Standard cost calculation

Dear all,
We have 5 plants and 17 depots. We run standard cost estimate for 5 plants. In the same way, how to arrive at the costs for depots? It should contain excise duty, freight etc., Please suggest.
Thanks & Regards,
A.Anandarajan.

HI,
Cost estimate is Plant specific. It is not possible to run for Deport. If you create all the deport created as Plant, then it is possible to run the estimation.
Vijay

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QC activities in Standard Cost Calculation

Is it possible somehow the activities in operations/phases within inspection plan (TC QP01, task list type Q) include in material cost estimate (TC CK11N)? If it is, what kind of operation/phase key is needed to be set in inspection plan? What kind of costing variant is appropriate for this?

Hi Milan,
Yes, we can include activities within inspection plan in cost estimates.
Operation key from costing perspective depends on client's requirements for costing. We can use PPC1 - standard costing variant to include this. However, we may need some config setting to make it possible.
You can reach me at [email protected]
Thanks
Ajay

Freight Calculation in Standard cost Run

Hi,
The requirement is while doing the standard cost calculation through CK11N / CK40N system should show seperately how much is freight plan cost &; how much is duty plan cost.e.g.
100 is material price as per condition PB00 Cost element 355100
10 is freight cost (ZFR1 10%) Cost element 363170
5 is duty cost (Zduty lets say 0.5%) Cost element 363171
So taotal cost will be 115
I wanted to get this in cost component wise. Client does not want manual intervention so do not want to go for additive cost method
I had tried through Purchasing info record. I have maintained the valuation variant accordingly. Assigned correct sub strategy to it & also maintained delivery cost button in the same screen to assign conditions to origin group.
Also I had maintained purchasing info record through me11 ; mainteined conditions there.
These above mentioned cost elements are mapped in cost component structure in T code OKTZ. Seperately for material ,freight &; duty
Now when I make a PO, system is showing correct calculation as per the conditions.When I do the GR the Freight &; duty is getting posted &; these GLs are having above mentioned primary cost elements . .So the primary cost element is also getting posted correctly.
Now the problem is
While doing the cost run system shows me Seperate cost for material as 100 , seperate for freight 10 & seperate for duty 5, but to the same cost element i.e. 355100. So all the cost is shown as material cost ; nothing is displayed as freight or duty
If I see the cost element report the corresponding value is flown to the corresponding cost element. But it is not reflecting in proper cost component in cost run
.Please guide me why this is happening. How can I resolve this
Regards,
Abhijit

Hi Ajay,
I was waiting for your reply.
As mentioned by you, I have mapped my cost component structure like Raw material, Freigh, Duty & assigned the corresponding cost elements to it.. But still in itemisation view it shows three values
consumption cost element 355100 - 100
consumption cost element 355100 - 10 (which should go to freight component where I have assigned the Freight cost element)
consumption cost element 355100 -5 (which should go to Duty component where I have assigned the Duty cost element)
FI entries are getting posted correctly. Values are flown to coresponding cost elements.
For the time being We will keep duty part side. We are discussing with client on this.
But, what could be the reason of this problem. How I can achieve the below mentioned result.
Cost component view
Raw material -100
Freight - 10
Duty - 5

Routing different from Standard Cost: Scrap Variance Calculation

Hi,
We have issue with Scrap Variance Calculation/WIP calculation when the Routing in the production order is different from the routing in th standard cost. When we run varaince calculation we are getting an error message saying that variance can be calculated as quantity structre of the production order is different from quantity structure of the standard cost. I understand that this is standard SAP. But routing changes seems to be pretty common acorss the Industries espcially when the demand is high and the manufacturing happens in different machines.Do any of you had similar issues and can you share how this can be resolved.
Thanks,Sasi

Hi Sasi
Go to OPR4_KKS AND OPR4_KKS1 and see... I think you can convert this msg into warning message..
Regards
Ajay M

Price calculated in a standard cost estimate

Hi everyone,
Would someone know how to recalculate a price in a standard cost estimate that has been released yet?
Normally, SAP allows you to calculate a cost estimate only once per period but I would like to recalculate it for the ongoing period. Would you have any idea?
Nb: Although it is possible, I do not want to change it manually. I would like to go through the whole process (CK11N -> CK24).
Thanks in advance,
Ronan

Thanks a lot for your answer. That answers my question.
By the way, with the transaction you gave me, you can delete a cost estimate that has be validated for the ongoing month.
Cheers,
Ronan

Analysis report for standard cost in CK33N

Hi,
Analysis report for standard cost
Using variant Z003 in CK11N.
Planned cost 3 is the output used for planning and this is adjusted by making changes to the BOM throughout the process
In CK33 you compare the 2011 cost for the product with the proposed cost for the next year. For some parts it works and for others it splits the lines, though the calculation is still correct.
Regards,
T.Harish Kumar

Hi Revital,
I believe the last option is correct.
Thanks,
Gordon

Problem with rounding in standard cost estimate.

Hi All,
Happy 4th of July!
I have a problem with the standard cost estimate where the system try to calculate overhead costs (from costing sheet) with a fix percentage (9.7%) to the value coming from material consumption costs element.
Let say I have $1.71 material consumption and the overhead rate of 9.7%
The real calculation should be (1.71*0.097) = $0.16587
But at CK11N screen, it shows only $0.16 (two decimal rounding)
Is there a way that I can bump the rounding to at least 3 decimal point to make it more accurate?
Very appreciate any input you guys can share. Thank you.
Charitha

Hi Chari ,
My experience says that you can use only 2 decimals ..
Moreover , please have a look into SAP Note : 639410 - CK11N, CK13N: Message CK869 due to rounding
differences.
There a some source code corrections also on rounding differences- check if it helps you also...
Regards
Sarada

Recursive Loop Error while doing standard cost estimate

SAP Gurus,
We are trying to do standard cost estimate on a material and we are getting error because it is going in recursive loop even though we have used "recursive allowed" indicator for item components in the BOM. The error message numbers are CK 730 and CK 740. We are using 4.6c. I have tried the same scenario in ECC 6.0 and still I get the same problem.
Below is my BOM structure:
Material 10890345 (has low-level code 012)
        ---> 10867220 (has low-level code 013) and has recursive allowed indicator
10867220
        ---> 10846733 (has low-level code 014) and has recursive allowed indicator
10846733
        ---> 10890345 (has low-level code 012) and has recursive allowed indicator
According to me, the BOM for material 10846733 is causing the problem.
For some weird reason while doing the costing run for material 10890345, it s not stopping and going in a loop.10890345 and 10846733 should ideally have the same low-level code as they are recursive.
Please help to provide some solutions at the earliest on how to avoid recursive loop during costing.
Regards,
Swapnil

Dear,
I have 2 things to shear with you.
The method we followed to solve the iteration is as below
1.Config change -
Valuation variant in the costing variant, we changed the sequence as below
material valuation
4 planned price 1
2 std price
3 Mov ave price
2. Material master change
made all the semi finished goods and finished goods
procurement type = E,
costing with qty structure,
Enter the planned price1
By doing this what happens is
when system first start the iteration, takes the planned price 1 and start iterating and next time in the second iteration it takes the calculated price from qty structure till it finds the difference between the value calculated is less than .001. Then it gives the result
Why lot size is important is, in our case in some levels the usage is very less compared to the first material header qty and system used to stop in between and not even reaching the last level as during the cycle it was reaching less .001 difference. may be in your case it may not be the case...just check
Please come back after trying this. this was the only last option i had to solve the issue in my client.
Another alternative is to have a different material for costing purpose to stop the iteration which i will not recommend as we need to do some calculation for each stage and input the cost of dummy material in each stage.
My client is happy with the result as the difference between manual calculation and system calculation is less then .1%...this is because SAP will not consider the difference beyond .001, but in excel you get as many as decimals you want.

SAP allows release of Standard Cost for Material with Moving Average Price

Hi
We set our Raw Material to use Moving Average Price (V) and price determination 2 (single level). And we activated material ledger.
During mass calculation of standard cost (CK40N), If user accidentally forgot to restrict the Raw Material for being included in calculation, the system calculate standard cost anyway, even though I set it as Moving Average Price. And user is able to release it too without any problem.
Why the system does not restrict it? By giving error maybe. Although as for now I can not find the wrong effect from releasing standard cost for MAP material, by your experience, is there any side effect that I should be aware of?
Thanks

CK40n is mass release of all materials. The release is not dependent on price indicator of the material in the master. It will calculate standard cost of all the materials.
Releasing standard cost estimate of raw materials does not have any side effect as long your calculation is based on moving average price.
Regards
Divraj

Update of Price in Material Master when standard costing is released.

Hello SAP gurus,
When we created standard cost estimate, various cost estimate is created in various views Cost of good sold, cost of good manufactured and Inventory ( commercial ). Different view have different cost estimate.
But we I release costing , the material master is updated by cost estimate of Inventory ( commercial). The cost estimate from Cost of good manufactured should be update?
I am not able to solve the above issue , please help with customizing link
Regards,
Anand Agrawal

Hi Anand,
While you configure the Cost Componenet structure you define the attributes of cost Components in OKTZ.
When defining the cost components, you must specify whether the cost component plays a role in the creation of the different prices that are transferred into the material master record. You have the following options:
Standard price
Costs that are flagged as relevant for stock valuation form part of the standard price if the results of the standard cost estimate are marked and released. These costs also serve as a basis for the following:
The calculation of target costs in variance calculation
The valuation of scrap in variance calculation
The valuation of work in process for the confirmed yield for the operation (order-related production, process manufacturing) or at the reporting point (repetitive manufacturing)
Commercial price
Costs that are flagged as relevant for inventory valulation for the purposes of commercial law form part of the commercial price. This price is calculated in an inventory cost estimate and can be written to the material master record.
Tax price
Costs that are flagged as relevant for inventory valuation for the purposes of tax law form part of the tax price. This price is calculated in an inventory cost estimate and written to the material master record.
The above information will prove helpful.
Regards,
amol

Actual Cost Calculation in Process Order

Hi All,
I updated Standard cost of a raw material through a cost estimate and also ran cost estimate of the FIN that is using this raw material but when I am creating a Process order, it is taking the cost of this particular raw material from the previous estimate not the recent one to calculate the target cost. Can any body help me with this.
Thanks
MKR

Hi Ashok,
My Valuation variants for the Costing Variant of Cost Estimate and Production order (Actual/Plan) cost calculation are in Sync to get the prices according to the price indicator in material master. But when it calculates cost for a production order, it is picking up cost from the previous period for that particular raw material. I have updated the standard cost by running the cost estimate but still its not working.
Any lead on this. This will be really appreciated.
Thanks
MKR

Material ledger and standard cost estimate

Hi Gurus,
When standard cost estimate is done in a scenario, where material ledger is activated, does the entire stock get revaluated andl post a credit in my P/L? Is it possible to keep my inventory(FG and SFG) at periodic unit price ie at the actual manufacturing price over a longer period say 3 years? Please fill this gap in my understanding.
Best regards
Vimal

Hi Vimal,
Material ledger uses the standard price as 'preliminary price' always during the current month, independent of the question if a new standard price was estimated and released.
But: After period end, when the actual price is calculated the posting will adjust the inventory and P/L accounts to the actual price, with posting date in the recent period.
That means if you have a material that was manufactured once and then consumed over a 3 year period, and during that period you calculate the same material in a standard cost estimate with changing results, that would mean: Looking back at any month during the 3 years the consumption and stock values will be valued at the actual price of manufacturing. But during the currently open period it will always be valuated at the price of the last released cost estimate.
I hope I understood your scenario correct...
Best regards, Udo

Problem in Standard Costing

Dear Friends,
When i am running standard cost estimate, indirect overheads are calculated from KP26.
Suppose i have maintained the Machine Cost Rate at Rs. 60 for 1 Hour. When i run the standard cost estimate for that material, it is calculated by Rs. 30 per hour. For each and every cost, it is calculating half of the price maintained.
Please help me in this regards.
Regards,
Jimmy

Hi Mangalraj,
Thank you very much for your reply. I found all the things fine.
I found one new point by my due analysis. The points is,
I have maintained activity rates in advance till June 2009. its is as follow.
Jan - 60 Per Hour
Feb - 60 Per Hour
Mar - 60 Per Hour
Apr - 60 Per Hour
May - 60 Per Hour
Jun - 60 Per Hour
Now, the system calculates the indirect OH at the rate of Rs. 30 per hour ( i.e Rs. 360 for 6 months. Now the system calculates the OH rate at Rs. 30 per hour, which is derived by Rs. 360/12 months)
Why the system is behaving like this? it takes the average of 12 months in all cases. I tried by changing the distribution key also but it does not work.
What would be the reason behind it?
I hope to get back you soon friend.
Regards,
Jimmy

Target cost calculation in an Production order

Hello
Can any one guide me , how the target cost was calculated for various activities ?.
I believe the actual cost were pulled from the standard cost estimate . We have various activates for Labor / Quality / maintenance etc.. we want to correct all the cost . Any input will be highly appreciated
Thanks
Nic

Hi,
You post goods receipt for the order (MB31) and the target cost will be calculated, you may try this if it will help.
Regards
Prasad

UOM Conversions and Standard Cost Variances

If we have the right Unit of Measure conversion defined, with standard cost in FEET and the PO ordered in METERS, will the standard cost variance calculate properly? That is, will it take into consideration a different standard cost when calculating a Purchase Price Variance?
thanks for your response,
Pam

Thanks for reply. Can I use the following sequence:
1. Opening MM period for the month of Feb on 1st Feb (so I can release cost estimate on Feb 1)
2. Marking and releasing cost esitmate on Feb 1 (this will revalue the closing stock as well)
3. FI & MM closing activities on Feb 1 & Feb 2, though postings in Jan is required.
4. CO distribution and CO-PA Assessment Cycles on Feb 1 & 2 (after FI & MM closing)
Please notice some Jan activities in Feb after cost estimate of Feb. Please comment if you suggest something else
regards
Chris

Standard cost calculation

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