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author's profile photo Former Member
Former Member




can any one explain me

1) standard cost estimate

2) product order- costing object -project costing by order

pls explain what is use transaction codes also

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 08, 2007 at 02:26 PM

    Hi Supriya,

    Standard cost is the cost which is fixed for a period, variable cost is varying with period. As for example cost of semi finished, finished materials are fixed & cost of raw materials are varied.

    Check out this link

    A cost object means a cost or a revenue collector wherein all the costs or revenues are collected for a particular cost object. Examples of this could be cost center, production order, internal order, projects, sales order

    A Production Planning Order is an object that defines the intended production of a material in a specific quantity and at a specific availability date. The planning order also carries the expected component demand and capacity consumption, which are typically determined by BOM and routing explosion.

    Assing points if useful



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  • author's profile photo Former Member
    Former Member
    Posted on Jun 08, 2007 at 10:00 AM

    You usually create a standard cost estimate for a material at the beginning of a fiscal year or a new season. The standard cost estimate then remains valid for the entire year or season. You can use it to establish a standard price for materials for the time period.

    You should not change the standard cost estimate during this time. The standard costs then remain constant and are not influenced by price fluctuations or changes in the production structure during the planning period.

    You valuate the planned quantity structure of a standard cost estimate with standard prices. A standard cost estimate for a material is not associated with an order or production version.

    If you create a cost estimate based on a costing variant. For standard cost estimates, the costing variant contains the following settings:

    1)The costing type specifies that the costing results can be updated to the material master as the standard price.

    2)The valuation variant specifies that the materials are valuated at the standard price or planned price.

    Ex: In this example, the stock account is posted with only the value of goods received based on the standard price. Consequently, the value in the material master record increases in proportion to the quantity. When the invoice is posted, the material master record remains unchanged.

    For information purposes, the material master record of a material subject to standard price control also keeps track of the moving average price. The moving average price demonstrates how much on average the delivered price deviates from the standard price.

    it's useful assigne points as a way to say to Thanks



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