Product Cost Collector
Cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a material. When you use a product cost collector, the product is the main cost object.
Product cost collectors are independent of the production type. This means that you can collect actual costs on product cost collectors in the following production environments:
● In order-related production (that is, when you are using production orders) when you want to analyze the costs by period rather than by lot
● In process manufacturing (that is, when you are using process orders) when you want to analyze the costs by period rather than by lot
● Repetitive manufacturing
In repetitive manufacturing, you always use product cost collectors as the cost objects.
Product cost collectors are available from Release 4.5A onwards. In earlier releases, the costs of repetitive manufacturing materials were collected on production cost collectors. From Release 4.5A onwards, production cost collectors are converted into product cost collectors. For information on the conversion process, see Converting Production Cost Collectors into Product Cost Collectors.
● Mass Production Based on Sales Orders if you are using a Valuated Sales Order Stock and manufacture the individual requirements material in repetitive manufacturing (see also: Product Cost Collectors in Sales-Order-Related Production).
You can also use one product cost collector on which the costs for a material are collected that is manufactured both for the sales order and for the make-to-stock inventory. A requirement is that the Repetitive manufacturing indicator in the material master record is selected.
You create a product cost collector for the material, plant, and production process.
You do not need to manually create the production process for the product cost collector. The system generates the production process automatically when you create the product cost collector.
If you use product cost collectors, there are relatively fewer cost objects than in Product Cost by Order. This improves performance both in period-end closing and in the information system.
You can precost product cost collectors (see also: Preliminary Cost Estimates for Product Cost Collectors).
Actual costs can be collected on the product cost collector in the following ways:
● Through logistical transactions (such as goods issues or confirmations) for manufacturing orders (production orders or process orders) and run schedule headers For example, goods issues for a production order or reporting point backflushes in repetitive manufacturing debit the product cost collector with actual costs. Goods receipts credit the product cost collector.
● Direct, for example through G/L account postings in Financial Accounting (FI)
In the screen Display Product Cost Collector, you can access reports by choosing Display Costs. You can also view the actual costs for the product cost collector in the Information System at any time.
During the period-end closing process, you can:
● Charge the product cost collector by means of template allocation
● Revaluate the activities at actual prices
● Calculate overhead for the product cost collector
● Calculate the value of your unfinished products (work in process) for the period
● Calculate the variances of the period
● Settle the work in process and variances to other application components
Note the following in the period-end closing process for product cost collectors:
If you do not enter a production process in the individual processing mode of the period-end closing transaction but only enter the data for the material and plant, this period-end closing transaction will be performed for all production processes for that material.
You always create product cost collectors manually.
Product cost collectors cannot be used for the following objects and production environments:
● Sales-order-related production with a valuated sales order stock, except in repetitive manufacturing environments
● Engineer-to-order environments
● Manufacturing orders that are part of a Collective Order
You can create a product cost collector for a material, plant, and production process.
The production process is defined in accordance with a controlling level.
When you create a product cost collector, you specify which controlling level you want to assign to a material. The controlling level for the plant material can only be changed under certain conditions. See also: Editing the Controlling Level
The controlling level contains characteristics (such as BOM/routing or production version) that are used to determine the quantity structure.
You always create the product cost collector for the production process. The following controlling levels for the production process are allowed in the standard system:
● Production: Production Version
If the material has production versions, you should always use the controlling level Production: Production Version. In repetitive manufacturing, use only this controlling level.
● Production: BOM/Routing
● Production: Production Plant/Planning Plant
For detailed information on controlling levels, refer to the documentation Controlling Level.
Integration with the Production Process
To access the product cost collector, you do not need to enter the number of the production process even though the production process appears on the screen. Instead, enter the material and the plant and then select the input help for the production process. In the subsequent dialog box, you can then enter the selection criteria in accordance with the characteristics of the production process (such as the production version). The system then finds the production process using the selection values entered (such as material, plant, production version).
Integration with Manufacturing Orders
If you have specified in the order type of your manufacturing orders that the costs should be collected on a product cost collector rather than on the manufacturing order, the system creates a link to the product cost collector when you create a manufacturing order for the corresponding combination of characteristics (such as material / plant / production version). The manufacturing order receives the status PCC (product cost collector). This status prevents costs from being allocated to the manufacturing order. The production process number is shown in the manufacturing order. You can edit the following fields in the product cost collector:
● Costing variant actual
● Variance key
● Results analysis key
● Profit center
● Business area
● Costing sheet (actual)
● Overhead key
● Functional area (when manufacturing orders are assigned to a product cost collector)
In the manufacturing order, these fields are not ready for input. When the manufacturing order is created, they are transferred from the associated product cost collector. If these fields in the product cost collector are changed, the changes are not transferred into existing manufacturing orders. The entries in the product cost collector are used for daily postings and for period-end closing.
The valuation variant specified in the Costing variant actual of the product cost collector is used to valuate the data confirmed for the manufacturing order.
The Costing variant planned in the manufacturing order is not transferred from the product cost collector but is defaulted from the order type of the manufacturing order. This costing variant results in a temporary preliminary cost estimate for the manufacturing order. This preliminary cost estimate cannot be saved.
No settlement rule is generated for a manufacturing order that is linked to a product cost collector.
Manufacturing orders are automatically linked to product cost collectors of the production process whose characteristic values match the manufacturing order. The product cost collector cannot have a deletion flag.
You can view the product cost collector from within the manufacturing order.
The link between the manufacturing order and the production process of the product cost collector can only be changed as long as no functions that result in costs have been performed for the manufacturing order. If no such functions have been performed, then if you change the production version or the BOM and routing, for example, the manufacturing order can be assigned to a different product cost collector. If costs have already been incurred, the original assignment is retained even if you change the production version or the BOM and routing.
If no product cost collector to which the manufacturing order can be linked has been created, the system issues a message informing you of this fact when you create the manufacturing order. In this case the system uses the manufacturing order itself as the cost object. If no actual costs have been collected on the manufacturing order, it is still possible to switch to a product cost collector as the cost object rather than the manufacturing order, as specified in Customizing. To do this, you create the product cost collector in the menu of Product Cost by Period. To link the manufacturing order to the product cost collector, read the master data into the production order.
If you want to assign manufacturing orders to a product cost collector, note that before this assignment is made, the manufacturing orders may have different default values for the functional area than does the product cost collector. This is because product cost collectors take the functional area from the order type for product cost collectors, but manufacturing orders take the functional area from the order type for manufacturing orders.
When you assign a manufacturing order to a product cost collector, the system transfers the functional area of the product cost collector into the master data of the manufacturing order. In this case, it is no longer possible to change the functional area in the master data of the manufacturing order.
For information on linking manufacturing orders to product cost collectors and changing the assignment, refer to the section Linking Manufacturing Orders to Product Cost Collectors.
Integration with Cost Object Hierarchies
You can assign product cost collectors to cost object hierarchies.
Integration with Logistics
If you perform business transactions for manufacturing orders or production versions in logistics, the product cost collector linked to the logistical order is debited or credited accordingly. For example, if a confirmation is entered for an operation, costs and input quantities are updated on the product cost collector as a debit. If the logistical order delivers to inventory, the product cost collector is credited. The delivery quantity is updated on the product cost collector.
For more information on product cost collectors, refer to the following sections:
Recommendations for repetitive manufacturing environments are provided in the following section:
For detailed information order splits and on linking production orders to product cost collectors, see the following section:
For detailed information on linking process orders to product cost collectors, see the following section:
For information on viewing the costs collected on product cost collectors in the Product Cost Controlling Information System, refer to the document Information System for Product Cost by Period and to the description of the individual reports.
For information on order-related production, refer to the document Logistics → Production Planning.
For information on process manufacturing, refer to the document Logistics → Production Planning - Process Industries.
For information on repetitive manufacturing, refer to the document Logistics → Production Planning - Repetitive Manufacturing.
For information on configurable materials, refer to the document Logistics → Logistics - General → Variant Configuration.
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