on 10-15-2007 4:32 AM
Dear all,
Can anyone pls tell me, how will the costing occur for a material produced in-house and having price control 'V' ? I am not able to see the target costs.
Also kindly tell me the settings to be done in CO, like target cost version, valuation variant, costing variant, etc.
Thank you,
Shrenik
Rather than giving my own versions I have compiled here SAP inputs. Pl let me know if you require any clarifications:
Costing variant has the following components:
<b>Define Costing Types
Define Valuation Variants
Define Date Control
Define Quantity Structure Control
Define Transfer Strategy
Define Reference Variants</b>
<u>Costing type:</u>
In the costing type, you define the purpose of a material cost estimate by specifying, for example, which field in the material master record the costing results can be transferred to:
Update Cost Estimate
Standard price Standard cost estimate (01)
Tax-based price Inventory cost estimate
Commercial price Inventory cost estimate
Price other than std price Modified standard cost estimate or
current cost estimate
No update Any cost estimate
Define Valuation Variants:
Define Valuation Variants
Here you create a valuation variant containing the parameters required for valuation of a cost estimate.
You also specify which costing sheet should be used to calculate overhead.
Valuation Strategies
Material valuation
Here you define the sequence in which the system searches for prices from the accounting view or costing view of the material master record to valuate materials. You can also access prices from purchasing info records and condition types.
For material cost estimates, you also specify whether additive costs can be added to the selected price.
With configurable/configured material components and with procurement alternatives, the sequence defined here is ignored if the strategy "price from purchasing info record" was selected, in which case that strategy is always executed first. For more information, refer to the SAP Library in the component Product Cost Planning under Raw Material Costing or Mixed Costing.
Activity Types / Processes
Here you define the sequence in which the system searches for prices in activity type planning or actual activity price calculation in Cost Center Accounting or Activity-Based Costing to valuate the utilized activity types and business processes.
You also specify which plan/actual version is used.
Subcontracting
Here you define the sequence in which the system searches for prices in the purchasing info record. In purchasing, quota arrangements are used to create a mixed price for materials that are manufactured with external vendors with parts provided by the customer. You can specify whether the quota of the individual vendors that are entered in the source list for the material to be processed should be determined through the planned quota arrangement or the actual quota arrangement.
External processing
Here you define the sequence in which the system searches for prices in the purchasing info record or routing operation for valuation of the external activities.
Strategy Sequence
You define the individual valuation methods for the valuation variant as strategy sequences. For the valuation of the material components you define a strategy sequence that reads the fields of the material master record in a particular sequence such as:
1. Planned price 1
2. Standard price
3. Moving price
The first price that is not zero is used to valuate the material component.
Target versions:
Target cost versions are used in the following ways:
In variance calculation:
To control which variance (total variance, production variances or planning variance) is calculated
To valuate unplanned scrap( scrap variance)
Unplanned scrap is valuated in the period-end closing activities when the variances are calculated. You can specify in a valuation variant for WIP and scrap which cost estimate you want to use to calculate the target costs for the valuation of unplanned scrap. You assign the valuation variant to target cost version 0 if you want to include it in the valuation of scrap.
When you are using a cost object hierarchy with active distribution, you use the target cost version to control which cost estimate the system uses to calculate the target costs, which are used as the basis for determining equivalences for actual cost distribution.
The actual costs collected at the level of the hierarchy are distributed across the orders in accordance with these equivalences. This distribution is proportional to the target costs for the cost element under which the actual costs are written. Actual costs for material costs are distributed in proportion to the target costs for the origin group, such as for the material, if you have entered an origin group in the costing view of the material master record and have set the indicator Material origin, for example.
If no target costs were calculated under this cost element, enter a cost element group in the target cost version. The actual costs are distributed in proportion to the target costs for this cost element group. This cost element group should be complete. If costs were updated under a cost element that is not in this cost element group, no distribution is possible.
You can calculate equivalences on the basis of SAP standard target cost versions 0, 1 and 3.
The standard system supplies the following target cost versions:
Target cost version 0 ( total variance)
The amount of the total variance generates a posting in Financial Accounting during settlement.
For this version, select actual costs as the control costs and standard cost estimate as the target costs.
Target cost version 1 ( production variance)
For this version you choose actual costs as the control costs and planned costs as the target costs.
Target cost version 2( planning variance)
With target cost version 2, the costs from the preliminary order cost estimate are interpreted as control costs.
For this version, select planned costs as the control costs and current cost estimate as the target costs. You cannot calculate planning variances for the product cost collector.
Target cost version 3 (production variance of the period)
You compare the planned costs of the period calculated on the basis of an alternative material cost estimate (such as a modified standard cost estimate) with the actual costs of the period on the basis of the yield delivered to stock in the period.
The base quantity for variance calculation is the yield.
For this version, you choose the actual costs as the control costs and the alternative material cost estimate as the target costs. To determine the alternative material cost estimate, enter a costing variant and choose a costing version.
The target cost version specifies which data is to be compared. The target cost version also specifies which variance variant is used and therefore which variance catagories are calculated. You can define a different target cost version for each controlling area
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What you have written mentions about standard cost estimate. But that is the whole point. I want to produce a material which does not have a standard cost estimate. It has price control V; which means theoretically, as and when GR from production is done, the price is averaged out.
So, when i try to calculate variance for an order using KKS2, i get various warning and error messages, as follows:
1) The planned quantity is in the future
Message no. KV254
2) Tgt cost version 2: No plan costs in period 006, fiscal year 2007
Message no. KV034
3) No standard cost estimate for material HALB1 in plant 2001 on 14.10.2007
Message no. KV154
Below are error messages:
4) Order does not have status DLV or TECO
Message no. KV011
5) Only remaining var. in version 2 - no target costs for the order
Message no. KV151
So from all these i am assuming that i need to do some settings in the target cost version, so that the system does not go looking for a standard cost estimate. But i am not sure.
Did you get my problem now?
Shrenik
Hi
Your earlier question and what you have given are totally different. We shall discuss this one after the other.
System is expecting you to set the status to DEL or TECO. You need to do this in your order
For setting the order to DEL or TECO you proceed like this.
If the order is delivered it will have the status DEL and if the order is completed you can set the stauts as TECO. This can be done by going to CO02 and go to Functions-restrict processing- technically complete from the menu.
Message was edited by:
Sivakumar Gopalakrishnan
No sir.
The questions are the same. In the first question i asked whether for in-house production, the material can have price control V or not and what are the config settings to be made for that?
And what i have said again is the errors i am getting after i executed production order for a material with price control V. And i gave the errors so that it would be more specific.
Shrenik
> What you have written mentions about standard cost
> estimate. But that is the whole point. I want to
> produce a material which does not have a standard
> cost estimate. It has price control V; which means
> theoretically, as and when GR from production is
> done, the price is averaged out.
> So, when i try to calculate variance for an order
> using KKS2, i get various warning and error messages,
> as follows:
<b>For a material that is is produced in house and if the price control is V system will not calculate variances. Variances are more relevant for material with price control S.</b>> 1) The planned quantity is in the future
> Message no. KV254
> 2) Tgt cost version 2: No plan costs in period 006,
> fiscal year 2007
> Message no. KV034
> 3) No standard cost estimate for material HALB1 in
> plant 2001 on 14.10.2007
<b>It looks like you have not calulcated the standard cost for the above material and released. For calculating the standard cost estimate use tcode CK40N</b>> Message no. KV154
>
> Below are error messages:
> 4) Order does not have status DLV or TECO
<b>Pl see my explanation below. I think for this material you have not delivered the finished goods and you are trying to do the settlement. Hence the message.</b>> Message no. KV011
> 5) Only remaining var. in version 2 - no target costs
> for the order
<b>You resolve the above error one after the other may be you will not see this error.</b>> Message no. KV151
>
> So from all these i am assuming that i need to do
> some settings in the target cost version, so that the
> system does not go looking for a standard cost
> estimate. But i am not sure.
>
> Did you get my problem now?
Yes I understand your problem.
To resolve the error proceed one after the other. Use the standard costing variant supplied by SAP. Do not make changes.
Hope you would have created BOM, routing and work center and assinged the work center to the cost center and activity tpes.
Do a costing run for the product and relase the standard cost estimate.
Create an order and receive the finished goods.
I assume that you would have done other configuration.
Run your WIP and Variances and finally the settlement.
Pl check the message at every stage and resolve one after the other.
> Shrenik
Hey,
Well i am sorry if it came across wrong. Forgive me since i am basically a PP consultant and whateveri told you was based on my limited knowledge of CO.
Just one basic question i have:
Can i take a standard cost estimate for material with price control V ?
Also let me explain to you my scenario in PP:
I want to produce a material which has 15 alternative BOMs. The difference in each BOM is different co-products are produced, each having different prices. Also each BOM has different amount of scrap as a by-product and the input raw materials are also different in each BOM.
Now what i tried was that i had price control S for that finished product. I took a costing run using CK11N and updated using CK24 based on alternative BOM1.
Then i executed the production order for that BOM 1. Everythng work fine uptill now. After this, the situation is such that next day i produce using alternative BOM 2, which has totally different co-products, by-products and raw materials.
Now i am not clear what will happen to the costing in the production order. The cost run has been taken using 1 BOM and production is being carried out using a totally different BOM.
That is why i thought of having the finished product with price control V. And i assumed (maybe wrongly), that for price control V, a cost estimate is not required and that is why the earlier questions.
Could you please throw some light on this issue and tell me what effects would be there on the costing in the production order if i have several alternative BOMs?
Thank you,
Shrenik
> Hey,
>
> Well i am sorry if it came across wrong. Forgive me
> since i am basically a PP consultant and whateveri
> told you was based on my limited knowledge of CO.
>
> Just one basic question i have:
>
> Can i take a standard cost estimate for material with
> price control V ?
>
> <b>You can have either S or V not both. Standard price and MAP has got its own advantages and disadvantages. To understand the difference only I sent the earlier link. CO is a bit complex and if you dont have much exposure on the CO side it is very difficult to understand and resolve the issue You have a complex scenario and certainly cannot be resolved just by exchange of mails. You need a gud CO consultant who can go through the various settings and resolve the issue one after the other after due discussions.</b>
> Also let me explain to you my scenario in PP:
>
> I want to produce a material which has 15 alternative
> BOMs. The difference in each BOM is different
> co-products are produced, each having different
> prices. Also each BOM has different amount of scrap
> as a by-product and the input raw materials are also
> different in each BOM.
>
> Now what i tried was that i had price control S for
> that finished product. I took a costing run using
> CK11N and updated using CK24 based on alternative
> BOM1.
>
> Then i executed the production order for that BOM 1.
> Everythng work fine uptill now. After this, the
> situation is such that next day i produce using
> alternative BOM 2, which has totally different
> co-products, by-products and raw materials.
>
> Now i am not clear what will happen to the costing in
> the production order. The cost run has been taken
> using 1 BOM and production is being carried out using
> a totally different BOM.
>
> That is why i thought of having the finished product
> with price control V. And i assumed (maybe wrongly),
> that for price control V, a cost estimate is not
> required and that is why the earlier questions.
>
> Could you please throw some light on this issue and
> tell me what effects would be there on the costing in
> the production order if i have several alternative
> BOMs?
>
> Thank you,
>
> Shrenik
Hi
This is good link to understand <a href="http://help.sap.com/erp2005_ehp_02/helpdata/en/47/60ff4849f011d1894c0000e829fbbd/frameset.htmhttp://help.sap.com/erp2005_ehp_02/helpdata/en/47/60ff4849f011d1894c0000e829fbbd/frameset.htm">Price control</a> Which covers all scenarios.
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