Costing Sequence (SAP Library - Product Cost Planning (CO-PC-PCP))

Costing Sequence

Use

The following graphic shows you the types of cost estimate you can create, the stage of the production cycle at which you can create them, and the functions that you can use for this purpose:

This graphic is explained in the accompanying text

If you are planning a new product for which there is no master data in the R/3 System, you can carry out the initial planning and cost projections by creating a base planning object. For more information, see Reference and Simulation Costing.

When the first master data (such as the material master) is created in the R/3 System at a later date, you can use the material cost estimate without quantity structure to manually plan the cost of goods manufactured and cost of goods sold for the product, and use the base object cost estimate as a reference for this. For more information, see Material Cost Estimate Without Quantity Structure.

When the complete master data (such as BOMs and routings) is available in the system, you can create a material cost estimate with quantity structure, which automatically calculates the cost of goods manufactured and cost of goods sold from the existing data. For more information, see Material Cost Estimate with Quantity Structure.

Features

You can create cost estimates at different times and for different purposes during the course of the fiscal year:

At the beginning of the fiscal year or new season

To plan and simulate costs for new products or services (base object costing)
To calculate prices for valuating the materials to be produced (standard cost estimate, inventory cost estimate)

During the fiscal year

To provide information on how the costs are changing (current cost estimate)
To take into account technical changes and their effects on the costs (modified standard cost estimate)

Before the balance sheet is prepared

To determine the valuation methods for the tax-based and commercial valuation of the materials in stock (inventory cost estimate)

The following table gives you an overview of the purpose of the various cost estimates:

Type of Cost Estimate	Purpose of Cost Estimate
Base planning object	Planning and simulation of new products and services What-if analyses
Standard cost estimate	Valuation of the planned quantity structure with planned prices Calculation of the standard prices for the valuation of S-price materials
Modified standard cost estimate	Valuation of current quantities with the planned prices Costing of materials during the fiscal year in order to analyze cost developments
Current cost estimate	Valuation of current quantities with the current prices Costing of materials during the fiscal year in order to analyze cost developments
Inventory cost estimate	Valuation of actual quantities with tax-based and commercial prices Establishment of valuation approaches for inventory valuation

The following graphic summarizes the quantity structures and prices used in costing in addition to the purpose of the respective cost estimates:

This graphic is explained in the accompanying text

Note

You use costing variants to specify the purpose of costing and the quantities and prices used. The costing variant is the central control key of a cost estimate. Using the various settings in the costing variant, you can specify the quantity structure to be valuated and the prices to be utilized. In essence, you are stating whether the cost estimate is a standard, modified standard, inventory or current cost estimate. For more information, see Preparing for Costing: Customizing.