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 is 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.


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  1. How does the system decide which released execution model to provide cost estimate information for? I’ve updated a PM that is on variant 8, yet the system still shows V6 when the results of the estimate are run. What if you have two different production models for the same part (1 PM for each variant), how does the system tabulate cost?

    1. Hi,

      I would guess that since you you can only produce production lot against one particular production model with released execution model and you calculate actual costs against production lot, then you would get the cost calculated against the PM which you used in production. Hope it makes sense!

  2. would this also work in case the FG and Raw material are using perpethual cost methods “Moving Average”?

    1. hi,

      If you have FG and RM valuated with Moving Average then actual cost calculation would still work yes.

      Taken from SAP Manual:

      Actual Costing calculates period unit prices, meaning average cost for the evaluated period. For this, the system aggregates all postings to inventory including the opening balance to determine the total period cost (Costing Result) and the total period quantity (Costing Quantity). The ratio yields the period unit price, and this is used to valuate the remaining stock and all output from stock, e.g. goods issue to production or goods issue for customer
      Production Lots and Goods Receipt from Production
      All cost incurred within the evaluated period are allocated to the output in this period, even if the production lot is not yet finished.
      In case of By-products are valuated with standard cost, the main product receives the remaining actual cost.

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