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actual costing/standard costing

Former Member
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Dear all,

can anybody sugg me what is actual costing&standard costing.and what's difference between two.

regards

usha.

Accepted Solutions (0)

Answers (2)

Answers (2)

former_member184655
Active Contributor
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Dear UshaRani,

Standard Cost/Product Cost = Materials Cost(Raw Materials Cost Semi Finished Materials Cost)

Activity Cost(Operation Cost)

1.For all your ROH - Raw materials maintain price control indicator as V and enter the value as Planned

Price 1 and Planned Price Date 1 under Costing 2 View - Planned price tab.

2.For all your Inhouse manufactured semi-Finished(HALB) and In house manufactured Finished materials

(FERT) maintain price control indicator as S and dont enter any value directly in accouting view.

3.For activity's cost(Operation Cost) comes via ---> work centre in which the operation is performed.

4.A cost centre and an activity type where a rate has been maintained for that cost centre and activity type

(T code KP26) will be linked to the work centre under costing tab.

5.As per the operation time,the cost is getting calculated.

6.Overhead cost is the indirect cost which's spend during production.

7.So when the cost rollup is taken using T code CK40N (or else using CK11N estimating & CK24 for

marking and release) all this cost gets added and the materials standard cost is calculated and same is

marked in Costing 2 view under Current Planned price column.

8.Standard cost estimate is done for FERT materials so that automatically the system does for Semi-

Finished products also.

9.Actual Costing is nothing but the value of the materials( Raw-materials cost) when production

confirmation is made for the operation.

10. Say there's a raw material X whose planned price is Rs 10/,so while doing GR for this material Let's

assume for a quantity of 10 the value is Rs120/-,so now the actual value becomes 120/10 = Rs 12.

I hope this will help you to some extent.

Regards

Mangalraj.S

Former Member
0 Kudos

Hi Usha,

1) Standard cost is the value of the product which is estimated on bases of previous records or some estimates. whenever you create a production order straight away planned cost will get calucuted based on standard estimate.

2) Whenever you issue the raw material or confirm the activity, it will caluculate actual cost (price of the material will flow from material master and activity cost will flow from activity planning). This is actual cost.

Diffrenence between 1 and 2 is variance, which will flow to copa.

I hope i have answered your question, if not get back to me.

Regards

Vivek.