How to configure Mixed Costing
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Former Member
May 17, 2010 4 minute read
How to configure Mixed Costing
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Mixed costing is very useful in some cases. For example, it’s the only way to release a standard cost estimate for each procurement alternative that is associated with a valuation type.
Recently I got some requests to explain in details how the mixed costing works. I hope this blog can help to explain.
The prerequisite for the mixed costing is as below
– A quantity structure type is configured in the customizing
– This quantity structure type is associated to a costing version in the Customizing.
– The Procurement alternatives for the material have bee defined
– The mixing ratios for the procurement alternatives are defined based on the quantity structure type
– The material is costed with the above-defined costing version.
1. Define the quantity structure type
The path to configure mixed costing is as below (ECC 6.0)
The tcode for quantity structure type is OMXA.
Now I created the qty structure type “MIX”.
“Time Dependency” – This controls the time period in which the quantity structure will be used. It can be time indepenent, based on fiscal year, or based on each period.
“Percent validation” – Tick this indicator if you want to ensure that the sum of the existing mixing ratios for a material and quantity structure type totals 100%.
2. Associate the quantity structure type to a costing version
The path is right after that for the quantity structure type.
For the attached screenshot, the mixed costing will be called with the qty structure type MIX, when costing version = 1 & costing type = 19, or when costing version = 99 & costing type = 01 & valuation variant = 001. The system will not do mixed costing for the other combinations of costing version & costing type & valuation variant.
In this transaction, you can also define
– Variant for transfer price determination
– Exchange rate type for currency translation
The configuration for the costing version can also be checked via costing variant configuration(tcode OKKN). It’s a more convenient way as the configuration is based on the combination.
In the Assignment tab, click the costing version button.
You’ll see for the costing variant PPC1 (costing type 01, valuation variant 001), costing version 99 is assigned the qty structure type “MIX”.
3. Define procurement alternatives
The tcode is CK91N. Here we need to create the procurement alt per material/plant.
I created two proc alternatives for different versions. It’s also possible to create alternatives for different valuation type/process cateogry/etc…
For process category
– Production
you can choose to create procurement alternatives for in-house production either with production versions or by using the BOM and routing.
– Purchase order
You can then enter a vendor and the relevant purchasing org in the initial screen.
In the cost estimate for a procurement alternative with reference to a vendor, strategy “L” (price from purchasing info record) is always automatically set to highest priority strategy. If you want to have a different logic, you may consider note 636967 and 319832.
You can also create an unspecified procurement alternative. To do this, do not enter a vendor or a purchasing organization. The material is then valuated with the prices in the material master and not using the purchasing info record.
– Subcontracting
In this case the system will require you to enter the information on the BOM, vendor and purchasing org.
– Stock transfer
You’ll be required to enter the source plant
4. Define Mixing Ratios for the procurement alternatives
The tcode is ck94
Here we can create the mixing ratios for the material per qty structure type.
Since our Qty Structure type “MIX” is based on fiscal year, here we only need to enter the “fiscal year” information.
If it’s based on period, we need to create the mixing ratios for each period.
Here all the proc alt created via CK91N will be displayed. And you can assign the mixing radio to them as you want.
– MR indicator
Set this indicator if you want to include a procurement alternative in mixed costing. It will ensure this procurement alt will be included in a mixed costing (even with a weighting of 0).
– Mixing Ratio
This is the most import figure in this transaction. You can enter equivalence numbers or percentages. But if “Percent validation” is ticked for the qty structure type, the sum of the existing mixing ratios must totals 100%.
5. Cost the material with the above-defined costing version.
Create a cost estimate for material YS-FRAME-01/plant IWS0 with costing variant PPC1 and costing version 99. The mixed costing is successfully carried out, as expected.
Please note, the costing lot size of mixed costing is different with the normal costing.
For more information please refer to note 402440, which provided very detailed explanation of the logic together with some examples.
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6 Comments
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Former Member
May 31, 2010 at 9:00 pm
Hi Expert,
When i will post MB1B, system occur a error message F5800 of Inconsistent currency information as below:
Inconsistent currency information
Message no. F5800
Diagnosis
The currency information for the financial accounting component must be
transferred fully for each currency type.
If, for example, the sending application sends corporate group currency
data to Accounting, this currency data must be transferred for every
company code line item.
An error has occurred for line item '0000000002' of the financial
accounting document (company code '5000') with currency type '12'
(currency key 'CNY'). This could be for one of three reasons
Line item '0000000002' does not have any currency data for currency type
'12', although at least one other line item has currency data for
currency type '12'.
Line item '0000000002' contains currency data for currency type '12',
although at least one other line item contain no currency data for
currency type '12'.
Line item '0000000002' has no currency data for currency type '12',
although the currency type '12' corresponds to the local currency (
currency type '10').
System Response
Data processing within Financial Accounting can only take place with
consistent currency information.
Procedure
The calling application probably contains a system error. Contact the
calling application to locate the error.
PS: I have already activated transfer price with material ledger.
Could you please help to solve it? tks.
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Former Member
September 12, 2015 at 8:44 am
One of the best document on Mixed Costing !
Regards,
Sharvari Joshi.
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KAPIL MEHTA
February 28, 2018 at 2:42 pm
Hi
I read your article and it is very informative. I just have one query - Can you please suggest standard SAP report which gives standard cost breakup along with procurement alternative level information, if product involved Mixed costing.
I have checked S_ALR_87099930 & S_P99_41000111, but they do not show name/description/identification of Procurement alternative.
Regards
Kapil
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Former Member
March 29, 2018 at 2:27 am
Hi Expert,
Can this set up be apply for one material which have been set up two difference BOM and two difference production Line?
thank you,
TZM
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Tapan Rana
February 1, 2021 at 11:02 am
Yes
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Maria Cirjan
November 3, 2022 at 11:54 am
Hi,
Thank you for the very good description. I have managed to setup all settings displayed above and run costing run via CK40n.
I am facing two issues
after running ck40n the material price still appears with status KA - costed w/o errors instead of released w/o errors. (mm03 doesn't execute it goes into an infinite loading loop for the mixed costing material)
i have other materials set up with different costing version for which I am no longer able to run a second costing run in the same period.
Any suggestions would be highly appreciated
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Mixed-Costing (a)Within-a-PLANT (b) Across-Plant/Comp.Code
SAP mixed costing –> to cost a material using multiple alternative methods, e.g. when you manufacture a material with different internal processes, then specify these through separate production versions. When we execute a cost estimate the system calculates the cost for each production version then calculates an average unit cost using weighting factors. When we display a cost estimate with transaction CK13N, we display the total cost and details of each procurement alternative.
Set-up
CK91 – define how the material is procured, either internally (prod. Versions) or externally
CK94 – specify weighting factors, e.g. production volumes to be produced for the year using each of the production versions
For actuals, a Production-order is produced with a specific production version (e.g. we select P-ver 0001). The target costs for the Production-order are calculated based on the cost estimate data related to that production version. The credit for production uses the weighted average standard cost calculated. The difference between the two multiplied by the production quantity is calculated and reported as mixed price variance when executing the variance calculation transaction (KKS1 / KKS2) using the standard delivered variance categories. When the unit cost of the production version used is higher than the standard cost, unfavourable mixed price variance is calculated; when it is lower, favourable mixed price variance is calculated.
Example : Within-a-Plant, Say one Finished Goods has two production-versions which individually cost as follows
When we set-up MIXED-costing in SAP, example say for month-08, a monthly mix of 20% from Prod.Version 0001 & 80% from Prod 0002, then at that point of time system will calculate the cost of the Finished-prod. as follows
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