Issue in Product Cost Collector Costing

[former_member184595]

Hi,

We are using REM Process, i had confirmed the Planned order with MFBF for 100 EA and i have not entered any activity details , but in KKF6N, i observed that along with Material Cost, it is also considered Activity Cost, can anyone suggest from where it has picked activity details and displayed activity costs.

Please suggest, thanks in advance.

[pravin_kusumbe2]

Hi,

It is entirely depends upon the Repetitive manufacturing profile you used in a material master MRP view. Also check the Profile in Transaction OSP2.

Praveen K

[former_member185450]

Dear Aditya,

In REM Process the product cost collector (KKF6N) and SCE (CK11N / CK40N) is a mandatory to make to Back flush (MFBF)

while running the standard cost estimation system will calculate the cost of the particular material i.e. '

for SFG Component cost = R-OH cost + In process cost (According to your cycle times and MHR Rate updated in the KP26)

KKF6N: Is a product cost collector while creating product cost collector system will capture the SCE against that particular material and calculate the preliminary cost

in REM Scenario PCC is a cost carrying object hence periodic settlement will happen here I.e. at the month end we will make the settlement against PCC for all In-house materials

But in production order system : the Production order it self is a cost carrying object (settlement will happen against production order)

Regards,

Venkatesh

[former_member184595]

Hi Venkatesh,

Thanks for reply.

As mentioned in my question,We are using REM Process, i had confirmed the Planned order with MFBF for 100 EA and i have not entered any activity details , but in KKF6N, i observed that along with Material Cost, it is also considered Activity Cost.

Can anyone suggest from where Product Cost Collector has picked activity details and displayed activity costs though we have not mentioned in MFBF.

Please suggest, thanks in advance.

[former_member185450]

Dear Aditya,

For understanding that functionality first you should know

1.what is the use of PCC? and what is preliminary costing ?

2.why system is not allowing to make MFBF without PCC ?

3.How the settlement will happen in the REM Scenario ? with respect what the periodic settlement will happen

please refer the below thread for understanding :

https://scn.sap.com/thread/2145969

FYI : While creating PCC through KKF6N system will calculate the cost of 1 piece (material cost + Activity's cost)

then while making the MFBF system will multiply that cost into quantity and update the same with respect to PCC

till one month how many times we will make back flush for those transactions PCC will carry the cost

at the time of month end periodic settlement will happen against that PCC

Hope you are clear..

Regards,

Venkatesh..