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Author's profile photo Former Member

Automation of Standard Cost Estimate (CK40N)

Introduction:

Calculation of standard cost is the annual event generally done at the beginning of financial year during Planning & Budgeting activities, which result into calculation and release of standard cost estimate.

CK40N is a powerful tool provided by SAP to calculate cost estimate with high level of accuracy for in-house produced material and material procured from outside. CK40N is executed in multiple steps from selection of material to release of cost estimate, which generally took of time to get executed. The purpose of this article is to specify how we can use the standard functionality of SAP to automate CK40N, for calculating cost estimates.   

Automation of CK40N:

Product cost estimate through CK40N includes the below steps:

Ø  Selection

Ø  Structure Explosion for in-house produced materials

Ø  Costing for all the materials at structure explosion

Ø  Analysis for cost estimates

Ø  Marking for cost estimate as future standard cost

Ø  Release of future cost estimate as current standard cost estimates

Define the costing run name:

Transaction CK40N, new cost estimate

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Specify the validity dates for cost estimates 

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Save the costing Run. Now we can see the different steps under Create Cost estimate tab. We need to change Parameter for each flow and by specifying parameters for all the steps then we will execute CK40N on background by considering all the steps in one go.  

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Selection of material

After executing the selection step, system start selecting the materials to be used for the costing run, according to the selection criteria. Generally we specify the plants as selection criteria, if we don`t specify any plant or material then system consider all the plants under the co. Code level for which we are creating the costing run, so it`s necessary to specify the selection criteria based on requirement.  

Click on change parameter, 

·         Specify: Plant

·         Activate Background Processing

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Click on Save

A message will appear as variant created, keep the note of the name. The same variant will be created in all other steps. 

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Click on Back button or <F3> to go to initial screen of CK40N run

Structure Explosion for in-house produced materials

Structure explosion is the process of including the lower level materials i.e. the materials used under the bill of materials for in-house produced materials selected at previous steps. The main reason for this step is to do the cost estimate for raw materials in BOM so that cost estimate for in-house materials can be ascertained correctly.

Click on change parameter

·         Activate Background Processing  

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Click on Save

A message will appear as variant saved.

Costing for all the materials at structure explosion

Execution of costing step, allow the system to do the cost estimates for all the materials selected in structure explosion step. It includes the cost estimates for raw material, purchase from external vendor and calculate the cost of in-house produced materials from plan activity rates and raw material cost.  

Click on change parameter

·         Activate Background Processing

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Click on Save

A message will appear as variant saved.

Analysis for cost estimates

This step provide the analysis of cost estimates based with the details of different components like raw material cost, overhead cost, manufacturing cost etc for main and auxiliary cost estimate. The cost estimates details can be viewed at cost element level.

Click on change parameter

·         Activate Background Processing

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Click on Save

A message will appear as variant saved with the same variant name.

Marking for cost estimate as future standard cost

Execution of marking step indicates that cost estimates for material is recorded in material master data as Future Standard Cost. This can be viewed in field Future cost estimates under the tab Cost estimate 2 in material master data. Marking of cost estimates can be done in advance before the cost estimate valid dates come. 

Allow the marking to be executed

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Click on change parameter

·         Activate Background Processing

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Click on Save

A message will appear as variant saved.

Release of future cost estimate as current standard cost estimates

After executing the release step, the mark future costs get converted to current standard cost estimates. This can be viewed in field Current standard cost estimates under the tab Cost estimate 2 in material master data

Click on change parameter

·         Activate Background Processing

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Click on Save

A message will appear as variant saved.

Click back button, now we can see the below screen 

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Automation with the help of Background job runs:

We can execute all the steps of CK40N through background job run in a proper sequence so that all the steps will come at the right sequence and then cost estimate can be released automatically.

SAP use the different Program name for executing the different steps, as specified in below tables.

Variant

Description of Step

Program Name

MANISHKR735372

Selection

SAPRCK60

MANISHKR735372

Structure Explosion

SAPRCK62

MANISHKR735372

Costing

SAPRCK10

MANISHKR735372

Analysis

RKKBCAL2

MANISHKR735372

Marking

SAPRCK23

MANISHKR735372

Release

SAPRCK23

Now execute the steps through Background processing:

Transaction SM36

Click on Job Wizard

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Specify the Job Name:

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Select ABAP program step

Click Continue

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Now we will define the first step (Selection step in CK40N)

Specify the program name for selection step as SAPRCK60 & name of variant as noted at the time of saving the selection step. The name of variant will be same for all the steps but the name of program will change.

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Click Add additional steps and then we will continue to define the steps for other steps of CK40N

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Details for Structure explosion step: 

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Details for Costing step: 

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Details for Analysis step: 

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Details for Marking step: 

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Details for Release step: 

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Click on time to start the job, it can be immediately or we can specify date & time.

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Click on Continue & then save the jobs.

Once the jobs gets finished, we can check CK40N for the results

If there will no errors in costing then all the steps will be get executed.

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Important points:

Ø  Must open all the steps and save on background processing, so that variant can generated and saved for all steps.

Ø  Allow the authorization for marking.

Ø  Remove the test runs from step Marking & Release

This process will help to save lot of time and this can be used during non-productive hours.

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      14 Comments
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      Author's profile photo Srinivas Salpala
      Srinivas Salpala

      Hi,

      Very good document on CK40N process.

      BR, Srinivas Salpala

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thank you  Srinivas.

      Regards

      Manish

      Author's profile photo Former Member
      Former Member

      Thank you Manish.

      I have a problem about CK40N Process.

      on Step 2 Structure Explosion for in-house produced materials .

      Nothing change after I executed

      Please help to advise.

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      There is no error log or any process only the above screen 🙂

      Thank you

      Surez

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hello Surez,

      Could you please click on change parameter for structure Expl, and share the details, what all the fields you have selected.

      Select background processing and execute the step again. Check the job log for errors if any.

      If you face the issue again, then please share the details.

      Regards

      Manish

      Author's profile photo Former Member
      Former Member

      Excellent notes. Thank You.

      Author's profile photo Former Member
      Former Member

      Very nice document!

      Thanks a lot.

      Author's profile photo Arvind Pereira
      Arvind Pereira

      thank you Manish, the document is step wise, detailed and clear.

       

      regards

      Arvind Leo Pereira

      Author's profile photo Noriko Matsunaga
      Noriko Matsunaga

      Hello Manish,

      Thank you for your valuable input. One question, can I automate 'Marking allowance' by background job?

      Thanks,

      Noriko

      Author's profile photo ahmed rabia
      ahmed rabia

      Very helpful Document

      Thanks,

       

       

      Author's profile photo Saikat sen
      Saikat sen

      Hello Manish Sir,

      The blog which you have wrote is a very good one. I am new to product costing so I have some questions , would you be kind enough to answer please.

      1. Structure Explosion - This is not available in SAP S/4 HANA, then how RM's cost will determined? 
      2. How system will fetch the cost of a material ? And where those material price are stored ?
      3. While configured the Costing Variant what common things have to consider for Cost estimation ?

      Thanks,

      Saikat.

      Author's profile photo Kannappan Thiruman
      Kannappan Thiruman

      Hi Manish,

      The detailed explanation is good about CK40N Run.

      But we got one requirement :

      Few materials with status ZD and ZE to exclude from this CK40N run. how is it possible...? Materials will be there. but just not to have them in CK40N Run

      Please do the needful.

      Thank you.

      Author's profile photo Christian Heimerl
      Christian Heimerl

      They can be excluded in the selection step with "Dynamic selections" (button in the toolbar).

      Author's profile photo saibabu Pedapati
      saibabu Pedapati

      I have done doubt here…. Once CK40N release done document number will generated where can we see that ?

      do we have any t-code?

      Author's profile photo Christian Heimerl
      Christian Heimerl

      Check SAP Note 3023846 (https://launchpad.support.sap.com/#/notes/3023846) which provides above automation and also copying a costing run (with changing a few date fields in the copy).

      It's a good basis to develop own automations of it.