Modified Standard Cost Estimates (SAP Library - Product Cost Planning (CO-PC-PCP))

Modified Standard Cost Estimates

Use

You can use the modified standard cost estimate to calculate the cost of goods manufactured of a material in the course of the fiscal year, and to ascertain changes to the standard cost estimate ("revised standard"). You can transfer the results of a modified standard cost estimate to the material master as the planned price.

The modified standard cost estimate valuates the current quantity structure with the standard price.

You can also use the modified standard cost estimate in Cost Object Controlling as follows:

For the calculation of production variances by period in Product Cost by Order and Product Cost by Period

The target costs are calculated using the modified standard cost estimate and the yield, and are compared with the actual costs less any work in process and scrap.

In both cases, you can use target cost version 3 that is supplied with the standard system. When you use target cost version 3, the calculation of target costs is based on the modified standard cost estimate.

In Product Cost by Period

When you use a cost object hierarchy to distribute the actual costs

To valuate work in process

Prerequisites

You create a cost estimate based on a costing variant. For modified standard cost estimates, you must have made the following settings in the costing variant:

To ensure that the current quantity structure is valuated with the planned prices, you must have specified in the valuation variant that the materials are valuated with standard prices or that the same prices as in the standard cost estimate are used.

If you want to transfer the results of the modified standard cost estimate to the material master, you must have specified in the costing type that the costing results can be transferred as "other planned prices" to the material master.

For more information, see Preparing for Costing: Customizing and Update of Other Planned Prices.

Features

You can create a modified standard cost estimate if the basic costing data have changed for technical reasons (for example, changes to the BOM) during the planning period. In the modified standard cost estimate, the current quantity structure is valuated with the same prices as in the standard cost estimate.

You can compare the results of the modified standard cost estimate with the results of the standard cost estimate in the information system to see how changes in production affect the costs.

You can use the modified standard cost estimate for short-term planning instead of the standard cost estimate. However, the standard cost estimate remains the basis for cost-revenue control and for the calculation of total variances.

You can transfer the results of the modified standard cost estimate into the material master record as the planned price (planned price 1, 2, and 3). This planned price can also be used to valuate the material in the cost estimate. For more information about this, see Price Update.

See also:

Product Cost by Order

Product Cost by Period