Creating Single-Level Cost Estimates

Objectives

After completing this lesson, you will be able to:

Create a single-level cost estimate for a material
Reference other cost estimates

Single-Level Cost Estimate

A flowchart outlining the steps of single-level unit costing, starting with entering material and plant details, choosing a costing variant, creating and saving costing items, and concluding with saving the material cost estimate, each accompanied by explanatory notes.

To create a single-level cost estimate, enter the material and plant for which the cost estimate should be created. Choose a costing variant.

The costing variant determines the following factors:

The valuation strategy for costing items
The validity dates for the costing variant and valuation dates for material and activity prices

If you do not enter a lot size, the system uses the lot size from the material master. A cost estimate header is automatically created that can be used to change the lot size on the fly and enter various explanatory texts.

You can enter the costing items manually, or reference and modify a base planning object or an existing material cost estimate.

When you save the costing items, the calculation of overhead and process costs occurs automatically. The itemization and cost component split are then available for analysis.

When you save the material cost estimate, the itemization is saved in the database.

Cost Estimate Modification

A diagram showcasing the creation and modification of costing items for a new forklift, highlighting the resource, quantity, and total value in a list screen, with detailed adjustments in a cost item detail screen, including material and plant information.

The following screens are used for entering costing items in unit costing:

List screen:
The input fields in this screen are user-definable. The screen is available in the following views:
- View 1: Resources
- View 2: Texts, variable items, and totals
- View 3: Simple formulas
Detail screen:
You can use this screen to create or change data in detail. You can access this screen for the items selected from the list screen by selecting an icon, or by using the menu option.

You enter an item category for each item in the cost estimate. The item category determines which data you enter, which data the system reads, and how the system calculates the costs for the item. The Detail screen indicates the permissible item categories, entries, and objects.

Enhanced Efficiency

Usually, the system can access existing master data or cost estimates. This is the basis for the concept of fast copying and editing to produce quick reliable results. The number of manual entries is reduced to a minimum as per requirement.

When you create base planning objects, adhere to the following guidelines:

Use an existing reference, if available, to fill the necessary master data fields.
Ensure that text changes and assignment alterations are the only adjustments.

Key Steps: Use List Screen and Editing

Use the list screen filter to reduce the number of items displayed.

To use the list screen filter, perform the following steps:

Select one or more columns in the List screen.
Choose the Filter icon.
Enter the filter requirements.
To view all the items again, choose the Delete filter push button.

The procedure to cut, copy, and paste costing items within base planning objects is as follows:

Select the item to cut or copy.
Choose the cut or copy icon.
Select the position to insert the item.
Paste the data from the clipboard.

Note

You cannot transfer items using a base quantity. Base quantity needs to be "1" for the transferred item.

Material Cost Estimates as a Reference

A visual breakdown of material cost estimates for a new forklift and Gearbox T-FL200, showcasing the item categories, resources, quantities, and total values for both, with detailed costing including process lift, cutting, annealing, and overhead costs.

You need to insert the itemization of an existing material cost estimate in the itemization. To achieve this, insert the costing items for two units, Gearbox T-FL230, in a single action.

Exploding Material Cost Estimates: Key Steps

To explode the material cost estimates, perform the following steps:

Choose the Explode Material Cost Estimate function.
Specify the number of levels to be exploded.
Specify whether you need to transfer only the material items or all the items.
Specify the reference quantity with which you explode the cost estimate.
Enter the material.
Select a material cost estimate.
Copy the costing items to the clipboard.
In the List screen, place the cursor in the position where the items need to be inserted.
Paste and revaluate.

Note

Items that are automatically generated by the system (such as overhead and process costs determined using a template) are lost in revaluation. This applies to all transfers.

Explanation Facilities

The explanation facilities enable the cost planner to directly access data and information in the costing environment while remaining in the cost estimate screen.

You can access the explanation facilities in the following ways:

By selecting the Info icon in the cost estimate header
The unit cost estimate list screen
From the information system through the itemization and the costed multilevel bill of material (BOM)

The facilities that are available depend on the object to be costed.

Modify a Single-Level Unit Cost Estimate

ExerciseStart Exercise

Summary

Create single-level cost estimates by entering material, plant, and choosing a costing variant.
Use existing cost estimates as references to reduce manual entries and enhance efficiency.
Modify costing items using list and detail screens for precise data entry and adjustments.
Explode material cost estimates to insert itemization and revaluate costs efficiently.
Access explanation facilities to directly retrieve data and information within the costing environment.

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