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Controlling (CO)

Controlling is used for internal reporting


Controlling Area is the highest hierarchy.

Areas to be covered:

1. Cost element Accounting


2. Cost centre accounting
3. Internal orders
4. Profit centre accounting
5. Product costing
6. Profitability analysis

1. Cost element Accounting: To update controlling records you have to create cost
elements
Cost elements are:
a. Primary cost elements
b. Secondary cost elements

2. Cost centre Accounts: To view department wise cost

3. Internal orders: To view costs for a specific tasks

4. Profit Centre Accounting: To view profitability, product wise, product group wise
(or) location wise if business area is not activated in FI

5. Product Costing: valuation of inventories like finished goods and work in process.

6. Profitability analysis: To view profitability for number of parameters at a time like


Customer wise, product wise, sales organization wise, plant wise, sale order wise

This is called data cube


It is a reporting tool

Basic settings for controlling:

FI organization structure Co. organization structure

Company Controlling

Company code

Business Areas Cost centre

1
Scenario – 1

Company

Company code = Controlling Area
↓ ↓
Business Area  Cost Centre

Controlling area at company code level, cost element is assigned to Business


Area.

Scenario – 2

Company = Controlling area



Company code

Business Area  Cost Centre

(Controlling area at company level)

Scenario (2) is more flexible, because in this scenario when we want to view number of
cost centers data for different company codes, we have to go for 2nd scenario.
Also we want view No. of cost centers data for a particular company code we get
in 2nd scenario by creating cost center group.

Maintain controlling area:

Path: SPRO  Controlling  General controlling  Organization  Maintain


controlling area

Double click on maintain controlling area (T. Code OKKP)

Select new entries button

Controlling area:

1st scenario: company code: AML


2nd scenario: Any no. (Or) name (Max 4)

Give controlling area: AML

Name: Controlling area for AML

Company code  Controlling Area: select controlling area same as company code

2
Currency type: select 10 (company code currency)

Once we select 10, your currency field, chart of accounts field, fiscal year variant field
updated automatically

Cost centre standard hierarchy: AMLHIER (AML Hierarchy)

Select save button (or) (ctrl + s)

Select ‘yes’ button for the message, system to create as a standard hierarchy

Select create request button

Short description: Co. Customization for AML

Press enter

Press enter once again to saving the request

Double click on Activate components/control indicators folder

Select new entries button

Fiscal year: 2006

For the field cost centre: select component active

Select activate type check box

Order management: select component active

Select profit center check box

Select save button (or) (ctrl + s)


Ignore the message, press enter

Double click on assignment of company codes folder

Select new entries button

Select the company code: AML

Select save button (or) (ctrl + s)

3
Maintain Number ranges for controlling documents
Same path: (T. Code KANK)

1. Co. documents through posting from FI document: Controlling through posting of


accounts in FI Module i.e. called COIN
In FI you have to give the details like

SA Co: Automatically generated number range intervals

‘O’

1 – 100000

2. Report Co. line items (RKU3)


Posting through FI document

Ex: Wages Dr Dept A 100000


Wages Dr Dept B 200000 (COIN)
Wages Dr Dept C 300000
To Bank 600000

2) Wages A/C Dr 600000


To Bank 600000
At the time of posting which department we are posting is don’t know

After Posting (repost to CO items) (RKU3)

We transfer 600000 to various cost centers (or) dept.

600000: 1) Dept A 100000


2) Dept B 200000
3) Dept C 300000
(Transfer line item wise/document wise)
Here 1 FI document and 2 CO. documents are generated

3. Repost costs (RKU1): Incase split the department (or) wrong cost centre postings.
Example: Dept A Dept Z
Salaries
April 100000  20000
May 200000  50000 (Repost to cost line items)
June 200000
July 200000
August 100000
Wages: 200000
------------
Total 1000000

4
Here 200000 Salaries & Wages belongs to dept Z & 800000 belongs to dept A

How we shown the total transaction amount transferred to department wise

Here NO FI documents
Only Co. document

Dept A Dept B
Salaries A/C

1 100000 20000
2 200000 50000 (Repost cost line items
3 300000
4 50000
5 150000
---------- --------
Total 800000 70000 (Repost Cost)

4) Planning Primary Costs (RKP1) (Budgeting)

Maintain Number Ranges for controlling document (same path)

(Transaction Code KANK)

Give the controlling area: AML

Select Maintain group’s button

From the Menu select group  Insert

Text: Co. document No. range intervals for AML

From No: 1 to 100000

Enter

Double click on COIN (Co. through postings from FI)

Double click on RKU3 (Repost Co. line items)

Double click on RKU1 (Reposts costs)

Double click on RKP1 (Planning Primary cost)


Select Co. document no. range intervals for AML check box
From the menu select edit  Assign element group
Save (or) (ctrl + s)

5
Maintain versions:
(Versions are nothing but budgets)

- Planning for whole year (original Budget) – 0

- Revised Budget – 1

- Re revised Budget – 2

Here actual are compared with original/revised (or) re revised budgets

Path: Same Path

Select version ‘0’

Double click on settings for each fiscal year

Give your controlling area: AML

Enter

Once the planning is complete select version locked check box so that no one change
planned figures
Save

Cost element Accounting:

To update Co. records we require cost elements

Cost elements are 2 types


1. Primary cost elements
2. Secondary cost element

1. Primary cost elements: These are nothing but G/L expenditure/ revenue
Account.
Posting to primary cost elements are possible.

2. Secondary cost elements:

- Other than your G/L Account


- Postings are not possible
- Support for allocation/settlement in Co.

6
Cost element categories:

Primary cost element categories:

1. Primary costs/cost – reducing revenues – used for expenditure account

3. Accrual/deferral per surcharge  used for Month end provisions in co

11. Revenues – used for sales and other income accounts

12. Sales deductions – used for expenditure like trade discount/sales conversion etc.

22. External settlement: Allocation from Co to G/L (or) Assets.

Secondary cost element categories:

21. Internal settlement – Allocation from Co to Co

31. Order/project results analysis (used for work in process calculation in product
costing)

41. Over head rates  used for raw material over head/production overhead
calculation in product costing.

42. Assessment  used for allocation of service department cost to production


departments.

43. Internal activity allocation (This is used for calculation of activity like machine
hour rate/labor rate in product costing.

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Cost Centre Accounting
This is used to view department wise costs.
a) Creation of primary cost element

May created in – FI Area


- Co Area
- Automatic creation of cost element
b) Creation of field status group making cost center mandatory.
c) Assign new field status group in G/L expenditure accounts.
d) Creation of cost centers
e) Creation of cost centre groups
f) Creation of cost element groups
g) Posting of transaction is FI
h) To view cost center wise report

a) Creation of primary cost element at FI Area:

Use the transaction code: FS00

Select your G/L Account No: 400001

Company code: AML

Enter

Select edit cost element button

Give valid from 01.04.2006 to date 31.12.9999

Enter

Cost element category: select 1 (Primary cost/cost reducing revenues)

Save

Creation of primary cost element at Co. area: (T. Code FS00)

Path: Accounting  Controlling  Cost element accounting  Master data  cost


element  Individual processing  create primary (T. Code KA01)
Cost element – 400100
Valid from 01.04.2006 to 31.12.9999
Enter
Co. element category – 1
Save

8
Automatic creation of primary cost element

There are 3 steps in this area

1st step  make default settings.

SPRO  Controlling  cost element accounting  master data  cost element 


automatic creation of primary and secondary cost elements  make default setting
(T. Code OKB2)

Chart of Accounts  AML

Enter

Accounts from: 400101 to 499999

Save & save in your request

Create batch input session:

SPRO  Controlling  cost element accounting  Master data  Cost element 


Automatic creation of primary and secondary cost elements  make default setting
Create batch input session (T. Code OKB3)

Controlling area: AML

Valid from: 01.04.2006 valid to 31.12.9999

Session name: AML

Batch input user: sap user

Execute (F8)

Execute batch input session:

Path: SPRO  Controlling  Cost element accounting  Master data  cost element
 Automatic creation of primary and secondary cost element  Execute batch input
sessions (T. Code SM35)

Select the session name: AML


Select process button
Select display errors only radio button
Select process button
You get message processing of batch Input sessions completed
Select exit batch input button (F12)

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To view the cost elements created

Path: Accounting  Controlling  Cost element accounting  Master data  cost


element  Individual processing  Display (T. Code KA03)

Select the drop down button beside cost element

Give the controlling area: AML, enter

Creation of field status group making cost centre mandatory:

Path: (T. Code: OBC4)

Select field status variant: AML

Double click on field status group folder

Double click on G004

Double click on general data

Text make it required entry field

Select next group button

Cost centre make it required entry field

Save (or) (ctrl + s)

Save in your request

Assign new field status group G/L expenditure:

Use the transaction code: FS00


`
G/L account: 400100 (Salaries)

Company code: AML

From menu  G/L Account  Change

Select create/bank/interest tab

Field status group: G004

Save

10
G/L Account: 400300 (Rent A/C)

Company code: AML

From menu  G/L Account  change

Select create/bank/interest tab

Field status group: G004

Save

Creation of cost centre:

Path: Accounting  Controlling  Cost centre accounting  Master data  Cost


centre  Individual processing  Create (T. Code KS01)

Cost centre: Dept A

Valid from: 01.04.2006 to 31.12.9999

Enter

Name: Dept A

Depart Cost centre: Department A

Person responsible: A

Cost centre category: 1 (Production)

Hierarchy area: AMLHIER

Business area: AMH

Currency: INR

Save (or) (Ctrl + s)

Ignore the warning message, press enter

11
Cost centre: Dept B

Valid from: 01.04.2006 to 31.12.9999

Reference cost centre: Dept A

Controlling area: AML

Enter

Name: Department B

Description: Cost centre department B

Basic data

Person responsible: B

Save (or) (ctrl + s)

Ignore the warning message, press enter

Cost centre: Dept C

Valid from: 01.04.2006 to 31.12.9999

Reference cost centre: Dept A

Controlling area: AML

Enter

Name: Department C

Description: Cost centre department C

Basic data

Person responsible: C

Save (or) (ctrl +s)

Ignore the warning message, press enter

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Creation of Cost centre group:

Path: Accounting  controlling  Cost centre Accounting  Master data  Cost


centre group  Create (T. Code KSH1)

Cost centre group: AMLProdu

Enter

AMLProdu – Production department for Co. area AML

Select insert cost centre button (Shift + F4)

Give the cost centre: Dept A, Dept B

Save

Creation of cost element group:

Path: Accounting  controlling  Cost centre accounting  Master data  Cost


element group  Create (T. Code KAH1)

Cost element group: AMLADMIN

Enter

AMLADMIN – Administration expenses for AML

Select insert cost element button (Shift + F4)

400300 to 400399

Enter & save

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Posting of transaction in FI

T. Code: F – 02

Document date: 23.10.2006

Type: SA

Company code: AML

Posting: 40

Account no: 400100 (Salaries)

Enter

Amount: 200000

Cost centre: Dept A

Text: Salary payment

Posting: 40 (one more debit)

Account No: 400300 (Rent account)

Enter

Amount: 50000

Cost centre: Dept A

Text: Rent payment

Posting key: 50

Account No: 200101 (IDBI Current Account)

Enter

Amount: ‘*’

Business area: AMH


Text: Expenditure for October

Document  Simulate and save

14
To view cost centre wise report:

Path: Accounting  Controlling  Cost centre accounting  Information system 


report for cost centre accounting  line items  cost centers actual line items (KSB1).

Cost centre: select dept A

Execute

Keep the cursor on first line item

Select doc. Button (Shift + F2)

Select back arrow

Select change layout button (Ctrl + F8)

Select ref doc. No. under column set

Select value in reporting currency under columns.

Select left arrow (or) show selected field button

Select reference document number under column set

Select document number under columns

Select left arrow (or) show selected fields’ button

Select business transaction under column set

Select reference document number under column

Select left arrow (or) show selected fields button

Enter

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Repost Co. line items (RKU3)

No FI document

Only Co. document

Dept A Dept B Dept C

400100 200000 75000 25000


400300 50000

Transfer document wise/line item wise

Report Co. line item: Accounting  Controlling  Cost centre accounting  actual
postings  report line items  enter (T. Code KB61)

Select accounting document number: 33

Company code: AML

Fiscal year: 2006

Execute (F8)

Double click on 200000 (First line item)

New accounts assignment

Amount: 75000

Cost centre: B

Select next item button (Ctrl + F11)

Select next button

New account assignment

Amount: 25000

Cost centre: Dept C

Save

Go and see the cost centre report (KSB1)

16
Cost centre: dept A

Execute (F8)

To view cost element wise totals

Select cost element column

Select sub total button (Ctrl + Shift + F6)

Repost cost: (RK01)

 Split department/wrong postings to cost centre


 Transfer amount wise/cost element wise
 No FI document only Co. document

25000 dept C  No FI document


10000 Dept C  Only Co document

Repost cost:

Path: Accounting  Controlling  Cost centre accounting  Actual postings 


Manual re postings of costs (T. Code: KB11N)

Ccts (old) – Dept A

Cost element: 400100 (Salaries)

Amount: 25000

Ccts (New): Dept C

Ccts (old): Dept A

Cost element: 400300 (Rent)

Amount: 10000

Ccts (new): Dept C

Save

17
Planning cost centre wise:

Path: Accounting  controlling  cost centre accounting  planning  cost and


activity inputs  change (T. Code KP06)

Version: 0

From period: 1

To period: 12

Fiscal year: 2006

Cost center group: AMLHIER

Select next page (or) page down button

Cost element: 400000 to 499999

Select form based radio button

Free centers to choose cost Form based enter cost element list
element from drop down is available on screen plan against
menu and plan cost element

Select over view screen button (F5)

Cost element: 400100

Enter plan fixed cost: 600000

Distribution key: ‘0’ (Equal distribution)

Select cost element: 400100

From menu  go to  period screen F6

Select back arrow


For cost element: 400300
Plan fixed cost: 540000
Distribution key: 1
To plan for department: B
Select combination button (Ctrl + F12)
To go to department: A
Select previous combination button (Ctrl + F1)
Select save button (or) (ctrl + s)

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To view various reports cost centre wise accounting

Path: controlling  cost centre accounting  information system  reports for cost
centre accounting  plan/actual comparison  cost centre actual/plan/variance (T. Code
S _ ALR _ 87013611)

Controlling area: AML

Fiscal year: 2006

From period: 7

To period: 7

Plan version: 0

Cost centre (or) values – Dept A

Execute

To go to transactional level

Keep the cursor on salaries A/C and costs

Select call up report button (F7)

Double click on cost centre actual line items

Keep the cursor on first line item

Select document button

How to set up controlling area

Path: Accounting  Controlling  Cost centre accounting  environment  set


controlling area (T. Code OKKS)

Controlling area: AML

Period lock:
Path: Accounting  Controlling  Cost centre accounting  environment  period
lock  change (T. Code OKP1)

Controlling area: AML1

Fiscal year: 2006

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Selected button (FS) FI CO

a) Transaction
effect FI and CO (COIN) √ √

b) Transaction
Affect only Co (RKU1/RKU3) No √

c) Transaction
effect only FI balance sheet √ No

Keep the cursor on 01

Select lock period button (F5)

Save

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Reconciliation Ledger
 Reconciliation used when
 When number of company codes having one controlling area  2nd scenario
 It generates documents only in FI
 It can be run at controlling area

AML controlling area

Company code
AML Company code
ASL

Dept a Dept B Dept C Dept X Dept Y Dept Z

If salaries paid and posted FI at (F – 02)

Salaries A/C

100000

Out of 100000/- salaries 20000 belongs to company code ASL (Dept x) balance
80000/- belongs to company code AML

If we use the reconciliation account at cost centre level and the 20000/- is transferred to
company code ASL (Dept x) it passes the entry in Financial automatically

Here
Reports at  No FI records

Co. area

In AML Books

ASL Dr 20000
To Salaries A/C 20000

In ASL Books

Salaries A/C Dr 20000


To AML A/C 20000

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Customization at finance:

Copy company code AML customization including accounting to

Path: SPRO  enterprises structure  definition  financial accounting  edit, copy,


delete, check company code

Double click on copy, delete, check company code (T. Code EC01)

From the menu select organization object  copy organization object

From company code: AML

To company code: ASL

Enter

Select ‘yes’ for the message (For copy the G/L Accounts)

Select ‘No’ button to allocate a different local currency

Ignore the message press enter

Select create request button

Short description, customization for Aravind Steels limited

Press enter

Enter once again to saving the request

Go on press enter till you got the message company code AML copied to ASL with out
75 number range objects.

Ignore the message press enter

Select back arrow

Double click on edit company code data


Select position button
Give the company code: ASL
Enter
Select company code: ASL
Select details button
Change the company name to: Aravind Steels limited
Save & Save in your request

22
Assign company code to company
Path: SPRO  enterprises structure  Assignment  Financial Accounting  Assign
Company code to company

For company code: ASL

Assign company AVG then select

Save button (or) (ctrl + s)

Save in your request

Document type ‘SA’ should allow inter company posting

Use the transaction code: ‘OBA7’

Select position button

Document type: SA

Enter

Select the document type: SA

Select details button

Select inter company posting check box

Save

Creation of 2 G/L Accounts

AML Books ASL Books


a) FI/CO reconciliation A/C a) FI/CO reconciliation Accounts
400150 A/C (Expenses A/C ( 400150)
with out cost element)

b) ASL A/C 0 200160 b) AML  A/C No: 200161

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Use the transaction code:FS00

Give the G/L account No: 400150

Company code: AML

Select with template button

Give the G/L account: 400100 (salaries account)

Company code: AML

Enter

Change short & long text: FI/CO reconciliation account

Select create/bank/interest tab

Field status group: select ICCF (Co  FI reconciliation posting)

Save

Give the G/L Account NO: 400150

Company code: ASL

Select with template button

Give the G/L account No: 400150

Company code: AML

Enter & save

G/L Account No: 200160

Company code: AML

Select with template button

Give the G/L account No: 200120 (Inventory raw material)

Company code: AML

Enter

24
Change short & long text to: Aravind steels limited

Select create/bank/interest tab

Field status group: G067

Save

G/L Account No: 200161

Company code: ASL

Select with template button

Give the G/L Account No: 200160

Company code: AML

Enter

Change the short text & long text to: Aravind mills limited

Save

Prepare cross company code transactions

SPRO  financial accounting  general ledger accounting  business transaction 


prepare cross company code transactions
FI Customization (T. Code OBYA)

Give the company code 1: AML


Company code 2: ASL

Enter

Posted in AML

Cleared against ASL

Debit posting key: 40

Account debit: 200160

Credit posting key: 50

Account credit: 200160

25
Company code: 2

Posted in: ASL

Cleared against: AML

Debit posting key: 40

Account debit: 200161

Credit posting key: 50

Account credit: 200161

Save (or) (ctrl + s)

Save in your request

Co. Customization:

Assign company code ASL to controlling area AML:

Use the transaction code: OKKP

Select controlling area: AML

Select details button

Company code to controlling area  select cross company code cost accounting

Document type: SA

Save

Save in your request

Double click on assignment of company codes folder:

Select company code: AML

Select copy as button

Change the company code to: ASL

Enter & save

26
Define adjustment accounts for reconciliation posting:

Path: SPRO  controlling  cost element accounting  reconciliation ledger  define


adjustment accounts for reconciliation postings

Double click define accounts for automatic postings

From the menu select extras  select controlling area

Give your controlling area: AML

Enter

Select change account determination button

Save

Give the account No: 400150 (FI/CO reconciliation account)

Save & save in your request

Specify document no. range for reconciliation posting:

Same path: (T. code: OK13)

Give the controlling area: AML

Select change intervals button

Select interval button

Give the No. range: 01

From No: 1 to 100000

Enter & save

Creation of cost centre (path: KS01)

Give the cost centre: Dept X

Valid from: 01.04.2006 to31.12.9999

Reference cost centre: dept A

Controlling area: AML

27
Enter

Change the name to dept X

Description, cost centre dept X

Person responsible: X

Company code: change to ASL

Save (or) (ctrl + s)

Ignore the message, press enter

Posting of salaries in company code AML (F -02)

Document date: 01.11.2006

Type: SA Company code: AML

Posting key: 40 Account No: 400100 (Salaries)

Enter

Amount: 100000

Cost centre: Dept A

Text: salary payment

Posting key: 50

Account No: 200105 (SBI current account)

Enter

Amount: ‘*’

Business area: AMH

Text: ‘+’

Document  Simulate & save

28
Go and see the G/L account: (FS10N)

Give the G/L account No: 400100 (Salaries)

Company code: AML

Fiscal year: 2006

Execute

Select back arrow

Give the company code: ASL

Execute

Go and see the cost centre report (KSB1)

Cost centre: Dept A to Dept C

Execute

Select back arrow

Give the cost centre: Dept x

Execute

Reposts costs: (KB11N)

Give the cost centre old: (Dept A)

Cost element: 400100 (Salaries)

Amount: 20000

Cost center new (Dept x)

Save

Go and see the G/L Account: (FS10N)

Give the G/L account No: 400100 (salaries)

Company code: AML

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Fiscal year: 2006

Execute

Select back arrow

Give the company code: ASL

Execute

Go and see the cost centre report (KSB 1)

Cost centre: Dept A to Dept C

Execute

Select back arrow

Give the cost centre: Dept x

Execute

Reconciliation ledger run:

Path: accounting  Controlling  Cost element accounting  Actual postings 


Reconciliation with FI (T. code: KALC)

Select controlling area radio button

Give the controlling area: AML

Period: 8

Fiscal year: 2006

Deselect test run check box

Execute

Select reference document No: 1

Select back arrow

Select reference document No: 2

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Cross company code postings in FI
If outstanding expenses paid by ASL on behalf of AML – Entries

In AML - Outstanding expenses A/C Dr


To ASL

In ASL Books - AML Dr


To Bank

Use the transaction code: (F-02)

Give the document date: 01.11.2006

Type: SA

Company code: ASL

Posting key: 50

Account No: 200105 (SBI Current Account)

Enter

Give the amount: 5000

Business area: AMH

Text: Out standing expenses payment on behalf of AML

Posting key: 40

Account No: 100500 (Outstanding expenses)

New company code: AML

Enter

Amount: ‘*’

Business area: AMH

Text: ‘+’

Document  Simulates & Save (or) (ctrl + s)

31
Double click on 3rd line item

Give the business area: AMH

Text: ‘+’

Select next item button

Business area: AMH

Text: ‘+’

Save (or) (ctrl + s)

Select continue button

Accrual orders: (Inputed cost calculations)

- This is used for month and provisions in Co


- It generates only document in CO
- Cost element category – 03 – Accrual/deferred per surcharge
- For irregular expenditure we use this accrual orders
If the provision made only in year end in FI records.
For the last month the cost of the product is high. Hence provision is made in Co regards
for every month to reduce the product cost

In this scenario

1st Scenario

30/11/06 Bonus A/C Dr (Dept A)


To Outstanding A/C

01/12/06 Outstanding A/C Dr


To Bonus A/C

2nd Scenario (open item management)

30/11/06 Bonus A/C Dr (Dept A)


To Outstanding A/C
(Make entry every month)

3rd Scenario (Made provision for Bonus (in Co. Records)

Salaries A/C Dr 100000 (Dept A)


To 10% Bonus 10000

32
If bonus paid year ending

Bonus A/C Dr (Dummy A/C) 120000


To Outstanding expenses A/C 120000

Creation of G/L account of bonus fund (FS00)

Give the G/L account No: 400110

Company code: AML

Select with template button

Give the G/L account No;: 400100 (Salaries A/C)

Company code: AML

Enter

Change short text & G/L account long text: Bonus account

Save

Select edit cost element button

Give valid from date: 01.04.2006 to 31.12.9999

Enter

Cost element category: select 3 (Accrual/deferred per surcharge)

Save (or) (ctrl + s)

Creation of dummy cost centre: (KS01)

Give the cost centre name: Depart W

Valid from 01.04.2006 to 31.12.9999

Give the reference cost centre: Dept A

Controlling area: AML

Enter

33
Change the name to: Dept W

Change the description: Cost cost centre dept W

Save (or) (ctrl + s)

Ignore the message, press enter

Maintain overhead structure:

SPRO  controlling  cost element accounting  Accrual calculation percentage


method  maintain overhead structure (T. Code: KSAZ)

Select create overhead structure button (F7)

Overhead structure: AML1

Description: Bonus calculation for AML

Select save button

Give the Row 10: Base: AML 1

Enter

Give the name: Salaries

Select create button

Row 20: overhead rate: AML2

Enter

Give the name: Bonus

Dependency: select KRS1 (Controlling Area)

Select create button

Give from to: 10 to 10

Credit: AML

Enter

Select create button

34
Save

Ignore the message, press enter

Keep the cursor on overhead structure: on AML1

Select assignments button

Give the controlling area: AML

Select: Actual accrual radio button

Select continue button

Valid from: 01 2006 valid to 12 2006

Overhead structure: AML1

Save

Double click on overhead structure on AML

Keep the cursor on actual accrual

From menu select environment  Bases

Double click on AML1 (Salaries)

Give from cost element: 400100 (Salaries A/C)

Save

Select back arrow

Keep the cursor on actual accrual

From the menu select environment  Overhead rates

Double click on AML2 (Bonus)

Valid from: 01 2006 valid to 12 2006

Actual overhead rate: 10%

Save

35
Select back arrow

Keep the cursor on actual accrual

From the menu select environment  Credits

Double click on AML bonus

Company code: AML

Business area: AMH

Valid to 12 2006

Cost element: 400110

Cost centre: Dept W

Save

Assign Co. number range interval for the process (KAZI)

i.e. Actual cost centre accrual

Use the transaction code: KANK

Give the controlling area: AML

Select maintain groups button

Double click on KAZI

Select: Co document No. range interval for AML check box

From the menu select edit  Assign element group

Save

36
Salaries posting in cost centre in dept B (F – 02)

Give the document date: 03.11.2006

Type: SA

Company code: AML

Posting key: 40

Account No: 400100(Salaries A/C)

Enter

Give the amount: 100000

Cost centre: Dept B

Text: salaries posting

Posting key: 50

Account No: 200105 (SBI current A/C)

Enter

Amount: ‘*’

Business area: AMH

Text: ‘+’

Document  Simulate & save

Accrual calculation

Accounting  controlling  cost element accounting Actual postings  accrual


calculation (KSA3)

Select cost centre radio button

Give the cost centre: Dept B

Period: 8

Fiscal year: 2006

37
Deselect: test run check box

Select: Details list check box

Execute

Select next list level button

Go and see the cost centre report (KSB1)

Give the cost centre: Dept B

Execute

Select back arrow

Give the cost centre: Dept dummy

Execute

Bonus provision on 31.03.2007 (F -02)

Document date & posting date: 31.03.2007

Type: SA

Company code: AML

Posting key: 40

Account: 400110 (Bonus A/C)

Enter

Ignore the warning messages, press enter

Give the amount: 10000/-

Give the cost centre: dept dummy

Text: Bonus provision

Posting key: 50

Account No: 100500 (Outstanding expenses)

38
Enter

Amount: ‘*’

Business area: AMH

Text: ‘+’

Document  Simulate & save

Bonus in the cost centre report (KSB1)

Give the cost centre: Dept Dummy

Posting date: 01.04.2006 to 31.12.2007

Execute

Period and closing:

Service cost Production cost


Enter enter

While posting service cost, we don’t know to which production centre it is


applied. Only month ending transfer cost from one cot centre to other cost centers.

Method: 1: (Here we transfer primary cost as well as secondary cost)


- Receiving cost centre can not track the original cost elements
- Co. document No. range intervals  RKIU

Method: 2 (Distribution):

- Transfer only primary cost


- Receiving cost centre can track the original cost
element
- Sender should be only cost centre
- Co. document No. range interval – RKIV

Method: 3 (Periodic posting):

- Transfer only primary cost


- Receiving cost centre can track original cost element
- Sender can be any cost object  Cost centre/orders
- Co. document No. range intervals  RKIB

39
Method: 4 (Indirect actual allocation):

- Transfer quantities and values


- Co. document member range intervals  RKIL
Example:

Service dept: C

Salaries – 100000
Wages - 200000
Rent - 50000 Dept A: 90% (315000)
---------- Dept B: 10% (35000)
350000

Cycle: If allocation of cost elements are in different ways. We have to create No. of
segments of No. of cycles.

If service dept: Production Dept


Salaries – 100000 A B
Rent - 20000 75% 25%

Here we have 2 methods:

1. One cycle – No. of segments

XYZ
↓ ↓
Seg1 Seg2

2nd Method:

XYZ XYZ
↓ ↓
Seg1 Seg2

Here to better follow 1st method because of you can make any no. of segments
automatically.
In second method we can create up to 10 methods.

Statistically key figures: (S. K. F)

- Statistical figures are used to allocation of costs from one cost centre to other costs
centers.

40
Example: No. of employees, sq. meter area etc.
- It can be fixed or total
- If you select category fixed, the values are common till the year end, if we don’t change
in between – No. of employees.
- If we select category of total, the values are to be entered each month Ex: No. of
electrical units consumed, no. of telephone calls.
- Here it generates co document (Number ranges for the process (RKS – (Actual
statistical key figures)

Assessment:

Cost centre Production Production


Service Dept C Dept A Dept B

(Key Figure)

Salaries (No. of employees)


Rent (Percentage basis)

Creation of statistical key figure employee

Path: Accounting  Controlling  Cost centre accounting  master data  statistical


key figures  individual processing  create (KK01)

Give the statistical key figure: Emp

Enter

Give the name: Employee

Statistical figure unit measurement: Select PER (Persons)

Key figure category: select fixed values

Save

Assign Co No. range interval for the process of RKS (Use the Transaction code:
KANK)

Co. Area: AML

Select maintain groups’ button


Double click on the process RKS (Enter statistical figures)
Select Co. document No. range interval for AML check box
From the menu select edit  Assign element group

41
Save (or) (ctrl + s)
Enter statistical key figures:

Path: Accounting  controlling  cost centre accounting  actual postings 


statistical key figures  enter (KB31N)

Give the receiving cost centre: Dept A

Statistical key figure: Emp (Employee)

Give the total quantity: 75

Cost centre: Dept B

Statistical key figure: Emp

Total quantity: 25

Save

Note: enter the document date & posting date: 06.10.2006

Creation of secondary cost element

Path: Accounting  Controlling  Cost centre accounting  master data  cost


element  individual processing  create secondary (T. Code: KA06)

Give the cost element No: 1000000

Valid from: 01.04.2006 to 31.12.9999

Enter

Give the name: Assessment cost element

Description: Assessment cost element

Cost element category: select 42 (Assessment)

Save

42
Creation of assessment cycle

Path: Accounting  controlling  cost centre accounting  period end closing 


current settings  define assessment (S _ALR _ 87005742)

Double click on create actual assessment

The final T. Code is (KSU1)

Cycle: AML1

Start date: 01.04.2006

Enter

Text: Cost allocation using assessment

Select: interactive check box

Purpose of interactive check box:

Example:

Service dept C (Rs. 100000):

It allocated to Product A – 80% - 80000


Prod Dept B – 10% - 10000
Service Dept X – 10% - 10000
(Here it will become 0 (Zero)

Service Dept X:

200000
+ 10000 (From service dept C)
---------
210000
It allocated to Prod Dept H - 60% - 126000
Prod Dept I - 20% - 42000
Prod Dept C- 20% - 42000

42000/- allocated to service dept c will be again reallocate to various dept. up to it will
becomes zero (0)
If you select interactive check box it will allocate the costs up to zero
automatically.
Select save button (or) (ctrl + s)

43
Save in your request
Select attach segment button:

Give the segment name: segment 1

Name: salary allocation

Assessment cost element: select 1000000

Sender rule: selected posted amounts

Share in percentage: 100%

Select actual value origin radio button

Receiver rule: select variable portions

Variable portion type: select actual statistical key figures

Select senders/receivers tab

Sender cost centre: Dept X

Cost element: 400100 (salaries)

Receiver cost centre group: select AML prod

Select receiving tracing factor tab

Statistical key figure: Emp

Select receiver weighing factor tab

Save

Save in your request

Select attach segment button

Segment name: segment 2 (Rent allocation)

Assessment cost element: select 1000000

Sender rule: Posted amount

Sharing percentage: 1001

44
Select origin value radio button

Receiver rule: Fixed percentages

Select senders/receivers tab

Sender cost centre: Dept C

Cost element: 400300 (Rent)

Receiver cost centre group: AML Prod

Select receiver tracing factor tab

Statistical key figure: Dept A – 40%


Dept B – 60%

Save

Save in your request

Assign Co number range interval for the process (RKIU) (Use the transaction code
KANK)

Controlling area: AML

Select maintain groups button

Double click on RKIU (Actual overhead assessment)

Select Co. document number range intervals for AML check box

From the menu select edit  Assign element group

Save (or) (ctrl + s)

Go and see the cost centre report (KSB1)

Give the cost centre: Dept C

Give the period: 01.10.2006 to 31.10.2006

Execute

45
Assessment Run:

Path: Accounting  Controlling  cost centre accounting  period end – closing 


single functions  allocations  Assessment (KSU5)

Period: 7

Fiscal year: 2006

Deselect: Test run check box

Select the cycle: AML 1

Execute

Select receiver button

Go and see the cost centre report (KSB1)

Give the cost centre: Dept A

Posting date: 01.10.2006 to 31.10.2006

Execute

Internal orders:

Internal orders are used & decision making purpose

- To view costs for a specific task


- Vehicle wise costs/ - Based on petrol expenses & repair
and maintenance
- Telephone wise costs/exhibition costs/production order
costs
-Orders are of 2 types

1. Real orders
2. Statistical orders
1. Real orders: 2. Statistical orders:

- Settlement possible - Not possible


- Settlement possible in cost centre, - Only for information/decision making
G/L Account & Asset

- Settlement to cost centre – Internal settlement (With in Co)

46
- Settlement to G/L account – External settlement
STATISTICAL ORDERS:

Example: Telephone orders:

FI posting  G/L account no – 100000

Cost centre administration – 100000


Order  Telephone – 100000
(We did not allocate the total amount to cost centre. Only 100000 is allocated
because one is real and another is statistical)

a) When we post to 2 cost objects only. One object will be real and others will be
statistical.
b) At the time of creation of order, there is a check box for statistical order.

Order Cost centre


a) Select statistical order check box Statistical Real

b) Deselect statistical order check box Real Statistical

In the month ending cost centers cost will be apportioned to product.

i. Real Orders:

Vehicle orders: (Allocation from order to cost centre)

Order – Red

FI posting – G/L Account


Petrol expenses
Order – Vehicle No: 1234
Settlement: It allocated to Dept A, Dept B & Dept C.

(Allocation may be percentage/ratio/amount basis)

ii. Statistical order (allocation from cost centre to cost centers)

FI posting  G/L account


- Cost centre: Administration (Red)
- Order vehicle – 1234 statistical
- Cost centre admin: Dept A, Dept B & Dept C
(Assessment)

47
1st Scenario (Statistical orders)

Define order type:

SPRO  Controlling  Internal orders  order master data  define order types (T.
Code: K0T2 _ FUNCAREA)

Select new entries button

Order category: 01 (Internal order (Controlling))

Enter

Give the order type: AMLT

Description: Telephone orders for AML

Planning profile: 000001 (General budget/plan profile)

Object class: Select overhead costs

Select release immediately check box

Save

It gives the message No. range not processed

Ignore the message, press enter

Save in your request

Select Assign/change intervals button beside No. range intervals

Double click on AMLT

Select Motor pool A – ZZZZZZZZZZZZ (External check box)

From the menu select edit  Assign element group

Save (or) (ctrl + s)

48
Creation of field status group making cost centre and internal order mandatory:
(T. code: OBC4)

Select field status variant (AML)

Double click on field status groups folder

Select G004 cost Accounts

Select copy as button

Change the field status group to G002

Change text to: Cost Accounts (CC & IO) required

CC. cost centre & IO (Internal order)

Enter & Save

Save in your request

Select G002 and double click

Double click on additional account assignments

Select CO/PP order: required entry field

Save

Creation of G/L Account – Telephone expenses: (FS00)

Give the G/L Account No: 400305

Company code: AML

Select with template button

Give the G/L Account No: 400300 (Rent A/C)

Company code: AML

Enter

Change the short text & long text to telephone expenses

49
Select create/bank/interest tab
Change the field status group to: G002

Save

Select edit cost element button

Valid from 01.04.2006 to 31.12.9999

Enter

Cost element category: 1

Save

Creation of Internal order:

Path: Accounting  Controlling  Internal orders  master data  Special functions


 order  Create (KO01)

Give the order type: AMLT

Enter

Order: TEL 66626246 (Telephone No)

Short text: Telephone No: 66626246

Company code: AML

Business area: AMH

Select control data tab

Select statistical order check box

Save

One more order type: AMLT

Enter
Give the order: TEL 66626247
Company code: AML
Business area: AMH
Select control data tab
Select statistical order check box

50
Save
Creation of order group:

Path: Accounting  Controlling  Internal orders  Master data  Order group 


create (KOH1)

Give the order group name: AML HYD TEL

Enter

Give the description: Hyderabad Telephones for AML

Select insert order button

Select: TEL 66626246 & TEL 66626247

Save

Posting of transaction in FI: (F – 02)

Give the document date: 13.11.2006

Type: SA

Company code: AML

Posting key: 40

Account No: 400305 (Telephone expenses)

Enter

Give the amount: 25000

Select cost centre: Dept A

Give the order No: TEL 66626246

Text telephone expenses

Posting key: 50
Account No: 200105 (SBI Current Account)
Enter
Amount: ‘*’
Business area: AMH
Text: ‘+’

51
Document  Simulate & Save
To view order wise report:

Accounting  Controlling  Internal orders  information system  Reports for


Internal orders  line items  Orders: Actual time items (KOB1)

Give the order No: TEL 66626246

Execute

Select the line items

Select document button

Planning order wise:

Accounting  Controlling  Internal orders  Planning  Cost and activity inputs 


Change (KPF6)

Give the version: 0

From period: 8

To period: 8

Fiscal year: 2006

Order: TEL 66626246

Cost element: 400305 (Telephone expenses)

Select from based radio button

Select overview screen button

Total plan cost: Enter20000

Save (or) (Ctrl + s)

52
To variance report order wise:

Path: Accounting  Controlling  Internal orders  Information systems  Reports


for internal orders  Plan/actual comparisons  orders: Actual/plan/variance
(S _ ALR _ 87012993)

Give the controlling area: AML

Fiscal year: 2006

From period: 8

To period: 8

Plan version: 0

Give the order value: TEL 66626246

Execute

Real orders:

Creation of secondary cost element called settlement cost element (T. Code: KA06)

Give the cost element: 1000001

Valid from: 01.04.2006 to 31.12.9999

Enter

Give the name: Settlement cost element

Give the description: settlement cost element

Cost element category: select 21 (Internal Settlement)

Save

53
Creation of field status group making order required

Use the transaction code: OBC4

Select field status variant: AML

Double click on field status groups button

Select G002 (Cost Account CC & IO required)

Select copy as button

Change the field status group to: G010

Change the text: cost accounts IO required

Enter & Save

Save in your request

Select G010 and double click

Double click on additional account assignments

Cost centre: make it optional entry

Save

Creation of G/L Account: Petrol expenses (FS00)

Give the G/L Account No: 400306

Company code: AML

Select with template button


Give the G/L Account No: 400300
Company code: AML
Enter
Change short text & Long text to: Petrol expenses
Select: Create/bank/interest tab
Field status group: Select G010
Save
Select edit cost element button
Enter
Cost element category: 1

54
Save
Maintain allocation structures:

Path: SPRO  Controlling  Internal orders  Actual postings  settlement 


Maintain allocation structures.

Select new entries button

Allocation structure: A5

Text: Co allocation structure for AML

Save, save in your request

Select: A5

Double click on assignments folder

Select: New entries button

Give the assignment: AML

Text: Vehicle order settlement

Save

Select: AML

Double click on source folder

From cost element: 400306

Save

Double click on settlement cost elements folder

Select new entries button

Receiver new entries button

Receiver category: Select CTR (Cost centre)

Settlement cost element: Select 1000001

Save

55
Maintain settlement profiles:

Same path

Double click on maintain settlement profiles

Select: New entries button

Give the settlement profile name: AML

Description: settlement profile for AML

Select: To be settled in full radio button

Allocation structure: A5

Default object type: CTR (Cost centre)

Select: % settlement check box

Select: equalance No. check box

Select: Amount settlement check box

Under valid receivers

For cost centre: Select settlement required

Max No. of dist trials: 999

Residence time: 12

Save & Save in your request

Maintain number ranges for settlement documents

Same path: (T. Code: SNUM)

Select maintain groups’ button

Double click on AML

Select standard accounting document check box

From the menu select edit  Assign element group

56
Save (or) (ctrl + s)
Define order type: (T. code: KOT2 _ FUNCAREA)

Select new entries button

Order category: select 01 (Internal order controlling)

Enter

Give the order type: AMLV (Vehicle order type for AML)

Settlement profile: Select AML

Budget profile: 000001 (General budget profile)

Object class: Select over head costs

Select release immediately check box

Save (or) (ctrl + s)

It gives the message No. range not processed

Ignore the message, press enter

Save in your request

Select Assign/change intervals button

Double click on AMLV

Select Motor pool A – ZZZZZZZZZZZZ check box

From the menu select edit  Assign element group

Save (or) (ctrl + s)

Assign Co. number range interval for the process KOAO (Actual settlement)

Use the T. Code: KANK)

Give the controlling area: AML


Select maintain groups button
Double click on KOAO (Actual settlement)
Select Co. document No. range intervals for AML check box
From the menu select edit  Assign element group

57
Save
Creation of vehicle order: (T. Code KOO1)

Give the order type: AMLV

Enter

Give the order: AP9A1234

Short text: Vehicle No: AP9A1234

Give the company code: AML

Business area: AMH

Select control data tab

Deselect statistical order check box

Select settlement rule button

Category: Select CTR (Cost centre)

Settlement receiver: Dept A – Percentage: 70%

Category: CTR (Cost centre)

Settlement receiver: Dept B – Percentage: 30%

Save

Ignore the warning message, press enter

Posting of transaction in FI (F – 02)

Give the document date: 15.11.2006

Type: SA

Company code: AML

Posting key: 40

Give the G/L Account No: 400306 (Petrol expenses)

Enter

58
Give the amount: 100000

Give the order: AP9A1234

Text: Petrol expenses

Posting key: 50

Account No: 200105 (SBI current account)

Enter

Amount: ‘*’

Business area: AMH

Text: ‘+’

Document  Simulate & Save

Settlement of internal order to cost centers:

Path: Accounting  Controlling  Internal orders  period end closing  Single


functions  Settlement  Individual processing (K088)

Give the order No: AP9A1234

Settlement period: 8

Fiscal year: 2006

Deselect test run check box

Select check transaction data check box

Execute

Select details list button

59
Budgeting and availability control

SAP given 2 types of Budget

Plan Budget
1. Plan period wise 1. Budget for year wise

2. We can plan each element 2. Budget for the whole order


wise
3. Micro level 3. Macro level
4. Called availability control

When you posting actual

1. If the budget cross more than 90% of budget

a. It gives warning message (or)


b. It gives warning message and inform to budget lead (or)
c. Give error message

Number range interval: 04 (Hot coded)


Number range is at client level (Client wise)

Define number range intervals for budgeting

SPRO  Controlling  Internal orders  Budgeting & Availability control  Maintain


No. ranges for budgeting (T. Code: OK11)

Select change intervals button

Select intervals button: No: 04

From: 4000000000 to 4999999999

Enter

Define tolerance limits for availability control

Same path

Select new entries button

Give the controlling area: AML

60
Profile: 000001 (General budget profile)

Transaction group: Select ++ (All activity groups)

Action: select 2 (warning with maid to person responsible)

Give the usage: 90%

Save (or) (ctrl + s)

Save in your request

Specify exempt cost element from availability control

(Exempted cost elements from budget)

Same path:

Select new entries button

Give the controlling area: AML

Give the C/C No: 400100 (Salaries A/C)

Save in your request

Maintain budget manager

Same path:

Select new entries button

Give the controlling area: AML

Order type: AMLV

Object class: Select OCOST (over head)

Give the user ID: SAPUSER

Save (or) (ctrl + s)

Save in your request

61
Budgeting:

Accounting  Controlling  Internal orders  Budgeting  Original budget 


Change (KO22)

Give the order No: AP9A1234

Select original budget button

Give the budget amount: 200000

Enter

From the menu select extras  Availability control  Activate

Save

Posting of Transaction in FI (F – 02)

Give the document date: 15.11.2006

Type: SA

Company code: AML

Posting key: 40

Give the A/C No: 400306 (petrol expenses)

Enter

Give the amount: 90000

Give the order No: AP9A1234

Text: Petrol expenses

Posting key: 50
Account No: 200105
Enter
Amount: ‘*’
Business area: AMH
Text: ‘+’
Document  Simulate & Save

62
Ignore the message, press enter
To view the inbox of the budget head

SAP menu  Office  Work place (T. code SBWP)

Select inbox folder

Double click on the message

It gives the message

Capital work in progress line item settlement CWIP _ M/L

Freight charges
Installation charges

Define settlement profile

SPRO  Financial accounting  Asset accounting  Transactions  Capitalization of


assets under construction  define/assign settlement profile

Double click on define settlement profile

The transaction code is (OK07)

Select settlement profile A1 (settlement assets under construction)

Select details button

Select to be settled in full radio button

Allocation stock: A1 Co. allocation structure

Default object type asset type: FXA

Select percentage settlement check box

Select equalance No’s check box

Select amount settlement ‘check box’

Under valued receivers for fixed assets

Select settlement required

Document type: AA

63
Max No. of distribution rules: 999

Residence time: 12

Save

Select back arrow 2 times

Double click of assign settlement profile to company code

Select for company code: AML assign settlement profile A1

Enter & Save

Save in your request

Creation of capital work in progress (Asset master) (T. Code: AS01)

Give asset class: AML 4000 (Capital work in progress)

Company code: AML

Enter

Description: C. W. P general

Capitalization: 15.06.2006

Select time dependant tab

Business area: AMH

Select depreciation area tab

Dep. Key: 0000

Save

64
Machinery purchase postings: (T. Code (F – 90)

Give document date: 01.08.2006

Posting date: 01.08.2006

Type: KR

Company code: AML

Posting key: 31

Vendor No: 8700001

Enter

Ignore the warning message, press enter

Give the amount: 200000

Business area: AMH

Text: Machinery purchase posting

Posting key: 70

Account No: 500000 – 0

Transaction type: 100

Enter

Remove TDS codes

Enter

Amount: ‘*’

Text: ‘+’

Document  Simulate & save

65
Fright payment: (F -02)

Document date: 10.09.2006

Posting date: 10.09.2006

Type: SA

Company code: AML

Posting key: 70

Account: 500001 – 0

Transaction type: 100

Enter

Ignore the warning message, press enter

Give amount: 25000

Text: Fright payment

Posting key: 50

A/C No: 200105 (SBI Current A/C)

Enter

Amount: ‘*’

Business area: AMH

Text: ‘+’

Document  Simulate & save

66
Creation of machinery asset master (AS01)

Give asset class: AML 2000(Dept A)

Company code: AML

Enter

Give description: Machine No: 40

Capitalized on: 14.11.2006

Select time depended tab

Business area: AMH

Select description area tab

Give description key: AML1

Useful life: 20 years

Period: 4

Ordinary depreciation start: 17.11.2006

Save

Settlement of capital work in progress to Asset

Path: Accounting  Financial accounting  Fixed assets  Capitalized asset under


construction  Distribute (T. Code: AIAB)

Give company code: AML

Asset: 500001

Sub no: 0  Execute

From the menu select edit  Select  Select all

Select enter button

Category select: FXA Asset

67
Settlement receiver: 200004 – 0

Give percentage: 100

Select back arrow

Save

Select settlement button

Give the asset value dated: 17.11.2006

Text: asset settlement

Deselect test run check box

Execute

Go and see the document FB03

Enter

Profit Centre Accounting

- To view profitability product group wise/product wise/location wise/


If business area is not used in FI

1) One location – No. of product groups

Hyderabad
| | |
Cement Steels Pharma

In that case you can get profitability.

2) Each location different product group

Hyderabad Bangalore Mumbai


↓ ↓ ↓
Cement Steel Pharma

Profitability as well as balance sheet

The advantage of profit centre will be derived through derivation rules.

Example: expenditure – Through cost centers

68
Revenues – Automatic account assignment

In case of balance sheet items through business area

We have to create a dummy profit centre

- Transfer to respective profit centre


- We create derivation rules. Future transaction will not
go to dummy profit centre.
Set controlling area:

SPRO  Controlling  Profit centre accounting  Basic settings  Set Controlling


area

Give controlling area: AML

Enter

Maintain controlling area settings:

SPRO  Controlling  Profit centre accounting  Basic settings  controlling area


settings  maintain controlling area settings (T. code: OKE5)

Standard hierarchy: AML

Select elimination of internal business volume check box

Profit centre local currency type

Select 20 (i.e. controlling area currency)

Select confirm button

Select store transactions currency check box

Save

Creation of dummy profit centre:

Path: SPRO  controlling  Profit centre accounting  Master data  Profit centre 
create dummy profit centre (T. code: KE59)

Double click on create dummy profit centre

Give dummy profit centre: AML dummy

69
Select basic data button

Give the name: AML dummy

Description: Dummy profit centre for AML

Profit centre group: AML

Save

Set control parameters for actual data

Path: SPRO  Controlling  Profit centre accounting  Basic settings  controlling


area settings  Activate direct postings  set control parameters for Actual data
(T. Code: 1KEE)

Select new entries button

From year: 2006

Select line item check box

Select on line transfer check box

Save

Maintain plan versions

Path: SPRO  Controlling  Profit centre accounting  basic settings  controlling


area settings  activate direct postings  plan versions  maintain plan versions

Select version: 0

Double click on settings for profit centre A/C folder

Select new entries button

Year: 2006

Select on line transfer check box

Select line item check box

ER (Exchange rate): Type: B (Bank setting)

Select save button

70
Save in your request
Define number ranges for local documents

Path: SPRO  Controlling  Profit centre accounting  actual postings  Basic


setting actual  define number ranges for local documents (T. Code GB02)

Select maintain groups button

Select actual document from direct posting with GB01 check box

From the menu select intervals maintain

Give your company code: AML

Enter

Select interval button

Year: 2006

From No: 1 to 100000

Enter & Save

Select back arrow

Select planned document from direct posting with GB01 check box

From menu select interval maintain

Give your company code: AML

Enter

Select interval button

Year: 2006

From: 100001 to 200000

Enter & Save

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Creation profit centre:

Path: Accounting  Controlling  Profit centre accounting  Master data  profit


centre  individual processing  create KE51

Give the profit centre: Cement

Select master data button

Analysis period 01.04.2006 to 31.12.9999

Give the name: Cement

Long text: Profit centre cement

Person response: A

Profit centre group: AML

Select activate button

Profit centre: STEEL

Select master data button

Name: Steel

Long text: profit centre steel

Person response: B

Profit centre group: AML

Select activate button

Assign profit centre in cost centre

Accounting  Controlling  Cost centre accounting  Master data  cost centre 


Individual processing  change (T. code: KS02)

Give the cost centre: Dept A

Enter

Assign the profit centre: Cement

72
Select save button

Ignore the warning message, press enter

Cost centre: Dept B

Enter

Give profit centre: Steel

Select save button

Ignore the warning message, press enter

Creation of revenue element – (FS00)

G/L account No: 300000 (Sales account0

Company code: AML

Enter

Select edit cost element button

Enter

Cost element category: Select 11 (Revenues)

Save

Maintain automatic account assignment of revenue elements

Path: SPRO  Controlling  Profit centre accounting Actual postings  Maintain


automatic assignment of revenue elements (T. Code: OKB9)

Select new entries button

Give the company code: AML

Cost element: 300000

Account assignment detail

Select business area is mandatory


Save, Save in your request

73
Select AML and then double click on detail per business area/select new entries button
(1)
Hyderabad
| | |
Cement Steel Pharma

300000 – Sales cement


Hyd  Cement

300001 – Sales steels


Hyd  Steels

300002 – Sales Pharma


Hyd  Pharma

(2) Hyderabad Bangalore Mumbai


↓ ↓ ↓
Cement Steel Pharma

300000 – Sales

Hyderabad - cement
Bangalore – Steel
Mumbai – Pharma

Give the business area: AMH

Give the profit centre: Cement

Give the business area: AMB

Give the profit centre: Steel

Save

Choose additional balance sheet & Profit & Loss A/C

It is applicable only second scenario

Path: Same path

Select choose accounts

Transaction code: 3KEH

Select new entries button

74
Account from: 100000 to 299999

Default profit centre: Cement

Save & Save in your request

Select profit centre detail button

Select create step button

Give the step description: Profit centre derivation for item through Business area

Under define name: GSBER (Business area)

Save

Select maintain rule values button

Select source field interval on/off button

Note down A/C No: 100000 to A/C No: 299999

Business area: AMH

Give the up due profit centre: Cement

From A/C: 100000 to A/c: 299999

Business area: AMB

Profit centre: Steel

Creation of Accounts group

Path: Accounting  Controlling  Profit centre accounting  Master data  Account


group  Create (T. Code KDH1)

Give the account group: PL items

Enter
Profit & Loss account for AML
Select insert accounts button
Give account 300000 – 499999

Save

75
Select back arrow

Next A/C group: BS items

Enter

Give the description: Balance sheet account for AML

Select insert account button

Give the range 100000 to 299999

Save

Planning profit centre wise for P&L items

Path: Accounting  Controlling  Profit centre Accounting  planning 


Cost/revenues  Change (T. Code 7KE1)

Version: 0

From period: 8 to period: 8

Fiscal year: 2006

Company code: AML

Profit centre: Cement

Account group: PL items

Select from based radio button

Select overview screen button

For A/C No: 300000(Sales)

Profit centre reporting currency: 500000

For A/C No: 400100 (salaries)

Profit centre reporting currency: 400000

Save

76
Planning for Balance sheet Accounts profit centre wise

Path: Accounting  Controlling  Profit centre accounting  Planning  Balance


sheets accounts  change (T. code: 7KE3)

Version: 0

From period: 8 to period: 8

Fiscal year: 2006

Company code: AML

Profit centre: Cement

A/C group: BS items

Select from based radio button

Select overview screen button

For A/C No: 100300 (SBI rupee term loan)

Plan: 100000

For account No: 200105

Plan: 100000

Save

Credit sales posting in FI (F – 22)

Give document date: 20.11.2006

Type: DR

Company code: AML

Posting key: 01

Account No: 6200001

Enter

77
Give the amount: 450000

Business area: AMH

Text: Credit sales postings

Posting key: 50

Account No: 300000(Sales A/C)

Enter

Amount: ‘*’

Business area: AMH

Text: ‘+’

Document  Simulate

Ignore the warning message, press enter

Save (or) ctrl+s

Expenditure posting (F – 02)

Document date: 20.11.2006

Document type: SA

Posting key: 40

Account No: 400100 (salaries A/C)


Enter
Give amount: 425000
Cost centre: Dept A

Text: Salary payment

Posting key: 50
Account No: 200105 (SBI Current account)
Enter
Amount: ‘*’
Business area: AMH
Text: ‘+’
Document  Simulate & save

78
To view various reports profit centre wise for P&L items

Path: Accounting  Controlling  Profit centre accounting  Information system 


Reports for profit centre accounting  Interactive reporting  Profit centre group 
plan/actual/variance

Transaction code: S _ ALR _ 87013326

From period: 8 to period: 8

Fiscal year: 2006

Plan version: 0

Profit centre values: Cement

Profit & Loss account group: PL items

Execute

To view variance report profit centre wise for Balance sheet accounts

Path: Same path

Transaction code: S _ ALR _ 87013336

From period: 8 to period: 8

Fiscal year: 2006

Plan version: 0

Profit centre values: Cement

Balance sheet account group: BS items

Execute

79
Transfer values from one profit centre to another profit centre

Path: Accounting  Controlling  Profit centre accounting  Actual posting  Profit


centre document  enter (T. Code: 9KE0)

Select layout: 8A – 001

Execute

Give the company code: AML

Select entry screen button

Give profit centre: Cement

Account No: 400100 (salaries A/C)

In profit centre local currency: 200000

Save

80
Integration
Organization structure
Company

In SD: combination of sales organization, distribution channel & division they call at as
one sales area.

Movement types: Posting keys in FI

101  Material receipt against purchase order/production


102  Reversal of 101
201  Issue to cost centre (stores of all departments)
202  Reversal of 201
261  Issue to orders (Raw material shows)
262  Reversal of 261
521  Material receipt with out production order
522  Reversal of 521
561  Opening stock taking

81
562  Reversal of 561
601  Delivery
602  Reversal of 601
Process key (Transaction key)

These are system defined keys


1) BSX  Inventory postings
2) WRX  GR/IR clearing (G.R – Goods receipts)
(I.R – Invoice receipts)
3) PRD  Price difference/production order differences
4) GBB  Offsetting entry for inventory posting
a) VBR – consumption
b) VNG – Scrapping
c) BSA – Opening stocks taking
d) SUF – Production receipt against production order
e) ZOF – Production receipt with out production order
f) VAY – Delivery where sales account is a revenue element
g) VAY - Delivery where sales account is not a revenue account
h) AUA – Production order differences

GBBVBR – Raw material consumption A/C Dr


BSX - To Inventors raw material local A/C

Valuation class:

- Valuation class determines the G/L accounts to be posted automatically.


a) Raw material: 4 valuation classes
– Local
- Imported
- Inter unit
- Inter company
b) Stores: 2 valuation classes
- Local
- Imported

b) Finished goods: 1 valuation class -Own goods

82
Valuation grouping code/valuation modification key/ valuation modifier

Chart of Accounts: AML

AML ASL ALL

Hyd Bangalore Bangalore Mumbai


Hyd Bangalore Mumbai

Rm2 Rm3 Rm4 Rm1 Rm2 Rm3


Rm1

Valuation area Chart of accounts Company Code Valuation group


(plant) code

Hyderabad AML AML X


Bangalore AML AML X
Bangalore AML AML X

Advantage is we need not create valuation group code each company code wise.

Material types Price control Purchase price

1. Raw material – ROH - V – Moving average price - Available


2. Stores & Spares – FRSA - V - Moving average price - Available
3. Packing material – VERP - V - Moving average price - Available
4. Finished goods – FERT - S – Standard price - Raw material + overheads

5. Semi finished goods:


Purchased – HALB - V – Moving average price - Available
Produces – HALB - S – Standard price - Raw material + overheads

6. Traded goods – HAWA - V – Moving average price

7. Services – DIEN

83
Material types – similar to account groups in G/L

In M.M we create material mater

- Material master is to be created under material type


- Material master to be created at plant level
- When no. of plants are using same material it will be
extended to other plants
- Material periods we can open 2 periods at a time
- In G/L it is called as tabs, where as in MM it is called

No. of views like:

- Basic data
- Purchase data
- Sales data
- MRP data
- MRP data
- Ware house
- Quality
- Accounting
- Costing

Why systems support inventory account, not purchase account:

Purchase order

Price – 10
Qty – 5
Taxes 8% Cenvat
4% VAT
Other expenses  2%

In normal accounting system

RM 1 If other expenses not taken

Opening stock 0
Add: Purchases 63
-------
63
Less: Closing stock 10

84
------
Consumption X_

If invoice is not taken (Only Delivery challan copy is taken)

Opening stock 0
Purchases 0
-----
0
Closing stock 20
------
Consumption _X_

In SAP

Opening stock - 0
Purchases 5 -63
Consumption 3 – 37
------
Closing stock 2 – 26
(Here the price of the goods is taken from purchase order).
MM flow (Material management flow)

1. Material requisition: Production dept to stores – called internals

If the material not available, stores department raised.

2. Purchase requisition – stores to purchase dept

3. Purchase dept call for enquiry, quotations & price comparisons

4. Raising the purchase order by purchase dept


Purchase order contains  Vendor, Material, plant, quality, rate, delivery terms
and payment terms

5. Release procedure – Work flow


Up to 10000  Manager Purchases

6. Goods receipt  (G.R)


G.R should be against purchase

Inventory Raw material local Dr – Balance sheet current asset – BSX


To GR/IR clearing raw material local – Balance sheet current Liabilities – WRX

7. Invoice verification  Verification against GR (or)/Purchase orders

85
GR/IR clearing Raw material Dr – Balance current Liabilities – WRX
To party – Sundry creditors – Balance sheet current liabilities – Feam po

8. Consumption:

Raw material consumption local Dr – P&L debit – GBBVBR


To Inventory raw material local – B/S current assets - BSX

9. Wages payment:

Wages A/C Dr
To Bank A/C

10. Production receipt:

Inventory finished goods (At product cost) Dr – Balance sheet current assets – BSX
Increase/decreased stock finished goods – P/L A/C credit – GBBAUF (Production order)
GBBZOF (NO production order)

11. Delivery:

Increase/decrease in stock finished goods – P&L credit: GBBVAY – sales (At product)
GBBVAX – Sales not revenue account
To Inventory finished goods – Balance sheet current asset – BSX

12. Sales billing:

Customer A/C Dr – Sundry debtors – Balance sheet current Asset – From sale order
To sales – P&L A/C credit – ERL

Profit & Loss A/c

(10) Increase/decrease
(8) Raw material 10 in finished goods 11
consumption 0 0
(11) Increase/decrease
(9) Wages 10 in finished goods 0
11
Surplus in Profit & Loss 40 (12) Sales 0 150

15 150

86
0

Balance Sheet

(6) GR/IR 100 (6) Inventory Raw


material 100
(7) GR/IR 100 0
(8) Inventory Raw
(7) Sundry Creditors 10 material 100 0
0
Surplus in P&L A/C (9) Bank -10
40 (10) Inventory finished 110
goods
110 0
11) Inventory finished
goods
(12) Sundry debtors 150

14 140
0

Integration is based on 3 rules:

1. In material master we specially valuation class


2. For valuation class we assign G/L accounts based on the nature of
transaction.
3. Stores person when he received (or) issues material he will enter
movement type, material number and quantity. Accounts will be
updated automatically based on account assignment to valuation class
which is specified in material master.

Material Valuation Inventory GR/IR Consumption


No class Postings clearing GBRVBR
(BSX) (WBX)
RM1 3000 RM 200121 150000 400000 (Raw material
local (Inventory (GR/IR consumption)
R.M. clearing RM
local) local
RM2 3001 RM 200122 150001 400001 (Imp. Material
Imported (Inv. RM (GR/IR consumption)
imported) clearing RM
87
Imported)
Example:

Po1 Po1

Move type 101 Raw material 1

Material No  RM1 Qty: 100

Qty: 20 Kgs Rate – 5

Save Vendor – 1234

Movement type 101 – Debit BSX – 200121 Inventory raw materials – Qty in GRX
Rate as per PO = 100
Credit WRX – 150000  GR/IR clearing.

1st rule:

In material master we specify valuation class:

Here RM1 & RM2 (Material master) is specify the valuation


Class 3000 RM local & 3001 RM imported respectively.
(2) For valuation class we assign G/L accounts based on the nature of transaction.

Here valuation class (3000 RM local & 3001 RM Imported)


Assign G/L accounts Inv. Postings (BSX) ( 200121 – Inventory raw material local, 20012
– Inv. Raw material imported), GR/IR clearing. WRX (150000 – GR/IR clearing),
150001 (GR/IR clearing raw material imported)

88
Price differences

Batch Moving average

Stocks fully available Stocks partly available Stocks not available

Batch mode:

Batch: Qty Rate Amount

1 - 100 10 1000
2 - 200 40 8000
------- --------
300 9000
1 - 10 10 100
-------
8900
+ 180
--------
9080
--------

Receipt:

a) Inv. Raw material local A/C Dr 1000 – BSX


To GR/IR clearing raw material local 1000 – WRX
Consumption:

b) Raw material consumption local Dr 100 – GBBVBR


To Raw material local 100 – BSX

Price difference: Inv. Verification


GR/IR clearing raw material 1000
Inv. Raw material local 200
To party 1200

89
Moving average:

Stock partly available

Qty Rate Amount

100 10 1000
200 40 8000
----- ----- --------
300 30 9000
Consumption 280 30 8400
----- --------
20 600
Price difference 40
----- -------
20 640
------ --------
a) Receipt:

Inv. Raw material local Dr 1000 – BSX


To GR/IR clearing raw material 1000 – WRX

b) Consumption:

Raw material consumption local Dr 8400 – GBBVBR


To Inv. Raw material 8400 – BSX

c) Inv. Verification:

GR/IR clearing raw material local 1000 – WRX


Price difference raw material 160 – Prd
Inv. Raw material 40 (20*2) – BSX
To party 1200 (from P.O)

The difference between batch method and moving average method


In batch method it checks with material No and Batch Number only.

Moving average - Stocks not available


Qty Rate Amount
100 10 1000
200 40 8000
------ ---- --------
300 30 9000
Consumption 300 30 9000

a) Receipt:

90
Inv. Raw material load Dr 1000 – BSX
To GR/IR clearing raw material 1000 – WRX

b) Consumption:

Raw material consumption local Dr 9000 – GBBVBR


To Inv. Raw material 9000 – BSX

c) Inv. Verification:

GR/IR clearing raw material 1000 – WRX


Price difference raw material 2000 – PRD
To party

SD to FI
1. Enquiry and quotation
2. Sale order: Material, qty, plant, sales organization, rate, delivery terms,
payment.
3. delivery:
With out post goods issue (With out PGI) – No transfer of ownership
With post goods issue (With PGI) – Transfer of ownership

FOB(Free on Board):

Example:

Plant Port Customer


↓ ↓
Hyd Chennai

Delivery without PGI Delivery with PGI

Only material Material document


No FI document FI document

Inv/Dec in stock finished goods – Dr  GBBVAY (Sales revenue element)


 GBBVAX (Sales not revenue element)
To Inventory finished goods – BSX

a) Billing: Billing should be with reference to delivery

91
Billing: In SD module there is a pricing procedure

Procedure:

i) From region – Andhra Pradesh


To region - Andhra Pradesh
Customer - Taxable
Material - Tax

Billing

Basic XXX
Excise XXX
VAT XXX
--------
Bill amount XXX

ii) From Region – Andhra Pradesh


To Region – Andhra Pradesh
Customer – Non taxable
Material – Non taxable

Here in this case the buyer is purchasing in local state and same is exported – under
Form H

Billing is

Basic XXX
--------
Bill amount XXX

iii) From region – Andhra Pradesh


To Region – Andhra Pradesh
Customer – Taxable
Material – Taxable

Billing is

Basic XXX
Excise XXX
CST XXX
--------
Bill amount XXX_

iv) From Region – Andhra Pradesh


To Region – India

92
Customer – Non taxable
Material – Non taxable

Billing

Basic XXX
--------
Bill amount XXX

Condition type: KOFI

Assignment of Accounts:

(1) (2) (3) (4) (5) (6) (7) (8)


Application Condition Chart of Sales Account Account Accounts G/L
area type accounts org assignment assets key accounts
group for group
customer for
materials
V – Sales KOFI AML 03 300001-
& Hyd 01 ERL Sales
distribution local
own
goods
V KOFI AML Hyd 01 01 ERL 300002
– Sales
local
taxed
goods
V KOFI AML Hyd 01 03 ERF 400320

Freight
local
own
good
V KOFI AML Hyd 01 ERF 400321
01 –
Freight
local
traded

93
goods

(5) Account assignment group for Customer

01 – Domestic revenues
02 – Foreign revenues
03 – Affiliated company revenue
(6) Account asset group for material

01 – Trade goods
02 – Services
03 – Finished goods
(7) Accounts key:
ERL – Sales revenue
ERF – Freight revenue
ERB – Rebate (Trade discount)
ERS – Sales deduction (Commissions)
MM – Integration step
1. Define plant

Path: SPRO  Enterprises structure  definition  logistics  general  define,


copy, delete, check plant

Double click on define plant

Select new entries button

Give plant: AMLP

Assign factory calendar: A2 (AML Hyderabad factory calendar)

Save

Give the name: AML Hyderabad factory plant

Give the country: IN (India)

Enter

Select create request button

Give the short description: MM Customization for AML

Enter

94
Press enter to save in your request

Define copy, delete, check division:

Path: same path

Select define, copy, delete, check division

Double click on define division

Select new entries button

Division A1  Name: Cement division

Save

Save in your request


Maintain storage location:

Path: SPRO  enterprises structure  Definition  Materials management 


Maintain storage location

Give the plant: AMLP

Enter

Select new entries button

Give the storage location: Hyd

Give the description: Hyderabad storage location

Save

Save in your request

Maintain purchasing organization:

Path: same path

Select new entries button

Give the purchase organization: AMLR: Raw Material of purchase order

Save

95
Save in your request

Assign plant to company code:

Path: SPRO  enterprises structure  assignment  Logistics  general  assign


plant to company code

Select find button

Give company code: AML

Enter

Select: AML

Select assign button

Select: AMLP check box

Enter

Save (or) (ctrl + s)

Save in your request

Assign business area to plant/valuation area and division:

Path: same path

Select plant/valuation area – Division button

Select new entries button

Plant: AMLP

Division: A1

Give the business area: AMH

Select save (or) (ctrl + s)

Save in your request

Assign purchasing organization to company code:

96
SPRO  enterprises structure  assignment  materials management  assign
purchasing organization to company code

Select find button

Give the company code: AML

Enter

Select company code: AML

Select assign button

Select: AMLR check box

Enter
Save (or) (ctrl + s)
Save in your request
Creation of Material group:

Path: SPRO  logistics general  Material group  create material group

Material group: CHEMICAL

Give the material group description: Chemicals

Save

Creation of purchasing group:

Path: SPRO  materials management  purchasing  create purchasing groups

Select new entries button

Purchase group: AML

Description: Raw material purchase group

Save

Save in your request

Maintain company codes for materials management:

Path: SPRO  logistics  general  material master  basic settings  maintain


company codes for materials management

97
Select position button

Give the company code: AML

Enter

For the company code: AML

Give the year: 2006

Give the period: 7


Select ABP check box
ABP  Allow back period postings
Select save button (or) (ctrl + s)
Ignore the warning message
Press enter
Press enter to save in your request
Define attributes of material types:

SPRO  logistics general  material master  basic settings  material types 


define attributes of material types

Select material type: ROH (Raw material)

Double click on qty/value updating folder

Select position button

Give the valuation area: AMLP

Enter

For AMLP: select qty updating check box & value updated check box

Save

Save in your request

Select back arrow

Select material type: FERT (Finished product)

Double click on qty/value updating folder

Select position button

98
Give the plant: AMLP

Enter

For AMLP: select qty updating check box & value updated check box

Save

Set tolerance groups for purchase orders:

Path: SPRO  materials management  purchasing  purchase order  set tolerance


limits for price variance.

Select: Tolerance key PE & Tolerance key: SE

For company code: 1000

Select copy as button

Change the company code: AML

Press enter

Once the company code to AML for SE

Enter & Save

Save in your request

Set tolerance limits for goods receipt:

Path: SPRO  materials management  inventory management & physical inventory


 goods receipt  set tolerance limits

Select tolerance key: B1, B2, &VP for company code 1000

Select copy as button

Change the company code to AML for B1

Enter

Change the company code: AML for B2

Enter

99
Change the company code: AML for VP

Enter & save

Save in your request

Plant parameters:

Path: Up to inventory management & physical inventory path is same

Plant parameters

Select plant: 1000


Select copy as button
Give the plant: AMLP
Enter & Save
Save in your request
Maintain default values for tax codes:

Path: SPRO  materials management  logistics invoice verification  incoming


invoice  maintain default values for tax codes

Select new entries button

Company code: AML

Select tax code: VO

Save (or) (ctrl + s)

Set Tolerance limits for invoice verification:

Path: SPRO  materials management  Logistics invoice verification  invoice block


 set tolerance limits.

Select tolerance key BD

Select tolerance key ST for company code 1000

Select copy as button

Change the company code: AML

Enter

100
Once again change the Co code to AML for ST

Enter & Save

Save in your request

Define automatic status change

Up to logistics invoice verification the path is same

Invoice verification in back ground  Define automatic status

Change

Select new entries button


Give the company code: AML
Save
Save in your request
Creation of GL master (FS00)

1. Inventory raw material local under current assets, loans advance.


2. In finished good under current assets, land & advances
3. GR/IR clearing raw material local under current liabilities & provisions
4. Increase/decrease finished goods under the group increase/decrease the
stocks
5. Raw material consumption local under raw material consumption group

Use the transaction code: FS00

Give the G/L account No: 200121

Company code: AML

Select with template button

Give the G/L account No: 200120 (Inv. Raw material)

Company code: AML

Enter

Change short text & long text to: Inventory raw material local

Select create/bank/interest tab

Field status group change to G006 (Material accounts)

101
Select post automatically only check box

Save (or) (ctrl + s)

2) G/L account No: 200122

Company code: AML

Select with template button

Give the G/L account No: 200121

Enter

Change short text & G/L long text to: Inventory finished goods

Save
3) G/L account No: 100510

Company code: AML

Select with template button

Give the G/L account No: 100500 (Out standing expenses)

Company code: AML

Enter

Change short text & G/L long text to: GR/IR clearing raw material local

Select control data tab

Tax category: * (All tax types allowed)

Select posting with out tax allowed check box

Select create/bank/interest tab

Field status group: G045

Save

4) G/L account No: 300200

102
Company code: AML

Select with template button

Give the G/L account No: 300100 (Exchange gain)

Company code: AML

Enter

Change the account group to: Increase/decrease in stocks

Change short text & G/L long text to: Increase/decrease in stocks finished goods

Select create/bank/interest tab

Field status group: G030 (Change in stock accounts)


Save
G/L account No: 400000

Company code: AML

Select with template button

Give the G/L account No: 400100 (Salaries account)

Enter

Change the account group to: Raw material consumption

Change short text & G/L long text to: Raw material consumption local

Select create/bank/interest tab

Field status group: G003

Save

Select edit cost element button

Valid from date: 01.04.2006 to 31.12.9999

Enter

Cost element category: 1

103
Save

Group together valuation areas:

Path: SPRO  materials management  valuation & account assignment  account


determination  account determination with out wizard  group together valuation
areas

Select position button

Give the valuation area: AML1

Enter

For valuation area: AMLP – valuation grouping code: X

Save
Save in your request
Define valuation classes:

Path: same path

Select valuation class button

Select valuation class 3000 raw material

Select copy as button

Change the valuation class, class to AML1

Change the description to Raw materials local

Enter

Select valuation class: 7920 (Finished product) check box

Select copy as button

Change the valuation class to AML2

Change the description: finished goods

Enter & save

Save in your request

104
Configure automatic postings:

Path: same path

Select cancel button

Select account assignment button

Transaction code: 0BYC

Double click on BSX (Inventory postings)

Give the chart of accounts: AML

Enter
Select valuation modifier check box
Select valuation class check box
Save
Valuation modifier: X

Valuation class: AML1

Give the account No: 200121 (Inventory raw material local)

Valuation modified: X

Valuation class: AML2

Account No: 200122

Save

Save in your request

Select back arrow

Double click on WRX (GR/IR clearing)

Select valuation modifier check box

Select valuation class check box

Save

Valuation modifier: X

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Valuation class: AML1

Account No: 100510 (GR/IR raw material)

Save

Save in your request

Select back arrow

Double click on GBB (offsetting entry for Inventory postings)

Select general modification check box

Valuation modifier check box

Valuation class check box


Save
Valuation modifier: X

General modification: VBR

Valuation class: AML


Account No: 400000

Valuation modifier: X

General modification: AUF

Valuation class: AML2

Account No: 300200 (Increase/decrease in stock)

Valuation modifier: X

General modification: Z0F

Valuation class: AML2

Account No: 300200

Valuation modifier: X

General modification: VAY

Valuation class: AML2

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Account No: 300200

Valuation modifier: X

General modification: VAX

Valuation class: AML2

Account No: 300200

Save

Save in your request

Document types & number ranges: (OBA7)

Select position button

Select document type: WE (Goods receipt)

Select details button

Note down the number range: 50

Select No. range information button

Give the company code: AML

Select change intervals button

Select interval button

No. range: 50; year: 2006

From no: 800001 to 900000

Enter & Save

Select back arrow 3 times

Select type: WA (goods issue)

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Select details button

Note down the number range: 49

Select No. range information button

Give the company code: AML

Select change intervals button

Select interval button

No. range: 49 year: 2006

From no: 900001 to 1000000

Enter & Save

Select back arrow 3 times

Select type: RE (Gross invoice receipt)

Select details button

Note down the number range: 51

Select No. range information button

Give the company code: AML

Select change intervals button

Select interval button

No. range: 51 year: 2006

From no: 1000001 to 1100000

Enter & Save

Creation of vendor master in MM (Path: XK01)

Give the company code: AML

Purchase organization: AMLR

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Account group: AML2

Enter

Give the name of the vendor: Reliance industries

Country: In (India)

Select next screen button 3 times

Reconciliation account: 100501


Sort key: 012
Select next screen button
Payment terms: 0001
Select next screen button 3 times
Order currency: INR
Select GR based invoice verification check box
Save
Material master creation:

Path: Logistics  materials management  material master  material  create


(General)  Immediately (MM01)

Give the material No: AMLRM!

Industry sector: Mechanical Engineering

Material type: Raw material

Press select views button

Select: Basic data 1

Select: purchasing

Select: General plan data/storage/ accounting1

Select organization levels button

Give the plant: AMLP

Storage location: Hyd

Enter

Give the description: Raw material 1

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Base unit of measurement: Kg

Material group: Chem (Chemical)

Select purchasing tab

Purchasing group: AML (Raw material purchase group)

Select accounting 1 tab

Division: A1 (Cement division)


Valuation class: AML1 (Raw materials local)
Price control: V (Moving average price)
Moving price: 50/-
Total stock: 0
Total value: 0
Save
To open material periods:

Path: Logistics  materials management  Material master  other  Close period


(T. code: MMPV)

Give the from company code: AML

Period: 8

Fiscal year: 2006

Select check & close period radio button

Execute

Select back arrow

From company code: AML

Period: 9

Fiscal year: 2006

Select check & close period radio button

Execute

Purchase order creation:

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Path: Logistics  Materials management  Purchasing  Purchase order  Create 
Vendor/supplying plant known (T. Code: ME21N)

Give the vendor number: 6400001

Purchasing organization: AMLR

Company code: AML

Purchasing group: AML


Item: 10
Material: AMLRM1
P. O. quantity: 100
Net price: 75/-
Plant: AMLP
Save
Note down the P. O. No: 4500014522
Goods receipts:

Logistics  materials management  inventory management  goods movement 


Goods receipt  for purchase order  P. O. No known (T. Code: MIGO)

Give the purchase order No: 4500014522

Enter

Select quantity tab

Quantity in delivery note: 100 Kegs

Select item OK check box

Select where tab

Storage location: Hyd

Save

Display material document:

Path: Logistics  materials management  Inventory management  Material


document  Display (T. Code: MB03)

Enter

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Select accounting documents button

Select accounting document number

Inventory RM local 7500 – AMLRM1 – AML1 (BSX0


To GR/IR RM local 7500 – AMLRM1 – AML1 (WRA)

Qty in GR * rate as per PO 100 * 75 = 7500

Invoice verification:

Path: logistics  Materials management  logistics  Invoice verification 


Document entry  enter invoice (MIRO)

Invoice date: 25.11.2006

Reference party bill no: 5678

Amount: 7500/-

Text: Invoice verification

Select payment tab

Give the base line date: 02/12/2006

Payment terms: 0001

Give the purchase order No: 4500014522

Enter

Save

Ignore the warning message, enter

From the menu select invoice document  display

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Select follow on documents button

Double click on accounting document No:

Reliance industries A/C Dr 7500 (From purchase order)


To GR/IR clearing RM local 7500  AMLRM1 – AML1 (WRX)

Goods issue for consumption:

Path: Logistics  materials management  inventory management  goods movement


 Goods issue (MB1A)

Give the movement type: 201

Plant: AMLP

Storage location: Hyd

Enter

Give the cost centre: Dept A

Material number: AMLRM1

Qty: 10 kegs

Save

From the menu select goods issue  Display

Enter

Select accounting documents button

Select accounting document No

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Inventory RM local 750 (AMLRM1 – AML1 (BSX0
RM consumption  750  AMLRM1 – AML1  GBBVBR

To view material ledger:

Logistics  Materials management  Inventory management  environment  stock


 stock for posting date (MB5B)

Give the material No: AMLRM1

Company code: AML

Plant: AMLP

Select date: 01.04.2006 to 31.03.2007


Select: value added stock radio button
Execute
SD to FI Integration
Insert regions:

SPRO  general settings  set countries  Insert regions

Select new entries button

Give the country: IN (India)

Region: AP; Description: Andhra Pradesh

Save

Define sales organization

SPRO  Enterprises structure  Definition  sales & distribution  define, copy,


delete check sales organization

Double click on define sales organization

Select new entries button

Sales organization: AMLS

Description: Hyderabad sales organization

Statistics currency: INR

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Save (or) (Ctrl + s)

Ignore the warning message, press enter

Name: Hyderabad sales organization

Country: IN (India)

Enter

Select create request button

Short description: SD Customization for AML

Enter

Press enter to saving the request


Define distribution channel

Same path

Double click on define distribution channel

Select new entries button

Distribution channel: AD

Description: Direct sales

Save

Save in your request

Define shipping point:

SPRO  enterprises structure  definition  logistics execution  define, copy,


delete, check shipping point.

Double click on define shipping point

Select new entries button

Give the shipping point: AMSH

Description: Hyderabad shipping point

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Save

Give the name: Hyderabad shipping point

Country: IN (India)

Enter

Press enter to save in your request

Assign sales organization to company code

SPRO  enterprises structure  Assignment  sales and distribution  Assign sales


organization to company code

Select final button

Give the company code: AML

Enter

Select company code: AML

Select assign button

Select: AMLS check box

Enter

Save (or) (Ctrl + s)

Save in your request

Assign distribution channel to sales organization

Same path

Select find button

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Give: AMLS

Enter

Select: AMLS

Select: Assign button

Select: AD check box (Direct sales)

Enter & Save

Save in your request

Assign division to sales organization

Same path

Select find button

Give: AMLS

Enter

Select: AMLS

Select: Assign button

Select: A1 (Cement division)

Enter & Save

Save in your request

Set up sales area:

Path: same path

Select find button

Give: AMLS

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Enter

Select: AMLS

Select: Assign button

Select: AD check box (Direct sales)

Enter

Keep the cursor on AD

Select: assign button

Select: A1 (Cement division check box)

Enter & Save


Save in your request
Assign sales organization – Distribution channel – plant

Select find button

Give: AMLS

Enter

Select: AMLS

Select assign button

Select AMLP check box

Enter & Save

Save in your request

Define rules by sales area:

SPRO  enterprises structure  Assignment  Sales and distribution  Business area


account assignment  define rules by sales area

Select position button

Give the sales organization: AMLS

Enter

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For AMLS select rule 001 (Business area determination from plant/division

Save

Save in your request

Assign shipping point to plant

SPRO  enterprises structure  assignment  logistics execution  assign shipping


point to plant

Select find button

Give: AMLP

Enter

Select: AMLP

Select: Assign button

Select: AMSH (Hyderabad shipping point) check box

Enter & save

Define pricing procedure determination

SPRO  sales & distribution  Basic functions  pricing  pricing control  define
& Assign pricing procedures

Double click on define pricing procedure determination

Select new entries button

Sales organization: AMLS

Distribution channel: AD (Direct sales)

Division: A1 (Cement division)

Document procedure: A (Standard)

Customer pricing procedure: Select 1 (Standard)

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Pricing procedure: Select RVW01 (Standard)

Condition type: Select PRO0 (Price)

Save

Save in your request

Define tax determination rules:

SPRO  Sales & distribution  Basic functions  Taxes  define tax determination
rules

Select new entries button

Tax country: select IN (India); sequence: 1


Tax category: Select MWST (Output tax)
Save
Creation of G/L master, sales local own goods (FS00)

Give the G/L account No: 300001

Company code: AML

Select with template button

G/L account No: 300000 (Sales account)

Company code: AML

Enter

Change short text & G/L account long text to: Sales local own goods

Select create/bank/interest tab

Field status group: G029 (Revenue accounts)

Save

Select edit cost element button

Valid from date: 01.04.2006 to 31.12.9999

Enter

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Cost element category: 11 (Revenues)

Save

Assignment of accounts for automatic postings:

SPRO  sales & distribution  Basic functions  accounts assignment/costing 


Revenue account determination  Assign G/L accounts (T. Code: VKOA)

Double click on table: 001

Select new entries button

Application area: Select V (Sales & distribution)

Condition type: Select KOFI

Chart of accounts: AML


Sales organization: AMLS

Account assignment group for customer: select 01 (Domestic revenues)

Account assignment group for materials: Select 03 (finished goods)

Account key: select ERL (Sales revenues)


G/L account No: 300001 (Sales local own goods)

Save

Save in your request

Set up partner determination:

4 types of partners:

SP – Sold to party – fixed – Net modifiable


SH – Ship to party
BP – Bill to party
PY – Payee

Path: SPRO  sales & distribution  Basic functions  partner determination  set
up partner determination

Double click on set up partner determination for customer master

Double click on partners function folder

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Select: SP (Sold to party)

Double click on account groups – function assignment folder

Select new entries button

Partner function: SP (Sold to party), enter: SH (AML); BP (AML2), PY (AML2)

Account group: AML2 (SD customers for AML)

Enter & Save

Save in your request

Double click on partner’s determination procedures folder

Select new entries button

Give the partner determination procedure: AML

Name: AML (Partner determination procedure)

Save

Ignore the message, press enter

Select: AML

Double click on partner functions in procedure folder

Select new entries button

Give the partner function: SP (Sold to party)

Select not modifiable check box

Select mandatory function check box

Partner function: SH (Ship to party)

Select mandatory function check box

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Select: BP (Bill to party); select mandatory function check box

Select: PY (Payee); select mandatory function check box


Save (or) (ctrl + s)

Select back arrow 2 times

Select: AML

Double click on partner determination procedure assignment folder

Select position button

Account group: AML2


Enter
For AML2: Assign AML
Save

Assign shipping points:

SPRO  logistics execution  shipping  Basic shipping functions  shipping point


& goods receive point determination  assign shipping points

Select new entries button

Shipping condition: 01 (As soon as possible)

Loading group: 0003 (Manual)

Plant: AMLP
Proposed shipping point: AMSH

Save, save in your request

Creation of customer master: (XD01)

Account group: Select SD customers for AML

Company code: AML

Sales organization: AMLS

Distribution channel: AD

Division: A1

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Enter

Give the customer name: VBC Industries Ltd

Country: IN (India)

Region: AP

Select company code data button

Reconciliation A/C: 200110 (Sundry debtors)

Sort key: 031

Select payment transactions tab

Terms of payment: 0001


Select sales area button
Customer pricing procedure: Select 1 (standard)

Select: shipping tab

Delivery priory: Select 02 (Normal)

Shipping conditions: Select 01 (As soon as possible)

Select: Billing document tab

Select: Price determination check box

Inco terms: select EXW (From plant)

Account assignment group: Select 01 (Domestic revenues)

Output tax classification: select 1 (Liable for tax)

Save

Creation of finished goods material master: (MM01)

Give the material no: AMLFG

Industrial sector: Mechanical engineering

Material type: Finished product

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Press: select views button

Select: Basic data

Select: Sales: sales Org data1

Select: sales: sales org data2

Select: Sales: general/plant data

Select: MRP

Select: General/plant/data/storage

Select: accounting 1

Select organization levels button

Give the plant: AMLP

Storage location: Hyd

Sales organization: AMLS

Distribution channel: AD

Enter

Give the description: Finished product

Base unit of measurement: Kg

Gross weight: 1000 Grams

Select: Sales: sales organization data1 tab

Division: A1

Tax classification: Select1 (Full tax)

Select: Sales: sales organization to tool tab

Account assignment: select 03 (Finished goods)

Select: sales: general/plant

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Availability check: Select KP (No check)

Transportation group: 0003 (Container)

Loading group: 0003 (Manual)

Select: MRP1 tab

MRP Type: Select ND (No planning)

Select: accounting 1 tab

Valuation class: AML2 (Finished products)

Price control: Select S (Standard price)

Standard price: 400/-


Select save button (or) (Ctrl + s)
Creation of condition types:

Logistics  sales & Distribution  Master Data  conditions  select using condition
type  Create (VK11)

Give the condition type: PR00 (Price)

Select: Key combination button

Select: Material with release status radio button


Enter

Give the material No: AMLFG

Amount: 500/-

Valid on: 01.04.2006 to 31.03.2007


Save (or) (ctrl +s)

Select back arrow

Give condition type: MWST (Output tax)

Select key combination button

Select domestic taxes radio button

Enter

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Give the country: IN (India)

Valid on 01.04.2006 to 31.12.9999

Tax classification customer: 1 (Liable for Tax)

Tax classification for material: 1

Tax code: Select AO

Save

Ignore the message, press enter

Profitability analysis (CO – PA)


Co – Controlling
PA – Profitability analysis

This is used to view profitability for number of parameters at a time.

If the client want to view profitability

Product wise/customer wise/sales order wise/plant wise/sales organization wise

- This is called data cube


- This is a reporting tool
- Product costing is based on the based on data flown
from MM, PP, FI, CO
Here we have

- Account based/costing based/both wise profitability


analysis
- Here we create operating concern

Operating concern can be

- equal to controlling area (or) above controlling area

Controlling area can be equal to company code (or) above company code

Structure: company code = controlling area = operating concern

127
We are using called data structure

Data structure
| |
Characteristics value fields
↓ ↓
Sales order
Customer
Product Sales
Sales organization Cost of goods sold
Plant Net profit
Sales employee
Industry

Profitability segment:
In consist of  system defaulted characteristics
Client required characteristics
Example of client required characteristics:

1. Sales employee wise profitability


2. Industry wise profitability

Data flow in profitability analysis

SD to FI

a) Enquiry & quotation


b) Sale order: customer, product plant, sales organization, quantity, price, delivery
terms & payment terms
c) Delivery: with out post goods issue/with post goods issue
d) Billing

Define operating concern:

SPRO  controlling  profitability analysis  structures  define operating concern


 Maintain operating concern.

Operating concern: 1234 (It should be 4)

Select create button

Ignore the warning message, press enter

Give the description: Operating concern for AML

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Select costing based check box, actual based check box

Select attributes tab

Give the operating concern currency: INR

Select company code currency check box

Fiscal year variant: V3

Save

Select data structure tab

Select create button under data structure

Select the characteristic: KNVTNR (Sales employee)

Select left arrow

Select value fields tab

Select: VV010 (Revenues)

Select: VV140 (Cost of goods sold)

Select left arrow

From the menu select data structure  save


From the menu select data structure  Activate
Select back arrow
Select ‘yes’ button for the message to generate the operating concern environment.
Ignore the message, press enter

Define profitability segment characteristics: (In segment level characteristics)

Path: same path (T. Code: KUQ3)

Give the operating concern: 1234

Enter

For product & Customer

Select costing base & Account base radio butt

129
Save

Save in your request

Assign controlling area: to operating concern:

Path: SPRO  enterprises structure  assignment  controlling  assign controlling


area to operating concern

Select position button

Give the controlling area: AML

Enter: for controlling area: AML, assign operating concern: 1234

Save
Ignore the warning message, press enter
Define No. ranges for actual postings:

SPRO  controlling  profitability analysis  flows of actual values  initial steps 


define number ranges for actual postings (T. Code: KEN1)

Give the operating concern: 1234

Select maintain groups’ button

Select generated groups check box

From the menu select interval  maintain

Give the No from: 1 to 999999999


Save

Maintain assignment of SD conditions to Co – PA value fields

Path: SPRO  controlling  profitability analysis  flows of actual values  transfer


of billing documents  assign value fields

Double click on maintain assignment of SD conditions to CO-PA value fields (T. Code:
KE41)

Select new entries button

Open one more session & set operating concern idea

130
Path: SPRO  controlling  profitability analysis  structures  set operating
concern

Give the operating concern: IDEA

Enter

Use the transaction code: KE41

Come to the 1st session

Give the condition type: PR00 (Rice)

Select value fields – VV010 (Revenues)

Select VPRS (Costs)


Select value fields – VV140 (Cost of goods sols)
Save
Maintain PA (Profitability analysis) structure for direct postings:

SPRO  controlling  profitability analysis  flows of actual values  direct postings


from FI/MM  maintain PA transfer structure for direct postings (T. code: KET2)

Select the structure: FI (Financial accounting to CO – PA)

Double click on assignment lines folder

Select: 20 (Direct revenues from FI)

Double click on source folder

Give the cost element: from 300000 to 399999

Double click on value fields’ folder

Select new entries button

Qty/value  select value field

Fixed variable  select 1 (Fixed amounts)

Value fields  select VV010 (Revenue)

Save

Save in your request

131
Double click on assignment lines folder

Select assignment: 10 (Direct costs from FI)

Give the cost element: from 400000 to 499999

Double click on value fields’ folder

Select new entries button

Qty/value  select value field

Fixed variable  select 1 (Fixed amounts)

Value fields  select VV140 (Cost of goods sold)

Save
Activate profitability analysis:

Path: same path (T. Code: KEKE)

Select position button

Give the controlling area: AML

Enter

For controlling area: DRL – Active status select a4 (Component active For both types of
profitability analysis)

Save

Save in your request

Sale order creation:

Path: Logistics  sales & distribution  sales  order  create (T. Code: VA01)

Give the sales organization: AMLH

Distribution channel: AD

Division: A1

Order type: OR (standard order)

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Enter

Sold to party: VBC Industries Pvt. Ltd

Give the P. O. order: 5678

Required delivery date: 03.12.2006

Delivery plant: AMLP

Payment terms: 0001

Item: 10;

Material No: AMLFG

Order qty: 1 kg
Enter

Ignore the messages, press enter

Select item 10

From the menu select  go to item condition

Select: Shipping tab

From the menu select edit  Incompletion log

Save (or) (ctrl + s)

Note: Sales order No: 8209

Production receipt with out production order:

Path: Logistics  Materials management  Inventory management  Goods


movement  goods receipt  Other (MB1C)

Give the movement type: 521

Plant: AMLP

Storage location: Hyd

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Enter

Give the material type: AMLFG

Qty: 20 Kegs

Save

Ignore the warning message, press enter

From the menu select other goods receipts  display

Enter

Select accounting documents button

Select accounting document No:

Account No Description INR

200122 Inventory FG 10000 – DRLFG1 – DRL1 (BSX)


300201 Inc/Dec in stock FG 10000 – DRLFG1 – DRL1 – (GBBZAX)

Qty & standard price

Delivery:

Logistics  sales & Distribution  sales  order  subsequent functions  outbound


delivery (VL01N)

Give the shipping point: AMLS

Give the sales order number: 8209 (What it is created in sales order)

Enter

Actual GI date (Goods issue date): 03.12.2006

Select item: 10

Select picking tab

Pick quantity: Enter 1

Select post goods issue button

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From the Menu select out bound delivery  display

Enter

From the Menu select environment  Document flow

Keep the cursor on goods issue

Select display document button

Select accounting documents button

Select accounting document No:

200122 Inventory FG 500  DRLFG1  DRL1 – (BSX)


300201 Inc/dec in stock FG 500  DRLFG1  DRL1 – GBBVAY

Billing document:

Same path: (VF02)

Select the delivery document No: 11341

Enter

Save

From the menu select billing document  display

Select accounting button

Select accounting document No

Report generation through report painter

Define forms

SPRO  Controlling  Profitability analysis  information system  report


components  define forms  define forms for profitability reports

Double click on create form

Give the form name: AML

Description: AML Form (T. Code: KE34)

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Select two axes (Matrix) radio button

Select create button

Select operating concern currency radio button

Enter

Double click on: Row 1

Select value field with characteristics radio button

Enter

Value field select: VV01 (Revenue)

Select: Confirm button


Double click on: Row2

Select value field with characteristics radio button

Enter

Value field select: VV140 (Cost of goods sold)

Select: Confirm button

Double click on: Row3

Select formula radio button

Enter

Select Y001 (Revenue)

Select Minus (-) button

Select Y002 (Cost of goods sold button)

Enter

Short description: Net profit

Select copy short text button

136
Enter

Double click on column1

Select characteristics radio button

Enter

Select from the available characteristics plan/actual indicator

Select left arrow

For plant/actual indicator: Select 0 (Actual data)

Select confirm button

Save

From the menu select edit  General data selection  General data selection

From the available characteristics select record type, select period/year

Select left arrow

For record type: select from column B to column select F (Billing data)

For period/year

For from column: Select variable on/off check box

Local variable: enter1

Enter

For to column: Select variable on/off check box

Give the local variable: 2

Enter

Select confirm button

From the menu select extras  Variables  variables of definition

1- description: From period/year


2- description: To period/year

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Enter & Save

Create profitability report:

Same path

Double click on create profitability report

Transaction code: KE31

Give the report name: AML Profit

Description: AML Profitability

Select: Report with form radio button

Give the form name: AML


Select create button

Select customer, product, plant, select sales organization from characteristics list

Select left arrow

Select output type tab

Select: Class drill down radio button

Select available on selection screen check box

Save

Select execute button

Give from period/year: 01.2006

To period/year: 12.2006

Execute

Ignore the message, select ‘yes’ button

To view product wise:

From the menu select navigate  switch drill down

138
Double click on product

Product costing
This is used for valuation of inventories like work in process & finished goods.

- Data is flow from MM, PP, FI&CO modules


- Product costing made easy- sap labs
- When we will take production – It will be standard cost
- In the month ending we will knows the actual cost
- The differences will be settle variances of accounts

Data flow in product costing:

Example: Product AMLFG1

Cost sheet AML finished goods

Raw material XXX (Qty from BOM * Rate from material master
Raw material overheads XXX (10% of raw material)
Production cost XXX (hours required * machine hour rate)
---------
Cost of goods manufacturing XXX
(COGM)
Admn& selling& dist exp XXX
------
Cost of goods sold XXX

139
Sales budget  Production budget

Sales budget: Make to order


Make to stock

Production budget: Material requirement plan


Overheads planning

MM

Material master
Accounting view
Raw material (AMLRM1) – Moving average price – 75/-
(AMLRM2) – Moving average price – 100/-

PP: Bill of material (BOM) required for production

AMLRM1 – 1kg
AMLRM2 – 1kg

Dept A Dept B Dept C Dept D  Work centre in PP

 X   (Finished goods (AMLFG)

Finished product (AMLFG) process flow A  C  D (Routing)

Salaries – 200000
Wages - 500000
Rent - 20000
-----------
720000

Machines – 100 Machines

Machine hours = 100 * 24 hours * 30 days = 72000 machine hours

Machine hour rate = 720000/72000 = 10/- per hour

To produce finished product AMLFG say 5 machine has = 5 * 10 = 50

140
Creation of secondary cost elements:

1. Overhead cost element


2. Activity cost element

Use the transaction code: KA06

Use the cost element: 1100000

Valid from: 01.04.2006 to 31.12.9999

Enter

Give the name: RM overhead rate

Description: RM overhead rate

Cost element category: select 41 (Overhead rate)

Save

One more cost element: 1200000

Valid from: 01.04.2006 to 31.12.9999

Enter

Give the name: Activity cost element

Description: Activity cost element

Cost element category: select 43 (Internal activity allocation)

Save

Creation o f activity type: (Called machine hour)

Accounting  controlling  cost centre accounting  master data  activity type 


individual processing  create (KL01)

Activity type: AML

Valid from: 01.04.2006 to 31.12.9999

Enter

141
Name: Machine hour

Description: Machine hour

Activity unit: Select H (Hour)

Cost centre categories: Select * (All cost centre categories)

Enter

Activity type category: select 1 (Manual entry, manual allocation)

Allocation cost element: select 1200000

Save

Creation of 2 cost centers: (KS01)

Give the cost centre: Dept G

Valid from: 01.04.2006 to 31.12.9999

Reference cost centre: Dept A

Controlling area: AML

Enter

Change the name to dept G

Description: Cost centre dept G

Other fields are common

Save (or) (ctrl + s)

One more cost centre: Dept H

Valid from: 01.04.2006 to 31.12.9999

Reference cost centre: Dept A

Controlling area: AML

142
Enter

Change the name to dept H

Cost centre: Dept H

Cost centre category: Select 9 (Allocation cost centre)

Save

Creation of cost centre group: (KSH1)

Give the cost centre group: AML Prod

Enter

Give the cost centre group: AML prod

Select insert cost centre button

Give the cost centre: Dept G

Select save button (or) (ctrl + s)

Define overhead keys:

SPRO  Controlling  product cost controlling  basic settings for material costing 
overhead  define overhead keys

Select new entries button

Overhead key name: AML

Description: AML Overhead key

Save

143
Save in your request

Define overhead group:

Same path

Select new entries button

Valuation area: AMLP

Overhead group: AML

Overhead key: AML

Name of overhead group: Overhead group for AML

Save

Save in your request


Define calculation bases:

SPRO  controlling  product cost controlling  product cost planning  basic


settings for material costing  overhead  costing sheet components  define
calculation bases

Select new entries button

Base: A1

Name: Raw materials

Save, Save in your request


Select: A1

Double click on details folder

Give the controlling area: AML

Enter

Select new entries button

From cost element: 400000 to 400099

Save

144
Select back arrow 3 times

Select: New entries button

Base: A2

Name: Production cost,

Save

Select: A2
Double click on details folder
Give the controlling area: AML
Enter
Select new entries button
From cost element: 400100 to 400299
: 400500
: 1200000
Save (or) (Ctrl + s)
Define percentage overhead rates:

Path: same path

Select: new entries button

Overhead rate: A3

Name: Raw material overhead rate

Dependency: Select DO10 (Overhead type/H key)

Save

Save in your request

Select: A3

Double click on details folder

Ignore the message, press enter

Select new entries button

Valid from: 01.04.2006 to 31.03.2007

Controlling area: AML

145
Overhead type: Select 2 (Planned overhead rate)

Overhead key: AML

Percentage: 15%

One more:

Valid from: 01.04.2006 to 31.03.2007

Controlling area: AML

Overhead type: Select 1 (Actual overhead rate)

Overhead key: AML


Percentage: 10%
Save
Save in your request
Define credits:

Same path

Select new entries button

Give the credit key: A4

Name: Raw Material credit key

Save

Save in your request

Select: A4

Double click on details folder

Give the controlling area: AML

Enter

Select new entries button

Valid to: 31.03.2007

Cost element: 1100000 (Raw material overhead rate)

146
Fixed percentage: 100%

Cost centre: Dept H


Save
Example:

RM1 – Handling charges Dr - Dept H – 3000


To Bank 3000
RM2 – Handling charges Dr – Dept H – 7000
To Bank 7000
Dept H
Handling 10000 | 3000
Charges | 7000
(7000 + 3000) | -------
10000
Production 1 production2
RM cost 30000 RM Cost 70000
10% of cost 3000 10% of cost 7000
Define costing sheet:

SPRO  Controlling  product cost controlling  basic settings for material costing 
overhead  define costing sheets

Select new entries button

Costing sheet: AML

Description: AML costing sheet

Select: AML

Double click on costing sheet rows folder

Select new entries button

Give Row: 10, Basic: A1 (Raw materials)


Row: 20, overhead rate: A3 (Raw material overhead rate)
From: 10 to Row 10: Credit: A4
Row: 30, Base: A2 (Production cost)
Row: 40, Description: Cost of goods manufacture
From Row 10 to Row 30

Save (or) (Ctrl + s)

Assign costing sheet to costing variant:

147
SPRO  controlling  Product cost controlling  product cost planning  material
cost estimate with quantity structure  define costing variants

Transaction code: OKKN

Select costing variant: PPL1 (Standard cost estimate (Material))

Select details button

Select valuation variant button

Select create button (Beside valuation variant/plant)

Select new entries button

Give the plant: AMLP

Save, Save in your request


Select back arrow

Select valuation variant: 001 with plant: AMLP

Select details button

Select overhead tab

Give the costing sheet: AML – costing sheet


The costing sheet: AML – costing sheet

Save

Define cost component structure:

SPRO  controlling  product cost controlling  product cost planning  basic


settings for material costing  define cost component structure

Select structure: 01

Double click on: Cost components with attributes folder

Select: cost component 10 (Raw materials)

Double click on assignment cost components – cost element interval folder

Select new entries button

148
Cost component structure: 01

Chart of accounts: AML

From cost element: 400000 to 400099

Cost element: 010 (Raw materials)

Save, ignore the warning message, and enter

Save in your request

Double click on cost components with attributes folder

Select component: 80 (Material overhead)

Double click on assignment cost component – cost element interval

Select: new entries button

Cost component structure: 01

Chart of accounts: AML

From cost element: 1100000 (Overhead rate)

Cost component: 080 (Material overhead)

Save

Double click on cost elements with attributes folder

Select cost component: 50 (Production machine)

Double click on assignment cost component – cost element interval folder

Select new entries button

Cost component structure: 01

Chart of accounts: AML

From cost element: 400100 to 400299

Cost element structure: 050

149
One more

Cost component structure: 01

Chart of accounts: AML

From cost element: 400500

Cost element structure: 050

Cost component structure: 01


Chart of accounts: AML
From cost element: 1200000
Cost element structure: 050
Save
Double click on cost element structure folder
For ‘0’ select activate check box
Save (or) (ctrl + s)
Determine person responsible for work centre:

Path: SPRO  production  Basic data  work centre  general data  determine
person responsible

Select new entries button

Give the plant: AMLP

Person responsible: A

Give the responsible: Mr. A

Save

Save in your request

Define MRP controller: (MRP: Material requirement planning)

SPRO  production  material requirements planning  master data  define MRP


controllers

Select new entries button

Give the plant name: AMLP

MRP controller: B

150
Description: Mr. B

Save

Save in your request

Define floats (Scheduling margin key) (Floats: Cushion period)

Path: SPRO  production  materials requirement planning  planning  scheduling


& capacity parameters  define floats (Schedule margin key)

Select new entries button

Give the plant name: AMLP

Schedule margin key: AML

Opening period: 2 days

Float before production: 2 days

Float after production: 2 days

Release period: 2 days

Save

Save in your request

Define production scheduler:

SPRO  production  shop floor control  master data  define production scheduler

Select new entries button

Plant: AMLP

Production scheduler: C

Production scheduler name: Mr. C

Save (or) (ctrl + s)

Planning cost centre wise (KP06)

151
Version: 0

From period: 9 to 9

Fiscal year: 2006

Cost centre: Dept G

Next page

Cost centre: 400100 (Salaries)

Select form based radio button

Select over view screen button

Give plan fixed cost: 720000

Save
Planning for machine hours:

Accounting  controlling  cost centre accounting  planning  activity ad put/prices


 change (KP26)

Version: 0

From period: 9 to period: 9

Year: 2006

Cost centre: Dept G

Activity type: AML

Select form based radio button

Select overview screen button

Give plan activity 72000 (100 machines * 3 shifts * 30 days)

Save

Machine down rate calculation:

Accounting  controlling  cost centre accounting  planning  allocations  price


calculation (KSPI)

152
Select cost centre group radio button

Give the cost centre: AMLPRODN

Version: 0

From period: 9 to period: 9

Fiscal year: 2006

Execute

Select save button (or) (ctrl + s)

Ignore the message, press enter

Creation of material master: (MM01)

Give the material number: AMLRM2

Industry sector: Mechanical engineering

Material type: Raw material

Press: select use button

Select: Basic data, purchasing, general plant data/storage one, accounting

Select organization levels button

Give the plant: AML

Storage location: Hyd

Enter

Give the description: Raw material

Basic unit of measurement: Kg

Material group: Chem

Select purchasing tab

153
Purchasing group: AML

Select: Accounting1 tab

Valuation class: AML1

Price control: V

Moving price: 100

Save

Creation of finished goods master (MM01):

Material No: AMLFG1

Industrial sector: Mechanical engineering

Material type: Finished product

Press select views button

Select: Basic data1, MRP1, MRP2, work scheduling, general plant data/storage1,
Accounting1, costing1.

Select organization levels button

Plant: AMLP

Storage location: Hyd

Enter

Give the description: Finished product1

Basic unit of measurement: Kg

Select: MRP1 tab

154
MRP type: select PD (MRP)

MRP controller: Select B (Mr. B)

Lot size: select Ex (Lot for lot order quantity)

Select MRP2 Tab

In house production: 0 days

Schedule margin key: AML

Select work schedule time tab

Ignore the warning message, enter

Production: Scheduler C

Select accounting1 tab

Valuation class: AML2

Price control: S (Standard)

Give the standard price: 300/-

Select costing1 tab

Overhead group: Select AML

Availability check: Select KP (No check)

Save

Creation of Bill of material:

Logistics  production  master data  bills of material  bill of material  material


BOM  Create (CS01)

Give the material No: AMLFG1

Plant: AMLP

BOM usage: Select 1 (Production)

Enter

155
Give the component

For item 10: AMLRM1; Qty: 1 Kg

Item 20: AMLRM2; Qty: 1

Save

Creation of work centre:

Logistics  production  master data  work centers  work centre  create (CR01)

Work centre: Dept G

Work centre category: select 0001 (Machine)

Select basic data button

Give the description: Work centre Dept G

Person responsible: A

Usage, select 009 (All task lists types)

Standard value key: SAP1 (Normal production)

Select costing tab

Start date: 01.04.2006

Cost centre: Dept G

For activity machine: Give the activity type AML

Performance unit: H (Hour)

Formula key: SAP002 (Production machine types)

Save

Creation of routing:

Logistics  Production  master data  routings  routings  standard routings 


create (CA01)

156
Give the material No: AMLFG1

Plant: AMLP

Enter

Usage: select1 (Production)

Status: Select 4 (Release (General))

Select operation button

For operation at tab give the work centre: Dept G

Control key: Select PP01 (In house production)


Select operation: 10 and double click
Machine: standard values: 5
Unit: H (hours)
Save
Creation of cost estimate with quality structure:

Accounting  controlling  product cost controlling  product cost planning 


material costing  cost estimate with quantity structure  create (T. Code: CK11N)

Give the material: AMLFG

Plant: AMLP

Costing variant: PPC1 (Standard cost estimate)

Enter

Give the costing date from: 08.12.2006 Costing date to 31.12.9999

Qty structure date: 08.12.2006

Valuation date: 08.12.2006

Enter

Standard cost should be: 251.25

Cost sheet

RM – AMLRM1 – 75
- AMLRM2 - 100

157
------
175.00
RM overhead 15% 26.25
Production costs
(5*10) machine hours 50.00
---------
251.25

From the menu select: Cost  Display cost components

Select save button (or) (ctrl + s)

Enter

Marking & Releasing


Display material master:

Logistics  materials management  material master  material  display  display


current (MM03)

Give the material number: AMLFG1

Press select views button

Select costings2, view

Select organization levels button

Give the plant: AMLP

Enter

Marking, updates future price – 09.2006 Price – 251.25


- 09.2006Price – 251.25

Release – updates current price – 251.25

Use of marking & Releasing is  for the next month if the product

Value is increased it is estimated in the current month and applicable in the next month

158
Path for Marking & Releasing:

Accounting  controlling  product cost controlling  product cost planning 


material costing  price update (T. Code: CK24)

Give posting period/fiscal year: 9.2006

Company code: AML

Plant: AMLP

Material: AMLFG1

Select test run check box

Select marking allowance button

Select company code: AML

Give the costing variant: PPC1 (Standard cost estimate)

Save

Select back arrow

Deselect test run check box

Execute

Select: AMLFG1

Select costing2 tab

Select back arrow 2 times

Select release button

Executes

Select: AMLFG1

Select: costing 2 tab

Actual costing: (check costing variants for manufacturing orders)

159
SPRO  controlling  product cost controlling  cost object controlling  product
cost by order  manufacturing orders  check costing variants for manufacturing orders
(PP) (T. Code: OPL1)

Select costing variant: PPP1 (Production order plan)

Select details button

Select valuation variant button

Select create button beside valuation variant/plant

Select new entries button

In Plant: AMLP

Save

Save in your request

Select back arrow

Select valuation variant: 006 (with AMLP)

Select details button

Select overhead tab

Costing sheet: Assign AML costing sheet

Save

Select back arrow

Select: Costing variant: PPP2 (Production order actual)

Select details button

Select valuation variant button

Select create button beside valuation variant/plant

Select new entries button

In plant: Give AMLP

160
Select overhead tab

Save

Save in your request

Select back arrow

Select: 007 with AMLP

Select details button

Select: AML closing sheet

Save

Define goods received valuation for order delivery:

SPRO  controlling  product cost controlling  cost object controlling  product


cost by order  define goods received valuation for order delivery

Select new entries button

Valuation area: AMLP

Valuation variant: 007 (Production order – Actual)

Save

Save in your request

Define results analysis keys:

SPRO  controlling  product cost controlling  cost object controlling  product


cost by order  period end closing  work in process  define results analysis keys (T.
Code: OKG1)

Result analysis key: FERT (WIP calculation for production orders)

Save

Define cost element for WIP calculation:

161
Same path

Double click on create cost element

Transaction code: KA06

Give the cost element: 1300000 (Secondary cost element)

Valid from: 01.04.2006 to 31.12.9999

Enter

Name: order/project result analysis

Description: order/project result analysis

Cost element category: 31 (Order/project results analysis)

Save

One more cost element: 1300001

Valid from: 01.04.2006 to 31.12.9999

Give the reference cost element: 1300000

Controlling area: AML

Enter & Save

One more cost element: 1300002

Valid from: 01.04.2006 to 31.12.9999

Give the reference cost element: 1300000

Controlling area: AML


Enter & Save

Cost element: 1300003

Valid from: 01.04.2006 to 31.12.9999

Give the reference cost element: 1300000

Controlling area: AML

162
Enter & Save

Cost element: 1300004

Valid from: 01.04.2006 to 31.12.9999

Give the reference cost element: 1300000

Controlling area: AML

Enter & Save

Creation of 2 G/L accounts: (FS00)

1. work in process – under current assets, loans & advances


2. increase/decrease in stocks WIP under increase/decrease of stocks group

Transaction code: FS00

Give the G/L account No: 200123

Company code: AML

Select with template button

Give the G/L account No: 200121 (Inv. Raw material local)

Company code: AML

Enter

Change short text & long text to: work in process

Select create/bank/interest tab

Deselect post automatically check box

Save

163
Give the G/L account No: 300201

Company code: AML

Select with template button

Give the G/L account No: 300200 (Increase/decrease in stocks)

Company code: AML

Enter

Change short text & long text: Increase/decrease in stocks in WIP

Save

Define results analysis versions:

SPRO  controlling  product cost controlling  cost object controlling  product


cost by order  period and closing  work in process  define results analysis versions

Select new entries button

Select: AML

Technical result analysis cost element: 1300000

Save

Save in your request

Define valuation method: (Actual Costs)

Same path

Select new entries button

Select actual costs button

Give the controlling area: AML

Result analysis version: 0

164
Result analysis key: FERT

Enter

Save

Save in your request

Define line ID’s:

Same path

Select line ID: ABR, EK, EL, & FK for controlling area 1000

Select copy as button

Give your controlling area: AML for all the 4 items


Enter & Save
Save in your request
Define assignment:

Path: same path

Select EK (Direct costs) for controlling area: 1000

Select copy as button

Give the controlling area: AML

In the masked cost element enter: 00004000 + +

Enter & Save

Save in your request

Select: EL for controlling area: AML

Masked cost element: enter 00003 + + + +

Enter

Select line ID - EK (production costs) for controlling area: 1000

Select copy as button

Give the controlling area: AML

165
Masked cost element: enter 00004001 + +

Enter

Select the item what we are created

Select copy as button

Give the mask cost element: 00004002 + +

Enter

Select the both items what we are created

Select copy as button


For 1st one mark cost element give: 00004005 + +
For 2nd one give mask cost element give: 0001 + + + + + +
Enter & save
Define update:

Path: same path (T. Code: OKGA)

Select new entries button

Give the controlling area: AML

Version: 0

Result analysis key: FERT

Line ID: EF (Direct costs)

Category: Select K (Costs)

Work in process cost element: 1300001

Results: 1300002

Controlling area: AML

Version: 0

Result analysis key: FERT

Line ID: FK (Production costs)

166
Category: K (Costs)

WIP: 1300003

Results: 1300004

Controlling area: AML

Version: 0

Result analysis key: FERT

Line ID – ABR

Category: A (Settled cost)

Save
Save in your request
Define posting rules: for settling work in process:

Path: same path (T. Code: OKG1)

Select new entries button

Controlling area: AML

Company code: AML

Result analysis version: 0

Result analysis category: WIPR (Work in process with requirement to capitalized)

P&L account: 300201 (Increase/decrease in stock WIP)

Balance sheet account: 200123 (Work in process balance sheet accounts)

Save

Save in your request

Define results analysis versions:

Path: same path (T. Code: OKG9)

Select controlling area: AML

167
Select details button

Select transfer to financial accounting check box

Select save button (or) (Ctrl + s)

Ignore the message, press enter


Save in your request
Define variance keys:

SPRO  controlling  product cost controlling  cost object controlling  product


cost by order  period end closing  variance calculation  define variance keys (T.
Code: OKV1)

Select new entries button


Variance key name: AML
Description key: Variance key for AML
Save, save in your request
Define default variance keys for plants:

Same path

Select position button

Give the plant: AMLP

Enter

For AMLP plant assign variance key: AML

Save

Save in your request

Define target costs versions:

Path: same path

Select target cost version for controlling area: 1000

Select copy as button

Controlling area: AML

Description: Target cost version for AML

168
Enter & Save

Save in your request

Create allocation structure:

SPRO  controlling  product cost controlling  cost object controlling  product


cost by order  period end closing  settlement  create allocation structure.

Select new entries button

Allocation structure: A4

Text: AML allocation structure for product costing

Save, save in your request

Select: A4 (What we are created)

Double click on assignments folder

Select new entries button

Give the assignment: AML

Text: overheads

Save

Select: AML

Double click on source folder

From cost element: 400000 to cost element 499999

Save

Double click on settlement cost elements folder

Select new entries button

Receiver category: select ord (order)

Settlement cost element: 1000001

169
Save

Create settlement profile:

Same path

Select new entries button

Settlement profile: AML1

Description: Settlement profile for AML

Select: To be settled radio button

Allocation structure: A4

Select % settlement check box

Select equivalence number check box

Select amount settlement check box

Under valid receivers for order settlement required

Maximum number of distribution: 999

Residence time 12 months

Save

Assign Co number range interval for the process

KZPI (Actual overhead periodic)


RKL (Actual activity allocation)

Transaction code: KANK

Give the controlling area: AML

Select maintain groups’ button

Double click on KZPI

Double click on RKL

Select co document No. range intervals for AML check box

170
From the menu select edit  Assign element group

Save

Maintain exchange rate type for M & P for INR to EURO:

M – Average rate
P – Cost planning

Transaction code: OB08

Select new entries button

Exchange rate type: M

Valid from: 01.04.2006

From currency: INR

To currency: EURO

Direct quotation: 0.2

Save

Save in your request

Exchange rate: P

Valid date: 01.04.2006

From currency: INR to Currency: EURO

Direct quotation: 0-2

Save (or) (ctrl + s)

Creation of G/L account: (FS00)

Production order difference account

Give the G/L account No: 400201

Company code: AML

171
Select with template button

G/L account No: 400200 (Conversion charges)

Company code: AML

Enter

Change short text & G/L text to: production order differences

Select create/Bank/interest tab

Field status group: G014 (MM Adjustment Accounts)

Save

One more account

G/L Account No: 100599

Company code: AML

Select with template button

Give G/L account No: 100500 (Outstanding expenses)

Company code: AML

Enter

Change short text & G/L text to: stock taking account

Select create/Bank/interest tab

Field status group: G049 (Manufacturing costs account)

Select control data tab

Deselect open item management check box

Save

Select the G/L account: 300200 (Increase/decrease stock FG)

172
Company code: AML

Select create/bank/interest tab

Field status group change to: G036

Save

Select edit cost element button

Valid from: 01.04.2006 to 31.12.9999

Enter

Cost element category: select 22 (External settlement)

Save

Assignment of accounts for automatic postings:

Transaction code: OBYC

Double click on PRD (Cost price differences)

Give your chart of accounts: AML

Select valuation modifier check box

Save

Valuation modifier: X

Account Number: 400201

Save

Save in your request

Select back arrow

Double click on GBB

Valuation modifier: X

General modification: AUA

173
Valuation class AML2

Account No: 300200

Valuation modifier: X

General modification: BSA

Valuation class: AML1

Account: 100599 (Stock taking account)

Save

Save in your request

Define order type dependant parameters:

SPRO  production  shop floor control  master data  order  define order type
dependant parameters (T. Code: OPL8)

Select order type: PP0K (For plant 1000)

Select copy as button

Give the plant: AMLP

Enter & Save

Define scheduling parameters for production orders:

Up to shop floor control the path is same

Operations  scheduling  define scheduling parameter for production orders (T.


Code: OPU3)

Select order type: PP01 (for plant 1000)

Select copy as button

Change the plant to AMLP

Enter & Save

174
Save in your request

Define checking control:

Up to shop floor control the path is same

Operations  availability check  defines checking control (T. Code: OPJK)

Select order type: PP02 (with business function) &


Order type: PP01 with business function 2 for plant 1000

Select copy as button

Give your plant: AML1


Enter
Once again give your plant: AMLP
Enter & Save
Save in your request
Define confirmation parameters:

Up to shop floor control the path is same

Operations  confirmations  Define confirmation parameters

Transaction code: OPK4

Select order type: PP010 (for plant 1000)

Select copy as button

Give the plant: AMLP

Enter & Save

Creation of production order:

Path: Logistics  production  production control  orders  create  with material


(T. Code: COOK)

Give the material no: AMLFG1

Production plant: AMLP

Planning plant: AMLP

175
Order type: PP01 (Standard production order)

Enter

Total quantity – 10kgs

Start date & Finished date: 10.12.2006


Select cost order button
Ignore the warning messages, enter
From the menu select go to  analysis
Select back arrow
Select release order button
Save
Note down order No: 60002846
From the menu select order  display
Transaction code: CO03
Enter
Select assignment tab
Note down the reservation number: 17516
AML Raw material to receipt by way of opening stock

Path: Logistics  materials management  Inventory management  gods movement


 goods receipt  other (MB1C)

Give the movement type: 561

Plant: AMLP

Storage location: Hyd

Enter

Give the material No: AMLRM2

Give the qty: 100Kgs

Save

From the menu select other goods receipts  display

Enter

Select accounting documents button

Select accounting document number

176
89 - 200121 – Inventory RM local -10000 – AMLRM2 – AML – BSX
91 – 100599 – Stock taking A/C – 10000 – AMLRM2 – AML – AMLTGBB BSX

10000: Qty & rate as per material master

Goods issued for production order

Path: Logistics  materials management  inventory management  goods movement


 goods issue (T. Code: MB1A)

Select to reservation button

Give the reservation number: 17516

Enter

Give actual consumption AMLRM1 – 15kgs


AMLRM2 – 15kgs

Save

From the menu select goods issue  display

Enter

Select accounting documents button

Select accounting document number

Work in process calculation:

Path: Accounting  controlling  product cost controlling  cost object controlling 


product cost by order  period end closing  single functions  work in process 
individual processing  calculate (KKAX)

Give the order: 60002845

WIP to period: 9 (December)

Fiscal year: 2006

RA (Result analysis) version: select 0

Select test run check box

Execute

177
Select back arrow and deselect check run and execute

Settlement of work in process to accounts:

Up to period end closing the path is same

Single functions  settlement  individual processing (T. code: K088)

Give the order No: 60002845

Settlement period: 9

Fiscal year: 2006

Select test run check box

Execute

Select back arrow

Deselect test run check box

Execute

Select detail list button

Select accounting documents button

Select accounting document number

50 – 300201 – Inc/Dec in stock WIP – 2625 – P & L A/C

40 – 200123 – Work in process – 2625 – Balance sheet

Actual overhead calculation

Path: up to period end closing the path is same

Single functions  overhead  individual processing (KGI2)

Give the order No: 60002845

Period: 9

Fiscal year: 2006

178
Select test run check box

Select dialog display check box

Execute

Select back arrow

Deselect test run check box

Execute

Confirmation of production order:

Logistics  production  production control  confirmation  enter  for operations


 time ticket (CO11N)

Give the order number: 60002845

Operation: 10

Confirmation type: select final confirmation

Yield: 10kgs

For activity2: give the qty: 60

Unit of measurement: H

Save

Production receipt against production order

Logistics  materials management  inventory management  goods movement 


goods receipt  for order (MB31)

Give the document date & posting date: 21.12.2006

Movement type: 101

Give order No: 60002845

Plant: AMLP

179
Storage location: Hyd

Enter, ignore the warning message and press enter

Save

From the menu select goods receipt  display

Enter

Select accounting documents button

Select accounting document No

To make order technically complete (IECO)

Logistics  production  production control  order  change (CO02)


Give the order No: 60002845
Enter
To close the order from the menu select functions  restrict processing  technically
complete
Save
Assign variance key in material master (MM02)

Give the material No: AMLFG1

Select organization levels button

Plant: AMLP

Enter

Select costing 1 tab

Assign variance key: AML

Save

Calculation of variances:

Up to period end closing the path is same

Single functions  Variances  individual processing (KKS2)

Give the order: 60002845

180
Period: 9

Fiscal year: 2006

Select test run check box

Execute

Select back arrow

Deselect run check box

Execute

Open one more session with (T. Code: CO03) (Order display)

Give the order No: 60002845


Enter
From the menu select go to  costs  analysis
Calculation of work in process once again for December (KKAX)

Give the order number: 6002845

WIP period: 9

Fiscal year: 2006

RA version: 0

Select test run check box

Execute

Select back arrow

Deselect test run check box

Execute

Settlement of work in process of accounts (K088)

Give the order No: 6002845

Settlement period: 9

Fiscal year: 2006

181
Select test run check box

Execute

Select back arrow

Deselect test run check box


Execute
Select detailed list button
Select accounting documents button
Select accounting document no

91 – 300200 – Inc/Dec in stock FG1 – 975 – (AMLFG1 – AML2 – GBBAVA


83 – 400201 – Prod. Order difference – 975 – AMLFG1 – AML2 – PRD
40 – 300201 – Inc/Dec in stock WIP – 2625
50 – 200123 – work in process.
THE END

182