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cost capture

Former Member
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can any one explain how cost is captured in producing a finished product from raw material step by step please

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Answers (5)

Answers (5)

Former Member
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If the answer is useful reward points to concerned person and close this thread. This will encourage the consultant who are all spending time and answering question to help this forum.



Former Member
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very helpful

Former Member
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Actual cost are calculated when you confirm the order. At the time of confirmation. It takes the relevant costing variant from Order type and does the costing through the elements assigned in valuation variant including the over head cost which is from costing sheet as per the cost components structure which you have assigned in vluation variant.

Generally costs involved are Material cost, Process cost and Over head cost.

The costing variant is ppp2 - Actual

Valuation variant is 007 - actual

Costing element is 07 - Actual.

Process cost are calucuated as per the confirmed time which we are entering during the order confirmation. and they are calcuated as per the activity type and formula assigned in Work center.



Former Member
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you can see it by ur cost sheet there u'll find from where---

1- material cost is to calculated and with what priority.

2- Activity based costing -- what price to pick.

3- External processing -- from where price is to be picked up.

4- Sub- contracting- charges from where it is to be taken.

like this u'll find in valuation variant and its an assignment to costing variant and costing type .

order costing is calculated by--

material cost -- planned and actual--

activity cost -- planned and actual--

and after order confirmation u'll get the variance amount that u have to settle it against the order.

and with the posting period and fiscal year.

this vaiance amount then get settled.

reward points if useful to you.

Active Contributor
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Dear GB,

Product Cost = Materials Cost(Raw Materials Cost +Semi

Finished Materials Cost)+ Activity Cost(Operation Cost)

1.For all your ROH - Raw materials maintain price control

indicator as V and enter the value as Planned Price 1 and

Planned Price Date 1 under Costing 2 View - Planned price


2.For all your Inhouse manufactured semi-Finished(HALB) and

In house manufactured Finished materials(FERT) maintain

price control indicator as S and dont enter any value directly in

accouting view.

3.For activity's cost(Operation Cost) comes via ---> work centre

in which the operation is performed.

4.A cost centre and an activity type where a rate has been

maintained for that cost centre and activity type (T code KP26)

will be linked to the work centre under costing tab.

5.As per the operation time,the cost is getting calculated.

6.Overhead cost is the indirect cost which's spend during


7.So when the cost rollup is taken using T code CK40N (or

else using CK11N estimating & CK24 for marking and release)

all this cost gets added and the materials standard cost is

calculated and same is marked in Costing 2 view under Current

Planned price column.

8.Standard cost estimate is done for FERT materials so that

automatically the system does for Semi-Finished products also.

I hope this will be sufficient for you.