Costing Run Error

[Former Member]

Hi All,

I am currently trying to roll cost for materials but have an error that i can not seem to resolve, i hope someone can assist me and help me understand.

While rolling the cost for a specific material the MFG Overhead cost is not being calculated correctly, i have looked at the routings for this material and do see where the error might stem from, but i do not think it can be corrected from there.

The error is that in the routing the cost for MFG Overhead is calculated by adding Labour (1H) and Setup (0.017) and MFG Overhead = 1.017. The lot size of this material is 300 but when roll up the cost with CK11N per unit the Set up value is 0.003 but the MFG Overhead does not calculate in the same fashion it remains as 1.017 (it should be 1.017/300 = 0.0033 ) This is causing a massive discrepancy in costing. Now one solution is that the amount can be corrected externally and then update the routing and run the costing, but there will be an issue if the lot size is increased in the future (instead of 300 the lot size is increased to 400, now the routing will have to be change to 1.017/400 = 0.0025). How can i correct the logic within SAP? I have tried configuring the costing sheet, but i am not not sure where to change it. In my costing run i am using costing variant PPC1.

I have tried being as detailed as possible, and i hope it is coherent.

I would really appreciate you help and points will be awarded.

Thanks in advance

[Former Member · Accepted solution]

why cant you update your lot routing based on costing lot size 1. give the hrs in routing based on lot size 1 then even in the future if you chage the lot sizes there won be any problem

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[Former Member · Accepted solution]

Thanks for your response.

Currently in the routing the base quantity is 1, but I do not want to change the amount in the MFG Overhead just in case if the lot size increases or decreases. For example: Currently the MFG Overhead is calculated as 1.017 now if i were to update the MFG Overhead in the routing the amount would be 1.017/300(lot size) = 0.0033, in the future if the lot size was decreased to 250 the routing will have to be changed again (1.017/250 = 0.0041) thus causing an error in the costing roll up.

There has to be another way.

But i thank you for your input

[Former Member · Accepted solution]

I am not sure how you can do that. try doing it using quantity based costing sheet so that you can put a fixed value as overhead in the costing.

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[Former Member]

Hello Aziz,

When you are costing at unit level, it may be a rounding error after 3 decimals. Have you tried costing at the lost size?

[Former Member]

I want to personally thank you all for taking time out of your schedules to post replies. Anyhow, i think we have found a solution. We went back to the and corrected the formula that was costing from the routing and then updated the variable and fixed prices in the activity type.

Thanks again

[Former Member]

Aziz,

I would like to restate a couple of items to be sure that I understand

Labour and Setup are activites in a Work Center? with 1hr and .017 hr respectivly as time for a base quanty of 1.?

Is manufacturing overhead an Activity or is it on the Costing sheet as a %?

The costing lot size on the material master is 300?

Is this the only material structured like this? Is this the only one giving an error.

What formulas are used in the work center? Did you review and validate them?

This Information could be helpful

ALthea

[Former Member]

Hi Althea,

Thank you for your response.

In the routing we have removed the MFG Overhead and now are using the Costing Sheet to calculate the Overhead. I think i have updated everything, eg costing sheet, costing sheet components, percentage overhead rates, costing variants. But now the requirement has changed again!!!! Just when you think you have crawled your way out of a ditch, someone pulls you back in.

In the legacy system they were able to calculate overhead in relation to cost centers ( Setup, Labor and Overhead for 403, Setup, Labor and Overhead for 403B and for 407 etc), but in the costing sheet you can only enter one cost center, is it possible to enter multiple cost centers and where would i do that?

Now i had a cost element for Overhead, but in the cost element category was incorrectly selected as 43 (Internal activity allocation) instead of 41 (Overhead rates) now when i am trying to use select that Cost Element in the Costing Sheet under the credit area it will not allow me to save it. I have created a new cost element but i am not certain what the impact might be

Please help!!!

Thanks in advance

[Former Member]

you can not assign same line for different cost cneters in costing sheet. you need to define different lines with percentage and assign to diff cost centers. assign new cost element which you have created and it will start using the new one from now. But i woudl think it is better to change it before you do your costing so that the new costing uses tha change and from there it flows smooth.

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