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standard cost estimate...

Former Member
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Dear All,

Pl. tell when to release standard cost estimates??

what is the effect of marking standard cost estimate on inventory valuation??

what is financial impact??

i.e. what are the financial entries to be passed?? or what are the automatically generated??

thanks,

ranjeet

Accepted Solutions (0)

Answers (4)

Answers (4)

former_member196398
Active Contributor
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Ranjeet,

Use transaction CK24 to first Mark the Costing Variant for a company code/period combination. Then use the release functionality in the same transaction to release the estimate.

Once the cost is released, system valuates the existing stock based on the new estimate. Where ever there is difference in cost Inventory Account is credited/debitted and according Price difference account is also debitted/credited.

Regards,

Prasobh

Former Member
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Dear Patil,

First you need to create all the required master data required like material master/BOM/work center/routing.

estimate the cost in CK11n.

When you mark marking(CK24 release) - no effect on valuation. When you mark the materials with cost estimated are grouped for releasing them to material master.

Once you release the marked estimation in CK24, all the materials cost estimation will be eneterd as a new standard cost for the month in question.

All the materaisl will be revaluated as per then new std cost estimation.

please come back if you have any question

rajesha vittal

Former Member
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Yes CK11N and CK24 are involved T Codes. When you release the Standard Cost ,Material master of the concerned material is updated with Standard Cost. The same is used for calculating Planned Cost when an Order is generated.Later on Actual Cost is calculated by the system as and when Order execution and consumption postings takes place. The difference is Variance.

former_member184655
Active Contributor
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Dear Mr.Ranjeet patil,

Generally once the master data for a material is ready,I mean the material

master,BOM,Routing,Over head group, then the Cost estimate & release is

carried out.

T codes for this is CK40N. or Else use CK11N & CK24.

Regards

Mangal