SAP BLOG Product Cost Collector Process

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22 Ara 2017
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One of the exciting parts to SAP is how intergrated it is between the different operational modules. The use of Product Cost Collectors to track production is a good example. In this blog I plan on following the Product Cost Collector Process from creating a material to creating cost estimates and then creating the cost collector. This process takes seven steps:

1. Create Finished Goods(FERT) and Raw Material(ROH)

2. Create Bill of Materials(BOM) for the FERT

3. Create a Routing which generates a Routing Group Number. Even though there is no activity or charge on this Routing it is needed later in the Backflushing because it has a Control Key linked to it.

4. Create Production Version(MM02)

5. Use CK11N to create the Cost Estimate.

6. CK22 is used to open the period for Marking And Releasing Cost Estimate in the Costing Runs.

7. CK24 is a costing run for just a single material. This transaction allows you to Mark and then Release a Costing Run for an individual material.

8. KKF6N is used to create the Product Cost Collector.

Create Materials MM01​


For creating materials use MM01. When the materials are going to be extended from another company code it’s easy to use the Reference field.

ProdCostColl1.png


Now select the views you want and update the details that are unique to the plant, e.g. storage locations.

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Confirm that the ML act button is activated and for FERT the Price Deter 3 while ROH uses 2.

Create Bill of Materials(BOM)​


Logistics –> Production –> Master Data –> Bills of Material –> Material BOM(CS01)

ProdCostColl3.png


Enter material, plant and BOM Usage

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Enter Item Category L, material number and quantity. The UOM will default from the material master. Then click on save.

Create a Routing(CS01)​


Logistics –> Production –> Master Data –> Routings –> Standard Routings(CA01)

ProdCostColl5.png


The Group, Group counter, Usage and Lot size will default into the screen. Change the status to 4 for released. Now click on the Operations Button.
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Enter the Work Center, Plant, Control Key = PP01 always and Description then save.

Create Production Version(MM02)​


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Key in the plant and then hit enter.

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Tick the Repetitive mfg button and enter your REM profile. The click on the Prod/Versions button.

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Enter validity date range and tick on the Reptitive Mfg button. Then click on Details button at the bottom.

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Enter the Lot size, the Routing and BOM usage as shown. Then click on the check button and the lights shold turn green.

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You then need to click on continue twice to get to the screen where you click on save. You can verify your details by reviewing t-code C223.

Create Cost Estimate(CK11N)​


Now that we have the master data in place it’s time to move on to the costing step. Here we will use Cost Estimate with Quantity Structure:

Accounting –> Controlling –> Product Cost Controlling –> Product Cost Planning –> Material Costing –> Cost Estimate with Quantity Structure(CK11N)

ProdCostColl16.png


Key in the material number, plant, costing variant and costing version and hit enter, the Transfer Control should default. Then click on the Dates tab and hit enter and the dates default, hit enter a second time, and the estimate is created. When you get the Cost Estimate view click on the Save button.

ProdCostColl17.png


Price Update Organization for Costing(CK22)​


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Key in the period and hit enter and the pop-up appears where you then key in the Costing Variant and Costing version. Click on the save button and you’ll get a list of all the company codes in your organization.

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Page down to the Company Code you are working with and double click it to turn the button green meaning that perod 7 is now open for Marking and Releasing the cost estimate.

Create Costing Run for Individual Material(CK24)​


Accounting –> Controlling –> Product Cost Controlling –> Product Cost Planning –> Material Costing –> Price Update(CK24)

ProdCostColl20.png


Key in your period/year, company code, plant and material. Run this in Test Run first to make sure there aren’t any errors. Clcik on Execute to Mark the Cost Estmate.

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You’re stil lin test mode but it gives you all green so the live cost estimate will run without errors. Normally if there are errors they appear on this screen and are usually self explanatory. Now click on the green arrow and go back one screen

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This shows the cost estimate was marked without errors. Green arrow back again and rerun the transaction with the Test Run turned off.

After excuting the Mark run change to Release by clicking on the Relase button. Execute the transaction again but this time for Release and you get a message like this:

ProdCostColl23.png


Now back out one screen:

ProdCostColl24.png


It’s been released without errors. There are three lines because there are three currency types being maintained in this particular example, Company Code Currency 10 -USD, Group Currency 30 – USD and Index-based Currency 50 – EUR. Click on the save button and you now have a Released Cost Estimate.

Create Production Cost Collector(KKF6N)​


Accounting –> Controlling –> Product Cost Controlling –> Cost Object Controlling –>Product Cost by Period –> Master Data –> Product Cost Collector(KKF6N)

ProdCostColl25.png


Enter the material number and plant and then click on Button in the top left to create a new Cost Collector.

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All of these fields default except the Production Version field. Enter the Production Version and then click on the Confirm button to continue.

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The Data Tab defaults with the information you need. Now check the Header Tab.

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Again the data defaults, verify it’s accuracy and then click on the Production Process Tab.

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On this tab the Production Process No. is generated and you need to enter a quantity in the Costing Lot Size then save and you’ll see this pop-up

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Click on the yes button to continue. This will create the Cost Collector.

If you forget to do this step, after you save the Cost Collector then you have to follow-up with this step:

ProdCostColl31.png


Select the Cost Collector that was just created.

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Now click on the change button that is highlighted.

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At this point the Cost button is activated so now click on the Cost Button

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The Preliminary Cost Estimate has been created now click on the save button.

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The Cost Collector has now been updated with a Prelimnary Cost Collector and is ready to use. I hope this helps in understanding how Cost Collector and interacts with master data in the MM Module.

I find it always helps to understand the master data or configuration requirements of activity and processes that cross over the SAP Modules.

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