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Regarding PP integration with Costing

Former Member
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Hi Everybody,

Can anybody explain how and which places PP is integrated with Costing? I mean i like to get an overall idea, how costing is done for prod.orders and in other areas related to PP? What important points a PP person should be aware of interms of Costing?

1. One is when we excute prod.orders, assembly fee will be captured in cost centers defined in work centers, am i right?

2. How do they capture the costs of consumed components? and how do they settle the prod. orders?

can anybody explain with a simple example and with different scenarios?

Thanks Everybody,

Kanth

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Answers (1)

Answers (1)

Former Member
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Hi Kanth,

With PP, FI/CO is integrated with product costing. There is valuation variant via costing variant and costing sheet to be assigned to order type to carry out the costing for a product. Valuation class and standard price need to be maintain at material level for the planned cost.

We need to maintain correct BOM and routing along with activities and formulas to capture the cost correctly.

Cosumed components cost will be capture with movement types (goods issues) to order during confirmation. Settlement will be done through CO88 (towards header of the order OR to the Header material accounts). This will done by costind persons our involment is only when there is variances between planned cost to actual cost.

Please rewards your points if helpful.

Regards

TAJUDDIN

Former Member
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Hi Tajuddin,

Can you explain with a simple example?

I did't find any place where costing sheet is minatined for order type?

Thank you for ur help,

kanth

Former Member
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Hello Kanth,

Costing sheet is maintained in the costing variant via vluation variant which is assigned to the order type. It will be mantained in the Overhead tab of the valuation variant. Transaction OPL1

Rewrads your points if helpful.

Regards

TAJUDDIN