Material Consumption Account planning

[amit_bhattacharyya2]

Dear Gurus,

Can anyone tell me why material consumption is not planned (the consumption GL accounts in KP06).

Thanks in advance,

Amit

[ajaycwa1981]

Hi Amit

Only overheads are planned in KP06.. Mat Consumption account being a direct cost is not planned in KP06...

In actuals also, overheads are accounted in cost centers, where as material consumption is charged directly to production orders...

hence, it makes sense not to plan material consumption in cost centers.. However, even if you plan, its not wrong.. however, note that actuals of mat consumption wont be posted to cost centers, but to Prod orders

BR,Ajay M

[amit_bhattacharyya2]

Hi Ajay,

Thanks for your explanation.

I want to know why the direct costs are not planned? Why only the indirect costs are planned?

Regards,

Amit

[Former Member]

Hi,

KP06 is a planning transaction from CO-OM (Overhead Management), which is most of the time cost center related planning.

If you use production / process / maintenance orders,... these are the objects where direct material cost occurs / is planned.

Only the material consumption that can not be assigned to these objects is planned using overhead planning.

best regards, Christian

[ajaycwa1981]

Hi

You can plan material cost in Cost Centers.. No harm.. But, actual material consumption is posted to Production orders and not Cost centers... hence, it makes no sense to plan material costs at Cost Centers

However, material costs like Spares, consumables which are posted in cost centers can be planned at Cost Center level

BR,Ajay M

[amit_bhattacharyya2]

Hi Ajay,

From SAP perspective, it is clear why we do not go for material consumption planning. Functionally why direct costs (which are taken in Trading account, adjusted against the Revenue and we get the Gross Profit) are not planned?

Kindly reply me the functional reason. From SAP side, you already have told me the answer.

Regards,

Amit

[Former Member]

HI,

can you be more specific? How did you enter your plan values,...

Best regards, Christian