Preparation for Material Costing

Use

When you create a material cost estimate, you always specify a costing variant. The costing variant contains all the information needed to execute the material cost estimate. You define and check costing variants in Customizing for Product Cost Planning .

Features

The following graphic gives you an overview of the customizing parameters for material costing .

( )

You enter the following parameters in the costing variant:

Costing type

Specifies the valuation view to be costed
Defines the purpose of costing and the price update
Specifies a partner version to generate a partner cost component split

Valuation variant

Specifies which prices are used to valuate the materials, activity types, processes, subcontracting, and external activities
Specifies the costing sheet ( overhead , overhead key , template )
Price factors for inventory costing

Date control

Controls the validity period of the cost estimate, the quantity structure date, and the valuation date

Quantity structure control (applies only to material cost estimates with quantity structure)

Specifies the master data in Logistics (BOM and routing or master recipe)

Transfer control

Controls how existing cost estimates are used in other cost estimates

Reference variant

Controls how an existing quantity structure that has already been costed is used in the cost estimate

The cost estimate also receives the following information from the costing variant (costing type and valuation variant):

The costing variant also contains additional settings for material costing, as shown below:

( )

You can make settings such as the following:

Whether the costing results can be saved
Whether system messages are collected in a log and saved
Whether additive costs are included in material costing
Which lot size is used in the cost estimate
Whether the current standard cost estimate should be used when materials are costed with errors
Whether users can change the transfer control when they create a cost estimate

Activities

You define the costing variants and the various control keys in Customizing for Product Cost Controlling .

You can check the customizing settings for a costing variant for material costing under Accounting Controlling Product Cost Planning Tools Material Costing Check Costing Variant.

See also:

For more information about the relevant customizing settings, see:

The Implementation Guide (IMG) for Product Cost Controlling
The SAP Library under the following:

Subject	Document
Cost components	Cost Component Split Cost Component Split for Cost of Goods Manufactured and Primary Cost Component Split Transfer Structure for the Primary Cost Component Split Cost Components and Cost Component Structures Cost Component View in Material Costing
Valuation variant	Valuation of the Quantity Structure Overhead Application and Process Costs
Costing type	Costing Sequence and Price Update
Transfer control	Use of Existing Costing Data
Date control	Date Control
Quantity structure control	Quantity Structure Determination
Saving costing data	Saving Material Cost Estimates Logs in Material Costing
Reference variants	Reference Costing
Partner versions	Partner Cost Component Split
Costing versions	Costing Versions
Valuation views	Group Costing