In Valuation variant can there be one costing-sheet for FG and SFG and one for Material components maintained for each plant ?

Short answer: ✅ YES — and this is actually a recommended best practice
You can have:

One costing sheet for FG & SFG
Another costing sheet for material components (RM / PM / semi inputs)
Assigned per plant via the valuation variant

Below is the exact SAP logic, how it works, and how to configure it correctly (important, because many projects do this wrong).

1️⃣ How SAP decides which costing sheet to use

SAP does NOT directly assign a costing sheet to a material.

Instead, it follows this chain:

Material
 → Valuation Variant
   → Overhead Group
     → Costing Sheet

📌 Overhead group is the key differentiator

2️⃣ Correct best-practice design (Pharma / Process)

Overhead grouping strategy

✔ FG & SFG → Manufacturing overhead
✔ RM / PM → Procurement / handling OH only
✔ Avoid double absorption

3️⃣ Plant-specific costing sheets ✔

Yes — costing sheets can be plant-specific.

How SAP supports this

• Overhead Group is plant-dependent
• Costing Sheet assignment allows plant & valuation variant

Typical setup

📌 This is common when:

• Utility rates differ
• Labor structure differs
• Regulatory cost differences exist

4️⃣ Configuration – step by step (important)

Step 1️⃣ Create costing sheets

KZS2

• CS_FG_1000
• CS_RM_1000

Step 2️⃣ Assign costing sheets to overhead groups

OKTZ (or SPRO path)

Step 3️⃣ Assign overhead groups to materials

MM02 → Costing 1 view

📌 This is the deciding point

Step 4️⃣ Valuation variant setup

OKKN / OKK4

Ensure:

• Overhead calculation active
• Correct valuation variant assigned to:
  • Costing variant (CK11N)
  • Order/PCC

5️⃣ What happens during costing (CK11N)

FG/SFG costing

• Components (RM/PM) → costed using RM costing sheet
• Manufacturing steps → costed using FG costing sheet
• No double overhead

RM valuation

• Only procurement/handling OH
• No factory OH

6️⃣ What happens during actuals (KGI2 / KKS2)

• Overhead calculated based on the same logic
• FG/SFG orders absorb factory OH
• RM cost centers absorb procurement OH

✔ FI–CO reconciliation clean
✔ Audit-friendly

7️⃣ Common mistakes (VERY common)

❌ One costing sheet for everything
❌ Factory OH applied to raw materials
❌ Overhead group left blank in MM02
❌ Same costing sheet across plants with different utilities
❌ Double OH on SFG → FG rollup

8️⃣ Pharma-specific recommendation (gold standard)

9️⃣ Quick validation checklist (use this)

✔ Does RM have factory OH? → NO
✔ Does SFG get OH only once? → YES
✔ Does FG roll up SFG cost cleanly? → YES
✔ Can auditor trace CC → product? → YES

✅ Final Answer

Yes — in valuation variant you can (and should) use separate costing sheets for FG/SFG and material components, maintained per plant, using overhead groups as the control point.

• Draw a flow diagram for CK11N
• Give a sample costing sheet structure
• Explain how to avoid double OH on SFG
• Help debug wrong OH appearing in FG

Flow-Diagram, Sample costing Sheet Structure

Flow diagram for CK11N (FG / SFG / RM with different costing sheets)

Scenario

• FG & SFG → Costing Sheet CS_FG
• RM / PM → Costing Sheet CS_RM
• Controlled by Overhead Group

Logical flow

CK11N (FG)
 |
 |-- BOM Explosion
 |     |
 |     |-- RM1 (Overhead Group = RM_OH)
 |     |      → CS_RM applied (Procurement OH only)
 |     |
 |     |-- RM2 (Overhead Group = RM_OH)
 |     |      → CS_RM applied
 |     |
 |     |-- SFG (Overhead Group = FG_OH)
 |            |
 |            |-- SFG BOM
 |            |     |
 |            |     |-- RM → CS_RM
 |            |
 |            |-- SFG Routing
 |                  → CS_FG (Manufacturing OH)
 |
 |-- FG Routing
 |     → CS_FG (Manufacturing OH)
 |
 → FG Standard Cost

📌 Key takeaway
SAP switches costing sheets inside the same CK11N run, purely based on Overhead Group.

2️⃣ Sample Costing Sheet structure (Pharma best practice)

🧾 CS_RM – Raw / Packaging Material Costing Sheet

(VERY SIMPLE)

Step 10 – Procurement OH
  Base: Raw material cost
  Rate: 1–3%
  Credit: RM_PROC_CC

(NO factory / QA / admin OH)

✔ Used for: RM, PM, APIs, excipients
✔ Objective: Handling, freight, QA incoming inspection

🧾 CS_FG – FG & SFG Costing Sheet

Step 10 – Machine OH
  Base: Machine cost
  Rate: 15–25%
  Credit: MACH_OH_CC

Step 20 – Labor OH
  Base: Labor cost
  Rate: 20–30%
  Credit: LAB_OH_CC

Step 30 – Utilities OH
  Base: Machine cost
  Rate: 8–15%
  Credit: UTIL_CC

Step 40 – QA / QC OH
  Base: Total manufacturing cost
  Rate: 5–8%
  Credit: QA_CC

Step 50 – Admin / Plant OH
  Base: Total cost
  Rate: 3–6%
  Credit: ADMIN_CC

📌 No selling, no R&D in product cost (Pharma rule)

3️⃣ How to avoid DOUBLE overhead on SFG (critical)

This is one of the top Pharma costing defects.

❌ Wrong design

• Same costing sheet for RM, SFG, FG
• SFG absorbs full factory OH
• FG absorbs OH again on SFG cost

👉 Result: Inflated FG cost

✅ Correct design (gold standard)

Why this works

• SFG is treated as manufactured item
• Its OH becomes part of its standard price
• FG only absorbs OH on its own activities

📌 Never re-apply percentage OH on SFG material cost

4️⃣ Debugging wrong overhead appearing in FG (step-by-step)

Use this checklist in sequence 👇

🔍 Step 1: Check Overhead Group

MM02 → Costing 1

❌ Blank = SAP applies default costing sheet

🔍 Step 2: Check costing sheet assignment

OKTZ

Verify:

• Plant
• Overhead Group
• Costing Sheet

Very common issue:
❌ RM_OH not assigned → FG costing sheet used

🔍 Step 3: Check costing sheet base

KZS2

Look for:

• Factory OH base = Total cost ❌
• Correct base = Labor + Machine ✅

Wrong base → OH cascades to RM & SFG

🔍 Step 4: Check cost component split

OKTZ / OKKN

Ensure:

• RM OH → separate component
• Factory OH → not rolled into RM component

Otherwise CO-PA looks wrong even if CK11N is right.

🔍 Step 5: CK11N analysis

In CK11N:

• Itemization → Overhead
• Verify:
  • RM has only RM OH
  • SFG OH appears once
  • FG OH appears only on FG routing

✅ Final consolidated best-practice summary

✔ Separate costing sheets: FG/SFG vs RM
✔ Control via Overhead Group, not material type
✔ Plant-specific costing sheets allowed & recommended
✔ SFG absorbs manufacturing OH once
✔ Stable, GMP-compliant, audit-friendly

1️⃣ NUMERIC END-TO-END EXAMPLE

RM → SFG → FG (No double overhead)

🔹 Master data

🔹 Costing sheets

CS_RM

• Procurement OH = 2% of RM cost

CS_FG

• Machine OH = 20% of machine
• Labor OH = 25% of labor
• Utilities OH = 10% of machine
• QA OH = 5% of mfg cost
• Admin OH = 3% of total cost

🔹 SFG routing

🔹 FG routing

🔹 Step-by-step costing (CK11N)

✅ RM cost

RM = 100
Proc OH 2% = 2
----------------
RM total = 102

✅ SFG cost

RM input = 10 × 102 = 1,020

Machine = 1,000
Labor   =   400
----------------
Direct = 2,420

Overhead (CS_FG):

Machine OH 20% = 200
Labor OH 25%   = 100
Utilities 10%  = 100
QA 5%          = 121
Admin 3%       =  79
--------------------
Total OH = 600

SFG total = 2,420 + 600 = 3,020

📌 Manufacturing OH absorbed ONCE here

✅ FG cost

SFG input = 3,020

Machine = 500
Labor   = 200
----------------
Direct = 3,720

Overhead (CS_FG – FG routing only):

Machine OH 20% = 100
Labor OH 25%   = 50
Utilities 10%  = 50
QA 5%          = 196
Admin 3%       = 125
--------------------
Total OH = 521

FG Standard Cost = 4,241

✅ No double OH on SFG cost

2️⃣ ACTUAL POSTINGS (PCC – Pharma mandatory)

🔹 During production (FI + CO)

RM issue (MIGO)

Dr PCC / Prod Order  1,020
Cr Inventory (RM)   1,020

Activity confirmation (COR6N)

Dr PCC
Cr Activity Cost Center
(Machine + Labor actuals)

🔹 Overhead calculation (KGI2 / KKS2)

Dr PCC
Cr OH Cost Centers
(Machine OH, Utilities, QA, Admin)

📌 These are real postings in ACDOCA

🔹 Settlement (CO88)

Dr Inventory (SFG / FG)
Cr PCC

📌 Overhead becomes part of inventory valuation

3️⃣ MATERIAL LEDGER & MARGIN ANALYSIS (CO-PA)

🔹 Material Ledger (Pharma best practice)

• Single-level price
• Variances → COGS
• No revaluation volatility

Where overhead sits

🔹 Margin Analysis (Account-based CO-PA)

Cost component split

01 Raw Material
02 Direct Labor
03 Machine
04 Utilities OH
05 QA / QC OH
06 Factory OH
07 Admin OH

Result

• Overhead visible line by line
• Audit-friendly margin explanation
• No RM contamination by factory OH

4️⃣ READY-TO-USE PHARMA COSTING TEMPLATE

🔹 Overhead groups

🔹 Costing sheets

CS_RM

Procurement OH
Base: RM cost
Rate: 1–3%
Credit: RM_PROC_CC

CS_FG

Machine OH  (Base: Machine)
Labor OH    (Base: Labor)
Utilities   (Base: Machine)
QA/QC       (Base: Mfg Cost)
Admin       (Base: Total Cost)

🔹 Assignments

🔍 FINAL AUDIT CHECK (Pharma-safe)

✔ RM has NO factory OH
✔ SFG absorbs manufacturing OH ONCE
✔ FG absorbs OH only on FG routing
✔ PCC used (not prod orders)
✔ Stable standard cost
✔ FI = CO = ML = CO-PA reconciled

✅ FINAL TAKEAWAY

This design is:

• GMP compliant
• Stable
• Explainable in audits
• Used in real Pharma plants