Valuation with Reporting Point Backflushes 
This section explains the valuation of reporting point backflushes. It includes brief information on the valuation of work in process and the calculation of scrap.
The general SAP recommendation regarding changes in routings during the validity period of a run schedule header is as follows:
Confirm on the basis of the preliminary cost estimate for the product cost collector.
You control which cost estimate is used as a basis for the default input quantities of activities per reporting point in Customizing for
Product Cost by Period
under
Simultaneous Costing
Check Control Data for Repetitive Manufacturing Profiles
.
Valuate WIP and unplanned scrap on the basis of the preliminary cost estimate for the product cost collector. The unplanned scrap is calculated in variance calculation.
You control how the work in process and unplanned scrap is valuated in Customizing for Product Cost by Period in the valuation variant for work in process and scrap.
It is especially appropriate to valuate the work in process and scrap on the basis of the preliminary cost estimate if you also use the preliminary cost estimate to calculate the activity quantities to be confirmed.
If you don’t create a valuation variant for work in process and scrap, the system uses the standard cost estimate.
In non-order-specific inventories, the system automatically uses the standard cost estimate for the material.
In sales-order-related production with a valuated sales order stock, the system accesses cost estimates according to a strategy sequence.
To be able to calculate work in process and variances, you must make sure that the task list type, task list group, and group counter of the routing used for valuation matches the task list type, task list group, and group counter of the routing that was used in repetitive manufacturing and for the confirmations. Note also the capabilities of user-defined error management (see also: User-Defined Error Management in Product Cost Controlling ).
Valuation Using Preliminary Cost Estimate of Product Cost Collector
SAP recommends using a preliminary cost estimate for confirmations and for valuating work in process and scrap for the following reasons:
The routing used in the standard cost estimate for the material can differ from the current routing for the production version.
Valuations using the standard cost estimate for the material can produce unusable results, or may not even be possible.
Valuations using the standard cost estimate for the material do not reflect possible changes in the routing and reporting point structure.
Prerequisites
If you use the preliminary cost estimate for simultaneous costing and to valuate the work in process and scrap, the following requirements must also be met:
You create a run schedule header for each production version. You create a product cost collector for each production version. The preliminary cost estimate for the product cost collector then corresponds to a cost estimate for the production version. If the reporting point structure in the run schedule header is changed, use flexible reporting points . Note also the capabilities of user-defined error management.
Features
Valuation on the basis of the preliminary cost estimate offers the following benefits:
Valuation reflects the current production structure
Flexible reporting point structure
See also:
For information on preliminary costing, refer to the following section:
Preliminary Cost Estimates for Product Cost Collectors
For information on the valuation of work in process and scrap, see the following sections:
Work in Process in Product Cost by Period
For information on the valuation variant for work in process and scrap see the Implementation Guide (IMG) for Product Cost by Period under Period-End Closing .
For information on the strategy sequence for a cost estimate with a valuated sales order stock, see the following section:
Valuated Sales Order Stock: Valuation
Standard Price Calculation with a Valuated Sales Order Stock
For information on standard cost estimates for materials, see the document Product Cost Planning .