Cost planning for sales documents using unit costing
Description
Unit costing is a tool for planning costs and setting prices. It is used to calculate a product's cost of goods manufactured on the basis of the information in the material master records and in cost center accounting for the materials to be used. Further costing items for overhead and other costs can also be created.
In Release 3.0, you can create a unit cost estimate for the following sales document types:
The values calculated in the unit cost estimate are used as the basis for setting prices in the SD module if you define a suitable pricing procedure in Customizing for SD.
For sales orders, the costing values are written in the form of cost elements and as an itemization. You can display them in the Information System for Cost Object Controlling with sales-order-related production.
You can only create a unit cost estimate if the sales order type points to a condition type that corresponds to the entries in the procedure for conditions. You maintain the condition type in the Condition type line items field. The condition type must be of condition category "Q" (Costing).
Default values for the cost estimate (such as a pricing procedure and overhead key) are determined through the requirements class. The requirements class is selected with the MRP group that you specify in the MRP 1 view of the material master record. The MRP group points to a strategy group that includes a number of planning strategies. The strategy in turn points to a requirements type. The requirements type is linked with a requirements class.
You can use the requirements class to define whether a cost estimate has to be created for the sales order. If the Costing indicator is set, the system sets the status to "to be costed" when the order is created. When you save the cost estimate, the system sets the status to "costed". These statuses determine which business transactions can be carried out.
The requirements class points to a procedure and an overhead key. The procedure determines how overhead is calculated in costing. If you want to calculate overhead in relation to an order, you can specify an overhead key and define conditions in the procedure that point to these overhead keys.
Change system parameters in customizing
To be able to create a unit cost estimate for a sales document, you must do the following:
- In the Sales and Distribution module:
- Define a condition type for pricing using a unit cost estimate
Define condition types and access sequences- Add this condition type to the pricing procedure
- Enter default values for unit costing in the requirements class
- In the Controlling module:
- Define a costing variant that contains the control parameters for unit costing
- Define a valuation variant to specify which material prices are selected for the material components and which prices are selected from Cost Center Accounting for the valuation of internal activities.
- Define a costing sheet for the calculation of overhead
Changes in procedure
You call up the cost estimate from the sales document by selecting the item and choosing Item -> Costing . The system displays a dialog box in which you can specify a costing variant, so that you transfer data from the cost estimate for the quotation, for example, into the sales order.
Dependent functions
For results analysis , you use the valuation method to determine whether the system takes the data in the unit cost estimate for the sales document or in the product cost estimate for the material ordered as a basis for valuation.