Standard cost estimate are created at the beginning of a fiscal year
or a new season. The standard cost estimate is then valid for the
entire year or season. It is used to determine a standard price for
materials in this period.
The standard cost estimate will write the results of the cost estimate
into the costing details screen of the material master record as the future
standard price once it is marked. This price is then active for internal
material valuation. For example, it can be used to valuate a material
components in the cost estimate.
Once the cost estimate is released, the system transfers the result
of the standard cost estimate into the material master record of the material
as the standard price. This price is then active for Financial Accounting
and is used for valuation of the material until the next time a standard
cost estimate is released.
In this period, all transactions involving products produced in-house
in the Logistics module are valuated using the results of the standard
cost estimate. If a material with standard price control is delivered
to stock, for example, inventories of this material are valuated with the
standard price determined by the standard cost estimate.
The standard prices calculated in the standard cost estimate applies
only for materials with S price control.
Cost Estimate with Quantitative Structure
The cost estimate is a tool for establishing prices for materials.
It is used to calculate the costs of goods manufactured and the costs of
goods sold for each product unit.
In order to establish the cost estimate with quantity structure of a
material, the bills of materials and routing of the material must exists
for the materials to be costed.
The cost estimate with quantity structure uses the material master data
to determine the material consumption and internal activities required
to produce the product.
Costing calculates the cost of goods manufactured for each material
made in-house in the BOM structure.
The materials in a BOM are called BOM components, these can consist
of a material without its own BOM (material components), or a material
with its own BOM (assembly). If the product has a multilevel BOM,
then the costs for the material components are calculated and taken into
account when the next highest assembly is costed. The structure of
the BOM determines the sequence in which the materials are costed.
The BOM components with the largest low-level code (that is, the material
components) are costed first, then the BOM components with the next low-level
code and so on.
Costing can also determine the cost of goods manufactured for materials
produced in another plant if the two plants are assigned to the same controlling
area and the company codes of the plants use the same cost component structure.
In this case, the structure of the cost component split must be the same
in both plants.
For raw materials, the system determines the procurement price using
the entry in the material master record. A cost component split is
created automatically for the material costs. You can add manually
entered costs to the material costs by means of an additive cost estimate
that contains separate cost components. This enables you to include
such costs as freight charges and insurance costs with raw materials or
stock transfer costs with semi-finished products. Other reasons for
adding manually entered costs to the material cost estimate include missing
routings or BOM components.
Normally, a multi-level production structure is costed using costing
with a quantity structure. The costs are rolled up automatically
using the low-level codes.
The materials in the low-level code with the largest number (such as raw
materials) are costed and the costs are assigned to cost components.
The materials in the next highest low-level code (such as semi-finished
materials) are costed. The costs for the materials costed first are
rolled up and become part of the material costs of the next highest level.
This process is continued until the calculated costs of the highest material
in the structure (such as the finished product) contain the costs of goods
manufactured for every material in the structure.
Creating a cost estimate for a single material and
its child parts with quantitative structure Procedure
Transaction CK11
Enter PPC1 (standard SAP variant - configuration transaction OKKN) as the
costing variant, material and plant. If you do not enter a lot size,
the system uses the costing lot size from the costing view of the material
master record.
Hit Enter
The dialog box: Control Data appears
Check the proposed costing dates in the dialog box and the transfer control
ID. The transfer control would determine whether the cost estimates
of the child parts supplied by other plants are to be recomputed or taken
as its is without recomputation. Use Transfer Control PC01 which
would recompute.
Press Enter and the system will costs the material.
Result
The system creates and valuates the quantity structure and calculates overhead.
You can analyze and display the costing results.
After carrying out costing with quantity structure, you can see the costing
results for the header material (the highest material) in the BOM.
Choose the desired view with costs -> disp.Cost components.
Click Save (Note the standard cost is still NOT updated yet at this point.
Marking a standard cost estimate for a single material
master and its child parts
Transaction CK20
Enter the Material, plant, future posting period and fiscal year.
This period indicates the "from" date.
Click Save (Marking of standard cost estimate is being updated) is displayed.
The results of the standard cost estimate are updated as the futured standard
price in the material master (accounting and costing view). Note
that marking does not affect the material stock value yet.
Releasing a standard cost estimate for a single Material
Master and its child parts.
Transaction CK21
Enter the Material and Valuation Area.
Click Save
The corresponding future standard prices are updated as the current standard
prices in the material master. How often you release a standard cost
estimate depends on its planned validity period. If stocks of materials
exist, the stock value changes and a document is created in Financial Accounting
documenting the price change.
The system post to the inventory account with offsetting entry posted to
the price difference account.
Costing Run Steps
CK41 - Create costing run
Some Material
CK43/CK60 - Selection of materials and display results
of selection
CK62 - Explode BOM
goto Continue
All Material
CK43/CK60 - Material field left blank and display
results of selection
goto Continue
Continue
Before this step you have to finished the step
for either Some Material or All Material.
CK42 - Select the low-level code with the highest
number
CK64 - Perform costing run for that low-level code
CK66 - Mark and review the results
After getting approval for costing results from
costing controller, you can finally post the cost estimate
CK68 - Release of standard cost estimate - Repeat
the process for the next low-level code for All
Material
If Error
CKR1 - Delete cost estimate and start again.
Correcting the Cost Estimate
CKR1 - Delete cost estimate
Make necessary changes to BOM, material routing etc.
SOME material
CK41 - Create costing run
Repeat process start
CK43/CK60 - Selection of materials and display result of selection
CK62 - Explode BOM
CK42 - Select the low-level code with the highest number
CK64 - Perform costing run for that low-level code
CK66 - Mark and review the results
Get approval for costing results from the costing controller
CK68 - Release of standard cost estimate
Repeat the process for the next low-level code (goto Repeat
process start)
ONE material
CK11 - Perform single material cost estimate
CK20 - Mark and review results
CK21 - Release of standard cost estimate
Costing Run
Costing run is used to process mass data. The costing run enables
you to cost more than one material at the same time, either online or in
the background. It reproduces the entire process of costing with
a quantity structure.
Process Flow Overview
Create costing run
Company code
Posting parameters
Costing variants
Costing dates
Some material Select specific assemblies for the costing run
Quantity structure determination for the selected
assemblies
All materials Select all assemblies for the costing run
After completing the steps for either Some material
or All materials
Carry out costing run
Mark and release costing
The costing run involves separate steps, being the selection of materials
for costing, determining material components via the BOM explosion, and
then carrying out costing level by level.
BOM explosion is only necessary if a complete selection of materials
is not carried out, such as the selection of finished products only.
Logs are generated for each step of the costing run, and can be printed
out and saved in the system. With Extras you can print the logs for
selection and quantity structure determination, for costing and for marking
and release (online or background mode).
Creating a costing run Procedure
Transaction CK41
Enter a name identifying the costing run (i.e. test x and the (i.e. XX.XX.XX)
on which the costing run is to be executed.
Press Enter. This brings you to the general data for the costing
run.
Enter the necessary data and press Enter.
The dialog box Costing Dates appears.
Check the proposed data's and make any necessary changes. Press Enter.
The release is only possible within this period message is displayed.
Press Enter.
If costing across company codes has been activated in the Customizing for
Product Cost Planning, the system displays the controlling area in which
existing cost estimates from other company codes can be transferred.
Specify the Update Parameters.
Press Enter.
Specify the Print Parameters.
Press Enter and Save the costing run.
Selecting Materials for a costing run Procedure
Transaction CK60
Goto -> Variants -> Get. Select the variant name.
Enter a range of material numbers and plant. If the materials selected
come from different plants, leave the plant field blank.
As a default value, the last costing run entered and its data are displayed.
You can change both as needed.
Click the Copy button.
To start the selection, choose Execute. The release is only possible
message is displayed. Press Enter.
After the selection, a list screen appears with information on the costing
run and data on each material selected.
To check all messages that occurred during selection, choose Extras ->
Log
Save the costing run.
Displaying the results of selection Procedure
Transaction CK43
Enter the name and date of the costing run and press Enter.
Before carrying out any further steps, choose Extras -> Log -> For Selection.
The log provides an overview of the results of the selection and the option
to correct possible errors before carrying out further steps.
Choose the desired view with Goto.
For example: Goto -> Material Overview.
Exploding BOMs for a costing run (only necessary if ALL
materials are NOT selected) Procedure
Transaction CK62
Enter the name and date of the costing run.
Choose Execute.
The release is only possible message is displayed. Press Enter.
Choose Settings -> Field selection to obtain further information on this
overview.
The dialog box List Field Selection appears. You can specify that
information on special procurement is displayed
information on the BOM is displayed
the status of the selection is displayed
the number of messages is displayed
Choose Edit -> Sort to sort the list either by low-level code of by material
number. To view the system messages that were issued during the BOM
explosion, choose Extras -> Log.
To save the materials selected under this costing run, choose Costing run
-> Save.
Choose the selected materials or low-level codes for costing Procedure
Transaction CK42
Enter the name and date of the costing run and press Enter
Choose Goto -> Low-level code overview. The release is only possible
message within this period is displayed. Press Enter. This
would set the materials in the "low-level code" order.
Mark the low-level codes or materials and choose For costing. (**Remember
that the lower low-level codes that is, the low-level codes with the highest
numbers must be costed first.)
The system will display the number of low-level code(s) selected for cost
estimate. Press Enter.
Save the costing run.
Perform transaction CK64 to execute costing run contains that low-level
code. Then save the costing run.
Perform transaction CK66 to mark the costing contains that low-level code.
Review the results and save.
Perform transaction CK68 to release the costing run contains that low-level
code.
Repeat the process from step 2 to 9 for the next higher number of low-level
code.
Executing a costing run Procedure
Transaction CK64
Enter the name and date of the costing run.
Choose Execute. Release is only possible within this period is displayed.
Press Enter.
When the costing run is finished, you come to the overview of the low-level
codes.
Select Materials and choose Goto -> Detail screen.
The system displays the costs for the material as cost of goods manufactured,
cost of goods sold, inventory costs and so on.
For detailed information on the costs, choose Costs -> Display cost components
or Itemization or Cost element itemization or Costed BOM.
The system displays the costs for the material as cost of goods manufactured,
cost of goods sold, inventory costs and so on.
For detailed information on the costs, choose Costs @ Display cost components
or Itemization or Cost element itemization or Costed BOM.
Costing run -> Save.
Marking multiple standard cost estimates Procedure
Transaction CK66
Enter the name and date of the costing run.
Choose Execute. The release is only possible message is displayed.
Press Enter.
Choose Execute. The release is only possible message is displayed.
Press Enter.
Check the prices and save.
Releasing standard cost estimate Procedure
Transaction CK68
Enter the name and date of the costing run.
Choose Execute.
Costing run -> Save.
The results of the standard cost estimate are updated in the material master
record as the current standard price. At this time, the stock value
of the material is changed and the new standard price for valuating material
movements is active.
Make sure the status is FR for all. If not, call the consultant.
Deleting material cost estimates from the database Procedure
Transaction CKR1
Enter a company code, plant, material number, costing variant, costing
version, Interval for validity form and Interval for validity to or overwrite
them.
Select the Current std cost estimates.
Specify whether the deletion should be simulated (Test run) or actually
carried out (Reorganization). Set the With log indicator if desired.
Choose Execute.
Save. The system issues a message indicating the number of cost estimates
deleted.
Status Management in costing
The costing status provides the following information:
informs you about the current processing status of the cost estimate
informs you about errors in the cost estimate
prevents incorrect data from being passed on
prevents a cost estimate from being released again
The status is set for each low-level code. This means that you can
release the costing results for specific low-level codes even though the
costing run itself has the status KF.
The following costing status can be set by the system:
