WIP Calculation without implementing Product Costing

Hi Gurus
Can you tell me how to calculate WIP cost without implementing Product Costing.
Thanks and Regards
Rahul Jain

Hello Rahul,
What was the answer for your concern? would be interesting to know.
Regards,

Similar Messages

Cost sheet without activity(Product costing)

Hi,
In our company code all earlier created cost sheets have activities, which are assigned in cost element group. And in base of the cost sheet, this cost element group has been assigned.
Now in the new process, for which the cost sheet to be prepared, there are only overheads and no activities.
Is it necessary to create cost element group?
Is it necessary to assign the cost element group in Base?
Any activity to be created by assigning zero value in KP26 for routing purpose?
Please suggest.
Prakash.

Hi,
Yes. You need to assign the cost element group where the base cost shall be available to calculate the surcharge on the basis of overhead percentages.
Activities shall not be found in Costing sheet. It is assigned in work center and KP26, you enter the planned prices. That is separate. In costing sheet you need to define overhead percentages.
Trust this helps much!
Cheers!

Product Costing without PP ( Production Planning ) Module.

Is it possible to implement product costing without PP being implemented ? If yes then how and what steps and if no then why is it not possible ?
Edited by: sapr3india on Mar 25, 2010 11:42 PM

HI,
Yes, It can be done using the CO Production order.
Regards

Splitting without product cost collector

Hello All,
Can anybody tell me how a splitting of a existing production order can be done without a product cost collector. i tried splitting but it is doing with product cost collector.
Thank you.
Alok Tiwari

Hi Alok,
This is from SAP documentation:
Costs
Actual costs
The costs of the parent and child orders are collected in a common Product Cost Collector. This is because the parent order, as a rule, has already caused actual costs before the split took place. If the actual costs were collected in the parent order before the split, and separately in the parent/child orders after the split, then the materials of the parent order would have excessively high costs per piece, and the child order correspondingly lower costs. As a result, settlement for each order would result in unwanted variances in controlling.
So, as you can see this is the way he system works, and for good reasons.
Why is that a problem to you?

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.

Product Costing and Production Planning

Hi,
Is Product Costing absolutely required before implementing Production Planning, specifically PP orders? My client does not want to plan costs or need any cost estimates. They want to use a PP order to check availability for a BOM, and then issue it out to an external vendor for services. After this material is processed by the external vendor, he would ship it back and we would be doing a goods receipt at the parent level of the BOM. The whole purpose of this is to get the accurate price of the BOM parent which would include all service costs. This parent would finally be sold via the regular SD sales order process. Our Logisitics consultant suggested that the only way this could be accomplished is a PP order. All this looks okay, but he also mentioned that a PP order cannot work without Product Costing and the process cant be accomplished CO-PC. I am unable to grasp why SAP would force us to have costing when the client doesnt need any cost estimates, planning etc. Could any one please tell me if we need CO-PC for this scenario?

Dear SAPFicon,
Technically, to run PP without using product cost planning would cause a lot of problems during business process of production order. Because, once a production order is created then the data structured is freezed in the PO and if there is any missing data it will cause errors. Any errors in production order would stop the following transactions. We never know what would be the error level of the production order. The worst case, the production or should be cancel and start it all over again.
But by using product costing or product cost planning, this is a preliminary step to prevent and eliminate any error of the products tobe produced.
So, ideally, there is one person in charge to ensure that the products which be produced in the production orders are free of error.
So, the product costing is an integrated module that take data from variouse module such as PP, MM, CO, HR.
The product costing use the Logistic master data such as folllowing;
1. Bill of material
2. Routing
3. Work center
4. Material master
How you can say, that running PP without PC will run, while the to run the smooth production order, you need to mandatory parameter in Material Master that belong to Costing area.
Without having product costing, I can assure that your client will trap in a lot of troubles with their business process.
Please see the online documentation for product costing for a better overview or you are welcome to ask again
Regards,
Irhasni

Target Cost Verion in Product Cost

Hi,
I'm not able to create Target Cost Version (1,2,3.....) in variance Calculation pertaining to Product Costing.
I'm getting this message:
Version 1000 1 not intended to be used as the target cost version
Message no. KQ243
Diagnosis
The specified target cost version has not been flagged in central version maintenance as suitable for variance calculation.
Procedure
1. Check the entries in the central version table.
2. If appropriate, flag the version as suitable for variance calculation.
Please help & guide urgently.
Regards,
Viki
[email protected]

Try running a variance analysis, and see if it civd you an error message. typically this occurs when a SCE estimate was created after the process/production order was created. So check the dates of the two orders that you have, and compare with the date of the SCE CREATION.

Service Product Cost & Profitability

Dear Experts,
I am having the following situation.
1) My Service product is relevant for cost but not for CATS entry.
2) Can I maintain a standard cost related to a service product?
I evaluated the option of replicating the service product to R/3 and then maintain an activity corresponding to a service product. This activity will have a cost attached.
But when the service order is saved , it creates an internal order in R/3 but this internal order does not have any information about the service product.
How do I post the revenue and cost for my service order?
Regards,
Ambarish

Dear Kandan,
1.Product Cost Collector is one of the master data in REM.
2.After material master,BOM,Rate routing,Production versions are created for the HALB & FERT item's,then the next step will be
product cost collector creation using KKF6N.
3.The controlling level for product cost collector will be Production version.
4.For each Production version an individual Product Cost Collector can be created.
5.Without a product cost collector you cannot carryout backflushing for an Inhouse manufactured items.
6.After backflushing,all the cost for producing the product will be saved(getting accumulated) in this product cost collector.
I hope this will clear all your doubts.
Regards
Mangalraj.S

Target costs for product cost collector

hi,
can anyone tell me when are the target costs updated for product cost collector. it is after we post actual costs or after we calculate variance.
Thanks

Hi Elaine,
Thankyou very much for the Information. In our case when we create new product cost collector and cost it and post actual costs to it, system is showing target costs on the product cost collector even before variance calculation but for product cost collectors which are existing from long time system is not showing target costs after we post actual costs. we have created new cost component structure recently and its active from april 1. does this have any impact on the target costs. Please let me know if you have any idea on this.
Thanks,

Can product costing be used in service industry?

where a material master is being maintained (type DIEN) for services provided, can product costing be used for services? what pre-requisites are essential to implement product costing?

yep, that I assumed that was the category. I meant, What are you trying to do? Is this a webservices specific question or a question about how to use Sun Java Studio Enterprise and Web Service?? If this is a Web Services specific question, try posting to the Web Services forum.
http://forum.java.sun.com/forum.jspa?forumID=331
I searched this forum for postings related to your question but did not find much.

Product costing Scenario

Dear Experts,
I have a basic understanding that to calculate Material cost estimate data from MM and PP is required.From MM we will get material component data thu BOM and from PP we will get data for activity performed during production thru routing.
Now data from BOM is available but activities are not defined in the system. One plant is equal to 1 work center and all overheads are booked at company code level thru jv irrespective of the nature i.e direct or indirect overheads.No overhead cost is booked against process order currently.
I have to implement Product costing and below are the difficulties I`m facing:
1. Which overheads are normally booked against:
process orders
at company code level against production/service cost centers.
2. The production process of FG`s is muti stage but only 1 work center is created for 1 plant. In 1 process cycle at different stages different fg`s are produced. Is the approach of work center is correct or i have to change it.
3. I need to define cost center, what is the basic funda to consider what should be the cost center.
4. To create cost component structure what should be the things to consider.
Looking forward for quick suggestions.....
Regards
Nitisha

Hi Nitisha,
1. Which overheads are normally booked against:
You have to book direct and indirect over heads through costing sheet. First you have to check with client how they want to charge over heads, based on information provided you have to define cost sheet and attached this in the variant.
2. The production process of FG`s is muti stage but only 1 work center is created for 1 plant. In 1 process cycle at different stages different fg`s are produced. Is the approach of work center is correct or i have to change it.
If the process are multiple stages, then you have to create multiple work centres.
3. I need to define cost center, what is the basic funda to consider what should be the cost center
You can define cost centre based on functional side or physical location or allocation criteria. You can find lot of information about it in SCN. So search it.
4. To create cost component structure what should be the things to consider.
First of all how your costing information should display. Based on this you have to create cost component structure. Basically it breaks up the costs i.e. material costs, process costs and overheads. In this you can further sub divide.
Regards,
Mukthar

Product costing in Sea food industries

Hello Gurus,
Please let me know is there any difference to implement product costing for Sea food industries.if any one have specific material
please share with me.
Thanks

Hi,
1.U run the Std Cost estimate for the materials/orders for a given period. Once u mark and release, this Std Cost Estimate will become the std cost.
2. Repetitive Manufacturing indicates, u produce material in more or less in std procedure in terms of proceeses, material components and other activities over a period of time. Material Costing by period may be better option for these industries...
Eg: Chemical Industries, Auto Component Industries etc...
Regards
Sudhakar Reddy

Function module for calculating planned and actual cost of production order

Hi ,
Do we have any standard function module for calculating planned and actual cost for production order?
i need to implement this in a Z-report.
Thanks
Srini

Hi,
try below function module
CRMCO_GET_PLAN_ACTUAL_COSTS
CO_IH_GET_PLANNED_COSTS_TOTAL
Regards,
Sankaran

MESSAGE ERROR: WIP a target cost only possible with Product Cost by Period

I work with orders assign to WBS Element (Non-valuated stock).
If I enter confirmation to an order created, and then execute KKAX transaction to calculate WIP, the system shows this error message u201Cu2018WIP a target cost only possible with Product Cost by Periodu2019u201D, but actually the result has been calculated ok.
If WIP is executed collectively KKAO the error message is the same but the result is not calculated
Everything suggests that what we want is possible, but the error doesnu2019t disappear
Does anyone know what could be reason for the error?
Thanks

Hi
Check your RA key and WIP customizing... WIP at target cost is possible only in Product cost by period
Check your settlement rule in Prod Order.. I guess it would be FUL and not PER.. FUL settlement means you are in product cost by order.. There seems to be a mismatch between your settlement type (FUL/PER) and WIP config
Moreover, if your stock is non valuated, do you at all need to calculate WIP for prod orders? I dont think so
Ajay M

Wip calculation in production Order

Hai friends
Can any one tell this 2 tcodes in Co . tell me these two codes KKAX,
KKAO why we use and how to calculate tell me clearly WIP functonality.

Hi,
WIP :
The WIP calculation process valuates the unfinished products (work in process).
In the Product Cost by Order component, the work in process is valuated at actual costs. Work in process is the difference between the debit and credit of an order that has not been completely delivered. This method determines the work in process for each production order by calculating the difference between the actual costs incurred and the actual costs settled (that is, the difference between the debits for goods issues, internal activity allocations, external activities, and overhead on the one hand, and the credits for goods receipts on the other). Once the last part of the order lot has been delivered to stock, any remaining work in process must be canceled so that the order costs can properly be settled to stock.
The status of the order determines whether WIP calculation creates or cancels the work in process.
u2022 If the order has the status REL (released), the system can calculate work in process.
u2022 Once the order receives the status DLV (Delivered) or TECO (Technically completed), the work in process calculated in a previous period is canceled.
for this you have calculate WIP for every order.
KKAX- this T.code is used for single order process.
KKAO-this T.code is used for collective process,here you process by plant.
Hope this is helps you.
Thanks,
Rau

WIP Calculation without implementing Product Costing

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