Product Cost by Period

Product Cost by Period

You can use the Product Cost by Period component:

You can structure the cost object hierarchies by product group or by responsibility area.

Production Cost Collector

If you want to use production cost collectors, you must do the following:

To to this you create a repetitive manufacturing profile. The repetitive manufacturing profile determines the following:
To do this you define a cost collector strategy.

You must also do the following:

The valuation variant for the actual costs determines which transfer price is used to valuate the confirmed internal activity. It determines which costing sheet is proposed. It is stored as a default value for each order type.
To do this, you must create a costing sheet that contains the control parameters for the calculation of overhead rates. You can also do the following:
The valuation variant for the valuation of goods received determines whether the goods receipt is valuated with the material price according to the price control indicator (that is, with the standard price or the moving average price) or with another price (such as a planned price that was calculated in a current cost estimate). There is a separate valuation variant for each valuation area.
To do this you must create a
settlement profile and a settlement structure. The settlement structure is proposed through the settlement profile. The settlement profile is proposed through the order type.

In the period-end closing activities you can do the following:

To be able to calculate the work in process, you must do the following:
The results analysis key controls how the work in process is calculated and canceled. It is stored as a default value for each order type.
In the Product Cost by Period component, you always calculate the work in process at planned costs.
The results analysis version controls (among other things) which costs of the work in process capitalized.
To be able to settle the work in process to Financial Accounting, you must do the following:
The posting rules assign the results analysis cost elements under which the work in process is updated on the order to G/L accounts (such as unfinished goods (balance sheet) and inventory changes (P&L statement)).
To be able to calculate variances, you must do the following:
The variance key determines whether variances can be calculated cumulatively or by period.
In the Product Cost by Period component, you always calculate variances by period.
The variance key is proposed in the material master record separately for each plant. It is copied from the costing view of the material master record into the production cost collector.
The target cost version controls how the target costs are calculated and which variance categories are calculated.
To be able to settle the calculated variances to Profitability Analysis, you must do the following:
The PA transfer structure assigns the cost elements of the production cost collector and the variance categories to value fields.

When creating a production cost collector for the run schedule header:

The repetitive manufacturing profile specifies the following:

For information on the Customizing settings for repetitive manufacturing, see the Implementation Guide under: Repetitive manufacturing

Cost Object Hierarchy

If you are using the Product Cost by Period component, you can create a cost object hierarchy . You can assign costs to the nodes of this hierarchy when those costs cannot be assigned to particular orders or production cost collectors.

To be able to use a cost object hierarchy, you must do the following:

The cost object category determines such things as:
The cost object profile determines which parameters are proposed for variance calculation, overhead calculation, and settlement.
The costing sheet determines how overhead is collected on at the level of the hierarchy.
These parameters allow you to settle the actual costs collected at the level of the hierarchy to a price difference account.
The variance key determines how variances are collected at the level of the hierarchy (that is, without first distributing the actual costs).
The target cost version contains control parameters for variance calculation. It is used for actual cost distribution to calculate the target costs that are used as a basis for distribution. The target cost version also contains a cost element group. Costs that are updated on the hierarchy under a cost element for which no target costs can be calculated are distributed in proportion to the target costs for that cost element group.

You can also use the functions of the Product Cost by Period component at order level. (See also: Product Cost by Order).

To display the data in the information system, you must make a number of settings. (See also: Information system for Product Cost Controlling).

Caution

If the total number of orders exceeds 100,000 (including maintenance orders, production orders, process orders, internal orders, product cost collectors, and production cost collectors), contact SAP development through your consultant.

If the total number of hierarchy nodes is 100,000 or more (cost object nodes and assigned orders), read Note 45290 in the OSS. If you do not have access to OSS, contact the SAP Hotline.