Costing Variants for Product Costing

Here you define how the

cost of goods manufactured for the material ordered in the sales order is calculated if the sales order item is costed with product costing.

These control parameters are linked to a costing variant. You define control parameters both for the selection of BOMs and routings for creating the quantity structure and for the valuation of the quantity structure.

These parameters are defined through the following:

The costing variant contains control parameters for costing. It is specified when product costing is called up from the sales order, and thus represents the link between the application and Customizing. Otherwise you can specify the costing variant in the requirements class.
The costing type specifies, among other things, what reference object (material, order, project, etc.) costing is being carried out on, and whether the reference object can be costed with product costing, unit costing, or both.
The date control ID in product costing determines what dates the user must enter and what dates are proposed as defaults.
The quantity structure determination ID controls how the system looks for valid alternatives to create a quantity structure for product costing using BOMs and routings
The quantity structure determination ID is linked to an order type to define order-type-dependent control parameters for determination of dates in product costing.
The transfer control ID determines how the system is to look for existing costing data in order to use this data in another cost estimate. It determines how the system is to access existing cost estimates for materials in the BOM that either are in the same plant or that have a certain special procurement type.
The valuation variant determines what transfer prices are used for the materials, internal activities and external activities that appear in the cost estimate or order.

Overhead surcharges are calculated in a costing sheet that is proposed in the sales order through the requirements class. This costing sheet is passed on to the subordinate materials in the BOM if the Pass on costing sheet indicator in the costing type is set. Otherwise, the system uses the costing sheet in the valuation variant for overhead calculation.