cancel
Showing results for 
Search instead for 
Did you mean: 

Report of production : Standard cost + variance

Former Member
0 Kudos

Hi

We have not decided to use Material Ledger for actual costing. However I want to have a report showing the actual cost of the quantity produced. (Not quantity sold) i.e. Standard Cost + variance report. Is there a standard report for this or should I go for a development ?

Accepted Solutions (1)

Accepted Solutions (1)

ajaycwa1981
Active Contributor

Hi Niki

There are many standard reports on this.. Go to KKO0 and you can see lot of reports

You need to do following settings to use KKO0

1. Go to OKN0

2. Assign Cost Comp Str there and choose Material Group as Product Group

Transport these settings and then execute KKRV periodically.... Finally execute KKo0 reports

You can design your own report as well using KKO4.. if you need help in that, let me know

Regards

Ajay M

Former Member

Hello Ajay

I think it would be indeed helpful for me.

As you said, I assiged Cost Comp Str and Material Group in OKN0. Then I executed KKRV and thereafter executed KKO0. I found separate reports of variance, actual cost etc. In the actual cost report also, it is coming like Actual Dr. and actual Cr. But I hope I had a report with standard cost + variance = Actual cost.

I want to have a report with columns like this:

Material price, Labour price , overhead, other costs, variance, total cost.

Can I create it using KKO4 ? If you can help me out in that, it would be a great help.

ajaycwa1981
Active Contributor
0 Kudos

Hi Niki

Yes, you can define the report from KKO4.. I made my own report using it

1. Add one more cost component in your OKTZ... i.e. Copy your cost component Structure and add one more entry to it... Name it as COGM and add the COGM account to this cost component

Assign this cost comp str in OKN0

2. Now go to KKO4

3. The Output Column shall look like this

http://img529.imageshack.us/img529/2379/kko0controlchartreportf.jpg

4. The Columns like Raw Material, Labor, Power etc...show the Actual Cost incurred in Prod Order

http://img132.imageshack.us/img132/2379/kko0controlchartreportf.jpg

5. Then Add up the Columns for Actual cost like this

http://img404.imageshack.us/img404/2379/kko0controlchartreportf.jpg

For 6 & 7, the Cost Component would be the same i.e. COGM Cost Component

6. Then Show the std cost of Goods Receipt posted from prod order

http://img193.imageshack.us/img193/2379/kko0controlchartreportf.jpg

7. Then Show the Variance column like this

http://img829.imageshack.us/img829/2379/kko0controlchartreportf.jpg

8. Finally, you can show variance categories like this.. Create one column for each variance category...

http://img641.imageshack.us/img641/2379/kko0controlchartreportf.jpg

This, in my opinion, is one of the best reports SAP can give

Regards

Ajay M

Former Member
0 Kudos

Hi Ajay

You told me to copy our standard cost comp str to another one. I wonder what is the purpose of that ? Can't we use the same Cost Comp Structure ? Then why we want to add another item in the structure "COGM" ? That we can add up the components of our cost component structure and it would be the COGM right ?

ajaycwa1981
Active Contributor
0 Kudos

Hi Niki

Once you do it, it will be more clear to you...

Prod order has 2 types of values - Debits and Credits

the Debits you are classifying under the cost components like RA, Labor, power, etc

The credits are on account of GR and on account of Settlement (Variance)... The account here is COGM account.... So if you dont add COGM component to your CCS, then the Credit will not appear as any cost component... It will appear as Un assigned

Simply said, we are creating COGM and Variance also as Cost Components so that every thing appears as Cost Comp

The Idea is to show -


>

............Actual Cost........ ,..........Std Cost & variances.................

RM Lab Power Machine GR (COGM a/c) Variance (COGM)

Regards

Ajay M

Former Member
0 Kudos

I'm not sure that Ajay put you entirely on the right track here.

Material ledger passes on all variances from raw materials and semi-finished products to your finished products in the actual cost run. You will NOT see these actual costs by finished product in KKO0. Material ledger doesn't post anything to production orders.

ajaycwa1981
Active Contributor
0 Kudos

Hi Nikolas

I am not saying ML will pass on values to KKO0

Niki said that ML is out of scope for her.... So my replies are based on that

Regards

Ajay M

Former Member
0 Kudos

I'm sorry, I missed the little word "not" in the original post, possibly because it is oddly placed in the sentence.

Edited by: Nikolas John on Nov 30, 2010 1:52 PM

Former Member
0 Kudos

Hello Ajay

I have copied the CCS to another one in OKTZ. Should I make that CCS with 'Active' indicator ?

Former Member
0 Kudos

Hi Ajay, I am creating a report with name ZAct001. As you instructed, I have created the form and the report is being developed based on that form.

In the Form, Which all fields I should select for (1) Characteristics (2) Variables ?

Please guide me.

ajaycwa1981
Active Contributor
0 Kudos

Hi

In the form

It is enough to select Period/Year AND PLANT as the Char in Edit > Gen Data Selection

Select Char Comp code in the Row....

You can define these things as Variables and enter at the time of execution

In the report

Select MAterial/Order, etc as drilldown chars in the report

Regards

Ajay M

Former Member
0 Kudos

Hi Ajay

When I execute the report, all the fields except Quantity is coming as blank. I have assigned the newly created copied CCS in OKN0. I have created an extra line for COGM and assigned the cost elements against that. Still why the fields in the report are coming as blank ? Do I need to do any other settings ?

ajaycwa1981
Active Contributor
0 Kudos

Hi

Did you execute KKRV again?

Also, In each Column - You should specify your newly created cost comp str,say,ZZ and the Cost Component (10,20,30,etc)

The Field Cost Component wont provide you any f4 help.. You need to manually enter the Cost Component No

Regards

Ajay M

Former Member
0 Kudos

Yes Ajay. I executed KKRV again and now Material, Labour and Machine Cost fields are coming with values. But values for overhead columns, standard cost of actual quantity, variance are with zero values.

I have executed actual overhead calculation using KGI2 before executing this report and actual overhead is also calculated for the process orders. Correct cost component structure and the component items for overheads are also correctly assigned. Still values are zero.

Why overheads, standard cost and variance are appearing with zero values ?

Former Member
0 Kudos

Sorry Ajay. Some cost element assignment was not proper. I have done it right now and the values are coming now. Thanks.

Former Member
0 Kudos

But Ajay..

the reported figures are I feel in correct (or I am interpreting it as incorrect). Please correct me..

Total Actual Cost = 154478

Std Cost-Actual = 144794-

Variance = 6661.86

But I feel, the variance should be 9684, right ?

ajaycwa1981
Active Contributor
0 Kudos

Hi Niki

Yes, the variance should be difference of Actual Cost and Std cost, 9684 in your case...

Include Prod Order as a Drill down field in KKO2 and drill down on production order after executing KKO0 report...

Check your prod order.. What is the variance posted there? and Compare it with KKO0 report...

May be, your prod order was partly delivered in One month and subsequent processing carried in one month... Thats why it is important that you execute KKRV once a month after your period end cycle is complete..

Execute KKO0 for One month exaclty and compare with CO03.... I have never found the values to be incorrect

Regards

Ajay M

Former Member
0 Kudos

I have included the order in the drill down and I find the following:

From Cor3 : Order cost analysis:

COGM : Target cost = 0; total actual costs = 6061.50 (this entry I think is for the variance calculation)

COGM : Target cost = 11985-; Total actual costs = 17311.50-, variance 5326.50- (this entry I hope is for goods receipt)

For Labour cost, Total target = 360; but total actual cost is zero

For o/h labour , total target = 10; but total actual cost is zero

For Machine cost, total target=140, but toal actual cost is zero

For RM Consumption, total target = 11250; total actual cost = 11250

For O/h material, total target = 225; total actual cost = 225

I dont get why total actual cost is zero for labour cost (activity type), o/h labour, machine cost (activity type) where as RM and o/h RM are having values ?

The above is accordingly reflecting in the report.

ajaycwa1981
Active Contributor
0 Kudos

Hi Niki

You will hve to find out why values are zero in COR3....

If your Cost elements appearing in process order are mapped in OKTZ -> OKN0, then after KKRV execution, your KKO0 reports should show the same value

Regards

Ajay M

Former Member
0 Kudos

I am wondering why actual cost for material is calculated whereas actual cost of labour is not calculated. Is there any relation to the Actual activity price price calculation and revaluation of Process order ?

ajaycwa1981
Active Contributor
0 Kudos

Hi

Check your activity prices and operation confirmation

If you have revaluated, check if actual activity price is not zero

See if any error is lying in T code COFC

Regards

Ajay M

Former Member
0 Kudos

Hi Ajay

I tried to run the revaluation of process orders using CON2 transaction. I get some error messages like this:

Production order with an actual activity update.

Message no. KA465

Diagnosis

In the plan, activity updates are relevant to price determination. The system uses a multi-level price determination in actual costing. In actual costing, the system already debited materials and credited the cost centers, and vice versa.

System Response

The system does not execute revaluation, to avoid posting the credits and debits twice.

|What does this mean ? We dont have ML here.

ajaycwa1981
Active Contributor
0 Kudos

Hi

From the msg it seems that you have tried your hand on ML... I think it is active... Can you check

Regards

Ajay M

Former Member
0 Kudos

No.. Ajay I have not activated ML for any of the plants here. I checked in OMX1 and ML Act check is not done.

Former Member
0 Kudos

But I had made the Actual Costing check active for all the plants. Will that be a problem without ML ?

ajaycwa1981
Active Contributor
0 Kudos

Hi

I think it will be a problem.. I am not an expert in that area...

I think you should open a new thread for that

Ajay M

Former Member
0 Kudos

Ajay, please tell me:

a) For actual activity price calculation, actual costing setting is required ?

b) For revaluation of Production Order, actual costing is required ? I am also thinking how the variance will be affected if we do the actual activity price calculation and Revaluation of Production order

ajaycwa1981
Active Contributor
0 Kudos

No Niki, thats not required

Ajay M

Former Member
0 Kudos

Hi Ajay..Thanks for your input. If you dont mind, let me ask you one more thing.

For variance display in the report, you had given me to include these values:

value type 31

Variance Category PRIV, ec.

Valuation View 0

Target Cost 0

Through the above I can show the Variance category such as input price variance, input quantity variance, etc.

But If I want to create a report showing variance after each item viz.[ Material-Std Cost , Material-Variance] etc., how can I proceed ? (I mean, how can I show variance against each item i.e. material price and variance relating to Material, Labour Price and Variance relating to Labour, etc. )?

In the cost analysis of process order I find Target cost, Actual cost and variance against each ite.

Former Member
0 Kudos

Hi Yarr,

My requirement is that have a report std vs actual cost (rm, sfg, fg conversion & OH and Cogm also)

i think u made a report using Okn0. if u dont mind could you share with me

Former Member
0 Kudos

Hi Yarr,

My requirement is that have a report std vs actual cost (rm, sfg, fg conversion & OH and Cogm also)

i think u made a report using Okn0. if u dont mind could you share with me

Former Member
0 Kudos

Hi Ajay,

First of all thank you very much for the information. We want to have material wise production quantity and other costs in columns.

Please let us know how to bring PRODUCTION quantity variable in the characteristic.

Please refer to the following image.

Thanks

Vishal

Former Member
0 Kudos

Dear Ajay,

Thanks for the info you provided.

How to add General Ledger Actual expenses as column in the report i.e. salary.

currently in the report salary is calculated as defined in the overheads elements.

Thanks!

Vishal

Former Member
0 Kudos

Hi Ajay,

Thanks for your Valuable inputs.

I followed the same process to generate the requirement as you mentioned. Everything works fine except  for the SFG materials which is consumed. Here I had two options for giving a report to 1. to include the Break up of SFG as cost components. 2. SFG as a single component. Since the material(SFG) is at standard valuation, I don't require the assignment of consumption GL(SFG)  in Standard Cost Component structure. How ever i added the same as a separate cost component in alternative Cost component Str which was created for this report. I tried in both ways to get the SFG cost by adding and deleting the SFG Component ,how ever its not getting updated. Can you please suggest on this.

Thanks and Regards,

venkat

Answers (1)

Answers (1)

Former Member
0 Kudos

Thanks for the input.

Former Member
0 Kudos

This message was moderated.