Reference Costing

Description

If you want to create material cost estimates or costing runs based on the same quantity structure, you can reference existing cost estimates. This enables you to make constructive comparisons while at the same time improve performance.

To do this, you can define in Customizing for Product Cost Planning a reference variant and enter this in the costing variant . The reference variant enables you to specify whether certain items should be transferred as already valuated or whether they should be revaluated.

Examples

For percentage overhead costing of materials, it is necessary to use the reference variant in order to compare the results. This enables you to receive valuations that differ only in the transfer prices. As a result, you improve performance, because the system does not have to determine the quantity structure again.

Change system parameters in customizing

In Customizing for Product Cost Controlling, create the reference variant and enter it in the costing variant:

Define reference variants

Define costing variants

Further notes

Further information on creating reference variants can be found in the Implementation Guide for Product Cost Controlling.