Std. Cost estimation

Hi all,
How do we maintain standard cost estimation for the material master?
Its very urgent
i will assign the points
venu

HI ashish,
Thanks for your information. already i given material number but system not entering price automatically.
from where system picks the price?
Itz very urgent
Once again thanks for your cooperation
I will assign the points
Thanks in advance
venu

Similar Messages

Error while doing Std.cost estimation.

Hallo gurus,
I am facing one problem while doing Std.Cost estimation.
Let me explain in detailed..
I am doing costing estimation for a Product. This product contains both Bought out Material and Customer Supplied Products.But both are coming as Material class as Raw material.
But Overheads to be calculated differently for those means for Bought out product - 1.5% and for Customer supplied Products-5%.
So i have created one Overhead Key and the same is attached to Overhead
Group and this overhead group is attached to a respective material.
In Costing sheet for overhead i have selected Dependency D010 and maintained the same along with Overhead key..
But while executing CK11N, system is not calculating the same.
Pls through some light on this....
Advance Thanks..
Regds,
Janardhan.

Did you attached the costing sheet in costing variant?

System is not converting unit of measure ment while doing cost estimation.

Hi All,
System is not converting unit of measure ment while doing cost estimation.
Now i am explaining system setting. based on this kindly help me.
Our Base Unit of Measure Measuremnt in Material Master is M2 (meter square) and We have maintained Unit conversion in Master as 1 PC is <=>2.5 M2.
We are running costing for 1 M2.
Producion we are doing in Peaces (PC) . and i maintained Std Value for for Machin and Labour for PC only. and we maintained charge quantity in phases also.
While running cost estimation system is not converting std value of machin & labour into M2.instead it is showing full machin and labour time and value.
System showing PC value for M2 Cost estimate.
Can any one let me know where i am missing.
Thanks in Advance.
Regards,
Sahil

Hi,
as per your explanation: 1 PC (piece) = 2,5 sqm (m2), standard values for "labour / machine" maintained per PC.
I guess within T-code CUNI, the unit PC does not allow any decimal places (means there can be only 1 piece, 2 pieces, 2 pieces but not 1 and a half pieces, 2,63 pieces,...)
Now if you are running plan cost estimate for quantity 1 sqm (m2) SAP picks the "labour / machine" values for 1 PC (and not for 1 / 2,5 = 0,4 pieces) as decimal places for unit pieces are not allowed so its up-rounding.
Run cost estimate for 10 sqm (m2) which should be 4 PC and the result should be fine.
Best regards, Christian

Std cost strategy in Cutover

Hello,
I have a query related to Std costing in cutover period.
If client doents have any costing system in legasy system prior to SAP golive. If there is any stock in cutover and that is as per price control S then how the strategy to be applied in cutiver for std costing. If we calculated cost as per BOM and routing in cotover then ther are chances that the value of stock would be different than the legacy system stock value, and becasue of different price the inventory value in legacy system and SAP would be with huge different. so request you to please inform how the std cost is trated in cutover period.
Reg,
Harry

Hello Harry,
You would need to ascertain the basis on which the cost is being carried out in the existing system and then you need to take appropriate steps and follow the correct sequence to arrive at the cost at which the stock is carried in the legacy system. Now the question arises that whether the legacy system has some form of estimate for the finished and the semi finished goods or they are valuating the same at some standard price which does not necessarily correspond to the prices of the RMs and the activity types.
Scenario 1 : Material valuation is based on cost estimates
In this case what I mean is that the value of the FG & SFG would be based on the prices of the RMs and activity. In this case the first step would be to update the RM and stores prices with the prices at which they are being carried in the inventory. It should also be kept in mind that the pre-golive BOM and Routing should be same as post golive. The next step would be creation of cost estimate for FG and SFG that would correspond to the value at which they are being carried in the legacy system. Thereafter you can upload the FG and SFG stocks using 561 movement and the differences expected in this process is minimal.
This is the best course of action to be followed. Even though your legacy system doesn't have this level of details but it would be better to create some form of estimation and try to match the same in new SAP system would be better as your client would not be ready to write off inventory valuation just because of go live.
Scenario 2A : Material Valuation is not based on any estimates and Material Ledger / Actual Costing is not implemented.
In this case I can understand that the client would be able to provide item wise valuation sheet for FG but he would not be able to provide any breakup by CE. In that case it would be better not to create a cost estimate for FG and SFG before upload. Rather manually put the item wise prices in the system so that when you load the data the legacy matches SAP. Remember in all cases take the RM and stores at the prices they are being carried out in the inventory. After the inventory is uploaded then you can execute the cost estimate and you get entries in the revaluation account. This amount posted to revaluation account can be separately stored in another GL (a balance sheet account, say FG Valuation - Manual) and that is also carried on year after year or written off as per convenience.
(ii) In this case I assume that you would not be able to get even an itemised list of FG and SFG valuation and in that case you can create the cost estimate first , upload FG and SFG and then the difference would be there between legacy and SAP which can be posted to a Balance sheet account as mentioned in (i).
Scenario 2B : When you have Material Ledger implemented
In this case th job is a bit easier. If you have itemised costs for the materials then what you need to do is that in a excel file calculate the item wise difference of the FG, SFG and RM etc and then go to transaction MR22 and post these differences there debiting or crediting the materials. In this process the advantage is that for materials being carried in standard price the difference is posted to the inventory price variance account but the advantage is that this price variance account is taken care when the month end valuation of the inventory. Therefore the difference totals up with the inventory valuation.
Do get back with your scenario in order to get more inputs
Kind Regards // Shaubhik

Std cost esimating for semi finshed meterials

hi co experts
i am facing this problem at the time of estimating std cost for semi finshed meterial
pls see this problem and tell me the solutions
No price could be determined for material/batch 7000118/ plant PPP1
Message no. CK465
Diagnosis
The system could not calculate a price for material/batch 7000118/ in plant PPP1 for valuation view 0, because none of the valuation strategies in valuation variant Z02 was successful.
System Response
User-defined error management enables you to specify whether the message is an error message, a warning message or an information message.
If you have defined the message as a warning message or an information message, the costing item will be entered in the cost estimate with a value of zero.
If you have defined the message as an error message, the cost estimate contains an error or errors.
In the case of a material cost estimate, the system sets the status KF.
If it is a cost estimate without quantity structure, or base object cost estimate (that is, a unit cost estimate), the system cannot proceed with costing until you have corrected the errors.
If the system issues a termination message, the cost estimate cannot be processed, and processing is terminated.
Procedure
Check the master data for material/batch 7000118/ in plant PPP1.
If you have authorization for Customizing, check the valuation strategy for materials in valuation variant Z02.
Note
If the message is a warning message or an information message, there is a danger that materials with errors will be ignored by the system.
If, because of this, you issue a warning message and at the same time include materials with a zero value in cost estimates, you can make the following settings for these materials in the costing view of the material master:
1. Enter a very low price in the planned price 1, 2 or 3 fields manually, for instance 0.01 USD. These prices are used for costing purposes only; they are not read by other applications.
2. Enter the highest price unit possible, for example 10000.
Note: If you enter a new price unit that is higher than the costing lot size, the system increases the costing lot size accordingly.
3. Change the valuation strategy, such as strategy 4, where you could enter the planned price field in which you entered the low price.
The system now costs as follows:
Using the valuation strategy, the system finds planned price 1, 2 or 3. Due to the low price and high price unit, the system rounds the value to zero. However, the cost estimate still obtains status KA (free of errors), and no error message is issued.
This procedure can be used for all materials that have caused error message CK465 to be issued.

Dear Venkataswamy,
Check whether have you maintained the planned price for that material in Costing 2 view,
Also check this thread [Planned price |Re: Planned Price updation In Material Master]
[standard Cost estimate|Re: Standard Cost Estimate]
Regards
Mangalraj.S

Error: no product cost estimation possible, at the releasing for accounting

Hi Guru,
while releasing for account in billing document for the finished product.Shows Error as:"no product cost estimation not allowed". Thou I cheked configuration checking of costing key in COPA and costing variant of relevant one looks fine. Plz guide me further more configuration and basic settings needed in to solve this task.
Thanking u in advance
Murali.

Pawan,
Thanks for your quick reply.
I have done those change also, still it is coming same as " No Product cost estimate was found". check you costing key 100 in COPA configuration. i have checked costing key configuration , in that costing varinat PPC1, Costing Version 1, Period/Indicator as "Current Standard cost estimate Acc. to entry in Material Master" .
How to fix this, guide me
Sateesh

Moving average price of subcontracted material not picked for Cost estimation

Hi Experts
I have the below scenario:
Finshed Product A has components B, C.
C is a subcontacted material and it has its own BOM with components D & E.
We are maintaining moving average price for the subcontracted material C, (because the subcontracter is adding X & Y in addtion to the components D and E, which are sent from us).
In the mateial maste of C, Procurement type is F and Spl. procurement type 30 are maintained.
When i do costing for the Finished product A, moving average price of C is not picked up (where as system calculates the std cost for C by adding the values of D & E and purchase info record price).
Is there any way to Calculate Price of A by using the mvg avg price of C.
I maintained the below valuation variant settings.
If i remove the spl. procurement type 30 in the material master of C, it picks up the mvg. avg price. but it affects the MRP planning of items D & E.
Please advice.
Thanks in advance.
Regards
Bala

Hi Big choi
Thanks for your response.
I understand.
1. if we maintain spl. procureent key 30, system calculates standard cost based on raw material and service charges.
2. If we don't maintain spl. proc key, it considers the material as purchased and picks the mvg avg price from material.
But, is there any way to pick the moving avg price from material master eventhough i maintained the spl. procurement type 30?
Thanks
Bala

Shipment Cost Estimation Report

Hi Experts,
There is an existing report which is very helpful regarding most transportation details. You can pull information at the delivery or item level of all types of shipments in one place. We use this to review what shipments we need to process to cost documents and transport POs.
Another report shows all of the information except information on what the actual cost calculations have been. A report is available which details the cost calculations but this report is not available until after the cost document has been created which is too late to assist in the shipment costing process. This T code is VI12 and it shows each cost type separated out based on the calculated rate.
Using T code VT02N from the shipment cost estimation button, this is the information we need to merge it in the existing report.
Please can anyone advise on this situation how to do this enhancement.
Do we need any other information from the client for this issue.
Thanks for your help.
With Regards,
Ruby.

Hello,
Would VI11 answer your question, there are also additional fields in the ALV catalogue that can be added to the layout?
Regards
Waza

How to include ED in Std.cost estimate

Dear all
My client want to add ED to Std. cost estimate in receiving plant(Depot). I have acheived this by way of additive cost estimate manually. but my client wants that system could pick up the Ed from SD where ED is maintained SKU wise.
At recieving plant(Depot) the std.cost estimate is like this
Std cost from production Plant
ED from SD
Freight ( certain % on ( St.cost+ED)
Std cost at depot
Is it possible to get above scenerio?
Pl help me out
Regards
SPSankaram

HI
Standard formula for workcenter costing is SAP008 , you have to specify in the costing and capacity tab , whereas for scheduling specify SAP004
then try creating the order
regards
thyagarajan

Change in FG/SFG valuation system from STD cost MAP

As of now we use Std cost for valuation of FG/SFG and we would like to switchover to MAP for following reasons:
1.We donu2019t see any significant benefit from present costing system. Std costing updation, monthly CO closing, periodical revision of STD cost is not really justifying any benefits compared to the overall efforts put in for above activities.
2.KE 30 reports fail to give correct productwise contribution status as system loads all variance to quantity sold during the PERIOD( e.g If production is 1000 qty, sales 200 qty- , then system will load the variance of entire 1000 qty to sales qty of 200). This is misleading. It is not possible to sale all produced qty in same period in our case.
3.SFGs being produced in one plant trfd to another for FG production. To produce final product X, SFG A is needed, to produce A, SFG B required, to produce B, SFG C required. This is discrete mfg process and and SFG are produced in different plants under same co code. So, we are not able get contribution report of product X as component SFG A it self contains OH/activity cost.( We want to calculate contribution company as a whole i.e Selling price minus material cost( actually bought out materials and not SFG).
We donu2019t want to go for material ledger, considering the manufacturing complexity. Now, we want to change price control of all FG/SFGs fromu201DSu201D to u201CVu201D on cut-off date after making stock NIL
Kindly give us your expert advise on this approach. What are the challenges we will face by doing so.? Is there any company done this type of changes?
MBS

Hi MBS
1. ML is the right and only solution for your expectations
2. Whether you adopt V or S - CO CLosing is what you cant avoid... You will still need to do the whole CO cycle whether you have V or S
3. Having price control V for In House Mfd materials will damage the inventory valuation forever... Refer Note 81682 - Pr.contr.V for semi-finished and finished, which explains this in detail
What you want is Actual Costing, which can only be delivered by ML
What you want to avoid is monthly CO Closing - Which you really cant avoid
If you still go with V - May be in future you would realise that S was better as suggested by SAP in the above note...
You can take up an enhancement with your ABAP team to develop the kind of reports you want... however, thats not going to be easy... Its gonna take very long to stabilize, even if achieved
br, Ajay M

Regarding Cost Estimation

Dear All,
While doing the Cost estimation for a Product i am getting the below mentioned error..
Cost estimate for material W275271299NEW / plant LEP1 is incorrect
Message no. CK168
Diagnosis
The system found errors in the cost estimate of material component W275271299NEW from plant LEP1.
System Response
The results of raw material cost estimates that have errors are not used in the product just costed. Only cost estimates that do not have errors or that were released are used in cost rollup.
All assemblies that contain material W275271299NEW from plant LEP1 in their structure are indicated as incorrect.
The message sets the costing status of the assembly to 'costed with errors'.
Procedure
Eliminate the error at the highest low-level code.
The Material W275271299NEW is Scrap material. That is generated at the time of Production. this material i have mentioned Negative in BOM.
Regds,
Janardhan.

Check with your Practice for Matrices,Technical refererence models, Governance policies, standard templates for requirement gathering etc.

Standard cost estimation after goods movement when material ledger is activ

Hi!
our client is activated material ledger, for some materials standard cost estimation is done till marking but not released.
goods movements have been posted for those materials.
Now system is not allowing to release the standar price for those material in the current period, as material ledger expects same price for entrie period.
what is the alternative way to update the standard price for those materials ( with out reversing the goods movements).
regs,
ramesh

Hi Ramesh,
When you are using Material Ledger, after goods movemnets for materials, no need to change the standard cost estimate as Actual costing run will take care to derive the PUP price.
If there is no standard cost estimation release for sold materials (e.g.FG), you will get an error message duirng the billing document release to accounting. To aviod this error, if you are using split valuation (valuation types) and mixing ratios (CK91N & CK94), try with the below steps:
Create a new valuation type for the same material
Crate CK11N & CK94,
Run CK11N
Run CK24.
Then release the billing document.
Let me know if you need more details.
Thanks & Regards,
ADI

Price for Cost Estimation - Info Records

Hi All,
We need a clarification on how system picks the price for COST ESTIMATION with following setting in Valuation Variant.
1.Valuation Price from USER EXIT
2.Price from Purchasing Info Records
3.M A P
4. Planned Price 1
Sub Stratergy.
1.Effective Price from Purchase Order
2. Net Quotation Price
3. Gross Quotation Price.
If we have 3 info records with the same validity date and different price in each for three vendor, what price will system pick for calculating the stand cost estimation.
We have activated Material Ledger and we in ECC 6.0.
Do suggest.
Regards,

Hi ajai,
I agree with your point,we have 3 info record for a material and 2 are valid as such. The price maintained in two info records are as 7.5 & 1.0 respectively(valid info records).
The last price in the purchase order (of the info those records) are 0.41(dated on 09.04.2010) & 0.2(dated on 19.04.2010) respectively, but when we execute the cost estimation the system picks the price of 7.5 not the least price of 0.2(as its the latest purchased price).
Do let us know why and of what logic the system picks the highest price.
Do revert.
Regard,

Urgent: Maintain std cost for plants under different company codes

Hi all,
Company code(s)/Plant(s): C1/P1, C2/P2, ..., CnPn
BOMs and Routings are maintained under P1. I believe that unlike BOM routing can't be made available across plants. So how does one maintain std cost across plants under different company codes?
Thanks.

Hi,
You have to maintain individual BOM, Routing and varaint for all plants.
Best Regards
Ashish Jain

Changing Cost Estimation ( ML activated)

Hi All,
We have ML activated and we have Price Control as "S" for all ROH, HALB & FERT Materials.
The intention was to have one Cost Estimation per year and difference to be posted to variance.
The Material Valuation Strategy is
1. Valuation Price from User Exit
2. Price from Info Record
3.MAP
4.Planned Price 1
Now our issue, in June 2011 we have executed cost estimation for some new materials(say one Material ABC - Cost estimation must be $12000 but it is updated as $19000 due to wrong price maintenance) with wrong price and made goods movement.
Now when we want to correct the cost estimation by executing a new cost estimation( i.e. we want to overwrite the $19000 by $12000 for the ABC material) by this month( July 2011), but the system is picking the same old cost estimation price (old cost estimation price as $ 19000).
Can you suggest, how we can overwrite the existing cost estimation.
Do suggest.
Regards,
Rex

Hi All
Costing valuation follows the priority you have define. If this is taking 19000 maybe this value is coming from the first option (user exit).
I suggest you to change the priority to take price from planned price 1. Go to OKKN and change the priority for Valuation variant.
...or you have to assure there is no prices from priority from 1 to 3.
Regards.

Std. Cost estimation

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