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:
Create a separate product cost collector for each production version.
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:
Work in process on the original product cost collector could not be reduced. The product cost collector could not be reorganized.
The new product cost collector would have variances in the amount of the costs that were charged to the original product cost collector. The variance calculation process for the second product cost collector would not produce reliable values.
Read the following sections:
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
Create a preliminary cost estimate for the product cost collector.
Read the following sections:
Preliminary Cost Estimates for Product Cost Collectors
Creating a Preliminary Cost Estimate for a Product Cost Collector
Have the activity quantities that are to be confirmed defaulted on the basis of the routing used for the preliminary cost estimate.
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
Valuate the work in process and scrap on the basis of the preliminary cost estimate for the product cost collector.
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
.
If the reporting point structure is changed, use flexible reporting points and update the preliminary cost estimate.
Read the following sections:
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: