Name: Introducing Product Cost Planning for Standard Cost Estimates with Focusing on Costing Variants - Part 1 - SAP S/4HANA Cloud - Finance and Risk
Uploaded: 2022-9-26
Duration: 640 s
Description: In this Microlearning your will learn- the available options of product cost planning- how to configure product cost planning

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<div><div>In this Microlearning your will learn<br>- the available options of product cost planning<br>- how to configure product cost planning<br></div></div>

Introducing Product Cost Planning for Standard Cost Estimates with Focusing on Costing Variants - Part 1 - SAP S/4HANA Cloud - Finance and Risk

Hello and welcome to this micro learning for SAP S/4HANA Cloud for finance, introducing product cost planning for Standard cost estimates with focusing on costing variants part one. In this microlearning, we will first have a short look on the options that are available for product cost planning in general, and how they can be configured. Afterwards, we will analyze the options for adjusting the costing variant with focus on standard cost estimates. This part will be split into two microlearnings. Standard cost estimates establish standard prices for semi-finished and finished products. The costs calculated in standard cost estimates are used to value materials with standard price control. When you want to plan costs for a material, you need to specify a costing variant. The costing variant contains all the information needed to cost the material. That means to create the material cost estimate. If you use sales order costing, the costing variant is determined via the requirement class. If you use production or process orders, the costing variant is directly assigned to the respective order type. The assignment can be checked or changed in these two SSCUIs. In this microlearning, we will focus on the case that you want to plan costs for materials without a reference to an order. You have to create and execute a costing run for the materials used in your company or plant to set prices for your materials based on the bill of material, the routing, and the costing sheets that were maintained for the material before. you find the description on how to create and execute a product costing run for materials without reference to orders in the master data script BNU, and in scope item BEG. In SSCUI 104233 you are able to adjust costing variants, but you can't create costing variants on your own. In the App Check Costing Variants, you can display the settings for the available Costing variants for cost estimates without orders and for sales order costing. It is display only so you can't change anything there. The standard system contains a number of predefined costing variants. We want to focus on a standard cost estimate, which is used to calculate the standard price in the material master record. According to Master Data Script BNU, Costing variant PYC1 is used. So we will have a look at this one as an example throughout this microlearning. Please note that if you use Universal Parallel accounting, there were ledger-specific Costing Variants introduced for material cost estimates. Depending on your ledger setup, please choose one of these costing variants. You have three tabs in the costing variant, the control parameters, the quantity structure, and the additive costs. marked in orange here. Let's take a look at all of these three tabs, one after another in the following slides and in part two of this microlearning, please note that the functionality described in this micro learning is based on the 2202 release. Let's start with the Control tab. The costing type and valuation variant are always fixed assigned to the costing variant. For date control, quantity structure control, and transfer control. You can choose from several options, but you can't maintain your own ones. The costing type for a material cost estimate controls which price field in the material master is updated, and which valuation view is costed. Let's check with the app check costing variants, how the Costing type 01 is defined. Costing type 01 specifies that the results of this cost estimate are written to the material master as the standard price, and thus can be used to valuate inventories. The valuation is done with legal valuation. That means according to the accounting principle that is assigned to the respective ledger. The update will be performed for all ledgers as no specific ledger is stated in the costing variant. In comparison, let's look at costing type 0L that is used in costing variant P00L. Here only ledger 0L is updated. Let's go back to the next step in the Control tab and have a look on the valuation variant. Valuation variants enable you to define which prices are selected to value materials, internal activities, subcontracting and external processing, and which costing sheets are used to calculate overhead. As you can see here, valuation variant 0Y1 is assigned to costing variant PYC1. You can also check which valuation variant is assigned to the costing variant. Using the app check costs variants. If you click on the button valuation variant, you will be redirected to SSCUI 102607, which is named define valuation variants for material cost estimates. You should consider this SSCUI more as a template. For maintaining the valuation variant, You should better use SSCUI 102608, which is named define valuation variants per plant. As you can see, there are a lot of tabs, which consists of several configuration options. So we will dedicate a separate micro learning to the maintenance of valuation variants and skip this control parameter for now. The next control parameter is the date control. The date control determines which dates are proposed or displayed when a cost estimate is created, and whether these dates can be changed by the user. There are several options available to choose from. Let's have a look on an example using the app manage costing runs - estimated costs. The date control determines which date is proposed by the system as the costing date from, costing date to, quantity structure date and the valuation date when you create a new costing run. Let's assume today is the 26th of June 2022. The Date Control key PC01, that is assigned to costing variant PYC1 is configured that the costing date from is set to the start of next month, which would be the 1st July in our case. The costing date to is set to the maximum value, which is the 31st December 9999. The quantity structure date and the valuation date are taken over from the costing date from, which would be the 1st July in our case. All four dates can be overwritten by the user. Let's move on to the quantity structure control. The quantity structure control controls how the system searches for valid alternative bill of materials and routings in each plant in case the calculated material is used in further production processes. And alternative bill of material for a product could be required if, for example, different production processes are used for different lot size ranges. You can check which quantity structure control is assigned to the costing variant PYC1 and how it is defined using the App check costing variants. The BOM application is used in order to explode a BOM during order creation. The alternative determination is controlled both by the application and the settings in the material master in Costing 1 view. The routing selection ID is used for selecting alternative routings based on the task list selection. Quantity structure determination also specifies whether the required quantity of a BOM component is rounded up in cases where the calculation of scrap adjusted quantities produces and input quantity, that is not a whole number. In the quantity structure that is assigned to costing variant PYC1, the indicator is set to no rounding. The last control parameter is the transfer control. Within transfer control, you define parameters for partial costing. The purpose of partial costing is to prevent the system from creating a new cost estimate for a material when costing data already exists. In this case, the existing costing data is simply transferred into the new cost estimate. Partial costing is, for example, useful in case you want to cost a new product. The BOM for this product contains materials that have already been costed and you do not want to cost these materials again. In the costing variant PYC1, the transfer control is set to transfer with plant change, which is used for transfer from one plant to another plant. This prevents the quantity structure in the receiving plant from being exploded and recosted. You can define single plant and cross plant strategies to control which cost estimate is transferred to the higher costing level by using up to three strategy sequences to determine the order in which the system searches for costing data. If the system cannot select a cost estimate, even after reaching the end of the strategy sequence, it explodes the BOM of the material and creates a new cost estimate. In the app check costing variants you can see that only cross plant strategies are defined for transfer control PC01 and no single plant transfer takes place. That means even if cost estimates for certain materials already exist in the individual levels of the BOM, all materials are always recosted within one plant. Within the cross plant strategies the system searches first for future standard cost estimates within the current fiscal year, second for current standard cost estimates, and third for previous standard cost estimates. Please note that you can use the cross plant strategy only if the special procurement type is specified in the material master in costing 1 or MRP2 view. Thanks for listening to part one. Please continue with the microlearning part two for the remaining tabs, quantity structure and additive costs.