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Hrusikesh Dalai
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FIN Controlling
FIN (Finance) | MAN Production Planning (PP) | SAP ERP | accounting | available | beginner | bp | budget | business process
expert | center
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https://blogs.sap.com/2013/11/15/basics-of-sap-standard-cost-estimate-understanding-the-flow-of-cost-settings-part-1/ 1/37
11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
When you take a look at a material cost estimate what you will understand the
Quantity Structure, Valuation, Costing Dates etc.
Standard cost of a material looks like in T-Code- CK13n (you can view
this from costing-2 view in material master too T-Code-MM03.)
I will try to walk through these 6 tabs below explaining basic
configurations and data flows from different configuration to Standard
Cost estimate.
Screenshot-1
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Screenshot-2
Screenshot-3
1-Costing Data
It contains data like Costing variant, Costing Version, Lot Size and Transfer
Control. Lets talk about Costing Messages and Costing status later on.
Screenshot -4
-Maintain parameters different Tabs like Control, Qty Structure, Addictive Cost,
Assignment and Misc.
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Screenshot 5
-Number that serves to differentiate between cost estimates for the same
material.
Screenshot 6
Lot Size
The costing lot size in the material master record is usually used as a basis for costing all
materials, however one can manually change the lot size during cost estimate.
Screenshot 7
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This controls how costing with quantity structure searches for existing cost
estimates when existing costing data are transferred to another cost estimate.
In this example we assigned PC02 in TCODE OKKN.
2-Costing Dates-we will learn more about date control in Costing variant
Screenshot 8
-Costing Date from -Date from which the cost estimate is valid.
-Costing Date to- This date determines the date up to which the cost estimate
is valid
-Qty Structure Date-Date with which the quantity structure is selected for the
cost estimate with quantity structure.
Screenshot 9
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Screenshot 10
If you go back and refer my screenshot 3 the detailed cost (M) comes from
this settings.
Note- we will have to do cost component settings too will cover the point in net
part.
Screenshot 11
Screenshot 12
if you refer to screenshot 3 Overhead cost (G) flows from this settings from
costing sheet and overhead key.
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
After defining a costing sheet that points to two condition tables. In the
first table, the overhead amount depends on the overhead key. In the
second table, the overhead amount depends on the plant. An access
sequence determines which conditions have priority.
Screenshot 13
Cost By/Marked By/released By- The user names who performed respective
costing run task.
Some large companies have different person to mark the cost and different
person to release the cost as it rectifies the human errors if any. But in my
experience i have seen mostly it is performed by the same person.
Costing run usually this data updated when we use T-code CK40n to do
standard costing in case of individual material costing using CK11n this field
will not populate. So we can always go and check that costing run data to
verify the settings at that point of time.
If you refer back screenshot 8 breaking out cost like overhead, labor
and material based on these settings here.In Product Cost Controlling,
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Screenshot 14
Error Log- Identifies the messages if costed with error or without error.
Intention of creating this document is to reach out to the beginners and those
who wanted to know and understand the flow of Standard Costing. i will
update the document as n when some more points needs to be included .
This is my first document and I should thank Ajay , Forum members,and SCN
SAP ERP Financials Controlling
I was nervous to put together the basics in a document and publish it in SCN.
I will continue edit it for improvement.
The next part of document will update the more detailed configuration and
steps to understand Basics of Standard costing
Best Regards
Hrusikesh Dalai
Alert Moderator
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102 Comments
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Prasad Swain
Simplified!!!!
Well done!!Congratulation for writing this document. I like the flow of this document
specialy starting with Cost estimate, i was always wondered when i start working in FICO
how does a cost estimate and these values flowing from where and though there are
several threads about this but i was never able to put together to understand it. it took
me longtime to understand the basics and various settings behind it. I think for non
financial folks like me it will be easier to understand the standard cost estimate screen
now.
i like the first screenshot of circles where you broke different parts and later
explained. Simple document yet incredible Kudos . i will wait for your next document.
Thanks
Prasad.
Prasad,
Thank you for your comment and encouraging words, it is always good to
receive the first positive feedback.
Thanks
Hrusikesh
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
arturo senosain
Arturo,
Appreciate your comments and it feels nice to recieve feedback from you.
Thank you
Hrusikesh
Rajneesh Saxena
Dear Hrushi
Regards
Rajneesh Saxena
Rajneesh,
Thank you
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Hrusikesh
Pankaj K Agrawal
Dear Hrusikeshji,
Thanks a lot
Kind Regards
pankaj
Pankaj,
Regards
Hrusikesh
Narasimhulu Konnipati
Hi,
Your presentations on Costing are really helpful and we expect many more like this to
understand better.
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
NSK
NSK,
It motivates me further when people like you start appreciating our work.
Thank you
Hrusikesh
David Feng
Thank You David for your motivating words and a positive rating too . It
feels good
veenu gulati
Hrushi,
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Regards
Veenu
Veenu,
Best regards
Hrusikesh
Prerna Rathore
Hi Hrusikesh,
Thanks for sharing..I can get some basic idea about FICO
Keep Sharing
Prerna,
Best Regards
Hrusikesh
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Dawood Khalid
Sampat Kumkar
Hi Hrushikesh
Regards
sampat
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
fransisco lozana
Hrusikesh,
Bravo!!Outstanding job, The concept is so clear and well formatedIt is nice to see people
sharing for community.
Thanks
Fransisco
Gracias Fransisco
BR
Hrusikesh
Naresh Krishnamoorthy
Useful oneThanks.
BR,
Naresh K.
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
I am glad you like it. i appreciate your comments and Thank you
Best regards
Hrusikesh
Srinivas Salpala
Hrushi,
Good job!!! CO area is becoming strong with quality content. Keep up the best work.!
Hello Srinivas,
BR
Hrusikesh
Lakshmi Sama
Hello Hrusikesh,
Nice effort and i am waiting for your new docs on costing and controlling concepts.
Keep Sharing
Lakshmi S
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Hello Lakshmi,
Thanks for appreciating my effort and reading the document. Yes there is
couple of other documents already i posted i will try to finish the Costing in
next couple of parts.
BR
Hrusikesh
ACR RUBEN
Hi Hrushikesh Dalal,
Very well documented. Explained in a well mannered way so that we can understand
easily.
Great work.
Keep up.
Regards
ACR.Ruben
ACR.Ruben,
Thank you for your kind words, i appreciate you read and rated the
document.
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Thank You
Hrusikesh
Mohsin Abbasi
Best Regards
Mohsin Abbasi
BR
Hrusikesh
Balaji M
Regards,
M.Balaji.
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
BR
Hrusikesh
Hello Srikanth,
BR
Hrusikesh
milk bike
Hi Hrusikesh
Thank you for the nice documentation and your time on it. One question, Im trying to
define an overhead key. It seems transaction code KOOK doesnt exist?
Milk
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Abhinav Malik
Hi Hrusikesh,
Hi Milk,
http://wiki.scn.sap.com/wiki/display/ERPFI/Product+Costing+Transaction+C
odes
Regards
milk bike
Milk,
BR
Hrusikesh
milk bike
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Hi milk,
Thanks
Hrusikesh
milk bike
Jose Reddy
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Hi Hrusikesh
Regards
Jose
Thanks Jose
Nishan Dev S
Best
narin kamuni
Regards,
https://blogs.sap.com/2013/11/15/basics-of-sap-standard-cost-estimate-understanding-the-flow-of-cost-settings-part-1/ 22/37
11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Narin Kamuni
Narin,
Thank You
Hrusikesh
Nilima Gupta
nilima.sap@gmail.com
Nilima,
Thanks for comment and i am glad to know you are keen on learning CO
process. SCN is good platform to learn.
Thank You
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Hrusikesh
BABU Y
Thanks a lot Hrusikesh Dalai for the valuable info on std cost estimation
Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1
Hello Purna,
Thanks
Hrusikesh
praneeth mamidi
The document flow is simple yet very informative and easy to understand.
Thanks
Praneeth,
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Thank You
Hrusikesh
John More
Hrusikesh,
Thanks for the time and efforts you put into publishing this valuable information. It
takes courage to do so as some might critique your work but I found this to be
exceptionally beneficial and well presented.
John,
Best regards
Hrusikesh
Sushma Reddy
Hrusikesh
A well directed for new person like me, Do you provide training for Costing in SAP?
What will be most things i need to know for good understanding about SAP Product
costing?
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Any suggestion?
Thanks
Sushma
Sushma,
Thanks
Hrusikesh
Shashi C
Hi Hrusikesh,
Presenting in screen shots its easy to understand,Thank you for sharing the document.
Rgds
Shashi
Shashi,
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Sushma Reddy
Hrusikesh,
Awesome documents specially i like the screenshots and detailed explaination. Keep
sharing. The way you explained is different and very easy to follow
Thanks
Sushma
BR
Hrusikesh
Sada Bandla
Dear Hrusikesh Dalai thank you for sharing knowledge ..really its useful doc for me..to
learn from beginning.
Regards
Sada Bandla
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Devendra F
Hi,
Devendra
Rohit P
Hi Hrusikesh,
I started reading this document and I am new to costing concepts and this document is
helping me a lot in gaining the functional knowledge. I am a BPC consultant and keen to
learn this. Also is this something related to Material cost estimate without cost quantity
structure and Material cost estimate with cost quantity structure. Actually I am trying to
understand Calculation of COGM and COGS and then I found your document. Any
content related to this please post to me.
Regards,
Rohit
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Rohit
Sure if you have questions you can ask in forum by opening a thread.I have
a series of document posted related to costing in SAP here in SCN you can
go through it.
SCN forum is always there to a post any question you have experts will
always answer it
regards
Hrusikesh
Erwin Leitner
Hello,
Erwin Leitner
Hello,
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
br erwin
JET YANG
ANIS ANTIT
thanks
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Carolyn Williams
Hi Hrusikesh, I have read the previous stream of questions/ answers and appreciate you
have a good knowledge of SAP product costing.
I have moved to SAP product costing having used another system and I have a question
regarding purchased goods. Do you know how I can add inbound freight costs to the
purchase price to arrive at a standard cost?
Carolyn
There is couple of ways to add that in standard cost either through costing
sheet or use function of addictive cost.
Thanks
Hrusikesh
Carolyn Williams
Himahshu Mehta
Dear Friend,
Nice post.
https://blogs.sap.com/2013/11/15/basics-of-sap-standard-cost-estimate-understanding-the-flow-of-cost-settings-part-1/ 31/37
11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Can you share document flow for inventory accounting considering FIFO method?
Regards
Himanshu
sunil gangaraj
Great Job Hrusikesh!!! I have gone through your series on Standard Cost Estimate, they
are well explained and documented.
Thanks
Sunil
GBENGA OLAWOYE
Dushantha Perera
Thanks
https://blogs.sap.com/2013/11/15/basics-of-sap-standard-cost-estimate-understanding-the-flow-of-cost-settings-part-1/ 32/37
11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Eric Chen
Thanks Eric
Vinay K
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Siddharth Bhatt
regards,
Siddharth Bhatt
Siddharth Bhatt
Siddharth,
Sherry Liu
Hello Hrusikesh
Thanks a lot for your great effort to make such a nice instruction! Really helpful for me!
Cheers
Sherry
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
Thanks Sherry!
CA kaushal ghedia
Thanks Kaushal
Loc Moisan
Cool doc..
thanks
Loc
Manuel Robalinho
Thanks Kaushal
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
CA kaushal ghedia
Hi manuel ,
Its Hrusikesh who drafted this . So please edit your reply in his name
-Kaushal
SHOEB KANPURWALA
Hrusikesh Dalai
I am personally very thankful to create such a good documents for Product Costing
Thank you much
sureshbabu kodali
Nice documentation
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11/17/2017 Basics of SAP Standard Cost estimate- Understanding the flow of cost settings-Part 1 | SAP Blogs
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