Automation of standard cost estimate for release of std cost estimate .

1. CK40N --- Automation of Standard Cost Estimate
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:
Ø Selection
Ø Structure Explosion for in-house produced materials
Ø Costing for all the materials at structure explosion
Ø Analysis for cost estimates
Ø Marking for cost estimate as future standard cost
Ø 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

2. 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 Company 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
· ActivateBackground Processing

3. 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. (注意: 需要保存记录下来这个 variant value )
Click on Back button 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-houseproduced 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-housematerials can be ascertained correctly.
Click on change parameter
· ActivateBackground Processing

4. 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 calculatethe cost
of in-house produced materials from plan activity rates and raw material cost.
Click on change parameter
· ActivateBackground Processing
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. Thecost estimates details can be viewed
at cost element level.
Click on change parameter
· ActivateBackground Processing
Click on Save
A message will appear as variant saved with the same variant name.

5. 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
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Click on change parameter
· ActivateBackground Processing
Click on Save
A message will appear as variant saved.
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 change parameter
· ActivateBackground Processing ( do not mark “Test Run “)
Click on Save
A message will appear as variant saved.

6. Click back button, now we can see the below screen
Automation with Background job runs: (set up automatic background job)
1. Click the first clock to activiate background job
2. Set the planned start timeas you requested
3. Click the confirm and make sure the job is released
4. Then continue to activiate other background job (继续设置下面几个 job，点击”clock” 图标)
Goto--- > Job Overview --- > (等所有的 job 设置完后， 去查看你设置的 background job )

7. Click “Execute “ and choose “ Released “ and ”finished” to search for your released background job just now
After all of job running finished , and you need to back main screen of costing run and check error logs :