Product costing :

[Former Member]

HI,

Can any one clear -

We use the Valuation variant and costing variant for material cost estimate.

Know we also us the Costing variant, valuation variant - both actual and planed, which will be assigned at production order.

know both are different valuation variant - we have already defined the for the material cost estimate.

But again we have to define it at the production order - one thing we have to define for the actual and also for the plan .

One reason is that as soon as we release the production order it will find the planned Cost and update the order.

What is the need for the Actual Coating variant and valuation variant.

Can any body explain ....... Why at different level mainly production order ..... as the production order is cost objects itself.

With regards

krishna

Edited by: krishna singareddy on Sep 2, 2008 5:30 PM

Edited by: krishna singareddy on Sep 2, 2008 5:46 PM

[former_member674271 · Accepted solution]

Hi,

This is so called SAP style. It provides flexibility solutions considering potential requirements such as different valuation strategies for actual and preliminary/planing valuation.

It is correct in your case the actual valuation variant seems no use when the actual valuation strategy is the same to the one of preliminary/planing, so just select the same valuation variant for preliminary/planing and actual valuations if you desire.

[Former Member]

Hi Reddy, Yes. In the life cycle of production order, there are three costing variants with three different valuation variants are involved. The Costing variant and its valuation variant of standard cost estimate helps in creating cost estimate and shall be updated to the material master as current cost estimate. The difference between this cost estimate and actual cost of production are captured as total variance and updated in FI, PCA and COPA. Then we have planned Costing variant in the production order master data. This helps in preparing preliminary cost estimate. The difference between this preliminery cost estimate and the actual costs are planning variance but not posted to any of the module. Then, we have also actual costing variant in the production order master data. This helps in simultaneous costing of the production order. All the actual goods issues and activities confirmation takes the strategies priorities configured in the valuation variant which is assigned to this costing variant. Trust this answers to your query! Cheers!

[Former Member]

Reddy,

In common Practice it is required to have 3 costing variants , one for regular cost estimate one for Plan costing variant for preliminary cost estimate which will not be having any account ting entries, and later or lastly we have Actual cost variant for Symulatinous costing in many case the valuation variant in both the case (Plan and Actual) will be same I mean to say the Priority or sequence,

so when we do Prod order or Process order we give accordingly, and It is advisable to use 2 different variants.

Paartha

[Former Member]

Dear,

You create std cost estimate in CK11n where you use a costing variant which has configurred witgh valuation variant. Usually it remains std for a long time(for a year usually)

In Production order you assign costing variant for Planned and actual.

When you create a production order system will get the vaulation variant from what you enetered here.

Even for actual, system takes the costing from what is entered in actual costing variant.

pl come back if you are not clear.

[Former Member]

Rajish

I think Question is still there.

Question is very nice that why we need to assing Actual costing variant to Production order, whereas all confirmation done by PP, material issuance by MM etc.

Question is why we need to assign Actual Costing Variant.

Regards

bukhari