When you create a cost estimate, it is always linked to a costing variant that contains all the information required to execute a material cost estimate.
You define and check costing variants in Customizing for Product Cost Planning (PCP).
The costing variant for base object costing contains only the parameters for the costing type and valuation variant.
Purpose of the Costing Variant
Depending on the purpose of the cost estimate, you can create various results for the same material by making multiple costing variants with various settings for costing type, valuation variant, dates, and quantity structure determination.
To make technical changes to the quantity structure, you can create a modified, standard cost estimate and compare it to the standard cost estimate. To value a technical change with the current prices, you can create a current cost estimate.
The purposes of various cost estimates are as follows:
Standard cost estimate:
Standard cost estimate is the valuation of the planned quantity structure with planned prices and calculation of standard prices for the valuation of S-price materials.
Modified standard cost estimate:
Modified standard cost estimate is the valuation of the current quantity structure with planned prices and costing of material during the fiscal year to analyze cost developments.
Current cost estimate:
Current cost estimate is the valuation of the current quantity structure with current prices and costing of materials during the fiscal year to analyze cost developments.
Inventory cost estimate:
Inventory cost estimate is the valuation of the actual quantity structure with tax-based and commercial prices and establishment of valuation approaches for inventory valuation.
