What is the use of costing run?
Steps for Product costing:
Create Cost center (FI/CO) – KS01
Create Activity Type (FI/CO) – KL01
Assign Rates for a cost center/activity type combination – KP26
Do Cost estimates - CK11N, CK24 or CK40N
If you use CK40N,
Costing, Mark the price and Release the same can be done in single step.
Cost Rollup is done for Finished product so that the
system automatically calculates for the Semi-Finished products standard
cost.
IF you use CK11N,
only costing will be done, but for marking and release you have to use
CK24.
OPL8 - For each Production order type, Order Type Dependent
Parameters – Under controlling tab - Costing variant Planned and actual
has to be assigned.
KKF6N - Create Product
Cost Collector for REM scenario for all In-house Manufactured assemblies.
Use of Costing run:
Costing run is used to capture the cost involved in the manufacturing of a product.
E.g.
Manufactured materials
Services
Other intangible goods
You 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?
You can use Product Cost Planning to do the following:
To calculate the non-order-related cost of goods manufactured
and cost of goods sold for each product unit.
To 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 Cost Rollup).
To optimize the cost of goods manufactured through comparison
costing ( Product Cost Controlling Information System).
To provide basic information for other R/3 applications,
for example:
To establish standards with which to assess production
efficiency in Cost Object Controlling.
To update prices in the material master record and in
Profitability analysis.
