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Former Member

Standard Cost Estimate from multiple plants scenario

Dear Friends,

I have a scenario wherein my client operates in multiple countries and is thus having multiple company codes. Among this, in one of the company codes he is having production facilities to produce same product under two different plants. Here we are not using transfer control functionality of costing variant to cost the product but are valuating std cost for each plant. Now this particular material is being sold to a different plant operated under a different company code. Considering one of the plant as Master Plant I can use the transfer control through special procurement type in material master to transfer the material cost estimate.

But when I do the final sale of this product and reflect the transaction in CO-PA it will reflect with the cost estimate transferred from the master plant. But in order to get my actual profitability, my std cost from both plants should be considered based on the ratio of stock transferred from both the plants. Can anyone tell me if how to achieve this.

Regards

Anurag Gupta

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3 Answers

  • May 28, 2015 at 07:33 AM

    Hi

    I think you need to use mixed costing and  create procurement alternative based on purchase order and vendor plant and the mixing ratios. Test this in test system and let us know the results.

    Frankly speaking I have never done this but hope this will work.

    Comments from Former Member, @Ajay Maheshwari SAP Trainer Sir are solicited.

    Regards

    Rajneesh

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    Former Member
    May 28, 2015 at 11:25 AM

    Hi

       Same material code  are you using to manufacture in diff plant in same com code ? So using diff costing variant in plant level to get diff stand cost...is it?

       If so..I don't know mix costing will work or not,,but your requirement is focusing on mix costing process as Rajneesh told. As because manufacturing process are in diff plant with diff variant..I have doubt...

       One work around we may try,,,by STO method...in MM we can move material from one plant to other through STO..and here in receiving Plant Material will be at "V" price control...so when same material with diff stand cost will flow to Receiving plant may have an average price..

      If works ..please revert us

    Kamal

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    • Former Member Former Member

      Hi Anurag

      Have you got your solution?

      You can try with Batch & Valuation type combination concept to separate and identify the cost at plant level at the point of sales (selling plant)

      See the following link as helpful:

      Kamal

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    Former Member
    Mar 02, 2016 at 03:48 PM

    Hi Anurag, Kamal and Rajneesh,

    you already found the solution:

    If you have multiple procurement or production processes then you have to use mixed costing.


    Define two procurement alternatives of type 'Stock Transfer' for the material in the receiving plant. In the procurement alternatives you specify the sending plants. Then define a mixing ratio e.g. 50:50.

    You also have to set cross-company costing active or use group costing . Otherwise the costs will not be rolled up at company code boundaries (transfer control will not help).

    Afterwards system will calculate the material costs in the sending plants and roll up the results (CCS) into the receiving plant according to the mixing ratio.

    Best regards,
      Johannes

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