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Function documentationModified Standard Cost Estimates Locate this document in the navigation structure

 

You can use modified standard cost estimates to calculate the cost of goods manufactured of materials during the fiscal year, and to determine changes to the standard cost estimate. You can transfer the results of a modified standard cost estimate to the material master as the planned price.

A modified standard cost estimate values the current quantity structure with the standard price.

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

  • To calculate periodic production variances 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 value work in process

Prerequisites

You create a cost estimate based on a costing variant. For modified standard cost estimates, the costing variant needs to have the following settings:

  • To ensure that the current quantity structure is valued with the planned prices, the valuation variant must specify that the materials are valued with standard prices or that the same prices as in the standard cost estimate are used.

  • If you want to transfer the results of modified standard cost estimates to the material master, the costing type must specify that the costing results can be transferred to the material master as other planned prices.

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

Features

If the basic costing data have changed for technical reasons (for example, changes to the BOM) during the planning period, you can create a modified standard cost estimate. A modified standard cost estimate values the current quantity structure 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 modified standard cost estimates for short-term planning.

Note Note

The standard cost estimate remains the basis for cost and revenue control and for the calculation of total variances.

End of the note.

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