costing run

[Former Member]

Dear Experts,

WE are going to do costing run in our company..

can anybody tell me the prerequisites before costing run?

What is the use of costing run?

How to do costing run?

Please explain..

Posts will be rewarded for sure....

sap 125

[Former Member · Accepted solution]

Check the below :

can anybody tell me the prerequisites before costing run?

1.Check the valid BOM & Routing for the fert and sub - assembly materials

2. Check activity type are maintained for the workcenter(cr02) that used in the Routing (ca02 / ca22)

3. Check activity are maintined for the costing period and the prices rate for the cost center that you assigned to the workcenter in KP27

4.check the posting period should be open in which you run the costing in OMSY

5.Check the material master , the current period in std cost estimate / costing view / mm02

6. check proper production version has maitianed or not in C223 .if you using PV for costing run.

7. Check the product cost collecter is maintianed or not in KKF6N. (If the product cost is based on period )

How to do costing run?

1.. CK11N - calculate the costing of the period

2. CK24 - Mark and release the cost using. or CK40N is combination of (above two steps)

3. Check the material master for the current cost estimate in costing view.

[Former Member]

Hi,

Steps for Product costing:

Create Cost center (FI/CO) u2013 KS01

Create Activity Type (FI/CO) u2013 KL01

Assign Rates for a cost center/activity type combination u2013 KP26

Do Cost estimates - CK11N, CK24 or CK40N

If you use CK40N, Costing, Mark the price and Release the same can be done in single step.

Cost Rollup is done for Finished product so that the system automatically calculates for the Semi-Finished products standard cost.

IF you use CK11N, only costing will be done, but for marking and release you have to use CK24.

OPL8 - For each Production order type, Order Type Dependent Parameters u2013 Under controlling tab - Costing variant Planned and actual has to be assigned.

KKF6N - Create Product Cost Collector for REM scenario for all In-house Manufactured assemblies.

Use of Costing run:

Costing run is used to capture the cost involved in the manufacturing of a product.

Eg..

Manufactured materials

Services

Other intangible goods

You can analyze costs to help provide answers to questions such as:

What is the value added of a particular step in the production process?

What proportion of the value added can be attributed to a particular organizational unit?

What is the cost breakdown including primary costs or transfer prices?

How high are the material, production, and overhead costs?

How can production efficiency be improved?

Can the product be supplied at a competitive price?

You can use Product Cost Planning to do the following:

To calculate the non-order-related cost of goods manufactured and cost of goods sold for each product unit

To establish how the costs are broken down for each product, and to calculate the value added for each step of the production process ( Concept of Cost Rollup)

To optimize the cost of goods manufactured through comparison costing ( Product Cost Controlling Information System)

To provide basic information for other R/3 applications, for example:

To establish standards with which to assess production efficiency in Cost Object Controlling

To update prices in the material master record and in Profitability analysis

Madhava

[former_member184655]

Dear SAP125,

Check this,

1.Check whether BOM exist for all the Inhouse manufactured products and the sub-contracted products.

2.Check whether routing exists for all the inhouse manufactured products.

3.Check whether a sub-contracting purchase info record exists for all the sub-contracted products(ME11 will be used for

creating PIR - Purchase Info Record).

4.Check whether the rates are properly assigned for activity type and cost center combination (KP27 can be used for checking

this).

5.Use CK40N for taking the cost rollup.

6.Use CK11N only for the products for which you want to select a particular BOM or production version or routing for costing

purpose and later on Mark and release the cost using CK24.

7.Check what's the first priority given to the valuation variant for costing the raw materials say like planned price or else moving

average price using the T Code OKKN and OKK4.

8.After taking the cost rollup these costs gets stamped in the material master and henceforth all the stock will be valuated using

this price.

9.At any point you will be able to tell the product cost of a product which is only a planned and it can be more or less once after

completing the production and then the variances can be calculated and settled.

10.Ensure the user has got the full authorization for taking the costing run to save,mark,release.

Check and revert back.

Regards

Mangalraj.S