Entering content frameMaster Data of PP-PI in Product Cost Controlling Locate the document in its SAP Library structure

Production costs in process manufacturing are calculated using the master recipe and the resources. The production costs can be determined separately for each phase.

A master recipe describes the production of materials in a production run. You can create a master recipe either with reference to a material (the primary product) or to the process. It specifies the following:

The master recipe contains standard values for carrying out the phase. To calculate the planned costs for the phase, these standard values are interpreted together with the formula in the resource.


From Release 3.0C onwards it is no longer possible to cost the operations in the master recipe or in the process order. To avoid duplicate calculation of costs, only the phases are costed.

To correct errors in the dataset, you should delete the indicator for relevancy to costing from the operations in existing master recipes and process orders.

Resources include the means of production and persons involved in a production process. The resource is assigned to a plant.

The master record of each resource specifies a cost center. The cost center is assigned to a controlling area. A cost center can have resources from different plants assigned to it. Each plant is unique in a company code (and therefore also in a controlling area).

In cost center planning, the activities required for the resource are planned using activity types.

Note the differences between primary and secondary resources:

Both the costs incurred for the primary resource (such as the cost of heating for a reaction chamber) and the costs incurred for the secondary resource (such as personnel costs) can be assigned to the product or products through activity types.

The amount of activity expected for an activity type is calculated from the formula in the resource and the standard values in the phase in the master recipe. The planned cost for the phase is calculated by valuating this activity with the activity prices in Cost Center Accounting.


The master recipe corresponds to the routing in order-related production, and the resource corresponds to the work center.

A material master record contains all information necessary to manage a material. The following views are important in Cost Object Controlling:

The accounting view:

The costing view controls the following for Cost Object Controlling:

Here you ensure that the material number for material costs is displayed in the information system.

This allows you to create groups of raw materials or trading goods for purposes such as calculating overhead uniformly for each group.

If you have entered an overhead group, you can link it to an overhead key and define conditions for selected groups of semifinished and finished products.

The variance key in the material master record is transferred into the production order. It specifies that such orders are selected during variance calculation.

The costing view also controls the following:

This information in this view comes from the following sources:

The co-production extras contain an apportionment structure that determines the apportionment of the total costs for an order to the individual co-products.

See also:

For more information, see the document PP-PI Production Planning – Process Industries.



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