Define Costing Variants (SAP Library - Product Cost Controlling)

Define Costing Variants

Costing variants form the link between the application and Customizing, since all cost estimates are carried out and saved with reference to a costing variant.

Control Parameters in the Costing Variant

The costing variant contains all the control parameters for costing.

The costing variant for a material cost estimate contains the following control parameters:

Costing type

Valuation variant

Date control

Quantity structure control

(only relevant for cost estimates with quantity structure)

Transfer control (optional)

Reference variant (optional)

Note

Although it is technically possible to have two costing variants with the same costing type and valuation variant, this should be avoided to prevent data from being overwritten.

The reason for this is that the key structure for the costing results in the database uses the costing type and the valuation variant, rather than the costing variant.

Note

Since this costing variant can be used for cost estimates both with and without quantity structure, you must also make the settings that are only relevant for cost estimates with quantity structure even if you are only executing a cost estimate without quantity structure.

In Quantity structure you determine the following:

How the costing lot size is handled (see

Pass On Lot Size)

Whether cost estimates without quantity structure are included (see Ignore prod cost est w/o qty structure )

Whether transfer control can be changed when calling the cost estimate (see Transfer control can be changed)

Whether an active standard cost estimate can be transferred if the cost estimate for a material contains errors (see Transfer active std cost est. if mat. costed w/ errors)

In Additive Costs you determine the following:

Whether you can transfer the cost components that were entered in the form of an additive cost estimate (see Additive Costs)

Whether the additive costs for materials with the special procurement types stock transfer or production are included in another plant (see Include additive costs with stock transfers)

In Update you determine the following:

Whether the costing results can be saved and what values are updated (see Saving allowed)

The cost component split is always updated. You must specify whether the following values are also updated:

Itemization (see

Save itemization)

Log (see Save error log)

Whether the user can change the update parameters and the parameters for transfer control (see Defaults can be changed by user)

Which reference variant you want to use for group costing

In Assignments you determine the following:

Which

cost component structure is used for the cost estimate (see also Define Cost Components)

Whichcosting version is used (see also Define Costing Versions)

Whether the cost component split can be saved in the controlling area currency in addition to the company code currency (see also Activate Cost Component Split in Controlling Area Currency)

Whether you can cost

across company codes with this costing variant

In the note Miscellaneous you determine the following:

Whether a log is created to collect the system messages (see Error management)

Requirements

If you want to work with an error log, you must already have carried out the following steps:

Assign messages

Define flexible message types

Define condition records for error control

Standard Settings

The standard system contains a number of predefined costing variants. To check which parameters are linked to these costing variants, use the Check settings function or choose the Check costing variants function in the detail screen.

PPC1 Standard Cost Estimate

A standard cost estimate calculates the standard costs for a semifinished or finished product. Costing type 01 specifies that the results of this cost estimate are written to the material master as the standard price, and thus can be used to valuate inventories.

Costing variant PPC1 specifies valuation variant 001, quantity structure determination ID PC01, and date control PC01. No transfer control takes place.

PPC2 Modified Standard Cost Estimate

You create a

modified standard cost estimate when the data for costing has changed within a planning period. Costing type 12 specifies that the results of this cost estimate are used only for informational purposes.

Costing variant PPC2 specifies valuation variant 009, quantity structure determination PC01, and date control PC05.

PPC3 Current Cost Estimate

You create a current cost estimate when you want to make a decision based on the current price of the material. Costing type 13 specifies that the results of this cost estimate are used only for informational purposes. As an alternative, you can set the indicator Prices other than standard price in the costing type so that the results of this cost estimate can be written to the material master as a planned price.

Costing variant PPC3 specifies valuation variant 009, quantity structure determination PC01, and date control PC04.

PREM Preliminary Costing of Cost Collectors

Thepreliminary cost estimate for the product cost collector is used to calculate preliminary costs on the basis of the quantity structure of a production process. Costing type 19 means that this cost estimate is only relevant for product cost collectors.

Costing variant PREM specifies valuation variant 001, transfer control PC02, and date control PC01. Quantity structure determination is not relevant, as quantity structure is determined through the production process.

There are no standard settings for the inventory cost estimate.

SAP recommendation

You should assign a different valuation variant to each costing variant with which you intend to save cost estimates.

While costing variants with the same costing type and valuation variant are formally allowed, they should be avoided due to possible data overwrites.

The reason for this is the key structure for the costing results in the data base. This key structure is based on the costing type and the valuation variant, and not the costing variant.

This one-to-one assignment enables you to change the valuation strategies later as required.

Actions

Decide whether the costing variants provided in the standard system meet your requirements.

To create a new costing variant (such as for inventory costing):

1. Choose New entries.

2. Enter an alphanumerical key and a name for the costing variant.

3. Assign the following parameters to the costing variant:

Costing type

Valuation variant

Date control

Quantity structure control (only relevant for cost estimates with quantity structure)

Transfer control (optional)

Reference variant (optional)

4. In Miscellaneous define how system messages on costing are issued

5. In Additive costs define whether additive costs can be entered and whether these should be included in stock transfer.

6. In Quantity structure define the following:

Whether the lot size of the highest assembly is used for costing the material components below this assembly

Whether the system accesses a cost estimate without quantity structure for a particular assembly

Whether transfer control can be changed when you create a cost estimate

Whether the standard cost estimate should be used for materials with errors

7. In note Update define the following:

Whether the costing results can be saved

The default parameters for saving the cost estimate

Whether these default values can be changed manually when saving the cost estimate

8. Check the following parameters in Assignment.

Cost components or cost component structure

Costing versions

Cost component split in controlling area currency

Cross-company costing

9. Save the costing variant.