cancel
Showing results for 
Search instead for 
Did you mean: 

Standard cost change

Former Member
0 Kudos

Hi,

During costing run, there is change in standard cost, system update this cost, How it is updated.

It is understand that the moving price is updated from GR/IR Clearance.

focus on standard cost.

Regards,

Deven

Accepted Solutions (1)

Accepted Solutions (1)

Anupam1143
Active Contributor
0 Kudos

HI

Either standard cost is changed by releasing the cost estimate for the period by t code CK24 or manually by t code MR21

this will update your standard price in material master accounting 1 view

Hope it will help u

regards

Anupam Sharma

Answers (2)

Answers (2)

former_member184655
Active Contributor
0 Kudos

Dear Deven,

while taking the cost rollup the system consider's the latest BOM and the routing as per the date's defined for the costing in

CK11N or CK40N.

Once after the cost estimate is released the new price gets stamped in the costing 2 view of the material master under current

cost column and the stocks gets valuated using this price.

Or else you can use MR21 for price change.

Regards

Mangalraj.S

Former Member
0 Kudos

Hi,

As we enter the standard cost for material master & also activity values in routing at initial stage , then is it necessary to run cost estimate ?.

OR Is it updated through production order confirmation ?

Pl. elaborate the necessity of cost run.

Regards,

Deven

Former Member
0 Kudos

Hi,

As we enter the standard cost for material master & also activity values in routing at initial stage , then is it necessary to run cost estimate ?.

OR Is it updated through production order confirmation ?

Pl. elaborate the necessity of cost run.

Regards,

Deven

Anupam1143
Active Contributor
0 Kudos

HI

If you want to change the activity rates then use KP26 to change the rates of activity and the standard rate of in house produced goods will be changed by cost estimates or T code MR21

since it is on standard price control the price is not updated while doing confirmation of sfg/fg

Regards

Anupam Sharma

Former Member
0 Kudos

Hi,

As u mention once the standard price entered it is not updated through production order confirmation.

Then how it gets revised or system planned price for the future.

pl. focus

Regards,

Deven

Former Member
0 Kudos

Hi Deven,

I was also in the same confusion in last few month,

See,

There are two Price in SAP,

1) Moving Average (MVP) , 2) Standard Price.

SAP recommend (MVP) for Raw material and other Consumables and Standard Price for Semi Finished and Finished.

Because finished Product with MVP has no control on your Price, it always Fluctuates.

Also SAP Does not always recommend to use MR21.

To have control on our finished product companies fix STD Price.

Say i make Refined oil at 50 rs per KG.

I know Approximate quantity of R/w and other consumable for Preparing 1 Kg oil

Say my components are

1) Crude oil 2 kg @ 10 rs kg = 20 rs MVP

2) Hexane 3 KG

3) Sulphuric acid, Bleching powder, degum powder 3 kg each.

This is where my BOM is Defined.

Now labour charge is 10 /hr , electricity 2000 kw, OVHD 2000 rs.

This is where i prepare Routing, Now i club BOM and Routing to Production Version.

My Plan is fix, it my rarely change .

Now when i run CK 11n System fetch data from Prd Version, Calculate STD price.

_____

If Suppose u say Crude oil heaxane rate per KG has changed, say Crude is nw 30 rs /kg. or my labour hr has increased,

Since my FM is std , Now i dont want to change using MR21, so nw change BOM routing to Future plan and run CK11n mark and

release for future price.

Sorry for all if any error, if so correct me

This may clear ur Doubt Deven.

Regards,

Pavanidlur

As we Use Standard for FM/SFM ,

Former Member
0 Kudos

Hi PAVANIDLUR,

I appreciates your comments,

pl. clear my doubts that whether we initially directly not enter the standard price at material master or else standard price is updated from routin & BOM after confirmation of production order ?

regards,

Deven

Former Member
0 Kudos

Hi,

Using t-code CK11, you can run the standard cost estimate. The system will explode the BOM and it will calculate the material costs and exploding the routing based on the standard values and the activity rate it will calculate the activity costs. Then using t-code CK24 we need to mark up this new standard cost estimate price and we need to release. While releasing the new standard price will be updated in the material master.

Regards,

V. Suresh