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How to best run costing runs in the middle of a period?

Feb 12, 2017 at 06:31 AM

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Former Member

Hi guys,

I'm in need of some help! I have recently taken responsibility of product costing runs and require advice on how best to go about running a costing run in the middle of a period.

The situation is this:

At the beginning of the period i found a material that had incorrectly been priced at 1000x its actual cost (incorrect price per). This lead to a revaluation in stock of a huge amount. I have since reduced the cost of the material back to the correct value and the stock revaluation for the raw material has corrected. However the BOMs in which the material is present are still showing the inflated value.

What would be the best way to pull the corrected material price from the parent plant into all other plants/product BOMs?

Any advice is appreciated! I did try to search for an answer so apologies if this has already been posted.

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Former Member Feb 17, 2017 at 10:54 PM
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Hello Toby,

One thing for sure you will need to do is to talk with the finance team. Validate the costing it’s an accounting responsibility. I’m an accountant and I had live this situation in the past. All variances was wrong. But we have isolated it and we had managed the financial statement outside SAP. They need to look as soon as they can, not at the end of the month. If they use CO-PA and they want it yearly, adjustment will be required.

Normally, accountant supposed to run the CK40N and look the “Mark” result. And they execute the Release with a background job. At least, accountant will be able to look the result before the “Live” modifications.

Thank you

Christian

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Former Member Feb 14, 2017 at 08:19 AM
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Hello Toby,

When you said your BOM still reflect the wrong price, did you refer to the standard cost you release for the month (with CK40N)? If this is the case, you can release only once per month a new standard cost.

Christian

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Former Member

Yes, i have costed for this period using CK40n but wondered if i could delete all cost estimates for each plant and re run the CK40n costing run over the weekend when our plants are shut

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Former Member
Former Member

I would not recommend to delete your costing run. I know that something exist to do it but I’m not aware of all the impacts you can generate.

At this point, did you involve the accounting team? They are the one that will need to explain the variance. If you are using COPA for your monthly analysis, you will be ok next month. But if you are looking yearly variances, you will need to do a CO journal entry to fix it.

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Former Member Feb 13, 2017 at 06:33 PM
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Hi Toby,

If Material ledger(ML) is not implemented, you can release cost estimate anytime during the month. but best practice is, release cost estimate at beginning of the month.

If ML is activated always release cost estimate at beginning of the month before any goods movements are processed in new period.

even though ML is active,some exceptional cases you could release cost estimate middle of the month. check this link for the process

http://www.insider-books.com/blogs/2-insiderbooks-blog/post/126-how-to-release-a-marked-standard-cost-estimate-in-the-middle-of-the-month

Thanks,

Rau

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Mukthar Ali Ahamed N Feb 14, 2017 at 04:34 AM
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Hi,

If you have run mass costing i.e.CK40N, then you cannot delete for single material. So here you have to run costing by CK11N for different version for the said date, note down the price and change it by manually by MR21 for that material. Next time on wards system automatically reads changed BOM. However, if you have run costing through CK11N, then first you delete the costing by CKR1 and after that re run costing by CK11N.

Regards,

Mukthar

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