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Automation of Standard Cost Estimate
(CK40N)
May 22,2014 | 3,741 views |
Manish Kr Sharma
more by this author
FIN Controlling
controlling | costing | product costing
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pestis sap com/20 1605 2/eutomation standard cost-ostmate-ckéOh!282017 ‘Nsomation of Standard Cost Estimate (CKAON) | SAP Blogs
Introduction:
Calculation of standard cost is the annual event generally done at the
beginning of financial year during Planning & Budgeting activities, which
result into calculation and release of standard cost estimate.
CKAON is a powerful tool provided by SAP to calculate cost estimate with
high level of accuracy for in-house produced material and material
procured from outside. CK40N is executed in multiple steps from
selection of material to release of cost estimate, which generally took of
time to get executed. The purpose of this article is to specify how we can
use the standard functionality of SAP to automate CK4ON, for calculating
cost estimates.
Automation of CK40N:
Product cost estimate through CKAON includes the below steps:
Selection
‘Structure Explosion for in-house produced materials
Costing for all the materials at structure explosion
Analysis for cost estimates
Marking for cost estimate as future standard cost
Release of future cost estimate as current standard cost estimates
Define the costing run name:
Transaction CK4ON, new cost estimate
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Specify the validity dates for cost estimates
Save the costing Run. Now we can see the different steps under Create
Cost estimate tab, We need to change Parameter for each flow and by
specifying parameters for all the steps then we will execute CK4ON on
background by considering all the steps in one go,
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Selection of material
After executing the selection step, system start selecting the materials to
be used for the costing run, according to the selection criteria. Generally
pestis sap com/20 1405 2/eutomation- standard cost-stimate-ckéOr!32820"7 ‘Asomation of Standard Cost Estimate (CKADN) | SAP Blogs
we specify the plants as selection criteria, if we don’t specify any plant or
material then system consider all the plants under the co. Code level for
which we are creating the costing run, so it's necessary to specify the
selection criteria based on requirement,
Click on change parameter,
Specify: Plant
Activate Background Processing
costing Run
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Click on Save
A message will appear as variant created, keep the note of the name.
The same variant will be created in all other steps.
@ Vaues of variant MANISHKR735372 saved
Click on Back button or to go to initial screen of CK4ON run
Structure Explosion for in-house produced materials
Structure explosion is the process of including the lower level materials
i.e. the materials used under the bill of materials for in-house produced
materials selected at previous steps. The main reason for this step is to
do the cost estimate for raw materials in BOM so that cost estimate for
house materials can be ascertained correctly
Click on change parameter
Activate Background Processing
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‘esting Run: BOM Explosion - Change Parameters
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Click on Save
Amessage will appear as variant saved
Costing for all the materials at structure explosion
Execution of costing step, allow the system to do the cost estimates for
all the materials selected in structure explosion step. It includes the cost
estimates for raw material, purchase from external vendor and calculate
the cost of in-house produced materials from plan activity rates and raw
material cost.
Click on change parameter
Activate Background Processing
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Click on Save
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A message will appear as variant saved
Analysis for cost estimates
This step provide the analysis of cost estimates based with the details of
different components like raw material cost, overhead cost,
manufacturing cost ete for main and auxiliary cost estimate. The cost
estimates details can be viewed at cost element level.
Click on change parameter
Activate Background Processing
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Click on Save
Amessage will appear as variant saved with the same variant name.
Marking for cost estimate as future standard cost
Execution of marking step indicates that cost estimates for material is
recorded in material master data as Future Standard Cost. This can be
viewed in field Future cost estimates under the tab Cost estimate 2 in
material master data. Marking of cost estimates can be done in advance
before the cost estimate valid dates come.
Allow the marking to be executed
Click on change parameter
Activate Background Processing
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Click on Save
Amessage will appear as variant saved
Release of future cost estimate as current standard cost estimates
After executing the release step, the mark future costs get converted to
current standard cost estimates. This can be viewed in field Current
standard cost estimates under the tab Cost estimate 2 in material
master data
Click on change parameter
Activate Background Process
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Click on Save
Amessage will appear as variant saved.
back button, now we can see the below screen
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Automation with the help of Background job runs:
‘We can execute all the steps of CK40N through background job run in a
proper sequence so that all the steps will come at the right sequence
and then cost estimate can be released automatically,
SAP use the different Program name for executing the different steps,
as specified in below tables.
Variant Description of Step Program Name
pssttiogs sap com/20 1405 22/eutomation standard cost-stimate-ckéOr!32820:7 ‘Asomation of Standard Cost Estimate (CKADN) | SAP Blogs
MANISHKR735372. Selection SAPRCKSO
MANISHKR735372 Structure Explosion ‘SAPROK62
MANISHKR735372 Coating SAPREKIO
MANISHKR7I5372 Analysis RKKBCAL2
MANISHKR735372 Marking SAPREKIS
MANISHKR735372 Release SAPROKIS
Now execute the steps through Background processing’
Transaction SM36
Click on Job Wizard
Specify the Job Name:
ipssttiogs sap com/20 1405 2/eutomation standard cost-stimate-ckéOr!282017 ‘Agomaton ef Standard Gost Estate (CKAON) | SAP Blogs
C= Low prorey
Select ABAP program step
Click Continue
ipssttiogs sap com/20 1405 2/eutomation standard cost-stimate-ckéOr!
020282017 ‘Agomaton ef Standard Gost Estmate (CKAON) | SAP Blogs
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(Otemal command asa step
(CExteinal programas ¢ step
Now we will define the first step (Selection step in CK40N)
‘Specify the program name for selection step as SAPRCK60 & name of
variant as noted at the time of saving the selection step. The name of
variant will be same for all the steps but the name of program
change.
ipssttiogs sap com/20 1405 22/eutomation standard cost-stimate-ckéOrd ses$32820:7 ‘Astomation of Standard Cost Estimate (CKADN) | SAP Blogs
‘ABAP program name:
Click Add additional steps and then we will continue to define the steps
for other steps of CK40N
pestis sap com/20 1405 22/eutomation standard cost-stimate-ckéOr!
ey282017 ‘Agomaton ef Standard Gost Estate (CKAON) | SAP Blogs
|ViAdd addiional steps (optional)
Details for Structure explosion step:
ipssttiogs sap com/20 1405 22/eutomation standard cost-stimate-ckéOrd
t92032820:7 ‘Asomation of Standard Cost Estimate (CKADN) | SAP Blogs
ABAD program narra:
Variant:
Execution lenguage:
Details for Costing step’
ipssttiogs sap com/20 1405 22/eutomation standard cost-stimate-ckéOrd
wea32820:7 ‘Asomation of Standard Cost Estimate (CKAON) | SAP Blogs
Details for Analysis step:
ipssttiogs sap com/20 1405 22/eutomation standard cost-stimate-ckéOrd
152032820°7 ‘Asomation of Standard Cost Estimate (CKAON) | SAP Blogs
Details for Marking step:
ipssttiogs sap com/20 1405 22/eutomation standard cost-stimate-ckéOrd
162832820°7 ‘Asomation of Standard Cost Estimate (CKAON) | SAP Blogs
Details for Release ste|
pestis sap com/20 1405 22/eutomation standard cost-stimate-ckéOr!
wea32820°7 ‘Asomation of Standard Cost Esmate (CKADN) | SAP Blogs
Click on time to start the job, it can be immediately or we can specify
date & time.
pestis sap com/20 1405 22/eutomation standard cost-stimate-ckéOr!
wea282017 ‘Agomaton ef Standard Gost Estmate (CKAON) | SAP Blogs
At operation mode switch
O Start on workday
Do not release Job
Click on Continue & then save the jobs.
‘Once the jobs gets finished, we can check CKAON for the results
If there will no errors in costing then all the steps will be get executed,
Important points:
ipssttiogs sap com/20 1405 22/eutomation standard cost-stimate-ckéOrd 192032820"7 ‘Asomation of Standard Cost Estimate (CKADN) | SAP Blogs
Must open all the steps and save on background processing, so that
variant can generated and saved for all steps.
Allow the authorization for marking,
Remove the test runs from step Marking & Release
This process will help to save lot of time and this can be used during
non-productive hours.
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5 Comments
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g Srinivas Salpala
May 28, 2014 at 4:05 pm
Hi,
Very good document on CK4ON process.
BR, Srinivas Salpala
g Manish Kr Sharma Postauthor
May 30, 2014 at 10:46 am
Thank you Srinivas.
Regards
Manish
pestis sap com/20 1405 22/eutomation standard cost-stimate-ckéOr!$32820:7
‘Agomaton ef Standard Gost Estate (CKAON) | SAP Blogs
surez thongsaem
June 4, 2014 at 4:20 am
Thank you Manish.
Ihave a problem about CK40N Process.
on Step 2 Structure Explosion for in-house produced materials
Nothing change after | executed
Please help to advise.
[Pious a oo son sem
| 0] “18 eee ome cece
ipssttiogs sap com/20 1405 2/eutomation standard cost-ostimate-ckéOr!
232820°7 ‘Asomation of Standard Cost Estimate (CKAON) | SAP Blogs
Costing Run: BOM Explosion ~ Changs Parameters
i
0 0 ene [|_|
There is no error log or any process only the above screen @
Thank you
Surez
g Manish Kr Sharma Postauthor
June 4,2014 at 8:08 am
Hello Surez,
Could you please click on change parameter for structure Expl, and
share the details, what all the fields you have selected.
ipssttiogs sap com/20 1405 2/eutomation standard cost-stimate-ckéOr!32820°7 ‘Asomation of Standard Cost Estimate (CKADN) | SAP Blogs
Select background processing and execute the step again. Check
the job log for errors if any,
If you face the issue again, then please share the details.
Regards
Manish
3 Keshava Kumar
March 7, 2016 at 10:26 am
Excellent notes. Thank You.
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