SAP CO:S/4 HANA 2021: Training Discussion Batch 3

SAP CO: S/4 HANA 2021 - Product Costing & Material Ledger

The Product Costing module allows organizations to determine the production costs of products. This is integral for controlling and for assessing profitability. Material Ledger enables actual costing and supports multiple valuations in parallel.

Product Costing Techniques:

1. Product costing by order (Make to Stock): Costs are determined based on manufacturing orders. It's suitable for non-repetitive production.

2. Product costing by Sales order (Make to Order): Costing is done for specific sales orders. Typically used for customized products.

3. Product costing with Sales order controlling vaulted stock without sale order controlling: Costing for products manufactured in anticipation of sales orders but not attached to specific orders.

4. Product costing with Sales order controlling vaulted stock with sale order controlling: When both anticipated stock and actual sales order-driven stock exist.

5. Product costing with sales order controlling non-vaulted stock with sale order controlling: For products produced directly against sales orders without anticipation.

6. Product costing by period: Periodic costing for products irrespective of orders.

7. Repetitive manufacturing without reporting points consideration: Costs for products that are manufactured repetitively and without specific checkpoints.

8. Repetitive manufacturing with reporting points (work in process) consideration: Costs are captured at different stages or checkpoints of the production process.

9. Decoupling scenario: Integration between production order and product cost collector, allowing separate management of costs and production.

10. Joint Production Process: Multiple main products are derived from one production order.

11. CO-Product costing process and By Product Costing Process: Co-products are main products with similar value, whereas by-products have minor value compared to the main product.

12. Mixed Costing process- Split Valuation: When a material can be procured/manufactured in more than one way.

13. Sub-Contracting, External Operations Product costing process: Costs when a part of the manufacturing process is subcontracted to external suppliers.

14. Cross plants –Special Procurement product costing: Costs are determined when procuring from a different plant within the same company.

15. Additives cost estimation: The costs of additive materials in the manufacturing process.

SAP CO S/4 HANA 2021 -Material Ledger

1. Multiple Currencies:

   • Company Code Currency: Primary currency for a company code.

   • Group Currency: Consolidation currency.

   • Index based Currency: Adjustments for inflation or other index-based factors.

2. Multiple Valuations:

   • Legal Valuation: As per local regulations.

   • Group Valuation: Consolidated valuation.

   • Profit Center Valuation: Based on profit center reporting needs.

3. Transfer pricing:

   • Inter Company: Pricing between different company codes.

   • Intra Company: Pricing within the same company code.

4. Work in process functionalities to Actual Costing: Determines the cost of semi-finished goods.

5. Physical Inventory count integrated with Material Ledger/Actual Costing: Actual stock valuation as per physical count.

6. Distribution Usage variances: The differences between planned and actual usage of materials and activity types in production.

7. Activity Types: Quantitative measures of services provided by a cost center. Adjustments made for variances between planned and actual activity provided.

8. Material Ledger- Actual Costing Execution and CKM3: The CKM3 transaction provides a detailed material price analysis showing the evolution of material prices.

This overview provides a detailed but condensed understanding of the topics related to SAP CO: S/4 HANA 2021 in the context of Product Costing and Material Ledger. Each of these topics can further be elaborated into detailed processes, configurations, and examples based on real-time scenarios.