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Costs incurred in a production order

Dear All,

Consider a production order created which is having components. Then this order released. Goods issue of components done. production activity completed on workcenters. Finally order confirmed with operation wise with timings. Now I Want to know all the costs incurred in this in Production rder. How to see. Plz explaing how the material costs, operation costs and over head costs are calculated. From where the values are picked and how the opearation costs are calculated. Can anybody explain in detail.

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4 Answers

  • Best Answer
    Posted on Oct 25, 2010 at 11:09 AM

    Dear to check the cost incurred in a production order go to CO02 or CO03 then select Go to from menu bar then costs then analysis then itemization then cost component structure.

    Material costs are calculated from the price maintained in material master and their quantity in BOM and operation costs are calculated from the activity types maintained in work centers and their values in KP26.

    Check and Revert.



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  • Posted on Oct 25, 2010 at 11:18 AM

    YOu can see the cost Incurred for thr production order in Co02> go to cost> analysis -- Select the layout cost treand In The layout add the value and cost element, You can see the complete detail

    Material cost is picking from Material master as per the price control

    activity cost is picking from KP26

    Over head cost is picking from IMG> CONTROLLING> cost center accounting > actual posting>period end closing> overhead>costing sheet component--> Define percentage overhead rates

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  • author's profile photo Former Member
    Former Member
    Posted on Oct 25, 2010 at 11:25 AM

    Dear Kumar,

    Please follow the path Goto->Costs->Cost analysis found in the production order header menu.Select the appropriate layout.

    Here,primarily we can find

    1.Direct material cost

    2.Direct labour cost

    Direct material cost is the cost of BOM found in the components tab of production orders.

    The cost of these materials are picked from the material master depending on the valuation type the company follows.

    For the Direct labour cost,we should first assign the activity rates in the transaction KP26.The activity rates can be assigned for different activity types,namely

    a.Labour rates

    b.Machine rates

    System consdiers these rates and multiplies the activity hours entered in the confirmation screen to arrive at the machine and labour cost respectively.

    Say for example,

    Labour rate=10Rs/hr

    Labour hours(entered in confirmation)=10hrs

    Then,the total labour cost will be =10*10=100Rs.


    The activity type should be first assigned to the workcenter master.

    This is for your kind information.


    Joseph Charles Vaikathussery

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  • Posted on Oct 25, 2010 at 11:42 AM


    If you want to knwo the collectively for a list oforder then goto COOIS-Order -Standrad Profile -Enter Material Code and Order Type and select the Systme Status CNF AND DLV-It will list down all the orders -then slect any order -goto display mode -goto-cost -Cost analysis -Slect Chaneg lay out -Select Costing Trend -It will diaply the Material , Activity plann and actual with WIP , Variance -You cacn choose the field as per your requirement from change lay out option .More over you can , goto Item isation in same Costing option and aanlysis item by item with costing elment , cost centre , work centre , materials etc .

    Now , Activity price is comming from KP26 -Activity rate and Material price is comming from Materil Costing2 view -When you plan material as per BOM , it take the Planned price duing planned cost estimation either CK11N or at Sales Order level in case of MTO.Where as when any good issue happend from store to production , it takes the MAP from cost2 view and calcualte the cost based on the qty require .

    Hope this gives you an idea



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