Standard Cost Estimates
You usually create a standard cost estimate for a material at the beginning of a fiscal year or a new season. The standard cost estimate is then valid for the entire year or season. You can use it to determine a standard price for materials in this period.
You should not change the standard cost estimate during this period. The results of the cost estimate then remain constant and are not influenced by price fluctuations or changes in the production setup during the course of the planning period.
You valuate the planned quantity structure of a standard cost estimate with standard prices. A standard cost estimate for a material is not linked to an order or to a production version.
You create a cost estimate based on a costing variant. For standard cost estimates, the costing variant contains the following settings:
- The costing type specifies that the costing results can be updated as the standard price in the material master.
- The valuation variant specifies that the materials are valuated with standard prices or planned prices.
For more information, seePreparing for Costing: Customizing.
For standard cost estimates for materials involving repetitive manufacturing, you must do the following in the MRP view of the material master:
- Set the Repetitive mfg indicator
- Enter a repetitive manufacturing profile
The standard cost estimate calculates a standard price for materials with "S" price control:
- If you
Valuation using standard prices calculated in the standard cost estimate applies only to materials with "S" price control.
You can also use the results of the standard cost estimate to determine the following data for each production order or run schedule header (make-to-stock production) at the end of the accounting period:
- Variances for the actual costs of a product
- Prices for confirmed scrap quantities
- Target costs for valuating the work in process based on the confirmed quantities
For more information about using thecosting results, see the following documents:
For more information about executing a cost estimate, seeCost Estimate with Quantity Structure: Process Flow.
For more information about standard cost estimates in connection with valuated sales order stock, see CO Cost Object Controlling (CO-PC-OBJ) in the R/3 Library under the following documents:
For more information about calculating material prices when using the Actual Costing/Material Ledger component, see the R/3 Library under Actual Costing/Material Ledger (CO-PC-ACT) in the documents
For more information about using standard prices for material valuation, see the R/3 Library under MM Material Valuation in the following documents: