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Configuring Controlling
Standard Cost Estimate:
Usage:
Creating a standard cost estimate in SAP CO is a critical process for organizations to establish predefined benchmarks for the cost of producing goods or services. The standard cost serves as a baseline or target against which actual costs can be compared. From a business perspective, this practice offers several advantages including developing product pricing and cost planning.
SAP Steps:
CK11N - Create Cost Estimate
CK24 - Transfer Prices
CK40N - Costed Multilevel BOM
CK44 - Price Update
CKM3 - Display Material Price
Developing a standard cost estimate facilitates in product costing in a way that it helps to see all of the material consumption and related costs from the BOM and activities from routing. This process can be broken down to view the cost of each steps in production using Multi-level Costing.
You can adjust the inputs at each stage to simulate the costs. This can facilitate in planning. Configuring Controlling Configuring Controlling
Implications in CO upon selection of fields in MRP 1:
Base UoM:
Plant specific Material Status:
Implications in CO upon selection of fields in MRP 2:
Procurement Type:
In-house Production BOM and Routing
External Procurement Cost tracking through PO
No Procurement Virtual Material, either statistical costs or direct costs charged to cost centers.
Special Procurement:
Used to override the base settings or provide additional detail to the procurement type.
Implications in CO upon selection of fields in MRP 4:
Bulk Material: Materials used in the process that have an irrelevant cost or minimal/unplanned usage are defined here. These material like grease or any tool are not relevant for costing.
Co-Product: Upon selection a cost distribution ratio will need to be assigned to this material to split costs in controlling.
BackFlush:
Upon confirmation CO11N the relevant goods movement documents MIGO are updated automatically, and costing is determined based on actual consumption. There might be no variances if this option is selected?
Costing Variant:
Costing Types: Configuring Controlling
Basic Settings for Material Costing:
The two important settings in material from a controlling perspective are Origin Group and Cost Component Split.
Within the cost component split two setting options need consideration.
1- Active Activates/Deactivates the cost comp. splitting facility.
2- Primary cost component split flag. This field allows the usage of primary accounts within the CoA instead of creating secondary cost accounts for analysis. It can be used if detailed distribution/breakdown of costs is not required in CO.
T-code: OKTZ
Control Tab
Fixed and Variable Visibility of Fixed and Variable Cost fields in KP26
Roll up Breakdown of FG into SFG and RM components and clubbing of cost structures.
Cost Summarization Further Fields
Material Cost Estimate with Qty Structure:
To enable Qty Structure view for a material we need to configure a costing variant and assign that to the material.
Costing Type the field in MM03 that will be updated when the estimate is marked. Parallel Valuations, Default Costing type is inventory valuation if the field is left blank.
