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 Creating Preliminary Cost Estimates for Product Cost Collectors

Prerequisites

You have created a product cost collector with the Controlling level Production Version or BOM/Routing .

You have entered a costing variant planned in the product cost collector. This costing variant must specify costing type 19 (in this costing type, the indicator Preliminary costing for product cost collectors is selected). Check this setting in Customizing for Product Cost by Period under Start of the navigation path Product Cost Collectors Next navigation step Check Costing Variants for Product Cost Collectors End of the navigation path . In the dialog box, choose Costing Variants to Determine Activity Quantities .

Procedure

Single and Multiple Processing

You can create a preliminary cost estimate for one or more product cost collectors with the function edit product cost collector when you create the product cost collector, or in the change mode. When you create a preliminary cost estimate in the function edit product cost collector , you can check the costing parameters before starting the costing process. You can view the cost estimate in the same function immediately after creating it.

Costing Product Cost Collectors When You Create Them

When you save, the dialog box Do you want to create a preliminary cost estimate for the product cost collector? appears. Choose Yes .

Costing in the Change Mode

Before costing, check the costing variant and the overhead key in the Data tab.

Enter a costing lot size in the Production process tab. The tabs also show which quantity structure the preliminary cost estimate is based on.

Select the product cost collector(s) that you want to cost, and choose the button Costing.

Edit Product Cost Collector: Screen Layout

See also: Editing Product Cost Collectors

Preliminary Cost Estimates for Product Cost Collectors: Collective Processing

You can also create preliminary cost estimates with report program RMSERI40. This report program increases performance when costing a large number of product cost collectors, since the data can be processed simultaneously on multiple servers.

  1. Choose Start of the navigation path Accounting Next navigation step Controlling Next navigation step Product Cost Controlling Next navigation step Cost Object Controlling Next navigation step Product Cost by Period Next navigation step Planning Next navigation step Preliminary Costing for Product Cost Collector End of the navigation path .

  2. The screen Creation of Preliminary Cost Estimates for Product Cost Collectors appears.

  3. Enter the required data. If you want to use parallel processing, enter a server group. Choose Execute .

Result

The cost estimates receive the number of the production process. The product cost collector receives the status PRC (pre-costed).

In the function Edit Product Cost Collector you can view the message log by choosing costing log . From the log, you can view the messages that are listed in the log and that can be influenced by user-defined error management (see also: User-Defined Error Management in Cost Object Controlling ).

You can view the cost estimate with Start of the navigation path Goto Next navigation step Display Cost Estimate End of the navigation path . The system first displays a selection list of all preliminary cost estimates of different dates for the product cost collector. The screen Display Material Cost Estimate with Quantity Structure appears.

You can view the following information on a preliminary cost estimate for a product cost collector:

  • The cost component split under Start of the navigation path Costs Next navigation step Display Cost Components End of the navigation path

Caution Caution

The cost component split displayed here is not a true cost component split. It is only a single-level cost component split. This means that the assemblies are not exploded. Instead, the total value of the assembly is shown under the cost component to which the cost element of the assembly is assigned.

For information on cost component splits, refer to Cost Component Report .

End of the caution.
  • The itemization with Start of the navigation path Costs Next navigation step Itemization End of the navigation path

  • The costed multilevel BOM with Start of the navigation path Costs Next navigation step Costed Multilevel BOM End of the navigation path .

  • The cost reports defined in the user exit display with Start of the navigation path Costs Next navigation step User Exit Display End of the navigation path

Cost reports 1 and 2 are preset.

  • The message log for costing with Start of the navigation path Extras Next navigation step Log End of the navigation path

  • Other information with Start of the navigation path Extras Next navigation step Information End of the navigation path

  • The quantity structure used in the cost estimate with Start of the navigation path Extras Next navigation step Quantity Structure End of the navigation path

Other functions are also available, such as switching to a different cost component view and changing the cost base.

Note Note

The preliminary cost estimate of a product cost collector does not update planned costs to the product cost collector. A preliminary cost estimate for a product cost collector differs in this respect from a preliminary cost estimate for a manufacturing order.

In a preliminary cost estimate for a manufacturing order, the planned costs calculated on the basis of the quantity structure specified in the manufacturing order are charged directly to the manufacturing order. The planned costs for a manufacturing order can be used to calculate planning variances. This enables you to determine the most suitable production lot size, for example.

The preliminary cost estimate for the product cost collector, on the other hand, uses the costing lot size specified in the product cost collector in the Production process tab, rather than the production lot size. You cannot determine planning variances with the preliminary cost estimate for a product cost collector.

If you have created preliminary cost estimates for product cost collectors in collective processing (report program RMSERI40), you cannot view the cost estimates from the report program. To view the cost estimates, use the function Edit Product Cost Collector . A message log is output after you have executed the report program.

End of the note.

See also:

For detailed information on costing materials, refer to the document Product Cost Planning .

For detailed information on the reports in Product Cost Controlling , refer to the documentation Product Cost Controlling Information System .

For more information on performance improvements in Product Cost Controlling, see the following section: Performance in Product Cost Controlling