2Purpose, Benefits, and Key Process Steps Reflect the changes in the prices of purchased parts, change in labor and overhead costs and change in bills of materials and operations needed to manufacture the semi-finished and finished goods.BenefitsPrices are updated as future planned costs in the respective material master recordsRevaluation of existing inventory to the new standard pricesKey Process StepsCreate costing runExecute costing runReview errorsAnalyze proposed standard pricesRepeat annual operating plan scenariosEdit cost run and executeAOP – revenue cost of sales transferCreate frozen costing runMark as future planned priceRelease standard cost estimate and revalue stock at start of new fiscal year
3Required SAP Applications and Company Roles Enhancement package 6 for SAP ERP 6.0Company RolesProduct Cost Controller
4Detailed Process Description Standard Cost CalculationAnnually, the standard costs for products are updated as part of the annual operations planning (AOP). This is necessary to reflect the changes in the prices of purchased parts, change in labor and overhead costs and change in bills of materials and operations needed to manufacture the semi-finished and finished goods.Once the planned prices for purchased parts are updated and planned activity prices are calculated, a costing run is done to calculate the new standard planned prices of the materials. The calculated standards are checked. The responsible persons are asked to make necessary corrections, e.g. in master data. Once the calculations are considered to be correct, the prices are updated as future planned costs in the respective material master records.When the current year is closed, the marked cost estimates are released. This results in a revaluation of existing inventory to the new standard prices.
5Standard Cost Calculation Process Flow DiagramStandard Cost CalculationEventAnnual Operating PlanReview Errors and Correct Master Data ErrorsCost Controller after Error SolutionAOP Cost Center Planning (175)FROZEN Annual Operating PlanStart of New Fiscal YearProduct Cost ControllerManufacturing Cost Center Planning(176)AOP - Purchased Material Price Planning (174)AOP – Revenue Cost of Sales Transfer (173)Create Frozen Costing Run and ExecuteNoYesProduct Cost Correct?Analyze the Proposed Standard PricesErrors?Create Costing Run and ExecuteErrors?Update Future Planned PriceNoReview Errors and Unresolved Errors to Master Data TeamYesNoYesEdit Costing Run and ExecuteRepeat AOP Scenarios as RequiredCorrect Errors, Edit Costing Run and ExecuteRelease Future Planned Price as Current Version and Revalue StockDebit/Credit Inventory, Debit/Credit RevaluationAOP = Annual Operating Planning
6Legend Symbol Description Usage Comments Symbol Description Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.Role band contains tasks common to that role.External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.Connects two tasks in a scenario process or a non-step eventBusiness Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenarioDoes not correspond to a task step in the documentUnit Process: Identifies a task that is covered in a step-by-step manner in the scenarioCorresponds to a task step in the documentProcess Reference: If the scenario references another scenario in total, put the scenario number and name here.Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario hereProcess Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.Does not usually correspond to a task step in the document; Reflects a choice to be made after step executionSymbolDescriptionUsage CommentsTo next / From last Diagram: Leads to the next / previous page of the DiagramFlow chart continues on the next / previous pageHardcopy / Document: Identifies a printed document, report, or formDoes not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow linesFinancial Actuals: Indicates a financial posting documentBudget Planning: Indicates a budget planning documentManual Process: Covers a task that is manually doneDoes not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.Existing Version / Data: This block covers data that feeds in from an external processDoes not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow linesSystem Pass / Fail Decision: This block covers an automatic decision made by the softwareDoes not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.Diagram Connection<Function>External to SAPHardcopy / DocumentFinancial ActualsBusiness Activity / EventBudget PlanningUnit ProcessManual ProcessProcess ReferenceSub-Process ReferenceExisting Version / DataProcess DecisionSystem Pass/Fail Decision