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INTRODUCTION OF SAP
53
Table of Contents 31 Create Cost Elements
42 Create an Activity Type
63. Creation of Two Cost centers (T. Code KS01)
64. Define Calculation Base
75. Define Percentage Overhead Rates
87 Define Credits
88 Define Cost Sheet
109 Define Cost Component Structure
1210 Define Costing Variant
1310.1 Define Costing Type
1310.2 Define Valuation Variant
1510.3 Define Date Control
1510.4 Define Quantity Structure Control
1711 Define MRP Controller
1712. Define Floats (Scheduling Margin Key)
1713 Define Production Scheduler
1814 Creation of Material Master (T. Code MM01)
2015 Bill of Material (BOM)
2016 Determine Personal Responsible for Work Center
2017 Create Cost Center (T. Code KP26)
2118 Create Work Centers
2219 Create Routing
2320 Create Material Cost Estimate
2421 Mark Standard Price/Release
2522 Cost Object Controlling
2622.1 Product Cost by Order
2622.1.1 Check Costing Variants for Manufacturing Orders (PP)
2622.1.2 Define Goods Received Valuation for Order Delivery
2722.1.3 Define Result Analysis key
2722.1.4 Define Cost elements for WIP Calculation
2922.1.5 Creation of 2 G/L Accounts (T. Code FS00)
3025.1.6 Define Result Analysis Version
3025.1.7 Define Valuation Method (Actual Costs)
3125.1.8 Define Line IDs
3225.1.9 Define Assignment
3325.1.10 Define Update
3425.1.11 Define Posting Rules for Settling Work in Process
3525.1.12 Define Result Analysis Version
3525.1.13 Define Variance keys
3525.1.14 Define Default Variance Keys for Plants
3625.1.15 Define Target Cost Versions
3725.1.16 Assign Variance key in the Material Master(T. Code MM02)
3725.1.17 Create Allocation Structure
3925.1.18 Create Settlement Profile
4025.1.19 Creation of G/L Account (T.Code FS00)
4125.1.20 Assign CO Number ranges for Actual Overheads and Actual Activity Costs
4125.1.21 Assignment of Accounts for Automatic Posting (T. Code OBYC)
4225.1.22 Define Order Types
4325.1.23 Define Order type-dependent Parameters
4325.1.24 Define Scheduling Parameters for Production Orders
4425.1.25 Define Checking Control
4425.1.26 Define Confirmation Parameters
4425.1.27 Creation of Production Order
4625.1.28 Create purchase Requisition (ME51N)
4625.1.29 Create purchase order to Purchase Raw material (T. Code ME21N)
4725.1.30 Post Goods Receipt (T. Code MIGO)
4725.1.31 Goods Issue to Production Order
4825.1.32 Display the Production Order Line items (T. Code KOB1)
4925.1.33 Work in Process Calculation
4925.1.34 Settlement of Work in Process
5025.1.35 Issue the Remaining Raw material to Production Order
5125.1.36 Actual Overhead Calculation
5125.1.37 Confirmation of Production Order
5225.1.38 Display the Production Order Line Items (T. Code KOB1)
5225.1.39 Production Receipt against Production order
5325.1.40 Change the status of the Order to TECO (T. Code CO02)
5325.1.41 Again Calculate the Work in Process (T. Code KKAX)
5325.1.42 Run the Final Settlement (T. Code KO88)
Introduction
Most manufacturing or service companies are interested in accurately apportioning their operational and other costs to products and services provided. Comparing these costs with corresponding revenues allows you to determine your company profitability.
Accurately determining the profitability of products, product lines, and services provided can be surprisingly difficult. This becomes apparent when you start entering the details that SAP requires to accurately set up Product Cost Controlling.
Cost Component structure (Cost Sheet for Finished Goods)
Raw Material:
RM888
1@1000
1000
RM999
2@2000
4000
5000
Add: 10% Overhead on Raw Material
500
5500Add: Activity Costs
Assembly Cost5@500
2500
Painting Cost
10@200
2000Total Estimated of the product
100001 Create Cost ElementsCreate one cost element for overhead and other two cost elements for Activity costs.
Path: Accounting(Controlling(Cost Element Accounting(Master Data(Cost Element( Individual Processing(KA06 - Create Secondary
(T. Code KA06)
Controlling Area
TA01
Enter
Cost Element
800600Valid From
01.04.2011to31.12.9999
Enter
Name
Overhead Cost Element
Description
Overhead Cost Element
CElem category41 (Overhead rates)
Save
Creation of Cost Element for Assembly ActivitiesCost Element
800700
Valid From
01.04.2011to31.12.9999
Enter
Name
Assembly ActivitiesDescription
Assembly ActivitiesCElem category43 (Internal Activity Allocation)
Save
Creation of Cost Element for Painting ActivitiesCost Element
800701Valid From
01.04.2011to31.12.9999
Enter
Name
Painting Activities
Description
Painting Activities
CElem category43 (Internal Activity Allocation)
Save
2 Create an Activity TypePath: Accounting( Controlling( Cost center Accounting( master data ( Activity type( Individual Processing( Create (T. Code KL01)Enter the below data
Activity Type
ASSEMValid from
01.04.2011 to 31.12.9999
Press enter
Name
Assembly ActivityDescription
Assembly ActivityActivity unit
H (Hour)
CCtr categories
* (All cost center categories)
ATyp category
1 (Manual entry and manual Allocation)
Allocation cost element 800700Save.
Message: Activity type has been created
Create one more Activity Type for PAINTING ActivityActivity Type
PAINTValid from
01.04.2011 to 31.12.9999
Press Enter
Name
Painting ActivityDescription
Painting ActivityActivity unit
H (Hour)
CCtr categories
* (All cost center categories)
ATyp category
1 (Manual entry and manual Allocation)
Allocation cost element 800701
Save.
3. Creation of Two Cost centers
(T. Code KS01)One is for Over head costs and other one is for Activity costsCost Center
OVERHEADValid from
01.04.2011 to 31.12.9999Press Enter
Name
OVERHEAD Cost centerDescription
OVERHEAD Cost centerPerson responsibleMr. A
Cost center category1(production)
Hierarchy area
PRODCompany CodeTML
Business Area
HYD Save.
Create one more cost center Activity cost centerCost Center
Activity
Valid from 01.04.2011 to 31.12.9999Press enter
Name
Activity Cost center
Description
Activity Cost center
Person responsibleRAMU
Cost center category1(production)
Hierarchy area
PRODCompany codeTML
Business Area
HYD
Now we need to do the settings for the calculation of Overhead cost, which is of 10% on the Raw- material cost.4. Define Calculation Base Path: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Basic Settings for Material Costing(Overhead(Costing Sheet: Components(Define Calculation Bases
Select New Entries Base
Name
Z100
Raw material
Enter
Select Z100 and double click on details folder
Controlling Area TA01
From CElem
TO CElem
500000
500099
Save
Click on Create request
Short DescriptionProduct cost settings for TMLSave and continue.
5. Define Percentage Overhead RatesPath: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Basic Settings for Material Costing(Overhead(Costing Sheet: Components(Define Percentage Overhead RatesSelect New Entries O/H Rate
Name
DependencyZOH1
FG over head 1D020Press Enter
Select ZOH1
Double click on Details button
Ignore the message, press enter Select New Entries
Valid FromTo
CO AreaO/H TypePlantPercentage
01.04.2011 31.03.2012TA01
2
TMPP10
- Planned O/H01.04.2011 31.03.2012TA01
1
TMPP10
- Actual O/H
Save and continue.
Note: The Actual Over head cost may change with the planned over head costs.7 Define CreditsPath: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Basic Settings for Material Costing(Overhead(Costing Sheet: Components( Define Credits
Select New Entries
Credit
Name
Z01
Overhead Credit KeyPress Enter
Select Z01, Double click on Details folder Give the Controlling Area
TA01Enter
Select New Entries button
Valid toCost ElementFxd %Cost Center31.03.2012800600*OVERHEAD
Save and save in your request.
8 Define Cost Sheet Path: SPRO(Controlling(Product Cost Controlling( Product Cost Planning(Basic Settings for Material Costing( Overhead(Define Costing Sheets
(T. Code KZS2)Select New Entries
Cost sheet Description
ZTML01Cost sheet for TML- OH calcSelect Cost Sheet ZTML01Double click on Costing sheet rows
Select New Entries
RowBaseOverhead rate
Description
FromTo row
Credit
100Z100
Raw material
200
ZOH1
FG over head 1100100
Z01
Note: In the above cost sheet we are giving calculation clue to the system saying that Overhead needs to be calculated on Raw material and it needs to be credited in the over head cost center.Cost Sheet determines the formula/schema for calculating the overheads related to the product costing. It consists of the following rows that are processed during the calculation:
Base rowsBase rows contain the calculation base of the overhead costing: the cost elements and origins to which overhead is to be applied.
Overhead rows
Overhead rows have overhead rate assigned to them. An overhead row reference one or more base rows or totals rows. The amount contained in these rows, along with the percentage rate calculated using the overhead rates, determines the overhead amount.
Overhead case be percentage based or Quantity-Based Overhead Rate.
The overhead row contains a credit key that defines which object (cost center or order) is credited during the overhead calculation.
Total rowsNo calculation bases or overhead rates are assigned to the totals rows. They are used only to form subtotals or end totals.9 Define Cost Component StructurePath: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Basic Settings for Material Costing(Define Cost Component Structure
(T. Code OKTZ)Click on New Entries button Cost comp. Str
Active
Prime. Cost Comp. SplitName
TM
Select Check boxSelect Check box
Cost Component for TML
Double click on Cost Components with Attributes folder
Click on New Entries button
Cost component structure TM
Cost component 10 Raw material
Cost ComponentCost component group have been grouped under 10 (all cost components other than OH) and 20 (overheads).Cost ShareIt specifies whether the cost is only variable cost or both. In the case of Activity Cost, Cost sheet both the variable and fixed cost have been considered and in the case of other components only variable cost has been considered.
Cost Roll-upThe indicator determines whether the costing results of a cost component are rolled up in to the next highest costing level.
Save and save in your request.
Click on New Entry button (F8)
Cost Component StructureTM
Cost Component20 Over head costSave.
Again click on Next Entry button (F8)
Cost Component StructureTM
Cost Component 30 Activity costSave.
Select Back Arrow two times.
Select Cost Comp. Str. TM10Raw Material component
Double Click on Assignment: Cost Component Cost Element Interval folder
Select New Entries
Cost comp str
Chart of AccountFrom cost elementTo cost element cost component TM
TML
500000
500100 30
Save and save in your request.
Select Back ArrowSelect Cost Comp. Str. TM20Overhead costs component
Double Click on Assignment: Cost Component Cost Element Interval folder
Select New Entries
Cost comp str
Chart of AccountFrom cost elementTo cost element cost component
TM
TML
600000
600099 30
Save
Select Back Arrow
Select Cost Comp. Str. TM30Activity costs component
Double Click on Assignment: Cost Component Cost Element Interval folder
Select New Entries
Cost comp str
Chart of AccountFrom cost elementTo cost element cost component
TM
TML
800700
800799 30
Save.
10 Define Costing Variant Every cost estimate you create is based on a costing variant. The costing variant contains all of the control parameters and settings for costing such as selecting prices to access when costing materials, activities, and business processes.
A costing variant contains the following six control parameters:
Costing type
Valuation variant
Date control
Quantity structure control
Transfer control (optional)
Reference variant (optional)10.1 Define Costing TypePath: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Material Cost Estimate with Quantity Structure(Costing Variant: Components( Define Costing Types
(T. Code OKKI)Cost variant is nothing but Why we are costing (estimating) this material and where it needs to be updated in the material master
Here we are going to use costing type 01 Standard cost est. (mat.)10.2 Define Valuation Variant
Path: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Material Cost Estimate with Quantity Structure(Costing Variant: Components( Define Valuation Variants
(T. Code OKK4)Valuation Variant is the most important component in the Costing Variant. It gives the details about how to pick up the cost of the Raw material, Over head and Activity cost.
Here we are going to define our new Valuation Variant
Click on New Entries Z01Valuation Variant TMLFirst we will discuss about the Material Val. Tab
Priority Strategy Sequence
1 Moving Average Price
2 Plan Price1
3 Standard price
These are all the Prices in the Material Master record. Depends the given priority system will picks up the Appropriate price.
Click on Activity Types/ Processes Tab Priority Strategy Sequence
1 Plan price for the period
2 Actual price of previous period
3 Plan price as Average of All Fiscal year periods
Click on Overhead tab
Costing Sheet
Cost Sheet for TML- OH calc
Save and Save in your request.
Click on create button Select New Entries button
Give the plant
TMPPSave and Continue.
Select back Arrow 4 times (Till we get the SPRO Screen)
10.3 Define Date Control
Path: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Material Cost Estimate with Quantity Structure(Costing Variant: Components(Define Date Control
(T. Code OKK6)Date control determines which dates are proposed when a cost estimate is created and whether these dates can be changed by the user. You maintain date control either by clicking the Date Control button in the control tab of costing variant, with Transaction code OKK6.
Here, we are going to use the standard date control
PC01
Standard cost est- month.
10.4 Define Quantity Structure Control
Path: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Material Cost Estimate with Quantity Structure(Costing Variant: Components( Define Quantity Structure Control
(T. Code OKK5)
We will use PC01 Quantity structure controlNote: As there will not be anything much difference in creating new Date control and Quantity structure control, if you want we can create new Date control and Quantity.
Now we will define the new Costing Variant
Define Costing Variant
Path: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Material Cost Estimate with Quantity Structure( Define Costing Variants
(T. Code OKKN)Click on New Entries
Costing VariantTML1 Costing Variant for TMLCosting Type
Standard cost est. (mat.)Valuation Variant
Valuation Variant for TML
Date Control
Std cost est month
Qty Struct Control
Std qty struct. Determ 1
Click on Update tab
Select All the check boxes as shown in the below screen
Save and save in your request.
After creating cost variant, once again we need to go to the cost component structure to Assign the costing variant to the cost component structure.
Path: SPRO(Controlling(Product Cost Controlling(Product Cost Planning(Basic Settings for Material Costing(Define Cost Component Structure
(T. Code OKTZ)Select the Cost Component Structure TM
Double click on Assignment: Organiz. Units - Cost Component StructClick on New Entries
Co CodePlantCosting VariantValid fromCost comp.str
TML
++++++++
01.04.2011TM
Enter
Save and save in your Request.
Select Back Arrow Click on Activate check box against Cost Component StructureTM
11 Define MRP Controller
Path: SPRO(Production(Material Requirements Planning(Master Data(Define MRP Controllers
(T. Code OMD0)
Click on New Entries PlantMRP ControllerMRP controller name
TMPP001
Mr. B
Enter
Save and Save in your Request.
12. Define Floats (Scheduling Margin Key)
Path: SPRO(Production(Materials Requirement Planning(Planning( Scheduling and Capacity Parameters(Define Floats (Scheduling Margin Key)
(T. Code OMDC)Select New Entries
Enter the following details
Save and save in your request.
13 Define Production Scheduler
Path: SPRO(Production(Shop Floor Control( Master Data( Define production scheduler
(T. Code OPJ9)Select New Entries button
Enter the following details
Save and save in your request 14 Creation of Material Master (T. Code MM01)
Material
RM888
Industrial sectorMechanical engineering
Material Type
Raw MaterialEnter
Select: Basic data1, Purchasing, General plant data/storage 1, Accounting1 views
Click on Continue button Enter Plant
TMPP
Storage locationRM
Click on Continue
Description
RM888Base unit of measureEA
Material GroupMOTORCARSSelect Purchasing Data tab
Purchasing GroupTMRSelect Accountig1 data tab
Valuation ClassTMRM
Price control
V
Moving price
1000
Save.
Exercise: Create one more Raw material Material No RM999
Price
2000
Creation of Finished Goods Material Master (T. Code MM01)Material:
FG520Industrial Sector:Mechanical engineering Material Type:
Finished product
Select: Basic Data1, MRP1, MRP2, MRP3, Work Scheduling, General Plant data/storage1, Accounting1, Accounting2, Costing1 and Costing2 views.Click on Continue buttonPlant
TMPP
Storage locationFGPress Enter
Description
FG520Base unit of measureEA
Material groupsMOTORCARSSelect MRP1 tab
MRP type
PD
MRP Controller001
Lot Size
EX (lot of lot order quantity)
Select MRP2 tab
In house Production days 0
Schedule margin key: TML
Select MRP3 tab
Availability checkKP
Select work scheduling tab
Production schedulerP
Select Accounting1 tab Valuation classTMFGStandard price
15000
Material FG 520 created.15 Bill of Material (BOM)Path: Logistics(Production(Master Data(Bills of Material(Bill of Material(Material BOM( Create (T. Code CS01)MaterialFG520Plant
TMPP
BOM Usage1Enter
Enter the following details
ItemComponentQuantityUn
0010RM8881
EA
0020RM9992
EA
Enter and save
BOM created for material FG520
16 Determine Personal Responsible for Work Center
Path: SPRO(Production(Basic Data(Work Center(General Data(Determine person responsible
Select New Entries button
Plant
Person respons.Person responsible for work center
TMPP
RAM
Person Responsible for TMPP Work CenterSave and save in your request17 Create Cost Center (T. Code KP26)
Planner profile
SAPALLEnterVersion
0
From period
2
To period
2
Fiscal Year
2011
Cost Center
ACTIVITYActivity Type
ASSEMEnter
Click on Overview screen (F5) button
Give Fixed price500
Enter and Save
Select Back Arrow
EnterVersion
0
From period
2
To period
2
Fiscal Year
2011
Cost Center
ACTIVITYActivity Type
PAINT
Enter
Click on Overview screen (F5) button
Give Fixed price200
Enter and Save
18 Create Work Centers
Path: Logistics(Production(Master Data(Work Centers(Work Center (CR01 - Create
(T. Code CR01)
Plant
TMPPWork Center
TM01WC1Work center cat.0001
Enter
Give Work center description
Assembling and PaintingPerson responsible
RAMUsage
009
Standard value key
SAP1 (Normal Production)
Select Default values tab
MachineH
Labour
H
Select Costing tab
Cost CenterACTIVITYEnter the following details
Save.
19 Create RoutingPath: Logistics( Production( Master Data( Routings( Routings( Standard Routings( CA01 Create
(T. Code CA01)
Material FG520
Plant
TMPP
Enter
Usage
1
Status
4
Select Operations button Give Work CenterTM01WC1Control Key
PP01 (In-house production)Enter
Select Operation 0010 and double click
Machine5
Labor
10
Save
Routing was saved with group 50001038 and material FG520
20 Create Material Cost EstimatePath: Accounting( Controlling( Product Cost Controlling( Product Cost Planning( Material Costing( Cost Estimate with Quantity Structure( CK11N Create
(T. Code CK11N)Material
FG520
Plant
TMPP
Costing VariantTML1
Costing Version
1
Enter
Change the Costing date From08.05.2011
Change the Qty Structure Date08.05.2011
Valuation Date
08.05.2011Enter
21 Mark Standard Price/Release
Path: Accounting(Controlling(Product Cost Controlling(Product Cost Planning( Material Costing ( CK24 - Price Update (T. Code: CK24)
Posting Period/Fiscal Year
2/2011
Company Code
TML
Plant
TMPP
Material
FG520
Click on Marking Allowance button
Click on Company code TML
Costing Variant
TML1
Costing version
1
Enter and Save
Select Back Arrow
Remove Test Run
Execute (F8)
Select Back Arrow
Click on Release button Execute (F8)
Now go and see in the material master costing2 view, It got updated standard cost as Rs10000/-With this we have completed the Product cost planning; now we are moving on to Cost Object Controlling.
22 Cost Object ControllingCost Object Controlling allows you to determine planned costs for cost objects, post actual costs, and then analyze variances. Cost Object Controlling, which involves preliminary costing for manufacturing orders. Preliminary costing allows us to determine the planned costs of a product cost collector or manufacturing order.In preliminary costing, the bill of material (BOM) components and routing activities are valuated using the valuation variant specified in the costing variant. The costing variant is determined by the order type, which is a required filed when creating an order. The system calculates overhead expenses using the costing sheet if specified in the valuation variant.22.1 Product Cost by Order 22.1.1 Check Costing Variants for Manufacturing Orders (PP)Path: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Manufacturing Orders(Check Costing Variants for Manufacturing Orders (PP)
(T. Code OPL1)
Here we are going to use Two costing variants PPP1 and PPP2PPP1 is to calculate Planned cost on the production order and PPP2 is to calculate Actual cost on the production order.
Now Double click on Costing Variant PPP1
Click on Valuation Variant tab Select the Overhead tab, In the one change the Costing Sheet to Cost sheet for TML-OH Calculation
Click on Create button beside the Valuation variant/plant tabSelect New Entries
Give the Plant TMPP
Save and Save in your request.
Select Back Arrow three times.
Exercise: Do the same thing for Costing Variant PPP2 also22.1.2 Define Goods Received Valuation for Order Delivery
Path: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Define Goods Received Valuation for Order Delivery
(T. Code OPK9)Select New Entries buttonValuation AreaValuation Variant
TMPP
007 (Production order- Actual)
Save and Save in your request.
22.1.3 Define Result Analysis keyPath: 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)
We are going to use the standard Result analysis key FERT (WIP calculation for production orders)
Save.
22.1.4 Define Cost elements for WIP CalculationPath: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period End Closing(Work in Process(Define Cost Elements for WIP Calculation Double click on Create Cost Element
Enter the Controlling Area TA01
(OR) We can create cost elements through T. Code KA06
Give the Cost Element 800800Valid From
01.04.2011 to 31.12.9999Enter
Name
W.I.P Cost Element-1Description W.I.P Cost Element-1Cost Element category 31 (Order/project results analysis)
Save
Create 4 more Cost Elements like this.
Give the Cost Element 800801
Valid From
01.04.2011 to 31.12.9999Enter
Name
W.I.P Cost element-2Description W.I.P Cost element-2Cost Element category 31 (Order/project results analysis)
Save.Give the Cost Element 800802
Valid From 01.04.2011 to 31.12.9999Enter
Name
W.I.P Cost element-3Description W.I.P Cost element-3Cost Element category 31 (Order/project results analysis)
Save.Give the Cost Element 800803
Valid From 01.04.2011 to 31.12.9999Enter
Name
W.I.P Cost element-4Description W.I.P Cost element-4Cost Element category 31 (Order/project results analysis)
Save.
Give the Cost Element 800804Valid From 01.04.2011 to 31.12.9999Enter
Name
W.I.P Cost element-5Description W.I.P Cost element-5Cost Element category 31 (Order/project results analysis)
Save.
22.1.5 Creation of 2 G/L Accounts (T. Code FS00)
Work in Process G/L A/c under Current Assets, loans & Advances.Increase/ Decrease in Stocks A/c - under Cost of Production Group.G/L Account No 300207Company code TML
Select w. Template button
Give the G/L Account No300205 (Inv. Raw material Local)
Company Code
TML
Enter.
Change Short and long text to
Work in Process A/cSelect Create/bank/interest tab
Deselect post automatically check box
Save.
One more G/L AccountG/L Account No 400203
Company CodeTMLAccount Group Cost of Production
Click on Profit & Loss statement account radio button
Short and Long text
Inc/Dec in stock- WIP
Click on Control Data tab Click on Line item display check box
Sort Key001Click on create/bank/interest tab
Give Field Status Group G030
Select Post automatically check box
Save.
25.1.6 Define Result Analysis VersionPath: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period End Closing(Work In Process(Define Results Analysis Versions
Click on new entries buttonSelect controlling Area TA01Enter Technical Result analysis cost element: 800800
Save and Save in your Request.
25.1.7 Define Valuation Method (Actual Costs)Path: SPRO(Controlling(Product Cost Controlling( Cost Object Controlling( Product Cost by Order( Period-End Closing( Work in Process( Define Valuation Method (Actual Costs)
(T. Code OKGC)
Click on New Entries button
Click on Actual costs button
Give the following dataControlling Area
: TA01
Result analysis version: 0
Result analysis Key
: FERT
Enter
Save and save in your request.
System will automatically create following details.
25.1.8 Define Line IDs
Path: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period End Closing(Work in Process(Define Line IdsSelect line ID: ABR, EK, EL, FK and GK for Controlling Area 1000
Select Copy As button
Change the CO Area TA01 in the place of 1000 for all the 5 items
Enter & Save
Save in your request
25.1.9 Define AssignmentPath: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period-End Closing(Work in Process(Define Assignment
(T. Code OKGB)Select Line IDs EK, FK, GK and ABR for the Controlling Area 1000 as show below.
Select Copy As button Change the Controlling Area 1000 to TA01
Now the first line ID EK stands for direct costs, here in our scenario direct cost elements are Raw material consumption accounts - 500000 to 500099. We can mask the above entry like 0000500+++
Change the Masked cost element field against the EK to 0000500+++
Next line item ID is FK, it pertains to production costs. So we need to assign the Activity Cost elements for this. Activity cost elements in our scenario is 800700 and 80071. So we can mask the entry like 00008007++
Third line item is GK, It pertains to overhead costs. Our over head cost elements is 800600, we can mask the cost element as 00008006++.
For the line ID ABR Masked cost element is 00004002++
Change According, after the change it looks like as below
Press enter,
Save and Save in your Request.25.1.10 Define UpdatePath: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period-End Closing(Work in Process(Define Update
(T. Code OKGA)Select New Entries Button Give Controlling Area
TA01
Version
0
Result Analysis key
FERT
Line ID
EK
Category
K (Costs)
WIP (Cost element)
800801Reserves
800801Like this we have to up date for line Ids FK, GK and ABR. For EL (Revenues) updating is not required. (Please follow the below diagram and assign accordingly).
Press Enter,
Save and Save in your request.25.1.11 Define Posting Rules for Settling Work in ProcessPath: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period-End Closing(Work in Process(Define Posting Rules for Settling Work in Process
(T. Code OKG8)Select New Entries button
Controlling Area
TA01
Company Code TML
Result Analysis Version0
Result Analysis Category WIPR (Work in process with requirement to capitalize)
P&L account
400203 (Increase/decrease in stock WIP)
Balance Sheet account300207 (Work in process balance sheet accounts)
Save
Save in your request.
25.1.12 Define Result Analysis Version
Path: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period-End Closing(Work in Process( Define Results Analysis Versions (T. Code OKG9)Again Go to Result Analysis Version
Select Controlling AreaTA01
Click on Details button
Select Transfer to Financial Accounting Check box.
Save, ignore the message and press enter.
Save in your request.
25.1.13 Define Variance keysPath: 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
TA01
Variance key for plant TMPPSave and save in your request.
25.1.14 Define Default Variance Keys for PlantsPath: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period-End Closing( Variance Calculation( Define Default Variance Keys for Plants
(T. Code OKVW)Select Position Button
Give the Plant
TMPP
Enter
For TMPP Plant assign Variance Keya TA01
Save and Save in your request25.1.15 Define Target Cost VersionsPath: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period-End Closing(Variance Calculation(Define Target Cost Versions (T. Code OKV6)Click on New Entries Give Controlling Area
TA01
Target Cost version
0
Description
Target cost version for TA01
Variance Variant
STD
Valuation Variant for Scrap001
Select Actual Costs radio button under Control Costs tab.
Select Current std cost Est button under Target Costs tab
Save25.1.16 Assign Variance key in the Material Master(T. Code MM02)
Give Material
FG520
Enter
Select Costing 1 View
Click on Enter button
Give PlantTMPP
Enter
Give Variance KeyTA01
Save
25.1.17 Create Allocation StructurePath: 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
Text
TP
TML All. Str- Production orderSave and Save in your request.
Select Allocation Structure TP
Double click on Assignment Folder
Give
AssignmentText10Raw Material cost
20Over head costs
30Activity Costs
Press Enter.
Select Assignment 10- Raw Material Cost
Double click on Source folder From Cost Element 500000 to cost element 500100
Double click on Settlement cost element folder Click on New Entries
Receiver category
CTR (Cost center)
Click on By Cost Element check box
SaveSelect Back Arrow two times
Select Assignment 20- Overhead Cost
Double click on Source folder From Cost Element 800600 to 800699 Cost Element
Double click on Settlement cost element folder Click on New Entries
Receiver category
CTR (Cost center)
Click on By Cost Element check boxSave
Select back Arrow two times.
Select Assignment 30- Activity Cost
Double click on Source folder From cost element 800700 to cost element 800799
Double click on Settlement cost element folder Click on New Entries
Receiver category
CTR (Cost center)
Click on By Cost Element check box
Save.
25.1.18 Create Settlement ProfilePath: SPRO(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period-End Closing(Settlement(Create Settlement ProfileSelect New Entries
Settlement Profile
Z03
Production ord set profile-TMLSelect To Be Settled in Full radio button
Allocation structure
TP
Default Object type MAT (Material)
Select Check boxes
100% - Validation %- settlement
Equivalence numbers
Under the Valid receivers,
Select Settlement Optional for the below objectsG/L Account, Cost center, Order, Material and Profitability testing.
Document type: SA
Maximum Distribution rules: 999
Residence time: 12 months
25.1.19 Creation of G/L Account (T. Code FS00)Creation of Production order Difference Account under Other Manufacturing Cost
G/L Account No500105
Company CodeTML
Account Group Other Manufacturing cost
Give Short and Long text Production Order Difference
Select Control Data tab
Select Line item display check boxSort key
001
Select Create/Bank/interest tab
Field Status Group
G014 (MM Adjustment accounts)Select Post automatically only check box.
Save.
Create one more G/L Account for Increase/Decrease in FG under the group Cost of Production.
G/L Account No400204Company CodeTML
Account Group Cost of Production
Give Short and Long text
Change in Finished Goods AccountSelect Control Data tab
Select Line item display check boxSort key
001
Select Create/Bank/interest tab
Field Status Group G036[Revenue accts (with profit center)]Select Post automatically only check box.
Save.
Select Edit cost element button Valid From 01.04.2011 to 31.12.9999
Enter
Cost Element Category 22Save.
25.1.20 Assign CO Number ranges for Actual Overheads and Actual Activity Costs
(T. Code KANK)Controlling Area
TA01Select Maintain Groups button (F6) Double Click on Business Transactions
KZPI [Actual overhead (periodic)]
RKL [Actual activity allocation]Click on Actual Document Number ranges for TA01 check boxClick on Assign Element group button (F5) Save and Continue.
25.1.21 Assignment of Accounts for Automatic Posting (T. Code OBYC)Double click on PRD (Cost (price) differences)Give Chart of Account TML
Enter
Give the Account Number 500105
Save and Save in our Request.
Select Back Arrow (F3)
Double click on GBB
Valuation ModifierGeneral ModifierValuation ClassAccount Number
TM01
AUA
TMFG
400201Save and Save in the request.
25.1.22 Define Order Types
Path: SPRO(Production(Shop Floor Control(Master Data(Order(Define Order Types
(T. Code OPJH)
Select the Order Type PP01
Select Copy As button
Change Order Type PP01 to TAP1
TextProduction order for TA01Change Settlement Profile to Z03Functional AreaBlankPress Enter
Ignore the message,
Save and Save in the request.
25.1.23 Define Order type-dependent Parameters
Path: SPRO(Production(Shop Floor Control(Master Data(Order(Define Order Type Dependant Parameters
(T. Code OPL8)
Select the Order Type PP01 for the Plant 1000
Click on Copy as button Change the Plant to TMPP
Order Type TAP1
Enter
Save and Continue.
25.1.24 Define Scheduling Parameters for Production Orders
Path: SPRO(Production(Shop Floor Control(Operations(Scheduling(Define Scheduling Parameters for Production Orders
(T. Code OPU3)
Select order TypePP01 (for plant 1000)
Select Copy As button
Change the Plant to TMPP
Order type to TAP1
Enter Save and Save in your request25.1.25 Define Checking ControlPath: SPRO(Production(Shop Floor Control(Operations(Availability Check(Define Checking Control
(T. Code OPJK)
Select Plant 1000 for Order Type PP011Select Plant 1000 for Order Type PP012
Click on Copy As button
Change the plant to TMPP and Order type to TAP1 for both the business functions
Press Enter Save and Save in the request.25.1.26 Define Confirmation Parameters
Path: SPRO(Production(Shop Floor Control(Operations(Confirmations(Define Confirmation Parameters
(T. Code OPK4)Select Plant 1000 for Order Type PP01
Select Copy As button
Give Plant
TMPP
Order Type
TAP1Enter & Save
25.1.27 Creation of Production Order
Path: Logistics(Production(Production Control(Orders(Create(CO01 - With Material
(T. Code CO01)
Give the Material No
FG520
Production Plant
TMPP
Planning Plant
TMPP
Order type
TAP1EnterTotal quantity
4Finish Dates
16.05.2011
Start Dates
11.05.2011
Enter
Click on Cost Order button You will get the message Costs determined --> see cost displayFrom the menu select, Goto(Costs(Itemization
You will get the message Order number 60002685 saved (Order number might differ)
Change Production Order (T. Code CO02)
Give the Order number 60002685Click on Release Button You will get the message Release carried out.Save.
25.1.28 Create purchase Requisition (ME51N)
Item MaterialQuantityUnit Delivery date Material Group Plant Stor loc
10 RM88810
EA10.05.2011Motorcars
TMPP RM
20 RM99910
EA10.05.2011Motorcars
TMPP RM
Enter the above Details and Press Enter.
Save.
Purchase requisition will be created.25.1.29 Create purchase order to Purchase Raw material (T. Code ME21N)
Left side of the screen you will be having the Purchase requisition created i.e. 10008623
Keep the cursor on the purchase requisition and Click on the Adopt details icon Purchase OrganizationTMRM
Give the Vendor Account number700005
Enter the Currency INR
Enter the Net Price Against RM888: Rs1000 (Against Line items no: 10)
Against RM999: Rs2000 (Against Line items no: 20)
Save
You will get the message Purchase order was created.
Note: If you are not clear about how to create Purchase requisition and Purchase order, Please see the steps in MM-FI Integration.25.1.30 Post Goods Receipt (T. Code MIGO)
Enter the Purchase Order No
4500014497
Click on Execute button
Select Item Ok check box at the bottom for line item 1 Press Enter,
Select Item Ok check box for the line item 2
Click on Check button Click on Post button 25.1.31 Goods Issue to Production Order
Path: Logistics(Materials Management(Inventory Management(Goods Movement(Goods Issue
(T. Code MB1A)
Movement type
261Plant
TMPPStorage Location
RMPress Enter
Give the Order 60002685[Note: With this order we are going to manufacture 4 quantity, which requires RM888 quantity 4 and RM999 8 Quantity.]Initially we are going to issue 4 quantity of Raw material each
MaterialQuantityunEStorage location
RM888 4 EA RM
RM999 4 EA RM
Save.
Now we have issued Raw material to production order. Now we will go and see the production order line items25.1.32 Display the Production Order Line items (T. Code KOB1)
Give the Order No 60002685Execute (F8)
Note: Assume that at the month end the finished good was not complete, so we need to transfer this mount to Production order.25.1.33 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( KKAX - Calculate
(T. Code KKAX)
Give the Order
60002685WIP to period
2
Fiscal Year
2011
RA (Result analysis) Version
0
Select Test Run check box
Execute (F8)
Select Back Arrow and De-select Test run Check box
Execute (F8)25.1.34 Settlement of Work in Process
Path: Accounting(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period-End Closing(Single Functions(Settlement(Individual Processing
(T. Code K088)Give the Order No 60002685
Settlement period 2
Fiscal year
2011
Select Test Run check box
Execute (F8)Select Back Arrow (F3)De-select Test Run check box
Execute (F8)Select Detail list button
Select Accounting Documents button
Select Accounting Document Number
Note: By the end of the period 2, product was not completed, so we booked to work in progress account in the month end. All the below entries will be posted in the next month.
25.1.35 Issue the Remaining Raw material to Production Order
Path: Logistics(Materials Management(Inventory Management(Goods Movement(Goods Issue
(T. Code MB1A)
Movement Type
261Plant
TMPPStorage location
RMPress Enter
Give the Order
60002685Initially we are going to issue 4 quantity of Raw material RM999MaterialQuantityunEStorage location
RM999 4 EA RM Save.25.1.36 Actual Overhead Calculation
Path: Accounting(Controlling(Product Cost Controlling(Cost Object Controlling(Product Cost by Order(Period-End Closing(Single Functions(Overhead(Individual Processing
(T. Code KGI2)Give the Order No60002685Period
3Fiscal Year
2011
Select Test Run check box
Select dialog display check box
Execute (F8)Select Back Arrow (F3)De-select Test Run check box
Execute (F8)25.1.37 Confirmation of Production Order
Path: Logistics(Production(Production Control(Confirmation(Enter(For Operations(CO11N - Time Ticket
(T. Code CO11N)Give the Order Number60002685
Operation
10
Confirmation type
Select Final confirmation
Yield
4
Machine20
Labour
50 (Actual Estimated was 4*10, but Assume that it consumed 10 labour hours more)
Unit of measurement
H
Save
Note: If you get the error for Exchange rate, Go and maintain the exchange rate in T. Code OB08 According to the error message. We will not get this message in Real time system.
25.1.38 Display the Production Order Line Items (T. Code KOB1)Give Order No60002685Execute (F8)
Planned cost is 4*10000 = Rs 40000/-
But the Actual cost is Rs 42000/-25.1.39 Production Receipt against Production order
Path:Logistics(Materials Management(Inventory Management(Goods Movement(Goods Receipt(For Order (T. Code MB31) Give the Document Date & Posting Date15.06.2011Movement Type101
Give order No
60002685
Plant
TMPP
Storage locationFGEnterIgnore the warning message and press Enter
Save
From the menu select Goods Receipt(Display
Enter
Select Accounting Documents button
Select Accounting Document No
25.1.40 Change the status of the Order to TECO (T. Code CO02)Give the Order No60002685Enter
From the menu select, Functions(Restrict Processing(Technically Complete
Save 25.1.41 Again Calculate the Work in Process (T. Code KKAX)Give the Order Number60002685
WIP period
3Fiscal Year
2011
RA Version
0
Select Test Run check box
Execute (F8)Select Back Arrow
De-select Test Run Check box
Execute (F8)25.1.42 Run the Final Settlement (T. Code KO88)Give the Order No
60002685
Settlement Period
3
Fiscal Year
2011
Select Test Run check box
Execute (F8)Select Back Arrow (F3)De-select Test Run check box
Execute (F8)Select Details list button
Select Accounting Documents button
Select Accounting Document No
Inc/Dec in stock FG1
- 2000
Prod. Order difference- 2000
Inc/Dec in stock WIP
- 12000
Work in Process
- 1200
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