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SAP Mixed Costing Functionality

Within the Product Costing module SAP offers Mixed Costing functionality. This functionality provides the ability to cost a material using multiple alternative methods, for example when a material is produced with different internal processes.  For companies running the PP-PI module that is specified through separate production versions, which would use different master recipes. When executing a cost estimate the system calculates the cost for each production version, then calculates an average unit cost using weighting factors provided manually. With the Cost Estimate display (CK13N) the system shows the total cost of each procurement alternative and has the ability to view the detail of each.

 

There are two pieces of master data that need to be created:  Procurement alternatives (with transactions CK91N) and mixing ratios (with transaction CK94.)  Procurement alternatives define how the material is procured, which can be internally or externally; for example, production versions for the internally produced alternatives.  The mixing ratios specify the weighting factors, for example the production volumes to be produced for the year using each of the production versions.

On the actual side, a particular process order will be produced with a specific production version. The target costs for the process order are calculated based on the cost estimate data related to that production version.  The credit for production uses the weighted average standard cost calculated.  The difference between the two multiplied by the production quantity is calculated and reported as mixed price variance when executing the variance calculation transaction (KKS1 / KKS2) using the standard delivered variance categories. When the unit cost of the production version used is higher than the standard cost, unfavorable mixed price variance is calculated; when it is lower, favorable mixed price variance is calculated.

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Comments 4

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Guest - nicholas on Tuesday, 14 August 2018 05:29

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Guest - Nicky on Wednesday, 06 June 2018 11:23

Hi,

I Just wanted to know, whether CK94 step i.e mix ratio input step be automated with the planned qty generated in Plaf table.The material with same date and Quantity structure type be used in CK94 instead of manually inputting for each material.

Hi, I Just wanted to know, whether CK94 step i.e mix ratio input step be automated with the planned qty generated in Plaf table.The material with same date and Quantity structure type be used in CK94 instead of manually inputting for each material.
Guest - Sunny Rao on Wednesday, 19 September 2018 11:09

Hello Dear,


Kindly let me know the purpose of maintaining the mixed costing ration in CK94N ?

Thank you.

Regards
Rao.

Hello Dear, Kindly let me know the purpose of maintaining the mixed costing ration in CK94N ? Thank you. Regards Rao.
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Monday, 18 November 2019