The only decision to be made is, what price you use for material valuation. Standard costing and actual costing can run completely separate from each other without any conflicts. It includes all the actual prices for material in particular period.Īctual Costing Run (CKMLCP) is the month end activity, which is used to valuated the inventory in balance sheet at actual price (PUP- Periodic Unit Price) by calculating and posting Production variance during the month on the Material which was previously maintained at Standard Price (calculated from CK11N) in balance sheet. In this blog, I have tried to explain this functionality in detail with example (mainly Actual Costing).īasically Material Ledger/Actual Costing are the two separate functionalities which are inter-dependent and are incorporated in the SAP Controlling module which are discussed below.Īctual Costing is functionality provided by SAP to calculate actual prices i-e PUP (periodic unit price) of inventories/ valuated material including Raw Material (ROH), Semi- Finished Good (HALB) and Finished Good (FERT). Material Ledger/ Actual Costing is one of the complex tool provided by SAP to manage its inflows and outflows of core manufacturing related materials in multiple currency and valuations.
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