Actual Costs in SAP Business ByDesign – price control standard

Quick overview of how actual costs for materials are handled in SAP BYD for materials with standard price control.

Material RMS10000 is semi-finished product which is used to produce finished good VT10002.

Both materials are handled by standard price in the system.

To produce RMS10000 we are buying another raw material RM10000 to use it as a component.

Business transactions which are needed to calculate actual cost and new standard price for VT10002:

  1. Purchase order of RM10000
  2. Production order of RMS10000
  3. Production order of VT10002
  4. Sales order/invoice of VT10002

Before calculating the actual cost for VT10002 the sales invoice is costed adn the contribution margin is calculated by the standard price in the system. In order to know the actual cost of sales(COGS) we need to calculate the actual cost taking into consideration the cost of raw materials, cost of labour and resources and the allocated overhead costs(general office costs etc) which happened while producing VT10002.

Here’s how to do the actual costing in the system:

Creating the cost estimate

WC: Inventory Valuation->Material cost rollup

Create new run and include the materials you want to calculate the cost for. You can run it in test mode to check the outcome.

Here we see the actual costs occurred for producing the RMS10000. This includes cost of RM10000, labour and overhead of general administration costs.

You can now go to WC:Inventory valuation->Material Cost Estimate release and release the cost estimate.

After the release of the cost estimate its possible to run the inventory cost update

WC: Inventory valuation->Update Inventory Costs

Create the update and test it and then post it.

You can check the postings made to the inventory valuation:

Here you will see that the old standard value of the VT10000 was 35 and the new calculated actual cost isĀ 57,31.

This change will also reflect as a new standard cost in the material master:

Also now its possible to see the actual cost of sales for the sales invoice for material VT10002. It’s available in WC: Cost and Revenue->Reports->Profit Overview by Product

In the report you can see the actual contribution margin of the sales invoice.