SAP Product Costing - Finance Functional

Requirement1. Business ObjectiveThe organization requires accurate and transparent product cost calculations to support pricing decisions, profitability analysis, inventory valuation, and financial reporting. SAP Product Costing (CO-PC) must calculate standard, actual, and planned product costs in alignment with corporate finance policies.2. In-Scope ProcessesMaterial Standard Cost Estimation (CK11N/CK40N)Cost Component StructureActivity Type Planning (KP26)Overhead Calculation via Costing SheetsWork Center/Resource RatesWIP Calculation and SettlementVariance Calculation (KKS1/KKS2)Material Ledger Actual Costing (Optional depending on requirement)Integration with FI, CO, PP, MM, and SD3. Functional Requirements3.1 Master Data RequirementsThe system must allow the creation and maintenance of:Cost Component Structure (CCS)Costing Variants for Standard, Planned, and Actual cost estimatesOverhead Groups and Costing SheetsActivity Types with planned rates (labor, machine, setup)Each material must have:A costing lot sizeValid BOM and routing (or recipe/master recipe for process industries)Assigned costing view in material master3.2 Standard Cost EstimateThe system must calculate standard costs annually (or monthly if required) using CK40N for:Raw materials (purchased)Semi-finished goodsFinished goodsThe cost estimate must:Break down the cost into defined components (materials, labor, machine, overhead, subcontracting)Pick valid BOM and routing dataUse activity rates from Cost Center Accounting (CCA)The system must allow mass release of standard costs with automated FI revaluation postings (OBYC – PRD).3.3 Overhead CalculationThe system must apply overheads based on:Costing sheet (percentage-based or fixed rates)Material origin indicatorProduction plantOverheads must be broken down by:Material overheadProduction overheadAdministrative and sales overhead (optional)3.4 Actual Costing / Material Ledger (If Required)The system must capture actual price differences (PPV, exchange rate, freight, etc.).Material Ledger must calculate:Actual periodic unit price (PUP)Leveling and revaluation of ending inventoryThe system must generate FI/CO postings for variances and closing entries.3.5 WIP & Variance CalculationThe system must calculate:Work In Process (WIP) for orders not yet deliveredVariances for orders delivered (mix, qty, price, scrap, overhead variances)The system must settle:WIP to balance sheet accountsVariances to P&L accountsSettlement rules must be automatically derived based on material type and order type.3.6 Integration RequirementsPosting of goods issue must update cost of goods manufactured using standard cost.Production order confirmations must:Post activity costs based on planned or actual activity ratesCapture scrap quantities and reworkGoods receipt from production must:Credit production ordersDebit inventory at standard costIn case of Material Ledger activation, system must revalue inventory and COGS at period-end closing.4. Reporting RequirementsThe system must provide:Cost Component Reports (CK13N, CK11N)Standard Cost Roll-up comparisonProduction variances by plant, cost center, work centerWIP report by orderActual vs Standard cost comparisonReports must be accessible in SAP ECC/S4HANA, SAP Fiori, or BW (as defined).5. Controls and Audit RequirementsRelease of standard cost estimates must be restricted to authorized finance users.Changes to BOM, routing, activity rates, costing sheets must be logged.System must prevent cost estimate release if prerequisite master data is missing or inconsistent.All FI postings related to product costing must flow to defined G/L accounts as per the chart of accounts.6. Non-Functional RequirementsSystem must support multi-plant, multi-company costing.Performance: Costing run (CK40N) must support batch execution and complete within defined batch window.Compliance with IFRS/GAAP inventory valuation rules.

Salary : $63,700 - $85,100