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I worked as an integrations manager for SAP implementations for a manufacturing company. One of the ongoing issues for us was cost.

As and when we started bringing the plants up and running on SAP it has become a major hurdle to make sure the product cost matches the legacy system. One other problem that was hurting us was rolling the cost for all the plants at the time of Go-Live but also periodic cost roll.

A lot of times standard cost companies have a yearly cost roll schedule that can take up a long time. Here is a process that can use parallel processors and job dependencies that can make the process less painful. Be mindful of updating the cost collector in case that is used as will

 

So here are the steps –

— Create Selection List (Optional)

— Create Costing Run (Required)

— Update Cost Collector (Required if REM is used)

 

Selection List –

This is useful if there are plants sell the product produced by other Sister Plants. Special Procurement MARC-SOBSL on the MRP2 tab of material master is what drives this process.

Create one selection List for all the manufacturing plants that do not have a dependency and another for the distribution centers or other plants that consuming or selling this product.

 

Once the Selection List are created execute the “Edit” Selection List to remove the records that are not valid

Create Costing Run – CK40N

Here is where you might require the help of Basis in defining the server Group that would let you select the parallel processors

There are 6 steps when you are ready to roll the cost. Selection; Structure Explosion; Costing; Analysis; Marking; Release

Selection is where you use the first of the many selection list that were created.

Once the selection is scheduled to run at a particular date / time rest all can be set to run as the job dependencies

Marking and Release are two steps where parallel processors can be defined.

This process let us schedule the yearly cost roll with minimum effort. Until I got the call at 3:00 AM from the production floor that they were not able to cut new REM production orders the very next day!

The message they were getting is “standard cost is not valid for the today”. then were using the MFBF transaction to post.

Well, we did roll the cost and all materials had valid current cost on the material master.

After investigating further, trying to see if a new production version was required or a cost collector, we came across MF30.

Update Cost Collector –

When a company is using Repetitive Manufacturing, Cost collectors should be updated right after the Standard Cost update. The T-code for this is MF30

Using this handout would ensure a smooth once-a-year process and avoid 3:00 AM calls from the production supervisor 🙂

 

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