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Product Cost Planning.pdf

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PRINT FROM SAP HELP PORTAL Document: Product Cost Planning File name: erp2005_ehp_06_en_7e_cb7d6343a311d189ee0000e81ddfac_content.pdf URL: http://help.sap.com/erp2005_ehp_06/helpdata/en/7e/cb7d6343a311d189ee0000e81ddfac/content.htm Date created: February 18, 2013 © 2012 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior not
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  PRINT FROM SAP HELP PORTAL Document: Product Cost Planning File name: erp2005_ehp_06_en_7e_cb7d6343a311d189ee0000e81ddfac_content.pdf  URL:http://help.sap.com/erp2005_ehp_06/helpdata/en/7e/cb7d6343a311d189ee0000e81ddfac/content.htmDate created: February 18, 2013 © 2012 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. Theinformation contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. 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These materials are subject to change without notice. These materials are provided by SAP AG and itsaffiliated companies ( SAP Group ) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions withrespect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products andservices, if any. Nothing herein should be construed as constituting an additional warranty. PUBLIC© 2012 SAP AG. All rights reserved.Page 1 of 36   Product Cost Planning Purpose Product Cost Planning (CO-PC-PCP) is an area within Product Cost Controlling (CO-PC) where you can plan costs for materials without reference to orders, andset prices for materials and other cost accounting objects.You can use Product Cost Planning to analyze the costs of your company’s products such as:Manufactured materialsServicesOther intangible goodsYou can analyze costs to help provide answers to questions such as:What is the value added of a particular step in the production process?What proportion of the value added can be attributed to a particular organizational unit?What is the cost breakdown including primary costs or transfer prices?How high are the material, production, and overhead costs?How can production efficiency be improved?Can the product be supplied at a competitive price?Product Cost Planning comprises the following components: Cost Estimate with Quantity Structure Costing materials based on a quantity structure  in PP Cost Estimate without Quantity Structure Costing materials without a quantity structure in PP Price Update Transferring the results of material cost estimates to the material master  Reference and Simulation Costing Planning new products and services using base planning objects Easy Cost Planning and Execution Services Rapid cost planning without master data within an ad hoc cost estimate For further information, see the following: Purpose of Product Cost PlanningCosting Sequence Implementation Considerations The following graphic provides an overview of the organizational structures required for costing:Materials are always valuated at valuation area level . Costing must be performed at plant level. Consequently you must define the plant as the valuation level in Customizing under EnterpriseStructure → Definition → Logistics - General in the step Define valuation level. When you do this, a valuation area is created with the same name for each plant. All costing data is then stored with reference to a plant. Integration Product Cost Planning accesses master data in other components, such as BOMs, routings, and work centers in Production Planning, and cost centers, activitytypes, and business processes in Overhead Cost Controlling. Costing data within Product Cost Planning can also be made available to other applications. For example, you can update the standard price in the material master with the results of cost estimates, and valuate materials using this new standard price.For more information, see Information for Other Applications .Because of this high level of data integration, SAP recommends that you make a thorough check  before going live to ensure that the correct data is accessedfor the quantity and value structures, to prevent incorrect costing results.For more information about integration, see Origin of Costing Data . Features PUBLIC© 2012 SAP AG. All rights reserved.Page 2 of 36  The following table gives you an overview of the menu and functions of Product Cost Planning: Menu OptionFunctionCost Estimate Material Costing → Edit Costing Run Cost estimate for multiple materials with BOM and routingUsed to process mass data, and is created automatically withProduction Planning data (product cost estimate) Material Costing  → Cost Estimate with Quantity Structure Cost estimate for a material  with BOMand routing or master recipeCreated automatically with Production Planning data (product costestimate) Material Cost Estimate with Quantity Structure → Additive Costs Additive cost estimate Created using data you enter manually (unit costing) Material Costing  → Cost Estimate Without Quantity Structure Cost estimate for a material withoutBOM or routing Created using data you enter manually (unit costing) or transfer from anon-SAP system Reference and Simulation Costing  Base object cost estimate Created using data you enter manually (unit costing) Easy Cost Planning & ExecutionServices →Edit Ad hoc Cost Estimate ... Ad hoc cost estimate ... Created using a planning form ( costing model ) that can access the data in the SAP system Menu OptionFunction Material Costing → Price Update Transfer of cost estimate results to the material master record Material Costing → Master Data for Mixed Cost Estimate Definition of procurement alternatives and mixing ratios for a mixed cost estimate Easy Cost Planning & Execution Services →Edit Costing Model  Define planning forms for  Easy Cost PlanningMenu OptionFunctions AvailableExamples Information System Reports for Product Cost Planning Lists of existing material and base object cost estimatesDetailed reportsComparison reports Environment   Additional functions in Product Cost Planning Archiving  and deletion  of costing data Distribution of cost component splits  (ALE)You use different costing methods in Product Cost Planning depending on the availability of data in Production Planning (PP and PP-PI) and on the type of objectyou want to cost (see graphic below): Automatic costing (also known as  product costing  )The system determines the quantity structure (BOMs and routings or master recipe) for the material and valuates it automatically  using data fromProduction Planning (PP or PP-PI). For more information, see Use of Cost Estimates with Quantity Structure  and Cost Estimate with Quantity Structure: Process Flow . Unit costing This cost estimate calculates the costs for the following objects without accessing BOMs and routings in Production Planning:Materials (for example, additive costs for a material cost estimate with quantity structure, material cost estimate without quantity structure)Base planning objectsWith this costing method, you enter the costing items manually . You can access existing SAP system data such as materials, businessprocesses, cost centers, and activity types for this purpose. For further information, see the following: Unit CostingAdditive CostsUse of Cost Estimates Without Quantity StructureUse of Reference and Simulation CostingMultilevel unit costing This cost estimate calculates the costs for the following objects without accessing BOMs and routings in Production Planning: PUBLIC© 2012 SAP AG. All rights reserved.Page 3 of 36  Materials (material cost estimate without quantity structure)Base planning objectsWith this costing method, you enter the costing items manually . You can access existing SAP system data such as materials, businessprocesses, cost centers, and activity types for this purpose. You can also display the costing structure hierarchically and, using a worklist, accessfrequently used data. For more information, see Multilevel Unit Costing . Activities You can access the functions of Product Cost Planning from either the  Accounting   menu or the Logistics  menu:  Accounting  ®   Controlling    ®   Product Cost Controlling    ®   Product Cost Planning Logistics ®   Production   ®   Product Cost Planning Logistics ®   Production - Process   ®   Product Cost Planning  You make the configuration settings for Product Cost Planning in Customizing for Product Cost Controlling. For more information, see Preparing for Costing: Customizing  and the  Implementation Guide (IMG) for Product Cost Controlling  .  Purpose of Product Cost Planning Use You can use Product Cost Planning to do the following:· Calculate the non-order-related cost of goods manufactured and cost of goods sold  for each product unit· Establish how the costs are broken down for each product, and to calculate the value added for each step of the production process ( Concept of CostRollup )· Optimize the cost of goods manufactured through comparison costing (  Product Cost Controlling Information System )· Provide basic information for other SAP applications , such as:¡ Standards with which to assess production efficiency in Cost Object Controlling ¡ Prices that are updated in the material master record  and Profitability analysis ¡ Lower price limits for Sales and Distribution Features The following graphic illustrates the aims of Product Cost Planning, which are: 1. Calculation of the cost of goods manufactured (COGM) and the cost of goods sold (COGS) of a product 2. Analysis of the costing results using the various reports available 3. Provision of information for other SAP applicationsThe following table describes the reports with which you can analyze the costing results: ReportContents Cost component split   A view of the costs of a material cost estimate broken down into cost groups, such as material costs, production costs, andoverhead costs. Itemization Detailed information about the costs contained in a material cost estimate or base object cost estimate Itemization by cost element  Detailed information about the costs contained in a material cost estimate or base object cost estimate, sorted by cost element Costed multilevel BOM  Quick overview of the BOM and costs of a material cost estimate or base object cost estimate in hierarchical form Partner cost component split  Overview of the value added portions of organizational units (partners) in relation to the total costs of a material PUBLIC© 2012 SAP AG. All rights reserved.Page 4 of 36
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