Which Cost Objects to hit in Controlling

Dear All,
Please guide which cost centres/ cost Objects should be chosen in case of the following entries in FI
a) Revaluation of Inventroy based on Standard Costs ( Entry passed by system at beginning of the month)
Inventory Ac Dr
Finished Goods Valuation Adjustement Ac Cr
Semi Finished Goods Valuation Adjustment Ac Cr
Presently entry passed due to above price change we are accounting under Procurement cost centre and treating the same as period costs. Is this treatment proper?
b) Scrap generated during production is not possible to allocate the same to any specific production Order , hence the scrap loss entry as mentioned below is accounted under production cost centre
Scrap Loss Ac Dr
Inventory Semi Finished Ac Cr
inventory Raw Material Ac Cr
Whether scrap loss should be accounted under production cost centre or there any better way of accounting scrap loss in controlling ?
Please provide answers so that necessary configuration chages can be made.
Regards
Milind Nair

Hi
Material reveluation (ie cost element) will be posted with cost center as cost object and Profit center will be geting profit center assignment with plant combination
Scrap should be treated as by product wich in return give credit to production order or product cost collector
Dinabandhu

Similar Messages

Cost object for Revenue Item?

Dear friends
When I am posting sales entry in F-02, system is asking Cost Object.
I have given Cost Center as a Cost Object. In the control tab I have removed lock for Actual Revenues also.
Even after this also system is asking the Cost Object. And I am getting the below error:
Account 301001 requires an assignment to a CO object
"Message no. KI248
Diagnosis
All given account assignment objects (order, project) are defined as statistical.
System Response
Statistical orders or projects are ignored when FI and CO are reconciled. You must enter a cost center, order, project, or cost object to which the costs are posted for CO postings.
Procedure
Enter a cost center, an order, a project, or a cost object that is not statistical. The posting row affected is 002 and the account is 301001."
Regards
Kiran A

Revenues posted to cost center always statistical postings only. System is looking for real cost object. Go to profit segment field and derive manually to post to profit segment. Otherwise you need a Internal Order or Sales order

The performance of Distribution of Cost Object Hierarchy Costs.

Dear SAP Gurus.
I am checking the function and the performance about Cost Object Hierarchies distribution with Control Through Variance Key.
The number of production orders assigned to COH is about 100,000 per month.
All orders will be closed at current month and new 100,000 production order will be assigned to COH at next month.
My concern is about performance of Distribution of Cost Object Hierarchy Costs
because a huge number of orders will be accumulatedly assigned to the Cost Object Hierarchies.
I think that the COH will be distributed with not bad performance.
(Actually I want that to be OK.)
What's your opinion about that?
Sincerely.
Mahnkwi.

Hi Mahnkwi,
Sender-/receiver-relations should definitely be below 1:1000 or even below 1:500. This depends on other factors like general size of the hierarchy and data to be processed as well. This hierarchy needs to be restructured. In case you do this the
distribution needs to be reversed first.
Below are some other hints on performance in KKPX
- Parallel processing should be used.(note [386508|https://css.wdf.sap.corp/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=0000386508])
- Switch off detail lists since the consume lots of memory.
- Old orders should be archived.
Note [77718|https://css.wdf.sap.corp/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=0000077718] also explains tips to avoid the memory error for transaction KKPX or KKPY. As note explains, you should consider
whether a distribution of the cost elements according to their origin is required; if not, the corresponding indicator should not be set in the costing view of the materials.
If many error message is issued in the error log, this may have bad effect on the memory of your server. In this case, you should make these error message "not to be displayed" by message control in IMG.
Regards,
Declan

Product cost planning & cost object controlling

Hi All
We are using KMAT material type for configurable materials.
Product cost planning:
My question is , Can we save cost estimate for the Kmat materials?
( I am assuming I dont have to run CK40N for these materails , As I am not going to have accounting tab for Kmat materails. and I do not know which materails and operations to use in super Bom and Super routing)
Please let me know If the above statement is true.
Cost object controlling:
Can i use cost obect controlling by production order or PCC?
*I am assuming I will be ale to use only cost object controlling by sales order....But I have nt worked on this previously...If I have to use cost object controlling by sales order , can you guys give me a link or steps that helps me in configuring Cost object controlling by sales order*

Hi,
See comments in bold
Product cost planning:
My question is , Can we save cost estimate for the Kmat materials?
( I am assuming I dont have to run CK40N for these materails , As I am not going to have accounting tab for Kmat materails. and I do not know which materails and operations to use in super Bom and Super routing)
Please let me know If the above statement is true.
You have goto VA02-->Costing
Sales order costing is big topic,please check this link
http://help.sap.com/saphelp_bw33/helpdata/en/90/ba6da4446711d189420000e829fbbd/content.htm
Cost object controlling:
Can i use cost obect controlling by production order or PCC?
*I am assuming I will be ale to use only cost object controlling by sales order....But I have nt worked on this previously...If I have to use cost object controlling by sales order , can you guys give me a link or steps that helps me in configuring Cost object controlling by sales order*
Sales order costing is big topic,please check this link
http://help.sap.com/erp2005_ehp_01/helpdata/en/90/ba6f9f446711d189420000e829fbbd/frameset.htm
Thanks,
Rau

Cost object Controlling - Transaction KKBC_HOE

Hello CO experts
Can anyone let me know or provide me the documentation for CO summarization report.
I defined hierarchy in the customization (SPRO) but it seems that it is not complete in all respects.
I always get "Hierarchy does not exist".
Thanks and Regards
Subbu

Hello Jayaraman,
It seems that you are just missing the data collection step ( summarisation step), which is a prerequisite, before executing the summarised analysis report KKBC_HOE.
Till the time , data is not collected in the defined hierarchy, we keep on getting the message as " Summarized object does not exist :"
The steps are
1. Define / Create summarisation hierarchy - KKR0 - I believe, you have already done this step.
2. Data Collection for the above summarisation - KKRC - for required hierarchy / subhierarchy / period - ( Menu path - Controlling - Product Cost Controlling - Cost Object Controlling - Product Cost by Period - Information System - Tools - Data Collection - KKRC - For Summarization Hierarchy )
Request to test this for a specific material / period / order type initially , to avoid long run times, and once satisfied / successful, collect the full data by executing the job in background.
3. Execute report KKBC_HOE
Hope this helps.
Please do not forget to award full points, if satisfied and successful.
Cheers
Shreekar Vaidya

0CO_PC_01 Cost Object Controlling: Plan/Actual Data

Hi Experts
I have a question regarding Cost Object Controlling: Plan/Actual Data (0CO_PC_01). I know nothing about the R/3 processes and tcodes behind this datasource.
For a given material and a given plant do I only get records with VTYPE(Value type for Reporting) 10, but I do not understand why - I need VTYPE = 70.
I therefore hope:
1. That somebody could provides input on why I only get VTYPE = 10 and how I get 70 instead.
2. That somebody can tell me the tcodes behind this datasource on the R/3 side.
Thanks and kind regards,
Torben

Hi Mr. V.
Thanks a lot for the input.
The problem is that we have got VTYPE 30 (target) for some materials, but not for specific material A and we really do not understand why. Do you know how I can verify if the variance is present for the given material A in R/3?
Thanks and kind regards,
Torben
Edited by: Torben Pedersen on Apr 3, 2009 12:00 AM
Sorry, it is VTYPE 30 i need, not 70 as stated by mistake at first.

Difference between COPC planning and cost object controlling

I want to know why do we have to calculate the cost of a manufactured product by both COPC planning and Cost object controlling by order?
Will the cost of a manufactured product be different in COPC planning method and cost object controlling method?
if we use only cost object controlling to calculaute the cost of a manufactured product without using COPC planning wht will be the implications?

Raja,
Yes the cost can be different. The cost calculating thorught Product Cost Planning may be static, you calculate it by period it is more for planning prupose ans to set standard. The cost calculated through Cost Object Controlling is resulting from your actual transactions, and the are few variables that could increase or decrease the cost of product. For example the overhead cost (Increase of salaries) can directly affect your activity rate at the work center and impact cost of your product when the production order is complete. You need both costs (Cost Planning and Cost Object releated) so at the end of the period you can calculate variance betweeen your plan cost and your actual costs.
Hope this clarifies your doubts.
GG

Validation, which prevents internal cost allocation between cost objects..

Dear Experts,
Can anyone assist me in how to create a validation, which doesn't let internal cost allocation to occur between the cost objects of different company codes. What steps to take?
Thanks,
Erne

Dear Ajay,
Thanks you for your answer, although I'm still in doubt about, which way to go with this.
I would like to do this the simplest way possible, but since I'm new to CO it's hard to figure out the right way. For the same reason I don't know much about the cycles either, but I'm on it to figure out how they work.
Are you sure there is no way to do this using validations?
Erne

PDF Document for cost object controlling

Hi Sap Gurus ,
please any body sent cost object controling pdf document to me.please help me .
Thanks & Regards
Sri

HI
Below links has some details relating to PC-COC
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/COPCIS/COPCIS.pdf
VVR

Cost object controlling

can any one tell me what is valuated sales order, and non valuated sales order?
and when we use these two scenarios?
thank you,
shankar chitupolu

Valuated sales order, and Un-Valuated sales order, these two will occur in Sales order related production scenarios, and when we use "Product cost by Sales order" in cost object controlling.
We use Product cost by Sales order:
If we want to know profit margin for particular sales order,
to track special sales costs,
to know funds committed to the sales order,
to know performance of sales order in costing point of view and
to get affects of delay in delivery.
This allows us to use Results Analysis.
In Valuated sales order:
Quantity and Value flow is combined,
Assembly costs can be seen at multilevel make to order production,
Inventory determination is simple,
It is similar to MTS Production,
enables more CO scenarios and logical decoupling of Co-PC and PP.
In Un-Valuated Sales order:
Quantity flow is separate from Value flow,
Costs are not posted immediately to sales order,
No variance for assigned production orders,
not good for Multilevel production process.
I hope U Got it...

Which infocube should I use for Controlling and Inventory?

Hi all,
I have several questions regarding Controlling and Supply chain management infocubes:
1. We need cost reports for the material ledger in order to meet the Brazilian compliance. I have found two infocubes:
CO-PC: Cost Object Controlling (0PC_C01)
CO-PC: Actual Costing / Material Ledger Costs (0COPC_C02)
What Infocube will help me to create a query that will meet our requirements? Which one is better?
2. We need a cost Center summary report, Expenses analysis, by product, cost center, business unit, region, plant, etc. and Expenses period comparison report. Which infocube will provide me that information for those reports, the CO-OM-CCA: Statistical Key Figures (0CCA_C03) or CO-OM-CCA: Costs and Allocations (0CCA_C11)?
3. What infocube will be needed to generate an inventory report (raw material, semi and finished goods)? Is it the Material Stocks/Movements (as of 3.0B) 0IC_C03?
Can I get an inventory report from the Purchasing data (0PUR_C01) infocube?
Thanks a lot
Vic

Hi
1)you need to check the requiered characteristics are available or not from these data sources which supply data to the above said cubes,,2
2)0CCA_C11
3)0IC_C03
You cann't get the inventory report from the purchasing data(purchasing data always talks about the vendor supplying inventory,it never talks about the production inventory)
Hope it helps
Thanks
Teja

MTO Sales order is NOT a COST OBJECT

Hi All,
I'm working on MTO process and i have some question.i would like to clarify MTO process.
If we are using Valuated MTO process and Sales order is NOT a COST OBJECT
1.Are we going to run material cost estimate for MTO materials?
2.How can i configure or make Sales order is NOT a Cost Object?
3.If Saleso order is not a cost object,how production order process will work from controlling point of you?are we going calculate WIP on production order and WIP is settled to sales order or FI/PCA?
4.Once production order is complete,Goods Receipt will post to Inventory or Sales order stock?
5.Once production order is complete,we are going to calculate variance on production orders?
Any help is appreciated...
Thanks,
Anusha

Hi,
When the MTO is created from sales end it will create the Planned order then it will convert to Production or Process order.
Once the production do GR or confirm Produced QTY the stock will go to Sales stock not to inventory stock.From there the sales can do PGI to customer.once PGI has done the account entry for the customer account will take place automatically.
Once the production completed the Production order need to calculate for the variance & the Settlement need to be done for the production order against the Material which you produced & sale to customer.The difference & variane amount will post to Price difference & moved to Product cost of the material automatically & COPA entry will be done automatically.
The MTO Material need to run for the Cost estimate also.
The WIP can be calculated & difference can be posted against the production order & the material which you produce.
The Process is same as the Make TO Stock scenario.Only the difference is the Production will get generate automatically when the MTO order get created & the stock will post to sales stock automatically.Rest the CO part is same as MTS scenario.
Regards,
Raj

Production costs for material with price control V

Dear all,
Can anyone pls tell me, how will the costing occur for a material produced in-house and having price control 'V' ? I am not able to see the target costs.
Also kindly tell me the settings to be done in CO, like target cost version, valuation variant, costing variant, etc.
Thank you,
Shrenik

Rather than giving my own versions I have compiled here SAP inputs. Pl let me know if you require any clarifications:
Costing variant has the following components:
<b>Define Costing Types
Define Valuation Variants
Define Date Control
Define Quantity Structure Control
Define Transfer Strategy
Define Reference Variants</b>
<u>Costing type:</u>
In the costing type, you define the purpose of a material cost estimate by specifying, for example, which field in the material master record the costing results can be transferred to:
Update Cost Estimate
Standard price Standard cost estimate (01)
Tax-based price Inventory cost estimate
Commercial price Inventory cost estimate
Price other than std price Modified standard cost estimate or
current cost estimate
No update Any cost estimate
Define Valuation Variants:
Define Valuation Variants
Here you create a valuation variant containing the parameters required for valuation of a cost estimate.
You also specify which costing sheet should be used to calculate overhead.
Valuation Strategies
Material valuation
Here you define the sequence in which the system searches for prices from the accounting view or costing view of the material master record to valuate materials. You can also access prices from purchasing info records and condition types.
For material cost estimates, you also specify whether additive costs can be added to the selected price.
With configurable/configured material components and with procurement alternatives, the sequence defined here is ignored if the strategy "price from purchasing info record" was selected, in which case that strategy is always executed first. For more information, refer to the SAP Library in the component Product Cost Planning under Raw Material Costing or Mixed Costing.
Activity Types / Processes
Here you define the sequence in which the system searches for prices in activity type planning or actual activity price calculation in Cost Center Accounting or Activity-Based Costing to valuate the utilized activity types and business processes.
You also specify which plan/actual version is used.
Subcontracting
Here you define the sequence in which the system searches for prices in the purchasing info record. In purchasing, quota arrangements are used to create a mixed price for materials that are manufactured with external vendors with parts provided by the customer. You can specify whether the quota of the individual vendors that are entered in the source list for the material to be processed should be determined through the planned quota arrangement or the actual quota arrangement.
External processing
Here you define the sequence in which the system searches for prices in the purchasing info record or routing operation for valuation of the external activities.
Strategy Sequence
You define the individual valuation methods for the valuation variant as strategy sequences. For the valuation of the material components you define a strategy sequence that reads the fields of the material master record in a particular sequence such as:
1. Planned price 1
2. Standard price
3. Moving price
The first price that is not zero is used to valuate the material component.
Target versions:
Target cost versions are used in the following ways:
In variance calculation:
To control which variance (total variance, production variances or planning variance) is calculated
To valuate unplanned scrap( scrap variance)
Unplanned scrap is valuated in the period-end closing activities when the variances are calculated. You can specify in a valuation variant for WIP and scrap which cost estimate you want to use to calculate the target costs for the valuation of unplanned scrap. You assign the valuation variant to target cost version 0 if you want to include it in the valuation of scrap.
When you are using a cost object hierarchy with active distribution, you use the target cost version to control which cost estimate the system uses to calculate the target costs, which are used as the basis for determining equivalences for actual cost distribution.
The actual costs collected at the level of the hierarchy are distributed across the orders in accordance with these equivalences. This distribution is proportional to the target costs for the cost element under which the actual costs are written. Actual costs for material costs are distributed in proportion to the target costs for the origin group, such as for the material, if you have entered an origin group in the costing view of the material master record and have set the indicator Material origin, for example.
If no target costs were calculated under this cost element, enter a cost element group in the target cost version. The actual costs are distributed in proportion to the target costs for this cost element group. This cost element group should be complete. If costs were updated under a cost element that is not in this cost element group, no distribution is possible.
You can calculate equivalences on the basis of SAP standard target cost versions 0, 1 and 3.
The standard system supplies the following target cost versions:
Target cost version 0 ( total variance)
The amount of the total variance generates a posting in Financial Accounting during settlement.
For this version, select actual costs as the control costs and standard cost estimate as the target costs.
Target cost version 1 ( production variance)
For this version you choose actual costs as the control costs and planned costs as the target costs.
Target cost version 2( planning variance)
With target cost version 2, the costs from the preliminary order cost estimate are interpreted as control costs.
For this version, select planned costs as the control costs and current cost estimate as the target costs. You cannot calculate planning variances for the product cost collector.
Target cost version 3 (production variance of the period)
You compare the planned costs of the period calculated on the basis of an alternative material cost estimate (such as a modified standard cost estimate) with the actual costs of the period on the basis of the yield delivered to stock in the period.
The base quantity for variance calculation is the yield.
For this version, you choose the actual costs as the control costs and the alternative material cost estimate as the target costs. To determine the alternative material cost estimate, enter a costing variant and choose a costing version.
The target cost version specifies which data is to be compared. The target cost version also specifies which variance variant is used and therefore which variance catagories are calculated. You can define a different target cost version for each controlling area

Can purchase order be cost object in any case ?

Hi,
My simple questions to you friends is ;
Can Purchase order be a cost object in any case ?
Plz reply
Thanks,
BKD

Hi,
You are mixing the terms. Cost object is a CO entity which is used to collect costs for further analysis. A classic example for it Cost Centre, Internal Order, etc. A purchase order is MM record, which could create CO document (commitment) if commitment management is activated for the controlling area. However, PO is not a CO object in any case.
Regards,
Eli

Report to check all cost object balances are Zero in Monthend

Dear Friends,
We are facing an issue in every monthend while doing FI and COPA reconciliation that some balances are left in cost objects. Can any one please suggest any single report if any which will show balances in all cost objects instead of individual reports for cost object. Also suggest tables to be used , Pro and cons of devoloping Z report for this requirement.
Thanks & Regards
Ravi

Check the following tcode
S_SL0_21000007 - Cost Elements: Breakdown by Company Code
This will provide you the balances lying in cost objects.
Regards,
Divraj

Which Cost Objects to hit in Controlling

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