SAP ABAP IMG Activity SIMG_ORKKBEWAUSAUF (Define Valuation Variant for WIP and Scrap (Target Costs))

Hierarchy

☛ SAP_FIN (Software Component) SAP_FIN
   ⤷ CO-PC-OBJ (Application Component) Cost Object Controlling
     ⤷ KK0C (Package) Customizing for Cost Object Controlling

IMG Activity

ID	SIMG_ORKKBEWAUSAUF	Define Valuation Variant for WIP and Scrap (Target Costs)
Transaction Code	S_ALR_87008061	IMG Activity: SIMG_ORKKBEWAUSAUF
Created on	19981222
Customizing Attributes	SIMG_ORKKBEWAUSAUF	Define Valuation Variant for WIP and Scrap (Target Costs)
Customizing Activity	SIMG_ORKKBEWAUSAUF	Define Valuation Variant for WIP and Scrap (Target Costs)

Document

Document Class	SIMG	Hypertext: Object Class - Class to which a document belongs.
Document Name	SIMG_ORKKBEWAUSAUF

In this section you can create a valuation variant for the valuation of work in process and unplanned scrap (scrap variances) at target costs. You define how the system calculates the target costs for the valuation of work in process and how it calculates the target costs for the valuation of scrap.

The target costs can be calculated as follows:

• At planned costs - that is, on the basis of a preliminary cost estimate for the production order, process order, or product cost collector
• In an alternative material cost estimate

  You also specify the costing variant and the costing version.

• On the basis of the standard price calculated in a current standard cost estimate
• If you withdraw materials from the nonreserved stock in make-to-stock production, these standard costs are calculated on the basis of a standard cost estimate for the material.
• If you are using a valuated sales order stock in sales-order-related production, the system uses the cost estimate on which the calculation of the standard price is based. You specify in the requirements class how the standard price for individual requirements materials is calculated with an valuated sales order stock.
See also: Check Requirements Classes

If you always want to valuate the work in process and scrap at the target costs calculated on the basis of a standard cost estimate, do not create a valuation variant for work in process and scrap.

Example

Requirements

Make sure that the cost estimate used as a basis for calculating the target costs fulfills the following requirements:

• The cost estimate has been created and released
• The results of the cost estimate are updated as an itemization

  The itemization for the preliminary costing for manufacturing orders is generated dynamically when the work in process or variances are calculated. Note that this may have adverse effects on performance.

• The cost estimate is valid at the time the variances are calculated

To be able to calculate work in process at target costs, the order must have the settlement type PER (Periodic). That is, the default values for the order type must be as follows:

• For product cost collectors the default rule must be STR
• For manufacturing orders the default rule must be PP2

See also:

• Define Default Values for Order Types in Product Cost by Period
• Define Default Values for Order Types in Product Cost by Order

You must also have carried out the following steps:

• Maintain controlling area
• Maintain versions
• Define results analysis keys
• Define results analysis versions
• Define valuation method (target costs)

Standard settings

Recommendation

The valuation of the work in process and scrap at target costs most closely approximates your true costs. If the quantity structure of the production order and process order is changed, or if the routing for the production version is changed, the affected orders can be recosted. Future confirmations and the confirmations that have already been made in the current period are valuated on the basis of this new cost estimate.

Activities

1. Decide whether you want to valuate the work in process and the scrap at target costs that are not calculated on the basis of a standard cost estimate.
2. If appropriate, define a valuation variant for work in process and scrap (target costs).
3. If you want to valuate the work in process in accordance with the valuation variant, assign the valuation variant for work in process and scrap to a results analysis version.

   See also: Assignment of valuation variant for WIP to results analysis version

4. If you want to valuate the scrap in accordance with the valuation variant, enter the valuation variant for work in process and scrap in target cost version 0 in the field Valuation variant for scrap.

   See also: Define target cost versions

Further notes

In repetitive manufacturing, if you want to valuate the work in process and scrap on the basis of a preliminary cost estimate for the product cost collector, you should make sure that the confirmations that affect simultaneous costing are made on the basis of a preliminary cost estimate for the product cost collector. This means that when you confirm, the system gives you default activity quantities on which the preliminary cost estimate for the product cost collector are based.

See also: Check Confirmation Data for Repetitive Manufacturing Profiles

For detailed information on the valuation of work in process and scrap at target costs, see the document Cost Object Controlling -> Product Cost by Period.

For detailed information on the calculation of standard prices with a valuated sales order stock or project stock, see the documentation Cost Object Controlling -> Product Cost by Sales Order.

Business Attributes

ASAP Roadmap ID	204	Establish Functions and Processes
Mandatory / Optional	2	Optional activity
Critical / Non-Critical	1	Critical
Country-Dependency	A	Valid for all countries

Assigned Application Components

Documentation Object Class	Documentation Object Name	Current line number	Application Component	Application Component Name
SIMG	SIMG_ORKKBEWAUSAUF	0	HLA0009426	Product Cost by Order

Maintenance Objects

Maintenance object type

C

Customizing Object

Assigned objects
Customizing Object	Object Type	Transaction Code	Sub-object	Do not Summarize	Skip Subset Dialog Box	Description for multiple selections
V_TKV13	V - View	SM30	0000000002	☐	☐	Valuation Variants for Scrap and WIP

History

Last changed by/on	SAP	19981222
SAP Release Created in