FI / FICOintermediate

FICO Product Costing Part 2: The Costing Run and Posting Flow into Production

Key takeaway

Cost many materials at once and put prices into use: the costing run (selection, BOM explosion, costing, analysis, marking, release), price update and stock revaluation, and how standard prices drive postings in production — goods issues, confirmations and goods receipts at standard.

Explanation

📌 KEY POINTS
✅ The costing run (CK40N) costs many materials in steps: selection, explosion, costing, analysis, marking, release.
✅ Marking sets the future price; release makes it the current standard and revalues stock.
✅ Errors (missing prices, BOM issues) must be resolved before marking.
✅ In production, goods receipt of finished goods posts at standard; differences become variances.
⚠️ Releasing mid-period without planning causes revaluation postings and confuses variance analysis.

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▶ WHERE WE ARE
Part 1 explained estimates. Now the mass run and flow.

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▶ 1. COSTING RUN STEPS

Selection → explosion → costing → analysis → marking → release.

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▶ 2. ERROR HANDLING

Messages per material; fix and recost.

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▶ 3. PRICE UPDATE

Future → current standard; stock revaluation.

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▶ 4. PRODUCTION POSTINGS

GI components, confirmations, GR at standard.

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▶ 5. VARIANCES

Actual vs standard at period-end (Part 5).

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▶ STEP BY STEP

Create a costing run for a plant.
Execute steps and review errors.
Mark and release.

✅ CHECKPOINT: all selected materials released with explained changes.

Code example

ABAP Code

===== COSTING RUN =====CK40N: selection → structure explosion → costing → analysis → marking → releaseCK24 alternative price update | CK11N single recosting of error materials ===== PRODUCTION FLOW =====GI components: Dr production order | Cr inventory (standard)Confirmation: activities to order (plan prices)GR finished goods: Dr FG inventory (standard) | Cr production order

Real project scenario

At a process manufacturing company, 40 materials failed in the annual costing run due to missing purchase prices, but the team released the rest and didn't notice. Those materials kept last year's standards. Adding an error review step before release fixed it.

Common mistakes

Ignoring error materials.
Unplanned mid-period releases.
No comparison of old/new.
Missing prices.
No communication to controlling.

Best practices

Review all errors.
Plan release timing.
Compare standards.
Maintain prices.
Communicate changes.

Interview angle

Questions: "Explain the costing run steps", "Mark vs release?", "How do standards affect production postings?"
Strong answer: run steps, errors, price update/revaluation, production flow, variances.

Practice this lesson

Quick check

1. What is the difference between marking and releasing a cost estimate?

2. A team wants to release new standard prices mid-period without planning. What is the risk?

3. Some materials failed in the costing run due to missing prices, but the rest were released. What happens to the failed ones?

Interview questions

1. How would you apply Product Costing in a real SAP project? Walk through the design or implementation approach.

Answer it in your own words first, then compare.

2. Run the annual costing run and explain how new standards affect production postings.