Standard costs

Hi All,
Please suggest.....
Currently, we capture the transfer rate (standard costs) as one amount in SAP and BW. For this to work we would need to capture the four components of the transfer rate. (Direct Labor. Packaging, Ingredients and Overhead) Once we capture this data, we will need to establish procedures to charge the operating segments for the variable costs, fixed overhead and potentially any variable/fixed variances.
let me know your suggestion, how can i split the costs?
Thanks and Regards
Prathap

Hi,
You can split the cost component structure (CCS) for saandard price and also activity price(primary CCS). This can be used for transfering value as the detailed COGS. There're also BW contents in standard to extract BW in use.
http://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb7e9343a311d189ee0000e81ddfac/frameset.htm
http://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb7e8643a311d189ee0000e81ddfac/frameset.htm
Hope this helps

Similar Messages

CO-PA Cost Component do not match with Standard Cost Component Values

Dear Members,
The CO-PA Cost Components (as mapped through KE4R), do not match with Standard Cost Component values for the Group Currency. In local currency the values match.
System is correctly picking up VPRS value, both in local currency and Group Currency, which is equal to the total of Standard Cost Components however, it is the Value Fields linked to the Standard Cost Components in Group Currency that do not match.
In KE40, the Indicator is 4:Released Standard Cost Estimate matching Goods issue Date.
I have verified KEPH/CKMLPKEPH tables. The values are same as that of VPRS.
Any help/clues?
Regards
Satya

Hi,
In case of billing documents the group valuation approach is managed in the data structures of the legal valuation in additional value fields. To control costs and revenues in the different views separately, you must create additional value fields and assign them to the data structures.
The field contents must be filled via the CO-PA user exit, they cannot be entered by assigning conditions to value fields. The profit center valuation is updated in a separate ledger. No separate value fields are necessary.
The exit to be used is function module 'EXIT_SAPLKEII_002' ( enhancement COPA0005 ). Within the exit you have the complete SD data avaialble in the tables 'T_ACCIT' and 'T_ACCCR'. The conditions can be found in T_ACCIT and the corresponding values ( linked via 'POSNR' ) in table T_ACCCR. The PA line item and the corresponding SD item in table ACCIT
can be mapped via the line item field 'RPOSN' and the field 'POSNR_SD' in table ACCIT.
regards
Waman

Standard Cost Estimate for Subcontracting

Dear Sir / Madam,
We are in the process of migrating from our normal R/3 operations for Production Planning to Execution inclusive of Costing of materials by using iPPE functionality for repetitive scenario. We have our BOMs for painted body currently in R/3. The painted body falls under subcontracting scenario.
In this scenario the body in white produced from our bodyshop is sent out to the subcontractor along with certain paint items and is received as painted body and consumption of the body in white and the paint items sent needs to be shown during the goods receipt of painted body.
For this we have maintained the BOM for the painted body in iPPE. Also in the costing variant "ZD01" in order to arrive at Standard cost (CK11N) for the painted body we have maintained the following settings for Valuation variant for subcontracting :
Priority     Strategy Sequence
1          Net Quotation Price
2          Effective Price from Purchase Order
While running CK11N for the material (painted body) we are receiving the following message
Message no. 28501 : Error in dependency processing: condition 0000062388 is empty
We wanted to verify whether the message raised is normal or would it have any adverse impact.
Your assistance would be highly appreciated.
Regards,
Bhavika
Edited by: Bhavika Goyal on Feb 7, 2009 12:20 PM

Dear All,
Control Key is important for inhouse producrtion and Sub Contract. Check it once and when ever u have given the Product (semi fisished) to Sub Contractor, along with Paint.
Here one thing is important what is your process? how much portionis involced in Sub contracting. why because
Paint issue to the sub con is captured by the way for migo or miro
Payment to sub contract is capture all the cost of the Sub Con., then is there any cost is missed for this process. Let me know the remain things?
thanqu
raj

Item Standard Cost for foreign currency purchase order

Hi there
I have a question about
We have foreign currency purchases of USD which is fixed in USD.
Currently, we are converting this into AUD and entering this as the standard cost.
But if the currency rate is changed, we need to adjust the standard cost of AUD even though the price of USD is still the same.
Does Oracle have standard functionality where we can enter the USD purchase price into the system and have the system rate convert it to AUD whenever we have a new exchange rate?

Hi,
my solutioning would be
1. Create an Org where in item cost is maintained in US$, and perform no material transactions in this Org.
2. Use the prog 'Copy Item Costs Across Organizations', to copy the cost from US$-Org to AUS$-Org using any conversion rate as defined (Corporate, or average etc)
Use this process on regular basis so that you have the latest coversion and cost rate.
Regards
Adarsh Krishna

Is it possible to do Standard Cost Estimate even if we have open sales Orde

Hi,
I have a small doubt and questions regarding Standard cost estimate.
Is it possible to Execute Standard cost estimate when we have Open Sales orders and Open Purchase orders?
Is there any problem if we execute standard cost estimate when we have open Sales orders and Open purchase orders?
Kindly clarify my doubt and help me.
Thanks
Supriya

Dear Supriya,
There is no relation between sales order or purchase order and a standard cost estimate.
Standard cost estimate basically sums up the cost of the BOM components and the operation(activity
cost) or the processing cost(if sub-contracted) based on the material's procurement type and the
costing variant used.
Check and revert back.
Regards
Mangalraj.S

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

Excise Duty - Standard Cost Estimate

Hi Experts,
We have defined Excise duty as one of the cost component in the cost component structure. Can some one explain how this Excise duty is posted as planned values in the Standard Cost Estimate ( For material cost quantity from the BOM and price from Material Master is picked up according to the Valuation Variant - defined strategy - similarly for Excise Duty how the system captures the Value).
Please Help - thanks in advance.

Hi
If your Plant is not in an Excise Free Zone - Then You should not add Excise Duty as a cost component because you will be getting credit for the same
If your Plant is in an Excise Free Zone - Then your MAP/Planned Price etc must be inclusive of Excise duty.... This is handled by marking the excise condition as Non Deductible
So, in short, there is no way to show it separate... For Case b, you can use CK74N to add Excise component as Additive cost
br, Ajay M

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

Standard cost estimate could not be found for the material

Dear All,
We have 4 manufacturing plants and 30 sale depots. We are maintaining price control (S) for FG and SFG in Manufacturing plants,price control (V) at depots for the same material code. we are getting an error message " standard cost estimate could not be found for the material" while doing billing at depot.
Please give me suggestion.
Your suggestion should be appreciate.
Thanks in advance............
AND
My client want to see profitability at manufacturing plant level and need break up for the COGM. So how can i get the values of depot sales.
please let me know how to do........

Hai
Price control should be S for Depot also. You need to run standard cost estimate in DEPOT after entering additive cost under CK74N for frieght, excise duty etc. To transfer the standard cost from the source plant you need to make configuration in OMD9 defining the receiver and sender combination so that system can pick up the cost from source plant. This special produrement type needs to be asigned in the material masters of DEPOT under MRP 2 view.
Pushkala

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.

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

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

Blocking creation of production order if standard cost estimate is not done

Hi PP gurus,
Can anyone help me in blocking the creation of production order if the standard cost estimate is not done for the particular posting period.

Hi,
I do not think there exist a standart check. You can use exit EXIT_SAPLCOZF_003 to block creation of production order by sending error messages based on any condition.
Regards.

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

Re:No release of production order without standard cost estimate

Hello Experts
I do not want to release any production order without standard cost estimate
I have come acroos the same problem raised by some other users and can you please suggest how to achieve this?
Is there any way to achieve this without user exit?
Thanks and Regards
Subbu

Hello Subbu,
In this case, you need to put the status as "B4" Blocked in costing 1 view of material master, when you create the costing view and change it to "03" status when you released the cost estimate.
Please note that this field can be overwritten in MRP view also. Hence please get the good control of material master and good coordination with PP team to achive this.
Please let me know if you require any clarifications.
Thank you,
Regards,
Santosh
Please reward points if helpful.

No release of production order without standard cost estimate

Hi All,
I have an requirement, that is production order for a material should not be released or saved if standard cost estimate for that period is not released. Basically it should not allow to release or save the production for that material, is SCE is not run for that period. I tried various options, i also overheard its possible through user exit and many people have succeed in that.
Has anybody overcome this problem, please do let me know. And which user exit??
Thanks in advance
With Best Regards
GJ.

Hi...
I have faced the same problem in my previous project. What i have instructed to my client is to take control of Master data and put the status as "03" Blocked for movement till the statndard cost is released for this material.
You can relase the status to "E2" in Cross Plant Status Field in Costing one view once the cost estimate is released for the material.
I hope this works for you.
Please let me know if you require any fruther information.
Thank you,
Regards,
Santosh
Rewards points if helpful.

Standard costs

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