Standard Cost Estimate

[Former Member]

HI Sap Gurus,

Hello Guru,I want clarification regarding Costing Run.

When we run the costing run how its takes cost of Raw Material ,other raw material consumable and Other expense like material overhead,Adminstration overhead.

In BOM wt are the Raw material we have to maintain .

In Routing which one we have take in Routing.

In Cost sheet which Gl Account we have to select .

After Costing Run how it will updated in all semi Finished product

Then when issue the Raw material to production ,After complication of that process .Cost of goods manufacture will Update ,This COGM how it will updates price , where it will pick this amount .

Can we Run Standard Cost Estimate Product Wise

Pls tel me how it Affect .

Thanks and Regards

Giri

[former_member184655]

Dear Girish,

Product Cost = Materials Cost(Raw Materials Cost Semi Finished Materials Cost) Activity Cost

(Operation Cost) + Overhead Cost

Raw Materials cost get's picked from the material master.

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(price) directly in accouting view in

the material master.

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,which's used by the work center,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.

Also check the below given link regarding Cost center creation,activity type creation,linking Activity type &

cost center.

[Acitivity Type+Cost center|]

I hope this will be helping you to some extent.

Regards

Mangalraj.S

[Former Member]

hi mangalarj,

nice explanation, i have a small doubt for ex: u have 2 raw materials to make a finished goods, RM1 & RM2, to make a finished good that is FG. here RM1 = 100, & RM2 = 60. I assaigned activity 10/- per hour in activity in KP26, as u said. but when ever i cheked in CK11N, it will show the cost of the FG. here my doubt is can i run marking and release for RM1 & RM2 seperately then only the cost updated to the material master. is it correct. otherwise system uptaded with out marking and release?

can u give some info.

thanqu

raj

[former_member184655]

Dear Raja Ramesh,

For ROH - Raw materials neither the Cost estimate calculation nor Markup & Release is required.

Give the planned price alone,Say in your case give Rs 100/- for Raw material1 & Rs 60/- for the raw

material 2.Once when the stock is uploaded for those material either using 561 movement or while doing

GR (101 movement) the value will be mentioned,say if in your company if the inittail stock is uploaded

using 561 movement for raw material1 for 100 quantity and suppose if it's total value is 9800 means then

the MAP of that material becomes (9800/100) = Rs 98/-.

So the Planned price becomes 100 and the actual becomes 98.

So again when some GR is carried out for ROH1 means,based on the PR,the quantity and it's value will be

entered.Say again some 100 quantity is recieved and it's value is say 10200,now the MAP will be

980010200/(100100) = 20000/200 = Rs 100/-

Still you have not assigned any points for the same solution which I have given for your thread regarding

Price updating in material master.,Please check & do it if satisfied.

Still if you have any problem means revert back.

Regards

Mangalraj.S

[Former Member]

Dear Mangalraj,

Its really Good explanation thanks for u r wonderful Reply if i have any i will ask u pls help me

Thanks and Regards

Girish