Manufacturing Cost Center Planning

Manufacturing Cost Center Planning

SAP Best Practices

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose During the annual budgeting process, the managers of manufacturing cost centers plan the

costs for various cost types/elements for their respective cost centers. In addition, the quantities of activity types needed for production and their prices are determined.

Benefits Possibility to compare planned and actual costs, monitoring of costs on cost centers.

Allocation of production and overhead costs to products (via activity types).

Key Process Steps Download of cost center budget into spreadsheets, revision by cost center managers,

upload of revised data. Transfer of planned activity requirements from production (SOP). Manual completion of planned data. Calculation of planned activity prices (input for AOP Standard Cost Calculation).


Required SAP Applications and Company Roles

Required SAP Applications Enhancement package 7 for SAP ERP 6.0

Company Roles Enterprise Controller Internal Controller Cost Center Manager

Wann, Christina

addedInternal ControllerCost Center Manager


Detailed Process Description

Manufacturing Cost Center Planning The following steps are described in Scenario 175 – General Cost Center Planning: copy

the previous year’s actual expenses or budget data for the cost centers into an AOP (annual operative planning) budget version in cost center accounting, posting of planned depreciation, download of data into spreadsheets, review by cost center managers and upload back into SAP.

The resource requirements in the form of planned activity quantities are transferred from Sales and Operations planning to the cost centers as planned activity consumption. Plan reconciliation between the SOP activity requirements and manually planned requirements on the operational cost centers is carried out. Once the activity quantities and budget amounts are finalized, planned activity prices are calculated in the system.

The planned activity prices are used for the Standard Cost Calculation.


A

Icon Name

KSPP

KPSI

KP26

KP26

KP06

Top-Down Primary Cost Planning(Optional Step with Web Dynpro)

B

L

M

O

N

Process Flow DiagramManufacturing Cost Center Planning (1/3)

Transfer Planned Activity Requirements

for Production

A

Plan Reconciliation

B

Accept Scheduled Labor and Overhead

Activity for Manufacturing Cost

Centers

General Cost Center Planning

(175)

SOP through Long Term Planning /

Capacity (173)

Plan Activity Based on Capacity

L

Calculate Rate Based on Capacity

M

Plan Direct Labor Expenses

O

Enterprise Controller Internal Controller Cost Center Manager

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SAP ERP SAP ERPSAP ERP

Top-Down Primary Cost Planning

N


Download Cost Elements for

Income/Expense Budget to Excel

C

Send Excel to Cost Center Manager

Upload Cost Elements for Income and

Expenses Excluding Operations

D

Plan Direct Overhead Expenses

P

Update Budget Values for Operation Cost

Budget


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Plan Statistical key Figures

E

Check Plan Assessment: Buildings and

Maintenance Costs

F

C

Icon Name

KP06

KP06

KP06

KP46

KSUB

D

P

E

F




Confirm Allocation of Operations Cost Budget

I

Activity Price Calculation

J

Confirm Accurate Calculation of Price

K

AOP - Standard Cost Calculation

(178)


Execute Plan Assessment for Quality

Costs

G

Check Plan Accrual Calculation

H

Final Planning Steps (175)

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Icon Name

KSUB

KSA8

S_ALR_87013611

KPSI

S_ALR_87013611

G

H

I

J

K



Thank you

Contact information:

F name MI. L nameTitleAddressPhone number


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Manufacturing Cost Center Planning

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