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SAP CO-PC | Product Costing

Product Costing

 

In this section, you will be able to understand the Product Costing.

Manufacturing Process

 

Types of Manufacturing

  • Discrete Industry

  • Process Industry (PI)

  • Repetitive Industry

Methods of Manufacturing

  • Make to Stock (MTS)

  • Make to Order (MTO)

Discrete Manufacturing

It is based in production orders, with products that can be assembled and dis-assembled.

Benefits:

  • Planning and manufacturing depends on production orders

  • Materials will be issued with reference to production orders

  • Products can change frequently

  • Production is carried out on different production lines

  • Product costing and settlement is done through production orders

Master Data:

  • Bill of Materials (BOMs)

  • Routings

  • Work Centers

  • Production Version

Example of Industries:

  • Mechanical Engineering (Cars, Airplanes, Etc...)

  • Consumer Goods

  • Electronics

Process Industry Manufacturing

It is based on process orders, with products batch-oriented, with integration tools PP-PI (Production Planning / Process Industry)

Benefits:

  • Batch oriented process manufacturing.

  • Copy the master recipe and adjust it to actual production

  • Process Management between PP-PI and process control during the execution of a process order

Master Data:

  • Master Recipes

  • Resources

Example of Industries:

  • Pharmaceutical

  • Chemical

  • Food

  • Beverage

Repetitive Manufacturing

It is based on planned orders, produced repetitively or continuously in production lines, in a continuous production scenario.

Benefits:

  • Production is based on the planned orders

  • Planning and manufacturing is based on period wise

  • Production are carried out on a single production line (repetitively)

  • Product costing and settlement is done through product cost collector

  • Simpler back flushing 

  • Scenarios with high product stability, high repetition rates, and low product complexity

Master Data:

  • Product Cost Collector

  • Rate Routing

  • REM Profile

  • Production version

Example of Industries:

  • Mechanical Engineering

  • Consumer Goods

  • Electronics

Step Process in Discrite / Process (MTS / MTO)

  • Create Independent Requirements:

    • Create Planned Independent Requirements | Make-To-Stock T-Code: MD61

    • Create Customer Independent Requirement / Sales Order | Make-To-Order T-Code: MD81 / VA01

  • Check Demand Management | Make-To-Stock T-Code: MD04 | Make-To-Order T-Code: MD04

  • Run MRP | Make-To-Stock T-Code: MD01N | Make-To-Order T-Code: MD01N

  • Production Orders:

    • Convert Planned Orders to Production Orders | Make-To-Stock T-Code: MD04 | Make-To-Order T-Code: MD04

    • Create Production Order Manually | Make-To-Stock T-Code: CO01| Make-To-Order T-Code: COR1

  • Release Production Order | Make-To-Stock T-Code: CO02 | Make-To-Order T-Code: COR2

  • GI to Production Order | Make-To-Stock T-Code: MIGO | Make-To-Order T-Code: MIGO

  • Production Order Confirmation | Make-To-Stock T-Code: CO11N | Make-To-Order T-Code: COR6N

  • GR to Production Order | Make-To-Stock T-Code: MIGO | Make-To-Order T-Code: MIGO

  • Production order Teco | Make-To-Stock T-Code: CO02 | Make-To-Order T-Code: COR2

  • Overhead calculation | Make-To-Stock T-Code: KGI2 | Make-To-Order T-Code: KGI2

  • WIP Calculation | Make-To-Stock T-Code: KKAO / KKAX | Make-To-Order T-Code: KKAO / KKAX

  • Variance Calculation | Make-To-Stock T-Code: KKS1 / KKS2 | Make-To-Order T-Code: KKS1 / KKS2

  • Production Order Settlement | Make-To-Stock T-Code: KO88 / CO88 | Make-To-Order T-Code: KO88 / CO88

  • Close Production Order | Make-To-Stock T-Code: CO02 | Make-To-Order T-Code: COR2

References: SAP (www.sap.com); SAP Support (support.sap.com); SAP Help (help.sap.com); SAP Blog (blogs.sap.com)

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