Category Archives: SAP

Unit Costing

Sales order costing is one of the key aspects in sap as lot of companies use that component to determine the margins on the products. Cost estimate costs the specific sales document item and the costing results are transferred to the sales document as a condition value. Sales order costing can be performed using two different ways: Product costing and Unit costing Continue reading

Sales Order Costing – Part3

Date Control: Necessary control parameters for costing date

Quantity Structure: Determines the BOM application and routing selection to be used for costing. This can be maintained as global or separate application/routing selection by plant

If different routing selection need to be used by plant, then click on Qty Struct.Control/Plant and maintain it by plant

If different BOM application need to be used by plant then maintain it by plant

User exits for costing:

Sap provides certain userexits which can be used during certain scenarios to determine costs based on certain logic as per customer requirements

EXIT_SAPLCK21_002: This can be used with strategy U (user exit for material valuation)

EXIT_SAPLCK36_001: This can be used to update cost in valuated sales order stock scenario

EXIT_SAPLCK01_001: This can be used production resource/tooling cost

EXIT_SAPLCK21_001: Userexit for material valuation in cross company costing

EXIT_SAPLCKAZ_001/002/003:  Used for Display/Print

Costing of a sales item is determined by the account assignment settings by requirement class

Sales and Distribution à Basic Functions à Account Assignment/Costing à Maintain Requirements classes for Costing/Account Assignment

Costing – Determines whether costing is permitted or not

Costing ID – Determines whether automatic costing is allowed or not

Costing Method – Product costing or unit costing

Costing variant and Costing Sheet – variant and costing sheet to be used

Sales Order Costing: If this indicator is not checked, then production order cost estimate is used as EK02 value

Without Valuation Strategy: If this indicator is checked, then valuated sales order stock is valuated using the standard price from non-allocated warehouse stock

CndTypLineItems field is where the condition type need to be maintained, into which calculated costs are copied back in a sales order. Standard SAP provided Condition type is EK01/EK02

EK01 is used in scenarios where sales order costing is used as a basis for pricing in SD documents

EK02 is used to copy cost estimate as a statistical value and not used as a basis for pricing in SD documents

User Defined Error Management: In this step message can be controlled to be error or warning or information only during costing

Master Data Requirements:

Apart from above configuration settings, certain master data need to be maintained for costing to work as expected.

  • Material requires Accounting and costing views
  • Standard price in case of purchased material or PIR maintained
  • BOM and Routing maintained for manufactured materials
  • Costing relevancy flag on components in BOM and operations in routing
  • Right valuation class maintained on materials
  • If userexits are used, make sure the right logic is in place so that the program doesn’t pass incorrect values
  • Automatic account determination maintained (Transaction: OBYC)


Sales Order Costing – Part2

Overhead Keys and Overhead Groups:

These are used in combination when different overheads needs to be applied to materials based on a specific criteria. This involves creating overhead keys and then creating overhead groups with combination of overhead keys. Overhead group is maintained in costing view of material master and overhead key is maintained on costing sheet with corresponding percentage value or price value

Define Cost Components:

Controlling –> Product Cost Controlling –> Cost Object Controlling –> Product Cost by Sales Order a Preliminary Costing and Order BOM Costing –> Product Costing for Sales Order Items/Order BOMs

Define cost component structure and the associated cost components in this step. Cost components break down the cost of a material across the entire production structure into material costs, production costs, material overhead, production overhead etc

Costing Variants:

Consists of necessary control parameters to determine planned costs for a sales document item