Product costing run steps

Product Costing – Product costing is very important and complex activity for planning and manufacturing team.Total cost of product consist two parts i.e. Fixed cost and Variable cost.

Fixed cost – It contains all expenses which has no direct or proportional relation with production i.e. power, rent, salary etc.

Variable cost - It contains all expenses which has direct relation or impact with production i.e. raw material, labour.

In below document we will see how to setup/config vendor performance monitoring/measurement In SAP.

So by adding above 2 costs we will have final cost of product i.e. Planned cost.

Steps for Product costing run

For successful product costing we have to fulfil few prerequisites like Creation of Bill of Material, Activity creation and activity rate assignment (KP26).

Step for Product costing given below

T Code CK40N

Enter T Code CK40N

Enter Run name and costing run date and press enter.Then click on create button

costing run

Enter required parameter for costing run.

Note – These parameters vary from org to org so take help of CO consultant for costing relevant setup.

costing run

Press enter and Enter Validity dates.

costing run

Press Save button , on saving below screen will appear.

costing run

Click on parameter button against Flow Step 1. Selection above

Enter range of materials subjected to costing along with material type and plant.

costing run flow step selection parameter

click on execute button and press enter

edit costing run

Check log file and rectify warning message before proceeding further.

Repeat same steps for next flow step 2. Structure Explosion in foreground.

costing structure explosion

Repeat same steps for next flow step 3 . Costing in foreground.

Below screen will appear,here out of 766 FG and SF material some 22 material contains error.Those 22 Material costing will not take place (you may click on log to analysis error)

costing error log and solution

Repeat same steps for next flow step 4 . Analysis in foreground

Select Result of Costing run

costing flow step analysis
costing flow step analysis

Click on save and press execute button, below screen appears u may analysis it by taking into excel.

analyze/compare material cost estimate

follow next step 5 . Marking

costing price release

(Some time lock indicator may be in lock mode, in that case we need to unlock it by click on lock picture)

edit costing run

The below screen will appear.

price update

remove test run n click on background processing and save.

before proceeding further, check standard accounting price in material master in accounting 1 view and costing 2 view as below.

Material master costing view

on successful run system will update future price in Material Master.

price update

on execute marking ,system will update future price for period here 4.2011.

Comparison between future price and Standard price given below

price comparison

Go back and click on next Flow Step 6. Release

Here this activity will update the material master current price and will revaluate semi finish and finish material. System will also pass required accounting entries.

costing price release

system will post price change entries for all stock items and material master of 13000010 Accounting 1 view, new price updated.

costing price release

Material Master View on Price updation

costing price release

we can run costing by using above steps in order to calculate planned price however actual prices will be calculated as per material posting and activity confirmation.

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