How to Release a Marked Standard Cost Estimate in the Middle of the Month

  • by Mehulkumar Patel , Senior System Engineer, Conagra Foods
  • July 16, 2014
Generally, you can release a cost estimate in the beginning of the month when no inventory movement has been completed. However, in some cases, such as when issues in price or in logistics master data arise, you may have to release the cost estimate in the middle of the month. In a standard SAP system, when you try to release a cost estimate after inventory has been updated, you receive an error message. Learn how to successfully release a marked cost estimate in the middle of the month in your SAP system even though inventory transactions have been completed.
Learning Objectives

By reading this article, you will learn how to:

  • Release a standard cost estimate for material during the period for which any goods movement happened
Key Concept

A standard cost estimate for a material is created at the beginning of a fiscal year or a period. The standard cost estimate is then valid for the entire year or period. You can use it to determine a standard price for materials in this period.

Release of a standard cost estimate is not possible if in a given period goods have already been moved or invoices have been updated with values and posted. If the material ledger is active in a standard SAP Financials system, it does not allow release of a standard cost estimate if any transactions have been posted on the material in the concerned period.

A standard cost estimate can go wrong owing to many reasons such as incorrect raw material price, incorrect activity rates, or incorrect logistics data in a routing or a bill of material (BOM). For large companies that create hundreds of orders every day, an incorrect standard cost estimate may have a huge impact on production cost. Therefore, it is necessary to correct the standard cost estimate as soon as the problem is identified. 

The Problem

Consider this scenario. You want to update a market price analysis for an order of material. To complete this process, you execute transaction code CKM3. In the screen that appears, you populate the fields as shown in Figure 1.


Figure 1
Settings for a material price analysis

Now you create and mark a cost estimate. For this process you first execute transaction code CK11N and then transaction code CK24. You can also use CK40N instead of CK11N and CK24 as an option. In the screen that appears, open the History tab (Figure 2). Here you can see the data that was entered in the screen in Figure 1. In my example, an order of 1,000 pounds of flour (material order 10003349) from plant 5519 has a total value of $300.00.




Mehulkumar Patel

Mehulkumar Patel is a senior system engineer and certified SAP controlling (CO) consultant with approximately 10 years of experience in SAP FI/CO. He has done multiple end-to-end SAP implementations of SAP applications. He holds bachelor’s and master’s degrees in computer science and an MBA in finance. He also is certified in SAP CO.

 

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Comments

4/30/2015 4:18:41 PM
Joe Cravero

"In a standard SAP system, when you try to release a cost estimate after inventory has been updated, you receive an error message."

This is only needed when you have Material Ledger active, correct? And ML is not actived by default (what I would call the standard SAP system) at my company. If ML is not active, you can simply do CK40N or CK11N+CK24 to get a new standard cost released (assuming that hasn't already been done previously in this fiscal period, in which case you need also do CKR1 first).

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