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Define Costing
Types
In this step you establish the technical
attributes of the cost estimate.
In the
costing type , you define the purpose of a material cost estimate
by specifying, for example, which field in the material master record the
costing results can be transferred to:
Update |
Cost Estimate |
Standard price |
|
standard cost estimate (01) |
Tax-based price |
|
inventory cost estimate |
Commercial price |
|
inventory cost estimate |
Price other than the standard price |
|
modified standard cost estimate or
current cost estimate
|
No update |
any cost estimate |
Make sure of the following when defining the parameters for the standard
cost estimate:
- That the cost component view for inventory valuation is used as the basis
for standard price calculation
- That this cost component view contains the cost components that are
relevant for inventory valuation
Make sure of the following when defining the parameters for inventory
calculation:
- That the cost component view for tax-based or commercial inventory is used
as the basis for tax-based or commercial price calculation
- That this cost component view contains the cost components relevant for
tax-based or commercial valuation.
- That the lowest value is calculated when costs are transferred into the
material master record
With commercial or tax-based cost estimates, the
system checks whether the current valuation price (according to the material's
price control) is less than the tax-based or commercial price. If the current
valuation price is lower, this price is updated as the tax-based or commercial
price, rather than the value calculated in the inventory cost estimate.
If you want to transfer the results of the
inventory cost estimate to the material master record independent of lowest
value determination, set the indicator Other (not std price) in the costing
type. You can transfer the results of the cost estimate to the material as the
tax-based or commercial price anyway.
The costing type also defines the following:
- On what basis overhead is calculated
For this, you enter a cost component view. The
cost component view indicates which portion of the cost components are
included in tax-based and commercial inventory valuation. The system creates
an itemization for each cost component view. This itemization lists the
individual items that were entered into the cost estimate.
If, for example, semifinished products were entered into the cost estimate
with their costs (including costs of goods manufactured, sales and
distribution costs and administration costs, etc.), you can only calculate
material overhead on the basis of the costs of goods manufactured for the
semifinished product by entering cost component view '01' (costs of goods
manufactured) as the overhead rate base.
- Whether the cost estimate should be saved with a date in its key
You have the following options:
For the standard cost estimate, you must update
automatic costing with the With start of period
indicator. This ensures that the results of the standard cost estimate can be
used as the standard price for that period.
For the other costing types, you can update the
costing results with the With date indicator, for
example. In this case the current date becomes part of the key.
For cost estimates that are not standard cost estimates, you can also
specify the following:
- Whether costing versions are always assigned by the system, or whether
they can be entered manually
In
repetitive manufacturing, if you want to collect the activity
quantities for confirmation using the preliminary cost estimate for the
product cost collector rather than the standard cost estimate for the material
being manufactured, you must do the following:
- Enter a repetitive manufacturing profile in the material master
record
- Set the indicator Preliminary costing for product cost
collectors in the relevant costing type
If you are using parallel valuation in group costing, you can specify the
valuation view and partner version of the costing type.
Requirements
If you want to define your own cost component views, process the step
Define Cost Components
If you want to calculate parallel values, you must do the following:
- Check the settings for parallel valuation in Customizing for General
Controlling
If you want to show partner shares, process the step
Define Partner Versions.
Standard Settings
The standard system contains the following predefined costing types:
Costing type |
Purpose |
01 |
Standard cost estimate |
10 |
Inventory cost estimate (tax-based) |
11 |
Inventory cost estimate (commercial) |
12 |
Modified standard cost estimate |
13 |
Current cost estimate |
19 |
Preliminary cost estimate for the product cost collector (repetitive
manufacturing) |
Activities
1. Enter an alphanumeric key and a name for
the new costing type.
Numeric keys will be rejected because they are
reserved for the standard settings.
2. Enter an overhead rate base.
3. Specify whether and how the date for
cost estimates with and without quantity structure is saved.
4. Specify whether and how the costing
results should be updated in the material master record.
5. If necessary, determine the
following:
- Whether an external number assignment is allowed for versions of this
costing type
- Whether a preliminary cost estimate is created for product cost
collectors
- Which valuation view the costing type represents
- Which partner version is linked to the costing type
Further Notes
For more information on the use of cost estimates in repetitive
manufacturing, see the following section:
Check
Costing Variants for Product Cost Collectors.