SCN has a tonne of information about standard costing, including forum questions and replies.

Note: This is an introduction to cost estimation and the different settings that go into it.

This document aims to clarify how a conventional cost estimate’s cost flows. describing the many background settings. I’ll try to illustrate this by going from the cost estimate to the configuration in reverse. This will provide a typical cost for certain fundamental topics like Material Cost, Overhead Cost, Labor, etc.

You can comprehend the Quantity Structure, Valuation, Costing Dates, etc. by looking at a material cost estimate.

  • The T-Code for a material’s standard cost is CK13n (you can view this from costing-2 view in material master too T-Code-MM03.)
  • I’ll make an effort to go through each of the six tabs below, describing the fundamental setups and the data flows from various configurations to the Standard Cost estimate.



  • I’ve chosen elements from the standard layout 1SAP02-Costing for our investigation (overview)
  • In the standard SAP, there are a number of layout options, and users can also define their own.





 1. Costing information

Data like Costing Version, Costing Variant, Lot Size, and Transfer Control are included. Later, let’s discuss costing messages and costing status.


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Configuration pricing variation in T-code OKKN (Will cover in more detailed way in part 2.)
-Assign a variety of control factors, such as the costing type, valuation variant, date control, quantity structure control, and transfer control, among others.

Maintain parameters for several Tabs, including Control, Quantity Structure, Addictive Cost, Assignment, and Miscellaneous.


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  • Using T CODE-OKYD, configure the costing version.

-Number used to distinguish distinct price estimates for the same material.


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  • Lot Size

– Although the costing lot size in the material master record is often utilised as the basis for all material costs, the lot size can be manually changed during cost estimation.

  • Put a T-code for Transfer Control-Configure in. Typically, OKKM adhered to the norm.


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– This regulates the process by which previous cost estimates are searched for by costing with quantity structure when current costing data is moved to another cost estimate. In this instance, PC02 was assigned to TCODE OKKN.

2. Costing Dates: The Costing Variant will teach us more about date control.


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Costing Date -The date that the cost estimate starts to be valid.

The cost estimate is valid up until this date, which is known as the “Costing Date to.”

Quantity structure date refers to the day on which the quantity structure for the cost estimate with quantity structure is chosen.

The materials and activities included in a cost estimate are valued as of the valuation date.

3. Qty Structure: It has routing and BOM information. Normally, PP functionality


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  • Bill of Material (BOM)- T CODE- SET CS01, To view T-code – CS03


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The detailed cost (M), which can be found in my screenshot 3 if you go back, results from these parameters.

The point in the net section will also need to be covered by cost component settings.

Create Routings T-Cod-CA01 using the PP functionality to view CA03 \s– A routing diagram displays processes in order. It is on the basis of

Lead time planning. planning for capacity, product price, and Refer to screenshot 3 for the Cost Internal Activity (E) settings. In my subsequent section, I’ll go into greater detail on the assignment of work centres, activities, and activity planning.


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 4. Valuation: This section includes the currency, the costing sheet, and the overhead key.

T CODE-KZS2-Maintaining and creating a costing sheet,

Overhead key definition and modification with T CODE-KOOK


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Using the values from the costing sheet and overhead key, the overhead cost (G) flows, as shown in screenshot 3.

  • We basically utilise one costing sheet for each object the system is used to calculate overhead expenses for. Costing Sheet-It regulates the calculation of Overhead. (I’ll go into more detail in my following section)
  • The Overhead Key—The overhead key is used to calculate overhead charges for orders or materials. The plant and the overhead key determine the overhead quantities. The overhead key is basically what determines the overhead. If a key for the material or order’s overhead is not kept, the overhead must be calculated in relation to the plant.

Following the creation of a costing sheet that references two condition tables. The overhead key determines the overhead amount in the first table. The second table shows how the plant affects the overhead cost. The order of conditions in an access sequence establishes their priority.

5. HISTORY: It has information about the user and the costing run dates.


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The user names who carried out each distinct costing run task are listed as Cost By, Marked By, and Released By.

In order to correct any potential human errors, several large organisations use various people to mark costs and release costs. But in my experience, I’ve noticed that the same person performs it the majority of the time.

Costing run: Normally, this information is updated when standard costing is performed using the T-code CK40n; however, if specific materials are costed using CK11n, this field will not be filled in. In order to confirm the parameters at that particular time, we can always go back and check the costing run data.

6. Costs-Baiscally is a cost component and summary view.

Setup of TCODE-cost OKTZ’s component structure (we will see in detail in part 2 of this document)

  • If you look at screenshot 8, you can see how these options divide out costs for things like overhead, labour, and materials. The cost component structure governs how the outcomes of material costing are updated in product cost control. According to the cost component structure, the costs for each material are grouped (such as material costs, internal activities, external activities, and overhead). When the costs are rolled up, the cost component split (which divides the expenses into material costs, internal activities, external activities, overhead, and so on) is still present if the material is utilised in the production of another material.


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The error log identifies whether or not a communication was costed with an error.

This document was written with the intention of reaching out to newcomers and people who were interested in learning about and comprehending the process of standard costing. When further points need to be added, I will update the document as needed.

The updated configuration and methods to comprehend the Fundamentals of Standard Costing will be presented in the following section of the document.

Please see the following section at