Standard estimates

Cost Accountant creates a standard cost estimates header for a business partner cost object, an organization and an effective date. Standard cost lines carries the element description, quantity, unit price, cost element and account. The estimate total and line count make the baseline reviewable before it is issued. The issue action moves a draft to Sent and records the operation result. Keep the effective date visible when comparing estimates from different periods.

• Set the baseline. Select the cost object and organization, then enter the effective date and estimate lines.
• Review line economics. Check quantity times unit price and the resulting line amount before issuing.
• Keep issue evidence. Use the issue action and inspect its receipt and resulting status.

Agree which person owns standard rates and which ledger account each cost element uses. A change in rate needs a documented effective date so an older comparison remains understandable. Decide when a draft is ready to issue and whether an estimate for a new contract replaces or supplements a previous one. The team should also agree how an estimate number maps to source planning files if rates are imported.

For a product estimate, enter a Hardware line and a Freight line with their expected quantities and rates. Cost Accountant checks the total against the cost object ceiling if one is maintained. The preparer uses Standard Estimate Issue Action once the lines are correct. The resulting record is Sent, and operation receipts carries the issue result and actor. Variance Analyst later opens the issued estimate from the variance record, rather than comparing against an unrelated draft with a similar name.

An issued estimate is a dated baseline. If a rate changes, prepare the next estimate deliberately and leave the earlier record available for the variance that used it. Compare the line composition as well as the total: two estimates can share a total while using different quantities or accounts. During handoff, ask another accountant to locate the source cost object and explain which effective date applies to the actual charge. Check that the estimate and cost object belong to the intended organization before issuing it.

• Estimate Issue Queue — Review draft estimates ready for the issue decision.
• Standard Estimates Overdue — Follow estimates with an overdue status and remaining balance.

See the related process for the handoff, and implementation for the first operating cycle.