Total Production Cost calculation

Dear all,
Anybody know where / at which tableI can see the breakdown calculation of Total Product Cost / Production receipt amount, that should inform us about
1. What is component cost
2. Quantity
3. Price
Thank you very much in advance.
Best regards,
Surya

Dear Rahul,
[Rahul]
Now if I issue 500 of CH00, 250 of CH002, 250 of CH003 then my component price will be ((50010)+(25015)+(250*20))=13750
Correct? [Surya] YES
[Rahul]
Now if I receive 1000 of FG001 then my product cost will be 13750/1000=13.75
Correct?   [Surya] YES
[Surya]
I tested your sample here. The result is correct same as I expected.
So when I receipt FG qty < FG plan qty the FG cost is not changed it is still same with 13.75
This is exactly correct. Same as what I'm expect.
But why in my case the result is not correct.
Test case :
BOM for FG-001 qty 120, the child are :
- PFILM qty 10 Roll , unit price 1,500,000
- INK01 qty 5 kg       unit price 75,000
- INK02 qty 2 kg       unit price 60,000
- INK03 qty 1 kg       unit price 65,000
- INK04 qty 1.5 kg    unit price 65,000
- INK05 qty 7.5 kg    unit price 50,000
- INK06 qty 4 kg       unit price 55,000
- SOLVENT qty 25 ltr unit price 10,000
I create production order # 73 with plan qty 120 and production order # 74 qty 120
Production order #73:
- plan qty FG-001 : 120
- good issue : actual component qty = plan qty = bom component qty
- good receipt FG-001 qty 120
- Result for item cost FG-001 : 137,520.83
Production order#74:
- plan qty FG-001 : 120
- good issue : actual component qty = plan qty = bom component qty
- good receipt FG-001 qty 110
- Result for item cost FG-001 : 137,524.96 -
> WHY ?
I expect FG-001 cost should not change even though Receipt Qty <> Plan Qty.
I expcet FG-001 cost is 137,520.83
Thanks Raul for your help.

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Thread-ID: 6020
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HI Teck,
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Edited by: Butch66 on Sep 27, 2010 7:07 PM
Edited by: Butch66 on Sep 27, 2010 7:08 PM

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Hi Ram
Following are explanations for clarifications u asked for
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During rework production order confirmation system giving error message as below:
[Item category 01001 not allowed in accounting transaction 0000/0001
Message no. GLT2001
Diagnosis
The online document splitting is active in your system. Here, each document is assigned to a accounting transaction variant and each document row to an item category. You determine for each business transaction variant which item categories can or must be posted here.
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The document cannot be posted.
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Check the document entered, the derivation of the business transaction variant, the derivation of the item category, and the assignment of the item categories to the business transaction variant.
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Rework order was created through trigger points.
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Object was not costed
Message no. CK060
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The system could not find any entries that are relevant to costing.
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1. Look at the message log.
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The requirement of batch wise capturing of costs can be achieved by creating a separate production order for each batch of production. The production order captures all the cost, which are incurred during the production process. The details of each cost are as below.
1.For every batch of production a production order is raised in the production department. The production order contains the details of BOM and recipe.
2.The Bill of Material (BOM) details the raw material and packing material in the required portions that are required for production.
3.The recipe contains the detail process of production activity including resource such as manufacturing machineries, equipment. Each operation is assigned to its resource and each resource assigned to relevant activities such as Labour, fuel, power etc. (maximum of six parameters for each resource). Each resource is attached to a cost centre.
4. The recipe and BOM are copied to production order automatically when the order is created. The quantities of materials and activities are determined at standard levels (Planned costs).
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8. From controlling module, the planned rates of activities are uploaded on periodical basis. monthly or annually. The cost of material is taken at Moving Average price.
Once the batch production is complete the production person gives his final approval to the order as u201CTechnically completed (TECO)u201D.
9. At the month end / period end all these process orders are settled at the costing department.
10. The settlement results in calculating the overheads on predetermined rate and transferring the total cost of the production on to the finished product. The following entry is generated
Finished goods stock Account Dr
To factory output Account Cr.
11.The work-in-process is calculated based on the status assigned to production order. If the order has a status of u201Cu201CTechnically completed (TECO)u201D. the work-in-process is not calculated, but the order will be totally settled.
12.The standard cost of finished product is released at the beginning of every month. The standard cost is calculated based on the Bill of Material and recipe defined independently for each finished and semi finished product.
13.The variance is calculated on the difference of standard cost of material and the actual cost incurred in the production.
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Revaluation of Production orders
Initially cost planned in cost centre accounting against activity types are used for valuating the materials that are produced. At the month end when actual cost are booked from financial accounting, revised activity price calculation is carried in cost centre accounting and with this prices the production orders are revalued. The revaluation is carried to the extent of difference between planned vs. actual activity prices. The revaluation production orders will not be carried, as production orders will be settled Immediately.
The actual cost of every batch is determined using above process. A report is generated to know the cost for each batch.
The standard cost fixed with each customer for each product is maintained in a separate database. The Costing department should compare these details with the actual cost of production and identify the difference. Accordingly a Debit/Credit note can be generated.
Once a standard cost estimate is created, it updates the material master with that rate.
Cost Object Controlling is an area in cost accounting that assigns the costs incurred in the production of company activities (such as internally manufactured materials) to those activities. Cost Object Controlling supports you in:
Reaching make-or-buy decisions
Determining price floors
Performing complex cost analysis (such as target/actual analysis)
Determining inventory values
Cost component Structure:
A control of how the results of activity price calculation or material costing are stored.
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Material costs passed on to material valuation as the standard price or inventory price
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Material
Accessories
Power
Fuel
Sal & wages
Depreciation
R&M/ Stores
Others
Admin OH
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The various components of cost are incurred in producing a product is captured. The following cost components are considered for materials cost, consumables and fuel, direct
Labour cost, utilities. Repairs and maintenance gases, depreciation, administrative overheads. A costing sheet will be created to capture administrative overheads cost which are not absorbed in the products as activity cost but are to be considered for inventory valuation In the first step planned activity outputs for each cost centre are planned, then planned cost that will be incurred against each activity type and primary cost element are planned, by carrying out activity price calculation the planned price of each activity is arrived. These activity types are entered in the work centers and routings. When cost estimates are created, system captures material cost from the prices mentioned in material master. The manufactured overheads are updated from the activity cost planned in cost center accounting.
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