Steps To Be Followed For Product Costing

Explain the steps for doing product costing.

Answer:

The steps to be followed for product costing:

Two aspects:

1. Calculating standard cost estimate
2. Order costing

1. Create materials.
a. Five raw materials (Two for creation of semi finished, three for finished)- ROH
b. One semi finished material-HALB
c. One finished material-FERT

2. Create secondary cost elements for defining activity types.

3. Create secondary cost elements for defining credit elements in costing sheet.

4. Create activity types (use category 1 & price calc as 3 - for now).

5. Define prices for combination of cost center and activity type in KP26

6. Define costing sheet.

7. Define cost component.

8. Define components of costing variant.
a. Date control
b. Valuation variant
c. Costing type

9. Define costing variant

10. Next, create standard cost estimate
Use either CKUC (for multi unit costing) or KKPAN (for material without quantity structure).
In case of costing with quantity structure (means with BOM) we use CK11N (for individual material costing) & CK24 for update price in material master & CK40N for mass costing & update material price.
If want to capture OVERHEAD then overhead group & OH key to be defined, OH group is defined in MATERIAL MASTER. While rates are maintained for OH key with validity dates. This OH rates are then captured in cost sheet and then roll up in material cost thru use of costing variant.

11. Next to update prices, use the below transaction CK24 for price update.
First, MARK
Then, RELEASE

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