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Production cost

rajesh_sutar2
Active Contributor
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Hi PP Experts,

Can anybody clear my doubts,

If I produced 100 units,then How I can I know all expenses for 1 unit.where I have to do setting.

What is exactly Planned cost & Actual cost.How it is calculated.

Accepted Solutions (0)

Answers (4)

Answers (4)

Former Member
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Hi,

Q: If I produced 100 units,then How I can I know all expenses for 1 unit.?

A: Use tcode KKBC_ORD. Input the Order no. System will show total cost with each activity wise.

Q: where I have to do setting.?

A: When you run std cost estimate by CK11N, system will estimate the cost for a single product. When you release the cost estimation, cost will update in material master. System will take cost from material master.

Q: What is exactly Planned cost & Actual cost.How it is calculated.

A: Planned cost means system will calculate planned cost by taking the cost from material master costing view2. Say Rs.10 in material master. If the required qty 10 means planned cost is Rs.100

Actual cost: When doing production variation will occur due to excess material consumption, excess man power. So actual cost to produce the material will be different. When do confirmation, you can do actual activity posting. So this is called actual cost.

Regards,

Dharma

Former Member
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Hi,

The Product Cost comes from :

Material cost ( input Raw Material which is direct used in production ),

Activities cost ( Operation ex:- Machine , Labour, power, etc..)

Overheads cost (Indirect cost (ind. Expenses) which is transfer through allocation to the product.)

Material cost ( input Raw Material which is direct used in production ),

Activities cost ( Operation ex:- Machine , Labour, power, etc..)

Overheads cost (Indirect cost (ind. Expenses) which is transfer through allocation to the product.)

1.. The material cost is purchase raw material cost/t. which is maintain in Material master.

2. Activities cost:-- which is come from activity rate.. Activity rate is calculate base on your input planning (KP06) and output planning(KP26). after executing the plan cycle..

3. Overhead cost :-- this cost is calculate in cost sheet..

when you calculate the material cost estimate through CK11N.. system will take the raw material cost from BOM, activity cost from Routing.. (based on your costing variant)and calculate the planned cost of that materials.

Edited by: Naresh Sharma on Oct 13, 2008 1:32 PM

Former Member
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Hi,

Based on the costing lot size it will do the costing. If your costing lot size is 1, then u can get the 1 FERT cost, if it is 100, you will get 100 FERT cost.

Planned cost is taken from your BOM material cost, Activity costs were taken from the routing standard values. But actual cost is taken from the goods issue for that particular production order, Actual Confirmation hours.

Regards,

V. Suresh

Former Member
0 Kudos

HI,

Actual Cost for product comes from :

Material cost ( taken from Goods Issue),

Activities cost ( from Confirmation)

Overheads ( as per definition in costing sheet).

This is actually cost incurred in the Shop floor.

Planned cost comes from BOM and Routiing by taking the planned values of material quanrtities and Times for activities.

In production order, Cost will appear for the Quantity u have given.

Kiran