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Costing Variants for Product Costing

Here you define the control parameters for the following:

The costing variant is the central control parameter for costing. Other parameters that affect costing are linked to the costing variant. You define control parameters for the selection of BOMs and routings for creating the structure, and also for the valuation of the quantity structure.

These parameters are defined through the following:

The costing variant contains control parameters for costing. It is specified when product costing is accessed from the sales order, and represents the link between the application and Customizing. You can specify the costing variant in the requirements class. (See also: Check Requirements Class.
The costing type specifies, among other things, what reference object (material, order, project, etc.) costing is being performed on, and whether the reference object can be costed with product costing, unit costing, or both.
The date control ID in product costing determines what dates the user must enter, and specifies which dates are shown as defaults.
The quantity structure determination ID controls how the system looks for valid alternatives to create a quantity structure for product costing using BOMs and routings
The quantity structure determination ID is linked to an order type to define order-type-dependent control parameters for determination of dates in product costing.
The transfer control ID determines how the system looks for existing costing data in order to use this data in another cost estimate. It determines how the system accesses existing cost estimates for materials in the BOM that either are in the same plant or that have a certain special procurement type.
The valuation variant determines which prices are used for the materials, internal activities and external activities that appear in the cost estimate or order.

Overhead is calculated in a costing sheet that is defaulted into the sales order through the requirements class. This costing sheet is passed on to the subordinate materials in the BOM if the Pass on costing sheet indicator in the costing type is selected. If this indicator is not selected, the system uses the costing sheet in the valuation variant when it calculates the overhead.