Meaning of cost variants in Product Cost Controlling

Definition

Key that determines how a cost estimate is carried out and valuated.

Use

Depending on the reference object, costing can be carried out with unit costing or costing.

You create a product cost estimate with or without quantity structure to calculate the planned costs of producing a material.

In the cost estimate with quantity structure, the costing variant determines the following:

• Which dates are valid for the cost estimate itself and for exploding and valuating the quantity structure

• How the BOMs and routings are selected to create the quantity structure

• What prices are selected to valuate the quantity structure

• How overhead is calculated

You create a unit cost estimate to cost the following objects:

• Materials (cost estimate without quantity structure)

• Production orders in Controlling

• Internal orders

• WBS elements

• Base planning objects

• Cost object IDs

• Sales documents

In unit costing, the costing variant determines the following:

• What prices are selected to valuate the individual costing items

• How overhead is calculated

Costing variants are also used to calculate costs for the following objects:

• Production orders

• Networks

• Maintenance orders

• Run schedule headers

• Process orders

Dependencies

The costing variant is linked to the following control parameters:

• Costing type

• Valuation variant

• Date control (in costing with and without quantity structure)

• ID (in product costing)

• Transfer control (in product costing)