product costing

[Former Member]

can anybody explain steps for product costing

[Former Member]

hai,

anybody explain how the consumption of r.minventory of r.m,inventory of f.g,cogm accounting takes place kindly explain.

[former_member184655]

Dear Balaram,

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

(Operation Cost) + Overhead Cost.

1.Raw Materials cost get's picked from the material master.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 at 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 spent 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.Also check the below given link regarding Cost center creation,activity type creation,linking Activity type

cost center.

1.Create a Cost center using T code - KS01.

2.Create an activity type using T code - KL01.

3.Assign the Rates for an activity type & cost center combination using T code KP26.

4.In the input screen of T code KP26 ,enter version as 0, from period 1 and to period as 12 and the Fiscal

Year as 2008,enter the cost center, activity type click on overview screen (F5)---> enter the per hour Rate

under Fixed price and set value as 2 for distribution key and plan price indicator as 3.

5.After performing this ,while creating the work center ,this combination of activity type & cost center

should be assigned.Then while creating routing/task list this work center can assigned for performing

operations.

Check with this & revert back if you need any further help.

Regards

Mangalraj.S

[rupesh_brahmankar3]

Dear,

Product costing helps you in determining the cost of producing a product. You can use them a standard for all actual production.

Step 1:Revaluation at Actual Prices :MFN1

Step 2:Overhead Calculation :KGI2 : CO43

Step 3:Work in Process KKAX : KKAO

Step 4:Variances :KKS2 : KKS1

Step 5:Settlement :KO88 : CO88

These are the regular steps followed in period end closing depending business process.

If it is REM,

Then create a product cost collector using KKF6N.

REM order settlement kk87

See this link

http://www50.sap.com/businessmaps/3072FFA5718E4B76B9E92423A45DE015.htm

http://help.sap.com/bp_bblibrary/600/html/M08_EN_DE.htm

Regards,

R.Brahmankar

[Former Member]

Hi,

Pls find basic things regarding Product Costing :

Product Cost = Materials Cost(ROH + HALB Materials Cost)+

Activity Cost (Operation Cost)+Overhead Cost.

1.Raw materials cost are generally entered as Planned price

along with the valid from date in Costing 2 view,and price

control indicator is "V".

2.For HALB Materials Price control indcator will be S & V for

Inhouse manufactured and externally processed materials

respectively.

3.Activity cost is the cost incurred in performing individual

operation.

This cost is captured via the work center which we mention in

each operation.A Cost centre and an appropriate activity type

is assigned in the work centre.

4.Proper Cost should be assigned for the combination of

Activity type and Cost centre.

5.Overhead cost is the indirect cost that we capture according

to the customer's requirement.

6.If particular items for certain products alone should not be

considered for costing means,then we can achieve this using

costing relevancy indicator for the BOM items.

Overhead group is aasigned in Costing1 view.

Related T codes are CK11N,CK40N,CK24.

Hope this helps.

Pls. revert if you need more details and any doubt.

Regards,

Tejas