Daily Production Costs - SAP Documentation

Use

This function enables short-term cost controlling for the product cost collectors used in backflushes in the Advanced Planner and Optimizer (APO) independently of the normal period-end closing process. For example, you can analyze your costs on a daily, weekly, or monthly basis. This means that key figures such as target, plan, and actual values, variances, and scrap values are available for short-term decision support.

This function supports the Business Information Warehouse (BW) reporting tool. You can analyze the results in BW queries.

Integration

You are controlling your production costs in a make-to-stock environment or in a mass production environment based on sales orders, and are using the Advanced Planner and Optimizer 3.1.

You are using a product cost collector as the cost object for the APO production backflush. The Daily Production Costs function can only be used in this scenario for product cost collectors with quantity-based valuation.

The use of Daily Production Costs requires that data be extracted from the automotive system and stored in the Business Information Warehouse (BW). You extract the data from the Discrete Industries system, and the BW saves them in the InfoCube Goods Issues (0AU_PPC2). There are separate queries for the Daily Production Costs function.

For more information on this InfoCube and on the queries, refer to the SAP Library for the Business Information Warehouse.

Prerequisites

You are using APO 3.1.

If you want to use queries supplied by SAP, you must have BW Release 3.0A.

Note Note

If you want to define your own queries, you can use the Business Information Warehouse from BW Release 2.0B onwards.

End of the note.

Depending on the desired reporting time frame, data is extracted into the BW daily, weekly, or monthly.

Note Note

You can only execute reports in Daily Production Costs for the time since you installed your BW system. You cannot analyze time frames that lie before the date of the first data extraction from your Discrete Industries system into BW.

End of the note.

If you only want to analyze unvaluated quantities (for example, for performance reasons), you can turn on the Only quantities indicator in Customizing under Production Repetitive Manufacturing Production Backflush Settings for BW Transfer .

Features

New queries are available for analyzing costs on a daily, weekly, or monthly basis. These analyses (such as target/actual comparisons) enable you to react quickly in cases of variances in the quantities of components or activities consumed.

Caution Caution

All key figures (actual costs, target costs, variances, scrap, and work in process) are made available after a simplified valuation process that differs from the valuation basis of the normal period-end closing process in the Discrete Industries system. This means that the key figures of Daily Production Costs cannot be compared with the key figures of the standard reports.

End of the caution.

In the Daily Production Costs function, the system calculates the following key figures:

Actual quantities (actual quantities of components and activities consumed at reporting points), variance quantities, WIP quantities, target quantities, and scrap quantities
The quantities are valuated using a simplified principle. On this basis, the system calculates the actual costs, target costs, variances, actual scrap, and WIP.

Note Note

The valuation variant used to valuate the quantities in Daily Production Costs is the costing variant planned of the product cost collector. For performance reasons, this valuation variant should be the same as the valuation variant in goods receipt costing. This valuation variant is taken from the requirements class.

End of the note.

Calculation of the key figures :

Variances	Variance quantities (actual quantities – target quantities) x Price based on simplified valuation
Approximation for actual costs	Actual quantity (quantity actually entered) x Price based on simplified valuation
Approximation for WIP	WIP quantities x Price based on simplified valuation. The change in the work in process is calculated.
Scrap	Scrap quantity x Price based on simplified valuation
Target costs	Actual costs – Variances

The following functions in the standard system are not supported in this scenario:

Overhead rates on actual costs and revaluation at actual costs
Price variances
Template allocation

See also:

For an overview of the entire process from confirmation to period-end closing, refer to the section Product Cost Controlling with Sales-Order-Related and Make-to-Stock Production with Reporting Points .