SAP PP-PI Costing

[Former Member]

The scenario is PIR is generated then MRP run takes place, planned orders are then converted to process order, then using MB1A material is consumed directly and then order is confirmed. My query is how costing is related to processing order? Where does the costing starts kicking in and how it remains associated?

[dejoy]

Hello Rahul,

Order costing starts for pp when GI/Confirmation/GR etc happens to order.Costing of PP order associate with order until business wants and ends when you settle it Regarding PP Costing, lots of information available in forum. So please search.

Regards,

[Former Member]

Hi Rahul,

In PP-PI costing major two type of costing involve first all material cost which use in production process & second operation / activity cost like (setup time , operation time, labor time , power consumption), all material price maintain in material master's accounting 1 view & activity price maintain in KP26, total order cost generate from ur BOM consumption & activity confirmation in process order. cost variance occur standard vs actual cost at month end when process order settled.

there r other scn blog present for details u can get.

best regards,

Amit  Awasthi.