Professional Documents
Culture Documents
Dewan Mushtaq Group U M
Dewan Mushtaq Group U M
USER MANUAL
PRODUCT COSTING
Table of Contents
1. LEGEND..........................................................................................3
2. MATERIAL COST ESTIMATE........................................................4
2.1 PROCEDURE .................................................................................................4
3.1.1. ACCESS TRANSACTION BY:..................................................................4
ON THE THREE ENTRY TABS OF THE “CREATE MATERIAL COST
ESTIMATE WITH QUANTITY STRUCTURE” SCREEN, ENTER INFORMATION
IN THE FIELDS AS SPECIFIED IN THE TABLE BELOW:...................................4
3. WIP CALCULATION.......................................................................7
3.1 PROCEDURE .................................................................................................8
4.1.1. ACCESS TRANSACTION BY:..................................................................8
4. ACTUAL PRICE CALCULATION.................................................19
4.1 PROCEDURE ...............................................................................................19
4.1.1. ACCESS TRANSACTION BY.................................................................19
ON SCREEN “EXECUTE ACTUAL PRICE CALCULATION: INITIAL
SCREEN”, ENTER INFORMATION IN THE FIELDS AND ACTIVATE THE
INDICATORS AS SPECIFIED IN THE TABLE BELOW:....................................19
5. REVALUATION AT ACTUAL PRICES.........................................22
5.1 PROCEDURE ...............................................................................................22
5.1.1. ACCESS TRANSACTION BY.................................................................22
ON SCREEN “REVALUATION AT ACTUAL PRICE: INITIAL SCREEN”
ENTER INFORMATION IN THE FIELDS AS SPECIFIED IN THE TABLE
BELOW.................................................................................................................22
ACCESS TRANSACTION BY.............................................................................24
ENTER DETAILS AS SHOWN IN THE EXTRACT.............................................24
ICONS EXPLANATION
Create (F5)
Change (F6)
Display (F7)
Copy (Shift+F9)
Delimit (Shift+F1)
Delete (Shift+F2)
Overview (Shift+F8)
Cancel (F12)
Save (Ctrl+S)
Back (F3)
Exit (Shift+F3)
EXAMPLES EXPLANATION
This document describes the procedure to cost a material. The cost of the material can be
created for a number of reasons including margin analysis, make-buy decisions, and profitability
analysis are among the most common. The costing view identifies values by material, activities
and cost elements. The cost estimate with quantity structure enables you to calculate the non-
order-related cost of goods manufactured and the costs of goods sold for products, based on the
BOMs and routing in the Production Planning module. The system creates a quantity structure,
which is the BOM and routing combination, using data from the PP master data. You determine
what data is selected for costing by means of the costing variant in Customizing for Product Cost
Planning. The system vaulates the quantity structure based on the valuation variant contained in
the costing variant in Customizing
Procedural Steps
3.1.1. Access transaction by:
Via Menus Accounting->controlling->product cost planning material
costing->cost estimate with quantity structure->create
On the three entry tabs of the “Create Material Cost Estimate with Quantity Structure” screen, enter
information in the fields as specified in the table below:
(Note: On above table, in column “R/O/C” ; “R” = Required, “O” = Optional, “C” = Conditional)
This document describes the procedure to WIP calculation. WIP is calculated usually at the end of
the month. Work in process is valuated at actual costs; it is the difference between the debit and
credit of an order that has not been completely delivered or technically completed. The WIP value
may consist of material costs and conversion costs.
The difference between the work in process in the current period and the work in process in the
pervious period corresponds to the inventory change of unfinished products
Procedural Steps
4.1.1. Access transaction by:
Enter details as shown in the extract and press F8 or execute in test run first. When results are
accurate then remove check box from test run and press execute.
Now go back to the main screen and go to KO88 to settle the order and enter the detail as shown
in the extract and press F8 or execute in test run first
Go to functions in the main menu then got to restrict processing and click on technically complete
and save the order.
For reversing WIP in next period again recalculate WIP. Go to KKAX and enter the details as
shown in the extract and press execute.
The R/3 System can calculate iterative prices based on actual costs and actual activities. After
running actual price calculation, you can choose to revalue actual activities allocated to cost
centers (revaluation in other cost collectors requires a second step such as transaction KON1 –
Revaluation at Actual Prices: Internal Orders). Because you carry out actual price calculation at
period-end closing, no actual prices exist at the time of the actual activity posting. The initial
valuation of actual activity uses plan prices or, if no plan price exists (as is the case with pure
actual cost calculation); you can post the activity without a valuation. During period-end closing,
the R/3 System calculates the actual prices iteratively using this transaction and, provided you
have configured the system, revalues the activities. By revaluing the actual activities with actual
prices, you can fully allocate sender cost centers with no residual balance.
The R/3 System takes all actual costs (primary and secondary) and actual activities of the target
cost centres into account to calculate the iterative actual price. Any plan prices (whether
calculated by the R/3 System or entered manually by you) are ignored during this calculation
process.
You can use the Price Report to compare the iterative prices with those prices taking manual
price settings into account. In this way, you can analyze the effects of price changes (in actual,
the manually set prices, and the iteratively calculated plan prices) on the complete pricing
framework. Access the pricing report using the menu path: Accounting>Controlling>Cost
Centres>Information system>Reports for cost centre accounting>Prices>Cost Centres: Activity
Prices or transaction code KSBT
Procedural Steps
4.1.1. Access transaction by
On screen “Execute Actual Price Calculation: Initial Screen”, enter information in the fields and
activate the indicators as specified in the table below:
(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)
Confirm the message by clicking on the Continue Enter button. The “Calculate actual price
Results: Basic list:” screen is displayed.
The R/3 System can calculate iterative prices based on actual costs and actual activities. After
running actual price calculation, you can choose to revalue actual activities allocated to cost
centers (revaluation in other cost collectors requires a second step such as transaction KON1 –
Revaluation at Actual Prices: Internal Orders). Because you carry out actual price calculation at
period-end closing, no actual prices exist at the time of the actual activity posting. The initial
valuation of actual activity uses plan prices or, if no plan price exists (as is the case with pure
actual cost calculation); you can post the activity without a valuation. During period-end closing,
the R/3 System calculates the actual prices iteratively using this transaction and, provided you
have configured the system, revalues the activities. By revaluing the actual activities with actual
prices, you can fully allocate sender cost centers with no residual balance.
The R/3 System takes all actual costs (primary and secondary) and actual activities of the target
cost centres into account to calculate the iterative actual price. Any plan prices (whether
calculated by the R/3 System or entered manually by you) are ignored during this calculation
process.
You can use the Price Report to compare the iterative prices with those prices taking manual
price settings into account. In this way, you can analyze the effects of price changes (in actual,
the manually set prices, and the iteratively calculated plan prices) on the complete pricing
framework. Access the pricing report using the menu path: Accounting>Controlling>Cost
Centres>Information system>Reports for cost centre accounting>Prices>Cost Centres: Activity
Prices or transaction code KSBT
Procedural Steps
5.1.1. Access transaction by
Via Transaction Code MFN1
Via Menu AccountingControllingProduct Cost ControllingCost Object
ControllingProduct Cost by OrderPeriod end ClosingSingle
FunctionRevaluation at Actual PriceIndividual Processing
On screen “Revaluation at Actual Price: Initial Screen” enter information in the fields as specified in the
table below
Access transaction by
Execute