You can define certain operations as reporting points and create a confirmation at these reporting points.
You specify whether the operation is a reporting point (milestone) in the control key of the operation.
The system generates the reporting points when you create a product cost collector for the production version. All operations defined as milestones in the control keys are taken from the routing for detailed planning or, if this does not exist, from rate-based planning. A prerequisite is that the repetitive manufacturing indicator in the production version is selected.
You control the following in Customizing for Product Cost by Period under Run Schedule Headers® Check Control Data for Repetitive Manufacturing Profiles:
The reporting point backflush results in the following:
The default values for the activities to be confirmed can be based on:
SAP recommends confirming on the basis of the preliminary cost estimate because you can make changes to the routing (including changes to the reporting point structure) during the validity period of a run schedule header.
Confirmation of Actual Quantities
You can change the default quantities of the material components and the activities. This enables actual quantities to be confirmed.
Confirmation of Variable Costs of Activity Types
You can specify in Customizing for Product Cost Controlling under Product Cost Planning® Basic Settings for Costing Materials ® Define Cost Components whether the full costs in an activity type (fixed and variable costs) or only the variable costs are relevant to inventory valuation. If only the variable costs for a cost component are relevant to inventory valuation, then confirmations result in the order being debited with the variable costs only. The fixed costs remain at the cost center.
Confirmation of Activities
When activities are posted, the system generates an internal activity allocation on the basis of the following information:
To determine what material components were used, the system explodes the current BOM of the production version on the basis of the posting date or revision level. The system backflushes the material components.
You can change the proposed material components and add others. Like other material withdrawals, the backflush uses the standard price or the moving price, depending on the setting of the price control indicator in the material’s master record.
The standard cost estimate can also contain costs that are not relevant to inventory valuation, such as sales and administration costs. In cost estimates with quantity structure, these costs are shown in a separate cost component view. Such costs are not included in the target costs. This ensures that the target costs for the withdrawal of semifinished products are the same as the actual costs.
For detailed information on reporting point backflushing, refer to the document LO-PP Repetitive Manufacturing.
For information on cost component splits, see the documentProduct Cost Planning.