Rounding off for Activity Price (variable)

[Former Member]

Hello SAP Gurus,

According to our accounting department, when Variable Price is less than 0.25, lets say 0.16, SAP is rounding it off to zero.

Is this correct? I am a bit confused. I dont know how to compute for the costing.

Can you further explain where is the variable price is used?Pls explain further.So I can justify to them.

Thank you,

Athena

[kamalkumar_biswas2 · Accepted solution]

Hi

  Variable price are used in activity dependent process where values are variable with production volume/activity qty....

  Regarding your question rounding off it's depend upon your unit of measure where you have defined value without decimal places or  some other logic. please check unit of measure.

Kamal

[Former Member · Accepted solution]

Hello Kamal,

Thanks for the info. Where can I check the unit of measure?what TCODE?mm03?

[kamalkumar_biswas2 · Accepted solution]

Hi

Go to CUNI  and check your activity unit of measure details ..you can see decimal rounding

kamal

[Former Member · Accepted solution]

Hi you can check the base unit of measure in Basic data 1 tab in MM03.

thanks

Sai

[Former Member]

In KP26, we assigned variable prices for Cost Center XXXX

Costing Lot size: 10,000

For the routing display (ca03) we maintained the ff:

Base Quantity 10,000 pc

Activity type:

Labor                     1 Hour

FSD                     10,000 pc

FSI                       10,000 pc

Depreciation        10,000 pc

Indirect Labor       10,000 pc

Machine (OOH)    10,000 pc

Scrap                     0

The resulting cost estimate for the above material is.

Question:  How to compute for the cost estimate for each activity type?

Main Material?Parts?Purchase of Products?Direct Labor, Labor Indirect, Fact supplies direct/indirect,depreciation, other overhead cost.

[pavan_kumar18]

Hi,

It is interesting......

There are some situations where we will face this type of issues like.....though we have maintained activity price system will not shown the result in material cost estimate... ( But system will consider the price maintained in KP26...due to unit of measure issues and costing lot size issue we will get those issues).

Check the BOM input output ratios....Change Costing lot size to 1 and try ...

Regards,

Pavan Kumar Arvapally

[rajneesh_saxena]

Hi

I think you need to increase your costing lot size to 10000.

Rajneesh

[Former Member]

But our costing lot size is already 10,000 in mm03 costing 1 tab

[pavan_kumar18]

Hi,

Try to change the costing lot size to 1 / 100 /1000 and check whether the system captures the activity cost.

After the change perform cost estimate to know the results...

It is not trial and error method ...to know the problem in costing lot size....

Check the BOM input output ratios also.

Regards,

Pavan Kumar Arvapally

[Former Member]

Hi Pavan,

Is Costing Lot size in mm03 (costing 1 view) the same with Price Unit (Accounting 1 view)

[pavan_kumar18]

Hi,

Please check the following link...

Costing Lot size of material in Product costing | SCN

Regards,

Pavan Kumar Arvapally

[rajneesh_saxena]

Hi

I don't think that you should do rounding this way.

At the time of production order confirmations this price is multiplied by the activity quantity confirmed by the user and a value is posted in the order and at the same time a credit is given to the cost center which is providing the activity. If you do such rounding the credits will some time not be given to the cost centers hence they will remain under absorbed. Means your product is not absorbing the cost correctly.

Regards

Rajneesh

[kamalkumar_biswas2]

Hi Rajneesh

But his problem is when he puts variable price below .25 in KP26 against activity it's converted to "ZERO" ..not showing any price..how to solve this?

Though I have never faced this...if you have any other solution will help him

Kamal

[Former Member]

So what are we gonna do?

[Former Member]

That is correct Kamal,

For example,

In KP26,

we maintained the following activity rates (variable)

                                            Activity Rate (variable rate)              Cost Estimate (variable cost)

Direct Labor                         0.25                                                            0.01

Labor Indirect                       0.01                                                            zero

Factory Supplies Indirect     0.20                                                            zero

Factory Supplies Direct       0.01                                                            zero
Depreciation                        0.01                                                            zero

Other Overhead cost          0.39                                                           100.01

Why is that ONLY the DIRECT LABOR  0.01 & OTHER OVERHEAD COST 100.01 has value on the cost estimate???