Product Cost collector/Standard cost Estimate

[Former Member]

*I would like to know, standard Cost Estimate run is necessary for every period, if product Cost Collector is used?

My requirement is, No material updation required in every period. I mean if product cost collector is used as cost object, user do not want to run the stndard cost estimate for every period.

Is it possible?*

[Former Member · Accepted solution]

In general Standard cost estimate is required to release every period end, assuming that there will be changes in costs of cost components. Like frequent changes in material price or price changes in labor costs etc.

If there is no change in these things and we don't face regular changes in the cost of product, it is not necessary to create new estimate for every period.

There is no link between weather you are using Product cost collector or Production order or Sales order for cost object. Standard cost estimation is common for all types of scenarios.

To use same cost estimate for more than one period, just you have to change the validity period of the cost estimate in costing variant, by changing "Date control".

For this in IMG you have to go "Costing Variant: Components" in this go to "Define Date Control" (OKK6).

Here for your date control, Change "Costing Date To" by selecting

"U End of Fiscal year in which "Costing date from falls"" or

"P End of Current fiscal year" or

"Q Maximum Value"

according to your requirement.

or

You can change this values at the time of creation of cost estimate, if you activated this Manual entry check mark for this dates.

When your cost estimate is valid for whole year then no need to mark and release it for every period.

I hope U got....

[Former Member]

Use Transaction MF30 to cost product cost collector.

You cannot mark and release the cost estimate of product cost collector. (Because it has costing variant PREM)

Only the goods movements for this material are valuated at this cost.

You can do releasing for a whole year by giving the validity dates while doing the cost estimate. Marking and releasing can only be done for a costing variant that updates the standard cost (PPC1 in IDES)

Therefore standard cost estimate is not required every month if you give the validity date for whole year.

[Former Member]

The PCC behaves as a Cost Object, collecing costs that would otherwise sit on the Order. This does not mandate costing the material each period. You can cost it once a year and let the PCC collect costs.

If ML is active, the PCC settles costs (and thus collects variances) for each material at month-end, which goes into the Actual Costing.

Cheers.

[Former Member]

Thanks for Answer.

we are using the Prouct Cost collector as cost object and repetitive scenerio adopted. when the user confirm the prodcution, system does not allow to confirm the production if standad cost estiamte is not available for period in which the goods being confirm.

User requirement is , not run the standard cost estimate run for every period. plz explain

[Former Member]

Is there a problem costing the material for the whole year at the start of a year?

Just cost the material for say 2009 in Jan itself... that rate will apply for the whole year.

Cheers.

[Former Member]

Thanks

what about the marking and release of the cost. can we release the price for whole the year?