Cost deletion ckr1

[Former Member]

Dear experts

, I have FERTs which consist of BOM and routing, i will release the Standard cost for all Ferts,

But my raw materials prices flucatuates every day ,But i cant estimate Standard Cost more than once in same month.

is it possible to Release the Standard cost more than once in same month

and if i use standard cost delete ckr1 ,wat the impact will have

[former_member588855 · Accepted solution]

Standard cost estimate is released once in a month only.

Though the system allows you to release more than once but it is not recomended as there will more one standard price available for the same material which may lead inappropriate variance calculation and other inconsistency may crop up.

However if wrong estimate gets calculated we do delete the standard cost estimate otherwise never.

Regards,

Divraj

[Former Member · Accepted solution]

Dear Viraj,

My business process demands cost run more than once in same month,becoz as i told my raw material prices flucataions are so high ,

my raw material prices increasesing drastically after cost relese and sometimes prices are falling down frequenlty.

so i cant use same cost cost for whole month

[former_member588855 · Accepted solution]

In the strategy sequence of valuation variant there are many options of valuating the product. You can explore them if they can suit your need.

Ideally there should be a single cost run only because at the end of the month you do revaluation and settlement of production orders.

Have you activated Material Ledger in your scenario. I think it is very much required.

Regards,

Divraj

[venkatasatyakrishna_achan · Accepted solution]

hi

Its not at all recomended to run the standard cost estimate more than once in a month, if the raw material prices are changing drastically, its better you activate material ledger and calculate the periodic unit price. Use this periodic unit price as standard cost estimate for the next year

SAP recomends, to use Material ledger concept if the material prices are changing drastically

Krishna

[Former Member · Accepted solution]

Suknder, you need to explain more aout what your business process really needs - you can do many different things, but without a proper requirement, it is difficult to give a proper design.

I.e. Does business want to manage the procurement cost of raw materials?

Do they want to manage sales prices using this information?

How often do they need this information to be updated?

Does the new costing run have to be updated into FI as well?

Why does your end material have to be Standard Price, why not change it to MA?

Depanding on these answers, you will do something at the time of purchase in the system, at the time of sales, and help you decide whether you need the ML or not.

[Former Member]

Hi....

Your main issue is heavy fluctuation of raw material prices even day to day basis. So far I understand your raw materials are having Price control "S" and price determination is "3" and you have not activated ML. under this scenario you have two option to make your raw material fluctuation truely reflected in cost :

1. Activate ML which I think a top level decision and will take time, but give you comfort for ever.

2. Make Price control and Price determunation V & 2 for your raw materials but one thing remember there should not be any delay in raw material invoicing otherwise if you issue the material before invoicing the price will not reflect the current one.

Both the decisions have few advantages and disadvantages. But in your case if you really want to calculate the cost at current price option 2 is better where you should not bother about standard cost release for every change in raw mat price.

kkumar

Edited by: kkbdsp on Sep 19, 2011 12:24 PM