Caseware idea join summarize5/31/2023 ![]() Consumption cost of Components are achieved through BOM (Bill of Materials - CS01) and Overhead cost is derived through Routing (CA01) which in turn uses Activity Types and Rates. ![]() Standard price for a material is achieved by taking into consideration components consumed on producing the material and overhead incurred. Valuation in this scenario is achieved using Split Valuation methodology. RM follows Moving Average Price (MAP) and SFG and FG follows Standard Price.Ĭompanies sometimes procure same SFG directly from outside as well as manufactures In-house. Valuation of these materials follow different approaches. In general, materials are categorized into 3 broad categories - Raw Materials / Packaging Materials (RM), Semi Finished Goods (SFG) and Finished Goods (FG). SAP Product Costing is indeed a complex subject and requires integration efforts from almost all modules starting from Production Planning (PP), Materials Management (MM), Logistics, Sales and Distribution (SD), Finance and Controlling (FI/CO). I am trying to summarize some typical issues clients faced after this module was implemented. ![]() ![]() I have been involved with lots of Clients in their SAP Product Costing Implementation and have seen issues they faced post implementation which threw their costing haywire.
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