- Marjorie Wright & Rogerio Faleiros
Transitioning to S/4HANA often feels like moving into a high-tech cockpit, but if the underlying data—like your CKM3 (Material Price Analysis)—isn't understood, all those real-time analytics are just noise.
Material price analysis for actual costing involves evaluating the costs of raw materials, tracking price variances between actual and standard costs, and identifying price fluctuations due to currency or market changes. For each material/plant, we can track material costs through beginning inventory, receipts, consumption, and ending inventory with real time visibility.
In this session, we’ll explain the detailed CKM3 view.
Topics will include:
- Variance Analysis: Comparing the actual cost of materials purchased against the standard cost to calculate efficiencies, which is crucial for profitability analysis.
- Material Ledger captures these differences at the point of receipt and rolls them up at month-end to calculate the Periodic Unit Price (PUP).
- Cost Drivers: The analysis helps break down costs by component, assessing the impact of cost pools. Instead of seeing one lump sum, you see exactly how much of your variance is attributed to: Raw Materials/Labor/Activities/Overhead.
- Performance Tracking: understanding how S/4HANA tracks the lifecycle of a variance into cost of goods sold and ending inventory.
- Speakers: Marjorie Wright & Rogerio Faleiros
