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Author's profile photo Ajay Maheshwari

POD – Series 2 – Validate standard cost existence at various business processes

A very warm Hello to all!!

This document is a part of the POD (Process Oriented Discussions) Series that I started. The 1st document in this series can be seen here.

This is a question that is asked very frequently in the forum and fortunately I had the opportunity to answer it most of the times. However, because the information is scattered over various threads, I thought of bringing it together in one document, at one place

When inventory is valuated at standard cost (Price control S), it is imperative that standard costs are released before any goods movement take place. In the absence of it, the inventory gets valuated at zero price and subsequently causes series of problems in financial accounting as well as management accounting.

It must be noted that one must validate the field MBEW-LPLPR to validate the existence of released standard cost, and not STPRS.

Using the following enhancements / standard options, existence of standard cost estimates can be validated, before any goods movements are posted

Business process Option Remarks
Production Order / Process Order

BADI- WORKORDER_UPDATE

Method- AT_SAVE / AT_RELEASE

This BADI helps to have a custom check at the time of creation of production/process order

Method AT_SAVE is called when the order is saved and AT_RELEASE is called when the order is released.

Having custom check at RELEASE would mean that order can be SAVED even without standard cost being released, however, it cant be released

Production Order / Process Order BADI – WORKORDER_CONFIRM This BADI helps to have a custom check when the order is confirmed. Using this BADI, one can validate the existence of standard cost before any operation can be confirmed
Production Order / Process Order BADI – WORKORDER_GOODSMOVEMENT This BADI helps to have a custom check at the time of Goods movement. Using this BADI, one can validate the standard cost before the GR is posted from the Order. Technically, SAP requires standard cost to be released before the GR is posted in order to be able to calculate variance categories
Product Cost Collector REM Profile

In REM profile, there is option to backflush the activity consumption at standard cost.

Using this option, one can validate the existence of standard cost.

Purchase Order BADI – ME_PROCESS_PO_CUST

This BADI helps to have a custom check when the Purchase order is created.

This is useful to validate standard cost when a material with Price control S is externally procured (Normal procurement or Sub-contracting)

Goods Movement from Purchase Order BADI – MB_MIGO_BADI

This BADI helps to have a custom check when the goods movement from Purchase order is posted (MIGO)

This is usefulif one wants to validate the standard cost at the time of GR against Purchase order or STO

Sales Order Exit – MV45AFZB

This userexit helps to have a custom check when the sales order is created

Ideally, if a validation takes place at Purchase / Production order, this check is usually not required.

PGI against Sales Order BADI – LE_SHP_DELIVERY_PROC

This BADI helps to have a custom check at the time of PGI.

Using this BADI, one can validate standard cost at the time of PGI

Billing against Sales order Exit – RV60AFZZ

This userexit helps to have a custom check at the time of Billing.

However, if Costing Based COPA is implemented, using COPA valuation (Costing Keys) one can validate the existence of standard cost

Using the knowledge gained above, one can decide the best point(s) at which the custom check is required.

Note that the Userexits / BADIs mentioned above can be used not only to validate the existence of standard cost, but for any other custom check that is required during that process

Thankyou for reading the document and do share your feedback!!

Br, Ajay Maheshwari

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      Author's profile photo Rajneesh Saxena
      Rajneesh Saxena

      Ajay Sir

      As always a very valuable contribution by you. Compiling the things is a challenging task. As you said that the above information is scattered at many places so for majority of us its a great help to have them at one place.

      Regards

      Rajneesh Saxena

      Author's profile photo Former Member
      Former Member

      Hi Ajay,

      Nice Documentation....


      It is very helpful.

      Thanks

      Satya

      Author's profile photo Srinivas Salpala
      Srinivas Salpala

      Hi Ajay,

      I am happy that you have started contribution fully.. Once again shared much needed information from your side.

      Thanks a lot!!!

      BR, Srinivas Salpala

      Author's profile photo Ajay Maheshwari SAP Trainer
      Ajay Maheshwari SAP Trainer
      Blog Post Author

      Thanks Srini.. Its my pleasure!!

      Author's profile photo Former Member
      Former Member

      Hi Ajay,

      Thank you very much for compiling all related BADI's and Exits at one place and educating us.

      I am keep on improving my knowledge by reading your threads and articles on SCN and you are my inspiration to become an expert CO Consultant.

      Proud to say that i am one of your Eklavya student.

      Regards

      Madhusekhar Gupta Gadamsetty

      Author's profile photo Rajneesh Saxena
      Rajneesh Saxena

      Madhukar

      I like your comment and appreciate your zeal. Last line was awesome. Keep it up. God bless.

      Regards

      Rajneesh Saxena

      Author's profile photo Ajay Maheshwari SAP Trainer
      Ajay Maheshwari SAP Trainer
      Blog Post Author

      Madhu,

      I am really honored.. I draw my inspiration from the admirations I receive from this forum and the people like you..

      While there are boundaries that may prevent us from being recognized at work place, but this is a forum where there are no such boundaries and I always get my due here...

      Thanks once again!

      Br. Ajay M

      Author's profile photo Former Member
      Former Member

      Hello Ajay,

      Boss is Back...!

      I haven't read the document fully, but I knew it would be a great document.

      I am happy & delighted to see your statement i.e., "While there are boundaries that may prevent us from being recognized at work place, but this is a forum where there are no such boundaries and I always get my due here.."

      Regards

      Raj

      .

      Author's profile photo Hrusikesh Dalai
      Hrusikesh Dalai

      Ajay,

      This is an awesome document and bring it on from your treasure box i am sure you will have many more coming out.

      I will be always thankful to you for your active and passive training to the SAP community

      Thanks

      Hrusikesh

      Author's profile photo Ajay Maheshwari SAP Trainer
      Ajay Maheshwari SAP Trainer
      Blog Post Author

      Hi Hrushi

      The pleasure is mine that I could provide the active and passive training to the community

      More than that, its an honor to have a student like you 🙂

      Br, Ajay M

      Author's profile photo Former Member
      Former Member

      Dear Ajay,

      Excellent document....

      Regards,

      Upendar

      Author's profile photo Former Member
      Former Member

      Hi,

      This is Absolutely superb document,

      Devendra

      Author's profile photo Ajay Maheshwari SAP Trainer
      Ajay Maheshwari SAP Trainer
      Blog Post Author

      You are most welcome Buddy!! and Thanks for encouraging in those few nice words!!

      You can also read other 2 POD Series docs, which are there in FI Forum.. Do share your feedback!

      Br. Ajay M

      PS: Links are enclosed here

      http://scn.sap.com/docs/DOC-51865

      http://scn.sap.com/docs/DOC-52095

      Author's profile photo Former Member
      Former Member

      Hi Ajay,

      Thanks for the comment,

      I Heading the SAP in manufacturing firm with big task to co-ordinate different departments.

      It is the challenge to meet the management requirements in terms of balance sheet,P/L Statement,identification of losses,analysis of variances.

      I have interest in Costing and PP,also watch your contributions in simple words,They are really appreaciable,

      you are the GEMS for the COST Module,without which CO Forum may gone haywire,

      Your series really superior to manufaturing firms to deal with their daily issues,

      I am the one of the FAN of your contributions,

      best wishes for your contributions,

      With Regards,

      Devendra

      Author's profile photo Former Member
      Former Member

      Hi Ajay,

      This is really very useful information. Thanks for sharing knowledge.

      Regards

      Milind

      Author's profile photo Ajay Maheshwari SAP Trainer
      Ajay Maheshwari SAP Trainer
      Blog Post Author

      Thanq Milind 🙂

      Author's profile photo Sudeep A
      Sudeep A

      Useful information. Keep sharing..

      Regards,

      Sudeep.

      Author's profile photo Former Member
      Former Member

      Hi..

      Userful information.

      Using the BADI MB_CHECK_LINE_BADI, one can validate standard cost at the time of goods receipt and goods issue.

      Author's profile photo Ajay Maheshwari SAP Trainer
      Ajay Maheshwari SAP Trainer
      Blog Post Author

      Thanq Big Bro. I learned new thing today

      Ajay M

      Author's profile photo Rohit raj
      Rohit raj

      Dear Ajay,

      It is really Nice Document with detail description.

      Keep up the Good Work and Great Job Sir.

      Regards,

      Rohit.... 🙂

      Author's profile photo Ajay Maheshwari SAP Trainer
      Ajay Maheshwari SAP Trainer
      Blog Post Author

      Thanks much Rohit

      Br, Ajay M

      Author's profile photo Former Member
      Former Member

      Hi Ajay,

      Excellent knowledge sharing document 🙂

      we are just waiting for your upcoming series of documents.

      Thank you very much

      Vandana

      Author's profile photo Ajay Maheshwari SAP Trainer
      Ajay Maheshwari SAP Trainer
      Blog Post Author

      Hi Vandana

      Many thanks for the feedback

      You can refer a lots of documents contributed by me from the below link. Ajay Maheshwari SAP Trainer

      Click on the Content Tab and then on BLOG POSTS or DOCUMENTS and you can see my documents

      Happy reading

      Ajay M

      Author's profile photo Former Member
      Former Member

      Thanks Ajay 🙂

      Author's profile photo Srinatha Polati
      Srinatha Polati

      Hi Ajay, This is very nicely documented and certainly helpful.

      Regards,

      Srinath