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Cost sheets--PRODUCT COSTING

Former Member
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Hi Friends,

In Product costing i have two scenarios-- MAKE TO STOCK AND MAKE TO SALE ORDER.

For make to stock the costing variant will be PPC1

AND for make to sale order the costing variant will be PPC4

we can give different cost sheets for PPC1 AND PPC4

But in in cost object controlling for the costing variants PPP1 (Planing) AND PPP2 (Actual) we can give only one cost sheet which is used while creating production order.

How to provide different cost sheets(Mak to stock and Make to sale order) here in cost object controlling also?

Any ideas ? Full points will be awarded.

Regards

siva

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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If your production order is the same Order type for make to stock and make to order, there will be only one costing sheet for both secenarios. the sales order variant is only used on the sales order. It would calculate additional values on the sales order.

If you have reason to need separate costing sheets, you would need to have the PP team create another Production order type for make to order so the PPC4 cost with it.

Former Member
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Hi

Your answer is very helpful to me. I need to have some more clarrification if you don't mind.

As we know that the cost sheet for make to stock is up to cost of goods manufacture and cost sheet for make to sale order is extended up to cost of goods sold. So we need to have two cost sheets--- Right?

Iam not able to give different cost sheets for PPC1 AND PPC4. If I change the cost sheet at one place it is changing in other place also automatically.

The problem also comes when we create production order in which it is using the costing variants as per the cost object controlling for PPP1 (costing variant planning) AND PPP2 (Actual). It will itemization will be done for the same costing variant for both the scenarios.

I think the valuation variant should be used as per the Plant. If you give different cost sheets for different valuation variants depending up on the plant, it will work !

In such case make to stock and make to order can not be done in the same Plant--Right?

Any different opinions?

Regards

Siva

Former Member
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You are unable to attach separate costing sheets to PPC1 and PPC4 because the valuation variant in the two costing variants is the same. (based on the standard config that I can see)

SAP does not allow the valuation variant for a costing variant to be changed after creation. To get a different cost sheet requires a different valuation variant, which would require building a new costing variant - we did do that and named it ZPC4.

If you want the valuation different BY PLANT, go to the valuation variant tab of your costing variant and look for a selection "Valuation Variant/Plant" (in 5.0 this is a button in the upper left corner of the screen). Here you can make plant specific valuation variant configuration. We use this for manufacturing plants - all plants use ZPC2 costing variant for standard cost to be released, but each plant has their own costing sheet as defined in "Valuation Variant/Plant"

Just remember to test, test, test.

As to this question: In such case make to stock and make to order can not be done in the same Plant--Right? our make to order is for non-valuated stock, so all costs move to the sales at the standard value of the actual quantities used. Depending on what is added to make Cost of good sold, I don't know how you would get the "Actual" on to the manufacturing order so that it would settle to the sales order. - it is after all a manufacturing order. have you tried doing the COGS on the sales order instead of the mfg order?

Obviously this question is a bit out of my usual practice. Someone else may have experience with this. But one other thought to keep in mind with your costing variants - which costing/valuation variant is used to release standard cost for inventory purposes? To me that is the value that you want associated with production orders because mfg variances will generate from that cost.

Hope some of this is helpful

Althea

Former Member
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Hi Friend,

It is great to have a response like this.

Actually I am using valuated sales order only. The flow I am following like bellow:

1) Creating a sale order for one finished goods

2) Standard cost estimate for that sale order (Using PPC4)

3) Creating production order ( Itemization seen)

4) Release the production order

5) Issue material to the production order

6) Confirm the order

7) Calculate the WIP

😎 settlement of WIP

9) Finished goods receipt

10) Calculate variances

11) Settlement of WIP again

This is almost same with the make to stock except that in make to stock we will make standard cost estimate with reference to the finished material, here we will make cost estimate with reference to the sale order.

Is it right?

For Non-valuated sale order I don't know how to user process (But I know the configuration part) IF you have any BPP for making Non-valuated sales order kindly send to the maid ID-- raminenisiva@gmail.com

As you said by using different costing variants-- even then we have to use the same valuation variant only-- right? Then the costing sheet will become the same for both the costing variants?

Regards

SIVA

Former Member
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The costing sheet is attached to the valuation Variant, therefore, if the different costing variants have the same valuation variant, the the costing sheet will be the same . You can separate the valuation variatn by making a plant specific valuation variant, but that will also be the same for both costing variants.

Althea

Former Member
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Hello Althea,

Thanks a lot for your response.

Can i expect a reply for the first part of my question?

and can i have a process document of Non valuated sale order which carries cost and revenues along with it?

Regards

siva

Former Member
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I do not have experience to confirm the question related to:

"This is almost same with the make to stock except that in make to stock we will make standard cost estimate with reference to the finished material, here we will make cost estimate with reference to the sale order"

I do not have access to BPP for non valuated stock methods.

Our process for dealing with Non-Valuated Make to Order, is this:

1) create Sales order for KMAT; Sales order BOM is automatically created; cost estimate for the sales order line is automatically created and save.

2) MRP creates production order for Sales order line item with settlement rule SDI referencing the SO line itme.

3) Actual costs are the std values of actual quatities of material issued or labor confirmed.

4) Calculate OVerhead

5) Calculate / Settle WIP

6) Final delivery to Sales Order

7) Calculate Overhead

😎 Calculate WIP

9) Settlement - all actual costs move from the production to the sales order by cost element.

SALES ORDER

1) Calculate RA (WIP) if order is not delivered, balance will post to WIP

2) Deliver and invoice Sales Order Line item

3) RA

4) Settlement -<b> actual value</b> on Sales Order line item posts to Cost of Sales Account. Posting to PA is made

5) Revenue posts from the invoice

Although, not everything you would like, I hope this helps

Althea

Former Member
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Hello Althea,

Thanks again for your response.

I have only one doubt with regard to your answer.

How the sales order BOM will be created automatically and cost estimate for the sale order is automatically created.

Till now iam doing as like in the sale order MENU-- Extras-- costs. Then giving the costing vairant and enter, we are getting the cost estimation for that sale order.

Regards

siva

Former Member
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Hello Siva

Sales Order BOM - We use variant config. After the options are picked, the system creates a Sales Order BOM. I'm not sure how to make this happen, our SD analyst does that config and Engineers "do the work"

Because the sales order BOM is automatically created, we can automatically cost.

Configuration for auto cost is on the Requirment Class. there is a section concerning costing costing ID A = Automatic costing and Costing method 1=Product Costing; you can also specify the costing variant and the costing sheet. -This saved an enourmous amount of time.

As part of the Create SO step, when it is saved the cost estimate is created.

I do not know what the current process is for checking for errors, although at one time there was a query that looked for KF status.

Remember: The SO BOM has to be created with the order to cost automatically and when you look for the config, I am in 5.0 - your screens could be different.

Good luck

Althea

Answers (1)

Answers (1)

former_member188826
Active Contributor
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<a href="http://help.sap.com/erp2005_ehp_02/helpdata/en/90/ba6d70446711d189420000e829fbbd/content.htm">In sales-order-related production you can use two costing sheets.</a>

You can specify one costing sheet directly in the sales order item. You can enter this costing sheet as a default value in Customizing for Product Cost by Sales Order under Control of Sales-Order-Related Production ® Check Requirements Classes.

A second costing sheet is selected through the valuation variant. The system determines the valuation variant through the costing variant. You can enter the costing sheet directly in the sales order item. You can also enter the costing variant in Customizing for Product Cost by Sales Order under Control of Sales-Order-Related Production ® Check Requirements Classes