product costing

[former_member303755]

Hi,

I want to understand total cycle product costing as i don't know the basis of product costing in SAP.

Please explain me from where to start the production costing cycle

[former_member184574]

Hi Sun,

go through the below link to understand the basics of product costing.....

http://www.slideshare.net/rshanbhag/product-costing-in-sap-a-primer

Thanks

Kumar

[Former Member]

Hi ,

For the product costing process  required below mentioned master data  .

1. Material Mater (MM01)
2. Bill of material (CS01)
3. Work Center/Resource  (CR01/CRC1)
4. Routing /Master Recipe (CA01/C201)

There  could  be three kind of cost .

1.       Material Cost – This will come from Bill ofmaterial & material master . Prices maintained in the material master(RM/PM) would  be multiplied with the Qty in  bom  & this will  be our material cost  .

2.       Activity Cost  - Activity cost  will come from Routing/Master recipe .  We need to maintained the Standard time for the operation in routing / master recipe  which will be multipled by the price maintained in KP26 .

3.       Ovehead Cost – Overhead will be come from the  costing sheet & which will attached with costing varaint  .

Please refer below link to understand the basics for the product costing .

https://help.sap.com/saphelp_46c/helpdata/en/1d/39d448cd3011d19eb3080009b0db33/content.htm

Thanks ,

Regards ,

Aman

[former_member222080]

Hello

BOM quantity/WOrk center formulae/Routing value/COsting variant(Check in the Control data tab in production order)

suresh

[former_member206498]

Hi Sun Riser,

You can start from short but useful series of blog posts by Tanya Duncan below:

• 5 Steps to Understanding Product Costing (part 1)
• 5 Steps to Understanding Product Costing (part 2)
• 5 Steps to Understanding Product Costing (part 3)
• 5 Steps to Understanding Product Costing (part 4)
• 5 Steps to Understanding Product Costing (part 5)

Good luck.

Regards,

Julian

[Former Member]

Thanks Julian! If you enjoyed these blogs, you can look forward to my next book, Practical Product Costing Guide for CO-PC (Product Cost Controlling) coming out this summer. You can stay up to date by subscribing to TanyaDuncanBlog.com.

[former_member184737]

Hi Sun riser,

           Basically product costing is run for in-house production material which price type is maintained with "S" (Standard price). To calculate the price of the material, we need some of basic master information like BOM, routing, activity type and it's price. Usually when running product cost for the material system will explode the BOM and get the price of the material based on it's qty from material master, and will find the activity cost of the activities which you mentioned in routing. Activity type is assigned in work center master. We have to maintain activity price with the combination of cost center and activity type in KP26. We have to use CK40N for cost run.Just go through document which you can find in online and understand the basic flow before start cost running.

Thanks

[former_member184666]

Hi Sun riser,

First please read below documents and SAP Help for basic understanding.

http://scn.sap.com/thread/3368588

http://scn.sap.com/community/erp/financials/controlling/blog/2013/01/04/5-steps-to-understanding-pro...

https://help.sap.com/saphelp_46c/helpdata/en/1d/39d448cd3011d19eb3080009b0db33/content.htm

http://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb7d6343a311d189ee0000e81ddfac/content.htm

Thanks & Regards,

Ramagiri