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Basics of SAP Standard Cost estimate-

Understanding the flow of cost settings-Part 1
November 15, 2013 | 41,097 Views |

Hrusikesh Dalai
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FIN Controlling
FIN (Finance) | MAN Production Planning (PP) | SAP ERP | accounting | available | beginner | bp | budget | business process
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8/27/2018 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs

There is a lot of forum question answers and content available in SCN

about Standard Costing

Note-This is a beginner’s and basic guide to understand cost estimate

and various settings behind it.

This document is intended to explain the cost ows to a standard cost

estimate. Explaining various settings in background.  I will try to explain this
from backward from Cost estimate to con guration. This will answer some
basic questions like Material Cost, Overhead Cost, Labor etc. in a standard
cost.

When you take a look at a material cost estimate what you will understand
the Quantity Structure, Valuation, Costing Dates etc.

Standard cost of a material looks like in T-Code- CK13n (you can view
this from costing-2 view in material master too T-Code-MM03.)
I will try to walk through these 6 tabs below explaining basic
configurations and data flows from different configuration to Standard
Cost estimate.

     Screenshot-1

For our analysis purpose I have selected standard layout 1SAP02-

Costing items (overview)
there are several  layout  available in standard SAP and user can
de ne their own too.

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     Screenshot-2

Screenshot-3

1-Costing Data–

It contains data like Costing variant, Costing Version, Lot Size and Transfer
Control. Lets talk about Costing Messages and Costing status later on.

Screenshot -4

Costing variant-Configuration Costing Variant in T-code OKKN- (Will

cover in more detailed way in part 2.)

-Assign various Control parameters like Costing Type, Valuation variant,

Date Control QTY structure Control, Transfer Control etc.

-Maintain parameters di erent Tabs like Control, Qty Structure, Addictive

Cost, Assignment and Misc.
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Screenshot 5

Costing Version configuration using T CODE- OKYD

-Number that serves to di erentiate between cost estimates for the same
material.

     Screenshot 6

Lot Size

– The costing lot size in the material master record is usually used as a basis for costing all
materials, however one can manually change the lot size during cost estimate.

Transfer Control-Configure in T-code OKKM usually used the standard.

    

Screenshot 7

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– This controls how costing with quantity structure searches for existing
cost estimates when existing costing data are transferred to another cost
estimate. In this example we assigned PC02 in TCODE OKKN.

2-Costing Dates-we will learn more about date control in Costing variant

     Screenshot 8

-Costing Date from -Date from which the cost estimate is valid.

-Costing Date to- This date determines the date up to which the cost
estimate is valid

-Qty Structure Date-Date with which the quantity structure is selected for
the cost estimate with quantity structure.

-Valuation Date-Date on which the materials and activities in a cost

estimate are valuated.

3-Qty Structure-It contains BOM and Routing data. ( Usually PP

functionality)

Screenshot 9

Bill Of Material (BOM)- T CODE- SET up CS01 , To view T-code -CS03

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Screenshot 10

If you go back and refer my screenshot 3 the detailed cost (M) comes from
this settings.

Note- we will have to do cost component settings too will cover the point in
net part.

Routings- Create Routings T-Cod-CA01 ( PP functionality) to view

CA03

– A routing shows operations in a sequence. This form the basis for

Lead time scheduling. Product costing, capacity planning, Refer

screenshot 3 Cost Internal Activity (E) comes from this settings. We
will understand more detail in my next part about assigning work
center, activity and activity planning.

Screenshot 11

4- Valuation- It contains the currency, Costing sheet and Overhead key.

T CODE-KZS2-Creating and maintaining Costing Sheet,

T CODE-KOOK-De ning and changing Overhead key

Screenshot 12

if you refer to screenshot 3 Overhead cost (G) ows from this settings from
costing sheet and overhead key.

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Costing Sheet-It controls the calculation of Overhead basically we use

one costing sheet for each object for which system is to determine
overhead costs. ( will see more detail in my next part)

The Overhead Key-The overhead key is used to determine order-

specific or material-related overhead rates. The overhead amounts
depend on the plant and the overhead key. The overhead depends
primarily on the overhead key. If an overhead key is not maintained for
the material or the order, overhead is to be determined in relation to the
plant.

After de ning a costing sheet that points to two condition tables. In

the rst table, the overhead amount depends on the overhead key.
In the second table, the overhead amount depends on the plant. An
access sequence determines which conditions have priority.

5- HISTORY- It contains the user and costing run date data.

Screenshot 13

Cost By/Marked By/released By- The user names who performed

respective costing run task.

Some large companies have di erent person to mark the cost and di erent
person to release the cost as it recti es the human errors if any. But in my
experience i have seen mostly it is performed by the same person.

Costing run – usually this data updated when we use T-code CK40n to do
standard costing in case of individual material costing using CK11n this eld
will not populate. So we can always go and check that costing run data to
verify the settings at that point of time.

6-Costs-Baiscally it is summarization and cost component view

TCODE-OKTZ setting up cost component Structure (we will see in detail in

part 2 of this document)

If you refer back screenshot 8 breaking out cost like overhead, labor
and material based on these settings here.In Product Cost Controlling,
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the cost component structure determines how the results of material

costing are updated. The cost component structure groups the costs for
each material according to cost component (such as material costs,
internal activities, external activities, and overhead). If the material is
used in the production of another material, the cost component split
(which breaks down the costs according to material costs, internal
activities, external activities, overhead, and so forth) remains in the
system when the costs are rolled up

Screenshot 14

Error Log- Identi es the messages if costed with error or without error.

Intention of creating this document is to reach out to the beginners and

those who wanted to know and understand the ow of Standard Costing. i
will update the document as n when some more points needs to be
included .

This is my rst document and I should thank Ajay , Forum members,and

SCN  SAP ERP Financials – Controlling

I was nervous to put together the basics in a document and publish it in

SCN.  I will continue edit it for improvement.

The next part of document will update the more detailed con guration and
steps to understand Basics of Standard costing

Refer to next part here http://scn.sap.com/docs/DOC-49167

Best Regards

Hrusikesh Dalai

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