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Check Costing Variants for Manufacturing Orders (PP)

Thecosting variant contains the control parameters for the cost estimate.

In this step you check the costing variants that are used for the following in Product Cost by Order:

Prerequisites

Standard settings

The SAP standard system contains the following costing variants for manufacturing orders:

These costing variants consist of the following:
This costing type specifies that the costing results are updated as planned costs.
This valuation variant controls which prices are used for the valuation of materials, external activities and subcontracting and which activity prices are used for the valuation of activity types and business processes.
Furthermore, the costing sheet that you assign to this valuation variant is defaulted into the master data of the manufacturing order. This costing sheet is used for overhead calculation in preliminary costing for the manufacturing order and actual overhead calculation in period-end closing.
This costing variant consists of:
This costing type specifies that the costing results are updated as actual costs.
This valuation variant determines which activity prices are used to valuate the activity types and business processes on which the following activites are performed in the actual data:
- Manual allocation
- Automatic allocation through confirmation in PP
- The manufacturing order is charged through the template allocation

Note

While 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.

This is because the key structure for the costing results in the database uses the costing type and the valuation variant, rather than the costing variant.

SAP Recommendation

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

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

Actions

1. Decide whether the existing costing variants meet your requirements.
2. To create a new costing variant:
a) Enter an alphanumerical key and a name for the costing variant.
b) Assign a costing type and a valuation variant to the costing variant.
If you want to use your own parameters, you must carry out the steps under Define valuation variants.
c) Assign the costing variant to the appropriate order type by processing the step Define default values for order types (PP and CO) .

Further Notes

The default values for each order type enable you to define whether the planned costs are recalculated each time a change is made that is relevant to costing. Carry out the following step: