Automating Cost Roll

up Activities

Date: 20-06-2024
• The purpose of this document is to define the Month-End process for Cost
Rollup in SAP

• Cost Roll up

Cost roll up means, the product cost of lower level material (say HALB) will
get rolled up to next level (say FERT) of material in the multilevel BO
(Bill of material) scenario.
 Overhead Cost is Total of Indirect Material, Indirect Labour and Indirect expenses

 WIP calculation function valuates the unfinished products.

 Result Analysis is a functionality in SAP controlling to valuate ongoing, unfinished

activities, such as service orders, production orders, internal orders or
projects at month end.

 Variance calculation is the difference between actual cost and planned cost of
production orders.

 Actual settlement is settling the variance which will occur after the completion of
production order.

 Cost estimate is the estimation of cost of a particular product being manufactured

 Cost Roll Up AS IS Process SAP

All User Log off Display log for WIP Close material master Create Cost
and result analysis posting period Run(CK40N)
(KKAL) (MMPV)
Specify the validity
Close posting dates for cost Save
periods for D- Variance calculation estimates
Customer , M- on production cost Open a previous
Material category by order (KKS1) period to allow back
using a BKG JOB postings to material Selection
master (MMRV)
Actual Overhead Struc.Explosion
Calculation(CO43
)for the period of Costing
Actual settlement- Enter
month to close
Collective (CO88) Costing Run(CK40N) Parameters
Analysis

Work in Progress Marking

Execute
calculation(KKAO)- Run Various Reports one by
using a BKG JOB Release one

Manual Activity
 Cost Roll Up TO BE Process SAP

1. All User Log off 5. Display log for 11.1. Create Cost
9. Close material
WIP and result Run(CK40N)
master posting period
analysis (MMPV)
(KKAL) 11.2. Specify the
2. Close posting validity dates for Save
periods for D- 6. Variance cost estimates
Customer , M- calculation (KKS1) 10. Open a previous
Material category (Schedule BKG job) period to allow back
postings to material
Selection
master (MMRV) 11.3. Enter
3. Actual
Overhead Struc Explosion Parameter
Calculation 7. Actual s and save
(Schedule BKG settlement- Costing variant
job) Collective (CO88) 11. Costing (Schedule
(Schedule BKG job) Run(CK40N) Analysis BKG job)

4. Work in Progress Marking

calculation(KKAO)- 8. Run Various
(Schedule BKG job) Reports
Release

Manual Activity
Automation can be done
 Selection SAPRCK60

Struc Explosion SAPRCK62

Cost Estimate Steps

Costing SAPRCK10

Programs
Schedule Background Job
Analysis RKKBCAL2

Marking SAPRCK23

Release SAPRCK23
Challenges while performing Cost roll up every month
 Referring to Slide no 5, from point 3 to 7 job can be schedule on a specific date at
a start of month.

 After completion of stage 1 (point 3 to 7) background job, user can complete the
manual activities to be carried out from point 8 to 11.2 mentioned in slide no 5.

 Once manual steps gets completed we can schedule a background job for point
no 11.3.

 To complete the manual steps between 2 background job is a challenging task to

get complete.