Skip to Content
avatar image
Former Member

Production versions and periodical update of the standard cost price

In our company we are setting up new product cost functionality.

One of our issue is related to updates of the standard cost price ('S').

Currently we only update our standard cost price for a specific product once per quarter. Thus our inventory valuation is only adjusted once per quarter. Within that period the standard cost price (for an existing product) will not change.

With product costing you have to run a new cost price estimate once a new production version is created for an existing product.

However, in our case we only require this cost price for the new production version and we do not want to update the cost price for that product.

Does anyone know how you can do this with standard SAP?

Thanks for your feedback,

Alexander Noels

FICO teamlead @ NXP Semiconductors

Add comment
10|10000 characters needed characters exceeded

  • Follow
  • Get RSS Feed

2 Answers

  • Sep 20, 2010 at 12:45 PM

    Hi

    If I have understood it right, you want to calculate cost for this new production version, but do not want to change the std cost already released...

    The anwer to this depends on what would you do with the existing production version...

    - If that existing version is no longer required, you can lock it and then calculate CK11N.. It will calculate cost estimate based on the new prod version.. Save it in CK11n, but do not release...

    - if that existing version is also required, then you can try Mixed Costing... However, it will be cumbersome...

    A. In CK91N, create a procurement alternative for both of these prod versions.. Choose Process Category = Production in CK91N

    B. create a Qty Structure Type in IMG - Controlling > Product Cost Controlling > Product Cost Planning > Selected Functions in Material Costing > Mixed Costing

    > Define Quantity Structure Types - Define Qty Str Type here and assign it in the next step

    > Define Costing Versions > Assign Qty Str Type to your costing version 1 and Costing Type

    C. After this, maintain a mix ratio in CK94 for both the proc alternatives... Proc Alt 1 = 100% and Proc Alt 2 = 0%

    Now when you do CK11N, you can see cost for both the proc alt.. Do not release the cost from CK24

    D. In next quarter, you can change the mix ratio to reflect the proportionate cost of both production versions

    Regards

    Ajay M

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Sep 22, 2010 at 06:16 AM

    We have the situation where we need procurement alternative and mix ratio. A couple of remarks:

    - a new cost price calculation can only be done if there is no released cost estimate in the period that the new production version is introduced. If we have a release in January and also a new production version in January, then no new cost estimate can be calculated unless you delete the released cost estimate first via CKR1. If then afterwards you do CK11N but not release there no cost estimate at all;

    - to not release will also give problems because in the variance analysis, the system looks for a cost estimate for the production version 'inside' the released cost estimate. If it cannot find one, an error message will be triggered and you cannot properly close the books resulting in incomplete figures in reporting and not being able to reconcile FI with COPA;

    - the suggestion that including the production version with 0% in the mix ratio will not result in a cost-price change only holds true if BOM/Recipe quantities have not been changed between the released cost estimate and the new production version introduction.

    So all together I donu2019t think this will solve our issue.

    Add comment
    10|10000 characters needed characters exceeded

    • Hi Alexander

      This is a typical problem faced in almost all mfg companies.. and the solution to this is DISCIPLINE....

      I have seen the Prod Planning team would just create one single prod version for the time being and leave it... Later on, they create another version after the cost is released...

      The solution to your problem is to put a process in place to create all the relevant prod versions at one go.. Most of the time, it is known to them that the material will have multiple prod versions.. Some genuine cases may be there where they too are not aware

      You can live with those small no of cases

      Regards

      Ajay M