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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:

Make sure of the following when defining the parameters for inventory calculation:

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:

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.

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:

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:

If you are using parallel valuation in group costing, you can specify the valuation view and partner version of the costing type.


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:

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)


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:

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.