SCE for 1 year, what price calculation method should be used?

[Former Member]

Dear Experts,

I have an unique requirement from my client, they want the Standard cost estimate validity period is for one year because their production is quite low in the first semester and increasing after the first semester and reaching the peak production in the last 3 months in every year. so in order to get more stable standard price they want to keep the validity for standard price for a year. so here is my question :

1. Honestly i am curious what price calculation method should i set in version? Periodic or average? could you pls give an advice and the justification.

2. For the run plan price calculation transaction, i think i should run the plan price calculation from period 1 to 12. am i right?

thanks before for any advice given.

Cheers,

Aldrich

[Former Member · Accepted solution]

Hi Aldrich,

If your plan price is same whole year for all activitiy types then why you want to calculate from SAP system.

You can directly enter into KP26 against all activity and Cost center.

Coming to Your question.

Version will be Average-System will charge avarage cost from all the period based on total activity qty of the year and total value of the year.

and You need to enter 1 to 12 period in plan price calculation.

regards

RK

[Former Member · Accepted solution]

Hi RK,

Thanks for answering, the purpose why we need SAP to calculate is to minimize human intervention on calculation process. so i just think that if i need to set standard cost estimate for 1 year then i need activity price average in one year rather than periodic. and since i am new in CO (only 3 months) i want to confirm my thought with the expert in here.

so in summary, pls confirm weather my understanding is correct or not :

1. Cost center planning and activity is done for the next one year.

2. Run Planning cycle assessment

3. Run the cost splitting plan with period 1-12

4. Run price calculation (assuming using average method) period 1-12

5. Run cost estimate calculation with validity from 1st jan to 31-Dec.

and for the actual cost, i just repeat the steps above but the period is monthly not 1-12.

Regards,

Aldrich

[Former Member · Accepted solution]

Yes -You are right.

regards

RK

[Former Member · Accepted solution]

Yes -You are right.

regards

RK

[Former Member]

Hi Aldrich,

If your plan price is same whole year for all activitiy types then why you want to calculate from SAP system.

You can directly enter into KP26 against all activity and Cost center.

Coming to Your question.

Version will be Average-System will charge avarage cost from all the period based on total activity qty of the year and total value of the year.

and You need to enter 1 to 12 period in plan price calculation.

regards

RK