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SAP Controlling Product Costing

Costing Sheet - Part I - Calculation Base

18/6/2015

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The Costing Sheet is a part of Overhead under Product Cost Planning under Controlling Module of SAP. A Costing Sheet helps us in adding cost incurred on manufacturing of a product which is not possible using Activity Types. A Costing Sheet can be used in various purposes, but here we will be only looking into the creation of Costing Sheet and components required for the same.

Understanding of the Costing Sheet is to start with understanding of following components involved in the Costing Sheet:

  • Calculation Base
  • Percentage Overhead Rates
  • Quantity Overhead Rates
  • Credits

We will go through all  of the above one by one:

Defining Calculation Base

This is the first component of Costing Sheet which works as an identifier of the base to calculate the amounts i.e. the Cost Elements on which all the costs will be calculated.

IMG Path: Controlling >  Product Cost Controlling >  Product Cost Planning > Basic Settings for Material Costing > Overhead > Costing Sheet: Components > Define Calculation Bases


Once we click on the above, the system will navigate us to the following screen

Picture
Picture
Here, we will look into the calculation base B000 which is used to identify the total cost of material used which forms a basis for further calculation.

We will select the Calculation Base B000 and double click on Details and the system will ask us to enter the Controlling Area, please enter the relevant Controlling Area and press enter.

Here, on this screen we have to enter the following

Cost Elements
Enter the Cost Elements, costs from which are to be considered for calculating the overhead cost.

Cost Element Group
If we do not have a range of Cost Elements to assign, instead have random Cost Elements to consider, we can create a Cost Element and assign it here.

Origin Group
This is a key which is assigned to a material master under Costing 1 View. This is used to help you consider cost of only relevant materials and makes the costing more accurate (although costing can never be exact).

Apart from above three assignments, we can define here if we have to consider only the portion of Variable cost, Fixed cost or Total of both.

Enter all the relevant data and save the Calculation Base and we are done with the first part of configuring Costing Sheet.
After entering the Controlling Area, the system will navigate us further to the following screen where we have to enter the Cost Elements:
Picture

Part IV 



Costing Sheet Part II
Costing Sheet Part III
Costing Sheet Part IV
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