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

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Relation between Preliminary and Standard Cost Estomate

Hi,
I would like to know how preliminary cost estimate using product cost collector and standard cost estimate are related to each other.
I am not quite clear how both are used for a given plant in repetitive mfg scenario?
Regards,
Yogesh

Hi,
Thanks for the reply,
My question do not need so many details for its answer.
I would just like to know if standard cost estimate will still be required even if we are using repetitive manufacturing or it gets handled through product cost collector.
I would like to know if there is any overlap between the two from process point of view.
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Yogesh

Moving average and standard cost

Hi All,
I purchase raw material and trading item. assuming that my raw material is based on standard cost and trading item based on moving average.
1) if both item have no more inventory, the difference price between migo and miro will charge to price difference?
2) if raw material which base on standard cost still have inventory, may i know if there is a variance for migo and miro, the difference will go to where? if inventorise then what would happen to the standard cost.
3) if trading item which base on moving average still have inventory, the variance (between migo and miro) will be added to moving average. right?
4) for raw material which base on standard cost, may i know if freight cost, custom duty and some other miscellaneous cost need to add in, how possible it can add to the standard cost?
5) for trading item which base on moving average, may i know if freight cost, custom duty and some other miscellaneous cost also will be added in moving average price?
thanks

Hi,
1) if both item have no more inventory, the difference price between migo and miro will charge to price difference?
Yes, this is correct as per Accounting Standards
2) if raw material which base on standard cost still have inventory, may i know if there is a variance for migo and miro, the difference will go to where? if inventorise then what would happen to the standard cost.
Any difference between the Standard Price in Material Master and Purchase Value (PO Price) will debit or credit the Price Difference A/c no matter whether stock exits or not.
If Material Standard Price = 100 INR
And PO Price is = 120 INR
During MIGO;
Stock Account - Dr - 100 INR
Price Difference A/c - Dr - 20 INR
GR/IR Clearing A/c - Cr - 120 INR
3) if trading item which base on moving average still have inventory, the variance (between migo and miro) will be added to moving average. right?
Yes, it will debit or credit Stock Account and will update MAP of Material accordingly if enough Stock coverage is there.
4) for raw material which base on standard cost, may i know if freight cost, custom duty and some other miscellaneous cost need to add in, how possible it can add to the standard cost?
No, all will get posted to Price Difference Account as following;
If Material Standard Price = 100 INR
And PO Price is = 120 INR and Freight = 10 INR
During MIGO;
Stock Account - Dr - 100 INR
Price Difference A/c - Dr - 20 INR
GR/IR Clearing A/c - Cr - 120 INR
Price Difference A/c - Dr - 10 INR
Freight Clearing A/c - Cr - 10 INR
5) for trading item which base on moving average, may i know if freight cost, custom duty and some other miscellaneous cost also will be added in moving average price?
Yes, it will get added to stock and will update MAP accordingly if enough Stock coverage is there.

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

Costing sheet and standard cost estimate

Hi
I am trying to use Costing sheet for overhead calculation .
But in costing run I am not getting the overhead amount calculated .
I created the costing sheet and assigned that to valuation variant .
Where from the actual / Plan values being picked up for over head calculation .
More over I need to understand on what basis the %age for overhead can be calculted to be aborbed to material cost .
In costing run I am having ZERO values for overhead .
I have followed the following steps
Costing Sheet: Components
Define Calculation Bases
Define Percentage Overhead Rates
Define Quantity-Based Overhead Rates
Define Credits
Define Overhead Keys
Define Overhead Groups
Even then the Production overhead is not being calculated at the time of Cost Run
for standard cost estimate .
regards

Do you enter overhead group in the material master.
Key that groups together materials to which the same overhead is applied.
Procedure
In costing with and without quantity structure, and when costing production orders and run schedule headers, you can apply percentage overhead charges by means of an overhead key if you:
Assign a costing sheet to your production order or run schedule header, or to the valuation variant for the cost estimate
Enter overhead charges in this costing sheet that use the overhead key field
Assign the overhead key to an overhead group
Enter this overhead group in the material master record of the material

Actual posting and standard cost

Dear All,
For tcode kb11n, kb15n, kb31n, kb21n, ksu5, ksv5, keu5, they are doing actual posting.
But when come to product cost, cogs, they are all based on standard cost.
May I know what is the relationship for the above where some are actual posting and some are based on standard.
Thanks
Moderator: Please, avoid asking basic questions and replicate locked threads. Upon next violation your user(s) might be banned

Hi Srina,
You can use Actual Cositng mainly to process Mateial Ledger, the result of actual costing also can be transffer to profitability analysis in month-end to be cheked and be compared.
best regards, Takashi

Actual and standard cost

Dear forum,
I would like to seek clarification.
Standard cost of a finish goods is getting from costing run. When it is sold, the cogs is a standard cost or it is actual cost?
If it is standard, what transaction code should I get the actual cost of goods sold?
Thank you very much
Srina

Hi Srina,
You can use Actual Cositng mainly to process Mateial Ledger, the result of actual costing also can be transffer to profitability analysis in month-end to be cheked and be compared.
best regards, Takashi

Difference in Price per unit and Standard cost between COPA and PCA

Hi
I did a comparison between COPA and PCA for January. For few products,there is a difference in the Standard cost and PPU between the two reports(product wise). What might possibly be the reason for the difference. And how to analyze the root cause of this difference.
Thanks
Jaswanth

Hi
By PPU - Do you mean PUP i.e. Per Unit Price of Material Ledger??
If yes, then you are not comparing apple to apple.. Std cost is bound to be diff than actual cost
br, Ajay M

Planed cost and standard cost

hi sap guru's
What happens when u dont flag balance in local currency in gl master?
What is diff between planed cost and stand cost where will u give standard cost in MM?

Hi Ramu,
Generally the only balances in local currency will be checked for balance sheet items because it is mandatory to submit the balance sheet in local currency for outsiders/govt.
Standard Cost in the constant cost for a material. Planned cost is cost for the material for the future period. We will give Standard Price in Accounting 1 view of the material master.
~Rajesh

Cost Updating and Standardized cost difference apportion

Dear All,
1、 Cost updating：Standardized cost or average cost change is updated across all sub-inventory simultaneously, but the update should exclude the inventory that lends stocks (we do not want to update the cost of lending stock).
2、Standardized cost difference apportion：Standardized cost difference apportion is operated manually without system support (we want to do the apportion when stocks are delivered).
I am stuck up with these question ..
please let me know the solution or the workaround to achive this
Appriciate your help
Thanks
Satyam

Hi Abhishek,
Further to discussion on the subject,
Find enclosed link which elaborates the accounting
http://help.sap.com/erp2005_ehp_03/helpdata/EN/08/513e4243b511d182b30000e829fbfe/frameset.htm
In a nut shell u can consider that cost elemnts are providing u the documentation for Financial reporting & legal entries of a company.
Cost centres are cost collectors for different expense/revenues generated within the organisation with repsct to controlling part (Internal documenation) of the compny for better controlling the business scenarios.
Further cost centres are used for product costing.
Ramesh

Inventory Report-Replacement path for Base UOM to Case and Standrad Cost

Hi, We have a Scenario as below:
Question1:
We have a multiprovider contains 4 infocubes and 2 Master Data objects
a.Demand
b.Inventory
c.Sales Orders
d.In Transit
Master Data objects
a. Material (contains Base UOM to Case as Key Figure Attribute and also Base UOM as an attribute)
b. Material Location (Contains material as an attribute and also Standard Cost as a Key Figure attribute)
At the report level two formula variables are defined with replacement path for showing the Base UOM to Case and Standard Cost in columns.
We have 4 reports on this multiprovider. There is a dialy sales report which gives the following details
Material, Location, MRP Controller, CalDay, Base UOM, Actual Sales(AS), Dependent Demand(DD), Consumption Qyt(CQ), Base to Case UOM, Standard Cost
In this report for all the records the Base to UOM and Standard Cost column is coming with values which is nothing but the replacement path on the material master key figure attribute. Though this report is on the multiprovider all the major keyfigures (AS, DD and CQ) are coming from a single cube( this is an observation from myside).
We have another report which is the Inventory Report with the following details:
Material, Location, MRP Controllder, Calday, Base UOM, Unrestricted Inventory(UI), committed Inventory(CI), Back Order Qty(BOQ), In Transit by Sh/Rec(ITS), In Transit Pipeline(ITP), On Order Qty (OOQ), Current Inventory Position (CIP), Quality Inspection Stock(QIS), Block Stock(BS), Base to Case UOM, Standard Cost
Now in this report for all the records the Base to Case UOM and standrad cost is not showing up. Is there anything which needs to be done in order to get the Base to Case UOM and standard cost for all the records.
Question2:
When Non-Cumulative and Cumulative key figures are combined at the multi provider and also at the report level, will there be any problem?
Regards
Vijay

Hi,
I think you can proceed with virtual characteristics for this.In the code you can truncate the time and you can display on the date:
Regards
Prasad

Standard cost and planned cost

Hi Gurus,
Can you illustarate the difference between planned cost and standard cost by taking one example.
Thanks&Regards
Janardhan Reddy.p

Hi Srinivas Muthyala,
I would like to confirm my understanding regard the points below also;
1. Production Variance is calculated by using PLANNED cost;
2. STANDARD cost is only the value for benchmarking; and
3. I found PLANNED cost = 0, STANDARD cost = x & MOVING AVERAGE cost = x (in some cases)
that means no issued production order.
Warm Regards,
Markung

UOM conversion not big enough

Hey All,
I have a strange requirement. The numerator field UMREZ for UOM conversion is of 5 digits, which means the max value can be 99999. We have a need to do a Alterante UOM conversion which is greater than 5 digits.
Example: 1 PAL = 200000 EA.
How do I acheive this?
We are looking into all possible options.
First is thru config to create an intermediate UOM so that we can do two UOM conversions and acheive our result, but this is also going to be a big change.
Is there any other option through code to increase the length of this field, or any other alternative.
I tried searching and looking for OSS notes, but no luck.
Any input is highly appreciated.

Thank you for your replies. For a moment I thought this might be an option, but the problem here is not that the quantity is too large. but that the conversion factor is too large.
Let me explain again.
I have one unit which has the following conversion.
1 Pallet = 3000000 Eaches.
Numerator = 3000000 "here is the problem, numerator field is only 5 digits
Denominator = 1
which means if i get say even 100 pallets as input it have to convert
100 X 3000000/1 = 300000000. "the problem is UMREZ (3000000) is too big for that field
So here i cannot use any preconversion or post conversion.
BUT if i do think in the same line i can try to use a multiplication factor for that particlar unit of measure which i can just multiply at the end. I can maybe look to incorporate this in an enhancement when the UOM conversion is done. But I still have to figure out how to display it in the material master. Let me investigate more into this option.
Any other suggestion as welcome.
Edited by: Aparna Shekhar on Aug 8, 2008 9:23 AM

Report for Net Sales amount ,Other Allowances, standard Costs

Hi,
is there any SAP standard report to generate report as We need to run a report to see by Material and/or Product line the Net sales amount and units for a given time period. By net sale I mean Gross sales net return, net other allowances
also we need to have standard costs in the report.
Please let me know if you know of any report in SAP which can give me these values.
Thanks,
Arthy

do you manage profitability analysis?
in case, yes, you can have report with net turnover and standard cost.
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2. about standard cost you need to activate COPA valuation.
it is only a short suggestion, but you can find much information on this topics in the forum
Paolo

Standard cost estimate (ck11n) &standard cost (ck24)

hello sir ,
how to do stadard cost estimate and standard cost in sap
Thanks& Regards

Hi
Try below link
http://help.sap.com/bp_iasifrsv1470/BBlibrary/Documentation/I56_BPP_EN_DE.doc
http://help.sap.com/bp_blv1500/BL_US/documentation/Scenarios/V8Q_BPP_EN_US.doc
http://help.sap.com/bestpractices/BBLibrary/Documentation/J74_BPP_EN_KO.doc
VVR
Edited by: Ramana on Jan 2, 2008 1:09 PM

UOM Conversions and Standard Cost Variances

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