Trying to figure out how SAP computes the costing of all inventories (e.g., Raw Materials, WIP, and Finished Goods)

[Former Member]

Dear experts,

This discussion is in connection with my previous query titled "Tracing the movement of goods from Raw Materials to Goods-in-Process to Finished Goods" (link here: https://scn.sap.com/thread/3888021). My task is-- I will be recomputing the costing process being made by SAP for the Raw Materials, Work in Process and the Finished Goods. I had already exhausted all resources but to no avail.

Now, I'd come up with a new strategy. I'll be recomputing the unit cost of one raw material, one Work-In-Process and one Finished Goods as follows:

1. For the Raw Materials, the company uses moving average in computing the material cost. For this, maybe I can view details of the unit cost including all the movements by looking at the Material Master Data (tcode MM03).

I have no problem for Raw Material. My concern is for the costing process of Work-in-Process and Finished Goods.

2. For both the Work-in-Process and the Finished Goods, I need to come up with a computation of the Finished Goods Unit Cost. For this, I think we need to consider that Finished Goods per unit consist of the cost of direct materials used, the direct labor charged, and the necessary manufacturing overhead computed at the end of the month. If I could obtain all the assumptions used by the accounting department in computing the manufacturing overhead, I think I can have a pretty good idea on how to compute the unit cost per finished goods.

My concern for this is, is there any specific table in SE16 or any SAP transaction code wherein I can view the details of the unit cost per material of finished goods? Much better if there is details that would show me the computation per unit cost?

Thank you!

Frances

[ajaycwa1981 · Accepted solution]

Hi Frances

1. There is no direct data available to this regard

2. You can check Tables below

COSP: For External Postings (Target/Plan/Actual)

COSS: For Internal Postings (Target/Plan/Actual)

COSPD (Actual only): Settlement entries i.e. GR and GI upon confirmation, for Primary cost elements

COSSD (Actual only): Settlment entries i.e. activity confirmation

3. You can use reports from KKO0, these offer you good details of the Cost Incurred in Production Orders and can show you both for FG and WIP.

Refer this thread wherein I have explained this. Report of production : Standard cost + variance | SCN

Remember that actual Unit Cost is what is possible only from Material Ledger. From (2) you can arrive at a mixture of std costs and actual costs

Regards

Ajay M

[Former Member · Accepted solution]

Hi Ajay!

I'll give it a try tomorrow and see if I can have the figures work. Thank you very much for this. You gave me so much help and I really appreciate it.

Thank you!

Regards,

Frances

[ajaycwa1981 · Accepted solution]

Hi Frances

Thats what we are here for. I appreciate your gesture to express the gratitude towards the forum

Ajay M