SAP mixed costing –> to cost a material using multiple alternative methods, e.g. when you manufacture a material with different internal processes, then specify these through separate production versions. When we execute a cost estimate the system calculates the cost for each production version then calculates an average unit cost using weighting factors. When we display a cost estimate with transaction CK13N, we display the total cost and details of each procurement alternative.
- CK91 – define how the material is procured, either internally (prod. Versions) or externally
- CK94 – specify weighting factors, e.g. production volumes to be produced for the year using each of the production versions
For actuals, a Production-order is produced with a specific production version (e.g. we select P-ver 0001). The target costs for the Production-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, unfavourable mixed price variance is calculated; when it is lower, favourable mixed price variance is calculated.
Example : Within-a-Plant, Say one Finished Goods has two production-versions which individually cost as follows
When we set-up MIXED-costing in SAP, example say for month-08, a monthly mix of 20% from Prod.Version 0001 & 80% from Prod 0002, then at that point of time system will calculate the cost of the Finished-prod. as follows
CK11N, for the Product shows the Mixed-costing value as well as drill-down to Individual Production-Version.
And when we Create the production-Order, say with Version-‘0001’ then the Production-Order’s TARGET Cost is costed as per Version-0001 & the variance is created for the difference.
CK91 – For Production
CK94 – Set-up Production-MIX
Mixed Costing – Thru Procurement Alternatives (Purchase-order, Subcontracting, Stock-Transfer) etc
CK91 : Procurement Alternative
Similarly we can set-up Procurement-alternative with another Plant Stock-transfer as well as Vendor’s Purchase and Subcontracting.
Again in CK94, we can select specific alternatives for each month/year and define the MIXING Ratios
When do do Costing-run CK11N or thru CK40N, (below screen-shot is of CK11N), System computes the costing as per mixing-ratio defined in CK94.