SAP Product Cost Material Ledger Complete Project Document for sap product cost and material ledger is available for immediate download. With the help of these documents you can learn and implement sap product cost and material ledger in your organization.…
SAP Report Painter Writer Step By Step Guide document explains all about report painter, like how to create reports with the help of report painter. SAP Report Painter Writer Step By Step Guide document contains how to use report painter…
SAP Material Ledger Configuration Document explain SAP Actual Costing / Material ledger (CO-ML) and in step by step manner with the help of system screenshots. SAP Material Ledger Configuration Document is very useful for all SAP FI CO consultant and or who…
Material Ledger (CO-ML) End User Documents explain in step by step manner with screenshots, how to do transaction in SAP Material Ledger (Co-ML). These documents can be used for power user training or end user training in the final preparation…
Sap Product Costing (CO-PC) End User Documents explain in step by step manner with screenshots, how to do transaction. These documents can be used for power user training or end user training in the final preparation phase during implementation. These…
SAP Product Costing (CO-PC) Configuration Documents explain SAP Product Costing (CO-PC) and in step by step manner with the help of system screenshots. SAP Product Costing (CO-PC) Configuration Documents is very useful for all SAP FI CO consultant and or who are…
SAP Product Cost Material Ledger Concept Presentation explains about what all concepts are involved in SAP Product Cost (CO-PC) and Material ledger (CO-ML). This Presentation helps you to understand Product Cost Acquire an overall perspective of Product Cost Planning within R/3. Observe a product…
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.
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.
Cost Component Split
Costing Estimate with/without quantity structure
Costing Run/Price Update
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.