Purpose

In the component Actual Costing/Material Ledger , you can perform multilevel actual costing by plant during a costing run. This allocates the follow-up costs to the semifinished and finished products, and the differences against a material’s preliminary valuation price to the material's inventory and consumption. This is accomplished with the functions of single-level and multilevel price determination. The recalculated prices can then be used for future valuation.

To use this function, choose  Accounting Controlling Product Cost Controlling Actual Costing/Material Ledger Actual Costing Edit Costing Run.

Features

In multilevel actual costing, the system calculates a new valuation price for a material using both the material ledger master data and quantity structure data across all manufacturing levels.

See the following for further information:

Creating a Costing Run

Performing a Selection

Determining the Costing Sequence

Allowing Material Price Determination

Performing Single-Level Material Price Determination

Performing Multilevel Price Determination

Allowing Closing Entries

Performing Closing Entries

Marking Prices for Future Valuation