standard cost estimate
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Basics of SAP Standard Cost estimate-
Understanding the flow of cost settings-Part
1Note-This is a beginner's and basic guide to understand cost estimate and various
settings behind it.
This document is intended to explain the cost flows to a standard cost estimate. Explainingvarious settings in background. I will try to explain this from backward from Cost estimate
to configuration. This will answer some basic questions like Material Cost, Overhead Cost,
Labor etc. in a standard cost.
When you take a look at a material cost estimate what you will understand the Quantity
Structure, Valuation, Costing Dates etc.
o Standard cost of a material looks like in T-Code- CK13n (you can view this from
costing-2 view in material master too T-Code-MM03.)
o I will try to walk through these 6 tabs below explaining basic configurations and data
flows from different configuration to Standard Cost estimate.
Screenshot-1
o For our analysis purpose I have selected standard layout 1SAP02-Costing items
(overview)
o there are several layout available in standard SAP and user can define their
own too.
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Screenshot-2
Screenshot-3
1-Costing Data-
It contains data like Costing variant, Costing Version, Lot Size and Transfer Control. Lets
talk about Costing Messages and Costing status later on.
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Screenshot -4
o Costing variant-Configuration Costing Variant in T-code OKKN- (Will cover in
more detailed way in part 2.)
-Assign various Control parameters like Costing Type,Valuation variant,Date Control
QTY structure Control, Transfer Control etc.
-Maintain parameters different Tabs like Control, Qty Structure, Addictive Cost, Assignment
and Misc.
Screenshot 5
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o Costing Version configuration using T CODE- OKYD
-Number that serves to differentiate between cost estimates for the same material.
Screenshot 6
o Lot Size
-The costing lot size in the material master record is usually used as a basis for costing all materials, howeverone can manually change the lot size during cost estimate.
o Transfer Control-Configure in T-code OKKM usually used the standard.
Screenshot 7
- This controls howcosting with quantity structure searches for existing cost estimates whenexisting costing data are transferred to another cost estimate. In this example we assigned
PC02 in TCODE OKKN.
2-Costing Dates-we will learn more about date control in Costing variant
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Screenshot 8
-Costing Date from -Date from which the cost estimate is valid.
-Costing Date to- This date determines the date up to which the cost estimate is valid
-Qty Structure Date-Date with which the quantity structure is selected for the cost estimate
with quantity structure.
-Valuation Date-Date on which the materials and activities in a cost estimate are valuated.
3-Qty Structure-It contains BOM and Routing data. ( Usually PP functionality)
Screenshot 9
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o Bill Of Material (BOM)- T CODE- SET up CS01 , To view T-code -CS03
Screenshot 10
If you go back and refer my screenshot 3 the detailed cost (M) comes from this settings.
Note- we will have to do cost component settings too will cover the point in net part.
o Routings- Create Routings T-Cod-CA01 ( PP functionality) to view CA03
- A routing shows operations in a sequence. This form the basis for
Lead time scheduling. Product costing, capacity planning, Refer screenshot 3 Cost
Internal Activity (E) comes from this settings. We will understand more detail in my
next part about assigning work center, activity and activity planning.
Screenshot 11
4- Valuation- It contains the currency, Costing sheet and Overhead key.
T CODE-KZS2-Creating and maintaining Costing Sheet,
T CODE-KOOK-Defining and changing Overhead key
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Screenshot 12
if you refer to screenshot 3 Overhead cost (G) flows from this settings from costing sheet and
overhead key.
o Costing Sheet-It controls the calculation of Overhead basically we use one costing
sheet for each object for which system is to determine overhead costs. ( will see more
detail in my next part)
o The Overhead Key-The overhead key is used to determine order-specific or
material-related overhead rates. The overhead amounts depend on the plant and the
overhead key. The overhead depends primarily on the overhead key. If an overheadkey is not maintained for the material or the order, overhead is to be determined in
relation to the plant.
After defining a costing sheet that points to two condition tables. In the first table, the
overhead amount depends on the overhead key. In the second table, the overhead
amount depends on the plant. An access sequence determines which conditions have
priority.
5- HISTORY- It contains the user and costing run date data.
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Screenshot 13
Cost By/Marked By/released By- The user names who performed respective costing run task.
Some large companies have different person to mark the cost and different person to release
the cost as it rectifies the human errors if any. But in my experience i have seen mostly it is
performed by the same person.
Costing run - usually this data updated when we use T-code CK40n to do standard costing in
case of individual material costing using CK11n this field will not populate. So we can
always go and check that costing run data to verify the settings at that point of time.
6-Costs-Baiscally it is summarization and cost component view
TCODE-OKTZ setting up cost component Structure (we will see in detail in part 2 of this
document)
o If you refer back screenshot 8 breaking out cost like overhead, labor and material
based on these settings here.In Product Cost Controlling, the cost component structure
determines how the results of material costing are updated. The cost componentstructure groups the costs for each material according to cost component (such as
material costs, internal activities, external activities, and overhead). If the material is
used in the production of another material, the cost component split (which breaks
down the costs according to material costs, internal activities, external activities,
overhead, and so forth) remains in the system when the costs are rolled up
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Screenshot 14
Error Log- Identifies the messages if costed with error or without error.
Intention of creating this document is to reach out to the beginners and those who wanted to
know and understand the flow of Standard Costing. i will update the document as n when
some more points needs to be included .
This is my first document and I should thankAjay ,Forum members,and SCN SAP ERP
Financials - Controlling
I was nervous to put together the basics in a document and publish it in SCN. I will continue
edit it for improvement.
The next part of document will update the more detailed configuration and steps to
understand Basics of Standard costing
Refer to next part herehttp://scn.sap.com/docs/DOC-49167
Best Regards
Hrusikesh Dalai
http://scn.sap.com/people/ajay.maheshwarihttp://scn.sap.com/people/ajay.maheshwarihttp://scn.sap.com/people/ajay.maheshwarihttp://scn.sap.com/community/erp/financials/controllinghttp://scn.sap.com/community/erp/financials/controllinghttp://scn.sap.com/community/erp/financials/controllinghttp://scn.sap.com/docs/DOC-49167http://scn.sap.com/docs/DOC-49167http://scn.sap.com/docs/DOC-49167http://scn.sap.com/servlet/JiveServlet/showImage/324888/screenshot.pnghttp://scn.sap.com/docs/DOC-49167http://scn.sap.com/community/erp/financials/controllinghttp://scn.sap.com/community/erp/financials/controllinghttp://scn.sap.com/people/ajay.maheshwari