Recommendations and Notes for Repetitive Manufacturing Environments 

In repetitive manufacturing environments you must create a product cost collector to collect the costs of manufacturing a material.

If you want to charge product cost collectors with actual costs for allocated activities by means of confirmations for the production version, select the indicator repetitive manufacturing in the tab MRP 4 of the material master record. Activities can only be allocated in confirmations when this indicator is selected.

You also specify a repetitive manufacturing profile in the material master record. In the repetitive manufacturing profile, you specify parameters such as the following:

Whether you want to allocate activities

The default activity quantities

etc.

For detailed information, refer to Customizing for Product Cost by Period under Simultaneous Costing ® Check Control Data for Repetitive Manufacturing Profiles.

You can access the documentation on repetitive manufacturing here: Repetitive Manufacturing

SAP recommendations in repetitive manufacturing environments:

When you create the product cost collector, choose the Controlling level Production Version.

If you decide not to follow SAP’s recommendation and to use the Controlling level BOM/Routing instead, the BOM and routing of the product cost collector must be the same as the BOM and routing of the production version. If you use the Controlling level BOM/Routing, you cannot change the quantity structure in the production version later, because it is possible that the costs would not be updated to the original product cost collector. This could result in the following inconsistencies:

Read the following sections:

Product Cost by Period

Product Cost Collectors

Product Cost Collector Material/Production Plant/Planning Plant: Constraints

Status Management for Product Cost Collectors

Creating Product Cost Collectors

Product Cost Collector: Collective Entry for Repetitive Manufacturing

Converting Production Cost Collectors into Product Cost Collectors

Production Versions in Cost Object Controlling

Run Schedule Headers in Cost Object Controlling

Production Processes

Controlling Levels

Read the following sections:

Preliminary Cost Estimates for Product Cost Collectors

Creating a Preliminary Cost Estimate for a Product Cost Collector

You make this setting in Customizing for Product Cost by Period under Simultaneous Costing ® Check Control Data for Repetitive Manufacturing Profiles.

Read the following sections:

Reporting Point Backflushes in Repetitive Manufacturing

Valuation with Reporting Point Backflushes

You make this setting in Customizing for Product Cost by Period under Period-End Closing ® Work in Process ® Define Valuation Variant for Work in Process and Scrap or under Period-End Closing ® Variance Calculation ® Define Valuation Variant for Work in Process and Scrap.

Read the following sections:

Flexible Reporting Points

Updating the Preliminary Cost Estimate

If the production environment is repetitive manufacturing on a sales order basis, read the following sections:

Product Cost Collectors in Sales-Order-Related Production (valuated sales order stock)

Sales-Order-Oriented Repetitive Manufacturing (Nonvaluated Sales Order Stock)

Goods Receipts for Sales Orders (in repetitive manufacturing)

There are a number of special aspects to be noted regarding actual costs in repetitive manufacturing. For more information, refer to the section Actual Costs in Cost Object Controlling.

See also:

Work in Process in Product Cost by Period

Variance Calculation

Scrap Variances