Show TOC

 Current Cost Estimates Locate this document in the navigation structure

Use

You can use the current cost estimate to calculate the cost of goods manufactured of a material in the course of the fiscal year, and to provide up-to-date information as to whether the current material costs are acceptable. You can transfer the results of a current cost estimate as "other planned prices" to the material master.

The current cost estimate valuates the current quantity structure with the current valid prices.

Prerequisites

You create a cost estimate based on a costing variant. For current cost estimates, you must have made the following settings in the costing variant:

  • The valuation variant must specify that the current prices will be used for valuation purposes.

  • If the costing results are to be transferred to the material master, the costing type must specify that the costing results can be transferred as other planned prices.

For more information, see Preparing for Costing: Customizing and Update of Other Planned Prices .

Features

You can create a current cost estimate in certain decision-making cases, such as in situations where you must decide between producing in-house or procuring externally.

In the Information System of Product Cost Controlling , you can compare the results of the current cost estimate with those of other cost estimates (such as the modified standard cost estimate) to determine the effects of price changes on the costs.

In Cost Object Controlling , you can do the following:

  • In Product Cost by Period, you can valuate work in process with target costs calculated using a current cost estimate, provided that you use the corresponding valuation variant for work in process and scrap.

  • In Product Cost by Period and Product Cost by Order, you can valuate scrap with target costs calculated using a current cost estimate, provided that you use the corresponding valuation variant for work in process and scrap.

  • You can calculate variances before period-end closing by defining a target cost version to be used for target cost calculation based on a current cost estimate.

You can transfer the results of the current cost estimate into the material master record as a planned price ( planned price 1, 2 , and 3 ). This planned price can be used to valuate the material in the cost estimate. For more information, see Price Update .

See also:

Cost Object Controlling:

Information System Product Cost Controlling: