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Costing for New Products
New product costing is a regular phenomena for the costing of the new products and in any organizations this is very much required on a daily basis for the costing of the new proudcts.
Normally this costing is done outside the system in manual excel files by applying lot of manual formulae and assumptions.
Version maintenance is very much required for the new product costing process as it is important to check the costing with every change in assumptions and input mix. to get the product viable in the market.
To have the complete visibility of new product costing with all the versions and assumptions for the costing and further production it is required to track the original version of the BOM and Conversion cost ratio.
In the absence of the stable new product costing data from the begining, if the actual / standard cost of the launched product is High or Low cannot be established and according to that if we are getting margin from the sale or not is not explanable to top managements.
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Frequently Asked Questions
Normally this costing is done outside the system in manual excel files by applying lot of manual formulae and assumptions,
Version maintenance is very much required for the new product costing process as it is important to check the costing with every change in assumptions and input mix. to get the product viable in the market
To have the complete visibility of new product costing with all the versions and assumptions for the costing and further production it is required to track the original version of the BOM and Conversion cost ratio
In the absence of the stable new product costing data from the beginning, if the actual / standard cost of the launched product is High or Low cannot be established and according to that if we are getting margin from the sale or not is not explanable to top managements.
Material code , BOM, Routing and any of the master data in SAP is not required for the purpose of the new product costing in SAP
Assumptions:
Similar products should be made available with minimum changes in the cost of production
Changes in the costing from the time of calculating the cost and at the time of real launch of the products.
Change in the requirements or specifications of the product which is to be launched for the new product costing.
SOP and Product documents for the module
Based on the requirements and business process of the costing we configure the process for the new product costing
Custom program is there to copy the cost of the available product to the new product costing
1 week for preparing the solution documents based on the understanding and sign off
2 weeks for Realization and Testing the solutions in the DEV and Quality system of SAP
1 week for moving the TR To Production system and some amount of sample new product costing in Production systems
M2 – Solution Document sign off
M3- UAT Sign off
M4 – Project Closure
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