3 Quick Tips from A Practical Guide to SAP CO-PC

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DSC_7827_ResizedExplore 3 quick tips from Practical Guide to SAP® CO-PC (Product Cost Controlling) by Tanya Duncan.

Tip 1:
The difference between CK11N and CK40N
Costing in CK11N is different from costing in CK40N because component materials are not given a cost along with the specified produced material. You must cost, mark and release each component cost first, then cost the finished good. You do not need to cost component if they already have a current cost estimate or the cost estimate would just pick up the standard price or moving average price anyway.

Tip 2:

Price update warning for produced materials Typically, you do not want to perform a
manual price update for a produced material because this price change only
affects the standard cost used to value inventory on the accounting 1 view. This price update does not update the released cost estimate on the costing 2 view that is used in production. If you have an inconsistency between your released cost estimate and the standard price used for inventory valuation, you will see inconsistencies and variances throughout production.

Tip 3:

Statistical pricing condition examples I have used statistical pricing conditions several times to satisfy product costing requirements. One recent example is the use of a statistical pricing condition that adds an overhead percentage to a material’s purchase price statistically to account for overhead added with a costing sheet. This statistical pricing condition essentially ensures that a purchase price variance does not post due to the material’s additional cost from a costing sheet. The statistical pricing condition also avoids overpaying the vendor, which would occur with a non-statistical, or real, pricing condition. The condition I am referring to is RUE1 for negative percentage accruals.

64Keep reading in  Practical Guide to SAP® CO-PC (Product Cost Controlling) by Tanya Duncan.

Because of its complex integration, Product Cost Controlling (CO-PC) is often regarded as the most challenging module in SAP ERP. In this book, you will learn the most important concepts, business processes, and configuration settings. By concentrating only on the essentials, this book will quickly enable you to use it as a supplementary reference guide for implementing or supporting SAP CO-PC. Screenshots of transactions and configuration are included to illustrate written content. This book also dives into CO-PC integration details with other modules and tips on how to properly configure and implement a highly integrated sub-module. This complete and simplified guide to configuration and business processes for SAP Product Costing covers:

  • Introduction to Value Flows in SAP Controlling
  • Step-by-Step Examples
  • Configuration for Product Costing
  • Detailed Month End Closing Processes