Special Procurement Key

Can be used for Two purpose

1Special Procurement Purpose
2Cost estimate Purpose

1Special Procurement Purpose

It spcifies how the material to be procu
It ignores normal procurement type
Special Proc key can be maintained in M
MRP2 tab is the highest priority than co
Costig1 tab is the hightest prioity than

Business Case :
Where multiple M
in this case , You

2Cost estimate Purpose

We need to read costestimate fro
While generating cost estimate fo
Possible to add adtive cost ( Freig

System follows the below strateg

1It transfer cost es
2If no cost estimat
 Note : Possible to add aditive c

Example :

Mfg Plant1(Supllying Plant)

Hyd

FGX
S 10000

Config
Need to defne special procurement key for Receivin
 Save

Test Case
1 Extend Material Master (Y_101) from Y100 to the plant Y101
2 Assign Special proc key in MM MRP2 tab and Costing1 tab in the receiv
3 Run the cost estimate for Y_101 in Plant Y101

Extend Material Master (Y_101) from Y100 to the plant Y101

MM01
 Save

Run the cost estimate for Y_101 in Plant Y101

CK11N
or CK40N
Save cost estimate

CK24 Mark & Release Cost estimate

Release Cost Estimate
MM03
ement Purpose
Purpose

aterial to be procured and it specifies procure the material from specific sou
curement type
be maintained in MRP2tab and Costing1 tab
est priority than costing 1 tab in case of procurement
htest prioity than the mRP1tab in case of Costing

Where multiple Mfg plants and Depos

in this case , You need to procure material for Depo from specific Mfg Plant

ad costestimate from Mfg plant to Depo(warehoseplant) Products

ng cost estimate for Depo Prducts, need to read cost estimate from Mfg plan
adtive cost ( Freight, insurance , stroage cost etc ) in addtion to the Mfg plan

the below strategy while generating cost estimate for Depo products
It transfer cost estimate from Supplying (Mfg) plant if already cost estimate
If no cost estimate exists at the suplying plant , then is uses supllying plant b
ble to add aditive cost like freight , insurance , stroage cost in addition to th

Mfg Plant2 Depo Plant3(Chenai)

Pune

FGX FGX Costing 1tab-SpKey rea

S 11000 S 10000
nt key for Receiving Plant
plant Y101
ng1 tab in the receiving plant Y101

to the plant Y101

 al from specific source of procurement

m specific Mfg Plant then we can use Special procurement Key

Products
mate from Mfg plant and this cost estmate need to be updated in the Depo
tion to the Mfg plant cost while updating cost to the Depo Products

po products
ready cost estimate exists in the supplying plant
ses supllying plant bOM and routing to generate cost estimate for Receiving
st in addition to the supplyig plant cost whle updating cost to the Depo by u

t3(Chenai) Depo Plant(4) Mumbai

ting 1tab-SpKey read from PlanFGX Costing 1tab-SpKey read from Plant2
S 11000
ated in the Depo plant
Products

ate for Receiving Plant ( Depo)

to the Depo by using the functionality of Aditive cost along with Special Pro

ead from Plant2

with Special Procurement Key
 Aditive Cost estimate
Aditive cost
To add the additional cost t in the cost estimate of product
Addon cost means like freight , insurance , delivery cost,

Aditive cost can be used in below cases

1 Raw material cost estimate ( Cost estimate for external p
2 To generate cost estimate in depo's or ware house plants
1 Raw material cost estimate
Where you need to add the fixed cost in addition to the procur
2 To generate cost estimate in depo's or ware house plants
where transfer the goods between mfg plants and depos
where you need to run cost estimate in Depo's by reading cost

Configuration:
need to activate aditive cost indcator in valation variant and als

Aditive cost indicator in valuation variant:

Aditive cost indicator in Costing variant:

OKKN
Save

Scenario1
Add addtive cost to the Depo Plant
Example :
Add aditive cost 3000inr to th

Plant Y100(Supplying plant)

Y_101
 S

Process Steps
CK74N Maintain Aditiv cost for Y_101
CK11N/CK24 Run Cost estimate (CK11N, CK

Test Case
CKR1 Delete the existing cost estimate for Y_101 in Plan

CK74NMaintain Aditiv cost for Y_101 in the Plant Y101 (

CK11N - Create
Save

CK24 Mark & Release Cost estimate

Case2 Aditive cost settings in OKTZ
Save
 Save

CK11N
e of product
e , delivery cost, stroage cost

ate for external procurement materials)

are house plants ( Cost estimate for Inhouse mfg prodcts at Depo Plant Level)

on to the procurement cost in the cost estimate of product and also to be inventorise

and depos
by reading cost estimate from supllying plant and also to be consider delevery cost ,

n variant and also in costing variant

It reads the aditive cost in the cost estimae if any aditive cost ma

Note : It allow to maintain aditive cost through costing variant

ost 3000inr to the Y_101 for the Plant Y101 in addtition to the Supplying plant(Y100)

upplying plant) Plant Y101( Receiving Plant)

Y_101
 75,549.23 + Aditive cost(3000)===> S

tiv cost for Y_101 in the Plant Y101 ( Receiving Plant

mate (CK11N, CK24) for Y_101 in the Plant Y101 ( Pre request Special Proc key to be

for Y_101 in Plant Y101

the Plant Y101 ( Receiving Plant

Plant Level)

o to be inventorised ( Procurement cost along with Add on cost)

der delevery cost , insurance , stroage cost etc

ny aditive cost maintained for the product

costing variant
plying plant(Y100) cost

ng Plant)
 78549.23

cial Proc key to be maintaind)

Material Split valuation
1 Activate Split Valuation
 Activation of Material split valuation at client level
Application of Split valuation at material and plant combination

Configure Split Valuation

 Global type represents the valuation types
Global category represents the valuation category
Valuation cetegory represent singe digit code either numeric or alpha nu

Click on GlobalTypes
Y11
For SFG-Inhouse Mfg

Save
 Save

Global category can be called valuation category

 Back arrow

Default Ext Procurement :

Valuation type automatic
Assigne Valuation types to the Valuation Categories
 Activate and Save

Back Arrow
Same way need to be done for valuation category 8
 Saved
Test Case
Y_102

Y_201
Inhouse Mfg
Ext Procurement Local
Ext Procurement Import
 Procurement of Material Locally and Import for Y_304

Produce Prodct inhouse for Y_201 and Procuree xternally

How to apply split functionality at material level

Example : Y_304

MM01
Save Material Y_304 created

Created material at Header Level

Create the Material at Valuation Type Level

Save
Y_304=======> Extend material to valuation type " Import Procuremen
Save
Create material for SFG
Save

Extend material SFGX to Inhouse Mfg

MM01 Extend material to External Procurement Local
Save
MM01 Extend material to External Procurement -Import
 Save

CS01 BOM for SFGX

Y_201
Save
Note :
Not posible to specify valuation type for bOM and also BOM Item levels

CA01 Create Routing

 Op10

Op20
OP30

Save

Maintain Production version in MM ,MRP4

MM02
Continue
Save

Create PO for Split Material Y_304

Local Procurement
Import Procument

ME21NCreate PO
Save Standard PO created under the number 4500000267

MIGO 101

MIRO
MM03 Y_304
Imported Mat ( Valuation Type 11)
Valuation Type ====> Y10 Local Procument
Check Header Level
Goods Issue 1PC Local Proc and 1PC import to Cost center

MIGO 261
Save
Purpose :
It is is used where same material having multip
Where you need to account to different GL acc
Where you need to valuate inventory different

The above requirement can be addressed in tw

Option1: Without Material Split Valuation
Create separate material code for each a
It increases multiple material code
Not recomandable this approach

Option2: Actiation of Material Split Valuatio

With same material code , We can

Activation of Spit valuation at the Client level.

Usease( application ) to the specific material/ plant level
We can activate split valuation for specific material by assigning valuation cat

Valuation category
Valuation Types

Valuation category : Further clasification

Valuation Type : It represents the spe

Example :
 RMX====> Procuring both f
Requirement : Need

Proposed Solution :

Once Activate Split valuatio

RMX Header Tab

Valuation Type1 Tab

Valuation Type2 Tab

Header Tab only having bot

Valuation type leel having O

Valuation of Inventory and

Mateial split valuation can be applied for any Type of Material i.e for both RM
Mateial split valuation can be applied for any Type of procurement i.e for bot

Example for Inhouse Mfg Products

SFGX / FGX produce some
 Requirement : Need to vau

Valuation Category for SFG ( Z)

Valuation type3 for S
Valuation type4 for S

SFGX Header Tab

Valuation type3
Valuation type4

Possible to perform STD cost estim

FGZ
BOM
RMX(Split Mat)

RMX Header Price

Val Type 1

Val Tpe2

Conclusion: Lower level Component Hea

t client level
al and plant combination
de either numeric or alpha numeric code

Val Category for RM Val Types

Y10 RM Local Proc
7 Y11 RM Import Proc

Val Category for SFG Val Type

Y20 SFG-Inhouse
Y21 SFG-Local
8 Y22 SFG-Import
External Proc Import

Valuation Type Y11 was/were created

System proposes the Default valuation type wh
System by default propses the default valuation
Create and Save
FG
Y_304 V Split Valuation
Y_301 V Without Split Valuation
A_201 SFG Split aluation
V
BOM1 , Routing1 S
V
V
BOM for Y_201
 Y_304 5kgs Split Mat
Y_301 2kgs
Routing for Y_201

mport for Y_304

Procuree xternally
on type " Import Procurement"
Y_201
OM and also BOM Item levels
100 PC
70 PC
GR from Vendor to Stock
material having multiple or alternative procurements and each alternative procureme
unt to different GL accouts based on source of procurement
te inventory differently based on source of procurement

an be addressed in two ways

terial Split Valuation
aterial code for each alternate procurement
multiple material codes and further it increses the PP master data like BOM
ndable this approach

Material Split Valuation

material code , We can valuate inventory differently based on source of procurement

ssigning valuation category to the the specific material in Accounting 1 tab

: Further clasification of material to valuate and account diffrently at the valuation ty

It represents the specific source of procurement of material and possible to valuate

===> Procuring both from Locally and also from Import procurement
Requirement : Need to valuate differently for RMX Local procurement and for RMX
Need to post different GL accounts based on procuremet

Proposed Solution : We can activate Split valuation for R

Valuaion Category for RM====> Single digit code (Y)

Valuation Type1(RM Local procurement)
Valuation type 2 ( RM Import Procurement)

Activate Split valuation for Material then Material having Header Tab and also Valuati

Header Tab ===> Always price control should be V at t

Valuation Type1 Tab =====> We canuse any price control i.e ei

Valuation Type2 Tab =====> We canuse any price control i.e ei

er Tab only having both Accounting Tab and costing Tab

tion type leel having Only Accounting Tab and NO costing tabs at the Valuatio Type L

tion of Inventory and account determination possible at the Valuation Type Level

aterial i.e for both RM and FG ( External procurment o Inhouse Procurement mat or
ocurement i.e for both external procurement of material and also Inhouse Mfg Prod

e Mfg Products
/ FGX produce some times producing inhouse and some times procuring externally
irement : Need to vauate differently for External procurement and Inhouse Mfg and

tegory for SFG ( Z)

Valuation type3 for SFG-Inhouse
Valuation type4 for SFG-External Procurement

Header Tab Price Control V Valuation Class:

Valuation type3 Price Control S Valuation Class Y

Valuation type4 Price Control V Valuation Class Y

erform STD cost estimate At vauation type Level and STD price updates both Header

RMX(Split Mat) CE 10070 1Kg X 110 Whih Price will apply in the co
In cost estimate , Component

Price Stock Stock value

V 110 2kg 220 CE10070

V 100 1kg 100 CE10071

S 120 1kg 120 CE 10070

level Component Header Price and Header Tab valuation class apples in the Cost esti
ault valuation type while creating PO , During the goods movements
s the default valuation type while creaing PO, during the goods movements
t Valuation
rnative procurement gives different price.

ke BOM

e of procurement and also to account different gL accounts based on procurement o

ng 1 tab

at the valuation type level

ossible to valuate inventory with different methods and possible to use different valu
ment and for RMX Import Procurement
ed on procuremet like Local procurement and Import Procurement

lit valuation for RMX

igit code (Y)

l procurement) ====> Different Price control and different Valuation Class===>
port Procurement) ====> Different Price control and different Valuation Class===>

ab and also Valuation type Tab

ol should be V at the Header tab level and price atomatecially calculates based on val

price control i.e either V or S and can be used different valuation class

price control i.e either V or S and can be used different valuation class

e Valuatio Type Level

tion Type Level

curement mat or Both)

nhouse Mfg Products

curing externally
 Inhouse Mfg and also need to account different GL account for External procuremen

Valuation Class: Both Accounting and Costing Tabs available

Valuation Class Y200 Only Accounting tabs availabl and No Costing Tabs
Valuation Class Y201 Only Accounting tabs availabl and No Costing Tabs

dates both Header tab level and also Specific Valuation Type Level

will apply in the cost estimate of SFGX===> Alwys applier Split materia Header price a
mate , Component Header tab valuation class applies in the cost estimate of Higher ev

es in the Cost estimate of Higher Level Components

vements
on procurement of source

o use different valuation class at valuatio type level for the same material
aluation Class===> example : Price control V or S and Valution class : Y100
aluation Class===> example : Price control V and Valution class : Y110

ulates based on valuation type tab

ternal procurement and Inhouse Mfg

osting Tabs
osting Tabs

eria Header price applies in the cost estimate

timate of Higher evel component ( Example) : RMX Header tab valuation class applie
ss : Y100
uation class applies in th cost estimate of SFGX for rMX)
Std cost estimate for Split Material (Y_201)
Observe which Valuation class gL accounts used for BOM Item S
Observe Which BOM Item Split mat price used
Observe Std cost estimate updation both at header tab level and

CK11N Y_201

As per Valuation Strategy

Quotation ( Not there)
Purchase Order
Val Type Y10.
Val Type Y11
Save
CK24 Mark & Release Cost Estimate
Release cost estimate
Check other Valuation Type Levels
Production Cycle for Split Mat Y_201

CO01
 Save

MIGO 261 Goods issue to prd Order

CO11N Fill confirmation for All the operations
OP10
 OP20

OP30
Save

MIGO 101 GR from Prd to stock for Valuation Type Y20

 MM

Complete perd end process

1 Variance cal
2 Settelement
1 Variance cal
KO88 Prd Order settelement
Cr Prd Var 9108
Dr COGM 9108 Dr Prd Order

Summary of total cost of Good Manufactured

Total mFg cost =COGM = 213612.59

GR@STd Price 222720.78
Production Variance -9108.19

Dr Stock 222720.8 With Std price

Cr Prd Var 9108.19
Cr COGM 213612.6
s used for BOM Item Split mat

at header tab level and At Valuation Type Level

100
150 System Picked Highest Price
 Val Category
Default inhouse Val Type
Val Cat Based
Prd Order

Break ====>9.05 (25Minutes)

===> Inventories to Stock

====> W/o to P&L as MM having Std price

With Std price

t inhouse Val Type Y20

05 (25Minutes)
Mixed Cost Estimate

Mixed Cost Estimate = (( Alternative1 pro

A_303 FGX
Alternative 1====> BOM1, Routing1
Or
Alternative 2====> BOM2, Routing2

Mixed Cost Estimate =

Always generates Mixed Price variance i

Mixed Price Variance = Differenc

Alternative 1
Aternative2

Config Steps
1 Define QtyStructure Type
2 Define Costing Versions
 Master Data
1 Edit Procurement Alternatives
2 Maintan Mixed Ratio

Run the Cost estimate

1 CK11N or CK40N
Mark and Release cost estimate
2 CK24 or CK40N

Config :
Quantity Structure Type
It specifies how the Mixed ratio c
It specifies which procurement a
Save
Time Dependancy :
0
1
2

It specifies how the mixed

0
 1

Percentage Valid :
If Indicator is activa

Qty structre type can be used while maintaing mixed ra

Define Costing Versions

By using different costing versons , we c
Qty structure type can be assigned to the
While generating cost estimate , Costing
 Save
Master Data
1 Edit Procurement Alternatives
2 Maintan Mixed Ratio
 1 Edit Procurement Alternatives
Need to specify the possible proc
By using process categories , we

Example of Process categories

1 Producion
2 Purchase Order
3 Sub contracting

2 Maintan Mixed Ratio

We will maintain mixed ratio for

Test Case
Y_106 FGZ
Alternative1 BOM1
Alternative2 BOM2

Process Steps
1 MM01 Create MM for Y_105
2 CS01 BOM1
BOM2
3 CA01 Routing1
Routing2

4 Maintain Production Versions in MM MR

production version1
production version2
 5 Edit Procurement Alternatives

6 Maintan Mixed Ratio

7 CK11N Cost estimate

Observe Mixed Cost estim
8 CK24 Mark and Release ost estimate

9 CO01 Ceate Prd Order

Choose which production

10 MIGO 261 GI

11 CO11N Confirmations

12 MIGO 101 GR

13 CC Perd End process

14 PC Perd End Process

Reval of Acty
Actual OH
WIP
Val calculation
Observe the Mixed Price v

Settelement of the order

1 MM01 Create MM for A_303

 Save

2 CS01 BOM1
Create BOM
 Save

Create BOM2
 Save

CS03 Display BOM

CA01 Creating Routing for A_303
Routing1
OP20
OP30

Routing was saved with group 50001763 and material A_303.

Save

CA02 Create Routing2

OP20

OP30
 Routing was saved with group 50001763 and material A_303.

CA03 Display the Routing

Define the Production versions
MM02 MRP4

Production versions
Which BOM , Routing to be consider and lot size
Wether allow to use in Repeteive mfg or not ?
Prd versions maintained with the combintion M
Example :
Prd version1( Alternative1 process)----------> BO
Prd version2( Alternative2 process)----------> BO

MM02
Click on Continue
Save
 Save

Only for Understanding purpose, Just run CK11N without saving cost e

CK11N Alternative1

CK11N Alternative2 Just analyse and Don't sav

CK91N Edit Procurement Alternatives

Here we will specify possible procurement alternatives for spec

 Save

CK94 Maintain Mixed Ratio

We need to weighatage for each procurement alternati

Alternative1 60%
Alternative2 40%
MR: The relevant alternativ includes in the mixed cost estim
If indicator not activated====> It excludes from mixed c
Save
CK11N Run the Mixed cost estimate
Save

Mixed Cost estimate

1 Alternative1 cost estimate
2 Alternative2 cost estimate

Mixed Cost estimate =

lotsize 100
Per Unit

CK24 Mark and release cost estimate

Release cost estimate
Prodction Process
Produce product by using Alternative2 BOM and Routing
We can select options i.e which BOM , Routing to be used while

CO01
 Release Order and Save
Order number 840022 saved

MIGO 261 GI to the Prd Order

 Post

CO11N Confirmation of Activities

 Save

OP20
 Save

OP30

Save
MIGO 101 GR from Prd order to stock

Complete Perd end Process

1 CC Perd end process

2 Period end process in PC
MFN1 CON2 Revaluation of Activities
 Dr Prd Order
Cr CC

KGI2 CO43 Actual OH calculation

 Dr Prd Order
Cr CC

KKAX KKAO WIP calculation

KKS2 KKS1 Variance calculation
Mixed Cost estimate
1 Alternative1 cost estimate
2 Alternative2 cost estimate

Mixed Cost estimate =

lotsize 100
Per Unit
Mixed-Price Variance = TgtCred MxdCstg - Target Credit
KO88 CO88 Settelement of the Order
 (( Alternative1 production process cost estimte X Mixed Ratio( Weighate assigned)
=============================================
Total Mixed Ratio ( Weighatage)

Std Price Poducton Plan during th

OM1, Routing1 10000 60%

OM2, Routing2 13000 40%

(10000 X60+13000X40)/(60+40)
11200 ====> It Updates as Std Price

ixed Price variance if Mixed cost estimate used

Variance = Difference between Mixed Std price and Alternative cost estimate
Mixed Price Variance
(11200-10000) 1200
(11200-13000) -1800

ructure Type
ng Versions
ment Alternatives
ed Ratio

ow the Mixed ratio can be maintained / applied

hich procurement alternatives are to be used and what mixed ratios consider while
 No time-dependency
Based on fiscal year
Based on period

cifies how the mixed ratio can be maintained

No time-dependency
 Ratio is valid for unlimited period

Based on fiscal year

Ratio Is valid for the specific year

Based on period
Ratio Is valid for the specific Period

If Indicator is activated then it insures that all the alternatives of the total mixed % s

maintaing mixed ratio and it calls the while generating cost estimate

sting versons , we can generate multiple cost estimates and results can be saved in t
n be assigned to the combination of Costing type +Valation variant +Costing version
t estimate , Costing version along with costing variant it calls the qty str type to appli
ernatives
 ernatives
ify the possible procurement alternatives for the specific products
cess categories , we need to specify the posssible relevant procurement alternatives

rocess categories
Producion
Purchase Order
Sub contracting

tain mixed ratio for possible pocurement alternatives that means weighatage given t

Mixed ratio
Routing1 60%
Routing 2 40%

or Y_105

Versions in MM MRP4 tab

ersion1 BOM1 Routing1
ersion2 BOM2 Routing2
ernatives

ve Mixed Cost estimate

lease ost estimate

e which production version can be used to produce the product

mations

ve the Mixed Price var analysis

of the order
and material A_303.
rial A_303.
 consider and lot size of versions
eteive mfg or not ?
h the combintion Mat per plant combination

process)----------> BOM1 and Routing1

process)----------> BOM2 and Routing2
ithout saving cost estimate

nalyse and Don't save Cost estimate

lternatives for specific material for each process category wise
ocurement alternative wise
he mixed cost estimate
cludes from mixed cost estimate
 100units Mixed Ratio
cost estimate 4742067 60
cost estimate 5808313 40
Mixed Cost estimate /unit

stimate = (4742067*60+5808313*40)/100
lotsize 100 5168565.4
Per Unit 51685.654
and Routing
ng to be used while creating Production Order
100units Mixed Ratio 100unit
4742067.29 60 2845240
5808313.49 40 2323325
Mixed Cost estimate /unit 5168566

(4742067*60+5808313*40)/100
5168565.4
51685.654
- Target Credit
 Weighate assigned) + Alternative2 Production Proces cost estimate XMixed Ratio( W
==========

ducton Plan during the year (Mixed Ratio)

cost estimate
atios consider while generating Mixed cost estimate
f the total mixed % should be equal to 100% otherwise it rejects to save Ratios.

ults can be saved in the different versions for future analysis purpose
ant +Costing version
qty str type to applies the mixes ratio in the cost estimate
rement alternatives

s weighatage given to the alternatives

48622.12
59284.58
100unit per unit
2845240.374 28452.40374
2323325.396 23233.25396
5168565.77 51685.6577
per unit Mixed Cost estimate Individual Cost Estimate
28452.4 47420.67
23233.3 51685.7 58083.13
51685.7
ate XMixed Ratio( Weighate Assigned) )

My Production Plan ===>10000PC

6000PC

4000PC
to save Ratios.
Mixed Price Var
-4265.0271
6397.43 ===> Mixed Price Var for alternative2
4500000267
1000012
1000013
Mixed Cost Estimate

Mixed Cost Estimate =

A_303 FGX
Alternative 1====> BOM1, Routing1

Alternative 2====> BOM2, Routing2

Mixed Cost Estimate =

Always generates Mixed Price variance

Mixed Price Variance = Differ

Alternative 1
Aternative2

Config Steps
1 Define QtyStructure Type
2 Define Costing Versions
 Master Data
1 Edit Procurement Alternative
2 Maintan Mixed Ratio

Run the Cost estimate

1 CK11N or CK40N
Mark and Release cost estimate
2 CK24 or CK40N

Config :
Quantity Structure Type
It specifies how the Mixed ra
It specifies which procuremen
Save
Time Dependancy :
 Percentage Valid :

Qty structre type can be used while maintaing mixed

Define Costing Versions

By using different costing versons , we
Qty structure type can be assigned to th
While generating cost estimate , Costing
 Save
Master Data
1 Edit Procurement Alternatives
2 Maintan Mixed Ratio
 1 Edit Procurement Alternatives
Need to specify the possible p
By using process categories ,

Example of Process categorie

2 Maintan Mixed Ratio

We will maintain mixed ratio

Test Case
Y_106 FGZ
Alternative1
Alternative2

Process Steps
1 MM01 Create MM for Y_105
2 CS01 BOM1
BOM2
3 CA01 Routing1
Routing2

4 Maintain Production Versions in MM M

production version1
production version2
 5 Edit Procurement Alternatives

6 Maintan Mixed Ratio

7 CK11N Cost estimate

8 CK24 Mark and Release ost estima

9 CO01 Ceate Prd Order

10 MIGO 261

11 CO11N

12 MIGO 101

13 CC Perd End process

14 PC Perd End Process

Reval of Acty
Actual OH
WIP
Val calculation

Settelement of the order

1 MM01 Create MM for Y_105

Save

CS01 BOM1
CS01 BOM2

Save

CA01 Create Routing1

Op20
 Save

CA01 Routing2
OP10
Op20
Op30
Op10
Op20

Op30

Save

Maintain Production version1 BOM1

Maintain Production version2 BOM2
Save
 Save

CK91N 1 Edit Procurement Alternatives

Need to specify the possible procurement alternative
By using process categories , we need to specify the p
Save
CK94 Maintan Mixed Ratio
We will maintain mixed ratio for possible pocuremen
Alternative1
Y_105 60
 Save

CK11N Run cost estimate then observe the mixed cost estimate

Working notes
 CK 11N ===> Run cost estiumate with version1
CK 11N ===> Run cost estiumate with version2

Mixed Cost estimate = (37431 X60+132147*40)/(60+40

75317

CK24 Mark & Release Cost Estimate

MM03
Production Process
Object : How to select relevant production version while creating Prd Or
Check mixed Price Variance

Co01 Create Production Order

 Order number 1000013 saved

MIGO 261
CO11N OP10 OP20

Save

MIGO 101 GR from Prd order to Stock

 Save

Period end Process

MFN1 Revaluation of Activities

Actual OH cal
Variance Cal Observe Mixed Price Var
Settelememt

MFN1 Revaluation of Activities

 Dr Acty GL 214036.69
Cr Acty GL 214036.69

KGI2 CO43 Actual OH Calculation

FI entry Co entry
Dr Admin OH GL Dr
Dr Mat OH GL Dr
Dr Utilities OH GL Dr
Cr Admin OH GL Cr
Cr Mat OH GL Cr
Cr Utilities OH GL Cr

KKS2 KKS1 Variance Calculation

 Std Cost(Mixed Cost estimate)
Individual Std cost Alternative2
Mixed Price Var

KO88 CO88 Production Order Settelement

 Dr Prd Var 343491.04 Dr
Cr COGM 343491.04 Cr

KKBC_ORD Check Order Cost Report

 (( Alternative1 production process cost estimte X Mixed Rati
==================================
Total Mixed Ratio ( Weighatage)

Std Price Poducton Plan du

e 1====> BOM1, Routing1 10000 60%
Or
e 2====> BOM2, Routing2 13000 40%

st Estimate = (10000 X60+13000X40)/(60+40)

11200 ====> It Updates as Std Price

nerates Mixed Price variance if Mixed cost estimate used

Mixed Price Variance = Difference between Mixed Std price and Alternative cost esti
Mixed Price Variance
Alternative 1 (11200-10000) 1200
Aternative2 (11200-13000) -1800

Define QtyStructure Type

Define Costing Versions
Edit Procurement Alternatives
Maintan Mixed Ratio

CK11N or CK40N
estimate
CK24 or CK40N

re Type
It specifies how the Mixed ratio can be maintained / applied
It specifies which procurement alternatives are to be used and what mixed ratios co
endancy :
0 No time-dependency
1 Based on fiscal year
2 Based on period

It specifies how the mixed ratio can be maintained

0 No time-dependency
 Ratio is valid for unlimited period

1 Based on fiscal year

Ratio Is valid for the specific year

2 Based on period
Ratio Is valid for the specific Period

e Valid :
If Indicator is activated then it insures that all the alternatives

e used while maintaing mixed ratio and it calls the while generating cost estimate

ifferent costing versons , we can generate multiple cost estimates and results can be
ure type can be assigned to the combination of Costing type +Valation variant +Costi
erating cost estimate , Costing version along with costing variant it calls the qty str ty
 rement Alternatives
Mixed Ratio
 rement Alternatives
Need to specify the possible procurement alternatives for the specific products
By using process categories , we need to specify the posssible relevant procurement

Example of Process categories

1 Producion
2 Purchase Order
3 Sub contracting

Mixed Ratio
We will maintain mixed ratio for possible pocurement alternatives that means weigh

Mixed ratio
BOM1 Routing1 60%
BOM2 Routing 2 40%

Create MM for Y_105

Routing1
Routing2

Production Versions in MM MRP4 tab

production version1 BOM1 Routing1
production version2 BOM2 Routing2
 rement Alternatives

Mixed Ratio

Cost estimate
Observe Mixed Cost estimate
Mark and Release ost estimate

Ceate Prd Order

Choose which production version can be used to produce the product

GI

Confirmations

GR

nd process

nd Process
Reval of Acty
Actual OH

Val calculation
Observe the Mixed Price var analysis

Settelement of the order

Save
Routing1
Routing2
 sible procurement alternatives for the specific products
ories , we need to specify the posssible relevant procurement alternatives
ratio for possible pocurement alternatives that means weighatage given to the alter
Alternative1
40 ===> weightage = Mixed Ratio
serve the mixed cost estimate

Mixed Ratio
version1 37431.86 Version1 60
version2 132146.6 Version2 40

(37431 X60+132147*40)/(60+40)
tion version while creating Prd Order
OP30
Order 214036.7
CC 214036.7
Co entry
Prd Order
Prd Order
Prd Order
Cost Center
Cost Center
Cost Center
 75317.75
132146.59
56828.84

ettelement
ACB COPA
Prd Order
timte X Mixed Ratio( Weighate assigned) + Alternative2 Production Proces cost estim
==========================
Weighatage)

Poducton Plan during the year (Mixed RaMy Production Plan ===>10000PC
6000PC

4000PC

s Std Price

lternative cost estimate

Variance
at mixed ratios consider while generating Mixed cost estimate
mited period

specific year

specific Period

all the alternatives of the total mixed % should be equal to 100% otherwise it rejects

cost estimate

and results can be saved in the different versions for future analysis purpose
tion variant +Costing version
calls the qty str type to applies the mixes ratio in the cost estimate
cific products
vant procurement alternatives

that means weighatage given to the alternatives

he product
given to the alternatives
Mixed Ratio
Proces cost estimate XMixed Ratio( Weighate Assigned) )

10000PC
otherwise it rejects to save Ratios.

is purpose
 Cost estimate Without Qty structure

Cost Estimate Without Qty Structure

To generate cost estimate for those prod

Business Cases :
Ext Proc mat 1 To capitalise or inventorie with Ad
Inhouse mfg 2 Where the Product does not have
1 To capitalise or inventorie the Add on cost i.e like freight , insurance, s

We can address by using below options

1 Aditive cost
2 MM condition types ====>
3 Costing sheet
Example for External procurement Mat
Y_306
Proc cost +Aditive cost +IOH

3 Costing sheet

Costing sheet
Add on cost obsorbed through Costing sheet Approach
Maintain Purchase info records
ME11 Base Procurement price
Costing sheet ==>OH can be calculated
MOH on mat cost
AOH on conversion cost
UOH on conversion cost
STd cost (1000+100)

Process Steps
1 MM01
2 ME11
3 CK74N
3 CK11N
4 CK24

1 MM01
Save

2 ME11 Maintain Purchase Info records

Save

CK74N Aditive cost

Save

Save
OKKN
Maintain Costing sheet under Overhead on Material Compo
Save
CK11N Run cost estimate
CK24 Mark & Release cost estimate
MM03 Check MM
cost estimate for those products does not have Qty structure

pitalise or inventorie with Add on cost i.e like freight , insurance, stroage cost etc in a
e the Product does not have finalied qty structure ( especialy in the intial stage of pro
t i.e like freight , insurance, stroage cost etc in addition to the procurement cost for e

ess by using below options

Aditive cost
MM condition types ====> Origin Group
Costing sheet

Proc cost +Aditive cost +IOH(Costing sheet)

proach

ement price 1000

culated
on mat cost 10% 100
on conversion cost
on conversion cost
 1100 +50(Aditive cost) Total std ost =1150

Create MM
Maintain Purchase Info records
Aditive cost
Run cost estimate
Mark and release cost estimate

Create MM Y_306
ain Purchase Info records
verhead on Material Components
stroage cost etc in addition to the procurement cost for external procurement mater
he intial stage of product life cycle)
ocurement cost for external procurement materials
Total std ost =1150
ocurement materials ( Raw material cost estimate)
Cost estimate without qty str for inhouse mfg prd which doesn't have qty stru

Inthis case , possible to add the components and re

Business Cases
1

Example :
Y_107 FGZX
Costing 1 tab===> Don't activat

Process Steps
1 MM01
2 run KKPAN instead of CK11N
3 CK24

1 MM01

Y_107 FGZX
Costing 1 tab===> Don't activate indic
 Save

KKPAN Run cost estimate Without Qty Str

run KKPAN instead of CK1Run cost estimate Without Qty Str
Item category M To use / access the Material component informati
E Internal Activity ====> To use / Access the acty an
G To Apply the Costing sheet Overhead calculation
O To apply the formulas
V To add the text item where components / acty ma
S To make Totals
Requirement=======> Need to apply additional OH @5% on Total Cost

Item category need to be used "O" to build the formulas ====> 5% on total cos
5% X ( sum of row1 :8)
Formula field for calculations at item level

You can enter a formula in this field with items of item category S (totals item) and O (arithmetic operation).

Example

Item category Formula Meaning

S =('1':'5') Total of items 1, 2, 3 and 4

S =('2';'5') Total of items 2 and 5

O =('6')*0.5 Item 6 multiplied by 0.5

o = ('1':'8') *.05
Sum of Rows from 1 to 8 then multiply with 5%
How to make total
Save
CK24 Mark and release cost estimate
MM03 Check MM
sn't have qty structure

mponents and resource required directly in the cost estimate while generating cost e

Tool Kit Making

Just adding or grouping different type of tools and m

Gift Box
Just adding few gift items making as Gift Box
Example Johnson Baby gift bo
Dry Fruits Box
Jut adding different dry fruits items making as Gift B

Intial Product life cycle , Where Qty structue (BOM , Routing still not finalised

==> Don't activate indicator cost estimate With qty str

Creae MM
ead of CK11N Run cost estimate Without Qty Str
Mark and release cost estimate

Creae MM

Inhouse mfg which does not have BOM and Routing

n't activate indicator cost estimate With qty str
mponent information from SAP
Access the acty and cost center information From SAP
head calculation

mponents / acty master data does not exist in SAP

n Total Cost

=> 5% on total cost

 13446.19

thmetic operation).

13446.19 5% 672.31

multiply with 5%
generating cost estimate without qty structure

pe of tools and making as a Kit

s Gift Box
nson Baby gift box

making as Gift Box

still not finalised) not finalised

Co Production Orders

Co Production orders
Can be used where Product does not have Qty sructure
To make Tool kit ( By adding different type of tools as a T
To produce product which doesnot have qty structue ( in

Example :
Tool Kit
Gift packs
Dry fruits pack
Cnfiguration :
1 Check Costing Variants for CO Production Orders
To gnerate plan cost for CO Order
Costing Type
Enter then change the valuation variant
Define CO Order Types
Order Category 4

SAP predefined Order Type

 Save

Save
Define Cost-Accounting-Relevant Default Values for Order Types and Plants
 Save

Define Planning Profiles for CO Production Orders

Purpose :
To maintain manual planning for CO Orders
Optional step
 Save
Assigne Planning Profile to the CO Order Type
KOT2

Front End

Y_107 Without Qty Str

Process Steps
KKF1 Creatation of CO Production Orde
KKF4 Planning for cO Production Orders
MIGO 261 GI to the CO Prd Order
KB21N Activity Confirmation
MIGO 101 GR from Prd order to Stock
Period end Process
1 Period End process in CC
2 Period end Process in PC for CO Pr
1
2
3
4
5

KKF1 Creatation of CO Production Orders

 Save
Order was created with number 1000014

KKF4 Maintain planning for cO Orders

 Save
KKBC_Ord Check Order Plan Cost

MIGO 261 GI to CO Order

Save
 Dr Mat Consumtion
Cr Stock

KB21N Manual Confirmation of Activities

Dr Lab Acty Dr
Dr Pack Acty Dr
Cr Lab Acty Cr
Cr Pack Acty Cr
Note : System it applies below price while confirming activities
Priority1 Actual price for the perd if available
Priority2 Plan price if actual activity pice not availabl
Here no valuation stratey appiicable

Assume still Prd not yet completed and reached month end
Need to perform perd end process
System calculates WIP if CO order status do
System cancels WIP if CO Order status is DE
 System calculates variance if CO Order statu

Peiod end process

Completed period end Process in FI
Complete period end process in CC
Complete period end process in PC

Completed period end process in CC

Actual CC Split
Actual Activity Allocations

Complete period end process in PC

Revalution of Acty
Actal oH cal
WIP calculation
Variance calculation
Settelement of Order

MFN1 CON2 Revalution of Acty

 Dr Lab Acty Dr
Cr Lab Acty Cr

Note: Already calculated withActual price

KGI2 CO43 Actual oH calculations

Dr Admin GL Dr. Prd Order
Cr Admin GL Cr. Cost Center

KKAX KKAO WIP Clculation

KO88/CO88 Settelement of the order
 Dr WIP BS 46922.58
Cr WP P&L 46922.58

Next Month Completed Production Process

MIGO 101 Goods received from Co Order to Stock

Dr Stock 14118.5
Cr COGM 14118.5 Cr. Prd Order
( Actual GR qty X Std Price)

Change the Order Status

KKF2
Reachd month end . Complete the Period end process

Complete Perd end process in FI

Complete Perd end process in CC
Actual Cost center Split
Actual acty price cal
Complete Perd end process in PC
Revaluation of Activities
Actual oH cal
WIP cal
Var cal
Settelement

KKAX KKAO WIP calculation

 WIP=0 Order status is Delv

KKS2 KKS1 Variance calculation

KO88 CO88 Order Settelement
 Dr Prd Var 32804.08 Dr
Cr COGM 32804.08 Cr

FI entry for WIP Reversal

KKBC_ORD
Techo or Close the Order status
KKF2
Save
es not have Qty sructure
fferent type of tools as a Tool Kit)
not have qty structue ( in the intial product life cycle)

tion Orders

09
CO Prd Orders

CP01
r Order Types and Plants
ual planning for CO Orders
on of CO Production Orders
for cO Production Orders
CO Prd Order
Confirmation
Prd order to Stock

nd process in CC
nd Process in PC for CO Prd Order
MFN1/CON2 Revaluation of Activities
KGI2/CO43 Actual oH cal
KKAX/KKAO WIP Calculation
KKS2/KKS1 Variance calculation
KO88/CO88 CO Order Settelemet

Production Orders
With qty str===> Prd Order
Without Qty Str====> Co prd Order
 Dr CO Order

CO Prd Order
CO Prd Order
CC
CC
hile confirming activities
e perd if available
l activity pice not available for the period

d reached month end

WIP if CO order status does not have status DEL or TECO

IP if CO Order status is DEL or TECO
 variance if CO Order status is DEL or Teco

rocess in FI
ocess in CC
ocess in PC

ocations
 Co Order
CC

ctual price
der to Stock
14118.5
iod end process

ess in FI
ess in CC

ess in PC
atus is Delv
ttelement
PSG COPA
CO Prd Order
=> Prd Order
tr====> Co prd Order
How to change Production Order status to Techo or Closed

CO02

How to Close Order

Sub Contract process
Joint /By Product Process Order
Origin Group Process Order
OH Grp Process Order
Scrap Process