Total Production Cost calculation

[former_member158990]

Dear all,

Anybody know where / at which tableI can see the breakdown calculation of Total Product Cost / Production receipt amount, that should inform us about

1. What is component cost

2. Quantity

3. Price

Thank you very much in advance.

Best regards,

Surya

[Former Member · Accepted solution]

Hi,

You can get all the details in the under inventory reports >> Inventory Posting List. and Inventory Audit report will let you know all the data.

More ever If you want to check the Costing per production order wise then click the tab summary and see the bifurgation. since it is variables we cannot able to suggest the tables .

Hope it clarify everything

Ashish Gupte

[former_member158990 · Accepted solution]

I want to know :

HOW does SAP calculate unit price of FG.

I click the yellow arrow from Actual Product Cost, I see the details of receipt qty :

- FG item code

- FG qty

- FG unit price

- Amount

I need to know and explain how does FG unit price come from.

Anyone knows ??

Thanks you so much for quick respon.

BR.

surya

[Former Member · Accepted solution]

Hi........

The Calculation for production costing is like.............

Finished Product 'A' With Planned Quantity 100

Child Product 'RM001' with Planned Qty 50 and Price Rs.10/-

Child Product 'RM002' with Planned Qty 50 and Price Rs.20/-

After Issue of RM001 and RM002 Actual component cost will be (5010)+(5020)

After Rec. of 'A' the Actual Proct Cost will be ((5010)+(5020))/100

In short, *(Child Qty * Child Unit Price)/(Finished Planned Qty)*

You will get the costing

Edited by: RAHUL MOUNDEKAR on Jul 22, 2009 7:30 AM

[Former Member · Accepted solution]

Hi Surya Lolo,

Please go the link below you will get all the related information about production module (You need valid user ID)

https://websmp103.sap-ag.de/~form/sapnet?_FRAME=CONTAINER&_HIER_KEY=701100035871000371280&_OBJECT=01...;

Hope after reading this there will be no doubts forever

Ashish Gupte

[former_member158990 · Accepted solution]

Using the sample from Mr. Rahul, how product cost is calculated if :

Actual issue RM001 = 60 (over usage)

Acual issue RM002 = 60 (over usage)

Acual receipt of Product A = 80 (lower than plan 100)

What is the product cost of Product A ?

BR,

Surya

[Former Member · Accepted solution]

Actual issue RM001 = 60 (over usage)

Acual issue RM002 = 60 (over usage)

Acual receipt of Product A = 80 (lower than plan 100)

What is the product cost of Product A ?

As I told you,

the product cost of A would be

Product cost of A = ((60 * RM001 Unit Price) + (60 * RM002 Unit Price)/100)

In which 20 qty will be in loss as you are receiving only 80 instead of 100 which has been planned.

I hope now u would get your costing details..............

[Former Member · Accepted solution]

Hi,

I think the Item Cost with which the Finished Good is produced is decided on the Planned Qty and not the Actual Qty:

It should be = SUM for all components [(Planned Component Qty) * (Actual Item Cost at the time of doing Receipt from Production)]/ Planned Finished Good Output

If there are differences in finished good received it is posted to the WIP Variance Account.

Regards

[former_member158990 · Accepted solution]

Rahul, use 60 or 50 ?

50 is RM001 qty in Production order.

60 is RM001 qty in actual issue.

[former_member204969 · Accepted solution]

The production module in the SBO uses the cost prices of the components calculating the cost of a product.

It uses the components costs and the quantities in the production order at the time the Receipt from Production transaction.

So it uses:

- the item costs at the time of the Receipt from Production transaction.

- and uses the component base quantities in the Production Order at the time of the Receipt from Production transaction

[Former Member · Accepted solution]

Surya jee........

you can now analyse youself na by taking different examples but product cost comes due to planned qty only.

Take diferent examples and observe the things i'm sure you will get your answer.........

Thanks & Regards,

[former_member158990 · Accepted solution]

Sample problem:

BOM for FG-001 qty 120,000, the child are :

- PF qty 10 jr

- INK01 qty 5 kg

- INK02 qty 2 kg

- INK03 qty 1 kg

- INK04 qty 1.5 kg

- INK05 qty 7.5 kg

- INK06 qty 4 kg

- SOLVENT qty 25 ltr

I create production order # 73 with plan qty 120,000 and production order # 74 qty 120

Production order #73:

- plan qty FG-001 : 120

- good issue : actual component qty = plan qty

- good receipt FG-001 qty 120

- Result for item cost FG-001 : 137,520.83

Production order#74:

- plan qty FG-001 : 120

- good issue : actual component qty = plan qty

- good receipt FG-001 qty 110

- Result for item cost FG-001 : 137,524.96 -

---

> WHY ?

Base on concept is :

(Plan component qty * Moving Averate Price Component) / Plan FG Qty

= 16,502,500 / 120 = 137,502.83

But why the result of Production order#74 is 137,524.96 --> (15,127,790 / 110,000)

This is not same as the concept that we understood.

Where is does 15,127,790 is come from, is there any table in SAP that can explain it ?

Thanks in advance.

Best regards,

Surya

[Former Member · Accepted solution]

is your valuation method for child is fifo or moving avg?

is the user booked issue first and then receipt?

[former_member204969 · Accepted solution]

Are you sure you used the component's prices at the time of the receive from production? They may changed since then!

[former_member158990 · Accepted solution]

Valuation method for child is Moving Average

Valuation method for parent is Moving Average

User issue booked first after that receipt.

[former_member158990 · Accepted solution]

No, I'm sure there's no item component price change.

I'm using ver 2007A, PL 30. In PL 42 also same problem happen.

[Former Member · Accepted solution]

Hi

Take a look at OINM table for details .It will explain it ..

OR

Run inventory audit report .

Hope this helps

Bishal

[Former Member · Accepted solution]

Hi

Surya

Can you pls let us know what you are looking so specific in it?

I think most of the posts described lot about TOTAL COST CALCULATION

Ashish Gupte

[Former Member · Accepted solution]

Hi Surya............

I think you got confused. You just ask to the production user first about the production costing how they calculate in their existing sytem whereever you are implementing and then take a simple example in B1 and analyse it you will get your answer own.

Regards,

[Former Member · Accepted solution]

Hi Surya............

I think you got confused. You just ask to the production user first about the production costing how they calculate in their existing sytem whereever you are implementing and then take a simple example in B1 and analyse it you will get your answer own.

Regards,

[former_member158990 · Accepted solution]

OINM only explain :

- FG price and amount. There's no explanation about from where amont / price come from. In this case Plan Receipt qty > Actual Receipt qty. How FG price and amount are calculated for this condition (Actual Receipt < Plan Receipt)

BR,

Surya

[former_member158990 · Accepted solution]

The Result of SAP B1 calcluation NOT CONSISTENT with the concept.

The concept is :

FG Price = (Plan issue qty * Moving Average) / Plan receipt qty.

But in my sample where Actual Receipt Qty < Plan Receipt Qty the result of FG Price is strange.

Try to use my sample problem, test it using 2007A environment and you will see the result and get confused too.

BR,

Surya

[former_member158990 · Accepted solution]

Pls test also in 2007A my sample problem. Are you see the same result with mine ?

Off course we are very concern about it, because it is related with FG unit cost.

Because the FG cost has been changed and not follow the concept what we understood.

Our customer will also confused. How we (SAP Consultant) can explain this to the customer ??

BR,

Surya

[Former Member · Accepted solution]

Check if you have more than one receipt for the same production order. The calculation would be base on Accumulated quantities from the first receipt, not only the last one.

[Former Member · Accepted solution]

What price list have you specified in your BOM for the parent & the components?

[Former Member · Accepted solution]

Dear Surya..............

As are you getting any error in production if not then its not version problem.

I guess you only want to know the price calculation of FG according to component cost when you are planning one amount of quantty and receiving other amount of quantity irrespective of planned.

Take an example with unit price.

Parent Product 'FG001' = planned qty 1000

1)Child product 'CH001'= Planned qty 500 with unit price 10

2)Child product 'CH002'= Planned qty 250 with unit price 15

3)Child product 'CH003'= Planned qty 250 with unit price 20

Now if I issue 500 of CH00, 250 of CH002, 250 of CH003 then my component price will be ((50010)+(25015)+(250*20))=13750

Correct?

Now if I receive 1000 of FG001 then my product cost will be 13750/1000=13.75

Correct?

Now instead of receiving 1000 im receiving 800 then my item cost of FG001 will be same i.e. 13.75 but i will get loss of 200 qty.

But if you are thinking that this is not like that what you are getting then go to again production order and before receiving 800 of FG001 make 800 as planned qty and keep the row level planned qty of Childs same as while 1000 and then you see the effect. you will get the product cost 13750/800=17.1875.....

I just tried to tell you the effects and please let me know if I'm wrong

I hope now it will solve....

Thanks

Regards,

Rahul

[Former Member · Accepted solution]

Your explain for the production order is confusing: make 800 as planned qty and keep the row level planned qty of Child same as while 1000. Why not change them both to 800?

[former_member158990 · Accepted solution]

For parent use Last Evaluated Price

For component use Last Evaluated Price.

BR,

Surya

[former_member158990 · Accepted solution]

Dear Rahul,

[Rahul]

Now if I issue 500 of CH00, 250 of CH002, 250 of CH003 then my component price will be ((50010)+(25015)+(250*20))=13750

Correct? [Surya] YES

[Rahul]

Now if I receive 1000 of FG001 then my product cost will be 13750/1000=13.75

Correct? [Surya] YES

[Surya]

I tested your sample here. The result is correct same as I expected.

So when I receipt FG qty < FG plan qty the FG cost is not changed it is still same with 13.75

This is exactly correct. Same as what I'm expect.

But why in my case the result is not correct.

Test case :

BOM for FG-001 qty 120, the child are :

- PFILM qty 10 Roll , unit price 1,500,000

- INK01 qty 5 kg unit price 75,000

- INK02 qty 2 kg unit price 60,000

- INK03 qty 1 kg unit price 65,000

- INK04 qty 1.5 kg unit price 65,000

- INK05 qty 7.5 kg unit price 50,000

- INK06 qty 4 kg unit price 55,000

- SOLVENT qty 25 ltr unit price 10,000

I create production order # 73 with plan qty 120 and production order # 74 qty 120

Production order #73:

- plan qty FG-001 : 120

- good issue : actual component qty = plan qty = bom component qty

- good receipt FG-001 qty 120

- Result for item cost FG-001 : 137,520.83

Production order#74:

- plan qty FG-001 : 120

- good issue : actual component qty = plan qty = bom component qty

- good receipt FG-001 qty 110

- Result for item cost FG-001 : 137,524.96 -

---

> WHY ?

I expect FG-001 cost should not change even though Receipt Qty <> Plan Qty.

I expcet FG-001 cost is 137,520.83

Thanks Raul for your help.

[former_member158990 · Accepted solution]

Dear Gordon,

I have only 1 production receipt for 1 production order.

[Gordon]

The calculation would be base on Accumulated quantities from the first receipt, not only the last one.

[Surya]

Could you more specific please.

Could you explain the calculation using my sample case.

BR,

surya

[Former Member]

All calculations can be found through OINM table. You may use query to find a specific Production Order to check. This is a huge table. Be care for when you query it.

Thanks,

Gordon

[former_member158990]

In OINM only tell about :

1. Good issue : component item, qty, price and amount.

2. Good receipt : parent item, qty, price and amount.

I want to know where does the parent item price and amount come from.

What is the breakdown calculation for that. Is there any table can explain about it ?

[Former Member]

Dear Surya,

if you want your solution through query report then here is the query. you can get the production cost and its bifurcation..........

SELECT Distinct T1.DOCNUM,T3.[DocDate], T0.[ItemCode], T0.[Quantity], 
T0.Price, 
(T0.Price*T0.[Quantity]) As 'Total', T4.[Dscription], 
T4.Price,  T4.[Quantity], T4.lineTotal, T5.DocTotal, T5.DocTotal/ T0.[Quantity]
FROM IGN1 T0  inner join  OWOR T1 on T1.DocNum=T0.BaseRef INNER JOIN OIGN T3 ON T0.DocEntry = T3.DocEntry 
INNER JOIN IGE1 T4 ON T1.DOCNUM=T4.BASEREF INNER JOIN OIGE T5 ON T5.DOCENTRY=T4.DOCENTRY 
INNER JOIN WOR1 T6 ON T6.DOCENTRY=T1.DOCENTRY 
WHERE  T0.DocEntry='[%0]'
Group By T1.DOCNUM,T3.[DocDate], T0.[ItemCode], T0.[Quantity], 
T0.[DocEntry], T0.Price, T4.[Dscription], T4.Quantity, T4.Price,T4.ItemCode, T4.DocEntry, 
T4.lineTotal, T5.DocTotal, T6.ItemCode

[former_member187989]

U can find all the details in summary tab of production order.

U can find only additonal cost in WOR1 Table.

Jeyakanthan

[former_member158990]

I need the detail of Actual Product Cost, where I can see the detail calculation of Actual Product Cost.

BR,

Surya

[Former Member]

Dear Surya,

You will get costing info in summary tab of production order window. You just click the orange arrow link there complete break up is present........

Hope this will help you.

Regards,

Rahul