This document explains how to use the CK40N transaction to manage material costing effectively. In this article, I’ll go through the main considerations when costing at the plant or company code level. The system may display a variety of error messages from the time a costing run is created until the cost estimate is released. In this article, we’ll look at how to prevent or fix these problems.
Running Cost Name:
First, we must define eight digits (an alphanumeric number) in CK40N as the costing run name and costing run date. This is utilised to carry out costing at the company or plant code level. We must be careful when establishing the costing run name to ensure that the last six digits are unique; otherwise, when the Analysis step in CK40N is executed, the system may overwrite the details of another costing run.
As an illustration, suppose we generate two costing runs on the same date with the names “AA110000” and “BB110000,” respectively. The last six digits are the same in both costing runs, and if we conduct both costing runs on the same date, the analysis from the latest costing run executed will take precedence. As a result, the cost analysis in the first costing run becomes inconsistent, and if we use more than two costing runs, only one of them will provide the proper analysis while the others will provide inaccurate material analysis. In that case, information for materials from other plants and company codes can be displayed.
Handling errors at the costing step:
The system determines the cost estimate for all the materials chosen at the “Structure Explosion” step when costing is executed in CK40N. Here, the system uses the strategic sequence indicated in the “Valuation variant” in the costing version to calculate the standard cost of the materials. In addition to BOM, production version, routing, and recipe for internally generated components, it takes into account the projected price and additive cost for outside obtained materials. The majority of costing mistakes were made at this stage.
i. For the cost aspect of CK694, no structure could be established.
Most often, a programme error, CK694 occurs. But you must determine which expense component the problem is with. Check the structure of the cost component first to see if the aforementioned cost element is assigned to it or not. Typically, a cost component structure issue only arises when a cost element is freshly formed; otherwise, it does not. Check the type of cost element, and if it’s a secondary cost element representing an internal activity, see if the Plan Activity Price has been computed or not. If everything in the cost component structure is right, move on to the next step. We may need to maintain capacity in KP26 and plan expenses in KP06 in order to keep the plan activity pricing. Check to see if the cost component structure is functioning properly if the activity pricing has previously been maintained for both the cost centre and the activity.
Check the report S ALR 87013644 to see if the cost component split for the activity and cost centre is operational or not. If we can’t separate the cost into its component costs in this case, a programming mistake has occurred. Get OSS note 1872228 “No Cost Component Split in Plan Price Calculation” applied to fix the bug.
ii. CK168 Inaccurate material/plant cost estimate
CK168 errors typically develop at primary materials as a result of problems with lower level raw materials or semi-finished goods.
From the BOM of material xxxxx, look up the material types of all the lower level materials. The anticipated costs for the lower level material may be absent or have an erroneous date if it was obtained externally (F). Check the valuation strategy of the costing option, look at the priority maintained for calculating the material cost, such as Planned Price 1/2/3, etc., and then confirm in the material master data whether an appropriate price is maintained or not to fix the issue for “F” material. Remember that the anticipated pricing date must always be equal to or later than the costing run date.
Whether the materials were created internally, see if there are any missing activity prices or if the Bill of Materials is the cause of the problem.
iii. CK239 Cost component does not have Cost Element added to it.
If the cost element was just generated, check to verify if it is being maintained appropriately by looking at the cost element’s location in the cost component hierarchy.
The problem is with the calculation of the Plan activity rate if the expense element represents an internal activity. Cross-check if a valid plan activity rate exists or not with the KSBT activity rate report; if not, maintain the plan activity rate using the regular procedure.
iv. CK 466 It was impossible to estimate a price for internal activity.
CK466 is a result of the plan activity price being missing. Similar steps to those in the case of CK239 must be taken. Check the KSBT report first to see if the cost centre and activity have a valid plan price. If not, maintain capacity in KP26 and plan expenses in KP06. Following data entry, the plan cost split through KSS4 and the plan activity rate calculation through KSPI must be carried out.
v. CK 465 The price of the material, batch, or plant could not be determined.
In-house made materials had CK465 occur. The missing planned price or fixed values for materials from the material master data could be the cause. First, verify whether a proper price is kept with the correct date in the material master data. Next, check the valuation strategy of the costing variation to see the priority maintained for computing the material cost, such as Planned Price 1/2/3 etc.
vi. CK256 There is no defined cost field for fixed costs.
The fix is the same as for CK465’s error. Additionally, items obtained from outside sources had same problem.
vii. CK424 The plant’s material has no BOM.
The erroneous BOM for internally produced materials led to CK245 problems. Check to see if the Bill of Materials is being maintained properly in order to remedy the problems. In a few instances, a subcontracting item, such as a procurement type “F” with a specific procurement key of “30,” may experience this problem.
viii. CK476 Recipe group does not correspond to selected ID
When the production version is not adequately maintained, CK476 happens. Verify if any production versions are still kept that take the costing lot size into account in the material master data. The system may produce this error if the costing lot size of the material is outside the bounds of the various manufacturing versions. The incorrect recipe group could be the cause. With the material master data team, cross-check the production version.
ix. CK 740 Material in plant belongs to cycle xxxx and was incorrectly costed.
Typically, error CK476 is the cause of this error. The same procedure must be used.
Verify to see if the system is selecting “Alternative BOM” rather than “Main BOM.” Ask the production team to fix the production version if the system is selecting an alternate BOM.
x. CKBK010 separation of the cost component’s field overflow
This error can happen because the resultant amount or value exceeds the 999,999,999 maximum thresholds and cannot be recorded in the associated data element field.
As an illustration, the software may choose a Production Version rework (Alternative version) rather than a regular one (Main Production Version), with a material composed of the same material and quantity. This leads to an exponential amount that is higher than the 999,999,999 limit following the cost estimate’s pre-defined iterations.
To correct the production version, check with the master data management team.
xi. There is no CK692 Production Version x for Material x in Plant X.
This error message indicates that a Production Version (PV) is missing. Check PV, and if it does not already exist, construct the production version. If PV already exists, this mistake can be ignored, and only faults pertaining to the same material and plant combination should be further investigated.
xii. CK430 Formula missing in work centre x
Rarely would a recipe group operation enter an amount for an activity type without first maintaining a formula in the operation’s resource.
The MDM (master data management) team, working under the direction of the business make team, must fix this issue.
xiii. CK240 Cost component split costed at zero
This mistake is not the only one. It only occurs when other mistakes make it impossible to cost the material. The emphasis should be on finding and fixing any more errors that are related to the same piece of content. Once finished, both mistakes will be fixed.
Only the messages that have come before or after this one and that refer to the same material or plant should be examined.
xiv. CK322 Consumption account is unknown.
Issues with the material master data, namely the assignment of the material to the temporary valuation class, are to blame for this problem. This notification can be ignored, and only the prior/following ones referencing the same material or plant—typically CK597—should be examined. without a cost element, costing items for material x in plant x.
xv. CK380 No reliable supply source could be identified.
Only subcontracted materials, procurement type F-30, experience this problem. It indicates that the source of supply (Transaction ME01) was either improperly maintained or it had already expired (either validity dates, or fixed vendor). It can also indicate that the information record for subcontracting (Transaction ME11) has been erroneously updated. When this occurs, the purchasing department must be called to verify the accuracy of the master data, the source list, and to amend any missing information, such as fixed vendor switches or validity dates.
I have made an effort to illustrate how we may manage product costing and how to avoid various costing problems with the aid of this text.