Product Cost Collector Material/Production Plant/Planning Plant: (SAP Library

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

Product cost collectors with the Controlling level Production Plant/Planning Plant have a number of special features:

You cannot create a mixed cost estimate for a material with the Controlling level Production Plant/Planning Plant.

You cannot create a preliminary cost estimate for a product cost collector with the Controlling level Production Plant/Planning Plant.

This means that in repetitive manufacturing no confirmations on the basis of the activity quantities of the preliminary cost estimate are possible.

In the Product Cost by Period component, the work in process is always calculated at target costs. If you want to calculate work in process for a product cost collector with the characteristics Material/Production Plant/Planning Plant, you must calculate the target costs for valuation of the work in process using a material cost estimate. This material cost estimate can be:

The standard cost estimate for a material, on the basis of which the standard costs are calculated
An alternative material cost estimate

In repetitive manufacturing, work in process at target costs for a product cost collector with the characteristics Material/Production Plant/Planning Plant is only possible under the following conditions:

The task list type and task list group of the material cost estimate relevant for the calculation of target costs must be the same as the task list type and task list group that:

Is specified in repetitive manufacturing in the production version
Is copied into the manufacturing order in order-related production and process manufacturing

In repetitive manufacturing, the reporting point structure cannot be changed.
In order-related production and process manufacturing, you should not significantly modify the routings transferred into the manufacturing orders. The more the routings in the manufacturing orders differ from the routings used in material costing, the less accurate the calculated work in process will be.

Example

You have assigned multiple run schedule headers to a product cost collector with the characteristics Material/Production Plant/Planning Plant. The production version specified in run schedule header 1 specifies a routing with the same task list type and task list group on which the material cost estimate relevant for WIP calculation is based.

The production version specified in run schedule header 2 specifies a routing with a different task list type.

The production version specified in run schedule header 3 specifies a routing with a different task list group.

You enter reporting point backflushes. You perform WIP calculation during the period-end closing activities. The system calculates work in process. The work in process reported shows the value of the work in process for run schedule header 1. The system cannot calculate any work in process for run schedule headers 2 and 3.

The same prerequisites are necessary for the calculation of scrap as for the calculation of work in process. The scrap is calculated when the variances are calculated.

Work in Process in Product Cost by Period

Variance Calculation