Update of Planned Costs 
Use
Sales Order Costing and Update of Planned Costs to Sales Order Items
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Update of Planned Costs on the Costing Side
Product Costing
When you create a sales order cost estimate with product costing , the system always updates a cost component split (Display Cost Components). You can choose whether an itemization is saved when you save the cost estimate. This can also be specified as a default value in Customizing for Product Cost by Sales Order in the costing variant .
You should save the itemization for the sales order cost estimate or order BOM cost estimate in the following situations:
When you want to use the sales order cost estimate to valuate the individual requirements material and you want to be able to calculate variances and analyze their origin
When you want to calculate work in process at target costs
When you want to see the scrap variances
The system does not update a cost element itemization on the costing side.
Unit Costing
When you create a sales order cost estimate with unit cost estimate , the system always updates an itemization. However, you cannot calculate work in process at target costs or transaction-based scrap variances on the basis of this itemization because the costs in the itemization of a unit cost estimate are not updated based on the transaction.
The system does not update a cost component split for a unit cost estimate.
The system does not update a cost element itemization on the costing side.
Postprocessing of Product Cost Estimates with Unit Costing
If you modify a product cost estimate with unit costing , the itemization of the product cost estimate is transferred into the unit cost estimate.
The system does not update a cost component split.
The system does not update a cost element itemization on the costing side.
Update of Planned Costs to Sales Order Items
The system updates the planned costs calculated in the sales order cost estimate to the sales order item in the form of cost elements and costing items. A requirement is that the sales order item is flagged as carrying costs and revenues .
The update to the sales order item allows the planned costs to be compared with the actual costs. The planned costs updated on the sales order item can be included in results analysis .
You can view the results of planned cost calculation with Environment → Cost report in sales order or in the information system for Product Cost Controlling.
Update to Sales Order Items with Valuated Sales Order Stock
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If you are using a valuated sales order stock, the planned costs are updated under the cost element for the manufacturing costs of goods sold.
Update of Planned Costs to Sales Order Items with Nonvaluated Sales Order Stock
If you are using a nonvaluated sales order stock, the planned costs are updated under the consumption cost elements.
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Transfer of the Costing Results into the Sales Document as a Condition Value
The costing results of an error-free cost estimate can be transferred into the pricing procedure as a condition value. This value can be:
Used in pricing
In this case, the costing results should be used as a basis for pricing.
Prerequisites:
You have defined a condition type of condition category Q (costing) and entered it in the order type for the sales documents in the condition type line item field.
You have entered this condition type in a pricing procedure and flagged it as not statistical (such as SAP condition type EK01).
You have defined further conditions based on this condition type.
Shown as a statistical comparison value in addition to pricing in Sales and Distribution (SD)
With this procedure, pricing should be market-oriented. However, it should still be possible to compare the prices with the expected costs.
In the pricing procedure in Sales and Distribution , you can also display the value from the cost estimate in addition to the values from pricing. This allows you to compare the material price from pricing with the value from the cost estimate for informational purposes.
Prerequisites:
You have defined a condition type of condition category Q (costing) and entered it in the order type for the sales documents in the condition type line item field.
You have entered this condition type in a pricing procedure and flagged it as statistical (such as SAP condition type EK02).
You can specify the condition type as a default value in the sales document type. If you want to specify the condition type in dependency on the sales document item, enter the condition type in the requirements class.
You can also enter a condition type in the requirements class for showing the fixed costs of the sales order cost estimate. This increases the detail of contribution margin analysis.
To view the value of the cost estimate in the sales document, choose Item → Conditions .
Example
The illustration shows the following cases:
The system selects condition type EK01 for sales document type TA (standard order). This means that the value from the sales order cost estimate goes directly into pricing . A surcharge is calculated from this value and the net value for the sales order item is calculated.
The system selects condition type EK02 for sales document type TA (standard order). Pricing is carried out on the basis of condition type PR00. You see the material price under condition type PR00. You see the value from the sales order cost estimate for informational purposes in the costing sheet under condition type EK02.
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Transfer of Cost Component Split to Profitability Analysis (CO-PA)
You can transfer a cost component split calculated in a sales order cost estimate to Profitability Analysis (CO-PA). This provides a view of the costs in CO-PA by cost component.
A requirement here is that you calculate the planned costs for the sales order cost estimate in a product cost estimate.
If you calculate the planned costs with unit costing, or use unit costing to modify the costs in a product cost estimate, you cannot transfer a cost component split to Profitability Analysis .
You define the transfer by cost component in Customizing for Profitability Analysis under Master Data → Valuation → Product Costing → Define Access to Product Costing with the indicator Transfer sales order cost estimate.
See also:
Calculation of Planned Costs in Product Cost by Sales Order
For information on special processing in standard price calculation with a valuated sales order stock, refer to the following sections:
Valuated Sales Order Stock: Valuation
Standard Price Calculation with a Valuated Sales Order Stock
For information on displaying the planned values in the information system, refer to the documentation Product Cost Controlling Information System .
For information on total variances, refer to the section Types of Variance Calculation .
For information on work in process at target costs, refer to the section Work in Process in Product Cost by Period .
For information on scrap variances, refer to the section Scrap Variances .