Standard Costing –Product Cost Planning
Solution Management ERP FinancialsSAP AG
Legal Disclaimer
This presentation is a preliminary versionand not subject to your license agreement orany other agreement with SAP. Thisdocument contains only intended strategies,developments, and functionalities of theSAP® product and is not intended to bebinding upon SAP to any particular course ofbusiness, product strategy, and/ordevelopment. Please note that this documentis subject to change and may be changed bySAP at any time without notice. SAPassumes no responsibility for errors oromissions in this document.
© SAP AG 2009. All rights reserved. / Page 3
Part A– Easy Cost Planning and Execution Services for Occasional UsersPart B – Multilevel Unit Costing – Can SAP Support Target CostingPart C – CO-PC-PCP Mass Costing for Sales Orders
Agenda
Easy Cost Planning and Execution Services forOccasional Users
Focus On Employees as End Users
Susanne often plans:
Business tripsExternal meetings
Anne,EventManager
Bob,ProjectManager
Tom,a WebKid
Susanne,Secretary
Anne plans events:
Trade fairsCustomer visits
Bob plans projects:
Consulting servicesNew constructions
Tom plans:
Holiday in Disneyland...
For example, Susanne...
...only needs three clicks to:
plan a business event
check the costs for her plan
trigger follow-up processes
Workplace
Easy Cost Planning Right at Your Workplace
from herWorkplace.
Easy Cost Planning
First clickFirst click --
Susanne starts
Choose Your Planning Form
Yes
Yes
no
Yes
and fills in therequired data
chooses apredefinedplanning formfor externalmeetings
Susanne
Web links formore information
She confirms...
WWW.Hotel.com
WWW.dinner.com
Second clickSecond click --
Automatic Costing
Susanne
Yes
Yes
no
Yes
WWW.Hotel-Worldwide.comWWW.restaurants.com
WWW.presents.com
can see detailedcosts for theexternal meetingin Berlin:
HotelTravelDinnerEquipment::
Yes
Yes
no
Yes
Subsequentprocesses ...?
Execution Services
Hospitality
Execution Services
Susanne
Reservation
Reservation
Equipment:BeamerTV-Set
wants to reserveequipmentfor the meeting.
selects the serviceReservation
sees the equipmentshe can reserve
posts the reservation
Third clickThird click --
She
Document Overview
Reservation
Existing reservations
Susanne
can follow up herprocesses
One more click...One more click...
even down to thedocumentscreated.
BeamerTV-Set
Benefits for Susanne...
She can:plan using her terms andconceptsuse www links for furtherinformation
She can:trigger follow-up processesdirectly from the planningavoid entering plan data twicecheck the status of processeseasily
Using Easy Cost PlanningUsing Easy Cost Planning
Using Execution ServicesUsing Execution Services
Everyone Benefits
which costing method to use in whichcasehow to work with R/3 Unit Costing or othermethods costing itemshow to create purchase orders,reservations, and so on
That´s Easy
has planned the external meeting withjust three clicks!
You can plan intentions the same way!
Susanne
You do not need to know:
Anne,Event
Manager
Bob,Project
Manager
Susanne,Secretary
Isn’t Something Missing...?
Remember?Susanne used a planning form!So someone must have preparedit for her...!
WHO could that be?What else does he or she do?
To be continued...
...Easy Cost Planning &Execution Services
II
© SAP AG 2009. All rights reserved. / Page 15
Part A – Easy Cost Planning and Execution Services for Occasional UsersPart B– Multilevel Unit Costing – Can SAP Support Target CostingPart C – CO-PC-PCP Mass Costing for Sales Orders
Agenda
Multilevel Unit Costing – Can SAP Support Target Costing
1. Overview2. Cost Estimates – Essentials3. Multilevel Unit Costing4. Conclusion
Agenda
Commited Cost
developmentconstruction prototype productionproduct idea
100 %
Phases
tools
detail ofquantitystructure
developmentconstruction
multilevel unitcosting
BOM
prototype
BOMrouting
production
materialcosting
BOMrouting
ABC
target costsset
base planningobject?? phases
product idea
Top-Down & Bottom-Up
Life cycle period 1 period 2 ...
Sales price : 125,- 120,-
Profit margin: 25 % 25%
Target costs: 100,- 96,-
100,-
60,- 20,-
20,- 15,- 15,-
Product CostPlanning through
all phases
1. Overview2. Cost Estimates – Essentials3. Multilevel Unit Costing4. Conclusion
Agenda
Itemization
Pump P-100Pump P-100
Fly WheelFly Wheel
Sheet MetalSheet Metal
Labor Sheet Metal
% Surcharge
Activities
20 Min 30 $
5 $
1 Ea 10 $
0,6 m2 20 $
1 Ea 150 $
1 Ea 215 $
Qty Unit Value
-
Costed BOM
Pump P-100Pump P-100
Fly WheelFly Wheel
Sheet MetalSheet Metal
Labor Sheet Metal
% Surcharge
Proc. Prod. Plan
20 Min 30 $
5 $
1 Ea 10 $
0,6 m2 20 $
1 Ea 150 $
1 Ea 215 $
Qty Unit Value
Labor Cutting
Labor Others
% Surcharge
Proc. Prod. Plan
Slug 100-310Slug 100-310
10 Min 20 $
5 Min 30 $
10 $
1 Ea 10 $
1 Ea 80 $
-
Cost Component Split
Material Labor Surcharge Process
100 80 15 20
30
5
10
20
80 50 10 10
20
30
10
10
80
Fly Wheel
Labor Sheet Metal
% Surcharge
Proc. Prod. Plan
20 Min 30 $
5 $
1 Ea 10 $
0,6 m2 20 $
1 Ea 150 $
1 Ea 215 $
Qty Unit Value
Labor Cutting
Labor Others
% Surcharge
Proc. Prod. Plan
Slug 100-310
10 Min 20 $
5 Min 30 $
10 $
1 Ea 10 $
1 Ea 80 $
-
Pump P-100
Sheet Metal
Methods, Objects, Results
Costing Method Material Base Planning Object
Unit Costing
MultilevelUnit Costing
Material Costingwith Qty Structure
Costing Run
Cost Component Split Itemization
XX
Costed BOM
Item Categories – Editable
Item Category...Item Category... ...enter......enter... ... System derives...... System derives...
V (Variable Item) ValueQty, Price,Description, Cost Element*
T (Text) Description
B (Base planning object) Price, Unit of Measure, Text,Cost Element, ValueBase Planning Object, Qty
M (Material) Price, Unit of Measure, Text,Cost Element, ValueMaterial, Plant, Qty
N (Service) Price, Unit of Measure, Text,Cost Element, Value
Service, Plant,Qty
F (External Activity) Price, Unit of Measure, Text,, Value
Inforecord, Purchase Org,Plant, Cost Element, Qty
L (Subcontracting) Price, Unit of Measure, Text,Cost Element, Value
Inforecord,Purchase Org, Qty
E (Internal Activity) Price, Unit of Measure, Text,Cost Element, Value
Cost Center, Act Type,Qty
P (Proces manual) Price, Unit of Measure, Text,Cost Element, Value
Business Process,Qty
Item Categories - Special
G (Surcharge) Text, Cost Element, ValueCosting Sheet
I (purchased part costing) Price, Unit of Measure, Text,Cost Element, ValueInforecord**
X (Process Cost) Process, Qty, Unit of Measure, TextCost Element, ValueTemplate*
Item Category...Item Category... …is defined by...…is defined by... ... and derives ...... and derives ...
S (Summary Line) Summary LineFormula, Text
O (Formula) Formula ResultFormula, Text, Cost Element
Item Category...Item Category... … is defined by...… is defined by... …and derives ...…and derives ...
Costing Items – How to Edit
ItemItem-Cat Ressource Qty Value
Pump 1 Ea
E Labor Sheet Metal 20 Min 30 $
P Process Cost 1 Ea 5 $
M Sheet Metal 100-700 0,6 m2 5 $
X M Fly Wheel 100-300 1 Ea 5 $
Item Cat.: MaterialItem Cat.: Material
MaterialPlant
100-300
1000
Qty Price fix / varDescription
Cost Elemnt Origin Group
Screen Shot: Display Material Cost Estimate
1. Overview2. Cost Estimates – Essentials3. Multilevel Unit Costing4. Conclusion
Agenda
Basic Scenarios
Blech
Rohling
Welle
Neue Pumpe
Scenario 1:New
Product
Top-DownEditing
Blech
Rohling A
Welle
Pumpe A
Blech
Rohling B
Welle
Pumpe B
Scenario 2:Similar Product
Copy Subordinate CostingStructure and make changes
Scenario 3:Product Changes
Blech
Rohling A
Welle
Pumpe A
Blech
Rohling B
Welle
Pumpe A
Copy fullCosting Structure and make
Changes
Aims of Multilevel Unit Costing
Simulation CostingWhat-if analysisChanges to prices, quantities, structures
Costing New ProductsSupplementing missing quantity structure dataCreating new quantity structure data
Costing CockpitVery easy to useGraphical interfaceMultilevel changes
Screen Shot: Multilevel Unit Costing
Multilevel Unit Costing - Layout
Ressource Qty Value
Costing Structure
Worklist/ Detailed List
Unit Costing / Header
Drag&
Drop
Costing Structure on/off Worklist on/off List on/off ? Quick-Info
ContextMenu
(rechte Maustaste)
Rapid Columnadjustment
ContextMenu(rechte Maustaste)CreateChangeDisplay--------------------Substructure...
Costing Structure
Costing Structure I
Material Cost Estimate w/o Qty StructureCreate, Change, DisplayCopy
Base Planning ObjectCreate, Change, Display
Material Cost Estimate with QtyStructure
DisplayCopy
Change Hierarchy Display
Costing Structure II
Copy
Costing Structurebefore
after
Insert
Orginalor
Copy?
before
after
Costing variant;Costing variant;Version
Costing Structure III
Changes Status
Error StatusError = redWarning = yellowInformation = green
Status & Revaluation
ChangedChanged Error
ContextMenu
(rechte Maustaste)
--------------------Teilstruktur
...
Cut & Paste
X
Copy into buffer
Insert from buffer
Filtering
X
Filter setzen
XContextMenu
(rechte Maustaste)
--------------------Filteruse
...
Worklists
X
Worklist
Material Cost Estimate
Base planning ObjectInternal Activity
Processes
My Worklists
Personal/ Common
Buckets
Change buckket to worklist
Brnach to master data
Search help
Examples of Layouts
Header
Report
Basic layout Edit Layout
Reporting / Edit Reporting / Details
Basic Layout
BOM + List Screen
1. Overview2. Cost Estimates – Essentials3. Multilevel Unit Costing4. Conclusion
Agenda
Can SAP support Target Costing?
High flexiblitySimulation and integrationDifferent tools during the life cycle
No costing surprises:based on same costing rulessame costing structuresUses existing master data (whereavailable)
Full comparison of cost estimates during thelife cycle
Valuation of targeted sales qty‘s in CO-PApossible
yes
What to do?
No or just additional customizing inCO-PC-PCP
New costing variants and valuationvariants
Learn to use the tool2 days to learn basic navigationDesigned for the power user (costestimator)
Multilevel Unit Costing availablewithin the R/3 4.6B standard delivery.
Notmuch
(hing)
© SAP AG 2009. All rights reserved. / Page 47
Part A – Easy Cost Planning and Execution Services for Occasional UsersPart B – Multilevel Unit Costing – Can SAP Support Target CostingPart C– CO-PC-PCP Mass Costing for Sales Orders
Agenda
CO-PC-PCP Mass Costing for Sales Orders
Mass Costing for Sales Orders
Business ValueSales documents can be entered faster since it is no longer necessary to wait for automaticcosting. It is now possible to run costing at a later time (such as during the night).Documents/items can be selected using various criteria. Initial costing or repeated costing ispossible (with a valuated sales order or project stock, marking is also possible).
RealizationSeparate transaction for mass costing of sales documents (transaction CK55)Selection of the items to be costed based on:
Document number, item number, date, material, status etc.Implementation of a BAdI for customized selection
A log records the success or failure of costing. Cost estimates can be displayed from the log.
Mass Costing for Sales Orders
Mass Costing for Sales Orders
Mass Costing for Sales Orders
© SAP AG 2009. All rights reserved. / Page 53
Thank you!
Copyright 2010 SAP AGAll Rights Reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained hereinmay be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries,eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+,POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex,MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.
Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.
Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or othercountries.
Oracle is a registered trademark of Oracle Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.
HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
Java is a registered trademark of Sun Microsystems, Inc.
JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logosare trademarks or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products andservices mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries.Business Objects is an SAP company.
All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only.National product specifications may vary.
These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only,without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Groupproducts and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construedas constituting an additional warrant.