SAP Product Costing Interview Questions & Answers

This is a comprehensive list of SAP Product Costing Interview Questions that are truly based on the technical aspect of the subject. In these questions, I have focused on the most important segments of Product Costing (like configurations & settings). These you require during the implementation of Product Costing in the SAP system.

Topics covered with SAP Product Costing Interview Questions

The list includes questions about:-

• Configuration of cost components
• sales order costing
• WIP calculation
• Material Ledger

Preparing with these SAP product costing interview questions will help you to prove your practical knowledge of the subject. Also, it strengthens your hold over the various technical sections of this functional module. So let us learn some important questions that interviewers ask in SAP Product costing interviews.

1. What do you mean by the Primary cost component split?

Ans. – The primary cost split occurs when you create a cost component structure. When we switch on this setting, the system picks up the primary cost from the cost center and assigns it to the various cost components.

2. How does the system pick a primary cost from the cost center into the cost component structure?

Ans. – This is possible when we do a planned activity price calculation from SAP. The SAP system assigns the primary cost component structure to plan version-0 in the SAP Controlling.

3. Is it possible to configure two cost component structures for the same product in order to have two different views?

Ans. – Yes, it is possible. We can create another cost component structure and assign it to the main cost component structure. This cost component structure is called the Auxiliary cost component structure. It provides another view of the cost component structure.

4. How do you go about configuring the Sales Order Costing?

(One of the important SAP Product Costing Interview questions. Interviewers usually ask this to check technical knowledge.)

Ans. – Follow this path in the SAP system:-

Sales Order => Requirement Type => Requirement Class => All settings for controlling.

In the sales order, we have a Requirement Type.

In the configuration, we attach the required class to the required type. Here, we maintain all the configuration settings for this requirement-class for controlling.

Further, in the requirement-class, we attach the costing variant. Please note, we attach the condition type EK02 where we want the sales order cost to be updated and the account assignment category.

Likewise, in the account assignment category, we define whether the sales order will carry the cost or not. If not, then we keep the consumption posting field blank.

We also define here the Results Analysis version which helps to calculate the Results Analysis for the sales order if we require.

You may be interested in: SAP Controlling Interview Questions

5. What is the basic difference in the WIP calculation between Product Cost by Order and Product Cost by Period?

Ans. – Generally in product cost by order, we calculate the WIP at the actual costs. While in the product cost by period (repetitive Manufacturing), we calculate the WIP at target costs.

This is the main difference.

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6. What are the configuration settings for calculating WIP in SAP?

(Again an important SAP Product Costing interview questions).

Ans. – Steps to configure settings for WIP:

Step 1– Define secondary cost elements of type 31 first.

Step 2 – Next define the Result Analysis version. (This result analysis contains line IDs which are nothing but break up costs).

Step 3 – Then, we define Assignments. (Here we assign source cost elements to the line IDs defined above).

Step 4 – Further, we define the secondary cost elements which are assigned to line IDs.

Step 5 – Lastly, we define the Finance GL accounts which are debited and credited when a work in Progress is calculated.

Read: Best SAP FICO Interview Questions

7. What precautions you should take while switching on the material ledger for a plant?

Ans. – Once we activate the material ledger for a plant, we cannot switch it off. Therefore we should be very careful before activating the material ledger for a plant.

Learn in detail: SAP Material Ledger in S/4HANA

8. How do you go about configuring material ledger?

Ans. – The process to follow for Material Ledger Configuration:

1. Activate Valuation Areas for Material Ledger
2. Assign Currency Types to Material Ledger Type
3. Then assign Material Ledger Types to Valuation Area
4. Maintain Number Ranges for Material Ledger Documents
5. Activate Actual Costing ( whether activity update relevant for price determination)
6. Next, activate Actual Cost Component split
7. Lastly, customize settings in OBYC

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9. What problems you may face while activating a material ledger?

Ans. – When we activate a material ledger, we must perform the actual costing run every month. This is to say, we should do the actual costing run immediately after the new month rollover.

This is also important because, after the actual costing run, we cannot post any MM entry to the previous period.

Read: Product Cost Planning in SAP Product Costing

EndNote

Why are these SAP Product Costing Interview Questions important for you?

Product Costing is an important segment of SAP Controlling. It is as important as the S/4HANA Finance module. You may find a good amount of study material for SAP FICO or S/4HANA Finance interview questions, but what matters is the quality and relevancy of those SAP Product Costing interview questions. So review analytically before making a good list for yourself.

I hope these questions would help to better prepare for your next dream job where you wish to have SAP Controlling configuration and maintenance as an important job role in your KRA.

Know What’s New in: SAP Controlling in S/4HANA

Watch Video: SAP Product Costing on Standard Costing