Production Planning Settings
Define PP Order Type
Path: Production- Shop Floor control – master data – Order – define order type
Tcode: OPJH
Select PP01
Copy SAP standard Production order PP01 as 19PO
Define Order Type Dependent Parameters
Path: Production- Shop Floor control – master data – Order – define order type dependent parameters
Tcode: OPL8
Copy from plant 1000 and Order type PP01. Change Plant to 01M1 and Order type to 19PO
Define Scheduling Parameters for Production Order
Path: Production- Shop Floor control – operations – scheduling -define scheduling parameters for production orders
Tcode: OPU3
Copy Plant 1000 and Order type PP01 as Plant 01M1 and Order type 19PO
Define Confirmation Parameters
Path: Production- Shop Floor control – operations – confirmation – define confirmation parameters
Tcode: OPK4
Copy Plant 1000 and Order type PP01 as Plant 01M1 and Order type 19PO
Define Checking control
Path: Production- Shop Floor control – operations – availability check – define checking control
Tcode: OPJK
Copy Plant 1000 and Order type PP01 as Plant 01M1 and Order type 19PO for business functions 1 and 2
Define Material Type assignment
Path: Production – Basic Data – Routing – General Data – Define Material Type assignment
Tcode: OP50
Material Type 02FG and 01SF define in FI-MM
Maintain Overall Plant Parameters
Path: Production – MRP – Plant Parameters – carry out overall maintenance of plant parameters
Tcode: OPPQ
Copy Plant 1000 to Plant 01M1
Click on Maintain – Enter plant 01M1 – Click on MRP Controllers
Click on MRP controller – New entries – Enter Plant 01M1 and save
Click on Conversion under maintain planned orders
Click Planned Order and update Production Order to 19PO
Integration between CO and PP
Check Order Type
Path: Controlling – Product Cost Controlling – Cost Object Controlling – Product Cost by Order – Manufacturing Orders – Check Order Types
Tcode: KOT2
Update your order type 19PO as below
Update Settlement Profile
Update Object Class: Production
Residence Time: 6
Define Cost Accounting relevant default values for order type
Path: Controlling – Product Cost Controlling – Cost Object Controlling – Product Cost by Order – Manufacturing Orders
Update as below:
RA Key: MK14
Costing Variant Plan: 19P
Costing Variant Actual: 19A
End User Steps
Create Finished Goods Material Master
Tcode: MM01
Basic Data 1 and 2 view
- Required for all material types
- Fields: Base Unit of Measure, Material Group, X-Plant Status, Prod Hierarchy
MRP 1 View (Material Requirement Planning)
- MRP Type: ND (No Planning)
- Procurement Type: X (Both Internal and External)
- Storage Location: FG
- Availability Check: KP (No Check)
MRP 2 View
Back flush:
- Always Back flush
- Work Center decides
Accounting 1
- Valuation Class: Determine GL account posted
- Price Control
- S: Standard cost. Used for FG
- V: Moving average price. Used for Raw Material
- Price Unit: Cost per Unit ( Units specified here)
Costing 1
- With Qty Structure: Selected for material costed with BOM + Routing
- Material Origin: Select to display Material Number in controlling reports
- Variance Key: Specify the one created earlier.
- Costing Lot size
Costing 2
- Future Price: Current market price
- Current Price: Current Release Price
Tcode: MM01
Material MK14PORMX created
Create MK14PORMY. Same as MK14PORMX
Material MK14PORMY created
| Finished Goods | Raw material |
| MK14POFGX | MK14PORMX |
| MK14PORMY |
Create BOM
Tcode: CS01 / CS02 / CS03
Create Finished Goods BOM (Bill of Material)
Above BOM => need 2 kg and 3 Kg of Raw material X and Y to manufacture 1 Kg of FG
Routing
| Routing | Setup Activity | Machine Activity | Labor Activity | Work Center |
| Operation 10 | 1 | 2 | 3 | WC 1 |
| Operation 20 | 1 | 2 | WC 2 |
Routing is a list of Operations performed on Raw material to convert it into FG. These operations are performed at locations called work centers.
Create Work Center
Tcode: CR01
To hide Person responsible field, go to OPFA – Basic Data - P3000-VERAN – Hide
SAP Default
Below screen appears when press enter on earlier screen
Cost center to which operational costs would be booked.
Similarly create work center 2 and WK Center 3: MK14WC2
Work center MK14WC2 in plant 01M1 was created
Create Routing
Tcode: CA01
Click Operations tab and enter below data
- Control Key PP01: SAP standard for In House Production. Populated from work center
- Base Unit 1: Quantity of finished goods (MK14POFGX) that will be produced by applying these operations in the work center
- MK14WC1: Work Center 1. Will perform 1 hour of Setup activity, 2 hour of Machine activity and 3 hours of labor to produce one unit of FG
- Similarly, for MK14WC2 and MK14WC3
Routing was saved with group 50001604 and material MK14POFGX.
Create Standard Cost
Tcode: CK11N
| BOM : CS01 | ||||
| FGX | Kg | |||
| RMX | 2 | |||
| RMY | 3 | |||
| Routing: CA01 | Setup Activity | M/C Activity | Labor Activity | Work Center |
| Operation 10 | 1 | 2 | 3 | WC 1 |
| Operation 20 | 1 | 2 | WC 2 | |
| Std Cost Estimation | ||||
| Raw Material | Kg | Avg Price | Total | |
| RMX | 2 | 300 | 600 | |
| RMY | 3 | 400 | 1200 | |
| Total Price RMX +RMY | 1800 | |||
| Operation 10 (Price from KSBT) | Hours | Rate/Hr/EUR | Total | |
| Setup | 1 | 470 | 470 | |
| Machine | 2 | 294 | 588 | |
| Labor | 3 | 285 | 855 | |
| Total Price OP 10 | 1913 | |||
| Operation 20 | ||||
| Setup | - | |||
| Machine | 1 | 294 | 294 | |
| Labor | 2 | 285 | 570 | |
| Total Price OP 20 | 864 | |||
| OH (Valuation variant : OKKN) | ||||
| MOH | 10% | 1800 | 180 | |
| AOH | 15% | 2777 | 417 | |
| Total OH Price / Kg | 597 | |||
| Standard Cost Estimation for 1 Kg | 5174 |
Create Standard Cost Estimate
Tcode: CK11N
Select for detailed itemized view
Itemized Product Cost
Calculated Value in the excel
| BOM : CS01 | ||||
| FGX | Kg | |||
| RMX | 2 | |||
| RMY | 3 | |||
| Routing: CA01 | Setup Activity | M/C Activity | Labor Activity | Work Center |
| Operation 10 | 1 | 2 | 3 | WC 1 |
| Operation 20 | 1 | 2 | WC 2 | |
| Std Cost Estimation | ||||
| Raw Material | Kg | Avg Price | Total | |
| RMX | 2 | 300 | 600 | |
| RMY | 3 | 400 | 1200 | |
| Total Price RMX +RMY | 1800 | |||
| Operation 10 (Price from KSBT) | Hours | Rate/Hr/EUR | Total | |
| Setup | 1 | 470 | 470 | |
| Machine | 2 | 294 | 588 | |
| Labor | 3 | 285 | 855 | |
| Total Price OP 10 | 1913 | |||
| Operation 20 | ||||
| Setup | - | |||
| Machine | 1 | 294 | 294 | |
| Labor | 2 | 285 | 570 | |
| Total Price OP 20 | 864 | |||
| OH (Valuation variant : OKKN) | ||||
| MOH | 10% | 1800 | 180 | |
| AOH | 15% | 2777 | 417 | |
| Total OH Price / Kg | 597 | |||
| Standard Cost Estimation for 1 Kg | 5174 |
If error add below entries in OBYC – GBB
KSBT
Per Unit price match
| 330101 | Set Up activity cost | 470 |
| 330102 | Machine activity cost | 294 |
| 330103 | Labor activity cost | 285 |
Prl: 1 : Planned Price
Prl 5: Actual Price
OKTZ ( Cost Component Structure to check errors)
If error in log don’t save. Material can be re costed. It cannot be re costed after saving
Mark and Release Standard Cost Estimation
Transaction code: CK24
| Mark | Standard cost updated as future price in costing tab 2 |
| Release | Future price now becomes current price in costing tab 2 |
| Standard cost updated as standard cost in accounting tab 1 in MM02 |
May have to close MM period in MMPV
Display Standard cost with cost component structure
Transaction Code: CK13N
Standard Cost Report: S_P99_41000111
Standard Cost Report: S_P99_41000111
Product Costing Tables
| s.no. | Tables | Description |
| 1 | KEKO | Product Costing - Header Data |
| 2 | CKIS | Items Unit Costing/Itemization Product Costing |
Product Costing – Actual Cost
We have calculated standard / estimated cost of FG. Now we will create a Production Order and calculate actual cost of FG. Difference between actual cost and Standard / estimated cost will be the variance
Create Production Order: CO01
Now click Cost Order button. This will calculate the Planned cost of the Production Order. Standard cost is always for 1 unit. Planned cost is for the total production order unit (3 kg in this case). Thus, FC per unit differ between standard cost and planned cost
Click Goto – Cost – Itemization to view the planned cost
Planned cost Material = 2 Kg (BOM) * 3 Kg (Prod Order) = 1800
Planned cost Material OH = 10% OF 1800 (Costing Sheet) = 180
Planned cost activity OH = 15% of total activity cost (268) = 35
COGM / COGS = 3 (Prod Order Qty) * Standard Cost (753.23) = 2259
Create Purchase Order for Raw Material: ME21N
Standard PO (SAP) created under the number 4500043447
Raw Material Receipt from Vendor: MIGO
MIGO - Display
Issue Raw Material to Production Order: MIGO
Raw Material Issued to Production at Moving average price. Check in MM03
Moving average Price MM03
Go to Operations and confirm actual hours spent on converting Raw Material to FG: CO11N
- Display Standard cost estimate: CK13N
- We have calculated Standard cost / Estimated cost of the finished product. Now we will manufacture finished good and calculate its actual cost. Then find variances between standard cost and actual cost
Steps to manufacture finished goods, find actual cost and month end product costing activities
- Create Production Order to manufacture FG: CO01
- When Production is saved Planned cost of FG is calculated in the production order. Now standard cost is always for 1 kg of material. Planned cost is for the total Production order material which can be 2 kg or more. There is difference between Standard cost and Planned cost due to fixed cost being same in both
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