SAP Product Costing

Configuration


SAP R/3 ENTERPRSE ECC6

Published by Team of SAP Consultants at
SAPTOPJOBS

Visit us at www.sap-topjobs.com

Copyright 2009-11@SAPTOPJOBS




All rigIis rcscrvcd. No ari of iIis ullicaiion may lc rcroduccd,
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mcans clccironic or mccIanical including Ioiocoying, rccording
or any informaiion sioragc and rciricval sysicm wiiIoui crmission
in wriiing from SAPTOPJODS.




Hcllo Evcryonc,

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TADLE OF CONTENTS

1.INTRODUCTION .......................................................................................................... 5
2. PRODUCT COST PLANNING ................................................................................... 7
2.1Basic Settings for Material Costing ................................................................................................................ 9
2.2 Maintain Overhead Cost Elements .............................................................................................................. 10
2.3 Define Calculation Bases .............................................................................................................................. 15
2.4 Define Percentage Overhead Rates .............................................................................................................. 19
2.5 Define Quantity-Based Overhead Rates ....................................................................................................... 22
2.6 Define Credits .............................................................................................................................................. 23












. INTRODUCTION


Produci Cosi Conirolling is ari of iIc Conirolling alicaiion
comoncni. Ii's a iool for managing cosis rclaicd io iIc
manufaciuring roducis or Fcndcring scrviccs.

Ii uscs informaiion from OvcrIcad Cosi Conirolling io calculaic
sucI cosis as lalor, macIinc, or faciory ovcrIcad. Ii also
sulics Informaiion io Profiialiliiy Analysis so iIai comoncni
can calculaic Coniriluiion margins.

Produci Cosi Conirolling includcs iIc following iools.
Produci Cosi Planning
Cosi Oljcci Conirolling
Informaiion Sysicm

Produci Cosi Conirolling can Icl you.-

Plan your roduci cosis accuraicly
Comarc alicrnaiivc cosi csiimaics io oiimizc your
lusincss dccisions
Moniior your roduci cosis in cvcry siagc of iIc
manufaciuring roccss
Carry oui dciailcd variancc analysis on cacI ordcr,
roduci, and roduci grou
Calculaic aciual cosis ly criod

!roduct costIng is a iool for lanning cosis and csiallisIing
riccs for maicrials. Ii is uscd io calculaic iIc cosis of goods
manufaciurcd and iIc cosis of goods sold for cacI roduci
unii. If cosiing is carricd oui on iIc lasis of daia in Produciion


Planning (PP}, iIcn iIc cosi csiimaic is a roduci cosi csiimaic
wiiI a quaniiiy siruciurc (for camlc, DOM and rouiing}. If
cosiing is carricd oui on iIc lasis of daia iIai you cnicr
manually, iIcn iIc cosi csiimaic is a roduci cosi csiimaic
wiiIoui a quaniiiy siruciurc. Produci cosiing lclongs io loiI
iIc Produciion Planning (PP} Modulc and iIc Conirolling (CO}
Modulc.
You malc all sciiings for roduci cosiing in Cusiomizing for
Produci Cosi Conirolling. Cosi Oljcci Conirolling assigns iIc
cosis incurrcd ly a comany io uniis wiiIin iIc comany, sucI
as roducis, roduci grous, or ordcr. Cosi Oljcci Conirolling
is uscd in iIc following arcas.

Ordcr Fclaicd Produciion.

Fcciiiivc Manufaciuring.

Proccss Manufaciuring.

Salcs Ordcr Fclaicd Produciion.

Enginccr io Ordcr.
.
To arrivc ai iIc maicrial cosi, SAP icls u iIc quaniiiy of raw
and acling maicrial rcquircd from iIc Dill of Maicrial. Ii iIcn
valuaics iIis quaniiiy wiiI iIc various riccs availallc in iIc
maicrial masicr in accordancc wiiI iIc siraicgy sccificd in
cusiomizing.

In a lilc manncr ii docs iIc samc io arrivc ai iIc lalor cosi.
TIc iimc rcquircd for cacI ocraiion is sccificd in iIc rouiing
or rccic. TIis quaniiiy is muliilicd ly iIc aciiviiy riccs
mainiaincd in iIc cosi ccnicr accouniing modulc. Wc will covcr
all iIis and morc in iIis documcni

Wc will also covcr roduci cosi lanning, cosi oljcci conirolling
ly criod (rcciiiivc manufaciuring}, cosi oljcci conirolling ly


ordcr, cosi oljcci conirolling ly salcs ordcr and configuraiion
sciiings for co-roduci cosiing.

Wc Iad configurcd conirolling arca 1100, in iIc documcni on
cosi ccnicr accouniing. Wc will now do iIc roduci-cosiing
configuraiion in conirolling arca 1100.




. !roduct Cost !IannIng

For doing iIc configuraiion wc will usc iIc following aiI on iIc
SAP alicaiion scrccn.-
enu !atb

SAP Mcnu Tools AccclcraicdSAP Cusiomizing SPFO - Edii
Projcci


Produci Cosi Planning is a lanning iool iIai Icls you rcdici iIc
cosis Incurrcd wIcn you manufaciurc a roduci or rovidc a
scrvicc.

Organizaiions usc ii io.

O Sci riccs for iIc valuaiion of finisIcd and scmi finisIcd goods
in iIc Maicrials Managcmcni alicaiion comoncni

O Sci riccs for finisIcd and scmi finisIcd goods in iIc Salcs
and Disiriluiion alicaiion comoncni

O Calculaic iIc cosi of goods manufaciurcd or iIc cosi of goods
sold for iIc Profiialiliiy Analysis funciion in Conirolling

O Sci a siandard io mcasurc roduciion cfficicncy in Cosi Oljcci
Conirolling

Produci Cosi Planning sIows you.
O TIc cosi comosiiion of cacI roduci
O TIc valuc addcd in cacI manufaciuring sic
O TIc valuc addcd in cacI ovcrIcad roccss



You can also crcaic an invcniory cosi csiimaic ai iIc cnd of your
fiscal ycar io rovidc alicrnaiivc valuaiions of your invcniory for
lalancc sIcci Puroscs.

OiIcr funciions includc rcfcrcncc and simulaiion cosiing, wIicI
allow you io simulaic iIc cosi imaci of cIanging onc roduciion
facior or modifying iIc amouni of ovcrIcad allocaicd io a roduci.



. asIc SettIngs Ior aterIaI CostIng


TIc comany A Lid for iis lani 1100 rcquircs iIc following
ovcrIcads.-

1} Maicrial ovcrIcad

2} Produciion ovcrIcad

Ii sIould lc calculaicd as follows.-

On maicrials 5 % maicrial ovcrIcad sIould lc calculaicd and on
Wagcs 4 % Produciion ovcrIcad sIould lc calculaicd.

Lci us go aloui configuring iIc cosiing sIcci from sics lclow.

Wc will now scc Iow io crcaic a cosiing sIcci for iIc urosc of
ovcrIcad calculaiion.




. aIntaIn Overbead Cost EIements

enu !atb

IMC Conirolling Produci Cosi Conirolling Produci Cosi
Planning Dasic Sciiings for Maicrial Cosiing OvcrIcad
Mainiain OvcrIcad Cosi Elcmcnis

!urpose oI ConIIguratIon
To allocaic ovcrIcad io roducis, you nccd io dcfinc ovcrIcad cosi
clcmcnis.
TIc SAP sysicm iIcn osis iIc ovcrIcads io iIcsc ovcrIcad cosi
clcmcnis.
TIc cosi ccnicr is crcdiicd wiiI iIc ovcrIcad cosi clcmcni and iIc
roduci or iIc roduciion ordcr is dcliicd wiiI iIc ovcrIcad cosi
clcmcni.
Lci us now crcaic sccondary cosi clcmcnis for ovcrIcad.
Crcaic sccondary cosi clcmcnis of iyc 41 (ovcrIcad}.
Udaic iIc following.-









Clicl on Savc

Crcaic anoiIcr ovcrIcad cosi clcmcni for roduciion ovcrIcads










Clicl on Savc




.3 DeIIne CaIcuIatIon ases

enu !atb

IMC Conirolling Produci Cosi Conirolling Produci Cosi
Planning Dasic Sciiings for Maicrial Cosiing OvcrIcad Cosiing
SIcci. Comoncnis Dcfinc Calculaiion Dascs

!urpose oI ConIIguratIon

TIc calculaiion lasc dcicrmincs io wIicI cosi clcmcnis ovcrIcad is
alicd iogciIcr.
Wc will dcfinc 2 lascs on wIicI ovcrIcads will lc calculaicd.-
1} Maicrials
2} Wagcs

Procccd as follows.-

Clicl on and udaic iIc following.-





Clicl on Savc

Sclcci

Doullc clicl

Udaic

Clicl on and Udaic iIc following.-

TIc Faw maicrial consumiion is loolcd io cosi clcmcnis 400000,
400013 and 400700. TIis is crcaicd as a cosi clcmcni grou
11FMPM.



Wc udaic iIis as lasc for our calculaiion of ovcrIcad.



Clicl on Savc

Sclcci

Wagcs arc loolcd undcr iIc rimary cosi clcmcni 420003 and
420506 and also wagcs allocaiion from oiIcr cosi ccnicr is
allocaicd using sccondary cosi clcmcni 943201.TIcrcforc wc sccify
iIis as lasc.

Doullc clicl and Udaic iIc following.-

Clicl on





Clicl on Savc



.4 DeIIne !ercentage Overbead Rates

enu !atb

IMC Conirolling Produci Cosi Conirolling Produci Cosi
Planning Dasic Sciiings for Maicrial Cosiing OvcrIcad Cosiing
SIcci. Comoncnis Dcfinc Pcrccniagc OvcrIcad Faics

!urpose oI ConIIguratIon

Wc wani io calculaic 5 % ovcrIcad on Maicrial and 2% on wagcs.
Dui iIc condiiion is iIai, ii sIould lc only calculaicd for lani
1100.

To fulfill iIc alovc rcquircmcni wc nccd io sclcci iIc dccndcncy
overbead typeJ pIant. TIus iIc sysicm will only calculaic
ovcrIcad raic for lani 1100. In iIc Sid. SAP sysicm iIcrc arc quiic
a numlcr of dccndcncics availallc sucI as lani, ordcr iyc,
ovcrIcad iyc, ovcrIcad lcy, comany codc cic.

Hcrc wc can calculaic Plan and aciual ovcrIcad. Plan ovcrIcad raic
is rcquircd for iIc urosc of lanning iIc cosi of iIc roduci
(siandard cosi csiimaic}. Aciual ovcrIcad raic is rcquircd for iIc
urosc of cIarging ii io iIc roduciion ordcr.

In iIis sic wc will crcaic iIc overbead rate, aiiacI iIc
dccndcncy and dcfinc iIc ovcrIcad raic. FuriIcr wc will also
dcfinc wIciIcr ii is lan or aciual.

Clicl on and update tbe IoIIowIng:-





Clicl on Savc

Sclcci

Doullc clicl

Clicl on






OvcrIcad iyc 1 is aciual ovcrIcad raic

OvcrIcad iyc 2 is lanncd ovcrIcad raic

Clicl on Savc

Clicl

Sclcci

Doullc clicl

Clicl on and udaic iIc following



Clicl on

To mainiain a ncw dccndcncy iIc aiI is as follows.-

enu !atb



IMC Conirolling Cosi Ccnicr Accouniing Aciual Posiings
Pcriod-End Closing OvcrIcad Cosiing SIcci. Comoncnis
Eiras. Dccndcncics / Condiiion Tallcs Dcfinc Condiiion Tallcs/
Dcfinc Dccndcncics.

Crcaic a ncw Condiiion iallc wiiI iallc namc as 999

You nccd io sclcci ficlds Conirolling arca, OvcrIcad iyc. Profii
ccnicr and lani.

Crcaic a ncw dccndcncy.

Crcaic a ncw acccss scqucncc. In iIis acccss scqucncc you will
assign iIc condiiion iallc.

.S DeIIne QuantIty-ased Overbead Rates

enu !atb

IMC Conirolling Produci Cosi Conirolling Produci Cosi
Planning Dasic Sciiings for Maicrial Cosiing OvcrIcad Cosiing
SIcci. Comoncnis Dcfinc Quaniiiy-Dascd OvcrIcad Faics

!urpose oI ConIIguratIon

In addiiion io crccniagc-lascd ovcrIcad raics, you can also dcfinc
quaniiiy-lascd ovcrIcad raics, for camlc, 100 USD cr ionnc}.

You can dcicrminc ovcrIcad raics in iIc lan and aciual. Hcrc ioo
you nccd io aiiacI iIc dccndcncy.

Wc will noi configurc a quaniiiy ovcrIcad.





.6 DeIIne CredIts
enu !atb

IMC Conirolling Produci Cosi Conirolling Produci Cosi
Planning Dasic Sciiings for Maicrial Cosiing OvcrIcad Cosiing
SIcci. Comoncnis Dcfinc Crcdiis

!urpose oI ConIIguratIon

Dy dcfining iIc crcdii lcy you arc crcdiiing iIc cosi ccnicr and
dcliiing iIc roduci or iIc roduciion ordcr. TIc crcdii on iIc cosi
ccnicr Iacns wiiI iIc ovcrIcad cosi clcmcni wIicI wc crcaicd
carlicr 1101101 Maicrial ovcrIcad and 1101104 roduciion
ovcrIcad.

Hcrc wc aiiacI iIc ovcrIcad cosi ccnicr wIicI is io lc crcdiicd.
You can also dcfinc wIai crccniagc of iIc ovcrIcad is io lc
allocaicd as ficd cosis.

TIcrcforc wc will crcaic 2 crcdii lcys onc for maicrial ovcrIcad and
oiIcr for iIc roduciion ovcrIcad.



Clicl on and udaic iIc following.-



Clicl on

Sclcci

Doullc clicl

Udaic iIc following.-





Clicl on

Wc udaic iIc cosi ccnicr wIicI is io lc crcdiicd using iIc
ovcrIcad cosi clcmcni.





Clicl on


Sclcci

Doullc clicl

Clicl on





Clicl on


This is just a small portion of the overhead and product costing covered to walk you
throurgh. The complete set of FCO including Product costing comes in 11 power
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take care and good day

Vish
www.sap-topjobs.com





SAP Product Costing
Configuration


SAP R/3 ENTERPRSE ECC6

Published by Team of SAP Consultants at
SAPTOPJOBS

Visit us at www.sap-topjobs.com

Copyright 2009-11@SAPTOPJOBS




All rigIis rcscrvcd. No ari of iIis ullicaiion may lc rcroduccd,
siorcd in a rciricval sysicm, or iransmiiicd in any form, or ly any
mcans clccironic or mccIanical including Ioiocoying, rccording
or any informaiion sioragc and rciricval sysicm wiiIoui crmission
in wriiing from SAPTOPJODS.