product cositng

[Former Member]

HI SAP gees

I have few doubts in product coting process flow

1. In product costing with quantity structure environment how do we caliculate overhead reates i.e first we have to run overhead caliculation and costing run?

2. All actual costs are collected to order after final settlement can we go to the order and find actual costs in the order

3. How the variances are caliculated standard- acuals or stndard- target costs

4. What is the use of target costs

5. as per my understanding following is the period end process is it correct

caliculate overhead

costing run

wip caliculation

settlement

How the actual costs flow

Cheers

Vani

[Former Member]

Hi Vani

Let;s go step by step

First for product estiamtes u need to have following defined

1) Cost comp structure

2) Costing varaint with all definitions of date contorl, valuation strategies etc

3) Now, if you want overheads to be part of product cost, u need to define costing sheet

4) To define costing sheet you need to decide following

a) Base rows

b) Overhead rate

c) Credit

You need to enter the overhead rates manually

You can define either qty based rates or percentage based rates

Once you are fine with the above and product cost estimates are run without errors, you can do costing run. Costing run is option used for mass creation for standard costs for all materials in the system at a time either for one plant or all plants

Go to CK40 N and explore the options and test it

Month End closing steps will provide in next message once you confirm on above. I will post message for explaining target costs , variances and your other doubts

You can also mail me at kat_sreedhar@yahoo.com