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FG GR value from unit costing of material assigned to activity

soubhagya_rout
Participant
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Hi Guys,

This is the 1st time, I am working with MTO scenario. I am stuck in a situation where we want to determine price of FG from the unit costing of project during GR of the production order.

Let me explain you what we have done so far.

1) After creation of project, WBS, Network and activity, we assign FG to the activity through which we will generate planned order for production and PR for all the dependent requirements.

2) Then we do the unit costing of the FG that we have assigned to that activity.

3) The standard price of FG in the material master is maintained as Rs. 1.

4) So after unit costing, the FG price should have been updated as per the unit costing value but here is the problem, the value of FG is still same Rs. 1.

5) we are using the standard SAP costing variant PS04 for unit costing of material. The strategy sequence is also same standard as given by SAP.

6) Earlier we tried to do costing through automatic network costing through costing variant PS02 but unsuccessful.

Please let me know what I am missing or where I am doing wrong.

Thanks and Regards,

BBR

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Answers (2)

Answers (2)

kenmelching
Active Contributor
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What are the settings on the FG Material Master in regards to Costing View 1 and 2.  Are you using Standard or Moving Average cost?  And look at the MRP settings for individual/collective indicator.

Since you have a universal BOM and a routing (I assume) on the FG you are doing Product Costing and not Unit Costing.

Since you are using a Production Order the costs will not post to the WBS until you GI the FG to the WBS.  What posts to the WBS is controlled by the material master.

soubhagya_rout
Participant
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Planned price of the FG maintained as 0 and the standard price as 1.

We are using standard cost.

MRP setting is at both individual and collective indicator.

We have material BOM with production usage but as it did not work out, I tried with universal usage.

We are using production order with account assignment to WBS element, so when we do the GR for FG in production order , the FG hits the inventory with the project stock  with wbs assigned. And the here the value it takes from the costing variant maintained in the production order.

kenmelching
Active Contributor
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Since you are using standard cost that is all that matters to the WBS.  When you post the Goods Issue to the WBS it will post at the standard cost.  When you post GR of the production order it posts standard cost into inventory and the difference between the actual costs on the production order and the standard cost is posted to a variance account (s).

You can use product costing to use a costing variant to calculate the standard cost of a material.

soubhagya_rout
Participant
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Through which T code we can do product costing with reference to WBS, so that it will use the costing variant maintained in Network.

kenmelching
Active Contributor
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Product Costing and Network Costing are 2 different things.  You use Product Costing, CK11N, if you have BOMs and Routings and are using Production Orders to produce your inventory.  You use Network Costing when you do not have production orders and the work to make something is specified on network activities with components attached.

sanjeevc
Active Contributor
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Hello Rout,

issue is related to product costing so can you please check with FICO consultant why material cost is coming same even BOM and routing be used for getting FG.

Regards,

Sanjeev

soubhagya_rout
Participant
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Hi Sanjeev,

Thanks for the reply. Right now I can not get any help from our CO consultant because of some reason. but prior to that can you let me know where we have to assign BOM and routing in project builder.

As from your reply, I think there is something is missing from my end.

What I have done, maintained the materials which are in bom in the material component through unit costing of material component but I have not assigned any BOm / routing.

Do i have to run any cost estimate like in sale order costing?

Thanks & regards,

BBR

sanjeevc
Active Contributor
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see you just let me know how FC is coming in project stock?

a side you said like FG have it's price Rs1 only then it show 1 Rs which is right here what you expect extra cost on that basis asked like how FG is coming in project stock FG should make by some RM and BOP and SFB like that in that case price should be more then 1 Rs. but this is not happening in your case right?

so i suggested you like how originate the cost in system which come under CO like product costing.

Regards,
Sanjeev

soubhagya_rout
Participant
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Hi Sanjeev,

I understand the BOM part. We have maintained BOM of that FG with usage universal. So there is no problem. We are not even using BOM transfer through CN33. So during unit costing of material that is assigned to activity, we have to manually assign all the RMs in unit costing of material.

FG comes to project stock during final activity confirmation in production order. Earlier we are using PS in this process, as per the earlier process we were running sales order costing and the FG GR value takes from the sale order costing.

Now we want do to unit costing and that value get updated in FG value at the time of GR in production order.

If you follow this link of SAP help, it says these are strategy sequence according to which the 1st GR of FG takes value.

SAP Online Help

The strategies are :

  1. It uses the standard price from the individual stock segment for the combination of WBS element, plant and material. The system determines the standard price for the individual stock segment during the first goods receipt.
  2. If applicable, it uses the valuation from User-Exit COPCP002.
  3. If a sales order item is account assigned to the WBS element and there is a product costing for the sales order item, the system looks for the corresponding costing item and uses this for the valuation, if the costing allows this. Only those costs are copied that are relevant for stock valuation.
  4. It uses the value from the unit costing for the material component in the network or from the Seiban product costing. You must have previously activated Seiban product costing with Transaction CKW4.
  5. The system uses the production order costing for material, plant and WBS element. The production order must have been costed without any errors.
  6. The system uses the price from the material master.

Here we want to use the 4th strategy. But the system picks the GR value as per the costing variants maintained in the production order (i.e. 5th strategy).

So my problem is how to determine price of FG through unit costing of material.

Thanks & Regards,

BBR

sanjeevc
Active Contributor
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Hi,

what ever cost variant you have assign system will behave accordingly as valuation variant work behind cost variant so depend on valuation parameter what we have configured cost will come accordingly.

as far as i know cost alway come via what we have configured in valuation variant assign to cost variant.

are you referring plant cost by network activity is not adding in plan cost?

Regards,
Sanjeev

soubhagya_rout
Participant
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Hi,

I do not mean plant cost, its planned cost of FG material which needs to be updated by the unit costing of material component in PS.

So that on the basis of costing budget will be approved and then further when we will take mrp of project/wbs, it will create planned order for the FG and PR for all the RMs in the BOM of that FG.

The planned order will then convert to production order and for RM the usual procurement process we will follow like pr->po->gr->gi.

Then when we will confirm the operations in the production order, as we have assigned auto gr in the final operation. it will create FG in wbs stock.

Now the question is this at which value GR of FG will be done. The requirement is that the value should come from the unit costing of project but here it takes value from production order as per costing variant that we have maintained in the production order rather than unit costing value of project.

Hope I have put my question clearly.

Thanks and regards,

BBR

sanjeevc
Active Contributor
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Hi Rout,

I am also referring plan cost so you have to check opsv setting whether it's marked tick box for category 20.

after this configuration plan cost would be occurs to unit cost such unit cost is nothing by done by CJ40 transaction based on this we required budget.

Regards,

Sanjeev

soubhagya_rout
Participant
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Hi Sanjeev,

Order value update is already there and what i understand from your reply, you want to say the budget is not related to plan cost in CJ40 transaction.

Please do not go in that direction. I know there is no relation from SAP point of view but from logical point of view, we want to do the budgeting on the basis of that costing. Anyway that's not point here.

Any help from anyone would be really appreciated.

Thanks & regards,

BBR