- This approach is suitable for most of the SAP customers with manufacturing facility and actual costing requirements.
This is the most important questions by any SAP Customer to have the actual costing, but without the implementation of Actual Costing Material Ledger components of SAP CO Module, As any SAP Customer don’t want to go into the complexity of Material Ledger, though it is the standard options of the Actual Costing by SAP,
Moreover the alternative to the above approach are as under;
In this approach the SFG and FG are maintained with moving average price, and the settlement of the production orders will be on a daily basis i.e. immediately after the goods receipt from the production order. (Before the sales or consumption of SFG/FG)
In which business scenario this approach is suitable:
In this approach the SFG/FG would be maintained with standard prices (As suggested by SAP best practice as well). However the standard costing of the SFG/FG would be carried out at the start of the current period or at the last day of the current period. This will ensure the impact of Moving Avg. price of Raw materials will be there in the latest standard cost of SFG/FG. Anyway the impact of change in conversion cost would not be that significant for monthly standard cost.
With this the available standard cost will be very close to the actual cost of the SFG/FG.
In which business scenario this approach is suitable:
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