Preliminary Costing of CO Production Orders (SAP Library - Cost Object Controlling (CO-PC-OBJ))

Preliminary Costing of CO Production Orders

Use

You calculate planned costs for a production order for the following purposes:

To determine the planned costs for the material being manufactured based on the planned lot size of the order

To be able to determine the production variances at a later time

In sales-order-related production you can use the preliminary cost estimate for the production order for the following purposes:

To calculate a standard price for individual requirements materials

In the Product Cost by Sales Order component, to use the planned costs calculated in this way to determine the planned costs for the sales order item

In the Product Cost by Sales Order component, to use the planned costs calculated in this way as the basis for results analysis

Integration

If you are using a production order without quantity structure, the system accesses the master data of Controlling.

Prerequisites

Before performing preliminary costing for a production order, check the following control parameters in Customizing for Product Cost by Order:

Order type

Costing variant

To see which costing variant was used as the basis for cost planning, access the manufacturing order and go to the master data. You can define the costing variant as a default value in Customizing for Product Cost by Order under Preliminary Costing ® Production Orders or Process Orders ® Define Default Values for Order Types (PP and CO).

Valuation variant

The valuation variant is assigned to the costing variant.

Costing sheet

The costing sheet is assigned to the valuation variant. To see which costing sheet was used as the basis for cost planning, access the manufacturing order and go to the master data.

Features

The planned costs for production orders without quantity structure are calculated in a cost estimate without a quantity structure. You can either enter the costing items manually or transfer the data from another system.

All control parameters for costing are defined in a costing variant that you specify when you create the cost estimate.

The pricing date for cost calculation is set to the current date as a default. The material prices and plan activity prices for the activity types are determined at this date. The pricing date is the same as the starting date of the order. The costing values are updated in the period that is determined through the pricing date.

As soon as you have created a cost estimate without quantity structure for the order, you can view various reports on the order in the Product Cost Controlling Information System.

Transfer Prices

If you are using transfer prices, you can distribute planned costs in multiple valuation views.

See also:

For detailed information on cost reports, see the documentation Product Cost Controlling Information System.

For information on updating data in multiple valuation views, refer to the following section:

Transfer Prices in Cost Object Controlling