how costing is done in pp or how u will know the cost of a product which is ma

how costing is done in pp or how u will know the cost of a
product which is manufactured in ur plant

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how costing is done in pp or how u will know the cost of a product which is manufactured in ur pla..

Answer / vicente pires

In discrete scenario (with production orders) all movements
to order (like raw materials consuption and activities
posting) are valuated and recorded in each order when
confirmations ocurrs, increasing the cost balance of order.

when material is posted to stock, the order balance is
decreased by the value of the material.

After order is finished remaining diferences in the order´s
balance is posted to liquidation rule of the order, usually
the order´s material acount, valuating the stocks.

In Repetitive scenario the process is almost the same, just
changing the cost object from order to cost colector. In
that case you can´t evaluate costs by orders, just by
periods.

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how costing is done in pp or how u will know the cost of a product which is manufactured in ur pla..

Answer / nanduri k. prasad

There are different methods of doing product cost estimate.
e.g., Std. cost estimate or variable cost estimate.

From the BOM and routing the total no of components used
for that product is calculated using the price mentioned in
accouting views and from routings each operation cost is
calculated from the activity types defined in workcenters.
Collectively this cost is displayed in Product cost
estimate as cost of manufacture in the T.code CK 11n.

In case of variable cost, all the variables are considered
for the production order and the actuals are considered for
calculating the product cost. It is also posible to have
cost estimates and actual costs from which we can find the
variances.