SAP Public Cloud | Cost Estimation by Batch

[hanna_tran]

Dear Experts,

My client (semiconductor manufacturing) is planning to use SAP S/4HANA Cloud Public Edition SAP S/4HANA Public Cloud. There is a requirement where they want to analyse costs and manage price according to batches.

This case applies to Make to Stock (MTS) process.

For Example if I have 1 Semi-Finished Goods (SFG) A with two batches A.1, A.2. Each batch is manufactured with a different cost, due to batch A.2 consumed more raw materials/overhead costs than planned. 

Next these two batches A.1, A.2 are consumed in Production Orders to produce Finished-Goods (FG). Because these 2 SFG batches have different costs, the FG manufactured by these 2 batches have different costs as well.

And they want these costs to be reflected when they choose the FG to sell to customers - that is - when they choose the FG to sell, they can choose batches in this FG, with price of each batch referenced correctly from costs collected to manufacture them.

Currently I know if we use standard price for FG, the cost for all Production Orders will be collected in Pricediff, then distributed all to inventory/COGS based on quantity. All batches of 1 FG will have same price.

Is there a way to do this in SAP S/4HANA Cloud Public? I tried to use this case Solved: Batch wise costing SAP public cloud - SAP Community but the links for costing don't work, and I know SAP has removed standard cost estimation by split valuation. Mixed costing does not work as well, since all batches they use are manufacturing batches.

Kindly enlighten me on this issue.

[Chuma]

Hello @hanna_tran,

Thank you for your follow-up and questions,

You asked, “We can’t create a standard cost per valuation type because CK11N lost the field.”
CK11N no longer requires a valuation type input. In S/4HANA Cloud, costs are generated and released using Fiori costing apps instead of CK11N. The cost estimates can now be created based on valuation types for split-valuated materials; this feature has been transferred to Fiori for both with and without quantity-structure processes. You then release the price per valuation type in Manage Material Valuations.  SAP Help-Material Cost Estimate Without Quantity Structure

And your second question: “Can we control costs from production into valuation types and through to GI?”
Yes, with the right setup:

Use Split Valuation (Single Batch Valuation) for SFG and FG, ensuring each batch has its own valuation type. This allows inventory values and COGS to vary by batch. SAP Help-Production Accounting Split Valuation

Run, mark, or release a cost estimate for each valuation type for the SFG and FG. The standard price is set at the valuation-type level, so the planned costs of SFG batches are included in the FG valuation type. At goods issue, COGS posts using the FG batch valuation type. SAP Help-Material Cost Estimate Without Quantity Structure

If you also want period-end “actuals” by batch, activate Actual Costing (scope item 33Q) so the Material Ledger revalues inventory and consumption per valuation type at month-end. Actual Costing (33Q)

With kind regards

Chuma

[LucyLu]

Hi,

You may need use the valuation type for different material utilization purposes.

Please refer to the following blog for Split Valuation in Inventory Management,

Split Valuation in Inventory Management on SAP S/4... - SAP Community

Hope it helps.

Kind Regards,

Lucy

[hanna_tran]

Hi, thank you for your suggestion. However, if we use split valuation, we cannot create standard cost estimate for these materials per valuation type (as I see SAP has removed this function in CK11N).

These are semi-finished goods though, is it possible to control cost from production to these valuation types, then to goods issue for selling?