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Jun 20, 2016 at 06:46 PM

SAP Product Costing

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Hi Experts,

I am new to product costing and need some basic understanding.

Can someone please help me with understanding SAP Product costing concept

After procurement of raw materials the material is issued to production order and there are various work centers where the raw material is processed once the process on that material is confirmed the cost associated for the process gets transferred in the production cost centers associated to that work center(I want to know how is this cost calculated and once this cost is posted in the cost center what happens to this cost).

At the month end the production orders are settled-Whats the impact of this settlement in Costing

Also we plan the cost of each Activity type at start of the year-How and when do we arrive at the actual cost

At the end of the period we run transaction Ck11n or Ck40n- What is the actual process of this transactions what do they doc conceptually. if we get the cost of each process on material in the production cost centers, do we use this cost in product costing.

Any help would be appreciated.