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Some information regarding Production Order planned costs

Planned costs are the base cost for an order. Other costs for example actual costs & target costs are more or less referring planned costs. So it’s important to understand the calculation of the order planned costs. Here are some information which you may find useful:

1. To check planned costs, you may go into the order master data with CO03 and in the Menu – Costs – Analysis.

To understand the costs better, it’s suggested to change the view to “Cost Trend”. Then the costs will be categorized into some groups like Goods Issues, Confirmations, Goods Receipts and so on.

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2. The values shown with negative sign are Credits like Goods Receipt. The values shown without negative sign are Debits like Goods Issues, Confirmations.

3. You can define with parameter below to set whether the planned costs to be saved or not when order is being saved:

SPRO(IMG) – Product Cost Controlling – Cost Object Controlling – Product Cost by Order – Manufacturing Orders – Define Cost-Accounting-Relevant Default Values for Order Types and Plants => Planned Cost Calcul.

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4. The Debit values are calculated according to the released cost estimate for the produced material. If there is no available released cost estimate, the values will be calculated according to the Planned Costing Variant which is in the master data – Control data tab.

The Credit value is according to the standard price of the produced material. So if you have changed the standard price after standard cost estimate released, the Credit value and the sum of Debit values will be different. This causes balance in the planned costs.

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5. If the order is linked with sales order item, the Debit values are depending on the valuation strategy for the sales order item. You can check field LBWST in table EBEW to see the strategy.

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When the first GR is done for the sales order item, the system will go through all the strategy sequences which are described in Note 520000 – Q&A number 2:

1) Standard price from the valuation table EBEW/QBEW, that is, “Value from Make-to-Order Stock Segment” if the EBEW/QBEW segment      exists already  

2) Standard price in accordance with the CUSTOMER exit COPCP002 “Material valuation of valuated sales order stock” 

3) Standard price in accordance with sales order costing or the order BOM cost estimate 

4) Standard price in accordance with the preliminary costing for the production order, process order or product cost collector; costing of the WBS element for engineer-to-order 

5) Standard price in accordance with the entry in the material master record of the collective requirements inventory

If a corresponding value does not exist, the system skips to the next strategy in each case.

If none of the above strategies is used, the system uses the standard price from the valuation table MBEW, that is, “Value from Make-to-Stock Inventory”.

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