COPC: Repetitive Industry - Product Cost Collector - MF30 vs CK40N

[chengshiong_kwan]

Dear all experts,

I understand that these 2 transactions calculate standard prices, 1 for the material code itself, whereas the other one is for the PCC. What are the differences between these 2 prices? I noticed that the price calculated in MF30 is not being used at all in any transaction. Every year we have performed CK40N for this material and therefore we have an update Standard Price every year. We have not perform any MF30 to recalculate the prelim cost estimate for the PCC.

Please shed some light.

Thank you.

Sincerely,

Sebastian

[adamu_nuhu · Accepted solution]

Hi Sebastian,

The standard price (CK40n) is used for the valuation of inventory (when price control is “S”). This means that, any GR/GI is valuated at the standard price.

The preliminary cost estimate (MF30) on the other hand represents the planned cost of the product cost collector. The preliminary cost estimate is used to calculate production variance. Production variance (Target cost version 1) is the difference between the actual cost of the PCC (Debit) and the target costs calculated on the basis of the preliminary cost estimate (Credit) :

The preliminary cost estimate can also be used to valuate WIP and scrap. You can also use data from the preliminary cost estimate to perform backflush. You customize this in your REM Profile (MRP 4 view in the material master)

If you are not using the preliminary cost estimate, then I can only guess that you have not completely implemented cost object controlling.

Some customizing areas where you can use the preliminary cost estimate are marked in red:

Hope its a bit clear.

Regards,

Adamu

[chengshiong_kwan · Accepted solution]

Wow, that's a very detailed answer.

Thank you Adamu.

Regards,

Sebastian