1. Production: Product Costing Planning
Basic data Costing Results Integration
Quantity structure
Cost estimate
Version 3
Inventory
Revaluation
BOM
Costing variants
Valuation strategies
Alternative
Lot sizes
Versions
Version 2
Routing
Version 1
Profitability analysis
Cost of goods
manufactured
Value structure
Cost elements
Material master: prices +
Controlling
Analyses Comparisons
Itemization
Cost center: activity prices +
CO object +
Tables:
overhead
Error log
Costing is the interface between the CO-Controlling and PP-Production Planning modules.
You can configure costing in the configuration menu of both applications.
Cost object controlling provides basic information for the following business-related functions:
pricing and price policy
cost of goods manufactured controlling
material valuation
profitability analysis
The work centers establish the connection between cost center accounting and the production planning and control system.
Course CO920 deals with configuration from the point of view of cost center accounting in more detail.

2. Technical Details CK CK_XX_(Currently, approx. 20) none
Development class(es)
Function group(s)
Logical database(s)
KALK
KLVAR
TCK03
Fix 1 = Unit costing
2 = Product costing
Production planning,
see foil 10- 5
Number range object(s)
NR element
NR group table
NR group (s)
Authorization class
Authorization object(s)
ECKALA (Costing run)
ECKEKOE (Cost component header)
Lock object(s)
Change document object
CKKA (Costing run)
T Name
Matchcode object (s)
Matchcode IDs

3. Costing Table Structure
KALA
KALV
KALD
KALO
CKHS
KEKO
FVMK
COKA
MBEW
CKHT
KEPH
COSP
CKIS
COSS
CKIT
COSL
KALF
CMFK
CMFP
The individual tables contain the following data:
FVMK Planning File for Releasing the Standard Cost Estimate in the Company Code
KALA Costing Run: General Data/Control Parameters
KALV Costing Run: Costing Variants
KALD Costing Run: MRP Levels
KALO Costing Run: Costing Objects (such as materials)
KALF Costing run: Error Log Header
CMFK Error Log: General Data
CMFP Error Log: Messages
KEKO Product Costing -Header Data
KEPH Cost Components of Product Costing
COKA CO Object: Control Data Cost Element
COSP CO Object: Cost Totals - External Postings
COSS CO Object: Cost Totals - Internal Postings
COSL CO Object: Totals of Activity Types
CKHS Unit Costing: Header Data (Control and Totals)
CKHT Texts for Unit Costing Header
CKIS Unit Costing/Itemization, Product Costing
CKIT Item Texts

4. Example of the Use of Costing Variants
Base object costing
Modified cost est.
Current cost est.
Modified cost est.
Inventory
costing
Start of plan period 1
Start of plan period
Time axis
New product
Technical change
Technical change
ad hoc
Inventory
Start of plan periods of fiscal year
Product costing is controlled via costing variants.
Each costing variant can be used to carry out costing for at least one managerial purpose.
Examples:
Inventory costing which carries out tax-based or commercial valuation  Inventory valuation
Standard cost estimate  Stock valuation
Modified standard cost estimate  Controlling: techn. changes
Current cost estimate  Controlling: ad hoc
Job-order costing  Controlling: orders
The chronological progress of the individual costings is an experience value, but is not conclusive.
Standard cost est.
Standard cost est.
Standard cost est.

5. Quantity and Value Methods in the Standard Costing Variants
Quantity structure which is dependent on a cutoff date
Actual price from the previous month (acc.2.1)
Moving actual price
Planned prices/Inventory price
Physical inventory price
Technical data related to a cutoff date
Inventory costing
Current technical data
Standard cost estimate
Target costing
Depending on the costing variant, the system uses different valuation methods.
You can set these in Customizing via Valuation variants and via a specific quantity structure determination for BOMs and routings.
Current costing
Prices
Quantities

6. Customizing Costing: an Overview
Assignment of cost component layout
Costing variants
Costing type
Valuation variant
Quantity structure determination
Date control
Relevancy to costing
Order type
Indicator for relevancy to costing
Cost component layout
Cost components
Component group
Updating manual costing components
Cost fields

7. Costing Configuration Sequence
Costing types
Valuation variants
Costing sheet for overhead
Create cost component layout
Control relevancy to costing
Costing variants
Control costing applications
Quantity structure determination (quantities, dates)

8. Costing Variant Costing variant Costing type Valuation variant
Unit costing allowed
Reference object
Update to material master
Date control
Valuation strategy
Material Internal activities External activities
Costing sheet
Overhead
The costing variant contains the control information for carrying out costing.
The valuation variant contains the information for controlling valuation.
The costing type contains further detailed information on costing control.

9. Material Valuation Strategies
Base planning object
Inventory
Cost.var.
Planned
Actual
Current
Tax
Trade
Price 1
Standard price for previous period 2
Standard price 2 2 1 3
MAP 3 3 4
Planned price 1 1 1 5
Planned price 2 6
Planned price 3 7
Valuation price acc. to price control 1 8
Manual cost component split 9
Future planned price A C E
Tax-based valuation price 1
In Customizing, you can specify in the valuation variant which price is used for a costing variant, and if there is more than one price, the order in which they are used.
For each price, you can decide whether you want manually entered costs taken into consideration. B D F
Trade-based valuation price 1

10. From Standard Value to Costs using the Performance Efficiency Rate
Standard values of operation
x Perf. eff. rate per activity type
Conversion into seconds
New standard value
Formula from work center
Effective execution time
Costs
x Activity price
In order to reach the execution time from the standard values of an operation, various arithmetic operations must be carried out.
First of all, the standard values are converted into seconds before being adjusted to the performance efficiency rate.
This effective execution time is multiplied by the cost rate, and this will then give you the costs

11. + = Overhead Costing Costing sheet Direct material costs
Material overheads
Direct material costs
Cost of goods manufactured
Administration overheads
Sales overheads
Total production costs
Production overheads
Direct production costs
Costing sheet + =
Material costs
Manufacturing costs
You can structure how overhead is calculated in the CO System as required by selecting costing sheets. A costing sheet can have a single or multi-level structure
The costing sheet determines how the following are calculated:
The cost of goods manufactured
The cost of goods sold
The standard system contains pre-defined overhead costing sheets.

12. Elements of the Costing Sheets
Cost element
Origin
Basic for calculation
Percentages
Planned / actual
Dependencies
Order type
Plant
Company code
Business area
Overhead code
Overhead
Object
Cost center
Order
Credit
Calculation basis
Cost element or group of cost elements used in connection with the origin
Overhead
You can define the overhead percentage rate according to the different fields, such as the plant, for planned and actual figures
Credit
Each overhead line in the costing sheet is assigned to a credit code.
According to how this code is defined, the overhead amount is credited to a cost center or an order under a secondary cost element. Product costing needs the cost element to be able to apply overhead to a specific cost component.

13. Defining the Overhead Rates
Use available costing sheets
Step Description
1 Calculation bases Adapt
2 Overheads Adapt
3 Credits Adapt
Create new costing sheets
Step Description
1 Condition tables Define
2 Access sequences Define
3 Calculation bases Define
4 Overheads Create and assign dependencies
5 Overhead rates Define
The standard system contains pre-defined overhead procedures. You can adapt the individual objects (cost elements, percentage rates, and so on) to meet your company's requirements.

14. Cost Component Allocation
Active:
Cost component layout 01 X
Cost component 1 Raw material
...
...
Cost component 3 Production
...
Cost component 8 External activity
Cost component 9 Other
CofA
From cost ele.
Origin
To cost ele. ES
GJSAS 01
400000
ABC
410000
610000
612000
ELE 9 1 2 3
Direct costs can be grouped using any cost component layout (optional cost grouping).
The costs are displayed according to the cost component layout.

15. Breakdown of Quantity Structure in Costing
Quantity structure determination ID
Costing variant
BOM status
Quantity structure determination ID
Plant
Breakdown of quantity structure
Adjustment
Application BOM
Selection ID
Routing CO
object
Order
type
Selection ID BOMs
Priority BOM usage
Routing application
A quantity structure determination ID is stored in the costing variant.
The quantity structure determination ID refers to the bill of material and the appropriate routing for control information.
In addition, the order type of the CO object is determined.
Alternative selection
Alternative selection