Calculating actual production cost for FG

[Former Member]

Hi Experts,

We have a situation where one finished product is manufactured from various semi finished materials & those semi finished material with some other semi finished mat's. For each SFG we are having seperate production order, now we have a problem while calculating actual cost of finished product because cost of each semifinished material is being calculated seperately in each production order we are not able to arrive at actual cost of final finished product, if any one come across similar situation earlier pls help in this regard.

Thanks & Regards

Sushant

[Former Member]

Hi Sushant,

For this you have to create costing sheet, cost component structure, costing variant, valuation variant and some elements. Explain your requirement to your PP consultant and do the configuration as per the requirement. most of the configuration should come from PP. They have to create BOM and routings. After completion of all the required configuration then run CK11N t Code. Then you will get the standard cost estimate.

Sateesh

[Former Member]

Hi,

This is a clear case of multi-level BOMs. You should release the standard cost estimates for the materials methodically from the lowest child-level material so that the cost of SFG at each level gets updated correctly and in turn the correct cost of the FG.

Good Luck!!!!!

Thanks and Regards,

Bhuvaneswari.S

[Former Member]

Hi Bhuvaneswari,

Thanks for your prompt reply, From your reply it seems that you have very clear cut idea about the same, It would be of great help if you could share some documentation on same which could help me in configuring the same.

Thanks & Regards

Sushant

[Former Member]

Hi,

As per my understanding standard cost estimate is used mainly for perodic cost planning of standard cost (Mainly annual) but my requirement is to calculate actual cost of finished product with actual cost of semifinished materials from lower level production orders,

Our Finished product is mainly assembled to order where some parts are kept in stock & some parts are made to order.

Pls revert considering above points.

Thanks & Regards

Sushant