Product cost collectors (PCC) are always used in a periodic scenario with PER settlement rule
In "Product Cost by Period" WIP and the variances are calculated and settled based on the receipted and confirmed quantities:
Work in process is calculated at target costs. In repetitive manufacturing, you must enter reporting point backflushes or, for manufacturing orders, confirmations for the operations. Confirmed quantities that are not scrap are valuated at target costs when the WIP is determined.
Variances are calculated by period, so there can be both work in process and variances on an object at the same time. To determine the total variance, the actual values confirmed in the period are compared against the target values. The work in process is deducted from the difference between the actual values and the target values to determine the variance.
- The WIP calculation based on target costs requires that the cost estimate used for the valuation refers to the same quantity structure like the production order or product cost collector.
The standard cost estimate is only one option. It is also possible and even recommended to use the preliminary cost estimate of the product cost collector. Which cost estimate has priority and should be taken can be set with the Valuation Variant for Scrap and WIP in Customizing:
SAP note 1341815 - Work in process (WIP) at targets
SAP note 386816 - WIP and variance calculation: Errors KV158, KV181
- The variances (actual cost balance) of a product cost collector are defined as variances = actuals costs - WIP.
Delete product cost collector
- This issue comes up in combination with error M3368 during change of valuation class in material master
See KBA 1967543 - Error M3 368 occurs when you change valuation class in transaction MM02
Concerning prerequisites for PCC deletion check this information:
The deletion flag cannot be set for product cost collector for one or more of the following reasons:
•There are still run schedule headers for the product cost collector in which the status Deletion indicator is not set.
•There are production versions for the product cost collector in which the status Deletion indicator is not set.
•There are postprocessing records in repetitive manufacturing that are to be assigned to the product cost collector.
•There are manufacturing orders for the product cost collector in which the status Deletion indicator is not set.
Deletion indicator can be set by report PPARCHP1
KBA 2160903 - KOSA118 happens when deleting product cost collector
- SAP note 351234 Deletion of production versions and manufacturing orders
In order to allow the deletion flag on a production order assigned to a product cost collector the cutoff data must be <= period of actual confirmation date of the order.
- SAP note 972043 - Information: Archiving of PCC and WIP line item
Settle costs from previous years
To settle costs from previous years you choose processing type "FULL Settlement" in KO88/KK87
- Error message KD549 "Debit with cost element & cannot be settled" is displayed
For a product cost collector with periodic settlement rule (settlement type PER), make sure that each period is settled completely and no new cost postings happen in a period which is already settled.
In SAP standard it is NOT possible to settle costs from a previous period if settlements of later periods have already been posted. Even with the modification of SAP notes 424139 and 2397593, it is only possible to settle these costs when all settlements in the periods after that period are reversed document by document.
If this is not possible anymore, the balances of the previous periods must be cleared by manual repostings as explained in SAP note 140672. Or it can be checked if the balances can be ignored.
SAP note 140672 - Info: Settle/reverse costs from previous periods
KBA 2249550 - Unable to change profit center in product cost collector - error KO372.
- KBA 1866599 - Error message KD529 is issued when you settle a product cost collector with T-code:KK87