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"group" standard cost

Hello experts,

My client is a multi-national company who has a requirement to value the finished product at a common value that is the same to all group of companies.

The GL accounts concerned are:

- finished goods inventory

- cost of goods sold 

- delivery of finished goods from production to the warehouse

The common value is set according to the lowest standard cost within the whole group. So if one item is produced in several plants across the world, the plant producing with the lowest standard cost will set the "group standard", every other plant will have to book their inventory/COGS/production delivery by making reference to the "group" standard cost, which is kept unchanged during the year (it is updated only once or even twice per year and update is always done at the beginning of a new year).

I plan to use standard cost in the group valuation view to hold the "group" standard cost. Because different plants will have their own standard costs, this would mean that I can not use the standard SAP function to mark and release standard cost. In stead, I have to manually change (MR21) the standard cost of the same material in different plants to the same value, but only in group valuation view.

Personally I do not see this is a problem at all. I understand that in SAP changing of SC just cause a re-distribution between standard cost portion and variances portion, but the actual cost as whole do not change. So even if a material is assigned a value equal to a "group" standard cost which is different from its own standard cost run, it's not going to create any problem because the actual cost would still be the same. i.e. before the change material A has actual cost of 15 with 12 as SC and 3 as variance; if I change the SC to 10, SAP would determine a new variance for the material which will be 5, so my total would still be 10+5 = 15.

So my questions are:

- are there any undesirable consequences if I use MR21 to change the SC, especially in terms of product costing?

- is there a way to do massive SC update?

Can you please share provide your valuable thoughts. For your information, the client has set up one controlling area for the whole group and uses multiple valuation approaches and actual costing in ML.

Former Member

About mas MR21, you can try bapi BAPI_M_REVAL_CREATEPRICECHANGE

Create a Z program or a LSMW (There are some post in the SDN that explain how to create LSMW with IDOCs)


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