Master Data for Costing with Quantity Structure
To calculate the material, production, and overhead costs for a material, costing with quantity structure can access the following master data in other SAP applications:
The material costs for a material are calculated using the BOM and the master records of the materials in the BOM. The production costs are calculated using the routing, the work centers where the respective operations are carried out, the cost centers, and the activity types. You can calculate overhead using the material costs and the production costs as a base.
In Production Planning (PP), the work center is the organizational entity in which an operation is carried out. Each work center is linked to a cost center . The cost center is the organizational entity in Controlling (CO) where costs are incurred.
A routing contains the default values for the production of a product. The work center contains parameters such as:
Formulas that access the default values in the routing
Activity types for which activity prices are planned or determined in Cost Center Accounting
On the basis of the formula in the work center and the default values in the operation, the system calculates the anticipated activity input. This activity is valuated using the prices in Cost Center Accounting to calculate the planned costs for the operation.
In the routing, you can also assign the material components contained in the bill of material to the individual operations. This enables you to plan:
Which material components are provided and on which date
Which material costs are expected on which date
The integration described above also applies if you work with the PP-PI master data (master recipes, material lists and resources) instead of the PP master data (BOMs, routings, work centers). The material list assigned to the master recipe contains the information pertaining to the material components used. The phase overview details the work required to manufacture the product and the default values. The resource is the organizational unit at which an operation or phase is carried out. It also specifies a cost center.
In view of the high level of integration between costing and the master data of other SAP applications, you should check the entries in those applications before creating cost estimates.