Function documentationCosting Sequence

 

You can create different types of cost estimates at different stages of the product planning and production cycle.

  • If you are planning a new product for which only some of the master data (such as the material master) has been created in the system, you can use a material cost estimate without quantity structure to manually plan the cost of goods manufactured and cost of goods sold.

    For more information, see Material Cost Estimate Without Quantity Structure.

  • When the complete master data including BOMs and routings is available in the system, you can create a material cost estimate with quantity structure. This cost estimate automatically calculates the cost of goods manufactured and cost of goods sold.

    For more information, see Material Cost Estimate with Quantity Structure.

Features

You can create cost estimates at different times and for different purposes during the course of the fiscal year:

  • At the beginning of the fiscal year or new season

    • To calculate prices for valuating the materials to be produced, create a standard cost estimate or inventory cost estimate.

  • During the fiscal year

    • To get information on how the costs have changed, create a current cost estimate.

    • To take into account technical changes and their effects on costs, create a modified standard cost estimate.

  • Before the balance sheet is prepared: to determine the valuation methods for the tax-based and commercial valuation of the materials in stock, create an inventory cost estimate.

The following table gives you an overview of the purpose of the various cost estimates:

Type of Cost Estimate

Purpose

Standard cost estimate

  • Valuation of the planned quantity structure with planned prices

  • Calculation of standard prices for the valuation of materials with price control S

Modified standard cost estimate

  • Valuation of current quantities with planned prices

  • Costing of materials during the fiscal year in order to analyze changes in costs

Current cost estimate

  • Valuation of current quantities with current prices

  • Costing of materials during the fiscal year in order to analyze changes in costs

Inventory cost estimate

  • Valuation of current quantities with tax-based and commercial prices

  • Establishment of valuation approaches for inventory valuation

Note Note

The costing variant is the central control element of a cost estimate. It allows you to specify the quantity structure to be valued and the prices to be used, and thus whether the cost estimate is a standard, modified standard, inventory, or current cost estimate.

For more information, see Preparation for Costing: Customizing.

End of the note.