Performing Simultaneous Costing for Product Cost Collector

The so called de-coupling scenario leads to the posting of all logistic processes to the production order, and the valuation of such processes to the product cost collector. The following processes lead to actual posting on the product cost collector:

• Material withdrawal of the primary products

• Goods receipt of yield quantities

• Confirmation of actual yield and scrap quantities, and actual time needed

• General ledger (G/L) account postings in FI

• Goods movements in Materials Management (MM)

• Reposting of primary costs

• Reposting of line items

• Internal activity allocations

• Reposting of internal activity allocations

• Direct assignment of personnel costs to cost objects using time sheets

• Process cost allocation

• Manual process allocation

• Template allocation

• Calculation of overheads

• Revaluation of activities at actual prices

• Confirmations in Logistics that result in activity allocations

• Subcontracting

Logistical functions, such as goods issues and confirmations, are still performed with reference to the manufacturing order or in repetitive manufacturing, with reference to the production version. The resulting costs are updated in the product cost collector.

You can enter goods issues, confirmations, and goods receipts independently of each other. You can also have activity allocations and goods issues or goods receipts generated automatically when you confirm the settings. You can make the settings that enable this in logistics. You can confirm the order header or individual operations.

In the Product Cost by Period scenario, you are recommended to confirm operations. This affects how work in process (WIP) is calculated.

The indicators that determine price control for the material are set in the material master record.

The price control indicators are as follows:

• Price control indicator V:

  The material is valuated at the moving average price (unit price). The moving average price changes with each goods movement or when the orders from Cost Object Controlling are settled. The value of the goods receipt is determined by the valuation variant for delivery.

• Price control indicator S:

  The material is valuated at the standard price. In MTS production, this price is usually calculated in a standard cost estimate for the material. In sales order-related production with valuated sales order stock, the valuation price is selected using a predefined valuation strategy and acts as a standard price.

For materials whose price control indicator is S, the system valuates the stock receipts at a standard price. The credit applied to the product cost collector is the quantity received in the inventory multiplied by the standard price.

For materials whose price control indicator is V, the stock receipt and the credit to the product cost collector are controlled by the valuation variant for delivery. The valuation variant for delivery determines which price field from the material master is selected to valuate the goods receipt. When the product cost collector is settled during period-end closing, the posting for materials with price control indicator S can differ from those for materials with price control indicator V.

When the goods receipt is entered, the system automatically debits the balance sheet account and credits the inventory change account. The system credits the product cost collector using the primary cost element that corresponds to the plant activity account (inventory change account).

• Simultaneous costing involves debiting and crediting the product cost collector with actual costs during production.
• In the decoupling scenario logistic processes are posted to the production order and valuated to the product cost collector.
• Actual costs result from goods movements, confirmations, and activity allocations.
• Goods receipts are valuated based on the price control indicator in the material master record.