Unit Costing / simulation Costing( Prduct Estimation )

Hi;
Can somebody tell me more about unit costing i.e. estimation ??
Process is as follows;
Creation of quotation -
Create BOM according to customer specifications--attach it to material for which quotation created--take costing rungo to unit costing---- all data will be copied to unit cost estimate------change manually in estimation sheet as per estimator requirement- save it. -
cost will update pricing of quotation.
But now my problem is BOM explosion at unit costing sheet is first level only but I need all materials of every level of BOM.
How to get all materials in unit costing sheet Pl. let me know?????????
Thanks in advance!!!
Avinash
9822136556

Dear,
        Go to the link
        Re: Difference between ECP and UC
        It wil make you clear all thing about costing.
Regards.

Similar Messages

Simulation Costing / Unit costing / Product cost estimation

Hi;
Can somebody tell me more about unit costing i.e. estimation ??
Process is as follows;
Creation of quotation -
Create BOM according to customer specifications--attach it to material for which quotation created--take costing rungo to unit costing---- all data will be copied to unit cost estimate------change manually in estimation sheet as per estimator requirement- save it. -
cost will update pricing of quotation.
But now my problem is BOM explosion at unit costing sheet is first level only but I need all materials of every level of BOM.
How to get all materials in unit costing sheet Pl. let me know?????????
Thanks in advance!!!
Avinash
9822136556

Jason - have another look -
The cost estimate nuber that links MBEW to KEKO and then KEPH does not change - I just checke the 10 year histoy of one number, there are bom and routing changes, different versions and recently, different valuation variants. all of them use the cost estimate number that is located in MBEW
The distinctive uniqueness of a cost estimate is the combination of: Reference Obj.; ProdCostEst.No.; Costing Type; Costing Date; Costing Version; Valuation Variant; Additive Costs
CKIS uses the same key with the addition of Ledter and item number,
regards
Alhea
Edited by: Althea Madigan on Aug 26, 2010 9:23 AM
PS - Jason- thank you for your comment -- and forcing me to review this data - - I believe that I have just solved a high priority reporting issue - I hadn't noticed (or bothered to look at) the TRANSFER Co Estimate no - Thank you very much for pushing the think past the usual "here's the answer."
Edited by: Althea Madigan on Aug 26, 2010 9:34 AM

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We just moved from the United States to Costa Rica. The first two days my mac worked great. Then all of a sudden I was trying to use a game application and the screen went black and there is a white cursor which I can move around, but I can't escape it. When I restart it seems okay and I see my main screen, but only for a second and then it goes black again.
This computer was brand new in June. Is it the humidity??? What can I do. Please help!!!!

No guarantess but try smc and pram resets,

Mixed costing for cost estimated WITHOUT quantity structure

Dear all experts
Anyone can help me for this question u201CCan we use mixed costing for cost estimated WITHOUT quantity structure?u201D. If u201CYesu201D, please give me a hint how.
Thank you for your help
Noy

Dear Ajay
Thank you for your quick answer. So I will try to use cost estimated WITH quantity structure instead.
Thank so much
Noy

Reference and Simulation Costing Configuration Steps

Dear Guru's,
Anyone can share me how to do the configuration for Simulation Costing.
Please provide me the configuration steps....
Thanks in Advance.....
Thanks & Regards,
Chandrababu.B
Edited by: Chandrababu Naidu on Aug 17, 2011 12:05 PM

Hi,
Find the below link which highlights the "Reference and Simulation Costing: Process Flow"
http://help.sap.com/saphelp_47x200/helpdata/en/71/c4de767ff011d38b200000e8214595/content.htm
BR,
ADI

Differance between the Cost based costing and Account based costing

Hi,
What is the Differance between the Cost Based Costing and Account Based Costing ?

You can check sap note 69384
COSTING-BASED PROFITABILITY ACCOUNT-BASED PROFITABILITY
ANALYSIS ANALYSIS
OBJECTIVE
o profitability and sales accounting
o evaluation of market segments (for example,
customers, product groups, sales areas) and corporate
units (for example, division, sales organization) with
regard to their profit or contribution margins
o calculation of profits procedures
- cost-of-sales accounting
- interim and reconciled sales report
- periodic and transaction-based allocation
- Profitability Analysis on the basis of full and
direct costs
o posted and costing-based values o account-based values
o can be reconciled with FI for o always reconciled with
account groups (revenues, sales FI on account level
deductions, costs of goods
Note 69384 - Information: Account-based Profitability Analysis
manufactured, and so on)
DATA STRUCTURES
o definition of operating concerns o definition of operating
with fixed characteristics and concerns with fixed and useruser-
defined characteristics defined characteristics
and value fields
o cumulative storage by posting o cumulative storage by
periods and weeks posting periods
o storage in operating concern o controlling area currency,
currency (as of Release 4.0 also company code currency
optional in company code currency and transaction currency
if req.)
o user-definable summarization levels
FUNCTIONS
o transfer of profit relevant o transfer of profit-relevant
business transactions from SD, FI activities from SD, FI, CO, MM
CO, MM (revenues, sales deductions (revenues, sales deductions and
and costs organized by value fields) costs organized by accounts)
o Derivation of characteristics from master
data or using derivation rules
o Realignments also for data that is already
posted
o Valuation
(Costs of goods manufactured, imputed
costs and sales deductions)
o sales and profit planning o profit planning
- flexible layout - flexible layout
- periodic distribution - periodic distribution
- valuation, revaluation - forecast procedure
- forecast procedure - top-down distribution
- top-down distribution - simulation
- simulation
o profit analysis by means of 'interactive drill-down
reporting'
- Report Painter
- object list/ranking lists, database schema
- drill-down
- key figure systems
- flexible hierarchies
- navigation between reports
- exception reporting
- ABC analyses
- Exporting (Excel, Winword, Mail)

Target cost, planned cost, actual cost difference

Hi!
As per my understanding , the target cost, planned cost, actual will be calculated like blow:
Actual cost = Actual quanity * Actual price ( standard price or moving average price) existed at the time of goods movement.
Planned cost = Planned quantity * Planned price ( standard price or moving average price) existed at the time of production order release based on valuation variant strategy.
Target cost = Planned Quantity * Actual price ( standard price or moving average price) when calculating variances.
whether above formulas are correct?
I have one scenario, where in process order, I am not seeing Planned quanity for compoenent/raw material, but target quanity is existed. How it is possible. When I have checked the BOM in process order, the BOM does not contain the componenet.
regs,
ramesh

Hi,
Target Cost = Costs as per the standard cost estimate * Actual Qty delivered.
For e.g. Std cost for one unit of material-x is as follows.
RM 1 - 10kg * 10 /- = 100
Activity 1 - 5 Hr * 50 /- = 250
If the actual delivery from the production is 2 units, then target cost will update as
Under Goods Issue, RM 1 - (10kg*2units) * 10 /- = 200
Under Confirmations, Activity 1 - (5 Hr*2units) * 50/- = 500
Total = 200+500 = 700
Target cost for goods issue/confirmation of activities will update only when the Goods receipt has been done but not at the time of goods issue or Confirmation of activities.
Target cost for Goods Receipt will update only when the variance has been calculated for the order.
Regards
MadhuSekhar Gupta G

Cost center & cost element

Hi Experts,
Can anybody please tell me,
What is difference between cost center and cost element.
what is exact role of both.

Hi,
Cost Center
Definition
External object (object type K) from Controlling which represents a clear origin of costs.
If you implement the Controlling component, you can find more information in SAP Library under Cost Center (Financials u2192 Controlling u2192 Cost Center Accounting u2192 Master Data in Cost Center Accounting (CO-OM-CCA) u2192 Cost Center)
and
Cost Center Accounting (Financials u2192 Controlling u2192 Cost Element Accounting).
Use
By assigning cost centers to organizational objects, you determine where costs incurred by the object are to be charged. The inheritance principle applies: If an organizational object is not assigned a cost center, the cost center assigned to the superior object applies.
An organizational object may also be assigned more than one cost center. For more information, see Cost Distribution (infotype 1018).
Integration
A cost center can be related to the following organizational objects:
·        an organizational unit via relationship A 011 (Cost center assignment)
·        a position via relationship A 011 (Cost center assignment)
·        a work center via relationship A 011 (Cost center assignment)
Cost Elements
Definition
Cost elements classify an organizationu2019s valuated consumption of production factors within a controlling area. A cost element corresponds to a cost-relevant item in the chart of accounts.
Structure
We distinguish between primary cost and revenue elements and secondary cost elements.
Primary Cost/Revenue Elements
A primary cost or revenue element is a cost or revenue-relevant item in the chart of accounts, for which a corresponding general ledger (G/L) account exists in Financial Accounting (FI). You can only create the cost or revenue element if you have first defined it as a G/L account in the chart of accounts and created it as an account in Financial Accounting. The SAP System checks whether a corresponding account exists in Financial Accounting.
Examples of primary cost elements include:
· Material costs
· Personnel costs
· Energy costs
Secondary Cost Elements
Secondary cost elements can only be created and administrated in cost accounting (CO). They portray internal value flows, such as those found in internal activity allocation, overhead calculations and settlement transactions.
When you create a secondary cost element, the SAP System checks whether a corresponding account already exists in Financial Accounting. If one exists, you can not create the secondary cost element in cost accounting.
Examples of secondary cost elements include:
· Assessment cost elements
· Cost elements for Internal Activity Allocation
· Cost elements for Order Settlement
Integration
Cost elements in Controlling (CO) are closely related to the general ledger accounts used in Financial Accounting (FI). This is because the SAP System is structured as an Integrated Accounting System:
Cost elements document which costs (differentiated by category) are incurred within a settlement period, and in which amount. They provide information concerning the value flow and the value consumption within the organization. Cost Element Accounting and Cost Center Accounting/Internal Orders are closely linked in the SAP System. Each posting to an account that is also a cost element, is assigned either to a cost center or order. This ensures that at period-end the data is subdivided by cost elements and cost centers/internal orders for analysis purposes. The following section describes how you can subdivide and characterize cost elements in the SAP System.
Cost element characteristics depend on the controlling area and the allocation methods used in your organization.
Hope this helps clarifying your doubt about cost center & cost element.
Regards,
Tejas

Cost Center , Cost element , GL Accounts , Cost sheet , Account Assignment

Dear Experts,
Please explain what are Cost Center , Cost element , GL Accounts , Cost sheet , cost component and structure, Account Assignment and how they are interlinked with each other with transactions.
Thanks,
Ram

Dear,
Cost element : A cost element classifies the organization's valuated consumption of production factors within a controlling area. A cost element corresponds to a cost-relevant item in the chart of accounts.
Primary cost element: A cost element whose costs originate outside of CO and accrual costs that are used only for controlling purposes
Secondary cost element: A cost element that is used to allocate costs for internal activities. Secondary cost elements do not correspond to any G/L account in Financial Accounting. They are used only in Controlling and consequently cannot be defined in FI as an account.
Cost Center: An organizational unit within a controlling area that represents a defined location of cost incurrence.
GL Accounts : GL Accounts is master data preparation which is assign to chart of accounts.
Costin Sheet : The costing sheet integrates all elements of overhead costing. In costing sheet calculation base, cost element & Overhead rate & credit are define.
cost component and structure :
Cost component - Makes the costs of a material, an activity type, or a process transparent & Groups the costs of a material according to the requirements for material valuation and profitability analysis
cost component structure : It is use for
Activity prices for an activity type
Cost of a process
Planned cost of a product
Material costs passed on to material valuation as the standard price or inventory price
Cost of goods manufactured passed on to Profitability Analysis
Account Assignment : It's use for direct posting. In this we have to assign GL which is required to post directly.
GOPAN

Actual costing/standard costing

Dear all,
can anybody sugg me what is actual costing&standard costing.and what's difference between two.
regards
usha.

Dear UshaRani,
Standard Cost/Product Cost = Materials Cost(Raw Materials Cost Semi Finished Materials Cost)
Activity Cost(Operation Cost)
1.For all your ROH - Raw materials maintain price control indicator as V and enter the value as Planned
Price 1 and Planned Price Date 1 under Costing 2 View - Planned price tab.
2.For all your Inhouse manufactured semi-Finished(HALB) and In house manufactured Finished materials
(FERT) maintain price control indicator as S and dont enter any value directly in accouting view.
3.For activity's cost(Operation Cost) comes via ---> work centre in which the operation is performed.
4.A cost centre and an activity type where a rate has been maintained for that cost centre and activity type
(T code KP26) will be linked to the work centre under costing tab.
5.As per the operation time,the cost is getting calculated.
6.Overhead cost is the indirect cost which's spend during production.
7.So when the cost rollup is taken using T code CK40N (or else using CK11N estimating & CK24 for
marking and release) all this cost gets added and the materials standard cost is calculated and same is
marked in Costing 2 view under Current Planned price column.
8.Standard cost estimate is done for FERT materials so that automatically the system does for Semi-
Finished products also.
9.Actual Costing is nothing but the value of the materials( Raw-materials cost) when production
confirmation is made for the operation.
10. Say there's a raw material X whose planned price is Rs 10/,so while doing GR for this material Let's
assume for a quantity of 10 the value is Rs120/-,so now the actual value becomes 120/10 = Rs 12.
I hope this will help you to some extent.
Regards
Mangalraj.S

S_ALR_87013644 - Cost Centers: Cost Component Split

Dear SAP Gurus,
I am executing Cost splitting in KSII, and the values are coming correctly while doing the test run. However in the report S_ALR_87013644 - Cost Centers: Cost Component Split , price per unit is getting doubled. For example
Cost center X actual costs 20000
Activity unit for this cots center 2000 hrs
After splitting the value per hr=10
However in this report, per hr cost is coming as 20.
Is this a standard way of calu
Thanks

Hi,
Pls check the cost centers that you entered when executing the report.
If there are more than 1 cost center was selected, the system will sum the activity price per unit of all selected cost centers then display..
So the value maybe different from your expectation.
Regards!
Edited by: The Cuong Than on May 6, 2010 4:57 AM

Target cost = Actual cost

hello,
in our MTO, the target costs vs actual cost story runs smoothly
in our make to stock process however, the target cost = actual costs.
Where is the steering for this? can it be changed?
kr
Nico

In our deployment we use this feature (Target cost) and it does not represent actual costs. Our OKV6 screen shows the control costs are actual, but target is from Current Std Cost Estimate. It is my understanding that this approach makes the Target costs show the received parts in make-to-stock at standard costs. This is useful when your order is set to make more or less than what was actually received. The Plan will show the planned quantities at standard. Imagine you create a job to make 100 units, but only receive 70 units and TECO the order short. The Target would show the plan quantities times 70% rather than the entire planned values to make 100 units. Each view (Plan, Target and Actual) have their own use and benefit.

Planned cost/target cost/control cost

Dear Expets,
Ps guide me on the below.
Difference between - planned cost/target cost/control cost and Plan qty/target qty/control qty in MTS or MTO.
your response will be highly appreciated.
regards
Raman Rana
Moderator: Please, avoid asking basic questions

Dear Raman,
planned costs:
The costs anticipated for a particular undertaking (such as an order).
Target costs:
The costs expected to be incurred when a specific quantity is produced.
In Cost Object Controlling, the target costs are calculated on the basis of the planned values of a service unit (such as the planned cost of a production order) and the control quantities (such as the yield delivered to stock).
Target costs can be used for purposes such as:
u2022     To determine variances
u2022     To valuate work in process
u2022     To valuate unplanned scrap
Control costs:
The costs that are compared against the target costs when the variances are calculated.
In Overhead Cost Controlling (CO-OM), the control costs are always the actual costs.
In Cost Object Controlling (CO-PC-OBJ), the control costs are either the actual costs less the work in process and scrap or the cost calculated in the preliminary cost estimate for the order, depending on the target cost version.
br, Guido

Copy Material Codes, Costs, and Cost Code Distribution

Has any one come up with way to copy material codes with their unit prices and cost code distributions from one project(or template) to another? When a user has a large inventory of material codes, it would be helpful to be able to copy, or import these to a new project.
Thanks for any help.

Forgot to mention that CMPlus will copy Materials from one project to another with the unit pricing of the current project HOWEVER, the cost distribution is tied to the contract that the material is associated with. If you are using materials with Daily Reports to track material not related to a contract then this will be all you need. IF you are using Materials in association with line items on a contract/PO then it will populate the selection list but you will need to perform more data entry to properly link to the contract.
By performing this copy from one project to the other the capability to "Generate" materials from a contract or PO is no longer functional because the Material already exists as far a Contract Manager is concerned
One more item to think about - materials can only be associated with one contract - that does not mean that a material can not be used on more than one contract.
I am assuming that since you are asking this question that you have been using materials on your projects and understand the nuances and issues with the way CM handles Materials.

Error in Distribution of Actual cost in Cost Object Hierarchy

Hi,
I am getting an error while doing the Distribution of Actual cost from Cost Object Node to the assigned Order.
Cost element/origin 630000 could not be distributed
Message no. KZ468
Diagnosis
The cost element/ origin 630000 could not be distributed because there are no target costs for this cost element/origin or for cost element group CO-PC-TOT.
Procedure
Check the calculated target costs and cost element group CO-PC-TOT assigned to the target cost version.
Procedure for System Administration
Proceed
Although the Cost element is Present in cost element group CO-PC-TOT.
One more information, the order that is assigned in Cost Object Hierarchy is of CO-Product orders.
I have searched in the forum but I havent got any solution.
Kindly help.
regards
Kami

Hi,
Concerning error message KZ 468, it has the following origin: In the customizing of the cost object category (transaction okz5), check if the 'single object selection' is set to 'Control through variance key'. If you consider the F1-Help for this option you will find the following explanation:
if the indicator Control through variance key is turned on, the production order, process order, or product cost collector can only be assigned to the cost object hierarchy if:
-> The material is assigned to the lowest node of the hierarchy
-> No variance key is specified in the order
The important point is, that orders that have a variance key are excluded from the cost distribution.
In transaction KKF8 you will find that all these orders do indeed have a variance key. Hence, all of these orders are included, there are no target costs from the orders and the costs cannot be distributed. Thus the error message kz 468.
Please consider that and check the customizing again.
Not having target costs in the distribution indicates either a wrong set up of the hierarchy or, more likely, no valid cost estimate for a certain material of a production order or product cost collector could be found.
Did you check whether for this cost element/origin target costs exist, and also for the cost element group? If not the message KZ468 is correct and probably the cost element group has to be maintained properly.
The distribution of actual costs calculates target costs on-the-fly and the variance calculation does not have to be carried out before. Quite the opposite than the variance calculation requires the distribution as a preceding step. Furthermore it is not sufficient that one cost element is in a cost element group but the interval where the cost element has been assigned to has to have some target costs. Otherwise this won't work and message KZ468 is issued.
regards
Waman

Unit Costing / simulation Costing( Prduct Estimation )

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