SAP Product Costing Configuration
SAP CO Product Costing module is used to find the value of internal cost of products. It is also used for profitability and management accounting for production. The basics of Product Costing is Cost Center Planning. The goal of cost center planning is to plan total dollars and quantities in.
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INTRODUCTION
A Warm Welcome Friends.You are going to love this book and we have taken great efforts to ensure that we present the configuration in a very simple yet detailed manner.
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Product costing module of SAP has eased out all hassles of costing a manufactured product. Product costing module uses data for valuation from the Production planning (PP) module.
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The Product Planning Module maintains the Bill of Material and Routing or the Master Recipe. Product Cost primarily consists of Material Cost, Labor cost and Overhead cost
To arrive at the material cost, SAP picks up the quantity of raw and packing material required from the Bill of Material. It then valuates this quantity with the various prices available in the material master in accordance with the strategy specified in customizing.
In a like manner it does the same to arrive at the labor cost. The time required for each operation is specified in the routing or recipe. This quantity is multiplied by the activity prices maintained in the cost center accounting module. We will cover all this and more in this document.
We will also cover product cost planning, cost object controlling by period (repetitive manufacturing), cost object controlling by order, cost object controlling by sales order and configuration settings for co-product costing.
We had configured controlling area 9100, in the document on cost center accounting. We will now do the product-costing configuration in controlling area 9100.
INTRODUCTION............................................................ 5
A) Product Cost Planning ............................................. 6
1. Basic Settings for Material Costing .......................... 6
1.1 Maintain Overhead Cost Elements ....................... 6
1.2 Define Calculation Bases .................................... 9
1.3 Define Percentage Overhead Rates .................. 12
1.4 Define Quantity-Based Overhead Rates ................ 14
1.5 Define Credits .......................................................15
1.6 Define Origin Groups (Optional) ........................... 17
1.7 Define Costing Sheets ......................................... 18
1.8 Define Overhead Keys ......................................... 20
1.9 Define Overhead Groups ..................................... 21
1.10 Define Cost Component Structure ......................... 22
2. Material Cost Estimate with Quantity Structure ........... 38
2.1 Define Costing Types ............................................... 38
2.2 Define Valuation Variants .......................................... 48
2.3 Define Date Control .................................................55
2.4 Define Quantity Structure Control .......................... 57
2.5 Define Transfer Strategy ........................................ 60
2.6 Define Reference Variants (Optional) ...................... 62
2.7 Define Costing Variants ........................................... 64
3. Selected Functions in Material Costing .....................71
3.1 Activate Cross-Company Costing (optional) .............. 71
3.2 Activate Cost Component Split in Controlling Area Currency (Optional)......... 72
3.3 Define Quantity Structure Types for Mixed Costing (optional)..................... 73
3.4 Define Costing Versions (optional) .......................................................... 75
3.5 Define Source Structure in Joint Production (optional) ............................ 76
B) Cost Object Controlling ...................................................................... 80
1. Product Cost by Order ....................................................................... 80
1.1 Manufacturing orders ................................................................... 80
1.1.1 Check Costing Variants for Manufacturing Orders (PP) ................ 80
1.1.2 Check Order Types .................................................................. 89
1.1.3 Define Goods Received Valuation for Order Delivery ................ 90
1.2 Work in Process .......................................................................... 91
1.2.1 Define Results Analysis Keys ................................................... 91
1.2.2 Define Cost Elements for WIP Calculation .................................. 92
1.2.3 Define Results Analysis Versions ............................................ 96
1.2.4 Define Valuation Method (Actual Costs) ..................................... 100
1.2.5 Define Line Ids .................................................................. 102
1.2.6 Define Assignment .................................................................. 103
1.2.7 Define Update ..................................................................... 104
1.2.8 Define Posting Rules for Settling Work in Process ..................... 107
1.2.9 Define Number Ranges ............................................................. 109
1.3 Variance Calculation ....................................................................... 109
1.3.1 Define Variance Keys .......................................................... 109
1.3.2 Define Default Variance Keys for Plants ............................. 110
1.3.3 Check Variance Variants .................................................... 111
1.3.4 Define Valuation Variant for WIP and Scrap (Target Costs) ......... 113
1.3.5 Define Order type dependent parameters................................ 114
1.3.6 Define Target Cost Versions ........................................................ 115
1.3.7 Define Number Ranges for Variance Documents ......................... 117
1.4 Settlement ................................................................................... 118
1.4.1 Create Settlement Profile ............................................................. 118
1.4.2 Create PA Transfer Structure ...................................................... 120
1.4.3 Maintain Number Ranges for Settlement Documents .................. 122
2. Product Cost by period ....................................................................... 124
2.1 Product cost collectors ................................................................. 124
2.1.1 Check Costing Variants for Product Cost Collectors ........................ 124
2.1.2 Check Order Types ..................................................................... 143
2.1.3 Define Cost-Accounting-Relevant Default Values for Order Types and Plants......150
2.1.4 Check Control Data for Repetitive Manufacturing Profiles ................................ 152
2.1.5 Activate Generation of Cost Log in Repetitive Manufacturing ............................156
2.1.6 Define Goods Received Valuation for Order Delivery ........................................ 157
2.2 Work in Process ................................................................................................. 157
2.2.1 Define Results Analysis Keys ............................................................................157
2.2.2 Define Cost Elements for WIP Calculation .................................................158
2.2.3 Define Results Analysis Versions ............................................................. 158
2.2.4 Define Valuation Method (Target Costs) ................................................... 158
2.2.5 Define Valuation Variant for WIP and Scrap (Target Costs) (Optional) ................ 161
2.2.6 Assignment of Valuation Variant for WIP (Optional) ................................ 161
2.2.7 Define Line Ids ....................................................................................... 162
2.2.8 Define Assignment ................................................................................... 162
2.2.9 Define Update .................................................................................... 162
2.2.10 Define Posting Rules for Settling Work in Process ................................. 162
2.2.11 Define Number ranges ...................................................................... 162
2.3 Variance Calculation ............................................................................ 162
2.3.1 Define Variance Keys .................................................................... 162
2.3.2 Define Default Variance Keys for Plants .............................................. 163
2.3.3 Define Variance Variants .............................................................. 163
2.3.4 Define Target Cost Versions ................................................................... 163
2.3.5 Define Number Ranges for Variance Documents .............................. 163
2.4 Settlement ................................................................................... 163
2.4.1 Create Settlement Profile ..................................................................163
2.4.2 Create PA Transfer Structure .......................................... 163
2.4.3 Maintain Number Ranges for Settlement Documents ............................ 163
3. Product Cost by Sales Order ..............................................................163
3.1 Control of Sales-Order-Related Production/ Product Cost by Sales Order................ 163
3.1.1 Check Account Assignment Categories ................................................. 163
3.1.2 Check Requirements Classes ...................................... 165
3.1.3 Check Requirements Types ................................................. 167
3.1.4 Check Control of Requirements Type Determination ...................................... 168
3.1.5 Check Planning Strategies (selection of reqt. type through MRP group) ....................... 169
3.1.6 Check Strategy Groups (selection of reqt. type through MRP group) (optional) ........................... 171
3.2 Preliminary Costing and Order BOM Costing .................................. 172
3.2.1 Check Costing Type ................................................................... 172
3.2.2 Check Costing Variants for Product Costing .................................. 174
3.3 Results Analysis ................................................................................. 178
3.3.1 Create Results Analysis Keys ....................................................... 179
3.3.2 Define Cost Elements for Results Analysis ............................................. 179
3.3.3 Define Results Analysis Versions ....................................................... 179
3.3.4 Define Valuation Methods for Results Analysis ................................................. 179
3.3.5 Define Line IDs ............................................................................................ 179
3.3.6 Define Assignment for Results Analysis ................................................. 179
3.3.7 Define Update for Results Analysis ....................................................... 179
3.3.8 Define Posting Rules for Settlement to Financial Accounting .......................... 179
3.3.9 Maintain Number Ranges for Results Analysis Documents ...................................179
3.4 Settlement ............................................................................................................ 179
3.4.1 Create PA Transfer Structure ...................................................................... 179
3.4.2 Create Settlement Profile ........................................................................ 181
C) Information system ............................................................................... 183
1.1 Maintain Summarization Hierarchies .......................................... 183
D) Appendix .................................................................................. 187
1. Customizing settings in OBYC ............................................................... 187
2. Attach primary cost component structure to version in controlling area (Optional)............189
Contents:
C088 Settlement Prod Cost Collector Collective
CK11N Create Material Cost Estimate
CK13N Display Material Cost Estimate
CK24 Mark Future Price
CK24 Release Price Update
CK40N Edit Costing Run
CK44 Delete Costing run
CKAPP01 Display Materials to Be Costed
CKAPP03 Display Sales Order to Be Costed
CKR1 Reorganization of Cost Estimate
CO03 Display PP Production Order
CO88 Settlement Production Order Collective
KK87 Settlement of Prod. Cost Coll – Individual
KKAO Calculate WIP for PCC Coll
KKAO Calculate WIP Production Order Collective
KKAQ Display WIP for CO Production Order Coll.
KKAS Calculate WIP for PCC – Individual
KKAT Display WIP for Product Cost – Collective
KKAX Calculate WIP Individually
KKAY Display WIP for Prod. Order – Individual
KKRV Data Collection for Product DrillDown
KKS1 Variance Calculation Production Order – Collective
KKS2 Variance calculation Production Order -individual
KKS5 Variance Calculation Product Cost Collectors – Collective
KKS6 Variance Calculation Product Cost Collector
KO88 Actual Settlement Prod. Order Indiv.
KRMI Actual Costs on Order Line Items
S_ALR_87013046 Material Cost Estimate vs Preliminary Order Cost Estimate
S_ALR_87013099 Order Plan_Actual Comparison
S_ALR_87013127 List of Orders
S_ALR_87099931 Price versus Cost estimate
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