Material cost estimation in COPA

[Former Member]

Hello Everyone

I have question regarding how details of cost Estimate will flow to COPA Report.

Variance of Product cost will flow in COPA through PA Transfer Structure and its flowing on my report. However, I want to flow COGM (break up of the cost components) on COPA reports.

I have done below steps but itu2019s not flowing.

I have maintained Define Costing Keys for Accessing Material Cost Estimates. ( I have maintained 3 key with different Period Indicators.

A. Released Standard cost estimate matching goods issue

B. Current standard cost estimate to entry in Mat

C. Material cost estimate matching posting date.

Assign costing key in material ledger and i activate material ledger in actual costing/ material ledger.

I have chosen table lookup with MBEW on source fields in u201COriginu201D tab with MATNR, BWKEY and BWTAT as field and in assignment I have take VPRSV.

Maintain another with same field name in Source and selected KALAWI in Target fields.

And assigned the costing keys to key for accessing material cost to step1

I have assigned Cost Component structure to operating concern. ( I have created

Value fields which shows the details for COGM in Cost sheet and maintained the same in it.)

I have maintained external material group and assigned to Material master.

After doing all the above steps Material Ledger TAB is getting populated on the Material Master but when I run the Standard Cost Estimate its not showing details for Cost of sales in COPA.

Please do let me know if I need to do any additional steps with.

Thanks in Advance.

Srinivas

[Former Member]

Hi Srinu Putty,

Pls clarify why you have activated Material Ledger? Do you really know what it is or because the option is given in the sequence next to Costing Key, you have used it?

If as per the business process of your client, Material Ledger is required, then, you need to assigne different Value Fields for differnt Cost Components for Standard Costing and Actual Costing.

For example, If you have 20 cost components in Cost Component Structure and if you are using Material Ledger, then you will need 40 Value Fields. 20 for Stand Costing and 20 for Actual Costing.

The things that you mentioned about derivation of characteristics, do not really impact the flow of cost estimate to COPA.

Srikanth Munnaluri

[Former Member]

Hello srikanth,

Thanks for the reply. the following steps did for the costs of cost components flows to copa.

1) define costing key for std cost estimation.

2)assign costing key to characteristics.

3)assign value fields to cost component str. their i assigned value fields to all cost components.

finally we activate material ledgger. but i don't have any idea about mat ledger. and pls explain about mat ledger and how the cost estimation, cost component values flows to copa.. if any further settings is required pls let me know.

Regards

Srinivas

[Former Member]

Hi Srinu,

By activating Material Ledger without knowing about it and without knowing it's relevancy to the client's business process....YOU DID A BLUNDER MISTAKE

Materia Ledger along with Actual Costing need to be activated if you want to go for Actual Costing inaddition to Standard Costing.

"""Once activate Material Ledger for any Plant, you willl not be able to de-activate""".

In which client are you doing this? It it in only Golden Master, just immediately deactivate ML. If you have already copied the customization request to Unit Testing Client, you cannot do anything there, but don'g transport it to Quality Server.

When you activate ML, many things right from basics will change...for example Price Indicator in Material Master (S or V). Hell lot of descipline is required during Period-End closing etc.

YOU SHOULD NOT ACTIVATE MATERIAL LEDGER UNLESS THE BUSINESS PROCESS REALLY NEEDS IT -- this only suggestion from my side...

First you deactivate and come back to know about Costing Key...

Srikanth Munnaluri

[Former Member]

Hi,

If you are using costing based COPA, the values of CC structure can flow only when the Billing is done.

So the revenue and costs appear in COPA report at the same time.

Hope this helps.

Cheers

[Former Member]

Hi.

Thanks for the reply..

Yes we are using costing based copa. we have done billing still the cost component structure values are not coming to copa.we done all the settings (above i mentioned). if any further settings is required please let me know...

Regards

Srinivas

[Former Member]

Hi Srini,

COPA is a Profitability Analysis tool, which gets updated (In the trading account area) when the invoice is posted - both revenue and CoGS. Any transactions relating to the cost estimates will NEVER update COPA.

The main transactions, in a repetitive manufacturing kind of environment are billing documents, production variance settlement, Cost Centre Settlements, and, if allowed, direct postings from FI and MM.