Assign direct material cost to value field in copa while issue to Prod orde

[Former Member]

Dear All,

My requirement is like this:

There are some 16 material groups from A to P each containing some materials(finished goods).

I want to allocate overhead to different material groups(Charecteristic in copa) in COPA using the periodic assesment cycles. I am able to allocate overhead(admin & sales cost) to different value fields in copa from different cost centers.

I want to analyse the product cost and also the profitability of each material group in COPA using Report painter. Iam able to pull all the costs which i assign to value fields using assessment. But, i am NOT able to get the direct material cost which is issued to production orders using BOM.

My question is whether we can assign the direct material cost to any user defined value field(material cost value field) while the material is being issued to production orders. Is there any automated way where we can directly assign the direct material cost to value field in copa while issuing the material to Production orders.

Pls explain me whether we can do it. if yes how?

Thank you very much in advance.

Regards,

Vishnu

VST-IT.

[Former Member]

Yes, you can.

When you cost your product, your bom pulls through the material costs onto Standard cost estimate, summarised in cost component split. When you sell a material, you set up the system to pull through the cost estimate into PA, The level of detail is the cost component split.

[Former Member]

Thank you for replying.

Could you please explain me how and where do i assign the direct material cost to value fields so that the value fields in copa get updated automatically while issuing material to Production order.

Thank you very much in advance.

Regards,

Vishnu

VST-IT

[Former Member]

The link between PA Value fields and Cost component split is set in KE4R.

Please bear in mind that COPA is a profitability tool. Issues to production is recorded in Cost Object Controlling, not in PA.

If you want to review actual costs, you will need the Material Ledger's Actual Costing functionality. Or for a simplified version, recalculate a product cost estimate at the end of the month using actual values for the past month.

[Former Member]

I have assigned the cost components to the value fields in KE4R. But , nothing is happenning when i am posting transactions to Production order(GI or GR). The value fields are not getting updated even when i settle the order.

Could you Please explain me further on this.

Thank you very much for your time and support.

Regards,

Vishnu

VST-IT.

[Former Member]

Hi Piet Strydom,

Could you please explain me further on this if you dont mind.

Thank you in advance.

Regards

Vishnu

VST-IT

[Former Member]

PA is a Profitability analysis tool. That means it gets updated when a sale is made, not before. (Except for settlements and assessment of overheads.)

Goods issues for production gets updated in CO-PC, and needs to be analysed there. If you don't, you loose all the inbuilt tools for variance analysis, cost estimate comparisons, Wip Calculation etc. To the best of my knowledge, a Profitability Segment cannot be used as a cost object in Production Planning, because amongst others, you need to be able to capitalise the produced materials to stock at the end of the production run, or to WIP at the end of the Financial period,which is not possible with PS.

Similarly, overheads are recorded in CCA and needs to be analysed there.

If one goes against these big groupings in SAP, you always run into problems.

[Former Member]

Thank you very much!