In Profitability Analysis, not only can you valuate your sales quantities using a standard price determined with a standard cost estimate, but you can also valuate them using actual cost estimates from Material Ledger. You can copy the actual cost estimate either as a single total as the average transfer price or in detail as the actual cost component split. Valuation using actual cost estimates occurs periodically after period-end closing has been performed in Material Ledger, thereby determining the actual cost estimate.
In the information system in Profitability Analysis, you can compare the COGM cost components for the standard cost estimate with those for the actual cost estimate. This allows you to analyze where any variances have occurred.
Note
The following section describes the procedure that you follow if you set up valuation using actual cost estimates retrospectively. This is the case, for example, if the application component
Actual Costing/Material Ledger
is installed after
Profitability Analysis
.
Valuation using material cost estimates (for a standard cost estimate) should be set up in Customizing for Profitability Analysis (under
The application component
Actual Costing/Material Ledger
is activated for the relevant
Valuation Areas
(in Customizing under
).
Actual costing
is activated for the relevant valuation areas (in Customizing for
Actual Costing/Material Ledger
under
).
If you want to copy the actual cost estimate in detail to be used as the actual cost component split, the
actual cost component split
must be activated for the relevant valuation areas (in Customizing for
Actual Costing/Material Ledger
under
).
Decide how you would like the actual costing values to be copied and displayed. You have the following options:
You can copy the actual cost estimate as a total (just periodic transfer price) or in detail (periodic transfer price and actual cost component split).
You can overwrite the standard cost estimate with the actual cost estimate or you can create your own value fields for the actual cost estimate (in Customizing for Profitability Analysis under
).These two options can also be applied together. If you copy the actual cost estimate in detail, you can place the periodic transfer price, for example, in a value field of its own, while overwriting the standard cost estimate values with the actual cost component split.
If you copy the actual costs in detail and want to place all values into new value fields, you need to create the following value fields:
A value field for the periodic transfer price
An extra value field for each of the individual cost components (as with the value fields for the standard cost estimates)
If you have created new value fields, include them in the operating concern and then activate the operating concern (in Customizing for Profitability Analysis under
).Create a valuation strategy for valuation using actual cost estimates and activate the
Material Cost Estimate
indicator. Assign this valuation strategy to point of valuation 02 (Periodic Revaluation).
Define a costing key for the actual cost estimate (in Customizing for Profitability Analysis under
). In the costing key, assign the periodic transfer price to the corresponding value field.Assign the costing key for point of valuation 02 to a product, a material type or - using flexible access - to any combination of CO-PA characteristics (using the corresponding activities in Customizing for Profitability Analysis under
.If you want to copy the actual cost component split in detail, assign the individual cost components to the corresponding value fields (in Customizing for Profitability Analysis under
)If required, define a profitability report with which to compare the value fields from the standard cost estimate with those from the actual cost estimate.
Once the costing run for periodic actual costing has been run in Material Ledger (see Process Flow: Periodic Actual Costing ), you can copy the actual cost estimate using periodic valuation for Profitability Analysis (see Periodic Valuation of Actual Data ).