In mm screen

In discrete scenario (with production orders) all movements 
to order (like raw materials consuption and activities 
posting) are valuated and recorded in each order when 
confirmations ocurrs, increasing the cost balance of order.

when material is posted to stock, the order balance is 
decreased by the value of the material.

After order is finished remaining diferences in the order´s 
balance is posted to liquidation rule of the order, usually 
the order´s material acount, valuating the stocks.

In Repetitive scenario the process is almost the same, just 
changing the cost object from order to cost colector. In 
that case you can´t evaluate costs by orders, just by 
periods.

There are different methods of doing product cost estimate. 
e.g., Std. cost estimate or variable cost estimate. 

From the BOM and routing the total no of components used 
for that product is calculated using the price mentioned in 
accouting views and from routings each operation cost is 
calculated from the activity types defined in workcenters. 
Collectively this cost is displayed in Product cost 
estimate as cost of manufacture in the T.code CK 11n.

In case of variable cost, all the variables are considered 
for the production order and the actuals are considered for 
calculating the product cost. It is also posible to have 
cost estimates and actual costs from which we can find the 
variances.