Problem Description
While creating Internal order if following error message appear,
Class for order classification has not been generated
Message no. KU363
Diagnosis
To be able to classify orders for order selection or order summarization in the information system for Cost Object Controlling, you must first:
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SAP offers two methods of inventory valuation and product costing: standard cost and (weighted) moving average. The method to be used is identified on the material master level, thus different materials can use different methods within a plant. Although SAP does not restrict this choice, moving average is typically used only on purchased materials.
The decision to use moving average for certain materials should reflect the approach used to analyze contribution margins, and variances in manufacturing and purchasing. Use of moving average on purchased materials may be appropriate where the item is an easily obtained commodity, with small fluctuations in cost. In such situations, the impact on margins is minimized, reducing the need for formal variance analysis.
From a practical point of view, some of the key differences and considerations in how this would be reflected in the system are identified below. Read more…
SAP Product Cost Material ledger self learning documents
Complete set of documents for sap product cost and material ledger is available for immediate download. With the help of these document s you can learn and implement sap product cost and material ledger in your organization.
This document set covers following documents
1.SAP Product Cost Material Ledger Concept Presentation
2.SAP Product Costing (CO-PC) Configuration Documents
3.SAP Material Ledger Configuration Document
4.SAP Product Costing (CO-PC) End User Documents
5.Material Ledger (CO-ML) End User Documents
Report painter
GRR1 – Create Report
GRR2 – Change Report
GRR3 – Display Report
GR34 – Delete Report
Model
GRR4 – Create Model
GRR5 – Change Model
GRR6 – Display Model
GRR7 – Export Models
GRR8 – Import Models
GRR9 – Copy from Client Models
GCTR – Transport Request Models Read more…
This document explains all about report painter, like how to create reports with the help of report painter.
This document contains how to use report painter to get your desired report form sap system without getting help form ABAP and technical team. In this document all the processes has been given in step by step manner with the help of screenshots too.
Following concepts has been explains following concepts of Report painter. Read more…
Product Costing Period End Process
The period end process needs to be carried out only for real internal Order. After completion of activity /process, we needs to settle the cost to one or more receivers (cost center, Profitability segment or Assets etc)
Define settlement rules: Settlement rules can be defined at the time of creation of IO or before settlement of IO. For settlement of order we need to define distribution rules in each of senders. This Settlement rules will determines where the cost to be settled. Settlement rules will be defined by concerned Divisional Head/Dept Head. Read more…
Internal order is going to be used for budgeting, collection of cost. Internal order will be used for control of Capital Expenditure, Advertisement cost, R & D expenses, Exhibition Cost, Manufacturing meet, Project etc.
During planning stage planned cost is estimated and once the planned cost is approved, funds equivalent to approved planned cost is prescribed as budget.
In case of unforeseen events, additional budget requirement due to for example Price rise in external activities will be updated as Supplementary Budget and similarly in case of reduction, budget can be reduced by updating Return. Read more…
Cost Estimation
The price of the finished goods (FG) and semi-finished goods (SFG) manufactured is determined through Standard Cost estimate. Standard cost is estimated based on the cost of input materials, planned cost of activities and overheads. It is the price at which the finished and semi-finished goods are valuated in finance. The standard cost once estimated is valid for a specific period interval.
A standard cost estimate is created at the end of the period and is valid for the entire next period. When the standard cost estimate for the respective material (FG & SFG) is released, the system updates the result of this estimate as standard price in ‘Accounting 1’ and ‘Costing 2’ view detail screen of the material master record. This price is then valid for valuation of material in financial accounting till next cost estimate is run. The materials are revaluated when the next standard cost estimate is released.
In this specific period interval, all the FG and SFG produced through production order or product cost collector are valued at the standard cost updated in the material master. This is termed as ‘Cost of goods manufactured’ (COGM).
Following are the important tools used in cost estimate.
Costing Variant
Cost Component Split
Costing Estimate with/without quantity structure
Costing Run/Price Update
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Product Costing Controlling
Product Cost Planning is a tool for setting standard prices of FG and SFG. The standard price is compared against the actual cost of production and any difference between the standard price and actual cost is recorded as variance by the system. It will also form the basis for valuation of FG and SFG inventories at the period and year end. It uses information from the Overhead Cost Planning to calculate costs such as labour, machine, or factory overhead.
Product Cost Controlling includes:
Overhead Cost Planning: It consists:
• Planning of activity output quantity and activity prices for production cost center.
• Overhead rate maintenance in overhead cost sheet for overhead prices.
Product Costing Master Data in SAP
Following are the important related master data to Product Cost Controlling Integration.
a. Material Master view related to Product Costing
b. Bill of Material
c. Work Center
d. Routing
e. Production Order
f. Product cost collector
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