For optimal viewing of the slides,please press CTRL+SHIFT+F

✅ SAP PP – Costing Integration: Mixing Ratio Costing

Modules Involved:

• SAP PP (Production Planning – Master Recipes)
• SAP CO-PC (Product Cost Planning)
• SAP PP-PI (Process Industries, if applicable)

Use Case: Use mixing ratios in cost estimation when a finished product is manufactured using alternative BOMs or recipes, and each is used in proportion (%).

🎯 Objective

To include cost contributions from multiple BOM alternatives or production versions, each with a specific mixing ratio, to calculate a weighted average cost of a finished product.

🧩 When to Use Mixing Ratio Costing?

ScenarioDescriptionMulti-plant sourcingProduct made in more than one plant, each with a cost differenceProcess industryUsing multiple recipes or formulas in varying percentagesAlternative BOMs or RoutingsOne product with different ways of manufacturing (versions)Weighted costNeeded for standard price calculation across multiple versions

🛠️ Step-by-Step: Mixing Ratio Costing in SAP

✅ 1. Create Production Versions with BOM/Recipe Alternatives

Tcode: C223 or C202 (for BOM)

• Create multiple production versions for the material
• Each linked to:
  • A BOM alternative
  • A Routing/Recipe

✅ 2. Assign Mixing Ratios

Tcode: C223 – Mixing Ratios for Product

• Enter:
  • Material + Plant
  • Production Versions (e.g., V1, V2)
  • Mixing Ratios (e.g., 70% for V1, 30% for V2)

✔️ The sum of mixing ratios must be 100%

✅ 3. Run Cost Estimate with Quantity Structure

Tcode: CK11N or CK40N

• Choose Costing Variant (e.g., PPC1)
• SAP will:
  • Read all production versions and mixing ratios
  • Calculate individual costs for each version
  • Derive weighted average cost

✅ 4. Mark and Release Standard Cost

Tcode: CK24

• Mark and release cost estimate to update standard price (S) in material master

📘 Example

VersionBOM AltRoutingMixing RatioCost/UnitWeighted ContributionV1010170%₹100₹70V2020230%₹130₹39

✔️ Final cost estimate = ₹70 + ₹39 = ₹109

🔍 Where Mixing Ratios Apply

Use AreaNotesProduct Cost EstimateMain use of mixing ratioPlanned OrdersSystem can select version dynamically (if maintained)Cost RollupsEnsures accurate rolled-up cost for header materials

📂 Key Tables

TableDescriptionMKALProduction versionsCKMI1Mixing ratiosCKISItemization of cost estimateCKITCosting itemizationKEKO / CKHSCost estimate headers

✅ Conclusion

Mixing ratio costing in SAP PP–CO integration allows for accurate, realistic standard cost calculation when a product is made using multiple production versions. It supports both discrete manufacturing and process industries, enabling you to reflect real-world cost blending in your cost estimates.