep, that I assumed that was the category. I meant, What are you trying to do? Is this a webservices specific question or a question about how to use Sun Java Studio Enterprise and Web Service?? If this is a Web Services specific question, try posting to the Web Services forum.
http://forum.java.sun.com/forum.jspa?forumID=331
I searched this forum for postings related to your question but did not find much.

External Service Order PO in Product Costing

Hi,
We have Sales Order Costing process which is done on Sales Order level. During Sales order creation and save, costing is calculated automatically. Based on Sales Order MRP Run is generated and Production Order is made on the basis of Sales Order. We have requirement of External Service Purchase Order need to be flow in product costing. Already we have done external service order purchase order through production cost center and it has done GRN and vendor invoice. GRN value has flown to production cost center. next step I have doubt. In Costing variant under valuation variant - External Processing strategy sequence is done as "Net Purchase Order Price". What are the other settings are required ?
So I would request you, please guide me how external service order purchase Order can be shown to product costing ? If I want to show this external po value to costing sheet during sales order costing how it can be introduced ?
Best Regards.
Samrat Roy

Hi,
I am able to resolve this issue by myself.
Thanks,
Prithwiraj.

Allocation of cost from service cost center to production cost center

Dear sir ,
Will I use to distribute the cost from service department to production department and that cost centers also using for activity planing will get currect result in product costing ?

Hello,
Can you clarify what you want to do ?
Allocation of cost from service cost centers to production cost centers can be done with the help of Assessment / Distribution cycles and you can do a activity planning using the same costs as well. The steps for activity planning would be as under:
1. Create primary cost planning in the service and production cost centers (KP06)
2. Create activity planning in the production cost centers (KP26) without any rate
3. Run assessment / distribution cycles to transfer cost from the service cost centers to production cost centers (KSUB / KSVB), in case you are not transferring based on activity quantity then also do SKF planning in KP46
4. Run plan cost splitting in case you have more then one activity type (do config for splitting structure beforehand) (KSS4)
5. Calculate Plan price for the production cost center activity types (KSPI)
BR // SG

Material product cost and transport cost

Hi, all
my scenario,
Company Z Order 100 carton from Supplier A at $15/carton.
Company Z will born the transport cost ie per trip $500.
assumption one trip = 100 carton ($5 / carton / transport)
how can i treat the transport cost in SAP as actual cost per carton = $20 / carton.
please advice
many thanks

Hi
Product Costing is arriving at the Cost of Producing a particular material. For example
Raw Material 1 +
Raw Material 2 +
Overheads
Cost of Labour deployed +
Cost of Other over head like Electricity exp.
Overhead Cost
Overhead Cost like/expenses which are incurred in process of maufacturing or rendering services are Overheads. We can term labour & electricity in process of manufacturing as overheads. Overheads are normally flow into CO thru COst Objects (Cost Center, Internal Orders, Profitability segments)
Thanks
Colin Thomas

Product Costing and Labour Hours

Dear All
We have a basic process for product costing which follows the flow below:
0. Creation of material master which is costed (transaction MM01). If material master already exists for this material, this step is skipped;
1. Creation and release of CO production order to collect the costs of material production (KKF1);
2. Posting of actual costs to the CO production order created (goods issues, labour and services costs);
3. When production is completed, Overhead costs has to be calculated for this production order (KGI2);
4. Produced material delivery to stock has to be carried out (MB31);
5. CO production order has to be settled (KO88) and closed (KKF2).
We would like to start posting labour where the hours will be posted to a secondary cost element and included in the cost of the product. Can you please provide information on the steps to configure this.
Many thanks
PRG

Never mind

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
So far only material cost valuation of sales/billed materials are possible (which does not address concern)
As a result we have a gap and customer is unable to derive P&L by Plant from CO-PA.
Can you advise if there is a way out, in order to have all Production Cost transferred to CO-PA.
Thanks,
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.
This will make SER CC as zero
2. Calculate actual activity price in MFG CC (KSS2 / KSII)
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
5. In short, what remains for you to allocate to COPA is the 3rd category of CC.. i.e. you should allocate those CC to COPA whose cost is not included in the cost of product using COPC module
Br. Ajay M

Over Absorption in Production Cost Center.

Dears,
We are getting the over absorption in cost center after doing of actual price calculation settlement. we have done the following transactions at month end. eventhough we are getting over absorption (i.e., credits are more than debits) Credits are activity costs are transferred from production cost center to production/process orders or product collectors.
KO8G settlement of internal orders to cost centers.
KSV5 execution of distribution cycle.
KSII execution of actual price calculation.
CON2 revaluation at actual prices.
CO88 Settlement of Production/Process Orders.
Even after doing of the above trnasactions we are getting over absorption.
kindly advise me in order to resolve this issue.

Hi Divraj,
The same issue i am replicating in the development server i created one assessment cycle i gave one service cost center as sender and one cost element group, the group contains 10 primary cost elements(GL's), i done postings with 10 gl's respect to this service cost center, in my assessment cycle i gave one assessment cost element in segment header the sender rule is posted amounts, the receiver tracing factor contains variable portions, actual activity and no scaling, in receiver i gave cost center group contains 4 production cost centers, sender values is share in 100%, version is zero the receiver tracing factor tab contains variable portions as actual activity and one activity i maintained, the receiver weighting factor contains 4 production cost centers and factor percentage is 100%.
Now i execute the assessment cycle in KSU5 i am getting senders in cycle but receivers i am getting zero, when i took the actual activity, variable portions and no scaling i have to maintain activity price in KP26 and this cost center i have to maintain in process order that is fine please explain me how the cost will distributed to production cost center please explain the procedure in detailed.
Hopefully i will get clarity on the concept................

RRB and service product

Hi
In my business scenario, I would like to create a service order with operations and components.
My question can be applied to both quotation and billing processes.
I would like to make a link between operation number and service product.
Let me try it with an example.
A new service order is created.
Operation 10 and 2 components linked to it.
Operation 20 and 1 component linked to it.
Service product "SERVICE" added in the order header.
Through the DIP profil I would change actual costs on operation in "LABOR" article. Article will stay article..
I would like to have in my debit memo request or quotation :
Item 10 SERVICE
Subitem LABOR operation 10
Subitem Component 1
Subitem component 2
Item 20 SERVICE
Subitem LABOR operation 20
Subitem Component 3
Does anybody already tried to do this?
Regards
Olivier

Hi
In my business scenario, I would like to create a service order with operations and components.
My question can be applied to both quotation and billing processes.
I would like to make a link between operation number and service product.
Let me try it with an example.
A new service order is created.
Operation 10 and 2 components linked to it.
Operation 20 and 1 component linked to it.
Service product "SERVICE" added in the order header.
Through the DIP profil I would change actual costs on operation in "LABOR" article. Article will stay article..
I would like to have in my debit memo request or quotation :
Item 10 SERVICE
Subitem LABOR operation 10
Subitem Component 1
Subitem component 2
Item 20 SERVICE
Subitem LABOR operation 20
Subitem Component 3
Does anybody already tried to do this?
Regards
Olivier

COPA Product wise profitability

Hi Sapians
I have execute an order settlement and variance is successfully posted in COPA Value field VV002(Qty variance)
In product wise profitability report. System shows as follows:
Product Qty Sales value Cost @ Std price order Variance VV002
2000001 10 10000 20,000 2000
I have settled suppose 100 process orders for this product. Sales made for only 10 Qty where is remaining variance.

For your specific requirement, you need to use Actual Costing with Material Ledger. This would apply the variances to the COGS sold and the balance to the Inventory account.
Regards
Lalit Bhatt

Service product not copied automatically from contract

hi
i'm creating a notification referencing a contract item and thereafter creating a service order from the notification.
i'm finding that in some cases the material corresponding to the contract item is getting copied in the service product of service order, while in other cases it is not.
i could not find any difference between the two materials.
pl help is solving the issue

A Project is automatically generated from a sales order, when material in line item have been allocated in CN08, This determines which WBS structure is to be used as the basis for project creation, which has also been linked to a STD network, Bcoz SD/PS assign is ON i the STD PRJECT DEFINATION control data.
ON - A WBS leg is created for each sales order line item including similar Network.
In OPSA only one root must not be ticked.
Setting in Material Master.
Delivery Plant in SALES ORG VIEW 1
Item Category Group SALES ORG VIEW 2
MRP type: NO MRP indicator ND
Strategy group: 85
Individual /coll reqmt: left blank /1 individual reqmt.
MAETRIAL must be configurable.
let me know if u need more help
CHECK all this setting in your reqmt.
ONE more thing, u will get the RESULT in CNS41.
u will find Project from sales order like CNS41, DB profile- tick selection criteria as sales doc.
value from sales doc will be planned revenue for corresponding WBS.
Creation of project from sales order in SAP Project system is described as assembly processing.
In the Project System only networks can be generated directly from a sales document during assembly processing. Indirectly the system can also generate work breakdown structures, when it creates the network.
1.You start assembly processing by creating a sales document for a material. This sales
document can be inquiry,quotation, sales order.
2. The system then
Configures the material, if necessary
Creates a network using the standard network as a template
Configures the network, if necessary
Schedules the network backwards from the required delivery date
Checks material availability
Costs the network and transfers these costs to the sales document.
3. When you save the sales document, the system saves the network together with the sales
document. If applicable, it also generates a project definition and work breakdown structure.
The project number is derived from the sales document number.
Regards,
ANSAR

Service product&Serviceable material

Dear all,
What is the Difference between these two .and give me some explanation with real example.
and how can it helpful in CS module..
Thanks in Advance
Regards
Luckky

Hello,
Service products can be listed in addition to materials in a sales order. The service product is then shown as a service item in the sales order. A service order is created for this item.
Serviceable material is the material which is getting serviced, it will be relevent for goods movement. For example, serviceable materials can be: Goods to be repaired, Goods to be scrapped,
Replacements for faulty goods.
Service products can be used to maintain the pricing and cost part of the service/repair order.
Prase

Service Product/material

Dear all.
What is thr Diff between Service product and Service material..in Which scenario we can use it ...these..(I mean in Customer Service Point of view)
Plzz give some information with general Example
Thanks in Advance
Regards
LUckky
Edited by: lucky on Sep 15, 2008 9:17 AM
Edited by: lucky on Sep 15, 2008 9:17 AM

Hello,
The Service product and the material is same. The material is of material type DIEN / LEIS (Service). This is used to capture the service costs.
It can be explained like When you do a standard repair with a repair item the costs should be XX. When do some other kind of repair with Premium repair, item the costs should be YY.
Prase

Service product with task list

hi
i am using service product with task list in service order. in subsequent quotation (by DP80) the servcie product is coming as main item operations & materials in task list are coming as sub items.
in our case we may have to add some more operations (unplanned operations) in the service order apart from those (planned operations) already populated by task list attached to service product. and these operations need to be priced in subsequent quotation.
our problem: in the quotation even the unplanned operations are coming as subitems and hence there is no diferentiation between planned operations (coming from rask list) and unplanned operations (added manually in the service order). we need to differtiate between planned & unplanned operations in quotation for pricing purpose.
thanks in advance

Hi,
There are following work-around solutions from my point of view.
Option 1: create two different Std. Text Key in config Planned & Unplanned and also attach same in the task list.
All the planned operation will come with suffix Planned and same will be printed also. While you add the unplanned one that time addUn-planned std text key
You can also drive reporting , costing reports , confirmation report separately for all planned and unplanned items
Options 2: After goods posting you can find the cost difference of planned operation and unplanned operation. Devolve some Z report and based on same you can send final bill
Enjoy SAP......

Service Product Cost & Profitability

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