Product costing

[Former Member]

Dear all,

In my client place, the client wants the costing of the product based on the following parameters:

Raw Material Cost(which includes Packing cost) xxxxx

Add: Raw Material Overhead xxxxx

Prime Cost xxxxx

Add: Factory Overheads

Factory Rent xxxxx

Factory Power xxxxx

Indirect Material xxxxx

Indirect Wages xxxxx

Drawing Office Salary xxxxx

Factory Insurance xxxxx

Factory Asset depreciation xxxxx xxxxx

Add: Administration overhead

Office Rent xxxxx

Asset Depreciation xxxxx

General charges xxxxx

Audit Fees xxxxx

Bank Charges xxxxx

Other Office Expenses xxxxx

Cost of Goods Manufactured xxxxx

The thing is the items that are included in the factory overhead and admin overhead, we can take it as percentage but the client wants the actual cost of those expenses to be captured while doing product costing. For example, some portion of the actual cost of factory rent, factory power is to be captured while doing product costing.

How to do?

please suggest me.

Thanks & Regards,

AR

[Former Member]

Hi all gurus,

ya what Dinabandhu Behera said is correct as per my opinion, it is possible through cost sheet in sap, Define Cost Sheet.

thanqu

raj

[Former Member]

Hello,

It can be done thru Template. In Template you can assign formula to allocate actual expenes as overhead.

Thanks

Ravi

[Former Member]

Hello

This is possibe through designing of costing sheet, the tree you are given is to mape in the costing sheet,,,,,that is bit of subjective in nature

Regards

Dinabandhu

[Former Member]

Hi,

You may need the following things in place:

Actual Costing

Primary Cost Component Split

Splitting (may be requried)

If you have the above components active you can satisfy the requirement to a large extent.

Hope this helps you.

varadharajan

[Former Member]

Hi AR,

You're question boils down to: "How does one do costing inside SAP", which is really a bit wide?

The short answer is that you use the functionality of product costing with a quantity structure to calculate production costs. You can include material costs from the BOM, direct Labour and direct overheads from the routing, and indirect overheads from the overhead costing sheet.

You need to decide whether you are following an engineer to order, make to sales order, make to production order or make to stock costing scenario. Then there is the logistics decision of whether to produce using project system, discrete manufacturing in PP or process manufacturing in PP-PI....

[Former Member]

Hello AR

Costing is industry & product specific.

If you provide those details along with SAP system version and modules used, I will try to guide you.

Ambadas