product costing

[appasaheb_nagargoje]

Dear Expert,

we are working on production order costing.

we are purchasing RAW material with Batch, every Batch is having different rate.

the same RAW material is using for production.

now, when we are creating production order (T.Code CO01) and selecting perticular Batch of Raw material in component. doing COST ORDER & Release order.

and when we checking COST analysis it show the MAP of RAW material.

but we have purchased that RAW material with different price.

pleas eguide.

Ajay

[svs_sap · Accepted solution]

Hi

Since the raw material you are using is procured with different rate and have different batch number.

But the cost update for the procured raw material is set with moving average price, and hence after ever procurement the MAP is updated and hence the same is captured in the order.

If you want to maintain specific rate for each batch and all the time if you want to capture the value with respect to batch then you should define each batch as a valuation type and i believe when you use particular batch then the respective cost will be captured inside the order.

I suggest you to discuss with FICO consultant to capture batch wise cost.

Regards,

Sharat

[appasaheb_nagargoje · Accepted solution]

Thanks.

problem resovled.

Ajay

[former_member184655]

Dear Ajay,

In my understanding generally for all the externally procured items a moving avaerage price(Price

control indicator V) is suggested for costing purpose.Assume during standard cost estimate of the

period the value is maintained as Rs 100 and during actual consumption the price is Rs 115,now the

difference is captured as variance.

even using spilt valuation you maynot be able to capture the exact cost of the raw material based on

the batch no.

Regards

Mangalraj.S

[Former Member]

Hi Ajay,

Basically, we do not have a process of Product costing, in referene to the batches of Raw materials.

Since you indicate that the batches are priced different, it is obvious that you would be using the Price control 'V - Moving Average Price' for Raw materials. Please check this in the Material master.

(On exceptional cases, you may use 'S-Standard price' as well).

Did you compare the if the production order is showing the Moving Average price of the Raw material?

Please check and share your feedback.

Thanks

Senthil