Standard Costing - Product Cost Controlling

Standard Costing –Product Cost Planning

Solution Management ERP FinancialsSAP AG

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© SAP AG 2009. All rights reserved. / Page 3

Part A– Easy Cost Planning and Execution Services for Occasional UsersPart B – Multilevel Unit Costing – Can SAP Support Target CostingPart C – CO-PC-PCP Mass Costing for Sales Orders

Agenda

Easy Cost Planning and Execution Services forOccasional Users

Focus On Employees as End Users

Susanne often plans:

Business tripsExternal meetings

Anne,EventManager

Bob,ProjectManager

Tom,a WebKid

Susanne,Secretary

Anne plans events:

Trade fairsCustomer visits

Bob plans projects:

Consulting servicesNew constructions

Tom plans:

Holiday in Disneyland...

For example, Susanne...

...only needs three clicks to:

plan a business event

check the costs for her plan

trigger follow-up processes

Workplace

Easy Cost Planning Right at Your Workplace

from herWorkplace.

Easy Cost Planning

First clickFirst click --

Susanne starts

Choose Your Planning Form

Yes

Yes

no

Yes

and fills in therequired data

chooses apredefinedplanning formfor externalmeetings

Susanne

Web links formore information

She confirms...

WWW.Hotel.com

WWW.dinner.com

Second clickSecond click --

Automatic Costing

Susanne

Yes

Yes

no

Yes

WWW.Hotel-Worldwide.comWWW.restaurants.com

WWW.presents.com

can see detailedcosts for theexternal meetingin Berlin:

HotelTravelDinnerEquipment::

Yes

Yes

no

Yes

Subsequentprocesses ...?

Execution Services

Hospitality

Execution Services

Susanne

Reservation

Reservation

Equipment:BeamerTV-Set

wants to reserveequipmentfor the meeting.

selects the serviceReservation

sees the equipmentshe can reserve

posts the reservation

Third clickThird click --

She

Document Overview

Reservation

Existing reservations

Susanne

can follow up herprocesses

One more click...One more click...

even down to thedocumentscreated.

BeamerTV-Set

Benefits for Susanne...

She can:plan using her terms andconceptsuse www links for furtherinformation

She can:trigger follow-up processesdirectly from the planningavoid entering plan data twicecheck the status of processeseasily

Using Easy Cost PlanningUsing Easy Cost Planning

Using Execution ServicesUsing Execution Services

Everyone Benefits

which costing method to use in whichcasehow to work with R/3 Unit Costing or othermethods costing itemshow to create purchase orders,reservations, and so on

That´s Easy

has planned the external meeting withjust three clicks!

You can plan intentions the same way!

Susanne

You do not need to know:

Anne,Event

Manager

Bob,Project

Manager

Susanne,Secretary

Isn’t Something Missing...?

Remember?Susanne used a planning form!So someone must have preparedit for her...!

WHO could that be?What else does he or she do?

To be continued...

...Easy Cost Planning &Execution Services

II

© SAP AG 2009. All rights reserved. / Page 15

Part A – Easy Cost Planning and Execution Services for Occasional UsersPart B– Multilevel Unit Costing – Can SAP Support Target CostingPart C – CO-PC-PCP Mass Costing for Sales Orders

Agenda

Multilevel Unit Costing – Can SAP Support Target Costing

1. Overview2. Cost Estimates – Essentials3. Multilevel Unit Costing4. Conclusion

Agenda

Commited Cost

developmentconstruction prototype productionproduct idea

100 %

Phases

tools

detail ofquantitystructure

developmentconstruction

multilevel unitcosting

BOM

prototype

BOMrouting

production

materialcosting

BOMrouting

ABC

target costsset

base planningobject?? phases

product idea

Top-Down & Bottom-Up

Life cycle period 1 period 2 ...

Sales price : 125,- 120,-

Profit margin: 25 % 25%

Target costs: 100,- 96,-

100,-

60,- 20,-

20,- 15,- 15,-

Product CostPlanning through

all phases

1. Overview2. Cost Estimates – Essentials3. Multilevel Unit Costing4. Conclusion

Agenda

Itemization

Pump P-100Pump P-100

Fly WheelFly Wheel

Sheet MetalSheet Metal

Labor Sheet Metal

% Surcharge

Activities

20 Min 30 $

5 $

1 Ea 10 $

0,6 m2 20 $

1 Ea 150 $

1 Ea 215 $

Qty Unit Value

-

Costed BOM

Pump P-100Pump P-100

Fly WheelFly Wheel

Sheet MetalSheet Metal

Labor Sheet Metal

% Surcharge

Proc. Prod. Plan

20 Min 30 $

5 $

1 Ea 10 $

0,6 m2 20 $

1 Ea 150 $

1 Ea 215 $

Qty Unit Value

Labor Cutting

Labor Others

% Surcharge

Proc. Prod. Plan

Slug 100-310Slug 100-310

10 Min 20 $

5 Min 30 $

10 $

1 Ea 10 $

1 Ea 80 $

-

Cost Component Split

Material Labor Surcharge Process

100 80 15 20

30

5

10

20

80 50 10 10

20

30

10

10

80

Fly Wheel

Labor Sheet Metal

% Surcharge

Proc. Prod. Plan

20 Min 30 $

5 $

1 Ea 10 $

0,6 m2 20 $

1 Ea 150 $

1 Ea 215 $

Qty Unit Value

Labor Cutting

Labor Others

% Surcharge

Proc. Prod. Plan

Slug 100-310

10 Min 20 $

5 Min 30 $

10 $

1 Ea 10 $

1 Ea 80 $

-

Pump P-100

Sheet Metal

Methods, Objects, Results

Costing Method Material Base Planning Object

Unit Costing

MultilevelUnit Costing

Material Costingwith Qty Structure

Costing Run

Cost Component Split Itemization

XX

Costed BOM

Item Categories – Editable

Item Category...Item Category... ...enter......enter... ... System derives...... System derives...

V (Variable Item) ValueQty, Price,Description, Cost Element*

T (Text) Description

B (Base planning object) Price, Unit of Measure, Text,Cost Element, ValueBase Planning Object, Qty

M (Material) Price, Unit of Measure, Text,Cost Element, ValueMaterial, Plant, Qty

N (Service) Price, Unit of Measure, Text,Cost Element, Value

Service, Plant,Qty

F (External Activity) Price, Unit of Measure, Text,, Value

Inforecord, Purchase Org,Plant, Cost Element, Qty

L (Subcontracting) Price, Unit of Measure, Text,Cost Element, Value

Inforecord,Purchase Org, Qty

E (Internal Activity) Price, Unit of Measure, Text,Cost Element, Value

Cost Center, Act Type,Qty

P (Proces manual) Price, Unit of Measure, Text,Cost Element, Value

Business Process,Qty

Item Categories - Special

G (Surcharge) Text, Cost Element, ValueCosting Sheet

I (purchased part costing) Price, Unit of Measure, Text,Cost Element, ValueInforecord**

X (Process Cost) Process, Qty, Unit of Measure, TextCost Element, ValueTemplate*

Item Category...Item Category... …is defined by...…is defined by... ... and derives ...... and derives ...

S (Summary Line) Summary LineFormula, Text

O (Formula) Formula ResultFormula, Text, Cost Element

Item Category...Item Category... … is defined by...… is defined by... …and derives ...…and derives ...

Costing Items – How to Edit

ItemItem-Cat Ressource Qty Value

Pump 1 Ea

E Labor Sheet Metal 20 Min 30 $

P Process Cost 1 Ea 5 $

M Sheet Metal 100-700 0,6 m2 5 $

X M Fly Wheel 100-300 1 Ea 5 $

Item Cat.: MaterialItem Cat.: Material

MaterialPlant

100-300

1000

Qty Price fix / varDescription

Cost Elemnt Origin Group

Screen Shot: Display Material Cost Estimate

1. Overview2. Cost Estimates – Essentials3. Multilevel Unit Costing4. Conclusion

Agenda

Basic Scenarios

Blech

Rohling

Welle

Neue Pumpe

Scenario 1:New

Product

Top-DownEditing

Blech

Rohling A

Welle

Pumpe A

Blech

Rohling B

Welle

Pumpe B

Scenario 2:Similar Product

Copy Subordinate CostingStructure and make changes

Scenario 3:Product Changes

Blech

Rohling A

Welle

Pumpe A

Blech

Rohling B

Welle

Pumpe A

Copy fullCosting Structure and make

Changes

Aims of Multilevel Unit Costing

Simulation CostingWhat-if analysisChanges to prices, quantities, structures

Costing New ProductsSupplementing missing quantity structure dataCreating new quantity structure data

Costing CockpitVery easy to useGraphical interfaceMultilevel changes

Screen Shot: Multilevel Unit Costing

Multilevel Unit Costing - Layout

Ressource Qty Value

Costing Structure

Worklist/ Detailed List

Unit Costing / Header

Drag&

Drop

Costing Structure on/off Worklist on/off List on/off ? Quick-Info

ContextMenu

(rechte Maustaste)

Rapid Columnadjustment

ContextMenu(rechte Maustaste)CreateChangeDisplay--------------------Substructure...

Costing Structure

Costing Structure I

Material Cost Estimate w/o Qty StructureCreate, Change, DisplayCopy

Base Planning ObjectCreate, Change, Display

Material Cost Estimate with QtyStructure

DisplayCopy

Change Hierarchy Display

Costing Structure II

Copy

Costing Structurebefore

after

Insert

Orginalor

Copy?

before

after

Costing variant;Costing variant;Version

Costing Structure III

Changes Status

Error StatusError = redWarning = yellowInformation = green

Status & Revaluation

ChangedChanged Error

ContextMenu

(rechte Maustaste)

--------------------Teilstruktur

...

Cut & Paste

X

Copy into buffer

Insert from buffer

Filtering

X

Filter setzen

XContextMenu

(rechte Maustaste)

--------------------Filteruse

...

Worklists

X

Worklist

Material Cost Estimate

Base planning ObjectInternal Activity

Processes

My Worklists

Personal/ Common

Buckets

Change buckket to worklist

Brnach to master data

Search help

Examples of Layouts

Header

Report

Basic layout Edit Layout

Reporting / Edit Reporting / Details

Basic Layout

BOM + List Screen

1. Overview2. Cost Estimates – Essentials3. Multilevel Unit Costing4. Conclusion

Agenda

Can SAP support Target Costing?

High flexiblitySimulation and integrationDifferent tools during the life cycle

No costing surprises:based on same costing rulessame costing structuresUses existing master data (whereavailable)

Full comparison of cost estimates during thelife cycle

Valuation of targeted sales qty‘s in CO-PApossible

yes

What to do?

No or just additional customizing inCO-PC-PCP

New costing variants and valuationvariants

Learn to use the tool2 days to learn basic navigationDesigned for the power user (costestimator)

Multilevel Unit Costing availablewithin the R/3 4.6B standard delivery.

Notmuch

(hing)

© SAP AG 2009. All rights reserved. / Page 47

Part A – Easy Cost Planning and Execution Services for Occasional UsersPart B – Multilevel Unit Costing – Can SAP Support Target CostingPart C– CO-PC-PCP Mass Costing for Sales Orders

Agenda

CO-PC-PCP Mass Costing for Sales Orders

Mass Costing for Sales Orders

Business ValueSales documents can be entered faster since it is no longer necessary to wait for automaticcosting. It is now possible to run costing at a later time (such as during the night).Documents/items can be selected using various criteria. Initial costing or repeated costing ispossible (with a valuated sales order or project stock, marking is also possible).

RealizationSeparate transaction for mass costing of sales documents (transaction CK55)Selection of the items to be costed based on:

Document number, item number, date, material, status etc.Implementation of a BAdI for customized selection

A log records the success or failure of costing. Cost estimates can be displayed from the log.

Mass Costing for Sales Orders

Mass Costing for Sales Orders

Mass Costing for Sales Orders

© SAP AG 2009. All rights reserved. / Page 53

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