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Module: SAP CO – Product Costing / Internal Costing
Use Case: Define the priority of activity prices (planned, actual, manual) that SAP should use when calculating costs in cost estimates or order costing.

🎯 Objective

Control which activity price SAP picks (e.g., from KP26, KSPI, manual entry) during:

• Cost Estimates (CK11N, CK40N)
• Order Costing
• Internal activity allocations

🛠️ Configuration via Costing Variant

✅ 1. Costing Variant Setup

Tcode: OKKN
Path:
SPRO → Controlling → Product Cost Controlling → Product Cost Planning → Costing Variants

• Select your Costing Variant (e.g., PPC1, PC01)
• Go to tab: Valuation Variant

✅ 2. Activity Type/Process Settings (Strategy Sequence)

• In the valuation variant, set Strategy Sequence for Activity Types

StrategyDescription1Planned Price (from KP26)2Manual Price3Actual Price (from KSII)4Standard Rate (from Work Center)

SAP will pick the first available price based on this sequence.

📊 Where Prices Come From

SourceTcodeWhen UsedPlanned PriceKP26Standard cost estimate, planned orderManual PriceKBK6 / substitutionsCustom/overridesActual PriceKSIIActual posting during settlementStandard RateCR02If no price exists in planning

✅ Example

If your strategy sequence is:

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1 – Planned Price (KP26)  
2 – Manual Price  
3 – Actual Price

SAP will:

• Use KP26 price, if available
• If not, check for manual override
• If still missing, use actual price or raise an error

🧠 Best Practices

• Use Version 0 when maintaining KP26 prices
• Always align work center + activity type + cost center
• Periodically review strategy priorities in valuation variants
• If using actual costing, adjust strategy accordingly

✅ Conclusion

SAP uses the strategy defined in the costing variant to determine which activity price to prioritize during cost estimation. Proper configuration ensures accurate, consistent costing results across planning, production, and settlement.