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Product Cost Collectors

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Product Cost collector

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Product Cost CollectorsIn this section of Product Cost by Period you define the control parameters and default values that affect the product cost collector.You define the following: That you are using product cost collectors in Cost Object Controlling Costing variantsCosting variants contain the control parameters for preliminary costing and for simultaneous costing. Valuation variantsA valuation variant is a parameter in a costing variant and controls the following: Which material prices or activity prices are used to valuate materials, internal activities, and external activities in preliminary costing Which material prices or activity prices are used to valuate materials, internal activities, and external activities in the actual data Which costing sheet is used to apply the overhead Order typesThe order type determines such things as: Whether commitments management is active Which control parameters are proposed as a default for settlement Default values for order typesIn the default values for each order type and plant, you determine which parameters are proposed as defaults values for Cost Object Controlling (such as the costing variant and the results analysis key).Check Costing Variants for Product Cost CollectorsThe costing variant contains the control parameters for the cost estimate.Here you check the costing variants that are used in the Product Cost by Period component for the following purposes: For the preliminary cost estimate of a product cost collector For simultaneous costing and final costing of a product cost collectorYou carry out the following steps: Costing variants for the calculation of activity quantitiesHere you check the control parameters of the preliminary cost estimate for the product cost collector (SAP standard costing variant PREM9) and the material cost estimate with quantity structure (for more information on costing variants for material costing with quantity structure see the section Define Costing Variants).If you are a repetitive manufacturer and have specified in the repetitive manufacturing profile that you want activity types allocated automatically at confirmation, make an additional entry in the repetitive manufacturing profile as to whether the activity quantities are proposed on the basis of the preliminary costing of the product cost collector or on the basis of the standard cost estimate for the material. This means that the costing variants entered here that are used for the preliminary costing of the product cost collector or for standard cost estimates can also be used for the actual costing of the default activity types (also see: Check control data for the repetitive manufacturing profile). Costing variants for valuation of internal activitiesHere you check the valuation variant assigned to the costing variant. This valuation variant determines which activity prices are used for valuation of the actual activity types and business processes That are allocated manually That are allocated automatically through a confirmation in PP That are charged to the product cost collector through template allocationRequirementsStandard SettingsThe standard system contains a number of predefined costing variants for the product cost collector. The standard cost estimate for the material uses costing variant "PPC1 / standard cost estimate (material)".This costing variant contains the following settings: Costing type "01 / standard cost estimate (material)" Costing type "01 / standard cost estimate (material)" specifies among other things that the results of the standard cost estimate can be written to the material master record as the standard price. This costing type cannot be changed. The Valuation variant "001 / planned valuation, material"(also see: Define valuation variants for material cost estimates with quantity structure ) The quantity structure determination ID "PC01 / standard quantity structure control 2"The quantity structure determination ID specifies which strategy is used to select BOMs and routings for the standard cost estimate. Costing variant "PREM / preliminary costing for product cost collector" is used for the preliminary cost estimate for the product cost collector. The version-specific cost estimate uses costing variant PREM.This costing variant contains the following settings: Costing type "19 / product cost collector"Costing type "19 / product cost collector" specifies that this cost estimate is suitable for the preliminary costing of product cost collectors. You can only use the costing type "19" for the preliminary costing of product cost collectors. Valuation variant "001 / planned valuation, material"Because the BOM and routing for the cost estimate are selected through the production process of the product cost collector, the quantity structure determination ID does not play a role here. Costing variant "PPP3 / product cost collector" is used for selection of the activity prices to valuate the actual activity types and business processesThis costing variant contains the following settings: Costing type "07 / production order - actuals"Costing type "07 / production order - actuals" specifies the technical attributes of the cost estimate. This costing type cannot be changed. Valuation variant "007/ production order - actual"This valuation variant determines which activity price is used valuate actual activity types and business processes (see also: Check valuation variants for PP and CO manufacturing orders).NoteAlthough it is technically possible to have two costing variants with the same costing type and valuation variant, this should be avoided to prevent data from being overwritten.The reason for this is that the key structure for the costing results in the database uses the costing type and the valuation variant, rather than the costing variant.SAP recommendationYou should assign a different valuation variant to each costing variant with which you want to save cost estimates.This one-to-one assignment enables you to change the valuation strategies later as required.ActionsDecide whether the existing costing variants meet your requirements.To create a new cost estimate for calculation of the activity quantities, proceed as follows:Enter an alphanumerical key and a name for the costing variant. Then proceed as described in the text Define costing variants for material cost estimates with quantity structure. The quantity structure control is not relevant for costing variants that were created for the preliminary costing of product cost collectors.To create a new costing variant for valuation of the internal activities:1. Specify an alphanumerical key and a text for the new costing variant.2. Assign a costing type and a valuation variant to the new costing variant.If you want to use your own parameters, you must carry out the steps under Define valuation variants product cost collectors.Further NotesIf you don't want automatic activity type or business process allocation, you can manually enter a cost allocation for the product cost collector. To do this, you must define a corresponding screen variant. See also:Define screen variants for activity allocationsTo establish the costing variant as the default costing variant, enter the costing variant in the default values for the order type.

Check Valuation Variants for Product Cost CollectorsIn this step you check the valuation variants for Product Cost by Period. The valuation variant for the preliminary costing of the product cost collector is used to determine the following: Which price is used to valuate materials, external activities and subcontracting and which activity price is used to valuate activity types and business processes Which costing sheet is used for preliminary costing The valuation variant for simultaneous costing is used to determine the following: What activity price is used to valuate the actual activity type and business process postings Which costing sheet in the product cost collector is defaultedThis costing sheet is used for overhead calculation in period-end closing.Strategies for material valuation or price determination for external processing and subcontracting are not included in simultaneous costing and final costing.To be able to use the valuation variant, you must assign it to a costing variant.Standard Settings The standard system contains a number of predefined valuation variants. If necessary, you can change these valuation variants to meet your requirements by changing the standard strategy sequences.The following default valuation variants exist in the standard costing variants for Product Cost by Period: 001 - Plan Valuation MaterialThis valuation variant for the preliminary costing of the product cost collector is specified in the SAP standard costing variant PREM (Preliminary Costing, Cost Collectors). 007 - Production Order, ActualThis valuation variant for the simultaneous costing of product cost collectors is specified in the SAP standard costing variant PPP3.Actions1. Enter an alphanumeric key and a name for the new valuation variant.2. Specify the relevant valuation strategies.3. Enter a costing sheet.4. Assign the valuation variant to a costing variant.NoteIf you want to use different valuation strategies or different overhead rates in plants that belong to the same company code, you can define plant-specific valuation variants by assigning a valuation variant to a plant. Choose the push button Valuation variant/plant. If you don't do this, the valuation variants apply to all your plants.Check Order TypesIn this step you check the control parameters for the order types. The order type is client-specific, so each order type can be used in all controlling areas and plants.The following parameters are important with regard to the product cost collector: Order categoryProduct cost collectors have the order category "05 / Product Cost Collector".Order categories are predefined in the SAP system and characterize the technical attributes of the orders. For example, an order category establishes which transactions can be used to process the order in question. CO partner updateThis determines whether information on the partner is retained when dealing with allocations between orders and other CO objects (such as cost centers or projects), and whether a totals record should be written for each order. Order classificationYou can specify that orders of this order type are classified. As a rule, it is not necessary to classify orders. For more information, see the document Cost Object Controlling Information System in the SAP Library. Commitments managementFor each order category, you specify whether you want to use commitments management. The settlement profileIn the settlement profile settlement profile, you specify the objects to which orders of that category may be settled. You can also assign a settlement profile to an order type at a later time. Field attributesYou can define field attributes to specify that the fields in an order are display or input fields, or to hide them. For further information, see the Implementation Guide for Overhead Cost Orders. Residence time of orders in the systemHere you define the length of time that finished orders remain in the system before they are archived. Number assignmentYou must assign each order type to a number range. Functional areaWhen you create a product cost collector, the default value for the functional area is transferred into the master data of the product cost collector. This default value corresponds to the value of the functional area that was specified in the order type of the product cost collector. The functional area can no longer be changed in the master data of the product cost collector.ActivitiesCheck whether the order types provided in the standard system meet your requirements.

Define Cost-Accounting-Relevant Default Values for Order TypeHere you define default values for manufacturing orders, for production orders without quantity structure (CO production orders), and for product cost collectors for each plant and order type.You can make new entries here for production orders without quantity structure and product cost collectors.For production orders with quantity structure and for process orders you make new entries in the processing step Maintain Order-Type-Dependent Parameters in the implementation guide of Product Cost Planning (PP) or Product Cost Planning Process Industry (PP-PI). You can either make the settings relevant for Cost Object Controlling for manufacturing orders there or in this processing step.You specify the following in the default values for each order type and plant: Whether you want to collect the costs on a manufacturing order or on a product cost collector.If you want to collect the costs on a product cost collector, use the functionality of Product Cost by Period. If you collect the costs on a product cost collector, then the manufacturing order is not a cost object. To make the necessary settings for the product cost collector, go to Product Cost by Period in Customizing. Whether you want to use the functionality of Product Cost by Period or Product Cost by Order.You specify your choice here in the default rule. The default rule determines whether settlement is made cumulatively after the last delivery, or in each period. Settlement of orders to stockFor orders whose costs are settled to stock, settlement can take place either at the end of the period (settlement by period) or after final delivery (full settlement).Full settlement is used with lot-based Cost Object Controlling. Variance calculation is performed after final delivery (status GLFT) or technical completion (status TABG) of a manufacturing order. Before final delivery, the order balance is shown as work in process. The default rule for manufacturing orders that are settled cumulatively is PP1 (Production Material Full Settlement). For all manufacturing orders whose order type specifies default rule PP1, settlement type FUL (full) is specified in the settlement rule.As long as a production order without quantity structure does not have the status TABG, the balance of the order is shown as work in process.Periodic settlement is used with period-based Cost Object Controlling. Here the work in process and variances are reported on the basis of the quantities confirmed and delivered in the period. The default rule for manufacturing orders that are settled by period is "PP2 / Production Order (Periodic Settlement)".You can use the product cost collector as a cost object when analyzing costs with order-related production or process manufacturing, as product cost collectors always use periodic settlement. The default rule for product cost collectors is STR (With Strategy for Tracing Factor Determination). For all manufacturing orders assigned to a product cost collector, you must specify the default rule PP2 (Periodic Settlement) in the order type. Use the default rule STR (With Strategy for Tracing Factor Determination) for the product cost collector itself. The settlement type PER (periodic) is specified in the settlement rule for all product cost collectors.If you specify the default rule PP2 for production orders without quantity structure, then you can not calculate work in process for these orders. Settlement with a cost object hierarchyOrders (manufacturing orders and process orders) that are assigned to a cost object hierarchy must be settled in each period.For more information on handling orders within a cost object hierarchy, see Define Cost Object Categories for Cost Object Hierarchies. Settlement in sales-order-related productionValuated sales order stock:Orders that are assigned to a sales document item or WBS element can use full settlement or periodic settlement if you are using a valuated sales order stock.Non-valuated sales order stock:For orders that are assigned to a sales order item or WBS element, the settlement type must be GES (full settlement) if you are using a non-valuated sales order stock. The costs for these orders are included in results analysis of the sales order item or WBS element.For more information on orders with non-valuated sales order stock, see Product Cost by Sales Order in the SAP Library. The results analysis keyThe order is only included in the calculation of work in process when a results analysis key has been entered in it. Full settlement valuates the work in process with the actual costs. Periodic settlement valuates the work in process with the target costs. Costing variant ( preliminary costing)The costing variant (preliminary costing) determines which costing type and which valuation variant are used for preliminary costing.The valuation variant selected through the costing variant is displayed for informational purposes.For manufacturing orders, the costing sheet for overhead calculation in period-end closing and preliminary costing is proposed through the valuation variant that is assigned to the costing variant for preliminary cost estimates.The costing variants Plan (for preliminary costing) and Actual (for the calculation of overhead in period-end closing) for the product cost collectors are taken over from the default values of the order type.The costing sheet in the master data of the product cost collector is determined through the default value for the costing variant Plan belonging to the order type:A valuation variant has been specified in this cost variant.The default value for the costing sheet is calculated from this valuation variant and transferred into the master data of the product cost collector. The costing sheet transferred into the product cost collector is used for the calculation of overhead in preliminary costing and for the calculation of actual overhead.In case no default values exist for the costing variant Plan, the default values of the costing variant Actual are used to calculate the costing sheet. The costing sheet is transferred into the master data of the product cost collector and can be changed there.For production orders without quantity structure, you enter a costing variant for the preliminary cost estimate in a planning profile (instead of seperately for each order type/plant) that you directly link to the order type. Costing variant (simultaneous costing)The costing variant (simultaneous costing) determines which costing type and which valuation variant are used for valuation.The valuation variant selected through the costing variant is displayed for informational purposes. For manufacturing orders and product cost collectors, the valuation variant of the simultaneous cost estimate determines what activity price is used to valuate the activity types and business processes posted to the order.For product cost collectors, the costing sheet for overhead calculation in period-end closing is determined through the valuation variant of simultaneous costing and entered as a default value in the master data of the product cost collector.For production orders without quantity structure, you cannot enter a costing variant for simultaneous costing. Activity types and business processes are valuated on the basis of the plan price of the period. When preliminary costing of the manufacturing order takes placeThe following applies to the planned costs of the manufacturing order: You can change the planned costs when you create the manufacturing order You can change the planned costs when releasing the order You can have the system calculate the planned costs at any timeYou can do this within a manufacturing order or perform preliminary costing for multiple manufacturing orders using the report PPSFCACT.For performance reasons, it might be best to trigger preliminary costing manually (usually with the report).See also: Planned Cost CalculationYou can also set the following indicators: Req NetPriceRequirementsIf you want to define your own costing variants, valuation variants and results analysis keys, you must process the following:Check Costing Variants for Production Orders or Check Costing Variants for CO Production Orders or Check Costing Variants for Product Cost CollectorsCheck Valuation Variants for Production Orders or Check Valuation Variants for CO Production Orders or Check Valuation Variants for Product Cost Collectors Define Results Analysis Keys for WIP CalculationStandard SettingsThe standard system contains the following default values for Product Cost by Order in plant 0001:OrdTDRulPreCSimC

PP01PP1PPP1PPP2

PP02PP1PPP1PPP2

PP04PP1PPP1PPP2

If you want to use periodic settlement with manufacturing orders, you must change the default rule to PP2 (Periodic Settlement).The SAP standard system contains the following default values for product cost collectors in plant 0001: Order type: RM01 (Product Cost Collectors) Default rule: STR (With Strategy for Tracing Factor Determination) Costing variant Preliminary Costing: PREM (Preliminary Costing, Product Cost Collectors) Costing variant simultaneous costing: PPP3 (Product Cost Collectors) Results analysis key: 000003 (WIP Calculation at Target Costs)RecommendationIf you want to use periodic settlement in make-to-stock production or sales-order-related production with a valuated sales order stock on the one hand, and full settlement in sales-order-related production with a non-valuated sales order stock on the other, you must define two order types with different default rules.ActionsEnter the default values you require.Further NotesIf you want to use manufacturing orders or product cost collectors, you must also check whether the Order management indicator is selected for each fiscal year in the controlling area.Define Controlling AreaThe costing variant for preliminary costing of production orders without a quantity structure is specified in the planning profile. There is no costing variant for simultaneous costing.Define Planning Profiles for Production Orders (C0)If you use alternative sequences in the routing, then the selection of the sequences can be included in the production order and thus also in the preliminary cost estimate. To do this you must carry out the following steps in Production Planning in the order-type-dependent parameters: Set the indicator Alternative sequences Choose sequence exchange "1" (Always automatic selection by lot size of alternative sequence)Define Order-Type-Dependent Parameters