Reference variant in costing

[Former Member]

Hi All,

Could anybody explain what is purpose of reference variant in material costing with some examples and how to use it in mateiral costing and what are the prerequisites for the same

Regards

gupta

[ajaycwa1981]

Hi

Suppose you released cost estimate using PPC1 at start of the year...

Now, you have a requirement say at the end of each month to revise only the Activity cost and overhead, keeping the material cost same.. You do this with costing variant ZPC1

In ZPC1 you can assign a reference variant... The ref variant will contain the Transfer Control which allows to transfer the existing cost estimates... In the next tab, you choose what all elements are to be revalued (Activity prices and overheads in above example)

Now when you execute cost estimate using ZPC1, system will keep mat cost same as before and will revise the Activity cost and overhead part,.. Hope this clarifies!!

br, Ajay M

[Former Member]

Hi Ajay,

You meant to say that, intially costing estimate will be done with PPC1 and later it will be revise with another costing variant ZPC1 due to revised cost.

But once we release the cost estimate for a particular month, how system will allow to re do the costing with another variant.

Regards

Gupta

[ajaycwa1981]

Hi

Its not about revising Std cost... You can have a new cost estimate just for info sake as well

You can assign ref variant in PPC1 also incase you want to revise cost estimate say, quarterly, to the extent of Act costs or Ovh Costs or Mat costs alone...

br, Ajay M

[Former Member]

Dear Ajay,

Thanks for your replay but find the below concerns

1) if we just run CK11N , without releasing the cost how values in material master will be updated  with revised cost as you explained earlier.

2)  could I understand in such way that, first we need to run cost estimate with PPC1 and once we released the cost estimater , Price in material master will be updated according to costing values which we have using PPC1 .

if due necessicity in revising only activity cost and keep other cost remain same, we need to have another costing variant ZPC1 in which we need to assing reference variant.

so in this case should we run CK11N for the same material with ZPC1 ? if yes how can we do releasing the for the same .  or  should we directly do CK24 but which is not possible to update the standard price material master .

3 ) is cositn varinat which is assigned with reference varaint should be used only for updating the prices other than Future, current standard estiamte.

4)  I was traying to create costing estimate using CK11N, using a costing varaint assinged with reference varaint then I am getting a error as  below

" No reference costestimate found for material xxxxx in plant xxxxx "

[former_member455491]

Dear Ajay,

As per current business scenario we released cost estimate using PPC1 at start of the year.

Now, we have a requirement say at the end of each month to revise only the Activity cost and overhead, keeping the material cost same.we want to do this with costing variant ZPC1.

In ZPC1 we can assign a reference variant. The ref variant will contain the Transfer Control which allows to transfer the existing cost estimates.In the next tab, you choose what all elements are to be revalued (Activity prices and overheads in above example)

Now when we execute cost estimate using ZPC1, system will keep mat cost same as before and will revise the Activity cost and overhead part,

Understand the concept of Transfer control and Reference variant and company business process.Due to some lack in configuration of costing variant. when i do cost estimate with ZPC1 for closing stock valuation no change i will see in MM-Costing View 2.

I will be glad Sir if you send some config document on my mail id or giving some idea to close the issues.

Mail ID - Chinmay.mohapatra61@gmail.com

Regards,

Chinmaya Mohapatra

[former_member455491]

Dear Ajay,

For closing stock valuation purpose also i want do costing run where activity cost not picking the activity rate planned in KP26,else it is picking  from KBK6.

Actual activity rate (KBK6) * Actual Confirmed Hour (CO11N) = Actual Activity Cost.

Sir i will be obliged if got any early solution.

Regards,

Chinmaya Mohapatra

[OwenLiu]

Hi Chinmaya Mohapatra,

It's really an old one.

Please check whether there are any useful information in below link:

Explanations for parameters in Costing Variants - ERP Financials - SCN Wiki

Best Regards,

Owen

[former_member455491]

Dear Owen,

Please send some document of costing variant configuration with proper screen shot if available and the settings of transfer control and reference variant.

Std costing we are following now is for your FYI.

Regards,

Chinmaya