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Multiplying Standard Values of the Work Center Formula While Calculating Standard Cost Estimate

egebilgin

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2 weeks ago

157

Hello Everyone,

We are using the S4/HANA Public Cloud Edition in our system, and while calculating standard cost estimates, the system multiplies the quantities of the standard values of the activity's work center formula. However, we expect it to only multiply the variable values of the formula. Below is the routing for the material and the master data for the work center formula.

**Standard Values of the Material's Routing:**

For 1 kg of material, we schedule 4 minutes for setup time (Standard Value), 10 minutes for machine time, and 15 minutes for labor time. This means our calculation for a 2.5 kg unit of material should consist of 4 minutes for setup (Standard Value), 25 minutes for machine time, and 37.5 minutes for labor time.

**Work Center Formula:**

Based on our formula and the routing, the quantity calculation for the cost estimate for a 2.5 kg unit of material should be as follows:

4 minutes (Setup time) + [37.5 (Labor Time) x 1 (Operation Quantity) / 1 (Base Quantity) / 1 (Operation Splits)] = 41.5 minutes

**Here is the system's calculation :**

(4 minutes Setup time x 2.5 = 10 minutes, and 15 minutes x 2.5 = 37.5 minutes)

The system divides the calculation based on the standard and variable values of the formula and multiplies both values, while we expect it to only multiply the variable values of the formula.

Additionally, for make-to-order materials, the system calculates the standard cost estimates for the Sales Document correctly. However, we couldn't find any different options for the material cost calculation variant.

OwenLiu

Product and Topic Expert

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2 weeks ago

Hello,

You should set 3 formula, rather then put 3 activities into the same formula.

Best Regards,

Owen

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