After Reading this Article, you will get the answers to the following Questions,
1- How to Configure and Execute KKPAN - Material Cost Estimate without Quantity Structure.
2- How to Configure/ Use KEPC in Costing Based CO-PA.
3- CO-PA Valuation for FERT Materials without Std. Cost Estimate
4- Solution to Message no. KE350 . Valuation with material cost estimate: error with product “XXXXXXXX”.
Normally, We ran standard cost estimate with quantity for Material type FERT. Then for CO-PA Valuation for Material Cost Estimates, we configure KE4J & KE4R, to transfer the Cost Component break up to CO-PA.
Below is the IMG Path for reference,
To transfer Cost Component Split for all FERT Material, to analyze Product Wise Profitability.
Use T-Code: KE4J
If you want to Transfer Cost Component Product/ Material Number Wise,
Use T-Code: KE4H
Now, we have to assign all the Cost Components to CO-PA Value Fields.
Use T-Code: KE4R
However, for some FERT materials, we don’t execute standard cost estimate and insert standard cost to material master directly.
Example, In my case, for few FERT Materials whose Inventory are build through Material Transfer (Movt Type. 309), we don't ran Std. Cost Estimate.
In this case, the standard cost estimate on Material Master cannot be transferred, since its not executed in System. That why system generates error,
Valuation with material cost estimate: error with product “XXXXXXXX”
Message no. KE350
Below are the few solutions,
1- Execute the Standard Cost Estimate without Quantity Structure.
We can run standard cost estimate without quantity i-e: without BOM and Routing for Materials. We will input the cost to each cost element.
Use T-Code: KKPAN
Press ENTER and DEFAULT VALUES.
Now in screen shot below, are the list of Item Categories you can use to calculate Unit Cost Estimate of Materials
These Item Categories comprises of Materials, Activity, and other Costs that you need to assign to Material Standard Cost Calculation.
In our case we can use only two Item Categories (Highlighted with Yellow) to create Unit Cost Estimate for Materials
Now, select the item Category as per your requirement. In this example, the Unit Cost Estimate consists of four Materials and three Activities, as shown in screen shot below.
Now focus on the Red Highlighted Column of below figure, where I assigned RAW and SFG Materials to Unit Cost Estimate. Here I maintained the following,
Category: M Material
Resource: Material Number
Plant/Act: Plant No
Quantity: No in KG/ PCs / EA.
Unit: KG/ PCs / EA
Now focus towards the Blue Highlighted Column of below figure, where I assigned Activity Type i-e; MAC, LAB and FOH to Unit Cost Estimate. Here I maintained the following,
Category: E Internal Activity
Resource: Prod Cost Center
Plant/Act: Activity Type
Quantity: No of Hours Req.
Last we see the Green Highlighted Column, in which the data gets Automatically picked based on following settings,
Category M – Material
-Rate from Material Master.
-Consumption Account from OBYC settings for Material.
Category E – Internal Activity
-Activity Prices from KP26 settings.
-Cost Elements from Activity Master Data settings.
SAVE and come BACK.
Execute T-Code: CK24
Now, we will Mark and Release the Cost Estimate for this Material and check the Standard Cost for material in MM03 Material Master and CK13N.