Define Costing Types

In this step you establish the technical attributes of the cost estimate.

In the costing type , you define the purpose of a material cost estimate by specifying which field in the material master record the costing results can be transferred to.

Update Cost estimate
Standard price
Standard cost estimate (01)
Tax price Inventory cost estimate
Commercial price Inventory cost estimate
Other price except std price Modified standard cost estimate or
Current cost estimate
No update Any cost estimate

Note the following when defining the parameters for the standard cost estimate:

Note the following when defining the parameters for inventory costing:

In the commercial and tax cost estimate, the system checks whether the current valuation price (according to the price control of the material) is less than the tax price or commercial price. If the current valuation price is lower, the system updates that price and not the value calculated in the inventory cost estimate as the tax or commercial price.
If you want to transfer the results of the inventory cost estimate to the material master independently of the lowest-value determination, you must set the indicator Prices other than standard price in the costing type. You can still transfer the results of the cost estimate to the material master as the tax price or commercial price.

The costing type also establishes the following:

This requires that you enter a cost component view. The cost component view specifies which part of the cost components are included in inventory valuation, commercial physical inventory valuation, and tax-based physical inventory valuation. For each cost component view, the system generates an itemization listing the individual items of the cost estimate.
For example, if the cost estimate included semifinished products whose costs contain the cost of goods manufactured, sales and administration costs and so forth, you can only calculate the material overhead on the basis of the cost of goods manufactured for the semifinished product by specifying cost component view "01" (cost of goods manufactured).
You have the following options:
For the standard cost estimate, you must update the automatic cost estimate with the With start of period indicator. This ensures that the results of the standard cost estimate can be used as the standard price for that period.
For the other costing types, you can update the costing results with the With date indicator, for example. In this case the current date becomes part of the key.

For cost estimates that are not a standard cost estimate, you can also establish the following:

If you want to collect the activity quantities for the confirmation using the version-specific cost estimate for the run schedule header rather than the standard cost estimate for the material being manufactured, you must do the following:

If you are using multiple valuation in group costing, you can specify which valuation view and partner version the costing type refers to.


If you want to define your own cost component views, process the following step:

If you are using the function of mulitple valuation, you must do the following:

Standard settings

The standard system contains the following predefined costing types:

Costing type Purpose
01 Standard cost estimate
10 Inventory cost estimate (tax-based)
11 Inventory cost estimate (commercial)
12 Modified stanard cost estimate
13 Current cost estimate
19 Version-specific cost estimate
(repetitive manufacturing)


1. Enter an alphanumerical key and a name for the new costing type.
Numerical keys will be rejected because they are reserved for the standard settings.
2. Specify a calculation base.
3. Specify whether and how the date for cost estimates with and without quantity structure is saved.
4. Specify whether and how the costing results should be updated in the material master record.
5. Specify the following if applicable:

Further notes

For more information on the use of cost estimates in repetitive manufacturing, see the following section:
Check costing variants for run schedule headers .