Costing

[Former Member]

Dear All,

For our project , we are costing thru network and activities i.e assigning WC and material to activities and calculating planned cost for whole project. I want to ask whether this is the best / easiest way or method to do costing in SAP PS or does it have certain disadvantages?

Regards,

[Former Member · Accepted solution]

Hi,

The network costing is used to determine, automatically, the planned costs for the activities and operating resources entered in network activities, activity elements, and components.

When you release the project ,automatically a reservation or Reservation/PR will be created depending upon the settings and you can convert the Reservation after running MRP either to Planned Order or Purchase requisition.If you to generate PR then a Res/PR will be generated and you can convert that into PO.

While entering the work center in the internal activity and no of hrs you can plan your internal labor cost and while confirimg the activity you will get the actual costs.

Thanks,

Muzamil

[stheurkar]

Dear Rohit,

I think you can go for Network cost planning.

By using NCP you can plan services & material required for project execution.Also by using internal activity you can book internal labour cost.

Just go through below link which will give you focus on various Cost Planning Methods available in PS.

http://help.sap.com/saphelp_46C/helpdata/EN/86/98853478616434e10000009b38f83b/frameset.htm

Hope it's useful.

Regards,

Sandeep

[Former Member]

Hi Rohit,

Most of the clients use CJ40 ( Hierarchical Planning ).

This is the easiest way and very simple as client may have there planning data in there third party system like excel maintained.

Network costing gives you better control as you can change the work hours and Material Quantities in Project itself and see the costing.

It is upto client what is suitable as per their existing business process.

Regards,

Amit