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 Postprocessing of Product Cost Estimates with Unit Costing Locate this document in the navigation structure

Use

You can use a unit cost estimate to adjust the costs in a product cost estimate. For example, you can:

  • Add special direct costs to a product cost estimate

  • Change items in the structure, or add new items

You might want to do this when you cannot (or do not want to) represent all special customer requests in a quantity structure (such as in variant configuration). Unit cost estimates allow you to adjust the costed quantity structure to account for such requirements, while still enjoying the benefits of product costing.

Prerequisites

In Customizing for Product Cost Controlling under Cost Object Controlling → Product Cost by Sales Order → Control of Make-to-Order Production → Check Requirements Classes in the Costing Method , the entry Product costing was made, or no entry was made. If no entry was made, this means that the costing method can be chosen when you create the cost estimate. In this case you can specify the costing method in the sales order item.

In Customizing for Product Cost Controlling under Cost Object Controlling → Product Cost by Sales Order → Preliminary Costing → Costing Sales Order Items with Product Costing → Costing Variants for Product Costing → Check Costing Variants for Product Costing under Postprocessing with Unit Costing , a costing variant has been entered that allows unit costing for a sales document.

In the standard system, the costing variant for product costing is PPC4 and the costing variant for unit costing is PC04 .

If you are using a nonvaluated sales order stock , you must go into Customizing for Product Cost by Sales Order under Preliminary Costing and Order BOM Costing → Product Costing for Sales Order Items / Order BOMs → Costing Variants for Product Costing → Check Costing Variants for Product Costing and turn on the Pass on lot size indicator. Otherwise the overhead charges will not be calculated correctly.

Features

The itemization created by product costing to calculate the overhead is transferred to the unit cost estimate.

The overhead charges of the product cost estimate are transferred to the unit cost estimate as V items.

Postprocessing Product Cost Estimates with Unit Costing (Valuated Sales Order Stock)

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If you are using a valuated sales order stock, the itemization of highest assembly is transferred into the unit cost estimate for postprocessing.

Postprocessing Product Cost Estimates with Unit Costing (Nonvaluated Sales Order Stock)

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With a nonvaluated sales order stock this itemization contains the itemizations of all assemblies controlled by individual requirements, including the overhead. Assemblies from collective requirements are not exploded. This is because typical changes are made at the level of the individual requirements materials, and:

  • Exploding the collective requirements materials would impair system performance.

  • The structure in the unit cost estimate remains relatively straightforward, even in complex quantity structures with mainly collective requirements items.

  • Planned costs and actual costs are more comparable.

Constraints

  • When a product cost estimate is postprocessed with unit costing, the system does not save a cost component split. If the standard price is based on a postprocessed cost estimate, the system cannot transfer a cost component split to CO-PA.

  • In the "large" itemization, the itemizations of the assemblies located lowest in the production structure are shown first. The itemization of the finished product itself is shown at the lowest position in the "large" itemization.

See also:

For more information on postprocessing product cost estimates with unit costing, refer to the section Overhead in Sales-Order-Related Production .

For more information on product costing, refer to the section Product Cost Estimates for Sales Order Items .

For more information on unit costing, refer to the section Unit Cost Estimates for Sales Order Items .