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CO-PA: Material Cost Valuation for FERT Materials without Std Cost Estimate

Questions Answered in Article,

After Reading this Article, you will get the answers to the following Questions,

1- How to Configure and Execute KKPAN – Material Cost Estimate without  Quantity Structure.

2- How to Configure/ Use KEPC in Costing Based CO-PA.

3- CO-PA Valuation for FERT Materials without Std. Cost Estimate

4- Solution to Message no. KE350 . Valuation with material cost estimate: error with product “XXXXXXXX”.

 

Business Scenario:

Normally, We ran standard cost estimate with quantity for Material type FERT. Then for CO-PA Valuation for Material Cost Estimates, we configure KE4J & KE4R, to transfer the Cost Component break up to CO-PA.

Below is the IMG Path for reference,

To transfer Cost Component Split for all FERT Material, to analyze Product Wise Profitability.

Use T-Code: KE4J

OR

If you want to Transfer Cost Component Product/ Material Number Wise,

Use T-Code: KE4H

 

Now, we have to assign all the Cost Components to CO-PA Value Fields.

Use T-Code: KE4R

 

However, for some FERT materials, we don’t execute standard cost estimate and insert standard cost to material master directly.

Example, In my case, for few FERT Materials whose Inventory are build through Material Transfer (Movt Type. 309), we don’t ran Std. Cost Estimate.

In this case, the standard cost estimate on Material Master cannot be transferred, since its not executed in System. That why system generates error,

Valuation with material cost estimate: error with product “XXXXXXXX”

Message no. KE350

Solution :

Below are the few solutions,

1- Execute the Standard Cost Estimate without Quantity Structure.

We can run standard cost estimate without quantity i-e: without BOM and Routing for Materials. We will input the cost to each cost element.

Use T-Code: KKPAN

Press ENTER and DEFAULT VALUES.

Press ENTER

Now in screen shot below, are the list of Item Categories you can use to calculate Unit Cost Estimate of Materials

These Item Categories comprises of Materials, Activity, and other Costs that you need to assign to Material Standard Cost Calculation.

In our case we can use only two Item Categories (Highlighted with Yellow) to create Unit Cost Estimate for Materials

Now, select the item Category as per your requirement. In this example, the Unit Cost Estimate consists of four Materials and three Activities, as shown in screen shot below.

Now focus on the Red Highlighted Column of below figure, where I assigned RAW and SFG Materials to Unit Cost Estimate. Here I maintained the following,

Category: M Material

Resource: Material Number

Plant/Act: Plant No

Quantity: No in KG/ PCs / EA.

Unit: KG/ PCs / EA

Now focus towards the Blue Highlighted Column of below figure, where I assigned Activity Type i-e; MAC, LAB and FOH to Unit Cost Estimate. Here I maintained the following,

Category: E Internal Activity

Resource: Prod Cost Center

Plant/Act: Activity Type

Quantity: No of Hours Req.

Unit: HR

Last we see the Green Highlighted Column, in which the data gets Automatically picked based on following settings,

Category M – Material

-Rate from Material Master.

-Consumption Account from OBYC settings for Material.

Category E – Internal Activity

-Activity Prices from KP26 settings.

-Cost Elements from Activity Master Data settings.

Then Save.

SAVE and come BACK.

Execute T-Code: CK24

Now, we will Mark and Release the Cost Estimate for this Material and check the Standard Cost for material in MM03 Material Master and CK13N.

Link: https://www.toolbox.com/tech/enterprise-software/question/copa-valuation-without-standard-cost-estimate-060210/

2- To Configure and Use KEPC, to exclude those Materials from the CO-PA Material Cost Estimate.

First, delete all configuration for Materials ot Material Type form transaction KE4H and KE4J

Use T-Code: KEPC

Click Create,

 

Now, here we have three option, as shown in above picture,

1- Assignment Rule

2- Table Lookup

3- Enhancement

I will only demonstrate the use of first option i-e; Assignment Rule.

Scenario: To exclude few FERT materials from Material Type FERT, we need to create two step Assignment Rules.

Step 1 : Includes all FERT Materials Using Material Type FERT.

Step 2: Excludes List of Materials from the Material Type FERT. (assigned in Step 1)

Step 1 : Includes all FERT Materials Using Material Type FERT.

Now in Source Fields, add MTART (Material Type), as shown in below screen shot,

Now in Target Fields, select First Costing Key and click Detail (Button Beside) and select option

  • Do Not Overwrite with New Value if field already filled.

As shown in below screenshot,

Now click Save and then Maintain Rule Values (shown in below screenshot),

Now maintained following values,

Point of Valuation : 01

Record Type: F

Mat Type: ZFRT

First Costing Key: 001

Below is the screenshot for reference,

 Then Save.

Step 2: Excludes List of Materials from the Material Type FERT. (assigned in Step 1)

Now come back and Click Create for New Assignment Rule creation, as shown in below screenshot.

Now in Source Fields, add ARTNR (Product Number), as shown in below screen shot,

Now in Target Fields, select First Costing Key and click Detail (Button Beside) and select option

  • Overwrite with New Value even if New Value is Initial

As shown in below screenshot,

Now Save and Click on Maintain Rule values, and maintained following values,

Point of Valuation : 01

Record Type: F

Product No From: ZFRT    XXXXXXX1  –> Product No To: XXXXXXX9

First Costing Key: (blank) -> as in this case we want Costing Key to be null if the Materials Exsits in the List.

Below is the screenshot for reference,

Come Back and Save

Link: https://answers.sap.com/questions/7764108/error-message-ke350—valuation-with-material-cost.

Thanks for reading the article. Hope you found this Blog helpful. For further details knowledge on the subject please read the links provided in the references section below.

References:

https://answers.sap.com/questions/7764108/error-message-ke350—valuation-with-material-cost.

https://www.toolbox.com/tech/enterprise-software/question/copa-valuation-without-standard-cost-estimate-060210/

https://answers.sap.com/questions/8788796/copa-kepc-settings.html

https://answers.sap.com/questions/9493223/assign-costing-key-to-any-characterstic-kepc.html

https://answers.sap.com/questions/7391002/copa-valuation-without-standard-cost-estimate.html

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