Costing Run Decision

[Former Member]

Dear Experts,

Expecting the suggestions for the following:

1.We have uploaded all the MM masters into the SAP System.(FG/SFG/RM)

2.Unable to maintain the PP masters because lack of data on time.

But Estimate should be happen the scheduled date only.

How to go ahead with the costing estimate........?

Is it correct that the price will be maintained using MR21.

Then release the estimate for the time being.

when ever the PP masters available, reverse the current cost estimate and re run the estimate.

Expecting earliest reply.

Thanks

[Former Member · Accepted solution]

Hi,

If PP data is not available, you can maintain the material price directly through MR21 after that run the cost estimate for that material.

If PP data is available, then you can reverse that cost estimate through CKR1 and run the cost estimate again.

Hope this helps you and let me know if any queries.

Regards,

Puri.

[Former Member]

Dear Experts,

Thanks for your replies.

I come to a conclusion that as the PP masters not available we can maintain the price through MR21 and continue with the estimate.

Please tell me the effect of not running the costing estimate.

In which areas it will effect and stop the transactions.

Please provide me a list of transactions it will effect.

Thanks

[Former Member]

Dear Jyoshna,

If you didn't update proper standard price in the material master it will effect the production and if you activate copa it will effect in the sales also.

Effects in production:

At the time of GR against the process order/production order system will check the standard price in the material master.

At the time of variance calculation to calculate the target cost system will check the standard price.

Effects in sales:

If you activate the COPA at the time of billing if you want to flow the COGS to COPA standard price should available in the material master if not cogs won't flow to COPA.

Regards,

Ravi.

[Former Member]

HI Jyosh,

If you dont run standard cost, in production order it will show target cost value '0'. i.e. Your GR is always based on received GR quantity multiplied with standard price.

Also, variance will go under remaining variance because of target cost is '0'.

Also, if you have COPA, you can't transfer the production orders values to COPA, because costing key will always pick the values based on standard cost release.

Regards

Srinivas Salpala

[Former Member]

Hi,

If you don't run cost estimate for material, your production order actual and target cost will not update and at the time of variance calculation, system will give the error messege  that is " no only remaining balance".

If you actiavte the CO-PA, at the time of billing system checks the current standard price if not, system will give the error messege that is " No standard cost estimate for this material XXXX".

Hope this helps you and let me know if any queries.

Regards,

Puri.

[Former Member]

Hi,

I will update  Standard price using MR21.

So there is no worry about S price in the material master.

What I am asking is:

If we are not running and releasing the estimate what are are the effects.

Please confirm.

Thanks.

[Former Member]

You need to perform marking and release, then only price will update.

Regards,

Ravi.

[Former Member]

Hi,

Please go through the previous discussion. When you dont run standard cost it will impact in your variance calculation.

Variance = actual cost - target cost ( target cost menas GR qty * standard price)

In your case, there is no standard price. So here target cost will be '0'.

i.e. if actual cost is 10000 in that case variance:10,000 - 0 (target cost) =  10000

As there is no standard price, it can't categorize variances. So all the variance amount will go under remaining variance.

Also, COPA will not update COGS values as it picks values based on standard cost release. If there is no standard cost release, you cant transfer production values to COPA.

Hope its clear...

Regards

Srinivas Salpala

[Former Member]

Yes, you can update in MR21 and save the cost run and release it no issues.

But you create the orders during the period and use the standard price.

So my advise is use the MR21 standard price for this period and upload pp masters and execute the cost run for next period it is better.

After creation of orders deleting the standard price is not advisable.

Regards,

Ravi.

[Former Member]

Hi,

You can upload Material master through MR21 and run the standard cost for time being. Later you can delete the cost estimate through CKR1.

If you want to go with standard procedure let PP data available on system later run the cost estimate.

Or else do it according to client request but it double your work.

Regards

Srinivas Salpala