SAP PP Tcode

Production Orders tcodes
PP-SFC
CO11N - Single Screen Entry of Confirmations

COGI - Postprocess Faulty Goods Movements
COOIS - Production Order Information System
CO02 - Change Production Order
COMP - Customizing Missing Parts Info Syst.
CO01 - Create production order
CO15 - Enter Production order Confirmation
OPL8 - Order type parameters: Overview
CO03 - Display Production Order
OPK4 - Confirmation Parameters
OPJJ - Maintain Scope of Check
COSS - Transport of C Tables
OPJK - Maintain Control
COHV - Mass Processing Production Orders
CO11 - Enter Time Ticket
..... - ..................................
Full list of SAP PP Production Orders tcodes PP-SFC
Repetitive Manufacturing tcodes
PP-REM
MFBF - Backflushing In Repetitive Mfg

MF60 - Pull List
MF50 - Planning Table - Change
MF47 - Open Reprocessing Records / Pr.Line
OSPP - Customizing for Pull List
MF42N - New Collective Entry
MF41 - Reverse Backflush (With ALV)
MF30 - Create PrelimCostEst - ProdCostColl.
MF12 - Display Document Log (With ALV)
COWBHUWE - GR HU for Production Order
MFPR - Process Inspection Lot for Versions
OSP2 - Repetitive Mfg Profile
MF70 - Aggregate Collective Backflush
MF65 - Stock Transfer for Reservation
MF57 - Planning Table - By MRP Lists
..... - ..................................
Full list of SAP PP Repetitive Manufacturing tcodes PP-REM
Information System tcodes
PP-IS
MCRE - Material Usage Analysis: Selection

MCRX - PP-PI: Material Usage Analysis
MCRP - Matl consumptn anal.: repetitive mfg
MCP1 - SFIS: Operation Analysis Selection
MCP6 - Goods rcpt analysis: repetitive mfg
MCRM - Reporting Point Stats.: Selection
MCP9 - SFIS: Select Run Schedule

MCPK - Operation analysis: Quantities
MCRI - Product Cost Analysis: Selection
MCPM - Production order anal.: Quantities
MCP7 - SFIS: Work Center Analysis Selection
MCP8 - Goods rcpt analysis: repetitive mfg
MCRO - Matl consumptn anal.: repetitive mfg
MCP3 - SFIS: Material Analysis Selection
MCPY - Work center analysis: Lead time
..... - ..................................
Full list of SAP PP Information System tcodes PP-IS
KANBAN tcodes
PP-KAB
OM17 - Define Actions for Status Switching

PK13N - Kanban Board: Demand Source View
PKBC - Chnge Container Status With Bar Code
PK01 - Create Control Cycle
PKMC - Control Cycle Maintenance
OM16 - Maintain Kanban Status Sequences
PK05 - PP Maintain Supply Area (Kanban)
OM13 - Control Profile: Stock Transfer
LPK1 - Create Control Cycle for WM
PK07 - Kanban Calculation
PK00 - Kanban
PK17 - Collective Kanban Print
PK21 - Change Kanban Container Status
OM19 - Kanban Calculation Profile
PK02 - Change Control Cycle
..... - ..................................
Full list of SAP PP KANBAN tcodes PP-KAB
Flow Manufacturing tcodes
PP-FLW
MDVP - Collective Availability Check PAUF

LD00 - Line Design
LDB1 - Create Line Hierarchy
LAS2 - Change Sequence Schedule
LDB2 - Change Line Hierarchy
LDB3 - Display Line Hierarchy
OSQ2 - Customizing for Sequencing: Planning
LDE1 - Work Instruction for Routing
LAS3 - Display Sequence Schedule
LDD1 - Create Line Balance
LDD2 - Change Line Balance
Production Planning for Process Industries tcodes

CORA - Process Order: Schedule Ext. Relshps
PP-PI
CORR - Collective Entry of Confirmations

COR6N - Single Screen Entry of Confirmations
COR1 - Create Process Order
C223 - Maintain Production Versions
COR2 - Change Process Order
COR6 - Single Process Order Confirmation
C201 - Create Master Recipe
COAL - Read Order Record from Archive
CO54 - Message Monitor
COR3 - Display Process Order
CORS - Cancel Process Order Confirmation
CORK - Process Order Confirmations (Total)
C202 - Change Master Recipe
CORY - Cust.:Production Scheduling Profiles
..... - ..................................
Full list of SAP PP Production Planning for Process Industries tcodes PP-PI
Plant Data Collection tcodes
PP-PDC
CI42N - PP-PDC: Download Operations

CI44 - Delta transfer of operations for PP
CIP2 - CC2: Update PDC messages
CI41 - Communication parameters for PP
CI39 - Delta transfer of operations for PS
CIPV - Posting PDC records
CB35 - Upload request for CC3
CI42 - Init. transfer of operations for PP
CB42 - Initial Download of Orders via CC2
CB32 - Initial Download of Orders via CC3
CB34 - Delta Download of Orders via CC3
CB44 - Delta Download of Orders via CC2
CI43 - Transfer of master data for PP
..... - ..................................
Full list of SAP PP Plant Data Collection tcodes PP-PDC
Material Requirements Planning tcodes

MD04 - Display Stock/Requirements Situation
MD02 - MRP - Single-item, Multi-level MD01 - MRP Run
OMIT - Start Date in the Past
MDBT - MRP Run In Batch
MD03 - MRP-Individual Planning-Single Level
MD05 - Individual Display Of MRP List
OPPQ - C M MRP Plant Parameters for MRP
MD50 - Sales order planning
MSDS - LTP Evaluation Report Coverages
MD06 - Collective Display Of MRP List
PP-MRP
MD51 - Individual project planning

MD11 - Create Planned Order
MD21 - Display Planning File Entry
MDAB - Planning File - Set Up BATCH
..... - ..................................
Full list of SAP PP Material Requirements Planning tcodes PP-MRP
Production Planning tcodes
PP-MP
MD61 - Create Planned Indep. Requirements

MD62 - Change Planned Indep. Requirements
MD74 - Reorganization: Adapt Indep.Reqmts
MD63 - Display Planned Indep. Requirements
MD81 - Create Customer Indep. Requirements
MD73 - Display Total Indep. Requirements
MD75 - Reorganization: Delete Indep.Reqmts
OMID - Maintain Number Range: Indep.Reqmts
MP38 - Total Forecast Run
MD70 - Copy Total Forecast
MP30 - Execute Material Forecast
MS64 - Create Simulation Version
MD76 - Reorg: Delete Indep.Reqmts History
MP00 - Material Forecast Menu
MD72 - Evaluation; Charac.Plnng Techniques
..... - ..................................
Full list of SAP PP Production Planning tcodes PP-MP
Change Analysis tcodes
SV-SMG-DIA-APP-CA
CCDB - CCDB Administration
Alternative historical data tcodes
BW-BCT-PP-AHD
S_B71_29000014 - Start Excel with BW Add-On and
Exception Management tcodes
SV-SMG-DIA-APP-EM
EXCEPTION_MANAGEMENT - Exception Management
Web Channel Product Catalog tcodes
WEC-APP-PCT
CRMD_MDM_FILTER - Maintain filter criteria for MDM
Read more: http://www.tcodesearch.com/transaction-codes/search?module=pp#ixzz4KJCiSqrX
CO11N - Single Screen Entry of Confirmations

COGI - Postprocess Faulty Goods Movements
COOIS - Production Order Information System
CO02 - Change Production Order
COMP - Customizing Missing Parts Info Syst.
CO01 - Create production order
CO15 - Enter Production order Confirmation
CO03 - Display Production Order
COSS - Transport of C Tables
COHV - Mass Processing Production Orders
CO11 - Enter Time Ticket
..... - ..................................
Full list of SAP PP-SFC General tcodes
Order Planning tcodes
PP-SFC-PLN

OPKP - Shop floor control profile
OPJH - Order types production order
OPK8 - Maintain print control prod. orders
OPK0 - Confirmation Parameters PP
OPJ2 - Production order stock determination
OPJB - Specify system messages
OPJG - Maintain Default Values
OPJ8 - Maintain Operation Control Key
OPJF - Automatic Selection
OPKA - Maintain Movement Types
OPLE - Strategy types: Batch determ. (prod)
..... - ..................................
Full list of SAP PP-SFC Order Planning tcodes PP-SFC-PLN
Order Closing tcodes
PP-SFC-CPL
CO78 - Archiving orders

COA1 - PP: Archiving orders - preparation
COA3 - PP: Archiving orders - retrieval
COA2 - PP: Archiving orders
COA9 - PP: Archiving delete orders
COA4 - PP: Archiving order - administration
Read more: http://www.tcodesearch.com/transaction-codes/search?module=pp-sfc#ixzz4KJDOhBG0
Process Order tcodes
PP-PI-POR

COR4 - Customizing Process Order RecTypePar
COID - Select Object Detail Lists in PP-PI
CORM - Mass Processing
CORT - Display Process Order Confirmation
CORO - Create Process Order w/o Material
..... - ..................................
Full list of SAP PP-PI Process Order tcodes PP-PI-POR
Basic Data tcodes
PP-PI-MD

CRC1 - Create Resource
C210 - Delete Costing Ind. for Operations
C203 - Display Master Recipe
CRC2 - Change Resource
CRC3 - Display Resource
C252 - Print Production Versions
C211 - Delete "Flexible Duration" Ind. Oper
C251 - Print Master Recipes
C298 - Delete Master Recipes
OPN0 - Master Recipe Profile
C261 - Change Document Display Master Rec.
C260 - Recipe Development on Time Basis
..... - ..................................
Full list of SAP PP-PI Basic Data tcodes PP-PI-MD
PP-PI
General tcodes

CORY - Cust.:Production Scheduling Profiles
..... - ..................................
Full list of SAP PP-PI General tcodes
Process Management tcodes
PP-PI-PMA

CO60 - Find PI Sheet
CONC - No.Range for CtrlRecipes: COCB_CRID
CO53 - Control Recipe Monitor
O10C - Assig. Ctrl Rec. Dest./Proc. Instr.
O12C - Assign Charact. / Proc. Instr. Cat.
CO57 - Create Message Manually
CO58 - Maintain PI Sheet
CO55 - Worklist for Maintaining PI Sheets
O13C - MessCat./Dest./Chars./Target Fields
CMXSV - Standard XStep Repository
O23C - Client Copy of PP-PI Characteristics
CONM - No.Range for Proc.Messages:COCB_MSID
CO51 - Send Process Messages
CO56 - Display PI Sheet
..... - ..................................
Full list of SAP PP-PI Process Management tcodes PP-PI-PMA
Production Campaign tcodes
PP-PI-PCM
PCA1 - Creating a Production Campaign

PCA2 - Change Prod. Camp.: Initial Screen
PCA3 - Display Prod. Camp.: Initial Screen
Process Data Documentation tcodes

COEBR - Batch Record
COCS - Batch Record: Signature Strategy
PP-PI-PDO
Material Identification and Reconciliation tcodes
PP-PI-MIR
MIRCMR - Material Reconciliation

MRCHVW - Batch mgmt with reconciliation
MR_BEWART - Material Reconciliation
MR_FORM - Reconciliation: Formula
MR_PARAM - Reconciliation: Formula Parameter
O22C_VHUMI - Copy Message Cats Mat.Ident./Reconc.
O23C_VHUMI - Copy Material Ident. Characteristics
Read more: http://www.tcodesearch.com/transaction-codes/search?module=pp-pi#ixzz4KJE2RTMD
CK11N - Create Material Cost Estimate CO - Product Cost Planning

KP26 - Change Plan Data for Activity Types CO - Cost Center Accounting
CK40N - Edit Costing Run CO - Product Cost Planning
CK24 - Price Update with Cost Estimate CO - Product Cost Planning
CKR1 - Reorganization in Product Costing CO - Product Cost Planning
CK13N - Display Material Cost Estimate CO - Product Cost Planning
OKTZ - Cost Comp. Str (View Cluster Maint.) CO - Product Cost Planning
KSPI - Iterative Plan Price Calculation CO - Cost Center Accounting
CR02 - Change Work Center PP - Work Center
OKKN - Costing Variants for Product Costing CO - Product Cost Planning
ME1M - Info Records per Material MM - Purchasing
OKK4 - Valuation Variants for Prod. Costing
Read more: http://www.tcodesearch.com/tcodes/search?q=ck11n#ixzz4KJRDXoPf
CK11n = Create cost estimate

CK24 = Mark / Release cost estimate
CKR1 = Delete Cost estimate. This will then allow you to run ck11n again.
Description
CK11
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Module
Top Module
Component
Create Product Cost Estimate
CRM
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CRM
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BBPC
CK11N
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Create Material Cost Estimate
CRM
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CRM
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BBPC
CK13N
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Display Material Cost Estimate
CRM
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CRM
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BBPC
Create Order BOM Cost Estimate
CRM
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CRM
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BBPC
CRM
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CRM
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BBPC
Display Order BOM Cost Estimate
CRM
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CRM
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BBPC
CK51
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CK51N
CK53
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CK53N
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CRM
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CRM
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BBPC
CK74N
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Create Additive Costs
CRM
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CRM
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BBPC
CK75N
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Change Additive Costs
CRM
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CRM
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BBPC
CK76N
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Display Additive Costs
CRM
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CRM
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BBPC
CK77N
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Create Additive Costs
CRM
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CRM
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BBPC
KKPAN
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Create Cost Est. w/o Qty Structure
CRM
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CRM
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BBPC
KKPBN
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Change Cost Est. w/o Quantity Struct
CRM
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CRM
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BBPC
KKPCN
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Display Cost Est. w/o Qty Structure
CRM
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CRM
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BBPC
KKPDN
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Create Cost Est. w/o Qty Structure
CRM
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CRM
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BBPC
CK11N Analytics - Package
CK
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TCode
Description
Module
Top
Module
Compo
CK00
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Product costing initial screen
CRM
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CRM
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BBPC
CK11
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Create Product Cost Estimate
CRM
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CRM
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BBPC
Create Material Cost Estimate
CRM
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CRM
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BBPC
Display Product Cost Estimate
CRM
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CRM
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BBPC
Display Material Cost Estimate
CRM
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CRM
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BBPC
CK11N
CK13
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CK13N
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CK31
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Print Log of Costing Run
CRM
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CRM
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BBPC
CK33
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Comparison of Itemizations
CRM
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CRM
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BBPC
Edit Costing Run
CRM
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CRM
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BBPC
Analyze Statistics for Costing Run
CRM
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CRM
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BBPC
CK40N
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CK40N_STAT
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CK41
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Create Costing Run
CRM
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CRM
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BBPC
CK42
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Change Costing Run
CRM
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CRM
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BBPC
CK43
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Display Costing Run
CRM
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CRM
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BBPC
CK44
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Delete Costing Run
CRM
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CRM
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BBPC
TCode
Description
Module
Top
Module
Compo
CK45
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Delete Costing Run in Background
CRM
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CRM
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BBPC
CK51
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CRM
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CRM
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BBPC
CRM
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CRM
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BBPC
CRM
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CRM
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BBPC
CRM
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CRM
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BBPC
CK51N
CK53
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CK53N
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CK66
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Mark Run for Release
CRM
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CRM
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BBPC
CK68
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Release Costing Run
CRM
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CRM
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BBPC
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CK11N Analytics - Parant Package
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TCode
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0KEW
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Top
Modul
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Module
Comp
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EC-PCA: Conv. RW reports 2.x ->

3.0
CRM
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CRM
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BBP
1KE9
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Post Data SD -> EC-PCA
CRM
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CRM
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BBP
1KEA
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Post Selected Data CO -> EC-PCA
CRM
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CRM
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BBP
/BEA/47000018
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(empty)
CRM-BE
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CRM
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/BEA/83000050
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(empty)
CRM-BE
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CRM
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/BEA/83000054
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(empty)
CRM-BE
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CRM
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BBP
Create Price List
CRM-BE
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CRM
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BBP
Create Price Lists
CRM-BE
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CRM
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BBP
Maintain Price Lists
CRM-BE
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CRM
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BBP
Maintain Price Lists
CRM-BE
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/BEA/CNPL01
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/BEA/CRMB01
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Edit Billing Due List
CRM-BE
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CRM
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BBP
/BEA/CRMB02
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Release Billing Due List for Billing
CRM-BE
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CRM
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BBP
/BEA/CRMB04
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Analyze Incomplete Billing Due

List
CRM-BE
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CRM
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BBP
/BEA/CRMB05
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Determine Missing CO Acc.

Assignment
CRM-BE
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CRM
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BBP
/BEA/CRMB06
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Schedule Background Jobs
CRM-BE
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CRM
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TCode
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Reject Incomplete Billing Due List
CRM-BE
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CRM
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BBP
/BEA/CRMB11
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Maintain Billing Documents
CRM-BE
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CRM
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BBP
/BEA/CRMB12
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Transfer Billing Docs to Accounting
CRM-BE
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CRM
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BBP
/BEA/CRMB13
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Create Retroactive Billing
CRM-BE
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CRM
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BBP
/BEA/CRMB14
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Extract Data for Intrastat Report
CRM-BE
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CRM
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BBP
First make sure your master data of the material is correct in all the views
Both Costing View & accounting view are maintained correctly
Proper cost center & activity types are assigned in the material master & work center
Change activity Type/ Price Planning: KP26

Enter the controlling area: 1000
Version : 0
From Period : 1
To Period : 12
Fiscal Year : 2011
Cost center : xxxx( Ex:4230)

Activity Type: xxxx(Ex:1420)
To : xxxx(Ex:1422)
Select: Form Based

Execute
Here you have to get Fixed Price & Variable Price
Then go to
Create Material Cost Estimates with Quantity Structure: CK11N
Material : xxxxx(Ex: Matrem)
Plant : xxx(Ex: 1000)
In the costing data Tab
Costing Variant : xxxx(Ex: PPC1)
Costing Version:xxx ( Ex: 1)
Costing Lot size : xxx(Ex: 1)
Transfer Control :xxxx(Ex: PC01)
In the dates Tab :
Click on Default values
Then change the dates , if req.
In the QTY. Struct Tab
Select the Production version: xxx ( Ex : 0002)
Then enter
System will ask for update parameters
Select all Enter
Then you have to get the display with Standard cost estimate ( with Values, update)
Once it is OK, then go for the next step

Updating the material master with Standard Cost: CK24
Here you have to do the marking first
Run in the test run mode, if find ok, then remove the test run & execute again
Then Release
Save
Create Cost center (FI/CO) KS01

Create Activity Type (FI/CO) KL01
Assign Rates for a cost center/activity type combination KP26
Do Cost estimates - CK11N, CK24 or CK40N
If you use CK40N, Costing, Mark the price and Release the same
can be done in single step.
Cost Rollup is done for Finished product so that the system
automatically calculates for the Semi-Finished products standard
cost.
IF you use CK11N, only costing will be done, but for marking and
release you have to use CK24.
OPL8 - For each Production order type, Order Type Dependent
Parameters Under controlling tab - Costing variant Planned and
actual has to be assigned.
KKF6N - Create Product Cost Collector for REM scenario for all Inhouse Manufactured assemblies.
Product Costing, part of the Controlling module, is used to value the internal cost of materials and
production for profitability and management accounting. Product Costing is a niche skill. Due to
costing's high integration with other modules, many people avoid it due to the
complexity. This 5 part blog will seek to simplify Product Costing.
The fourth step in understanding the basics of product costing is the costing run. Costing runs
are used to cost mass amounts of materials in a single company code. The costing run
allows you to select certain materials, explode their quantity structure, cost, analyze, and mark and release.
Prerequisites:
Material Masters (including MRP, Accounting, & Costing views)

Quantity Structure (Bill of Materials, Routing or Master Recipe, Production Versions
are optional)
Purchase Info Records and Condition Types (If desired for costing)
Configuration (Cost Component Structure, Costing Variant, Valuation Variant, Costing
Sheet if required)
CO Master Data (Primary and Secondary Cost Elements, Activity Types, Mixed Costing
Ratios & Alternatives if required, Additive Costs if required)
Overview:
During the annual or monthly costing process, materials are costed in a costing run.
Transaction CK40N is used to execute costing runs, analyze results, and mark and release
costs. The costing run must be created using a costing variant (read more in configuration
section), costing version, controlling area, company code, and transfer control. Therefore, a
costing run can only be created for one company code at a time. The costing run is also
created for a particular date range.
The costing run contains six steps: Selection, Structure Explosion, Costing, Analysis,
Marking, and Release. Each step requires you to enter parameters, save, and then execute.
The selection parameters are entered which indicates which materials should be costed. In
the structure explosion step, the selected materials are exploded to pick up component
materials from BOMs.
As discussed in the previous blog on Quantity Structure, a bill of materials (BOM) is created for
each internally produced material. In the costing step, finished good materials selected from
the previous step are costed based on their BOM and routing or master recipe. A routing or
master recipe is also created to indicate the processes required for a material. Component
materials are also costed based on costing configuration.
You can analyze the costing results using the available reports in the analysis parameters. In
the markingstep, you open the lock to authorize marking for a company code, costing variant,
and period. Once marked, costs appear as planned standard cost estimates in the material
master. After executing marking, you releasethe costing results. Once released, costs are valid
for the given date range and appear as current standard cost estimates in the material
master.
After executing each step, it is important to review the error log and resolve errors. Once
resolving errors in a given step, you must re-execute each step from the beginning to see
the effect. If results do not update after executing, you can press the refresh button. You
have the option to execute any step in background when processing a large number of
materials or if you prefer to execute a step at a given date and time.
Configuration:
Configuration of costing and valuation variants and cost component structure are required to
set the strategy for costing materials. The costing variant holds the criteria for costing. Costing
variants contain a costing type, which determines the object to be created, and valuation
variant. Valuation variants contain parameters for valuation of a cost estimate. In a valuation
variant, you can specify the strategy sequence for how costs are selected. For produced
materials, the components standard cost, moving average price, purchase info record price,
or planned prices may be selected. You can also choose a particular plan/actual version and
average the plan activity rates for the year or take the current activity rates. The cost
component structure is used to indicate which costs should be included, whether to include the
variable or total costs, and group costs in logical groupings called cost components.
Relatable Example:
Let's say we are using Product Costing to value our inventory in a cookie baking shop. This
will help us value our cookies (finished good), frosting (semi-finished good), and baking
items like eggs, milk, and sugar (raw materials).
Using the costs for each ingredient (Material Master) in our ingredient list (BOM) and the
rates for activities in our recipe (Routing or Master Recipe), we can calculate the cost of
producing a cookie. In costing our cookies, we will cost the ingredients. Once we are
satisfied with our standard cost, we can choose to value our inventory at that cost (release).
Further information:
Product Cost Collectors, used in repetitive manufacturing, must be costed in a

separate transaction (Individual- KKF6N or Mass- KKF6M).
You must re-calculate and release costs to reflect changes in production data like
BOMs, Routings or Master Recipes, Production Versions.
Note that only the first production version will be used in costing.
In the final blog of this series, I will explain how actual costs are calculated and plan to
actual variance analysis.
Posted by Mindmajix In SAP CO
May 10, 2016

Transaction CK40N is used to execute costing runs, analyze results, and mark and release costs. COST estimates can be
created individually in transaction CK11N, but the annual costing process is done in mass using the costing run transaction.
The costing run must be created using a costing variant, costing version, controlling area, company code, and transfer
control. Therefore, a costing run can only be created for one company code at a time.
The costing run is also created for a particular date range. The end of the date range must be the end of a month. For
example, you cannot create a cost estimate that is valid from January 1 st to January 15th. The cost estimate must be effective
for an entire period. You could recost the material on January 15 th and re-release the cost if it needs to be updated. It is
typically best to cost materials through the end of the year and then do another costing run or cost estimate if needed before
the end of the year (Figure 4.46).
Figure 4.46: Costing run a transaction

The costing run contains six steps. Each step requires you to enter parameters, save, and then execute (see Table 4.1).
After executing each step, it is important to review the error log and resolve any errors. Once resolving errors in a given step,
you must re-execute each step from the beginning to see the effect. If the results do not update after executing, you can
press the refresh button. You have the option to execute any step in the background when processing a large number of
materials or, if you prefer, to execute a step at a given date and time.
Tabl
e 4.1: Costing run process steps
Selection step
In the selection step of the costing run, selection parameters are entered to indicate which materials should be costed. You
can use many different selection options to choose which materials should or should not be costed. Additional fields are
available if you click the dynamic selections button next to variant attributes. You could instead indicate a previous costing
run or a selection list in order to determine which materials should be costed.
There are two checkboxes to indicate if configured materials only should be costed, or if the system should always recost
materials. Always recost material will have the system ignore transfer control so that all materials are costed in the costing
run, even if they are set up for transfer control from another plant.
In each parameter step, you are given processing options. You can elect to run the steps in the background, meaning that
they process in a background job and can be scheduled or run immediately. If scheduled to run in the background, when you
execute, a popup box will allow you to choose when and how the job should run. You can also select to print the log from
each step if desired.
Once your parameters have been selected, save and use the green arrow to return to the previous screen. Then execute the
parameter step (see Figure 4.47).
Figure 4.47: Costing run selection parameters
Structure explosion step

In the structure explosion step, the selected materials from the selection step are exploded to pick up component materials
from BOMs. Component materials are gathered from produced material BOMs. A bill of materials (BOM) should be created
for each internally produced material. Component materials are added to the number of materials to be costed.
In the structure explosion parameter step, you can elect to run steps in background, meaning that they process in a
background job and can be scheduled or run immediately. If scheduled to run in the background, when you execute, a popup
box will allow you to choose when and how the job should run. You can also select to print the log from each step if desired.
selection step (see Figure 4.48).
Figure 4.48: Costing run structure explosion parameters
Costing step
In the costing step, finished good materials selected from the previous step are costed based on their primary BOM and
routing or master recipe specified in production version 1. Unless indicated otherwise in the material master costing 1 view,
the BOM and routing or master recipe from production version 1 are always used for costing. Therefore, the most common
standard production scenario should be created as production version 1. Any changes in the primary scenario should be
made prior to costing materials.
Bills of Materials (also known as BOMs) are created in transaction CS01, changed in transaction CS02, and displayed in
transaction CS03. See Figure 4.49 for an example of a BOM header and item detail. The BOM head contains the base
quantity, validity data, text information, and administrative data. The base quantity represents the quantity to which the BOM
component quantity refers. You can think of the base quantity as a denominator for component quantities on a BOM.
The base quantity should be the smallest unit that can be produced. For example, if we use the example product of shampoo
bottles, the finished good material for the shampoo bottle should represent the packaged box of nine shampoo bottles. The
base quantity should be the size one packaged container of shampoo: 1 ea. If nine bottles are packed in a box, the base
quantity should be one each representing the nine packaged bottled.
Figure 4.49: Bill of material (BOM) header

The components would include chemicals and fragrances to produce nine bottles, nine plastic bottles, nine bottle lids, and
the box in which the nine bottles are packaged. If the same shampoo bottles are also packaged in a different configuration of
12 bottles , that should be a different finished good material master because the BOM (and therefore the cost) will be
slightly different. The routing may be identical, but the BOM components would be ingredients, bottles, and lids for 12 bottles
instead of 9, and one box for all 12 bottles. The base quantity would still be one each (representing 12 packaged bottles).
See Figure 4.50 for an example.
Figure 4.50: Bill of material (BOM) component details

A routing, rate routing, or master recipe is also created to indicate the processes required to produce a material. The routing,
rate routing, or master recipe contains operations, or steps, that represent activity quantities per a base quantity.
Routings are used in discrete manufacturing, which is a type of make-to-order production. Discrete manufacturing
usesproduction orders to collect costs (see Figure 4.51 and Figure 4.52). Discrete manufacturing is often used when:
Products change frequently.
Products have complex routings.
Semi-finished products are put into interim storage.
Completion confirmation (backflush) is used for individual operations or orders.
Costs are reviewed on an order basis.
Figure 4.51: Discrete routing production example
Figure 4.52: Routing operation details

Rate routings are used in repetitive manufacturing, which is another type of make-to-stock production. Repetitive
manufacturing uses planned orders based on a run schedule instead of planned orders, and product cost collectors to
collect costs (see Figure 4.53 and Figure 4.54). Repetitive manufacturing is the simplest type of production in SAP and the
supporting data in rate routings is also very basic. Repetitive manufacturing is often used when:
Products are produced for a long period of time with alteration.
Products have simple routings.
Semi-finished products do not have interim storage.
Period-based backflush.
Costs are reviewed on a period basis.
Figure 4.53: Repetitive routing production example
Figure 4.54: Rate routing
Repetitive manufacturing preliminary costing

If repetitive manufacturing is relevant in your company, you will also need to give a preliminary cost estimate to product cost
collectors in addition to costing the material in a costing run. In the section Price Update, we will discuss product cost
collectors.
Master recipes are used in process manufacturing (see Figure 4.55). Process manufacturing uses process orders to collect
costs. Process manufacturing is commonly used in the chemical, pharmaceutical, and food and beverage industries.
Process manufacturing is used in these types of production scenarios:
Continuous production: Products are manufactured in a continuous process, the ingredients are continuously added, and
the production line is completely utilized by the order.
Discontinuous production: Products are products discontinuously, ingredients are prepared and staged in precise quantities,
and several products are manufactured on the same production line.
Regulated production: Legal requirements or quality requirements drive the need for highly controlled master recipes.
Process-oriented filling: Bulk produced materials are stored in containers until filled.
Figure 4.55: Master recipe

Component materials are costed based on costing variant and valuation variant configuration. This configuration is detailed
in SAP CO COSTING RUN EXECUTION.
In the costing run parameter step, you can elect to repeat only cost estimate with errors and show the log by costing levels.
By electing to repeat cost estimates with errors only, you are requesting to only recost the materials in this step that
previously had an error last time you ran this step. This can be selected when you have already run the costing step in this
costing run and want to rerun each step again, after resolving errors. Remember that you should always start back at the
selection execute step and reprocess through each step after resolving errors. The log by costing level option is helpful if you
are costing a large number of materials and the error log is too large to easily review. The costing levels are the sequence in
which materials are costed.
Since the costing step requires a large amount of system processing, you have the option to select parallel processing so
multiple servers process the data in parallel. You should work with your Basis system administrators to confirm if parallel
processing is required and which servers should be used.
Like each parameter step, you can elect to run steps in the background, meaning that they process in a background job and
can be scheduled or run immediately. If scheduled to run in the background, when you execute, a popup box will allow you to
choose when and how the job should run. You can also select to print the log from each step if desired.
costing step (see Figure 4.56).
Figure 4.56: Costing run costing parameters
Analysis step
You can analyze the costing results using the available reports in the analysis parameters. Analysis reports show you the
cost estimate result for each material in the costing. The results include purchased materials, produced materials, and any
supplies that were selected in the first step of the costing run.
There are five reports that can be selected for analyzing the costing run. The first report is the most standard and basic
report. Double click on the report you would like (see Figure 4.57).
Figure 4.57: Costing run analysis reports

Then save the analysis parameters and green arrow back (see Figure 4.58).
Figure 4.58: Costing run analysis parameters

Next, execute the analysis step to review the analysis report (see Figure 4.59).
Figure 4.59: Costing run analysis report

You can double click on a materials cost estimate result in the analysis reports to go to transaction CK13N for further detail
of the cost.
Marking step
Marking costs is a preliminary step prior to releasing costs. Marked costs are indicated as future costs in the costing 2
material master view. They are costs with desired results that are planned to be released at some point in the future.
In the marking step parameters, first click on the lock to authorize marking for a company code, costing variant, and period.
Click the company code you are costing, enter the costing variant and costing variant, then click save. The radio button next
to the company code will now turn from red to green, indicating that marking is now authorized (see Figure 4.60).
Figure 4.60: Costing run marking authorization

Marking authorization restriction
You will notice in this screen that only one costing variant can be allowed for marking per period, per company code. This
restriction ensures that the same valuation method for standard costs is used for an entire period. In Mark /Release
individual material of this field, we will discuss the option to release prices to other material master fields. This does not
require you to mark a cost prior to releasing, so this restriction only applies to costing variants that indicate they can update
prices to the standard price field.
Next, green arrow back and click on the marking parameters button. You can opt to mark costs in test run before processing
for real. You can also choose the indicator to see a list output after marking. This list will indicate if materials were
successfully marked or not. As with the costing step, you can choose to run the marking step in parallel processing or
background processing (see Figure 4.61).
Figur
e 4.61: Costing run marking parameters
Once parameters are saved and marking is executed, marked costs appear as future standard cost estimates in the material
master COSTING 2 VIEW (see Figure 4.62).
Figure 4.62: Material master costing 2 view future price
Release step
After executing marking, you release the costing results. Once released, costs are valid for the given date range and appear
as current standard cost estimates in the material master.
Master data changes effect on costing

Note that you must recalculate and release costs to reflect changes in production data like BOMs, routings, master recipes,
production versions, etc.
The same release parameters exist as the parameters in the marking step (see Figure 4.63).
Fi
gure 4.63: Costing run release parameters
Save parameters, then a green arrow back and execute the release step (see Figure 4.64).
Figure 4.64: Costing run release results

When costs are released, material inventory is revalued at the new price. This results in a price change document that can
be displayed in transaction CKMPCD. If the new cost is different from the old cost and there is inventory there is an
associated accounting document created that can be displayed in transaction FB03. In Figure 4.65, there was no value
change because the previous cost was the same as the new cost.
Figure 4.65: Price change document

In the material master costing 2 view, you can see that the costing run result moved from the future price field to the current
price field (see Figure 4.66).
Figure 4.66: Material master costing 2 view current price
Cost individual material

In order to cost materials that are created out of the normal costing process, you can use transaction CK11N to cost
individual materials. In CK11N, you have the option to cost an individual material at a time, which may be desired when
particular products are added to SAP in small quantities.
Difference between CK11N and CK40N

Costing in CK11N is different from costing in CK40N because component materials are not given a cost along with the
specified produced material. You must cost, mark and release each component cost first, then cost the finished good. You
do not need to cost component if they already have a current cost estimate or the cost estimate would just pick up the
standard price or moving average price anyway.
On the initial screen of CK11N, enter material, plant, costing variant and costing version. You can enter a costing lot size if
you prefer a different costing lot size than what is specified in the material master costing 1 view. Keep in mind that the
costing lot size specified must be greater than or equal to the price unit of the material. After entering all details, enter
through to the date screen (see Figure 4.67).
Figure 4.67: Individual cost estimate costing data screen

When costing a material, you can choose a date range (typically one month or one year) depending on when you plan to
release costs. These dates are specified in the costing date from and costing date two fields. The quantity structure and
valuation dates pick up master data from that date. Generally, you should enter all dates as the date you plan to release
costs, except for the to costing date. The to costing date should be 12/31/20XX.
Optional default date configuration

You can configure the dates tab to populate the dates based on particular rules in the costing variant configuration
transaction OKKN. For example, you can specify the costing date from, quantity structure date, and valuation date to
populate with the current date. You could also configure the dates to populate the first day of the next period. If you change
the defaulted date and want to revert back, you can click the default values button.
After entering dates, enter through to the next screen, or click on the quantity structure tab (see Figure 4.68).
Figure 4.68: Individual cost estimate dates tab

The quantity structure tab allows you to specify a different quantity structure (BOM, routing, master recipe, or production
version) to use in the cost estimate. Unless otherwise specified, the cost estimate will use the primary BOM and routing or
master recipe from production version 1. You can specific a different quantity structure on the costing 1 view of the material
master, or enter the preferred quantity structure on this tab in CK11N. This is typically used if you are testing a different
quantity structure to see the costing result.
Figure 4.69: Individual cost estimate quantity structure tab

The costs tab shows the total cost calculation in company code currency per the indicated costing lot size and unit of
measure (see Figure 4.70). This tab also has a stoplight status that indicates if the material costed successfully (green), with
warnings (yellow), or with errors (red). The message log should be reviewed if any errors, even green, appear.
Figure 4.70: Individual cost estimate costs tab

The lower right screen displays the itemization view of the cost estimate. The cost estimate will list every activity type (item
type E) and BOM component (item type M) that is used to create the cost estimate and the consumption cost element
associated with that line item. The itemized view will also show overhead secondary cost elements from costing sheets and
additive costs. If origin groups are used, a separate line item will appear for each cost element and origin group combination
that is relevant in the cost estimate. Subcontracted operations and purchase information records will also appear as separate
line items (see Figure 4.71).
Figure 4.71: Individual cost estimate itemization

Note that you can drop down on the white text field and change the view from cost of goods manufactured to tax and
commercial valuation, commercial valuation, etc. The cost itemization gives you a great deal of detail about the makeup of
the cost. Depending on how large and complex your companys BOMs and routings or master recipes are, the cost
itemization may be too much detail. You can click on the blue bar graph icon to switch the cost itemization to the cost
component structure. This is where you see the configured cost components that contain particular cost elements for
grouping (see Figure 4.72). The cost component structure is often easier to analyze individual material costs and compare
material costs.
Figure 4.72: Individual cost estimate cost component detail

You can use the magnifying glass icon to return to the itemization view of the cost estimate.
Note that there are multiple tabs in the top right section of the screen. These tabs contain valuable information that can help
you troubleshoot issues and understand cost results. This knowledge is crucial to your role as a configurer, tester, or a
business user of SAP Product Costing. With this type of information at your fingertips, you can be more independent in
resolving issues and better understand how the system works.
The costing data tab indicates the costing variant used to calculate the cost estimate. The dates tab indicates the dates
specified on the initial CK11N date screen.
The quantity structure tab identifies the source of the underlying data used for product costing. This can be helpful when
determining which purchase info record, BOM, routing, master recipe, or material master price was used in calculating the
cost. Figure 4.73 shows a produced product with a standard cost based on a BOM and routing.
Figure 4.73: Individual cost estimate quantity structure tab for produced material
Figure 4.74 shows a purchased product with a standard cost based on the materials own standard price.
Figure 4.74: Individual cost estimate valuation tab for purchased material
The valuation tab indicates the configured valuation variant strategy that was used in costing the material. In conjunction with
the quantity structure tab, this information is helpful in understanding the costing results and determining if they are accurate.
The history tab provides basic information about which user created the cost and on what date. If multiple people are
responsible for costing in your organization, it can be helpful to see who costed a material and follow up with them on any
questions about the costing results.
The left section of the screen displays the costing structure. The costing structure is a list of the BOM components used in
costing produced materials. This is useful to see material numbers and descriptions since the itemized view does not contain
material descriptions. The stoplights next to each material indicate if there is an issue with the component material cost that
needs to be resolved. If you double click on a component material, the top right and bottom right portions of the screen will
change to show you the cost estimate of the component (see Figure 4.75).
Figure 4.75: Individual cost estimate costing structure

The transaction CK11N provides many details helpful in costing materials and analyzing results. I recommend you explore
the various buttons available where you can download results to Excel, add in additional information, create variants, search
for data, total, subtotal, sort, and more.
Remember to save your cost result in CK11N if the result is desired. If you cost result is not desired and you make changes
to master data, remember to re-run transaction CK11N to see the updated result. Next, we need to mark and release the
cost estimate in order that period with the desired costing variant.
Click on the marking allowance button in CK24. If the company code is red click on the company code, enter the costing
variant and hit enter. If the light is green, marking is already allowed (see Figure 4.76). Only one costing variant is allowed for
marking
per
period
per
company
code.
Figure 4.76: Mark individual materials

After marking standard costs, material costs need to be released in order to revalue inventory. Click the release button in the
tool bar of transaction CK24. Enter the company code, plant, and/or material(s) that should be released (see Figure 4.77).
You can run in test mode first, then execute for real.
Figure 4.77: Release individual materials
Update costs to other price fields

You may elect to use multiple costing variants in order to calculate prices for tax, commercial, or planned price fields on the
material master. These fields can be found on the accounting 2 and costing 2 views of the material.
Instead of marking and releasing costs to these fields, you just update costs to these price fields using a different screen. In
CK24 where you can mark and release individual material costs, you can choose the button on the toolbar to update other
price fields.
This screen requires you to specify the costing run, date, costing version, costing variant, and the fields you wish to update
(see Figure 4.78). If you select planned price 1, 2, or 3 fields, you must enter a date as well.
Figure 4.78: Individual material update other price fields

You can also do a CK40N costing run using a variant that is configured to update other prices, tax prices, or commercial
prices. You will notice that the costing run steps change and you only have five steps instead of six. Instead of marking and
releasing after costing, you simply perform a price update (see Figure 4.79).
Figure 4.79: Costing run update other price fields
Scrub cost estimate

Scrubbing a cost estimate, or reorganization, involves removing a current price, future price, previous price, or cost estimate
without material reference. Scrubbing is performed in transaction CKR1. Scrubbing a cost estimate is a delicate procedure
that should be done with careful consideration. It is not part of a normal costing process and should only be used in
exceptions. Note that you will receive a yellow warning message at the bottom of the screen to confirm you want to scrub
current cost estimates. Simply enter through this message if you wish to proceed (see Figure 4.80).
Figure 4.80: Scrub cost estimate

You should immediately re-cost a material after scrubbing the cost estimate in order to establish a new, corrected cost for
inventory and production purposes.
Price update
There are situations where you want to manually update a standard or moving average price for a material without
performing a cost estimate. Transaction MR21 allows you to update the standard or moving average price of a material
(based on the price control) for a particular company code, plant, and valuation type (if split valued) (see Figure 4.81). This
transaction is frequently used for purchased materials that are not costed with a purchase information record and conditions.
Figure 4.81: Perform price update
Price update warning for produced materials

Typically, you do not want to perform a manual price update for a produced material because this price change only affects
the standard cost used to value inventory on the accounting 1 view. This price update does not update the released cost
estimate on the costing 2 view that is used in production. If you have an inconsistency between your released cost estimate
and the standard price used for inventory valuation, you will see inconsistencies and variances throughout production.
Note that you do have the option to change the price unit of a material in this transaction. As discussed in MATERIAL
MASTERS, SAP requires that the costing lot size is greater than or equal to the price unit. If you change the price unit to be
greater than the costing lot size, you will receive an error.
Product cost collectors
Product cost collectors (PCCs) are used in repetitive manufacturing to collect costs instead of collecting costs on the
planned order. Product cost collectors are used instead of planned orders because of the nature of repetitive manufacturing
in SAP. Planned orders are deleted at the end of each month, so an independent cost collector is required. Product cost
collectors are also used because in repetitive manufacturing, costs are analyzed as a cost per period instead of a cost per
order like discrete manufacturing. Different from production orders, PCCs are settled at month-end and the planned orders
associated with the product cost collector remain open.
Many product cost collectors can exist for the same material in the same plant because PCCs are created for each
production version. PCCs require preliminary costing prior to use in production. This preliminary cost is in addition to the
released cost required on the material master.
You can use transaction KKF6N to create, change, and display PCCs for on material in a plant. You can use transaction
KKF6M to create PCCs in mass and transaction MF30 to cost PCCs in mass (see Figure 4.82).
Figure 4.82: Create product cost collector

If there are multiple production versions for the material, drop down on the material on the left vertical bar, and deselect all
production versions except one. This allows you to see the details in the header and production process tabs.
Click on the header tab to see header details about the PCC. You can click on the yellow buttons to see orders/production
versions, the cost estimate, the settlement rule, and costs (see Figure 4.83).
Figure 4.83: Display product cost collector header tab

You can select the production process tab to see more details about the BOM and rate routing specified in this PCC (see
Figure 4.84).
Figure 4.84: Display product cost collector production process tab

Now that we have covered costing configuration, the costing run transaction, and various costing processes, lets discuss the
month end and year end processes involved in product costing.
Product Costing, part of the Controlling module, is used to value the internal cost of
materials and production for profitability and management accounting. Product Costing
is a niche skill. Due to costing's high integration with other modules, many people avoid
it due to the complexity. This 5 part blog will seek to simplify Product Costing.
The first step in understanding the basics of product costing is Cost Center Planning.
The goal of cost center planning is to plan total dollars and quantities in each Cost
Center in a Plant.
Prerequisites:
Organizational Structure is configured:
Company Codes
Plants
Master data is created
Profit Centers
Cost Centers
Primary and Secondary Cost Elements
Activity Types
Overview:
Cost Center dollars are planned by Activity Type and Cost Element in Transaction
KP06. Variable and fixed dollar amounts can be entered. You can plan all costs in
production cost centers where they will end up through allocations, or you can plan
costs where they are incurred and use plan assessments and distributions to
allocate. Cost Center activity quantities are planned in by Activity Type in Transaction
KP26. You can also manually enter an activity rate based on last year's actual values.
Note that if you enter an activity rate instead of using the system to calculate a rate,
you lose the opportunity to review actual vs. plan and see dollar and unit variances. It is
a best practice to plan activity quantities based on practical installed capacity which
accounts for downtime. If you plan at full capacity, plan activity rates will be
underestimated.
Relatable Example:Let's say we are using Product Costing to value our inventory in a
cookie baking shop. This will help us value our cookies (finished good), frosting (semifinished good), and baking items like eggs, milk, and sugar (raw materials). In order to
calculate costs, we need to come up with rates for each activity, such as mixing baking
items, oven baking, and cookie cooling. Since a rate is a dollar per unit, we can either
come up with a rate based on previous year's actual rates, or enter our total costs and
total units.
You can customize layouts and user profiles to your needs.
You can activate integrated Excel planning to see a spreadsheet instead of a

fixed format.
You can also configure the system to upload Excel files instead of typing in
values.
In the next blog, I will explain how activity rates are calculated based on the plan Cost
Center dollars and quantities. If rates are manually entered, activity rates do not need
to be calculated, but there is a valuable report to review them prior to proceeding.
Product Costing, part of the Controlling module, is used to value the internal cost of
materials and production for profitability and management accounti ng. Product Costing
is a niche skill. Due to costing's high integration with other modules, many people avoid
it due to the complexity. This 5 part blog will seek to simplify Product Costing.
Now that you understand Cost Center Planning, the next step in understanding the basics of product
costing isActivity Rate Calculation. The goal of Activity Rate Calculation is to calculate the
plan activity rates for each activity in each Cost Center in a Plant.
Prerequisites:
Cost Center Plans are entered:
Plan Costs in KP06
Plan Activity units in KP26
Overview:
Now that our Cost Center dollars and activity quantities are planned, we need to
calculate Activity Type Rates. Activity Type Rates are used to value internal activities to
produce products.
If you manually entered activity rates based on last year's actual values instead of
planning total dollars and units. You can skip most of this blog, and simply review
activity rates in Transaction KSBT. Note that you can use a mixed approach and plan
rates for some activities/cost centers and calculate rates for others.
If you planned all costs in production cost centers where they will be allocated, you can
skip the next step of plan allocations.If you planned costs where they are incurred in
overhead cost centers, you will need to use plan assessments and/or distributions to
allocate costs. The specific details on Assessments and Distributions could be an entire
blog in itself.The main difference between assessments and distributions is that

distributions maintain the identity (primary cost element) of the cost. Assessments use
Secondary Cost Elements which act as cost carriers to move costs, and therefore lose
the identity (primary cost element) of the cost. You can choose to use Assessments or
Distributions only, or use a mixed process. Plan Assessments and Distributions are
created in Transactions KSU7 and KSV7 and executed in Transactions KSUB and KSVB.
After costs are allocated, it is important to review the Cost Center Actual/Plan/Variance
report, Transaction S_ALR_87013611. Ensure that allocations credited sending cost
centers and debited receiver cost centers.
Next, execute plan cost center splitting which splits costs when you have more than one
activity type in a cost center and you want to split the costs between two activities
based on activity qty or some other basis. This is a great place to use Cost Center
groups to easily select desired cost centers since you cannot enter a range. Cost
splitting uses Transaction KSS4.
Finally, Activity Type Rates are calculated using Transaction KSPI. If rates are
undesirable, you can revise your cost center plans and recalculate rates. Rates are not
final until you use them to calculate and release product costs. This is an iterative
process, and it is expected that you will make several attempts at desirable rates.
After calculating Activity Type Rates, you can review rates in Transaction KSBT.
Relatable Example:
Let's say we are using Product Costing to value our inventory in a cookie baking shop.
This will help us value our cookies (finished good), frosting (semi-finished good), and
baking items like eggs, milk, and sugar (raw materials). In order to calculate costs, we
need to come up with rates for each activity, such as mixing baking items, oven baking,
and cookie cooling. We planned overhead costs like our building rent, electricity, and
baker wages at an overhead cost center. We need to allocate those costs to our
production cost center in order to include those costs in our product cost. Prior to
calculating costs, let's assume there are some overhead costs in a cost center that
should be split into multiple activities. Once we split these costs, then we calculate rates
for activities. Now we have a dollar per unit for activities like indirect labor, direct labor,
setup, and overhead to use in product costing.
You can use Cost Center Groups and Cost Element Groups to simplify selecting
Cost Centers and Cost Elements in KSBT and KSPI and in other Cost Center/Cost
Element Reports.
You may find that your rates are not appearing for certain months, or that they
are averaged over 12 months. Make sure you review the 'Period Overview' screen in
Cost Center planning Transactions KP06 and KP26. This screen shows costs and units by
each month.
You can reverse Assessments and Distributions if results are undesirable.

In theory, your plan Assessments and Distributions should match your actual
Assessments and Distributions.
The next blog in the series explains how production data like BOM's (Bills of Material),
Routings/Master Recipes and Work Centers integrate with Product Costing.
costing's high integration with other modules, many people avoid it due to the complexity. This 5
part blog will seek to simplify Product Costing.
The third step in understanding the basics of product costing is Quantity Structure. Quantity
Structure enables you tocalculate the cogs of goods manufactured and cost of goods sold for products
based on the BOM and Routing (PP) orMaster Recipe (PP-PI).
o
o
o
o
o
o
o
Prerequisites:
Master data is created
Material Masters (including MRP, Accounting, Costing views)
Bill of Materials
Work Centers (with Cost Centers and Activity Types)
Routings (Production Planning) OR
Master Recipes (Production Planning- Process Industries)
Production Versions (optional)
Product Cost Collectors (PP-REM - Repetitive Manufacturing)
Overview:
Quantity Structure is an important concept in Product Costing because it is a key

integration point between the Finance and Logistics modules in SAP. There are several
components of Quantity Structure.
A material master is
created for each product with a unique fit/form/function in a plant. The

material master contains many views including Material Resource Planning (MRP)
views, Accounting views, and Costing views. Two costing-relevant fields on the MRP 2
view are procurement type and special procurement key. The procurement type field
indicates if a material is produced internally, purchased or both. The special procurement
key further designates if a material is subcontracted, a phantom, purchased from another
plant, etc. It is important that these two fields are correct when costing a material.
For each internally produced material, a bill of materials (BOM) is created. A BOM contains
the component materials and quantities required to produce a finished or semi-finished
good. The material cost of a product is calculated using the standard or moving average
price of the BOM components depending on the price control (S for standard, V for
moving average).
A work center (PP) or resource (PP-PI) identifies a machine or work area where a
production process is performed. Each work center or resource utilizes a standard value
key which is a unique set of activitiesrelated to a work center. I previously discussed activity
types in part 1 of this blog series.
In addition to a BOM, a routing or master recipe is created to indicate the processes

required to produce a material. In Production Planning (PP) manufacturing, a routing is
made up of a series of operations that include work centers and activity quantities which
define a production process. In Production Planning- Process Industries (PP-PI), a
master recipe is used for batch-oriented process manufacturing. A master recipe
contains the processes required for producing a material including the resources
(instead of work centers) required for production.
Repetitive manufacturing utilizes rate routings and product cost collectors. Product cost
collectors are created for each production version (see below) and capture costs per
period rather than per order.
If there are multiple ways to produce a material including different material combinations
or activities, production versions can be used. Production versions indicate a
combination of a BOM and routing or master recipe required to produce a material. The
first production version should be the most frequent or realistic
Relatable Example:
Let's say we are using Product Costing to value our inventory in a cookie baking shop.
This will help us value our cookies (finished good), frosting (semi-finished good), and
baking items like eggs, milk, and sugar (raw materials).
In order to calculate costs, we need a list of ingredients (Bill of Material) and a recipe of steps to follow
(Routing or Master Recipe). There may be several ways that we can bake the same cookie by
substituting ingredients or baking in different ovens, so we can have several versions of our ingredients
and recipe (Production Version). In order to accurately calculate costs of producing our cookies, we need
to define the places where baking activities occur (work centers or resources).
For example, we may use a refrigerator, mixing station, oven, cooling station, and
packaging station. Each would be considered a work center, and we assign different
activities like labor and overhead to each work center. The work centers and amount of
each activity are indicated in our recipe (Routing or Master Recipe) as operations.
Using the costs for each ingredient (Material Master) in our ingredient list (BOM) and
the rates for activities in our recipe (Routing or Master Recipe), we can calculate the
cost of producing a cookie.
Material Master MRP settings are crucial in product costing with quantity
structure.
In my next blog, I connect the concepts of cost center planning, activity rate calculation and
quantity structure to the costing process. This blog includes executing a costing run, costing an
individual material, and marking and releasing costs.
costing's high integration with other modules, many people avoid it due to the
complexity. This 5 part blog will seek to simplify Product Costing.
The fourth step in understanding the basics of product costing is the costing run. Costing runs
are used to cost mass amounts of materials in a single company code. The costing run
allows you to select certain materials, explode their quantity structure, cost, analyze, and mark and release.
Prerequisites:

are optional)
Purchase Info Records and Condition Types (If desired for costing)
Configuration (Cost Component Structure, Costing Variant, Valuation Variant, Costing
Sheet if required)
CO Master Data (Primary and Secondary Cost Elements, Activity Types, Mixed Costing
Ratios & Alternatives if required, Additive Costs if required)
Overview:
During the annual or monthly costing process, materials are costed in a costing run.
Transaction CK40N is used to execute costing runs, analyze results, and mark and release
costs. The costing run must be created using a costing variant (read more in configuration
section), costing version, controlling area, company code, and transfer control. Therefore, a
costing run can only be created for one company code at a time. The costing run is also
created for a particular date range.
The costing run contains six steps: Selection, Structure Explosion, Costing, Analysis,
Marking, and Release. Each step requires you to enter parameters, save, and then execute.
The selection parameters are entered which indicates which materials should be costed. In
the structure explosion step, the selected materials are exploded to pick up component
materials from BOMs.
As discussed in the previous blog on Quantity Structure, a bill of materials (BOM) is created for
each internally produced material. In the costing step, finished good materials selected from
the previous step are costed based on their BOM and routing or master recipe. A routing or
master recipe is also created to indicate the processes required for a material. Component
materials are also costed based on costing configuration.
You can analyze the costing results using the available reports in the analysis parameters. In
the markingstep, you open the lock to authorize marking for a company code, costing variant,
and period. Once marked, costs appear as planned standard cost estimates in the material
master. After executing marking, you releasethe costing results. Once released, costs are valid
for the given date range and appear as current standard cost estimates in the material
master.
After executing each step, it is important to review the error log and resolve errors. Once
resolving errors in a given step, you must re-execute each step from the beginning to see
the effect. If results do not update after executing, you can press the refresh button. You
have the option to execute any step in background when processing a large number of
materials or if you prefer to execute a step at a given date and time.
Configuration:
Configuration of costing and valuation variants and cost component structure are required to
set the strategy for costing materials. The costing variant holds the criteria for costing. Costing
variants contain a costing type, which determines the object to be created, and valuation
variant. Valuation variants contain parameters for valuation of a cost estimate. In a valuation
variant, you can specify the strategy sequence for how costs are selected. For produced
materials, the components standard cost, moving average price, purchase info record price,
or planned prices may be selected. You can also choose a particular plan/actual version and
average the plan activity rates for the year or take the current activity rates. The cost
component structure is used to indicate which costs should be included, whether to include the
variable or total costs, and group costs in logical groupings called cost components.
Relatable Example:
Using the costs for each ingredient (Material Master) in our ingredient list (BOM) and the
rates for activities in our recipe (Routing or Master Recipe), we can calculate the cost of
producing a cookie. In costing our cookies, we will cost the ingredients. Once we are
satisfied with our standard cost, we can choose to value our inventory at that cost (release).
Product Cost Collectors, used in repetitive manufacturing, must be costed in a

separate transaction (Individual- KKF6N or Mass- KKF6M).
Note that only the first production version will be used in costing.
In the final blog of this series, I will explain how actual costs are calculated and plan to
actual variance analysis.
costing's high integration with other modules, many people avoid it due to the complexity.
This 5 part blog will seek to simplify Product Costing.
The fifth and final step in understanding the basics of product costing is actual costs. Actual
costs are determined through purchase prices, actual expenses, and confirmed production
quantities. Actual costs are compared to standard costs through variance analysis to make
management decisions and determine profitability.
Prerequisites:

are optional)
Configuration (WIP, Variance, and Settlement)
CO Master Data (Primary and Secondary Cost Elements, Activity Types, Actual
Assessment/Distribution Cycles, Actual Statistical Key Figures if required)
Overview:
Throughout a given period, actual expenses are recorded in SAP as purchases are made,
payroll is processed, bills are paid, and production occurs. At month-end, Work in Process,
Variance, and Settlementare calculated. The variance between actual costs and standard costs
can result in changes to product costing for the next period or year. Costs are settled and
the posting period is closed at the end of the month end process to avoid material
movement or accounting postings in the previous period.
In product cost by order,
actual production yield, scrap, and activity quantities are entered in a

production confirmation. The production costs are collected on the production orders for
review and settlement. In product cost by period, product cost collectors are used to calculate
WIP, variances, and settlement instead of the planned orders.
Prior to calculating variances and settling orders, orders must run through WIP calculation to
determine what part (if any) of an order is not complete. You can calculate work in process
at target costs for Product cost collectors, Production orders, and Process orders. Only orders
that have a valid results analysis key and are not in status DLFL (Deletion flag) or DLT
(Deleted) are included in WIP calculation.
In Product Cost by Period (repetitive manufacturing), the quantities confirmed (other than scrap)
for manufacturing orders or production versions are valued at target cost based on the
valuation variant for WIP and scrap. In Product Cost by Order (discrete manufacturing), WIP is the
difference between the debit and credit of an order that has not been fully delivered. SAP
offers variance analysis on the input (consumption, overhead allocation, actual expenses)
side and output (production quantity or valuation) side.
Input Variances
Output Variances
Input Price Variance:Caused
by differences
Mixed Price Variance:Caused when the system
between plan and actual material and activity determines a different mixed cost than the
prices. Only calculated if material origin is
released cost estimate. Must be selected in the
selected on material master.
variance variant to see.
Output Price Variance:
If standard price changed between

delivery to stock and when variances are
calculated
If price control V materials are not
Resource-Usage Variance:Caused by the use of
delivered to stock at standard price
different materials and activities than were
If price used to valuate inventory is not a
planned in BOMs and Routings/Master Recipes.
mixed price
Material Quantity Variance:
Lot Size Variance:
Caused by different material and quantities

than were planned in BOMs.
Differences between the planned and actual

costs that don't vary with lot size.
Remaining Variance:
Remaining Input Variance:
This occurs when costs are entered without a

quantity or when OH rates are changed.
Differences between target and allocated actual

costs that cannot be assigned to any other
category. Also used when no variance
categories defined in variance variant.
Scrap Variance:
Caused by differences between operation

scrap in routing and actual scrap confirmed.
Finally, we must settle our orders or product cost collectors. Product Cost Collectors
and orders are debited with actual costs during production. The actual costs posted to an
order can be more or less than the value with which an order was credited when the goods
receipt was posted. When you settle, the difference between the debit and credit of the
order is transferred to Financial Accounting (FI).
Relatable Example:
At month-end, we determine what batches of cookies are still in progress (WIP), review our
actual expenses and compare to our planned expenses (variances), and close our books for
the month (settlement). The cookies still in the oven are considered WIP (order status not
complete). We notice several types of cost variances due to higher milk costs (unfavorable
input price variance), less frosting waste (favorable scrap variance), and a cost difference
because we planned to purchase a higher percent of eggs from a lower cost farmer
(unfavorable mixed price variance). After analyzing these variances, we make a few changes
to our inventory costs of eggs and look for ways to save on milk costs. We close our books
for the month and record our profit and loss to the Income Statement.

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Production Orders tcodes

CO11N - Single Screen Entry of Confirmations

Full list of SAP PP Production Orders tcodes PP-SFC

Repetitive Manufacturing tcodes

MFBF - Backflushing In Repetitive Mfg

Full list of SAP PP Repetitive Manufacturing tcodes PP-REM

Information System tcodes

MCRE - Material Usage Analysis: Selection

MCP9 - SFIS: Select Run Schedule

Full list of SAP PP Information System tcodes PP-IS

OM17 - Define Actions for Status Switching

Full list of SAP PP KANBAN tcodes PP-KAB

Flow Manufacturing tcodes

MDVP - Collective Availability Check PAUF

Production Planning for Process Industries tcodes

CORR - Collective Entry of Confirmations

Plant Data Collection tcodes

CI42N - PP-PDC: Download Operations

Full list of SAP PP Plant Data Collection tcodes PP-PDC

Material Requirements Planning tcodes

MD51 - Individual project planning

Full list of SAP PP Material Requirements Planning tcodes PP-MRP

Production Planning tcodes

MD61 - Create Planned Indep. Requirements

Full list of SAP PP Production Planning tcodes PP-MP

Change Analysis tcodes

CCDB - CCDB Administration

Alternative historical data tcodes

S_B71_29000014 - Start Excel with BW Add-On and

Exception Management tcodes

EXCEPTION_MANAGEMENT - Exception Management

Web Channel Product Catalog tcodes

CRMD_MDM_FILTER - Maintain filter criteria for MDM

Read more: http://www.tcodesearch.com/transaction-codes/search?module=pp#ixzz4KJCiSqrX

CO11N - Single Screen Entry of Confirmations

Full list of SAP PP-SFC General tcodes

Order Planning tcodes

OPL8 - Order type parameters: Overview

Full list of SAP PP-SFC Order Planning tcodes PP-SFC-PLN

Order Closing tcodes

CO78 - Archiving orders

Read more: http://www.tcodesearch.com/transaction-codes/search?module=pp-sfc#ixzz4KJDOhBG0

Process Order tcodes

CORA - Process Order: Schedule Ext. Relshps

Full list of SAP PP-PI Process Order tcodes PP-PI-POR

Basic Data tcodes

C223 - Maintain Production Versions

Full list of SAP PP-PI Basic Data tcodes PP-PI-MD

CORA - Process Order: Schedule Ext. Relshps

Full list of SAP PP-PI General tcodes

Process Management tcodes

CO54 - Message Monitor

Full list of SAP PP-PI Process Management tcodes PP-PI-PMA

Production Campaign tcodes

PCA1 - Creating a Production Campaign

Process Data Documentation tcodes

Material Identification and Reconciliation tcodes

MIRCMR - Material Reconciliation

Read more: http://www.tcodesearch.com/transaction-codes/search?module=pp-pi#ixzz4KJE2RTMD

CK11N - Create Material Cost Estimate CO - Product Cost Planning

Read more: http://www.tcodesearch.com/tcodes/search?q=ck11n#ixzz4KJRDXoPf

CK11n = Create cost estimate

Create Product Cost Estimate