Define The Costing Run Name

Introduction:
Calculation of standard cost is the annual event generally done at the beginning of financial year
during Planning & Budgeting activities, which result into calculation and release of standard cost
estimate.
CK40N is a powerful tool provided by SAP to calculate cost estimate with high level of accuracy for
in-house produced material and material procured from outside. CK40N is executed in multiple steps
from selection of material to release of cost estimate, which generally took of time to get executed.
The purpose of this article is to specify how we can use the standard functionality of SAP to
automate CK40N, for calculating cost estimates.
Automation of CK40N:
Product cost estimate through CK40N includes the below steps:
Selection
Structure Explosion for in-house produced materials
Costing for all the materials at structure explosion
Analysis for cost estimates
Marking for cost estimate as future standard cost
Release of future cost estimate as current standard cost estimates
Define the costing run name:
Transaction CK40N, new cost estimate
Specify the validity dates for cost estimates

Save the costing Run. Now we can see the different steps under Create Cost estimate tab. We need
to change Parameter for each flow and by specifying parameters for all the steps then we will
execute CK40N on background by considering all the steps in one go.
Selection of material
After executing the selection step, system start selecting the materials to be used for the costing run,
according to the selection criteria. Generally we specify the plants as selection criteria, if we don`t
specify any plant or material then system consider all the plants under the co. Code level for which
we are creating the costing run, so it`s necessary to specify the selection criteria based on
requirement.
Click on change parameter,
Specify: Plant
Activate Background Processing
Click on Save
A message will appear as variant created, keep the note of the name. The same variant will be
created in all other steps.
Click on Back button or <F3> to go to initial screen of CK40N run

Structure Explosion for in-house produced materials
Structure explosion is the process of including the lower level materials i.e. the materials used under
the bill of materials for in-house produced materials selected at previous steps. The main reason for
this step is to do the cost estimate for raw materials in BOM so that cost estimate for in-house
materials can be ascertained correctly.
Click on change parameter
Click on Save
A message will appear as variant saved.
Costing for all the materials at structure explosion
Execution of costing step, allow the system to do the cost estimates for all the materials selected in
structure explosion step. It includes the cost estimates for raw material, purchase from external
vendor and calculate the cost of in-house produced materials from plan activity rates and raw
material cost.
Click on Save
Analysis for cost estimates
This step provide the analysis of cost estimates based with the details of different components like
raw material cost, overhead cost, manufacturing cost etc for main and auxiliary cost estimate. The
cost estimates details can be viewed at cost element level.
Click on Save
A message will appear as variant saved with the same variant name.
Marking for cost estimate as future standard cost
Execution of marking step indicates that cost estimates for material is recorded in material master
data as Future Standard Cost. This can be viewed in field Future cost estimates under the tab Cost
estimate 2 in material master data. Marking of cost estimates can be done in advance before the
cost estimate valid dates come.
Allow the marking to be executed

Click on Save
Release of future cost estimate as current standard cost estimates
After executing the release step, the mark future costs get converted to current standard cost
estimates. This can be viewed in field Current standard cost estimates under the tab Cost estimate 2
in material master data
Click on Save
Click back button, now we can see the below screen
Automation with the help of Background job runs:
We can execute all the steps of CK40N through background job run in a proper sequence so that all
the steps will come at the right sequence and then cost estimate can be released automatically.
SAP use the different Program name for executing the different steps, as specified in below tables.
Variant Description of Step Program Name
MANISHKR735372 Selection SAPRCK60
MANISHKR735372 Structure Explosion SAPRCK62
MANISHKR735372 Costing SAPRCK10
MANISHKR735372 Analysis RKKBCAL2
MANISHKR735372 Marking SAPRCK23
MANISHKR735372 Release SAPRCK23
Now execute the steps through Background processing:
Transaction SM36
Click on Job Wizard
Specify the Job Name:

Select ABAP program step
Click Continue
Now we will define the first step (Selection step in CK40N)
Specify the program name for selection step as SAPRCK60 & name of variant as noted at the time
of saving the selection step. The name of variant will be same for all the steps but the name of
program will change.
Click Add additional steps and then we will continue to define the steps for other steps of CK40N
Details for Structure explosion step:
Details for Costing step:
Details for Analysis step:
Details for Marking step:
Details for Release step:
Click on time to start the job, it can be immediately or we can specify date & time.
Click on Continue & then save the jobs.
Once the jobs gets finished, we can check CK40N for the results
If there will no errors in costing then all the steps will be get executed.
Important points:
Must open all the steps and save on background processing, so that variant can generated and
saved for all steps.
Allow the authorization for marking.
Remove the test runs from step Marking & Release
This process will help to save lot of time and this can be used during non-productive hours.
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Define The Costing Run Name

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Introduction:

Specify the validity dates for cost estimates

Click on Back button or <F3> to go to initial screen of CK40N run

Click on change parameter

Specify the Job Name:

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