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The overall assignment is:

After the definition, when you have run a cost estimate for certain material, you can use CK13N and select component group layout to view the result

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1. Function of Costing variant

Costing variant is a very important concept in costing, it contains all the information required to execute a material cost estimate.

2. Configuration of Costing Variant (tcode: OKKN)

Please note that costing variant for material costing estimate and for refence and simulation is different. The latter is using OKKO) We’ll use PPC1 as an example.

1) Costing type (OKKI)

Standard price will be updated.

2) Valuation variant

Price update strategies for material, internal activities,

sub-contracting and overhead. The valuation variant is plant-dependent. Actually, this is the price selection sequence (price strategy).

3) Date Control