Product Costing - End User Acts

T.CODE TASK TO BE PERFORMED
CK11N Create Material cost estimate
CK13N Display Material Cost Estimate
CK24 Mark Future Price
CK24 Release Price Update
CK40N Edit Costing Run
CK44 Delete Costing run
CKAPP01 Display materials to be costed
CKAPP03 Display sales order to be costed
CKR1 Reorganization of cost estimate
CO03 Display PP Production order
CO88 Settlement prodn order collective
KK87 Settlement of Prod. Cost Coll - Individual
KKAO Calculate WIP for PCC Coll
KKAO Calculate WIP prodn order collective
KKAQ Display WIP for CO Production Order Coll.
KKAS Calculate WIP for PCC - Individual
KKAT Display WIP for Product Cost - Collective
KKAX Calculate WIP Individually
KKAY Display WIP for Prod. Order - Individual
KKRV Data Collection for Product DrillDown
KKS1 Variance Calculation Production Order - Collective
KKS2 Variance calculation production order -individual
KKS5 Variance Calculation Product Cost Collectors - Collection
KKS6 Variance calculation product cost collector
KO88 Actual Settlement Prod. Order Indiv.
KRMI Actual costs on order line items

S_ALR_87013046 Material Cost Estimate vs Preliminary Order C
S_ALR_87013099 Order Plan_Actual Comparison
S_ALR_87013127 List of Orders
S_ALR_87099931 Price versus Cost estimate

Sequence for production orders during period-end closing:

1. Process cost allocation
2. Revaluation at actual prices
3. Overhead calculation
4. WIP determination
5. Variance determination
6. Order settlement.

When Should You Not Use Product Cost by Order?

For repetitive manufacturing (stable and continuous production), since the production of one material is the main priority over a long period of time
When you want to calculate WIP at target costs
When you want to calculate WIP (at target costs) and variances at the same time.

When Should You Use Product Cost by Order?

For individual or lot-related production. It is typically used for order-related production or for batch-related process manufacturing. Production is based on orders for which production and the cost analysis of a certain lot size are the priority.
For test production/start-up production (for planned repetitive manufacturing) for the exact determination of planning data (for example, variance analysis)
When you want to calculate WIP at actual costs
When you want to allocate your lot-size-independent costs
When you want to schedule your orders accurately.

Concepts should know in PC

Settlement type

• In the plant settings for the order type, you need to select settlement type PP1.
• This means that all production orders for this order type and this plant have the settlement rule with the FUL settlement type.
• In the order, the settlement type determines in which of the following scenarios the production order is processed:
• Product Cost by Order (FUL) or in Product Cost by Period (PER).

Status control

• The status of the production order is very important in this scenario.
• The delivered (DEL) or technically completed (TECO) status control the WIP determination (creation or breakdown), the variance determination and the order settlement

Work in process (WIP)

• This is calculated at actual costs.
• WIP is only created for orders that have been released (REL).
• If the order has been technically completed (TECO) or delivered (DEL), then WIP is not created, but is broken down if it exists. However, WIP is only posted to FI when the order is settled.WIP cannot be calculated at target costs.
• It is only possible to calculate WIP in Product Cost by Period.
  

Variance determination

• Variances can only be determined once the order has been delivered (DEL) or technically completed (TECO), as the quantity actually delivered is fixed.
• This quantity determines the target costs of the production order and thus the variances per piece.
• This means that WIP and variances cannot be calculated at the same time.
• WIP is only calculated for released orders (REL) and variances for orders that have been technically completed (TECO) or delivered (DEL)
• If you are using Product Cost by Sales Order with the unvaluated sales order stock, you cannot reliably determine any variances for the assigned production orders and process orders.
• Therefore, in this case, the system does not support the variance determination, and you need to use the valuated sales order stock instead.

Order settlement

• The status of a production order in this scenario determines whether that production order is settled and thus credited or not.
• The actual costs of the production order are only settled if the order has been technically completed (TECO) or delivered (DEL).
• For orders that have been released (REL), settlement only posts the WIP to FI (if any WIP was determined).

Lot-size-independent costs

• These are determined and calculated once (only) in this scenario.
• In Product Costing by Period it is not possible to allocate these costs.

When Do You Use Product Cost by Order?

• Product Cost by Order enables you to analyze costs at production lot level. You can use it for make-to-stock production and sales order-related production.
• In sales order-related production, you can use Product Cost by Order for sales order-related mass production and as a supplement to Product Cost by Sales Order.
• In Product Cost by Sales Order, you use manufacturing orders (production orders or process orders) as cost objects.
• The costs that are updated on the manufacturing order are analyzed by lot and then settled.
• This means that variances of the cost analysis are only determined once the whole quantity that was planned for production has been delivered to the warehouse.

You can do the following with Product Cost by Sales Order:

• Determine and analyze plan, target and actual costs for production orders and process orders
• Update or determine the inventory of unfinished products (work in process) and finished products
• Determine and analyze variances
• Transfer work in process and production variances to Financial Accounting (FI)
• Transfer production variances to Profitability Analysis (CO-PA)
• Transfer work in process and production variances to Profit Center Accounting (EC-PCA)
• Transfer production variances to actual costing / Material Ledger (CO-PC-ACT)

SECTION II - Cost Object Controlling

Product Cost by Order - Manufacturing orders
1 Check Costing Variants for Manufacturing Orders (PP)
2 Check Order Types
3 Define Goods Received Valuation for Order Delivery