Standard Cost Esimate in Product Costing by Order

[Former Member]

Dear Experts,

we are using the product costing by order scenario and i want to know whether we need to carry out cost estimate creation, marking and releasing for the material even in this scenario. similar to that of make to stock scenario.

your help will be realy appreciated.

Best Regards,

[former_member418516 · Accepted solution]

Hi,

It depends on the type of sales order scenario. If the material is manufactured both for the make-to-stock-inventory and for the sales order stock in sales order based mass production then yes you need to run standard cost estimate. However, if the material is manufactured specially for a sales order you do not need to run standard cost estimate as cost estimate is run for a sales order item.

Sanjay W.

[Former Member · Accepted solution]

Thanks,

but in our organiszation we are using moving average prices for all the material

Best Regards

Ravi Reddy

[Former Member]

Yes , you calculate the cost estimate for the standard cost for that material . You have an option either you calculate the standard cost using SAP cost run or you simply maintain the value ( calculated outside SAP) via MR21 transaction.

[Former Member]

thanks for your quick response. is that a mandatory step to create, mark and release a cost estimate in product costing by order scenario?

Regards

[Former Member]

We have a make-to-order (sales orders) scenario where standard cost estimate is updated in material master as standard price for finished products. We use CK40N to update the price.

We also have a make-to-order ( projects) where we do run standard cost estimate in CO version 1 but do not update standard price in material master. The standard price is zero in material master , before GR from production.

In a make-to-order scenario , you can choose to implement to update or not update standard price in material master.

Hope this helps you.

rgds,

Rajesh