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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