Calculating cost of poor quality.

[Former Member]

Dear Friends,

Please explain me process / steps for calculating cost of poor quality in SAP.

As I understand there are two quality related costs in sap Appraisal costs and Non conformity costs, how do I do this activity. CO consultant help is required in this regard but we are not having that at present.

Activity type and cost center for cost of quality are defined.

Please elaborate the process.

Thanks and with regards.

Shekhar Mokashi

[Former Member · Accepted solution]

see below link, alll question you have asked are answered with procedure, if you need any more help pl come back after going through the llink

http://help.sap.com/saphelp_46c/helpdata/en/5c/a8b43446a1c564e10000009b38f83b/frameset.htm

[rupesh_brahmankar3]

Hi,

This depends how you book the cost.

1) With a standard activity defined in routing as an inspection operation. Then this activity type could be given a separate cost element. Then it would be possible to get these Quality costs from Production orders. (The configuration for this is similar to any other activity type configuration)

2) Internal orders could be created for carrying the quality costs. These could be costs which are not relevant to any specific order like calibration activities. (The internal order is created by CO and will be part of CO configurations)

The cummulation of the above would be the total quality cost.

Hope this is what you are looking for.

Regards.

R.Brahmankar

[Former Member]

Dear Mr. R.Brahmankar,

Logically i agree to what you said, but can you please elaborate step wise activities needed to be done.

Thanks

Shekhar