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Flowing of cost components to COPA

Former Member
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Hi Experts,

I want to flow COGS based on all cost components to COPA below setting is done.

1. Define a Costing Key in KE40.. Select your Costing Variant, Select the radio button "Standard Cost Estimate" and the Period indicator as 4

   Costing Key            ZMB  Standard cost estimate MB

     Det. Mat Cost Est    Transf. Standard cost estimate

    Costing Variant       ZMB1   MB Costing Variant

    Costing Version       1

    Period Ind.             Material cost estimate matching posting date

    Plant Used             Use line item plant as cos est. plant

2. Assign the costing key to your Material Type in KE4J.. You can also assign it in KEPC.. As of now, lets take it as KE4J

01CFERT31.12.9999ZMB
01CHALB31.12.9999ZMB
01CHAWA31.12.9999ZMB
01CVERP31.12.9999ZMB
01EFERT31.12.9999ZMB
01EHALB31.12.9999ZMB
01EHAWA31.12.9999ZMB
01EVERP31.12.9999ZMB

3. Assign the Cost Components to value Field in KE4R

0110Raw Material3VV901
0120Packing Material3VV902
0130Trading Material3VV903
0140Semi. Fin. Material3VV904
0150Labor Cost3VV905
0160Diesel Cost3VV906
0170Electricity Cost3VV907
__________________________

4. Activate COPA Valuation Using "Cost estimates" in KE4U / For Point of Valuation 01, Record type F.. (Read the SPRO Help for IMG Node:- ORKE > Master Data > Valuation > Valuation Strategies)

Valuation Strategy

ZMB

Valuation Strategy MB

Details

Seq     Appl     Costing Sheet     Desc     Mat. costing     Qty Field

10                                                                           x                    VVIQT

Assignment of Valuation strategy

PV     Rec     Pl Ver     Val Strat

01     F                                ZMB

Accepted Solutions (1)

Accepted Solutions (1)

ajaycwa1981
Active Contributor
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Hi Sagar Bhau

You did not mention what is the issue.. you just mentioned what you have done

Your configuration seems correct to me... I hope VVIQT is what you have assigned to SD QTy Field in KE4M

Ensure that Cost estimate is released before you release Billing Doc.. You can also activate the check box in costing key to "Issue error msg if no cost est found".. This would give you error if cost estimate is missing

br, Ajay M

ajaycwa1981
Active Contributor
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Oops.. I missed one thing

In KE4J, you did not assign Costing Key to Record Type F

Br, Ajay M

Former Member
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Sir,

My issue is no cost components flowing to COPA even after settlement of order.

Under KE4M i have assigned ABSMG VF for billed Qty FKIMG

VVQTY is Issued Qty for Production under KE4U

> Did i missed this setting? Do i need to mention all the cost components under KE4U if yes system is asking for costing sheet? if required where to define this costing sheet for COPA.

Thanks

Sagar C'kar

Former Member
0 Kudos

Sir,

I have maintained KE4J for record type F.

Now also even after cost releasing after ck24 no document created for COPA, But yes its the cost estimate for new material with 0 QTY. so no FI entries generated for this.

Issue is for this components system will generate COPA document at the time of

Cost estimate release or order settlement or during billing?

Thanks

Sagar C'kar

ajaycwa1981
Active Contributor
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Hi Sagar

What you are pursuing is not logical

1. Create a Prod Order -> Issue components (FI)-> Confirm Activities (CO)

2. Do the GR - Posts a Doc in FI

3. Settle the Prod order - Posts Variance doc in FI / COPA

4. Do the PGI  -Posts a doc in FI

5. Do the billing - Posts the doc in FI / COPA.. It is at this stage, that you should update the Cost Split to COPA using the config you did... Assign ABSMG in KE4U instead of VVQTY

I dont know why you are trying to post to COPA during GR.. When you are doing GR, the entry is Stock A/c Debit and COGM a/c Credit... COGM is posted to Prod order.. There is no question of COPA update during GR

COPA is meant for Profitability Analysis.. Profit means Revenue-Cost.. Hence, COPA is updated during Billing with both Revenue and Cost Details so that you analyze your profit out of it

In the above steps, COPA is updated at Step 3 and Step 5..

Step 5 is what I have explained in earlier thread.. you did all the config for the same.. Just ensure you include rec type F in KE4J

To update COPA at Step 3, you need to tick "VAriances to Costing Based COPA" in your Prod order's settlement profile

You need to have a PA Transfer Structure assigned in your settlement profile inorder to update variances to COPA.. You can update the variances in 2 ways - One as per Variance Categories (Input Price Var, Input Qty Var, etc).. Second, you can update as per Cost Component Split.. You need to decide what you want

Hope this helps

Br, Ajay M

Former Member
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Sir,

Million Thanks for all the help.... We have successfully transferred the cost components values to COPA.

Only small issue facing is after billing system transferred planned values for all the components

and not the actual confirmed values of all components.

For. e.g.

For Labour activity as per plan 2 AED is the value but at the time of activity confirmation it is 4 AED

After billing system transferred 2AED to COPA (Its totally fine to flow planned activity) for actual confirmed activity 4AED (how to flow to copa as i want to look into plan v/s actual comparison)

Revenue i will plan through KEPM. And cost components i will flow through above mentioned procedure.

Last hurdle for me to achieve my goal....

waiting for your reply....

Thanks

Sagar Chinchkar

ajaycwa1981
Active Contributor
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Hi Sagar

System transfers the Standard Cost Comp Split to COPA upon Billing

If you want actual cost comp split, then Material Ledger must be activated.,. Without ML, System transfers Std Cost Comp Split during Billing and the Variances separately when you settle Prod orders

You can settle the variance also as per the Cost Component split if you wish

Br, Ajay M
PS: By the way, why are you marking your own answers as helpful

Former Member
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Sir,

Oops... Galati se mistake ho gaya

Does this mean i can define input variance for each cost component.

Like RM/LAB/DIE/ELE/PRD Variance

Can i do like this....

Standard Cost estimate

COMP   Planned   VF         Price Var.       VF

RM           5         VV001        -50          VVZ01

LAB          1         VV002          2           VVZ02

DIE           2         VV003          2           VVZ03

ELE          2         VV004         -1           VVZ04

I have already mapped planned values of cost estimate to different VF

if i map price variance to other VF's and in COPA report by using formula

RM = VV0001 + VVZ01 = Actual cost

Does this work..... Because Price variance is difference between plan V/S Actual

Thanks

Sagar Chinchkar

Former Member
0 Kudos

Sir,

I am trying to settle variance based on Cost component structure.

I have maintained PA transfer structure for FI

Secondary Cost element for Labour mapped with VF (VVLVR) 

After settlement of order and Billing it is not posting any values to COPA for VVLVR.

It will be a great help if you share the required settings to send the variance based on cost components.

Thanks

Sagar C'kar

ajaycwa1981
Active Contributor
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Hi Bhau

Don't use PA Trf Star FI for this. You must use a different one and assign that in your settlement profile

Inside the PA trf Str, create as many assignment lines as no of cost components in your cost comp structure.

In source, assign the same cost element that you assigned in your cost comp str. Tick the radio button Costs/ revenues instead of Variances for each assignment... that's it

Basically your PA trf str and cost comp str should be 1:1

Br. Ajay M

Answers (2)

Answers (2)

former_member189209
Active Contributor
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Hi

I think u missed assign Costing Key to Record Type F in KE4J

jose_reddy
Contributor
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Hi Sagar,

Please ensure what kind of business scenario you are in, because based on the business scenario (either MTS, MTO, ETO etc) only the values will flow to COPA at different point of time. And at the same time, please ensure what values you are expecting to flow to COPA (either COGS or cost component structure values).

As rightly suggested by Ajay sir, please make settings in KE4J for record type F for the material types you require, if you want to make the cost component values flow to COPA at the time of billing.

Regards..

Jose