Costing Sequence 
You can create different types of cost estimates at different stages of the product planning and production cycle.
If you are planning a new product for which no master data yet exists in the system, you can plan the costs with a base planning object.
For more information, see Reference and Simulation Costing.
When some of the master data (such as the material master) is created, you can use a material cost estimate without quantity structure to manually plan the cost of goods manufactured and cost of goods sold. You can use the base planning object as a reference.
For more information, see Material Cost Estimate Without Quantity Structure.
When the complete master data including BOMs and routings is available in the system, you can use a material cost estimate with quantity structure. This cost estimate automatically calculates the cost of goods manufactured and cost of goods sold.
For more information, see Material Cost Estimate with Quantity Structure.
Cost Estimates Across the Product Planning and Production Cycle
Features
You can create cost estimates at different times and for different purposes during the course of the fiscal year:
At the beginning of the fiscal year or new season
To plan and simulate costs for new products or services, create a base planning object.
To calculate prices for valuating the materials to be produced, create a standard cost estimate or inventory cost estimate.
During the fiscal year
To get information on how the costs have changed, create a current cost estimate.
To take into account technical changes and their effects on costs, create a modified standard cost estimate.
Before the balance sheet is prepared: to determine the valuation methods for the tax-based and commercial valuation of the materials in stock, create an inventory cost estimate.
The following table gives you an overview of the purpose of the various cost estimates:
Type of Cost Estimate | Purpose |
|---|---|
Base planning object |
|
Standard cost estimate |
|
Modified standard cost estimate |
|
Current cost estimate |
|
Inventory cost estimate |
|
Note
The costing variant is the central control element of a cost estimate. It allows you to specify the quantity structure to be valued and the prices to be used, and thus whether the cost estimate is a standard, modified standard, inventory, or current cost estimate. For more information, see Preparation for Costing: Customizing.