sap product costing notes

SAP Product Costing Configuration

SAP R/3 ENTERPRISE ECC6

Published by Team of SAP Consultants at SAPTOPJOBS

Visit us at www.sap-topjobs.com

Copyright 2009-11@SAPTOPJOBS

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means electronic or mechanical including photocopying, recording or any information storage and retrieval system without permission in writing from SAPTOPJOBS.

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TABLE OF CONTENTS

1. INTRODUCTION 9

2. PRODUCT COST PLANNING 12

2.1 Basic Settings for Material Costing 14

2.2 Maintain Overhead Cost Elements 15

2.3 Define Calculation Bases 20

2.4 Define Percentage Overhead Rates 24

2.5 Define Quantity-Based Overhead Rates 27

2.6 Define Credits 28

2.7 Define Origin Groups (Optional) 32

2.8 Define Costing Sheets 34

2.9 Define Overhead Keys 37

2.10 Define Overhead Groups 39

2.11 Define Cost Component Structure 412.11.1 Create a cost component structure 442.11.2 Define the cost components. 462.11.3 Assign the cost elements to these cost components. 552.11.4 Cost elements for Additive costs / without quantity structure 562.11.5 Transfer structure 572.11.6 Cost component views 572.11.7 Assign org units to cost component structure 602.11.8 Cost component split 612.11.9 Cost component structure 62

3. MATERIAL COST ESTIMATE WITH QUANTITY STRUCTURE 64

3.1 Define Costing Types 65

3.2 Define Valuation Variants 77

3.3 Define Date Control 85

3.4 Define Quantity Structure Control 88

3.5 Define Transfer Strategy 93

3.6 Define Reference Variants (Optional) 97

3.7 Define Costing Variants 101

4. SELECTED FUNCTIONS IN MATERIAL COSTING 113

4.1 Activate Cross-Company Costing (optional) 113

4.2 Activate Cost Component Split in Controlling Area Currency (Optional) 115

4.3 Define Quantity Structure Types for Mixed Costing (optional) 117

4.4 Define Costing Versions (optional) 120

4.5 Define Source Structure in Joint Production (optional) 122

5. COST OBJECT CONTROLLING 127

5.1 Product Cost by Order – Manufacturing Order Check costing variants. 128

5.2 Check Order Types 144

5.3 Define Goods Received Valuation for Order Delivery 146

5.4 Work in Process – Define Results Analysis Keys 148

5.5 Define Cost Elements for WIP Calculation 150

5.6 Define Results Analysis Versions 156

5.7 Define Valuation Method (Actual Costs) 160

5.8 Define Line Ids 164

5.9 Define Assignment 166

5.10 Define Update 169

5.11 Define Posting Rules for Settling Work in Process 173

5.12 Define Number Ranges 177

6. VARIANCE CALCULATION 178

6.1 Define Variance Keys 178

6.2 Define Default Variance Keys for Plants 180

6.3 Check Variance Variants 181

6.4 Define Valuation Variant for WIP and Scrap (Target Costs) 185

6.5 Define Order type dependent parameters 186

6.6 Define Target Cost Versions 188

6.7 Define Number Ranges for Variance Documents 195

7. SETTLEMENT 196

7.1 Create Settlement Profile 196

7.2 Create PA Transfer Structure 199

7.3 Maintain Number Ranges for Settlement Documents 202

8. PRODUCT COST BY PERIOD 205

8.1 Check costing variants for Product cost collectors 205

8.2 Check Order Types 233

8.3 Define Cost-Accounting-Relevant Default Values for Order Types and Plants242

8.4 Check Control Data for Repetitive Manufacturing Profiles 245

8.5 Activate Generation of Cost Log in Repetitive Manufacturing 249

8.6 Define Goods Received Valuation for Order Delivery 250

9. WORK IN PROCESS 251

9.1 Define Results Analysis Keys 251

9.2 Define Cost Elements for WIP Calculation 252

9.3 Define Results Analysis Versions 252

9.4 Define Valuation Method (Target Costs) 253

9.5 Define Valuation Variant for WIP and Scrap (Target Costs) (Optional) 256

9.6 Assignment of Valuation Variant for WIP (Optional) 257

9.7 Define Line Ids 258

9.8 Define Assignment 258

9.9 Define Update 258

9.10 Define Posting Rules for Settling Work in Process 258

9.11 Define Number ranges 258

10. VARIANCE CALCULATION 259

10.1 Define Variance Keys 259

10.2 Define Default Variance Keys for Plants 259

10.3 Define Variance Variants 259

10.4 Define Target Cost Versions 259

10.5 Define Number Ranges for Variance Documents 259

11. SETTLEMENT 260

11.1 Create Settlement Profile 260

11.2 Create PA Transfer Structure 260

11.3 Maintain Number Ranges for Settlement Documents 260

12. PRODUCT COST BY SALES ORDER 261

12.1 Control of Sales-Order-Related Production/ Product Cost by Sales Order 26112.1.1 Check Account Assignment Categories 26112.1.2 Check Requirements Classes 26312.1.3 Check Requirements Types 26612.1.4 Check Control of Requirements Type Determination 26812.1.5 Check Planning Strategies (selection of reqt. type through MRP group) 26912.1.6 Check Strategy Groups (selection of reqt. type through MRP group) (optional) 272

12.2 Preliminary Costing and Order BOM Costing 27312.2.1 Check Costing Type 27312.2.2 Check Costing Variants for Product Costing 276

12.3 Results Analysis 28412.3.1 Create Results Analysis Keys 28412.3.2 Define Cost Elements for Results Analysis 28412.3.3 Define Results Analysis Versions 28412.3.4 Define Valuation Methods for Results Analysis 28412.3.5 Define Line IDs 28412.3.6 Define Assignment for Results Analysis 28412.3.7 Define Update for Results Analysis 28412.3.8 Define Posting Rules for Settlement to Financial Accounting 28412.3.9 Maintain Number Ranges for Results Analysis Documents 284

12.4 Settlement 28512.4.1 Create PA Transfer Structure 28512.4.2 Create Settlement Profile 288

13. INFORMATION SYSTEM 290

13.1 Maintain Summarization Hierarchies 290

14. APPENDIX 296

14.1 Customizing settings in OBYC 296

14.2 Attach primary cost component structure (Optional) 299

1. INTRODUCTION

Product Cost Controlling is part of the Controlling application component. It’s a tool for managing costs related to the manufacturing products or Rendering services.

It uses information from Overhead Cost Controlling to calculate such costs as labor, machine, or factory overhead. It also supplies Information to Profitability Analysis so that component can calculate Contribution margins.

Product Cost Controlling includes the following tools:

Product Cost Planning

Cost Object Controlling

Information System

Product Cost Controlling can help you:-

Plan your product costs accurately

Compare alternative cost estimates to optimize your business decisions

Monitor your product costs in every stage of the manufacturing process

Carry out detailed variance analysis on each order, product, and product group

Calculate actual costs by period

Product costing is a tool for planning costs and establishing prices for materials. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit. If costing is carried out on the basis of data in Production

Planning (PP), then the cost estimate is a product cost estimate with a quantity structure (for example, BOM and routing). If costing is carried out on the basis of data that you enter manually, then the cost estimate is a product cost estimate without a quantity structure. Product costing belongs to both the Production Planning (PP) Module and the Controlling (CO) Module.

You make all settings for product costing in Customizing for Product Cost Controlling. Cost Object Controlling assigns the costs incurred by a company to units within the company, such as products, product groups, or order. Cost Object Controlling is used in the following areas:

Order Related Production.

Repetitive Manufacturing.

Process Manufacturing.

Sales Order Related Production.

Engineer to Order..

To arrive at the material cost, SAP picks up the quantity of raw and packing material required from the Bill of Material. It then valuates this quantity with the various prices available in the material master in accordance with the strategy specified in customizing.

In a like manner it does the same to arrive at the labor cost. The time required for each operation is specified in the routing or recipe. This quantity is multiplied by the activity prices maintained in the cost center accounting module. We will cover all this and more in this document

We will also cover product cost planning, cost object controlling by period (repetitive manufacturing), cost object

controlling by order, cost object controlling by sales order and configuration settings for co-product costing.

We had configured controlling area 1100, in the document on cost center accounting. We will now do the product-costing configuration in controlling area 1100.

2. Product Cost Planning

For doing the configuration we will use the following path on the SAP application screen:-

Menu Path

SAP Menu Tools AcceleratedSAP Customizing SPRO -

Edit Project

Product Cost Planning is a planning tool that helps you predict the costs Incurred when you manufacture a product or provide a service.

Organizations use it to:

Set prices for the valuation of finished and semi finished goods in the Materials Management application component

Set prices for finished and semi finished goods in the Sales and Distribution application component

Calculate the cost of goods manufactured or the cost of goods sold for the Profitability Analysis function in Controlling

Set a standard to measure production efficiency in Cost Object Controlling

Product Cost Planning shows you: The cost composition of each product The value added in each manufacturing step The value added in each overhead process

You can also create an inventory cost estimate at the end of your fiscal year to provide alternative valuations of your inventory for balance sheet Purposes.

Other functions include reference and simulation costing, which allow you to simulate the cost impact of changing one production factor or modifying the amount of overhead allocated to a product.

2.1 Basic Settings for Material Costing

The company A Ltd for its plant 1100 requires the following overheads:-

1) Material overhead

2) Production overhead

It should be calculated as follows:-

On materials 5 % material overhead should be calculated and on Wages 4 % Production overhead should be calculated.

Let us go about configuring the costing sheet from steps below.

We will now see how to create a costing sheet for the purpose of overhead calculation.

2.2 Maintain Overhead Cost Elements

Menu Path

IMG Controlling Product Cost Controlling Product Cost Planning Basic Settings for Material Costing Overhead Maintain Overhead Cost Elements

Purpose of Configuration

To allocate overhead to products, you need to define overhead cost elements.

The SAP system then posts the overheads to these overhead cost elements.

The cost center is credited with the overhead cost element and the product or the production order is debited with the overhead cost element.

Let us now create secondary cost elements for overhead.

Create secondary cost elements of type 41 (overhead).

Update the following:-

Click on Save

Create another overhead cost element for production overheads

Click on Save

2.3 Define Calculation Bases

Menu Path

IMG Controlling Product Cost Controlling Product Cost Planning Basic Settings for Material Costing Overhead Costing Sheet: Components Define Calculation Bases


The calculation base determines to which cost elements overhead is applied together.

We will define 2 bases on which overheads will be calculated:-

1) Materials2) Wages

Proceed as follows:-

Click on and update the following:-

Click on Save

Select

Double click

Update

Click on and Update the following:-

The Raw material consumption is booked to cost elements 400000, 400013 and 400700. This is created as a cost element group 11RMPM.

We update this as base for our calculation of overhead.

Click on Save

Select

Wages are booked under the primary cost element 420003 and 420506 and also wages allocation from other cost center is allocated using secondary cost element 943201.Therefore we specify this as base.

Double click and Update the following:-

Click on

Click on Save

2.4 Define Percentage Overhead Rates

Menu Path

IMG Controlling Product Cost Controlling Product Cost Planning Basic Settings for Material Costing Overhead Costing Sheet: Components Define Percentage Overhead Rates


We want to calculate 5 % overhead on Material and 2% on wages. But the condition is that, it should be only calculated for plant 1100.

To fulfill the above requirement we need to select the dependency overhead type/ plant. Thus the system will only calculate overhead rate for plant 1100. In the Std. SAP system there are quite a number of dependencies available such as plant, order type, overhead type, overhead key, company code etc.

Here we can calculate Plan and actual overhead. Plan overhead rate is required for the purpose of planning the cost of the product (standard cost estimate). Actual overhead rate is required for the purpose of charging it to the production order.

In this step we will create the overhead rate, attach the dependency and define the overhead rate. Further we will also define whether it is plan or actual.


Click on Save

Select

Double click

Click on

Overhead type – 1 is actual overhead rate

Overhead type – 2 is planned overhead rate

Click on Save

Click

Select

Double click

Click on and update the following

Click on

To maintain a new dependency the path is as follows:-

Menu Path

IMG Controlling Cost Center Accounting Actual Postings Period-End Closing Overhead Costing Sheet: Components Extras: Dependencies / Condition Tables Define Condition Tables/ Define Dependencies.

Create a new Condition table with table name as 999

You need to select fields Controlling area, Overhead type. Profit center and plant.

Create a new dependency.

Create a new access sequence. In this access sequence you will assign the condition table.

2.5 Define Quantity-Based Overhead Rates

Menu Path

IMG Controlling Product Cost Controlling Product Cost Planning Basic Settings for Material Costing Overhead Costing Sheet: Components Define Quantity-Based Overhead Rates


In addition to percentage-based overhead rates, you can also define quantity-based overhead rates, for example, 100 USD per tonne).

You can determine overhead rates in the plan and actual. Here too you need to attach the dependency.

We will not configure a quantity overhead.

2.6 Define Credits

Menu Path

IMG Controlling Product Cost Controlling Product Cost Planning Basic Settings for Material Costing Overhead Costing Sheet: Components Define Credits


By defining the credit key you are crediting the cost center and debiting the product or the production order. The credit on the cost center happens with the overhead cost element which we created earlier 1101101 Material overhead and 1101104 production overhead.

Here we attach the overhead cost center which is to be credited.You can also define what percentage of the overhead is to be allocated as fixed costs.

Therefore we will create 2 credit keys one for material overhead and other for the production overhead.


Click on

Select

Double click

Update the following:-

Click on

We update the cost center which is to be credited using the overhead cost element.

Click on

Select

Double click

Click on

Click on

This is just a small portion of the overhead and product costing covered to walk you throurgh. The complete set of FICO including Product costing comes in 11 power packed cds and you can grab them by clicking on the link below


So that’s it then my dear friends. I hope you enjoyed reading it. All our packs are shipped thru FedEx and reaches you in three days time. One more thing this configuration pack is compatible with version 4.7, version 5.0 and 6.0 So you really do have to worry about the version at all.. We have taken care of that… Also all future version changes will be provided as free updates to you. So you can sit back relax and play the music …. Get the SAP FICO Complete Configuration pack right now and join the elite league of thousands of successful SAP FICO consultants.

Prosperity and Success Be On To You .


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SAP Product Costing Configuration

SAP R/3 ENTERPRISE ECC6

Published by Team of SAP Consultants at SAPTOPJOBS

Visit us at www.sap-topjobs.com

Copyright 2009-11@SAPTOPJOBS

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means electronic or mechanical including photocopying, recording or any information storage and retrieval system without permission in writing from SAPTOPJOBS.

Standard Cost Estimate

Standard cost estimate are created at the beginning of a fiscal year or a new season. The standard cost estimate is then valid for the entire year or season. It is used to determine a standard price for materials in this period.

The standard cost estimate will write the results of the cost estimate into the costing details screen of the material master record as the future standard price once it is marked. This price is then active for internal material valuation. For example, it can be used to valuate a material components in the cost estimate.

Once the cost estimate is released, the system transfers the result of the standard cost estimate into the material master record of the material as the standard price. This price is then active for Financial Accounting and is used for valuation of the material until the next time a standard cost estimate is released.

In this period, all transactions involving products produced in-house in the Logistics module are valuated using the results of the standard cost estimate. If a material with standard price control is delivered to stock, for example, inventories of this material are valuated with the standard price determined by the standard cost estimate.

The standard prices calculated in the standard cost estimate applies only for materials with S price control.

Cost Estimate with Quantitative Structure

The cost estimate is a tool for establishing prices for materials. It is used to calculate the costs of goods manufactured and the costs of goods sold for each product unit.

In order to establish the cost estimate with quantity structure of a material, the bills of materials and routing of the material must exists for the materials to be costed.

The cost estimate with quantity structure uses the material master data to determine the material consumption and internal activities required to produce the product.

Costing calculates the cost of goods manufactured for each material made in-house in the BOM structure.

The materials in a BOM are called BOM components, these can consist of a material without its own BOM (material components), or a material with its own BOM (assembly). If the product has a multilevel BOM, then the costs for the material components are calculated and taken into account when the next highest assembly is costed. The structure of the BOM determines the sequence in which the materials are costed. The BOM components with the largest low-level code (that is, the material components) are costed first, then the BOM components with the next low-level code and so on.

Costing can also determine the cost of goods manufactured for materials produced in another plant if the two plants are assigned to the same controlling area and the company codes of the plants use the same cost component structure. In this case, the structure of the cost component split must be the same in both plants.

For raw materials, the system determines the procurement price using the entry in the material master record. A cost component split is created automatically for the material costs. You can add manually entered costs to the material costs by means of an additive cost estimate that contains separate cost components. This enables you to include such costs as freight charges and insurance costs with raw materials or stock transfer costs with semi-finished products. Other reasons for adding manually entered costs to the material cost estimate include missing routings or BOM components.

Normally, a multi-level production structure is costed using costing with a quantity structure. The costs are rolled up automatically using the low-level codes.

The materials in the low-level code with the largest number (such as raw materials) are costed and the costs are assigned to cost components.

The materials in the next highest low-level code (such as semi-finished materials) are costed. The costs for the materials costed first are rolled up and become part of the material costs of the next highest level.

This process is continued until the calculated costs of the highest material in the structure (such as the finished product) contain the costs of goods manufactured for every material in the structure.

Creating a cost estimate for a single material and its child parts with quantitative structure Procedure

Transaction CK11 Enter PPC1 (standard SAP variant - configuration transaction OKKN) as the costing

variant, material and plant. If you do not enter a lot size, the system uses the costing lot size from the costing view of the material master record.

Hit Enter The dialog box: Control Data appears Check the proposed costing dates in the dialog box and the transfer control ID. The

transfer control would determine whether the cost estimates of the child parts supplied by other plants are to be recomputed or taken as its is without recomputation. Use Transfer Control PC01 which would recompute.

Press Enter and the system will costs the material.

Result The system creates and valuates the quantity structure and calculates overhead. You can

analyze and display the costing results. After carrying out costing with quantity structure, you can see the costing results for the

header material (the highest material) in the BOM.

Choose the desired view with costs -> disp.Cost components. Click Save (Note the standard cost is still NOT updated yet at this point.

Marking a standard cost estimate for a single material master and its child parts Transaction CK20 Enter the Material, plant, future posting period and fiscal year. This period indicates the

"from" date. Click Save (Marking of standard cost estimate is being updated) is displayed. The results of the standard cost estimate are updated as the futured standard price in the

material master (accounting and costing view). Note that marking does not affect the material stock value yet.

Releasing a standard cost estimate for a single Material Master and its child parts.

Transaction CK21 Enter the Material and Valuation Area. Click Save The corresponding future standard prices are updated as the current standard prices in the

material master. How often you release a standard cost estimate depends on its planned validity period. If stocks of materials exist, the stock value changes and a document is created in Financial Accounting documenting the price change.

The system post to the inventory account with offsetting entry posted to the price difference account.

Costing Run Steps CK41 - Create costing run

Some Material CK43/CK60 - Selection of materials and display results of selection CK62 - Explode BOM goto Continue

All Material CK43/CK60 - Material field left blank and display results of selection goto Continue

Continue Before this step you have to finished the step for either Some Material or All Material.

CK42 - Select the low-level code with the highest number CK64 - Perform costing run for that low-level code CK66 - Mark and review the results

After getting approval for costing results from costing controller, you can finally post the cost estimate

CK68 - Release of standard cost estimate - Repeat the process for the next low-level code for All Material

If Error CKR1 - Delete cost estimate and start again.

Correcting the Cost Estimate CKR1 - Delete cost estimate Make necessary changes to BOM, material routing etc.

SOME material CK41 - Create costing run Repeat process start CK43/CK60 - Selection of materials and display result of selection CK62 - Explode BOM CK42 - Select the low-level code with the highest number CK64 - Perform costing run for that low-level code CK66 - Mark and review the results Get approval for costing results from the costing controller CK68 - Release of standard cost estimate Repeat the process for the next low-level code (goto Repeat process start)

ONE material CK11 - Perform single material cost estimate CK20 - Mark and review results CK21 - Release of standard cost estimate

Costing Run

Costing run is used to process mass data. The costing run enables you to cost more than one material at the same time, either online or in the background. It reproduces the entire process of costing with a quantity structure.

Process Flow Overview

Create costing run

Company code Posting parameters Costing variants Costing dates

Some material Select specific assemblies for the costing run Quantity structure determination for the selected assemblies

All materials Select all assemblies for the costing run

After completing the steps for either Some material or All materials Carry out costing run

Mark and release costing

The costing run involves separate steps, being the selection of materials for costing, determining material components via the BOM explosion, and then carrying out costing level by level.

BOM explosion is only necessary if a complete selection of materials is not carried out, such as the selection of finished products only.

Logs are generated for each step of the costing run, and can be printed out and saved in the system. With Extras you can print the logs for selection and quantity structure determination, for costing and for marking and release (online or background mode).

Creating a costing run Procedure

Transaction CK41 Enter a name identifying the costing run (i.e. test x and the (i.e. XX.XX.XX) on which

the costing run is to be executed. Press Enter. This brings you to the general data for the costing run. Enter the necessary data and press Enter. The dialog box Costing Dates appears. Check the proposed data's and make any necessary changes. Press Enter. The release is

only possible within this period message is displayed. Press Enter. If costing across company codes has been activated in the Customizing for Product Cost

Planning, the system displays the controlling area in which existing cost estimates from other company codes can be transferred.

Specify the Update Parameters. Press Enter. Specify the Print Parameters. Press Enter and Save the costing run.

Selecting Materials for a costing run Procedure

Transaction CK60 Goto -> Variants -> Get. Select the variant name. Enter a range of material numbers and plant. If the materials selected come from

different plants, leave the plant field blank. As a default value, the last costing run entered and its data are displayed. You can

change both as needed. Click the Copy button. To start the selection, choose Execute. The release is only possible message is displayed.

Press Enter. After the selection, a list screen appears with information on the costing run and data on

each material selected.

To check all messages that occurred during selection, choose Extras -> Log Save the costing run.

Displaying the results of selection Procedure

Transaction CK43 Enter the name and date of the costing run and press Enter. Before carrying out any further steps, choose Extras -> Log -> For Selection. The log

provides an overview of the results of the selection and the option to correct possible errors before carrying out further steps.

Choose the desired view with Goto. For example: Goto -> Material Overview.

Exploding BOMs for a costing run (only necessary if ALL materials are NOT selected) Procedure

Transaction CK62 Enter the name and date of the costing run. Choose Execute. The release is only possible message is displayed. Press Enter. Choose Settings -> Field selection to obtain further information on this overview. The dialog box List Field Selection appears. You can specify that

o information on special procurement is displayedo information on the BOM is displayedo the status of the selection is displayedo the number of messages is displayed

Choose Edit -> Sort to sort the list either by low-level code of by material number. To view the system messages that were issued during the BOM explosion, choose Extras -> Log.

To save the materials selected under this costing run, choose Costing run -> Save.

Choose the selected materials or low-level codes for costing Procedure

Transaction CK42 Enter the name and date of the costing run and press Enter Choose Goto -> Low-level code overview. The release is only possible message within

this period is displayed. Press Enter. This would set the materials in the "low-level code" order.

Mark the low-level codes or materials and choose For costing. (**Remember that the lower low-level codes that is, the low-level codes with the highest numbers must be costed first.)

The system will display the number of low-level code(s) selected for cost estimate. Press Enter.

Save the costing run. Perform transaction CK64 to execute costing run contains that low-level code. Then save

the costing run.

Perform transaction CK66 to mark the costing contains that low-level code. Review the results and save.

Perform transaction CK68 to release the costing run contains that low-level code. Repeat the process from step 2 to 9 for the next higher number of low-level code.

Executing a costing run Procedure

Transaction CK64 Enter the name and date of the costing run. Choose Execute. Release is only possible within this period is displayed. Press Enter. When the costing run is finished, you come to the overview of the low-level codes. Select Materials and choose Goto -> Detail screen. The system displays the costs for the material as cost of goods manufactured, cost of

goods sold, inventory costs and so on. For detailed information on the costs, choose Costs -> Display cost components or

Itemization or Cost element itemization or Costed BOM. The system displays the costs for the material as cost of goods manufactured, cost of

goods sold, inventory costs and so on. For detailed information on the costs, choose Costs @ Display cost components or

Itemization or Cost element itemization or Costed BOM. Costing run -> Save.

Marking multiple standard cost estimates Procedure

Transaction CK66 Enter the name and date of the costing run. Choose Execute. The release is only possible message is displayed. Press Enter. Choose Execute. The release is only possible message is displayed. Press Enter. Check the prices and save.

Releasing standard cost estimate Procedure

Transaction CK68 Enter the name and date of the costing run. Choose Execute. Costing run -> Save. The results of the standard cost estimate are updated in the material master record as the

current standard price. At this time, the stock value of the material is changed and the new standard price for valuating material movements is active.

Make sure the status is FR for all. If not, call the consultant.

Deleting material cost estimates from the database Procedure

Transaction CKR1 Enter a company code, plant, material number, costing variant, costing version, Interval

for validity form and Interval for validity to or overwrite them. Select the Current std cost estimates.

Specify whether the deletion should be simulated (Test run) or actually carried out (Reorganization). Set the With log indicator if desired.

Choose Execute. Save. The system issues a message indicating the number of cost estimates deleted.

Status Management in costing

The costing status provides the following information:

informs you about the current processing status of the cost estimate informs you about errors in the cost estimate prevents incorrect data from being passed on prevents a cost estimate from being released again

The status is set for each low-level code. This means that you can release the costing results for specific low-level codes even though the costing run itself has the status KF.

The following costing status can be set by the system:

Status Meaning ER Opened SE Selected without errors SF Selected with errors KA Costed without errors KF Costed with erros VO Marked without errors VF Released with errors FR Released without errors FF Released with errors FM Release through material ledger closing