Standard costing & Master receipe........

[Former Member]

Hi there,

As per my knowledge in the material cost estimate with qty structure we calculate the std cost of material based on the BOM & master recipe for a lot size.........

Now if the process/production order is of greater qty & uses a diffrent master recipe/routing then how the std costing is done.......

Secondly at the same time can we maintain the masterial cost estimate with qty structure for diffrent lot size for the same material simultaneously as with the size of the lot the BOM & routing/master recipe to be used changes........

Please enlighten me .........

Thanks

Kaushik

Message was edited by:

Kaushik Choudhury

[former_member196398 · Accepted solution]

Hi Kaushik,

We can carryout Std cost estimate for different Production version combination, but only one can be updated as the standard cost. So in your case update the most likely used production version to update(Costlier).

If due to Process order qty some other Production version is choosen, this is going to be a variance. During settlement it would hit the Price difference account, since we planned to update the high cost related prodction version with Std cost, this would be gain.

Hope this helps....Reward your points,

Regards,

Prasobh

[kaushik_choudhury2 · Accepted solution]

Hi Prasobh Karunakaran ,

Thanks for your inputs........ I got ur point...

I still got some query regarding this... in T-code CK11N we create a material cost estimate with qty structure... and we can create more than estimate for different production versions for same material or at a time only estimate is valid.......

Secondly how do we update the desired one as std cost as per ur suggestion......

Please guide me as I am not aware of the costing part.......

Thanks

Kaushik

[former_member196398 · Accepted solution]

Hi Kaushik,

For a company code only one costing variant can be used to update and release cost estimate. So you need to run the cost estimates for different PV using another Costing variant check the cost details and decide on which PV you want to update.

Run CK11N for the PV with the costing variant which is going to be marked for release in that company code.

PV = Production Version.

Hope this helps...

Regards,

Prasobh

[kaushik_choudhury2 · Accepted solution]

Hi Prasobh Karunakaran ,

What I understood from your post is that to run the cost estimate (CK11N) with differrent cost variant for differrent PV & the one combination that is run last will automatically the valid one for the material .....overwritting the earlier one......

Please correct me if I am understanding in wrong way........

Then at one point of time there will be only one valid material cost estimate for with qty structure for a material ..........

Am I right ??

Thanks

Kaushik

[former_member196398 · Accepted solution]

Hi Kaushik,

You got it right.

Regards,

Prasobh

[Former Member]

In the BOM the header quantity specified is only to show the component to header material ratio.

During standard costing it will only consider this ratio and cost basing on this.

Standard cost will be calculated for your lot size but any ways be on Per Kg or Per Unit of the header material of the BOM.

If you even change the Lot size or the output quantity in the Process order then during the Pre Costing it will take the per Kg/ Per unit cost and calculate.

Hope this helps you.