AC505 - PRODUCT COST PLANNING PDF

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Log In Sign Up. AC Product Cost Planning. Kiran Kumar. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. All other product and service names mentioned are the trademarks of their respective companies.

Data contained in this document serves informational purposes only. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies "SAP Group" for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials.

The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. They complement the course instructor's explanations.

Space is provided in the materials for you to note down additional information. What is my lower price limit? For example, how do the material costs compare to the wages? In which plant can the product be manufactured the cheapest? This price can be set by a standard cost estimate. Product Cost Planning must be able to provide the first precise cost projections. During this phase, the need for integration and for direct access to the data in Logistics increases.

Data not available in Logistics is added by the person responsible for product cost planning. At this stage, the complete product range is costed regularly, and precise cost shifts are monitored. Using this method, you manually plan the costs for an item.

You can use the base object cost estimate as a reference for this. Two methods are available for material cost estimate planning without quantity structure: Multilevel unit costing and single level unit costing.

Multilevel unit costing allows you to plan cost at the assembly level without the requirement for production bills of material. This method costs individual products exactly, and provides various analysis options for comparing different alternatives.

They are used periodically to cost the entire product spectrum. Functions are introduced gradually. Consequently, the course materials are not designed to be used as a reference work. This data is accessed when the materials are costed. Similar costing methods are provided for services in the form of a cost estimate without a quantity structure.

Improved quality standards will involve longer production times and higher costs for purchased parts. These settings contain information such as the prices that the system will use to cost materials, activities and business processes. Prices are calculated in accordance with conditions in Purchasing. You can define the rows to be totaled in a formula. The default is the sum of all rows above the totals row.

You can use it to apply overhead differently to different groups of base planning objects object-dependent. You can use the spreadsheet to create totals, subtotals, and formulas for mathematical operations. This master data is in the form of texts, assignments, and the unit of measurement of the base planning object. A base planning object is always assigned to a controlling area. E Proc. This is available in three views. The input fields are user-definable.

You can use this screen to create or change data in detail. You can access this screen for the item s selected from the list screen by double-clicking, choosing an icon or by using the menu option. The item category determines which data you enter, which data is read by the system, and how the system calculates the costs for the item. The detail screen indicates the permissable item categories, entries and objects.

This was the main reason behind the idea for fast copying and editing to produce quick, reliable results. The amount of manual entries is reduced to only those that are really necessary.

Choose the filter icon. Enter the filter requirements. If you want to view all the items again, choose Delete filter. Choose the icon. Select the position at which the items are to be inserted. Copy the data from the clipboard, and make the changes. E Process sheet metal 20 min. In practical terms, this means inserting the costing items for two units "Shaft " quickly and in one step. Afterwards, you will be making small changes. This applies to all transfers.

Copy Cost Estimate E Process sheet metal 20 min. In the above example, these items are process costs 2 and 3 in the base planning object Quality Processes. Enter the base planning object. For a complete overview, see the SAP Library. The facilities available also depend on the object to be costed. Your company requires an accurate projection of the costs for a new product at the planning and decision phase of its development. To accomplish this, you have decided to test the unit costing tool for Reference and Simulation Costing.

You would also like to learn how to use some of the special functions of the tool. To test the unit costing functions, you copy an existing base planning object into your base planning object and add the production activities that, according to your engineering department, will be required to manufacture the new material.

Other components will also be used in the new product. Since your company is providing various services as part of a warranty for the material, you create a separate base planning object for this. To be able to check the detailed information, you explode the services within your new base planning object. Create the cost estimate using the base unit of measure PC. Since this pump will be a finished product, assign cost element The pump will be manufactured in plant , which belongs to company code Enter the costing sheet COGS, which will calculate overhead through to the level of the cost of goods sold.

Enter a name and a short description explaining the product and purpose of the simulation costing. Which costing variant is available? Enter units under item category B to your base planning object, and explode them over one level. To include these in the base object cost estimate, you create an internal activity.

Engineering has informed you that additional machine hours activity type are required at work center of production plant For pumps, an additional 2. Make these settings in the detail screen double-click on the input line.

A sticker will be affixed to each pump for this purpose. Your vendors provide the stickers in a packing unit of 10 pieces at 30 UNIs per unit. Note that the lot size is Costs are therefore incurred for the warranty at order acceptance.

The warranty specifies that components found to be faulty within the warranty period shall be replaced free of charge. Since this service package is offered with other new products, you create a separate base planning object for the package to be integrated with the cost estimate for your pump and exploded in the cost estimate.

At this stage, what needs to be calculated are the estimated costs arising from the warranty. Choose PC for the base unit of measure, and enter company code , plant , and cost element Other Costs.

Enter the time for the order acceptance that will be completed by cost center External Services. The duration of time will be 1 labor hour activity type Enter the travel costs as a variable item with cost element An estimated 15 hours of travel time will be required at UNI per hour.

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Product Cost Planning

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AC505 Product Cost Planning

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AC505 Product Cost Planning_1

This course explains how to position the product cost planning component in its overall context. The course also explains how to apply the various costing methods and use the information system. This unit describes Product Cost Planning in detail. It also describes the goals of Product Cost Planning and the typical factors that affect cost planning during the life cycle of the product.

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