on 02-07-2008 8:14 AM
Hi
can any one explain how cost is captured in producing a finished product from raw material step by step please
GB
If the answer is useful reward points to concerned person and close this thread. This will encourage the consultant who are all spending time and answering question to help this forum.
Regards
J.Saravan
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very helpful
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Hi
Actual cost are calculated when you confirm the order. At the time of confirmation. It takes the relevant costing variant from Order type and does the costing through the elements assigned in valuation variant including the over head cost which is from costing sheet as per the cost components structure which you have assigned in vluation variant.
Generally costs involved are Material cost, Process cost and Over head cost.
The costing variant is ppp2 - Actual
Valuation variant is 007 - actual
Costing element is 07 - Actual.
Process cost are calucuated as per the confirmed time which we are entering during the order confirmation. and they are calcuated as per the activity type and formula assigned in Work center.
Regards
J.Saravan
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Hi,
you can see it by ur cost sheet there u'll find from where---
1- material cost is to calculated and with what priority.
2- Activity based costing -- what price to pick.
3- External processing -- from where price is to be picked up.
4- Sub- contracting- charges from where it is to be taken.
like this u'll find in valuation variant and its an assignment to costing variant and costing type .
order costing is calculated by--
material cost -- planned and actual--
activity cost -- planned and actual--
and after order confirmation u'll get the variance amount that u have to settle it against the order.
and with the posting period and fiscal year.
this vaiance amount then get settled.
reward points if useful to you.
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Dear GB,
Product Cost = Materials Cost(Raw Materials Cost +Semi
Finished Materials Cost)+ Activity Cost(Operation Cost)
1.For all your ROH - Raw materials maintain price control
indicator as V and enter the value as Planned Price 1 and
Planned Price Date 1 under Costing 2 View - Planned price
tab.
2.For all your Inhouse manufactured semi-Finished(HALB) and
In house manufactured Finished materials(FERT) maintain
price control indicator as S and dont enter any value directly in
accouting view.
3.For activity's cost(Operation Cost) comes via ---> work centre
in which the operation is performed.
4.A cost centre and an activity type where a rate has been
maintained for that cost centre and activity type (T code KP26)
will be linked to the work centre under costing tab.
5.As per the operation time,the cost is getting calculated.
6.Overhead cost is the indirect cost which's spend during
production.
7.So when the cost rollup is taken using T code CK40N (or
else using CK11N estimating & CK24 for marking and release)
all this cost gets added and the materials standard cost is
calculated and same is marked in Costing 2 view under Current
Planned price column.
8.Standard cost estimate is done for FERT materials so that
automatically the system does for Semi-Finished products also.
I hope this will be sufficient for you.
Regards
Mangalraj.S
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