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This document by mistake published as Blog. Content is same as previous Blog.

Sometimes we find that a Production/Process order is not getting costed. Or a material is not getting costed. There are certain settings where we can check for the problem. Basically this document is to understand where we can check with respect to PP to overcome the problem.

Check1:

In material master costing 1 view “Do not cost” should not be checked.

As well the price should be maintained in Accounting1 view.

Check2:

In OS20 the usage should be cost relevant.

Check3:

Check in OS21 the setting is relevant for costing or not.

Check4:

In customizing (OS22) the usage should be cost relevant.

Though it is a standard setting. It’s better to check for any customized usage.

Check5:

In work center capacity tab page the capacity should be formula related.

As well is costing tab page formula should be maintained.

In KP26 the activity price should be maintained to calculate as per the formula.

Check6:

In OP00 or OP67 check the control key is cost relevant.

Check7:

Check on OP35 performance efficiency rate whether it is 100. Then it will capture the full cost.

Check8:

Check in the BOM item in status/Lng text for cost relevancy. Though it is coming from customizing but can be changed in BOM itself.

Check9:

In general data of Routing/Recipe relevant for costing indicator should be checked.

I think this many check will help us to provide the solution to our costing colleague.

Please add if you have any more point

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16 Comments

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  1. Rajneesh Saxena

    Dear Mr. Das

    Your 1st check I could not understand? Could you please clarify the doubt? How the “DO NOT COST” button is relevant to order cost? In screen material is having price control ‘V’ but price is maintained in “standard price”, why and how it is relevant to order cost?

    Please clarify the doubts, I will be obliged.

    Regards

    Rajneesh Saxena

    (0) 
  2. Saniket Kharade

    Hi Krish,

    Its really helpful to understand the Product Costing.

    @ Mr. Rajneesh,

    Sir if you are going to check “do not cost” in Costing 1 view, you are not able to create the cost estimate for the material.

    Please correct if i am wrong.

    Regards,

    Saniket

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    1. Rajneesh Saxena

      Dear Saniket

      Glad to see your clear understanding, keep it up.

      You are 100% correct but friend I asked “How the “DO NOT COST” button is relevant to order cost?“.

      Purpose of asking is to update myself. If I have missed some thing I should learn now, that is my principle.

      Regards

      Rajneesh Saxena

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      1. Krishnendu Das Post author

        Hi Rajneesh,

        Sorry for the delay response. Once the indicator is set the cost estimate can not be created.Hence if the material is a header material costing can not be done. But is the material is a component material, then the cost can flow.

        As well the Price control I have changed manually to V. This is my mistake. This should be S.

        Hope my understanding is correct.

        Thanks for the comment and correction.

        Regards,

        Krish.

        (0) 
        1. Rajneesh Saxena

          Dear Mr Das

          That means this indicator is indirectly related and relevant to order particularly if the material is a header material in the order. right?

          Regards

          Rajneesh

          (0) 
          1. Devendra F

            Hi,

            As per my understanding,for the FG AND SFG components DO NOT COST indicator not set,as there is cost estimate update through ck40n for SFG and FG as standard price. since the orders were created for sfg and fg. for Bought out items,price default updated through GRN.

            One more point i would like to share,there is may oy may not be variance between the plan and actial price available in cost analysis tab,Those possible due to changes in bought out items price lead to change in cost estimate of the sfg and fg components.

            Regards,

            Devendra

            (0) 
        1. Devendra F

          Hi,

          in case of split valuation of the material,product costing become more critical,as the same component is used for the inhouse production,procurement and subcontracting.Issue rises with which value should be aupdated?Also in many cases material is created with raw materials and so much data is updated in system for the material.In such cases it become difficult to extend the material for split valuation, as it related with master data changed in material master,bill of materials.

          In such cases,it is recommended to extend the material for both procurement type.

          It is sole decision of Operational Authority for final decision of which materials procurement type should be consider in order have accurate costing.

          Regards,

          Devendra

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          1. Devendra F

            hi,

            in production Order costing ,case should be taken that without cost release for the header order materials,Production order cinfirmation or Backflushung should not allowed,

            Benefit of such doing is that value is update in plan and actual cost analysis table.

            It greatly help in reducing the variance and variance analysis,

            With Regards,

            Devendra

            (0) 
            1. Devendra F

              Hi,

              PP Guys should take also in case of cost sheet used in Product costing and order costing,

              pl. verify the cost sheet is same in both cases, In product costing ,many times cost sheet contains sale and admin overheads,which is not required in Order costing.

              this factor certainly effects your costing for the orders,in terms of overhead calculation,variance analysis and ordre settlement,

              Regards,

              Devendra

              (0) 

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