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Costing Sheet

Former Member
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Hi PP Experts,

In the discrete manufacturing scenario, with respect to costing can anyone please guide me as to what im suppose to do step by step.

Any suggestions will be rewarded.



Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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You have assign the settlement rule to order types.

Planned and actual costing variant in order type dependent parameters.

Create BOM and routing for the costing relevent (depend on usages and released general).

The above settings from PP side. Apart from this you need to sit with CO persons to define the costs picking strategy in costing sheet (valuation varaint). Creating cost centers and sctivity types etc. Costing is the integration part between PP-CO.



Former Member
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Hi Tajuddin,

I have done most of the things, but im finding Costing sheet bit confusing.

Can u pls guide me on this...

Also do i have to consider wage in costing sheet? because this will be tracked through Workcenterr and activity type?am i right!!pls correct me sir...



Former Member
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The costing sheet combines all parts of the overhead costing, and determines the rules for calculating the values to be posted. Wages costs will be define in KP26 transaction for the operation activities and valuation variant will have kwy to picked up these wages from routings.

In costing sheet you can also includes process costs like electricity, transporting and costs for PRTs used in process.



Former Member
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HI Vinod,

The costing sheet requires 3 parts:

<b>Base</b>: What will you base the calculation on?

We use the costing sheet for applying Labour overhead, so the BASE is defined by the cost elements for the Activity types. If the Activity type for Assembly is 123456, then the component "Base" is defined as 123456

<b>Overhead rate,</b> The overhead rate is defined by a "dependency" pick the one that fits your use, for manufacturing we use D020 - Overhead Type and Plant. Assign the validity period (we use the fiscal year) to the Percentage Rate to be used. When adding the Overhead rate to the costing sheet - specify the row number of the BASE.

<b>NOTE</b>: Overhead type - always create and type 1 and type 2 - Plan will be used for cost estimates actual will be used for costing orders.

<b>Credit Key</b> - Define this with the cost element and cost center that the Credit will post to. The debit will be the order as a cost collector.

Hope this helps.


Answers (3)

Answers (3)

Active Contributor
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Hi ,

Also go through this,

Overhead Cost

Overhead costs are costs which can be assigned only indirectly to the production order, such as electricity costs or general storage costs.

Overhead costs are assigned to the production order via overhead surcharges. They are updated in the order under the cost elements defined in the costing sheet.

A costing variant is defined in customizing per order type and plant. The costing variant refers to a costing sheet. The costing sheet determines what overhead surcharges are assigned to the order.

The costing sheet specifies:

• Which direct costs to apply surcharges to

• Under which conditions an overhead is calculated

• How high, depending on these conditions, the surcharge percentage is

• Which object (for example, a cost center) is credited under which cost element during actual postings



Former Member
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Every cost estimate we create is based on the costing variant.

In the costing variant we define the control parameters and settings for costing

Settings contains info such as prices that will be used to cost the materials and activities

Control parameters are used for the automatic determination of of qty str ie Bom and Routing

Every costing variant contains a valuation variant and a costing type , date control , qty str control.

Valuation variant:

Valuation variant defines the price with which the material and activities are valuated

determines 1.which price is taken from material masterrecord to calculate the material cost


which price is taken from cost center accounting to calculate the costs for internal activities

3. which price is taken from purchasing info rec to calculate the the costs for ext activities / subcontracting

4. which costing sheet is used to calculate the over head costs

Costing type:

costing type defines the valuation view to be costed and defines the purpose of costing.

Date control :

controls the validity of the cost estimste , qty str date.

Valuation class:

For material costing the valuation class controls the cost element to which the planned cost of the material are assigned and the cost element under which the actual costs are updated when the material produced is delivered to stock

Valuation category:

specified the criteria according to which partial stocks are distinguished from one another

Price control indicator:

the price control indicator specifies whether the stock of the material is valuated with standard price or moving avg price

costing sheet:

The costing sheet links all the functions for overhead calculation.

In the costing sheet we determine the following

1.The direct costs to which the over head is applied

2.The condition under which the over head is applied

3.Whether the over head is applied as a percentage basis or on a qty basis

4.The amt of overhead percentage

5.The validity period of the over head

6.Which object is credited ( order , cost center) and which cost element in the case of actual posting

We enter the costing sheet in the valuation variant in customising



Former Member
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Any suggestions Pls