Manufactured Products Costing Demo Part 7: Cost Estimate and Costing Variant

[@dennychow943]

Dude, you're like a sensei in SAP. I just started a new FP&A role at a manufacturing company and will probably look at all you videos lol. Thank you for your knowledge!!❤️

[@AbdullahGalal]

Comment of the month 🎩. Thank you Denny!

[@shaheerkhan4050]

Overall very great experience with this playlist. Thankyou so much

[@sapnick1990]

Simply Outstanding

[@AbdullahGalal]

Haven't seen a red star before! 3 years and 7 months of support! Thank you!

[@mahfoozansari6928]

U have explained clearly, Love ❤️ 😍 from Nepal.

[@AbdullahGalal]

Thank you Mahfooz :)

[@fungayingorima525]

Wow, intriguing series. I must say, you have clarified the nitty gritty items I was confused with. Keep up the splendid work. Hope to see more videos soon.

[@AbdullahGalal]

Thanks a lot Fungayi, I'm doing my best to explain the variance analysis now

[@mahfoozansari6928]

Ma sha Allah, Mr Abdulla Jalal

[@AbdullahGalal]

Glad you find the vids useful

[@prateek11021988]

Enjoyed the whole series a lot. A big thanks Abdullah. You articulate and present the whole process in a very understanding manner which even a layman can understand. Would love to have more SAP videos from you on such topics. Keep up the good work.

[@AbdullahGalal]

Glad you enjoyed it

[@venkat3998]

I seen all the videos related to product costing. You explained in detail and very simple manner. Thank you very much. You made my day. Expressing love from Bangalore.

[@AbdullahGalal]

You are welcome 😊, greetings to Bangalore

[@muhammadmasood8807]

As usual very informative and precise. Thanks

[@AbdullahGalal]

Very welcome Muhammad

[@avirupbarary5418]

Awesome..nicely explained ...thanx for sharing your knowledge....plz keep sharing your knowledge

[@AbdullahGalal]

Thank you

[@33asce]

Thank you so much, you explained with clearly and easy for understanding

[@AbdullahGalal]

My pleasure

[@kamleshjadav3285]

As usual, excellent

[@AbdullahGalal]

Thanks again Kamlesh

[@sumit050607]

Thanks Abdullah Galal. Great Efforts, and awesome outcome.

[@AbdullahGalal]

Thank you

[@srkolla]

Very well explained with all important details..Thank you so much

[@AbdullahGalal]

Glad it was helpful!

[@Ton-gm3lf]

Well done, Abdullah!

[@AbdullahGalal]

Thank you Ton

[@ajayutekar2]

Can see your love for the Screen after running CK11N ... Nice video as usual.. Thanks for Sharing

[@AbdullahGalal]

Yeah I enjoy it a lot :)

[@krisnowakowski]

Hi Abdullah, Great set of recordings. Exepctionaly well explained process. Keep going your work is huge but worth every minute spent...

[@AbdullahGalal]

Thanks, will do!

[@nandlal123]

nicely explained Mr. Abdullah, Thanks

[@AbdullahGalal]

You are welcome

[@bharatdake5817]

Thank you so much for sharing.This is great learning experience & currently this is very useful to me as we are implementing the COPA module in our company.

[@AbdullahGalal]

Glad it was helpful!, also check the COPA playlist kzbin.info/aero/PL8CXU2O8dFHbcz91PeW6SpNlLZ61WUHgs

[@prtkkkdy2332]

Very informative and precise.Thanks Abdullah for creating such useful content. Hope to see more videos on remaining Cost Controlling topic.

[@AbdullahGalal]

Sure I will, thank you Prtk

[@worksing7093]

Hi Abdullah.... Excellent. Keep it up. And God Bless you. 🙂

[@AbdullahGalal]

Thanks a lot

[@diegopagura421]

Just saying, you rock man

[@AbdullahGalal]

Thank you Diego, great support!

[@labankiarie5952]

This is nice and very informative

[@AbdullahGalal]

Thank you!

[@ajaypal8678]

Easy to understand

[@AbdullahGalal]

Thank you for your feedback!

[@uniquelawbookkeeper6232]

Thanks a lot for the video. God bless you

[@AbdullahGalal]

Always welcome

[@uniquelawbookkeeper6232]

@@AbdullahGalal I want cfin server access is it possible plz let me know

[@rajeshnimavat693]

Excellent

[@AbdullahGalal]

Thank you Rajesh

[@ibrahimmohamed589]

Amazing video.

[@AbdullahGalal]

Thanks!

[@alltypesofvideo3209]

Thanks a lot Abdullah

[@AbdullahGalal]

Welcome!

[@ginolopez4025]

Great video. Do you have videos on Actual Cost Allocations? What happens to the amounts posted to the Secondary Cost elements--is there a month end closing process you can explain to us? Thanks AG.

[@AbdullahGalal]

Hi! I do have videos explaining actual cost allocations. Check the Overhead cost management playlist

[@MohamedKhaled-y3l]

Just finished right know, Thank you for one the smoothest demonstration I have ever seen, But other question do u plan to make for the actual part yet ?

[@AbdullahGalal]

I've been welling to do this for too long, but still very busy. Will do my best

[@TheJaebeomPark]

great!

[@Himdas]

great video..very clear..can you also share a video on std costing for process industry including recipes instead of routing..thanks

[@AbdullahGalal]

It works the same way

[@amarendragoud3333]

Hi sir your videos are very understanding i want to know how fixed value is come in itemization for material,from where it is coming , could you please reply me sir. Thank you

[@cmskumar67]

super

[@AbdullahGalal]

Thank you

[@shaheerkhan4050]

Sir can you please make a video for primary and secondary cost center with impacts in GL. That does cost estimate have any impact on our GL, other how costs are transferred from secondary cost element to our costs of sales GLs. Thanks

[@diwaj8119]

maybe ammeture question. can we do costing run for Actuals ?

[@AbdullahGalal]

The material ledger actual costing run does this. It calculates the actual cost and then we can use it as the new standard cost if needed

[@amirasafwat3094]

God bless you

[@AbdullahGalal]

Thank you Amira

[@vikaspandey375]

Hi Abdullah, i am new to ur channel. Watched all product costing videos... Videos are very gud.... Here you covered product cost Planning, When i can expect videos on cost object controlling. Regards

[@AbdullahGalal]

Hi Vikas, I've not recorded them yet, will do my best

[@silviocanha7259]

Very useful, expensive chair indeed!

[@AbdullahGalal]

Glad you like the chair, it costed 80 EUR :)

[@venujalda7746]

So the valuation variant which has the strategy of planned values, standard price and moving avg price... considered moving avg price for determining raw materials valuation under FG.. since raw material master data do not have planned and standard price?

[@AbdullahGalal]

Yes, you understood correctly

[@kailashsankhlecha5970]

Machinery is a capital expense how in the expense. What do you mean by labour whether salary or wages

[@SAPInsightswithAbidAqeel]

Thanks very much for sharing this valuable topic. Sir please share this working sheet (Excel ).

[@AbdullahGalal]

Welcome! not sure I still have this sheet, that was a along time ago

[@mahfoozansari6928]

Thanks for video, but I could not find video regarding product routing. Kindly help.

[@AbdullahGalal]

wow that was a long time ago! I reviewed the playlist and apparently I didn't demonstrate the routing part at all just explained the concept. Will see if I can get back to this playlist and create this missing video

[@mahfoozansari6928]

@@AbdullahGalal thank you and will wait for that.

[@avinashbhadange1985]

AG- can you make vedio on COPA ... step by steps configuration......

[@AbdullahGalal]

it's in the plan :)

[@eugeniomaza8835]

Hi Abdullah, does the standard cost estimate calculate the price of activity price ?

[@AbdullahGalal]

Hi, no it doesn't, I explained how this works exactly in this playlist. You have to either insert the activity price manually or use cost splitting structure to calculate it automatically before the cost estimate, otherwise you get an error that activity price is missing

[@baassiia]

is it a common rule to include overhead in FSC? My company do not do this. Is it possible it's already included in rates? I am responsible for standard cost only, so I am not invloved in rates calculation for each line :/

[@AbdullahGalal]

Yeah it's completely normal to include everything in the rates! It all depends on the level of detail needed in cost components

[@baassiia]

@@AbdullahGalal thank you. Can I support your channel with some donation? I've learned a lot and for free ;)

[@varunvithalani1]

Hi Abdullah, excellent as always.. your videos have helped grasped the concept amazingly.. one thing which is eating me up.. you mentioned a good rule that all the costs in the manufactuting cost center must be allocated to the product.. however im concerned how the cost center report is going to look like for Rent 63005000 and Salaries 61100000 because of the use of costing sheets.. will all of its cost have a credit side in the PRD01 Cost center? We eventually only assigned 37% of machine and 50% of labour due to the costing sheet.. so im still wondering how the debit and credit side of PRD01 would balance.. let me know if you have a ready answer.. cheers..

[@AbdullahGalal]

For any product we produce, we will add 37% of machine cost and 50% of labor cost to cover all the salaries and rents we have, so yes the cost center is planned to have zero balance. Ofcourse in real life their will be variances that will be settled as manufacturing variances, but eventually the production cost center at end of period MUST have zero balance

[@StaenisFloors]

@@AbdullahGalal Hi Abdullah, very interesting. My question to you is: How do you balance this to zero?

[@krisnowakowski]

Yeah this is the only thing which bothers me. Can not get clarity on how PRD1 CC will be cleared for rent and salaries.

[@cvyap2207]

Hi @@AbdullahGalal In video Manufactured Products Costing Demo Part 5: Activity Type Price and Quantity Planning, time 25:00, report KSBL shows 15,000 Under-Absorbed in cc PRD01. How and when does Salary and Rent in cc PRD01 being allocated to the products? For Electricity, Wages and Depreciation, Splitting function KSS4 is need to be run to allocated these expenses to the Activity Types Labor and Machine (in other words the product). What need to be run in order for the 15,000 to be allocated to product? Costing sheet is just a configuration but does it do any allocation?

[@Ben-EnBible-Study]

Thank you very much. You did a great job. But i can't understand why 'valuation date' is 01 04 2020 . can anyone give more explanation. Thanks.

[@AbdullahGalal]

we maintained the activity types planned prices for period 04.2020 right? there's no price maintained in other periods I wanted SAP to pick my planned prices from 04.2020 so I had to insert a valuation date with 04.2020

[@soumyabrata22]

I have just noticed that here you are not creating the Routing.... From where are we getting the activity prices in STD. Cost estimate ?

[@AbdullahGalal]

Routing is created by production experts. It shows what are the production activities needed (activity type) and for how long (activity quantity). The activity price is calculated by the costing experts, and is inserted or calculated in transacion KP26 (Activity Type Prices)

[@diwaj8119]

Anywhere explained about routing in this series?

[@AbdullahGalal]

If I remember correctly I stopped before the routing ..don't remember why! I need to get back to this playlist. Got busy with the other topics

[@terryhastings1695]

HI there- can this work on moving average?

[@AbdullahGalal]

Hi, can what work on moving average? if item is moving average then there's no cost estimate

[@terryhastings1695]

@@AbdullahGalal I still want to maintain a form of cost component analysis with MAP at Direct material but still need to accommodate transfer pricing and cost analysis in finance

[@nayabrasool8757]

Sir please do video on asset accounting S4 Hana

[@AbdullahGalal]

will do my best

[@bandipeddaiah1038]

HI Abdullah, Material valuation order is incorrect which you have showed in the video and please correct the 2 & 3 .

[@AbdullahGalal]

Hi Bandi, You mean the valuation variant: material valuation tab? that's at the beginning of the video @4:30 ? No the order is not wrong according to my business requirment, I want to check first the planned price/ second the standard cost/ 3rd the moving average. There's no right and wrong in business requirements, every business is different.

[@Rohalbet]

Hey! You never explained routing :O

[@AbdullahGalal]

Hey Rohalbet, you're right! Just checked the video where I explained the master data and I said I'll explain that later, thank you for the reminder