Product Cost by Order in SAP S4 Hana Controlling
In this course we will discuss about product cost by order configuration and end to end business process
Description
Product Costing
Product costing is used for the calculation of cost of goods manufactured. COGM is comprised of
· Material Cost
· Activity Cost (Direct Overhead)
· Indirect Overhead Cost
Product Costing is divided into three main phases
· Planning (Standard Cost Estimation)
· Cost Object Controlling
· Material Ledger Actual Costing
Different types of cost estimation can be calculated in product costing like
· Base Planning Object (BPO)
· Cost Estimations without Quantity Structure
· Cost Estimation with Quantity Structure
Quantity structure is comprised of BOM & Routing / Master Recipe. In the Bom we specify the material those will be used for the manufacturing of finished goods. In routing we specify the activities which will be performed on raw material or semi-finished goods to convert them into final product.
Standard Cost Estimation (Planning)
Costing Variant:
In the costing variant we specify the process for the calculation of material cost estimate. Following components are used for creating costing variant.
· Costing Type
In the costing type we specify which type of cost we are calculating. Different types of costing variants can be created to calculate different types of costs like standard cost, quotation cost etc.
· Valuation Variant
In the valuation variant we specify how the cost will be calculated. Followings are the components of valuation variants.
o Material Valuation
o Activity Types / Processes
o Subcontracting
o External Processing
o Overhead
§ Costing Sheet
· Date Control
In date control we specify the validity of the date.
· Quantity Structure Control
In quantity structure control we specify Bom application area and routing selection ID.
· Transfer Control
In the transfer control we specify that the cost of the material will be transferred from single plant or from cross plant too.
· Reference Variant
Cost Object Controlling
In cost controlling we specify
Costing Variant for plan cost
Costing Variant for actual cost
WIP (Result Analysis Key)
Variance (Variance Key)
Settlement
Product Costing Scenarios
Product Cost by Order
o Production Order
o Process Order
o CO Order
Product Cost by Period
Sales Order Costing
Costing Sheet
Costing sheet is used to allocate the overheads from cost center to the product cost.
Cost Component Structure
Cost component structure will display the breakup of the cost how the total cost will be calculated?
It will be comprised of material cost, activity cost & indirect overhead cost.
What You Will Learn!
- Product Cost by Order for the Discrete Manufacturing Scenario
- End to End Product Costing Configuration and processes
- Variance Calculation, WIP Calculation
- Variance Settlement Postings
Who Should Attend!
- SAP S4 Hana Finance Consultant