Descrete mfg.- production order

[Former Member]

How, we are making cost roll up In Descrete Mfg. while making Production Order?

[rupesh_brahmankar3 · Accepted solution]

HI,

we carryout the Cost roll up using CK40N T code for

our Finished Product,automatically the Semi Finished product

also gets costed and its standard price also gets stamped after Releasing.

So In Order creation,you will be able to see the Planned Cost

for the raw materials and the dependent requirements,activity

costs.

Regards,

R.brahmankar

[Former Member]

Hi

The cost roll up is done like this,

1. Raw material cost

2. Process cost ( Defined by Activity price)

3.Over head cost (% of overhead will be defined either plant wise or material wise)

4.Sub-contracting cost will be added thro' purchase info record ( if the material processed any of the operation out side)

All of the above costs will be coming under Cost of Goods Manufactured.

After adding the sales related costs it will become Cost of Goods sold.

By doing CK11N / CK40N you can calculate the planned cost of a material.

When we do production and confirmation the actual costs will be calculated.

If there is any difference in the cost of Planned Vs Actual it will go to the price difference account.

Regards

Bala