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Product cost collector w/o cost estimate

Dear, can I use product cost collector when my materials is 'S' valued but I don't use product costing to update my standard price (so I don't have a cost estimate with quantity structure). If yes, does variance analysis then work as normal? Thanks!

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3 Answers

  • Feb 01, 2017 at 09:31 AM

    Dear Koen De Groote,

    If you not estimate costing you will not be able to confirm production order against this particular material. After confirmation variance will calculate.

    Best Regards,

    Tariq

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  • Feb 01, 2017 at 04:25 PM

    Hi

    If Standard Cost is not calculated and released from CK11N+Ck24, you can never calculate variances.. All the variances will be classified under REMAINING category

    But I wonder why you would not want to calculate standard costs, when you have BOM/Routing in place

    Rgds

    Ajay M

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  • Feb 03, 2017 at 01:52 PM

    Hi Ajay, thanks for you answer. Long story. We actually have materials on which we perform operations. We need to be able to report the costs of these activities on the materials (hence we need PCC), but the activities are regarded as non-value added (long story again), so these costs cannot flow into the standard cost. So basically we use 1 material in and 1 out (because we need technically), but they have the same price, they are actually the same material. The standard costs of these materials are a complex calculation based on market prices etc. We cannot use product costing for this, also because at month end all of the components that go into the standard costs are revaluated and we need to hut a different P&L account for each component. In product costing that is not possible (just 1 “UMB”) so we use consecutive MR11 runs (where you can determine the P&L account via “order for price change”. Back to my PCC. You say “All the variances will be classified under REMAINING category” but that is OK. We use S/4 so I can post the variances to separate G/L accounts that I can derive based on the original cost elements. Basically the idea is to post the variances that are created by my activity allocation back to the cost center (or to CO-PA). My concern is, I don’t have a system yet, will this work. In theory I think it does (I will need to create costing variants for actual and for preliminary costing that include my activities , but I don’t know whether at some point in time system will tell me that my product needs to be valuated with a cost estimate …

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