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Function documentationStandard Cost Estimates Locate this document in the navigation structure

 

You normally create a standard cost estimate for a material at the beginning of a fiscal year or new season. The standard price established by the standard cost estimate then remains valid for the entire year or season.

You should avoid changing the standard cost estimate during this time, as standard costs are intended to stay constant and not be influenced by price fluctuations or changes in the production structure during the planning period.

You value the planned quantity structure of a standard cost estimate with standard prices. A standard cost estimate for a material is not associated with an order or production version.

Prerequisites

Cost estimates are based on a costing variant. For standard cost estimates, the costing variant contains the following settings:

  • The costing type specifies that the costing results can be updated to the material master as the standard price.

  • The valuation variant specifies that the materials are valuated at the standard price or planned price.

    For more information on the settings in the costing variant, see Preparation for Costing: Customizing.

For materials involved in repetitive manufacturing, you need to make the following settings in the MRP view of the material master:

  • Set the Repetitive mfg indicator

  • Enter a repetitive manufacturing profile

Features

The standard cost estimate calculates a standard price for materials with price control S:

  • When you mark the standard cost estimate, the result of the cost estimate is written to the costing view of the material master record as the future standard price. You can use this price to valuate a material component in the cost estimate.

  • When you release the standard cost estimate, the result of the standard cost estimate is written to the material master record as the current standard price. This price is then used for valuation in Financial Accounting until the next time the standard cost estimate is released.

  • From this period onward, all transactions involving products produced in-house are valuated in Logistics using the standard price. When a material with standard price control is transferred to the warehouse, for example, inventories of this material are valued with the standard price. This provisional valuation can be corrected later by settling the actual costs incurred during the period.

    Note Note

    Valuation at standard prices calculated in the standard cost estimate applies only to materials with price control S.

    End of the note.

You can also use standard cost estimates to calculate the following data for each production order or run schedule header (make-to-stock production) at the end of the accounting period:

  • Variances for the actual costs of a product

  • Prices for confirmed scrap quantities

  • Target costs for valuating the work in process based on the confirmed quantities

More Information

For more information on the costing results, see the following:

For more information on creating cost estimates, see Cost Estimate with Quantity Structure: Process Flow.

For more information on standard cost estimates in connection with a valuated sales order stock, see the following documents in the SAP Library under Cost Object Controlling (CO-PC-OBJ):

For more information on calculating material prices when using the Actual Costing/Material Ledger component, see the following documents in the SAP Library under Actual Costing/Material Ledger (CO-PC-ACT):

For more information on standard prices for material valuation, see the following documents in the SAP Library under MM Material Valuation:

For more information on marking and releasing standard cost estimates, see: