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Former Member

product cositng

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


How the actual costs flow



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1 Answer

  • author's profile photo
    Former Member
    Posted on Aug 21, 2007 at 10:07 AM

    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

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