Standard Costing

[Former Member]

Dear Sap Friends,

In sap standard cost calcullating every month (periodically) but my client want to change standard cost every two weeks or one week. is it possible? if i change the price every week or every two weeks what are the effects client going to be face.

please let me know what are the transcation code for to change the standard cost.

Also same client are going to use SAP Business All-in-one, pre configure sap program. Sap business All-in-one always keeping standard price, there is no moving average price. i beleive sap all-in-one we can 't change price are periodically but not sure. just i want to know sap business all-in-one we can change standard price by-weekly or any time as per client requirement. if we changing the stardard price in sap business all in one what are the setting i have to do..what are t-code i have to use.

kindly give me advise and difference between the price update traditional implementation and sap business

all in one.

Regards

Paul

[former_member188826 · Accepted solution]

You are right the standard cost can be released in order to update the material master only once in a month.

There are features however to release more than once, generally in case of an error. You run CKR1 to remove the current cost estimate and then issue a new one. I am not sure if you would want to use this feature for releasing weekly cost estimate to be set as standard.

For mass costing run you use CK40N t-code to calculate cost estimate and release them.

[Former Member · Accepted solution]

hi sridhar

please go through my question give me advise

This client donu2019t have any own production, they are manufacturing the products for big five companies with margin cost. Like a third party once they finished the production, they want to show the raw material price on the invoice (full detail of raw material price on invoice). They are purchasing material several times in a month so material prices are changing so that they want to update the standard price 3 or 4 times in a month.

What is the best suggestion we can give to them to solve this issue. We can change the standard price MR21 but how purchase price variance calculate and how that can effect on G/L account and production variance how that can effect on G/L account. Please give me advice what suppose to be do in this situation. I hope they are using standard costing principle properly.

Regars

Paul

[former_member188826 · Accepted solution]

The ideal solution could be to maintain the material masters price control as 'S'. This will ensure that any purchases, whose prices area deviating from the material master stadnard are captured as variances. There is no need to keep changing the standard every now and then.

Why would you want to change the standard. Do you need to deal with the selling price? Can you please provide more details to your requirement.

[Former Member · Accepted solution]

Hi Paul,

If they are changing the material price 3 to 4 times a period (or are looking to) and ultimately want to reflect the purchase price (unless I have misunderstood) why not use the V Price control.

V Price is always appropriate for purchased materials, and is updated per goods movement.

Otherwise I suggest when costing you look to valuate goods with the lastest purchase order price. For this to work for material valuation (see OKKN) you would need to maintain PIR (purchase info records ME11).

In the material valuation strategy choose L - Price from purchase info record and choose a sub-strategy. Therefore when production costing (i.e. preliminary costing in a production order) is performed the most up to date PO data can be used to valuate the materials.

However if the customer still has a requirement to change the standard price multiple times in a period, then this is not in line with the principle behind the S price control in product costing.

Elaine

[Former Member · Accepted solution]

Hi Eliane,

This company are going to use SAP BUSINESS ALL-IN-ONE preconfigured program, in preconfigured program using only standard price S, no moving average price V. Aslo this client dont have any production, they getting order from some companies and they are working on margin cost. Once they start the production they are buying the raw material from different vendors different price (meanwhile the production) so that each vendor have different price. once production is finished they will send finished product to customer who is ordered that product, also that customer need invoice with raw material cost( but they bought the material different vendor different price. that is the reason they are keep changing standard cost when ever they purchase the material ifor that particular production) currently they dont have sap they planning to implement sap business all in one. this is the situation going on, please let me know what kind of soultion i can give the client. please give me some solution to solve this issue. i never worked in product costing. i need your to solve this issue.

i have a suggestion but i don't its work or not.

Begining of the month Material X = 9.75

1st week MM purchased material X = $.10.00

2nd week MM Purchase material X = 10.50

4th week MM purchase material X = 12.00

each time MM issue the purchase order for material X can they change the price on new inforecord, accordingly price will be change in material master (mm03) after controlling person can run cost estimate CK11N it can make chages on standard cost? and do the price mark up. i dont have any CO-PC experiance please give me your suggestion and advice. thank you so much your valuable time.

Regards

Henry

[Former Member · Accepted solution]

Hi sridhar,

My client want want to change the standard cost on material, they need soultion before 3pm tomorrow. i dont have any experiance in CO-PC.

This company are going to use SAP BUSINESS ALL-IN-ONE preconfigured program, in preconfigured program using only standard price S, no moving average price V. Aslo this client dont have any production, they getting order from some companies and they are working on margin cost. Once they start the production they are buying the raw material from different vendors different price (meanwhile the production) so that each vendor have different price. once production is finished they will send finished product to customer who is ordered that product, also that customer need invoice with raw material cost( but they bought the material different vendor different price. that is the reason they are keep changing standard cost when ever they purchase the material ifor that particular production) currently they dont have sap they planning to implement sap business all in one. this is the situation going on, please let me know what kind of soultion i can give the client. please give me some solution to solve this issue. i never worked in product costing. i need your to solve this issue.

i have a suggestion but i don't its work or not.

Begining of the month Material X = 9.75

1st week MM purchased material X = $.10.00

2nd week MM Purchase material X = 10.50

4th week MM purchase material X = 12.00

each time MM issue the purchase order for material X can they change the price on new inforecord, accordingly price will be change in material master (mm03) after controlling person can run cost estimate CK11N it can make chages on standard cost? and do the price mark up. i dont have any CO-PC experiance please give me your suggestion and advice. thank you so much your valuable time.

Regards

Henry

[Former Member · Accepted solution]

Hi

Unfortunately I cannot help you in terms of sap-all-in-one.

In terms of standard R/3 - ECC product costing in any given period you can only release a product costing once per period. (i.e. updating the standard price with production costing).

If this release step occurs you can overwrite the standard price (MR21 etc) however your pricing and your costing are now out of sync. Alternatively you can revoke the release or delete the costing in CKR1. So long as you are running the costing in the same period you can re cost with more up to date purchase pricing.

However this is not really the ideal way to proceed and as mentioned CKR1 is to be the exception in processing not part of the routine.

I am afraid the customer requires something more bespoke than I am used to. Perhaps one of the other colleagues here can assist you further.

Elaine

[Former Member]

Hi Paul

one thing to consider would be you are effectively loosing the advantage of the standard price by replacing it every 2 weeks. The advantage of S price is in part its periodic consistancy.

It may provide difficulties in reconciling GR's etc.

CKR1 is really to be used in the exception not as part of routine processing. You may never encounter an inconsistancy but consistantly using CKR1 (against its intended function) you do run a risk.

If the customer needs a more accurate stock valuation perhaps Material Ledger would be a better option. If the goods are purchased then V price could be considered, however I would not recommend V price for produced materials as this can cause problems.

Just something to think about.

Regards, Elaine

[Former Member]

HI Elaine,

this is the scinario please go through and give me ur best adivce

This client donu2019t have any own production, they are manufacturing the products for big five companies with margin cost. Like a third party once they finished the production, they want to show the raw material price on the invoice (full detail of raw material price on invoice). They are purchasing material several times in a month so material prices are changing so that they want to update the standard price 3 or 4 times in a month.

What is the best suggestion we can give to them to solve this issue. We can change the standard price MR21 but how purchase price variance calculate and how that can effect on G/L account and production variance how that can effect on G/L account. Please give me advice what suppose to be do in this situation. I hope they are using standard costing principle properly.

Regars

Paul