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Former Member

product costing

HI SAP guru's,

can any one tell me the breaf idea about product costing. what are the mail responsibilities in product costing configuration in controlling.

Thanks&advance,

ramya.

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3 Answers

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    Former Member
    Aug 20, 2007 at 05:46 PM

    Hi Ramya

    Product costing is vast area. Before deciding what type of product costing to use, you should understand the business process. For eg. I am working on the Activity Based Costing. for process industry. If you can let me know what type of industry you are working then I can give you some guidence.

    Thanks

    Ashok

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    Former Member
    Aug 20, 2007 at 06:03 PM

    Hi Ramya,

    SAP Product Costing deals with Plan Costing + Actual Costing of Finish products or Services.

    CO comprises Product Costing + cost accounting integrated with FI.

    It uses Integrated Cost Accounting.

    Product costing also has 2 phases depending on the Mfg Scenarios. If you are a normal mfg comp, making goods to stock & sale, you have to first do planning of the costs of products initilally as a STD COST of a product. This is used in many phases in SAP CO acounting. In simple terms, you cost a product by different methods depending on different LIFE CYCLE phases of product. These are Development of new product. Growth stage by modifying it. Mature stage (mass prod). Decline Retirement of that product from Mfg+Mktng)

    The whole CO process starts with this PLANNED costs of products & ends with totalling the STD Costs for Actual Production.

    This is a simple Std cost Accounting system, in which the end result is calculating Variance bet Planned & Actual & analysing those for further corrective actions.

    Product costing is well integrated to FI, but only where overhead cost accounting is used. Otherwise normally it used only for settlement

    check out this link

    http://www.sap-topjobs.com/SpecialPP/samplepc.doc

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    Regards

    Genie

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    Former Member
    Aug 20, 2007 at 08:03 PM

    Hi,

    Product costing is a very vast area. as on overview,

    Product costing hasTwo aspects:

    1. Calculating standard cost estimate

    2. Order costing

    ==========================

    1. Create materials

    a. Five raw materials (Two for creation of semi finished, three for finished)-ROH

    b. One semi finished material-HALB

    c. One finished material-FERT

    2. Create secondary cost elements for defining activity types

    3. Create secondary cost elements for defining credit elements in costing sheet

    4. Create activity types (use category 1 & price calc as 3 – for now)

    5. Define prices for combination of cost center and activity type in KP26

    6. Define costing sheet

    7. Define cost component

    8. Define components of costing variant

    a. Date control

    b. Valuation variant

    c. Costing type

    9. Define costing variant

    10. Next, create standard cost estimate

    Use either CKUC or KKPAN

    11. Next to update prices, use the below transaction CK24 for price update

    First, MARK

    Then, RELEASE

    Please also check out the following link:

    http://www.sap-topjobs.com/SpecialPP/samplepc.doc

    Hope this helps.

    Please assign points as a way to say thanks.

    Regards,

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