SAP CONTROLLING – PRODUCT COSTING - tcodesee | Product costing - tcodesee

 

SAP CONTROLLING – PRODUCT COSTING - Tcodesee

Product Costing, 

Product Costing, Part of the Controlling module which is used to regard within cost of materials and creation income driven examination and the board accounting. Item Costing is a critical ability. As a result of costing's raised level mix with various modules, various people stay away from it in view of the complexity. This 5 segment article will hope to comprehend and explain Product Costing. 

The fourth step in understanding the essentials of thing costing is the costing run. Costing runs are used to cost mass proportions of materials in a lone association code. The costing run licenses you to pick certain materials, detonate their sum structure, cost, research, and engraving and conveyance.

Product Cost Planning 

Cost Determination

1.       Raw material cost

2.       Packing material cost

3.       Dairect cost (over head)

4.       Indirect cost (over head)

Preconditions:

Material Master (includ MRP, accounting and Costing views)
Qantity Structure

(BOM, Routing or Master Recipe, Production Versions are optional)
Purchase Info Records and Condition Types
Configuration (Cost Component view, Costing Variant,Costing Sheets if required)
CO Master Data (Primary and Secondary Cost Elements, Activity Types, Mixed Costing Ratio & Alternative if required, Additive Costs if required)

Outline: 

During the yearly or monthly to monthly costing measure, materials are cost in a costing run in a month. Trade CK40N is used to run costing runs, separate results, and engraving and conveyance costs. The costing run should be made using a costing variety (read more in course of action portion), costing structure, controlling zone, association code, and move control. Thusly, a costing run should be made for every association code thus. The costing run is also made for a particular date range. 

CK40N 

The costing run contains 6 phases: Selection, Structure Explos, Costing, Analysis, Marking, and Release. each field anticipate that you should filled limits, spare, and thereafter execute. The assurance limits are entered in bare essential boxes that shows which materials ought to be cost. In the construction impact step, the picked materials are exploded to get part materials from BOM's.

As discussed in the previous blog on Quantity Structure, a bill of materials (BOM) is created for each internally produced material. In the costing step, finished good materials selected from the previous step are costed based on their BOM and routing or master recipe. A routing or master recipe is also created to specify the processes required for a material. Component materials are also costed based on costing configuration.

We can analyze the costing results using the available reports in the analysis parameters. In the marking step, we open the lock to authorize marking for a company code, costing variant, and period. Once marked, costs appear as planned standard cost estimates in the material master. After executing marking, we release the costing results. Once released, costs are valid for the given date range and appear as current standard cost estimates in the material master.

When settling blunders in a given advance, we should re-execute each progression from the earliest starting point to see the impact. In the event that outcomes don't refresh subsequent to executing, we can press the revive button. We have the alternative to execute any progression in foundation when handling countless materials or on the off chance that we like to execute a stage at a given date and time

Configuration:
Arrangement of costing and valuation variations and cost part structure are needed to set the procedure for costing materials. The costing variation holds the standards for costing. Costing variations contain a costing type, which decides the item to be made, and valuation variation. Valuation variations contain boundaries for valuation of a quote. In a valuation variation, you can indicate the system succession for how expenses are chosen. For delivered materials, the part's standard cost, moving normal value, buy information record cost, or arranged costs might be chosen. You can likewise pick a specific arrangement/real form and normal the arrangement movement rates for the year or take the current action rates. The cost part structure is utilized to demonstrate which expenses should be incorporated, regardless of whether to incorporate the variable or all out expenses, and gathering costs in legitimate groupings called cost segments.

Relatable Example:

Suppose we are utilizing Product Costing to esteem our stock in a treat heating shop. This will assist us with valueing our treats (completed great), icing (semi-completed great), and heating things like eggs, milk, and sugar (crude materials). 

Utilizing the expenses for every fixing (Material Master) in our fixing list (BOM) and the rates for exercises in our formula (Routing or Master Recipe), we can figure the expense of creating a treat. In costing our treats, we will cost the fixings. Whenever we are happy with our standard cost, we can decide to esteem our stock at that cost (discharge).

Further information:

Product Cost Collectors, utilized in tedious assembling, must be cost in a different exchange (Individual-KKF6N or Mass-KKF6M). 

You should re-ascertain and discharge expenses to reflect changes underway information like BOMs, Routings or Master Recipes, Production Versions. 

Note that solitary the principal creation variant will be utilized in costing.