FI / FICOintermediate

FICO Product Costing Part 3: Costing Variants and Single Cost Estimates

Key takeaway

Configure how costing works: costing variant (costing type, valuation variant, date control, quantity structure control), valuation strategies for materials and activities, cost component structure, overhead costing sheets, and running and analysing single estimates.

Explanation

📌 KEY POINTS
✅ Costing variant (e.g. PPC1) combines costing type, valuation variant, date control and quantity structure control.
✅ Valuation variant defines price strategies for materials (e.g. planned price, then moving average) and activities.
✅ Cost component structure (OKTZ) maps cost elements to components.
✅ Overhead costing sheets (KZS2) apply overhead rates.
⚠️ Changing valuation strategies changes every standard price — document and approve.

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▶ WHERE WE ARE
Part 2 covered the run. Now configuration.

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▶ 1. COSTING TYPE

Which price field is updated (standard price).

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▶ 2. VALUATION VARIANT

Material price strategy, activity prices, overhead sheet.

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▶ 3. DATE CONTROL

Costing date, valuation date, quantity structure date.

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▶ 4. QUANTITY STRUCTURE

BOM and routing selection.

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▶ 5. COST COMPONENTS

Structure and assignment of cost elements.

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▶ STEP BY STEP

Review PPC1 settings.
Check the valuation variant strategy.
Run CK11N and analyse components.

✅ CHECKPOINT: all costs assigned to components.

Code example

ABAP Code

===== CONFIG MAP =====OKKN costing variant (e.g. PPC1) | OKKI costing type | OKK4 valuation variant | OKK6 date controlOPPQ/OPPR quantity structure control | OKTZ cost component structure | KZS2 costing sheet ===== VALUATION STRATEGY EXAMPLE =====Materials: 1 planned price 1 → 2 moving average priceActivities: plan price per period

Real project scenario

During an S/4HANA rollout, finished goods costs had an 'unassigned' component because new cost elements weren't in the component structure. Adding them made the split complete and margins by component correct.

Common mistakes

Unapproved strategy changes.
Missing cost element assignments.
One variant for everything.
Wrong dates.
No documentation.

Best practices

Approve strategy changes.
Complete component assignments.
Separate simulation variants.
Correct date control.
Document settings.

Interview angle

Questions: "What does a costing variant contain?", "What is a valuation strategy?", "What is a cost component structure?"
Strong answer: variant components, strategies, dates, quantity structure, components.

Practice this lesson

Quick check

1. Which transaction creates a single material cost estimate with quantity structure?

2. A cost estimate shows costs in no cost component. What is the likely cause?

3. What does the valuation variant in a costing variant control?

Interview questions

1. Cost component splits don't add up and some cost estimates use unexpected prices. How do you review costing variant configuration?

Answer it in your own words first, then compare.

2. What are the most important design decisions, trade-offs, and best practices in Product Costing?