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Re: Cost Run concept

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Hi Ahmad

 

 

You are mixing 2 things in concept...

 

Concept 1: Standard cost & run (Ckk1n/CK24 or CK40n)

 

   Where we manufacture SFG or FG material in house it require to have a standard cost estimation and update in MMaster. As this materials are produced inhouse you can't have a procurement price so must have have a standard cost to value the inventory of these material at the time of GR....

 

   But sometimes we maintain standard price for procured raw materials also as per business requirement but that is not mandatory ,,,we prefer to maintain MAP for procure items..

 

   So in costing run we estimate, mark and release standard cost of SFG/FG goods

 

 

Concept 2: Cost in Production order...this is when we actually doing actual production and order is an object to capture plan and actual cost in the order through Goods issue and activity confirmation. Plan cost are generated when we create the order by taking BOM components and activity and rate/plan price of activity. GR value in Plan & Actual is based on standard cost updated in concept 1...

 

 

   Now ..you have 2 type of costs available in order one is plan cost and other is actual cost...so can analyse the position...

 

 

 

Kamal


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