Product Costing 2v6j4
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PRODUCT COSTING This is used for valuation of inventories i.e. Finished goods and Work in progress PP Module MM Module FI Module CO Module
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Product costing
Note: SAP lab :Product costing made easy BPB publication –Not covered product costing Crate a cost estimate with quantity structure Cost element with quantity structure At standard cost In the month end we get actual cost Variable will be settled to s How standard cost will be arrived at : Sales budget for next month Production budget Material requirement Planning | | (Make to orders (confirmed orders) (This is same men budget) + And make to stock (expected orders)) Overhead planning = Standard cost Cost sheet for the product BILFG1 Raw materials xx Raw material overheads xx Production costs xx Cost of goods manufactured (COGM) xx istration Expenses xx Sales & Distribution exp. xx ---Cost of goods sold (COGS) xx To check with client at what level he wants to value stocks At COGM level or At COGM + level Raw material standard cost For each product –we find out materials required For BILFG1 We required BILRM1 BILRM2 MM Module :Material Master ing view –moving average price BIL RM1 75 BILRM2 125 PP Module: Bill of Material (BOM) To produce BILFG1 what materials are required and how much quantity
BILRM1 1Kg BILRM2 1Kg Raw material standard cost =Quantity from BOM (PP)*Rate from Material Master (MM) (1*75)+1*125)=200 Raw material overheads Overheads like freight charges :At the time of receipt it will be added to material –At the time of consumption the material cost includes freight also. Overhead like loading and unloading normal amounts change directly to P & L clients will tell us-how much percentage can be taken on raw material cost (consumption.) 5% of raw material costs Eg: 250*5%=12.5 Production costs: Cost centers in PP Module :Work centers
Raw material
Dept A
Dept B Dept C
Dept D
Dept A Issue
Dept B Dept C Issue
Dept D Issue finished product
All products need not go through all the Departments Process flow for each product in PP module we call as routing. PP Module: Routing Raw material Wages Salaries Power
Dept A Issue
(Process flow) Dept B Dept D Issue Finished product
300000 100000 320000 ------Planned cost 720000 ===== Planned hours available Machines 100 working for 3 shifts (24 Hours ) No.of days 30 Days 100*30*24=72000 Machine hour rate 720000/72000=10 Rs (Activity type) To Produce BILFG1 Hours required 5Hrs Production cost 10*5=50
Production cost : (Hours required in Dept A * Machine hour rate)+(Hours required in Dept B* Machine hour rate )+ (Hours required in Dept D * Machine hour rate) Example : Why can’t we allocate based on production Production Qty 999 Kgs 1 Kg -----1000
BILFG1 BILFG2
Hrs Req 1 999 ----1000
Cost
720000
If we allocate cost based on production BILFG1 BILFG2
720000*999/1000=719280 720000*1/1000= 720 -------720000 ====== If we allocate cost based on hours required BILFG1 BILFG2
720000*1/1000 720000*999/1000
=720 =719280 ----------720000 ========
ACTIVITY BASED COSTING Co –Consultants job: 1. Creation of 2 secondary cost elements (Use Tr.code is KA06) A) RM overhead rate B) Activity allocation Give the cost element 1200000 Valid from 01.04.2008 to 31.12.9999 Enter Give the name and description
:RM Overhead rate
Cost element category
: Select 41 overhead rates
Save Cost element
:1200001
Enter Name and description
:Activity allocation
Cost element category
:select 43 Interval activity allocation
Save Creation of activity type –Machine hour: Path :ing –Controlling –cost Center ing –Master data –Activity typeIndividual processing –create (Transaction code KL01) Activity type
:BIL
Valid from
:01.04.2008 to 31.12.9999
Enter Give the Name & Description :Machine hour Activity unit
:select H
Cost center categories
:Select * (All cost center categories)
Active type category
:select 1 (Manual entry , Manual allocation)
Allocation cost element
:1200001
Save Creation of cost centers: (Tr.code is KS01) Give the cost center
:Dept G
Valid from
: 01.04.2008 to 31.12.9999
Reference cost center
:Dept A
Controlling area
:BIL
Enter Change the name to Dept G Change the description to cost center :Dept G Person responsible
:MrG
Other things are common Select save button Cost center
:Dept H
Reference cost center
:Dept A
Controlling area
:BIL
Enter Change the name to Dept H Change the description to cost center:Dept H Change person responsible to Mr.H
Cost center category :select 9( Allocation cost center) Save Create of cost center group (Tr code is KSH1) Give the cost center group :BILPROD Enter Description :BIL Production cost center group Select insert cost center button Select cost center Dept G Save Define overhead keys: Path :SPRO-Controlling –Product cost controlling –Product cost planning basic settings for material costing - overheads-Define overhead keys Select new entries Overhead key
:BIL1
Description
:BIL Overhead key
Save Press enter to save in your request Define overhead groups Same path Select new entries button Valuation area
:BILP
Overhead group
:BIL1
Overhead key
:BIL1
Name of overhead group
:BIL over head group
Save Press enter to save in your request Note: Overhead rate will be given to overhead key Overhead key will be assigned to overhead group Overhead group will be specified in material master
Define calculation basis Path :SPRO-Controlling- Product cost controlling –Product cost planning-Basic setting for material costing –Over head –costing sheet components –Define calculation bases Select new entries button Base
:D1 (Text filed)
Name
:Raw materials
Base
:D2
Name
:Production cost
Save Press enter to save in your request Select D1 double click on details folder Controlling area
:BIL
Enter Select new entries button From cost element
:400000
To cost element
:400099 RM consumption
Save Select back arrow two times Select base D2 Production cost Double click on details folder Controlling area
:BIL
Enter Select new entries button From cost element
:400100
To cost element
:400299 Personnel & Manufacturing group
From cost element
:400500
To cost element
:400599 Depreciation a/c
From cost element
:1200001 Activity allocation
To cost element
:1200001
Save
Define percentage overhead rates: Same path Select new entries button Overhead rate
:D3
Name
:RM overhead rate
Dependency
:Select D010 Overhead type/Overhead key
Save Press enter to save in your request Select D3 Double click on details folder Ignore the warning message press enter Select new entries button
Valid from
To
Controlling area Overhead type Overhead key Percentage
01.04.2008 31.03.2009
BIL
01.04.2008 31.03.2009
BIL
Select 2 BIL1 5 (Planned overhead rate) RM key 1 (Actual overhead rate) BIL1
Select save button or Ctrl+S Press enter to save in your request Define Credits Same path Select new entries button Credit
:D4
Name
:BIL RM credit key
Save Press enter to save in your request Select
:D4
Double click on details folder Controlling area
:BIL
Enter Select new entries button
10
Valid to
:31.03.2009
Cost element
:1200000 RM overhead rate
Fixed percentage
:100%
Cost center
:Dept H (Allocation cost center)
Save Actual over head rate 10% Credit key D4 -1100000 Cost Dept.
1. RM1 Purchase/Receipt (Freight including) Inventory RM local DR 600000 To GR/IR clearing RM local 600000 2. Loading & Unloading charges Loading & Unloading charges Dr To Bank
7000 Dept H 7000
3. RM 2 Purchase Inventory RM local DR 300000 To GR/IR clearing RM local 300000 4. Loading & Unloading charges for RM 2 Lodging & unloading charges DR To Bank
3000 3000
1. RM Consumption for production Order 1-RM1 and RM2 RM consumption local DR RM Consumption local DR To Inventory RM local To Inventories RM local
40000 Order 1 20000 Order 1 40000 20000
2. RM consumption for production order 2 RM-1 and RM2 RM consumption local DR RM Consumption local DR To inventory RM local To Inventory RM local
10000 Order 2 30000 Order 2 10000 30000
In the month end RM material consumption Lodging & Unloading charges
100000 10000
% on consumption
10% actual overhead rate Cost center Dept H (Allocation cost center)
Loading & Unloading for RM1 7000 DR Loading & Unloading for RM2 3000 DR
Order 1 Order 2
6000 DR 4000CR
H Value will be zero Order 1 60000 6000 ----66000 =====
RM Consumption RM overhead rate (Actual 10%)
Order2 40000 4000 ----44000 =====
Indirectly we are allocating cost center Dept H values to production orders based on the consumption values. Define costing sheets: Path :Up to overhead the path is same- Define costing sheets Select new entries button Costing sheet
:BIL
Description
:BIL Costing Sheet
Save Press enter to save in your request Select
:BIL
Double click on costing sheet rows folder Select new entries button Row
Base
Overhead
10 20
D1 400000-400099
Raw materials D3
From To Row Credit
:10 :10 :D4
Row Base
:30 :D2
Description
RM Overhead rate
Description
:Product cost
Row Description From To row Save
:40 :Cost goods manufacturer :10 :30
Assign costing sheet to plant : Path :SPRO-Controlling –Product cost controlling –Product cost planning –Material cost estimate with quantity structure- Define costing variants (TR code is OKKN) Select position button Cost variant :Select PPC1 standard cost estimate (Materials) Enter Select PPC1 Select details button Select valuation variant button Select create beside valuation variant /plant Select new entries button In plant
:BILP
Save Press enter to save in your request Select back arrow Select valuation variant
:001 with plant BILP
Select details button Select overhead tab Give the costing sheet
:BIL costing sheet both in the places
Save Define cost component structure: To know the break up of standard product cost What is raw material cost? What is RM overhead cost ? What is production cost ?
Path :SPRO-Controlling –Product cost Controlling –Product cost planning –Basic settings for material costing –Define cost component structure . (OKTZ) Select cost component structure
:01
Double click on cost components with attributes folder Select component structure
:01 with cost component 10 raw materials
Double click on assignment:Cost component –cost element interval folder Select new entries button Cost competent structure
:01
Chart of s
:BIL
From cost element
:400000
To cost element
:400099
Cost component
:select 10 RM
Save Ignore the warning message press enter Press enter to save in your request Select back arrow Double click on cost components with attributes folder Select cost component structure 01 with cost component 80 Material over head Double click on assignment:Cost component cost element –Interval folder Select new entries button Cost component structure
:01
Chat of s
:BIL
From cost element
:1200000 RM overhead
Cost component
:80 Material overhead
Save Press enter to save in your request Double click on cost components with attributes folder Select cost component structure
:01 with lost component 50 production machine
Double click on assignment cost component –cost element interval folder Select new entries button Cost component structure
:01
Chat of s
:BIL
From cost element
:400100
To cost element
:400299
Cost component
:select 50 production machine
One more Cost component structure
:01
Chat of s
:BIL
From cost center
:400500
To cost center
:400599
Cost component
:50
One more Cost component structure
:01
Chat of s
:BIL
From cost element
:1200001
Cost component
:50
Save Double click on cost component structure folder For cost component structure 01 select active check box Save For cost component structure assignment structure 02 also for cost component Note: The above procedure is to be followed to 02 also PP CONSULTANT JOB: Define MRP controller Path :SPRO-Production –material requirements Planning –Master data-Define –MRP controllers Select new entries button Plant :BILP MRP controller :Mr.A Save Press enter to save in your request
Notes: Define floats (Scheduling margin key) Floats –Buffer days or grace days
2 days grace days 08.12.2008 10.12.2008 10.12.2008 12.12.2008 11.12.2008 13.12.2008 15.12.2008 17.12.2008
Production order creation Production order release Production start date Production end date
Path :SPRO-Production –Material requirements planning –Planning –Scheduling and capacity parameters –Define floats (Scheduling margin key) Select new entries button Plant
:BILP
Margin key
:BIL
Opening period
:2 days
Float before production
:2 days
Float after production
:2 days
Release period
:2 days
Save Press enter to save in your request Define production scheduler Path :SPRO-Production-Shop floor control- Master data-Define production scheduler Select new entries button Plant :BILP Production scheduler :B Description :Mr.B Save Press enter to save in your request Determine person responsible for work center Path :SPRO-Production –Basic data –Work center –General data –Determination person responsible Select new entries button Plant :BILP Responsible person : Mr.C Person responsible for work center :Mr.C Save Press enter to save in your request CO END AREA: Planning cost center wise (KP06)
Version
:0
From period
:9 (December)
To period
:9 (December)
Fiscal year
:2008
Give the cost center
:Dept G
Select page down button or next page button Cost element
:400100 Salaries A/c
Select from based radio button Select overview screen button (F5) For 400100 Plant fixed cost
:720000
Save Planning for machine hours Path :ing –Controlling –Cost center ing –Planning-Activity output /PricesChange (KP26) Version
:0
From period
:9
To period
:9
Fiscal year
:2008
Select next page or page down button Cost center
:Dept G
Activity type
:BIL
Select form based radio button Select overview screen button Plant activity
:72000
Save
calculation of Machine hour rate Path :Up to planning the path is same – Allocations –Price calculation (KSPI) Select cost center group radio button Cost center group select :BILPROD Execute Select save button Ignore the message press enter
MM END AREA Creation of material master
(MM01)
A) Raw material 2 B) Finished product 1 Give the material
:BILRM2
Industry sector
:Mechanical Engineering
Material type
:Raw material
Press select view button Select basic data1
:Select purchasing Select general plant data /storage /ing
Select organization levels button Plant
:BILP
Storage location
:Hyderabad
Enter Give the description :Raw material 2 Base unit of measurement :KG Material group
:BILC
Division
:BS
Select purchasing tab Purchasing group
:BIL
Select ing 1 tab Valuation class
:BIL1 RM Local
Price control
:select V moving
Moving price
:150
Save One more material
:BILFG1
Industry section
:Mechanical engineering
Material type
:Finished product
Press select view button Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1, ing , Costing 1
Select organizational levels button /enter Enter Plant
:BILP
Storage location
:Hyderabad
Enter Description
:Finished product 1
Base unit measurement :KG Division
:BS
Select MRP1 tab MRP type
:select PD (MRP)
MRP controller
:A
Lot size
:select EX lot for –lot order quantity
Select MRP 2 tab In –house production :0 days Schedule margin key :select BIL Select MPR 3 tab Ignore the warning message press enter Availability check
:select KP (no check )
Select work scheduling tab Production scheduler :B Select ing tab Valuation class
:BIL2 Finished products
Price control
:S (Standard price)
Standard price
:300
Select costing one tab Overhead group
:select BIL1
Save Note :BOM=Bill of Material PP END AREA Creation of Bill of Material Path :Logistics –Production –Master data –Bills of material –Bill of material –Material BOM –Create (CS01)
Give the material
:BILFG1
Plant
:BILP
BOM usage
:select 1 production
Enter For item
:10
Give the component
:BILRM1
Quantity
:1
Item
:20
Give the plant
:BILRM2
Quantity
:1
Save Creation of work center Path :Up to mater data the path is same –Work centers –then work centers-create (CR01) Plant
:BILP
Work center
:Dept G
Work center category
:select 0001 Machine
Select basic data button Give the description
:Dept G
Person responsible
:Mr.C
Usage
:009
Under standard value maintenance Standard value key
:SAP1 Normal production
Select costing tab Start date
:01.04.2008
Cost center
:Dept G
For machine activity :Give activity type BIL Activity unit
:H (Hour)
Formula key
:SAP002 (Production machine time)
Save Creation of routings
Path :Up to master data the path is same –Routings –Routings –Standard routings –Create (Tr code is CA01) Give the material
:BILFG1
Plant
:BILP
Enter Usage
:select 1 production
Status
;select 4 (released (general))
Select operation button For operation 10 give the work center
:Dept G
Control key
:select PP01 in hour production
Double click on operation
:10
Machine standard value
:5
Unit
:H (Hour)
Save Note: Routing is process flow as a department wise CO –END AREA Creation of cost estimate with quantity structure: Path :ing –Controlling –Product cost controlling –Product cost planning-Material costing –cost estimate with quantity structure –Create (Tr code is CK11N) Give the material
:BILFG1
Plant
:BILP
Costing variant
:select PPC1 (standard cost estimate for material )
Enter Costing date from
:Today’s date
Note :In live environment next month first day date, this is planning date, In training institution use today’s date Costing date to
:31.12.9999
Quantity structure date
:08.12.2008
Valuation date
:08.12.2008
Enter Cost sheet Raw materials
BIL RM1 BILRM2
1 Kg 1Kg
75 150
225
RM overhead cost -5% Production costs 5*10 Machine hours 5 Hrs Machine hour rate 10Rs
11 50 ----286
From the menu select Costs –>Display cost components Select save button or Ctrl+S Enter Marking and releasing Display material master Path :Logistics –Materials management –Material master-Material –Display –Display current (MM03) Material :BILFG1 Press select views button Select costing 2 view Enter Plant :BILP Enter A) Marking and releasing Display material master 1. Making updates future price in live environment on 21st February create estimate for March and store in the System. 2. Realizing updates current price on 1st of March release stock valuation will be at the new rate from 1st of March B) Marking and releasing : Path :ing –Controlling –Product cost controlling –Product cost planning – material costing –Price update (CK24) Posting period
:9
Fiscal year
:2008
Company code
:BIL
Plant
:BILP
Material
:BILFG1
Select test run check box
Select marking allowance button Select company code
:BIL
Costing variant
:select PPC1 (Standard cost estimate for materials)
Save Select back arrow Deselect test run check box Execute Select material
:BILFG1
Select costing to tab Select back arrow two times Select release button Execute Select material
:BILFG1
Select costing to tab
ACTUAL COSTING CO consultant Job 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) (Tr.code is 0PL1) 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
:BILP
Save Press enter to save in your request Select back arrow Select valuation variant
:006 with plant BILP
Select details button Select overhead tab Give the costing sheet
:BIL costing sheet
Save Select back arrow Select costing variant PPP2 production Order Actual Select details button Select valuation variant button Select create beside valuation variant/plant Select new entries button In plant
:BILP
Save Press enter to save in your request Select back arrow Select valuation variant 007 with plant :BILP Select details button Select overhead tab Costing sheet
:select BIL costing sheet
Save Define goods received valuation for order delivery: Same path Select new entries button Valuation area :BILP Valuation variant :007 production order -Actual Save Press enter to save in your request Work in process customization Creation of 5 secondary cost elements (Tr code is KA06) Give the cost element
:1100000
Valid from
:01.04.2008 to 31.12.9999
Enter Name & Description
:Order /Project result analysis
Cost element category
:select 31 (order /project results analysis)
Save Cost element
:1100001
Reference cost element
:1100000
Controlling area
:BIL
Enter & Save Cost element
:1100002
Reference cost element
:1100000
Controlling area
:BIL
Enter & Save Cost element
:1100003
Reference cost element
:1100000
Controlling area
:BIL
Enter & Save Cost element
:1100004
Reference cost element
:1100000
Controlling area
:BIL
Enter Save Define results analysis keys Path :SPRO-Controlling –Product cost controlling –Cost object controlling –Product cost by order –Period end closing –Work in process –Define results-Analysis keys (Tr code is OKG1) Result analysis key :FERT WIP calculation for production orders Define results analysis versions(Tr code OKG9) Same path Select new entries button Select controlling area :BIL Technical result analysis cost element :select 1100000 Save Press enter to save in your request Define valuation method (Actual cost) ( Tr code is OKGC) Same path
Select new entries button Select actual cost button Controlling area
:BIL
Result analysis version :0 Result analysis key
:FERT
Enter & Save Press enter to save in your request Define line Id’s Same path Purchase of to get the break up of WIP (Work In Progress)value Select line ID EL (Revenues) EK
Direct cost
FK
Production cost
ABR settled cost for controlling area 1000 Select copy as button (F6) Change the controlling area to BIL for all line ID’s Enter & Save Press enter to save in your request Define Assignment (OKGB) Same path Select line ID EL that is revenues for controlling area
:1000
Select copy as button Change the controlling area to BIL Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999) Enter & Save Press enter to save in your request Select line ID :EK Direct cost for controlling area 1000 Select copy as button Change the controlling area to BIL Change mass cost element to 00004000++ Enter and save Select line ID FK that is production cost for controlling area 1000
Select copy as button Change the controlling area to BIL Production cost elements: 400100 -400199 Personnel 400200-400299 Manufacturing 400500-400599 Depreciation 1200001 Activity allocation
00004001++ 00004002++ 00004005++ 00012+++++
Change master key cost element to 00004001 Enter & Save Notes: for define assignment line ID brak up of WIP Dept A Issue RM
Dept B
ept C
work in progress
RM over head Production costs
100000
200000
Calculate internally WIP by using secondary cost elements and transfer to financial ing require the break up of WIP by using line ID’s and assignments to line ID’s. Select line ID FK production cost for controlling area BIL Select copy as button Change the mass cost element to 00004002++ Enter & Save Select 2FK line ID’s for controlling area BIL Select copy as button –Change masked cost element from first line ID 00004005++ Change to 00012+++++ Enter & save Select bank arrow Select line ID ABR Settled cost for controlling area 1000 Select copy as button Change the controlling area to BIL Change mass cost element to 0001000001 :(settlement cost element) Enter & save
Define update; (Tr.code is OKGA) Same path Select new entries button Controlling area
:BIL
Version
:0
Result analysis key
:FERT
Line ID
:select EL revenues
Category
:select N (costs not to be included)
Controlling area
:BIL
Version
:0
Result analysis key
:FERT
Line ID
:Select EK (Direct cost)
Category
:select K cost
WIP
:1100001
Revenues
:1100002
Controlling area
:BIL
Version
:0
Revenues analysis key :FERT Line ID
:FK production cost
Category
:select K cost
WIP creation
:1100003
Reserves creation
:1100004
Select page down button One more controlling area :BIL Version
:0
Result analysis key
:FERT
Line ID
:ABR settled cost
Category
:select A (Settled cost )
Save Press enter to save in your request Creation of two GL Masters: WIP entry
Work in process
DR
BS
To Increase /Decrease in WIP
P&L
CA(Current assets, Loans & Advances) Credit INC/DEC in stocks
FS00 Give the GL no.
:200123
Company code
:BIL
Select with template button Give the GL A/c No.200121 INV RM local Company code
:BIL
Enter Change short text to and GL A/c long text to work in process Other fields are common Save GL A/c No.300201 Company code :BIL Select with template button Give the GL A/c no.300200 Increase /Decrease stocks FG Company code
:BIL
Enter Change short text and GL A/c loge text to INC/DEC stocks – WIP (Work in Progress) Save Define posting result for setting work in process Path :Up to period end closing the path is same –Work in process –Define posting results for setting work in process (OKG8) Select new entries button Controlling area
:BIL
Company code
:BIL
Result analysis version :select 0 Result analysis category :WIPR (Work in Process with requirement to Capitalized) P & L A/c
:300201
Balance sheet
:200123
Save Press enter to save in your request Define results analysis version (OKG9) Same path Select controlling area
:BIL
select details button Select transfer to Financial ing check box Save Ignore the warning message press enter Press enter to save in your request
RM issue overhead production costs Dept A
Dept B
Dept D
FG not received Settle to s by using secondary costs elements break up WIP (BY using line IDs) Define variance keys: Path :Up to period end closing the path is same –Variance calculation :Define variance keys (OKV1) Select variance key 00001 Production order Select copy as button Change the variance key to BIL1 Change the name also variance key for BIL Enter & Save Define default variance keys for plants (OKVW) Same path Select position button Give the plant :BILP Enter For plant :BILP Assign variance key :BIL1 Save Press enter to save in your request Define target cost version: (OKV6) Notes:
Budgeted cost =Budgeted production Qty
*
Standard price
Standard cost =Standard quantity * Standard price Target cost =Actual production qty * Actual cost =Actual Production *
standard price
actual price
Path :Same path Select controlling area 1000 with target cost version 0 Select copy as button Change the controlling area to BIL Change the description to target cost version for BIL Enter & Save Press enter to save in your request Assign variance key in Material master Path :Logistics –Material management-Material master –Material –Change –Immediately (MM02) Give the material no.BILFG1 Press select views button Select costing 1 view Enter Give the plant :BILP Enter Variance key :select BIL1 Save Creation of cost element group (KAH1) Give the cost element group :BILPRODN Enter Description :Production cost element for BIL Select Edit-Cost element -Select insert cost element button 400100 400299 Personnel & Manufacturing 400500 400599 Depreciation 1200001 Activity allocation Save
Create allocation structure: Path :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
:B2
Text
:BIL Production differences allocation structure
Save Press enter to save in your request Select
:B2
Double click on assignments folder Select new entries button Assignment
Text
01
Direct costs(Raw materials)
02
Material overheads
03
Production costs
Save Select assignment 01 Double click on source folder From cost element
:400000
To cost element
:400099
Double click settlement cost elements folder Select new entries button Receiver category
:select G/L, GL
Select by cost element check box Save Double click on assignments folder Select assignment 02 Material overheads Double click on source folder From cost element
:1200000 RM overhead rate
Double click on settlement cost elements folder
Select new entries button Receiver category
:select G/L , GL
Select by cost element check box Save Double click on assignment folder Select assignment 03 production cost Double click on source folder Give the cost element group :BILPRODN save Double click on settlements cost elements folder Select new entries button Receiver category
:select G/L
Select by cost element check box Save Create settlement profile: Same path Select new entries button Settlement profile
:BIL
Description
:BIL production order differences settlement profile
Select to be settled in full radio button Allocation structure :B2 Default object type
:select G/L
Select % settlement check box Select equivalence number check box Select amount settlement check box Under valid receivers for GL :Select settlement required Document type
:SA
Maximum no.of distribution rules :999 Residence time
:12 months
Save Press enter to save in your request Define CO.No.range interval for the business transactions
RKL -Actual Activity Allocation KZPI- Actual overhead (Periodic) transactions code :KANK Give the controlling area
:BIL
Select maintain groups button Double click on RKL Double click on KZPI Select Co. No. range interval for BIL check box From the menu select –Edit –Assign element group Save Ignore the warning message press enter Define exchange rate for type P (Standard truncation for cost planning for INR to EURO (Transactions code OB08) Select new entries button Exchange rate type :P Valid from :01.12.2008 From currency :INR To currency :EUR Direct quotation :0.02 Save Press enter to save in your request FI Consultant job BILRM2 receipt Purchase order | GR | IV
Opening stock
Inventory RM local To Stock taking
DR GBB
BSX BSA
Current liability & provision
Production order differences are to be settled to s Production order differences manufacturing DR PRD To INC/DEC in stocks FG GBB AUA
Creation of 2 GL masters (FS00) Give the GL A/c No.400201 Company code
:BIL
Select with template button Give the GL A/c No. :400200 Conversion charges Company code
:BIL
Change short text and GL long text to production order differences Select create /bank/Interest tab Field status group change to G014 MM adjustment Save GL A/c No.
:100599
Company code
:BIL
Select with template button Give the GL A/c No.100500 VAT payable Company code
:BIL
Enter Select type /Description tab Chang short text and GL long text to Stock taking Select create /bank /interest tab Change the field status group G049 (manufacturing cost s) Save Give the GL no.300200 INC/DEC stock in FG Company code
:BIL
Select edit cost element button Valid from :01.04.2008 to 31.12.9999 Enter Cost element category
:select 22 external settlement
Save
Assignment of for automatic postings (OBYC) (See the material ) Double click on transaction PRD Cost (Price) differences Give the Chart of s
:BIL
Enter Save Give A/c No.400201 production order differences Save Press enter to save in your request Select back arrow Double click on GBB offsetting entry for inventory posting Valuation modifier
:X
General modification :BSA opening stock taking Valuation class
:BIL1
no.
:100599 stock taking
Valuation modifier
:X
General modification :AUA production Valuation class
:BILL
:300200
Save Press enter to save in your request PP CONSULTANTS AREA Define order type –Dependent parameters Path :SPRO-Production –Shop floor control-Master data –Order-Define order type dependent parameters. (Tr code is OPL8) Select plant
:1000 with order type PP01
Select copy as button Change the pant to BILP Enter and Save Press enter to save in your request Define scheduling parameters for production orders Path :Up to Shop floor control the path is same- Operations-Scheduling –Define scheduling parameters for production orders (Tr code is OPU3) Select plant Select copy as button
:1000 with order type PP01
Change the plant to BILP Enter and save Press enter to save in your request Define confirmation parameters Path :Up to shop floor control the path is same –Operations-Confirmation-Define confirmation parameters (OPK4) Select plant 1000 with order type PP01 Select copy as button Change the plant to BILP Enter and Save Press enter to save in your request Define checking control Path :Up to shop floor control the path is same –Operations –Availability check –define checking control (OPJK) Select business function
:1 & 2 for order type PP01 for plant 1000
Select copy as button Change the plant to BILP Enter Change the plant to BILP Enter and save Press enter to save in your request END AREA Creation of production order: Path :Logistics –Production-Shop floor control-Order –Create –with material (Tr code is CO01) Give the material :BILFG1 Production plant
:BILP
Planning plant
:BILP
Order type
:select PP01 Production order
Enter Give the total Qty under quantities :10
Start date & end date :Today’s date Select cost order button (Ctrl+F7) From the menu select Goto Costs –Analysis Select back arrow Select release order button (Ctrl+F1) Save From the menu select order display note the order no.60003225 Enter Select assignment tab Not to the reservation no.66076 Raw material receipt by way of opening stock Path :Logistics –Materials management –Inventory management –goods movement – Goods receipt –Other (Tr code is MBIC) Give the movement type
:561
Plant
:BILP
storage location
:HYD
Enter Give the material no.
:BILRM2
Quantity
:100 kgs
Select save button or Ctrl+S From the menu select other goods receipts display Enter Select ing documents button 200121
Inventory RM LCL 15000 BILRM2
BIL1 BSX
100599
Stock taking
GBB BSA
15000 BILRM2 100*150
Raw material issue to production order:(Tr code is MB1A) Select to reservation button Give the reservation no.66076 Enter
BIL1
Qty :15 :15
BIL RM1 BIL RM2 Save From the menu select goods issue display Enter Select ing documents button Select ing document no. 200121
Inventory RM local
1125 BILRM1BSX
BIL1
400000
RM consumption local 1125 BILRM1 GBB VBR BIL1 Quantity consumed * Avg rate ( 15 *75)
200121
Inventory RM local 2250 BILRM2 BSX BIL1
400000
RM consumption local 2250 Qty consumed * Avg. rate (15*150)
GBB VBR BILRM2 BIL1
Actual overhead calculation Path :ing –Controlling –Product cost controlling –Cost object controlling – product cost by order –Period end closing –single functions –Overhead –Individual processing (Tr code is KGI2) Give the order no.
:60003225
Period
:9
Fiscal year
:2008
Select text check box Select dialog display check box Execute Select back arrow Deselect text run check box Execute
Work in process calculation Path :up to single functions the path is same –Work in process –Individual processing – Calculate (Tr code is KKAX) Give the over no.
:60003225
WIP period
:9
Fiscal year
:2008
Result analysis version :select 0 Select test run check box Execute Select back arrow Deselect test run check box Execute Settlement of work in process to s (31.12.2008 (month end date) Path :Up to single functions the path is same –Settlement of individual processing (Tr code is K088) Give the order no.
:60003225
Settlement period
:9
Fiscal year
:2008
Deselect text run check box Select check transaction date check box Execute Select detail lists button Select ing documents button Select ing document no. 300201
INC/DEC in stock WIP 3713 P &L
200123
Work in Process 3713 Balance Sheet
(Actual RM +Actual RM overheads)
To view work in process report Path :ing –Controlling –Product cost controlling –Cost object controlling – Product cost by order –Information system –Reports for product cost by order –Object list –Order selection (Tr code is S_ALR_87013127) Plant Material number From period To Period Execute Select report call button
:BILP :BILFG1 :01 2008 :9 2008
Confirmation of production order Path :Logistics –Production –shop floor control –Confirmation –Enter-For operation – time ticket (Tr code is Co11N) Give the order no.
:60003225
Operation /Activity
:10 kg
Confirmation type
:select final confirmation
Yield to confirm
:10 kg
Fro activity 2 to confirm
:60 Qty
Unit
:H (Hour)
Save Production receipt Path :Logistics –Material management –Inventory management –Goods movement – Goods receipt for order (Tr code is MB31) Give document date
:31.12.2008
Posting date
:31.12.2008
Give the movement type
:101 (Goods receipt for order into ware house)
Order
:60003225
Plant
:BILP
Storage location
:HYD
Enter Ignore the warning message press enter Select save button or Ctrl+S From the menu select goods receipt display Document no.5000011861 Enter Select ing documents button Select ing document no. 200122 300200
Inventory FG 2860
BILFG1
BSX
INC/DEC in stocks FG 2860 BILFG1 Qty produced * standard rate 10*286 To make production order technically complete (TECO)
BIL2 GBB AUF BIL2
Path :Logistics –Production –shop floor control –Order –Change (Tr code is CO02) Give the order no.60003225 Enter From the menu select functions –Restrict processing –Technically complete Save Calculation of variances Path :ing –Controlling-Product cost controlling –Cost object controlling –Product cost by order - period ending closing –single functions- Variances –Individual processing (Tr code is KKS2) Give the order no.60003225 Select execute button Select back arrow Deselect text run check box Execute Double click on variance amount Open one more session for order display (CO03) Give the order no.60003225 Enter From the menu select go to cost analysis Calculation of work in process (KKAX) Path :Upto single functions same path –Work in Progress –Individual processingCalculate Work in process for Dec Production for Dec To calculate WIP once again work in process will be reserved and variances will be settled to s Give the order no.
:60003225
WIP to Period
:9
Fiscal year
:2008
Result analysis version:0 Deselect text run check box
Execute Settlement of work in process to s :KO88 Give the order no.
:60003225
Settlement period
:9
Fiscal year
:2008
Deselect test run check box Select check transaction date check box Execute Select details list button Select ing documents button Select ing document no. GBB AUA 300200 400201 300201 200123
INC/DEC in stocks FG 853 BILFG1 BIL2 Production order diff 853 period INC/DEC in stock WIP 3713 P & L debit work in process 3713 –Balance sheet credit
| | |
Product costing
Note: SAP lab :Product costing made easy BPB publication –Not covered product costing Crate a cost estimate with quantity structure Cost element with quantity structure At standard cost In the month end we get actual cost Variable will be settled to s How standard cost will be arrived at : Sales budget for next month Production budget Material requirement Planning | | (Make to orders (confirmed orders) (This is same men budget) + And make to stock (expected orders)) Overhead planning = Standard cost Cost sheet for the product BILFG1 Raw materials xx Raw material overheads xx Production costs xx Cost of goods manufactured (COGM) xx istration Expenses xx Sales & Distribution exp. xx ---Cost of goods sold (COGS) xx To check with client at what level he wants to value stocks At COGM level or At COGM + level Raw material standard cost For each product –we find out materials required For BILFG1 We required BILRM1 BILRM2 MM Module :Material Master ing view –moving average price BIL RM1 75 BILRM2 125 PP Module: Bill of Material (BOM) To produce BILFG1 what materials are required and how much quantity
BILRM1 1Kg BILRM2 1Kg Raw material standard cost =Quantity from BOM (PP)*Rate from Material Master (MM) (1*75)+1*125)=200 Raw material overheads Overheads like freight charges :At the time of receipt it will be added to material –At the time of consumption the material cost includes freight also. Overhead like loading and unloading normal amounts change directly to P & L clients will tell us-how much percentage can be taken on raw material cost (consumption.) 5% of raw material costs Eg: 250*5%=12.5 Production costs: Cost centers in PP Module :Work centers
Raw material
Dept A
Dept B Dept C
Dept D
Dept A Issue
Dept B Dept C Issue
Dept D Issue finished product
All products need not go through all the Departments Process flow for each product in PP module we call as routing. PP Module: Routing Raw material Wages Salaries Power
Dept A Issue
(Process flow) Dept B Dept D Issue Finished product
300000 100000 320000 ------Planned cost 720000 ===== Planned hours available Machines 100 working for 3 shifts (24 Hours ) No.of days 30 Days 100*30*24=72000 Machine hour rate 720000/72000=10 Rs (Activity type) To Produce BILFG1 Hours required 5Hrs Production cost 10*5=50
Production cost : (Hours required in Dept A * Machine hour rate)+(Hours required in Dept B* Machine hour rate )+ (Hours required in Dept D * Machine hour rate) Example : Why can’t we allocate based on production Production Qty 999 Kgs 1 Kg -----1000
BILFG1 BILFG2
Hrs Req 1 999 ----1000
Cost
720000
If we allocate cost based on production BILFG1 BILFG2
720000*999/1000=719280 720000*1/1000= 720 -------720000 ====== If we allocate cost based on hours required BILFG1 BILFG2
720000*1/1000 720000*999/1000
=720 =719280 ----------720000 ========
ACTIVITY BASED COSTING Co –Consultants job: 1. Creation of 2 secondary cost elements (Use Tr.code is KA06) A) RM overhead rate B) Activity allocation Give the cost element 1200000 Valid from 01.04.2008 to 31.12.9999 Enter Give the name and description
:RM Overhead rate
Cost element category
: Select 41 overhead rates
Save Cost element
:1200001
Enter Name and description
:Activity allocation
Cost element category
:select 43 Interval activity allocation
Save Creation of activity type –Machine hour: Path :ing –Controlling –cost Center ing –Master data –Activity typeIndividual processing –create (Transaction code KL01) Activity type
:BIL
Valid from
:01.04.2008 to 31.12.9999
Enter Give the Name & Description :Machine hour Activity unit
:select H
Cost center categories
:Select * (All cost center categories)
Active type category
:select 1 (Manual entry , Manual allocation)
Allocation cost element
:1200001
Save Creation of cost centers: (Tr.code is KS01) Give the cost center
:Dept G
Valid from
: 01.04.2008 to 31.12.9999
Reference cost center
:Dept A
Controlling area
:BIL
Enter Change the name to Dept G Change the description to cost center :Dept G Person responsible
:MrG
Other things are common Select save button Cost center
:Dept H
Reference cost center
:Dept A
Controlling area
:BIL
Enter Change the name to Dept H Change the description to cost center:Dept H Change person responsible to Mr.H
Cost center category :select 9( Allocation cost center) Save Create of cost center group (Tr code is KSH1) Give the cost center group :BILPROD Enter Description :BIL Production cost center group Select insert cost center button Select cost center Dept G Save Define overhead keys: Path :SPRO-Controlling –Product cost controlling –Product cost planning basic settings for material costing - overheads-Define overhead keys Select new entries Overhead key
:BIL1
Description
:BIL Overhead key
Save Press enter to save in your request Define overhead groups Same path Select new entries button Valuation area
:BILP
Overhead group
:BIL1
Overhead key
:BIL1
Name of overhead group
:BIL over head group
Save Press enter to save in your request Note: Overhead rate will be given to overhead key Overhead key will be assigned to overhead group Overhead group will be specified in material master
Define calculation basis Path :SPRO-Controlling- Product cost controlling –Product cost planning-Basic setting for material costing –Over head –costing sheet components –Define calculation bases Select new entries button Base
:D1 (Text filed)
Name
:Raw materials
Base
:D2
Name
:Production cost
Save Press enter to save in your request Select D1 double click on details folder Controlling area
:BIL
Enter Select new entries button From cost element
:400000
To cost element
:400099 RM consumption
Save Select back arrow two times Select base D2 Production cost Double click on details folder Controlling area
:BIL
Enter Select new entries button From cost element
:400100
To cost element
:400299 Personnel & Manufacturing group
From cost element
:400500
To cost element
:400599 Depreciation a/c
From cost element
:1200001 Activity allocation
To cost element
:1200001
Save
Define percentage overhead rates: Same path Select new entries button Overhead rate
:D3
Name
:RM overhead rate
Dependency
:Select D010 Overhead type/Overhead key
Save Press enter to save in your request Select D3 Double click on details folder Ignore the warning message press enter Select new entries button
Valid from
To
Controlling area Overhead type Overhead key Percentage
01.04.2008 31.03.2009
BIL
01.04.2008 31.03.2009
BIL
Select 2 BIL1 5 (Planned overhead rate) RM key 1 (Actual overhead rate) BIL1
Select save button or Ctrl+S Press enter to save in your request Define Credits Same path Select new entries button Credit
:D4
Name
:BIL RM credit key
Save Press enter to save in your request Select
:D4
Double click on details folder Controlling area
:BIL
Enter Select new entries button
10
Valid to
:31.03.2009
Cost element
:1200000 RM overhead rate
Fixed percentage
:100%
Cost center
:Dept H (Allocation cost center)
Save Actual over head rate 10% Credit key D4 -1100000 Cost Dept.
1. RM1 Purchase/Receipt (Freight including) Inventory RM local DR 600000 To GR/IR clearing RM local 600000 2. Loading & Unloading charges Loading & Unloading charges Dr To Bank
7000 Dept H 7000
3. RM 2 Purchase Inventory RM local DR 300000 To GR/IR clearing RM local 300000 4. Loading & Unloading charges for RM 2 Lodging & unloading charges DR To Bank
3000 3000
1. RM Consumption for production Order 1-RM1 and RM2 RM consumption local DR RM Consumption local DR To Inventory RM local To Inventories RM local
40000 Order 1 20000 Order 1 40000 20000
2. RM consumption for production order 2 RM-1 and RM2 RM consumption local DR RM Consumption local DR To inventory RM local To Inventory RM local
10000 Order 2 30000 Order 2 10000 30000
In the month end RM material consumption Lodging & Unloading charges
100000 10000
% on consumption
10% actual overhead rate Cost center Dept H (Allocation cost center)
Loading & Unloading for RM1 7000 DR Loading & Unloading for RM2 3000 DR
Order 1 Order 2
6000 DR 4000CR
H Value will be zero Order 1 60000 6000 ----66000 =====
RM Consumption RM overhead rate (Actual 10%)
Order2 40000 4000 ----44000 =====
Indirectly we are allocating cost center Dept H values to production orders based on the consumption values. Define costing sheets: Path :Up to overhead the path is same- Define costing sheets Select new entries button Costing sheet
:BIL
Description
:BIL Costing Sheet
Save Press enter to save in your request Select
:BIL
Double click on costing sheet rows folder Select new entries button Row
Base
Overhead
10 20
D1 400000-400099
Raw materials D3
From To Row Credit
:10 :10 :D4
Row Base
:30 :D2
Description
RM Overhead rate
Description
:Product cost
Row Description From To row Save
:40 :Cost goods manufacturer :10 :30
Assign costing sheet to plant : Path :SPRO-Controlling –Product cost controlling –Product cost planning –Material cost estimate with quantity structure- Define costing variants (TR code is OKKN) Select position button Cost variant :Select PPC1 standard cost estimate (Materials) Enter Select PPC1 Select details button Select valuation variant button Select create beside valuation variant /plant Select new entries button In plant
:BILP
Save Press enter to save in your request Select back arrow Select valuation variant
:001 with plant BILP
Select details button Select overhead tab Give the costing sheet
:BIL costing sheet both in the places
Save Define cost component structure: To know the break up of standard product cost What is raw material cost? What is RM overhead cost ? What is production cost ?
Path :SPRO-Controlling –Product cost Controlling –Product cost planning –Basic settings for material costing –Define cost component structure . (OKTZ) Select cost component structure
:01
Double click on cost components with attributes folder Select component structure
:01 with cost component 10 raw materials
Double click on assignment:Cost component –cost element interval folder Select new entries button Cost competent structure
:01
Chart of s
:BIL
From cost element
:400000
To cost element
:400099
Cost component
:select 10 RM
Save Ignore the warning message press enter Press enter to save in your request Select back arrow Double click on cost components with attributes folder Select cost component structure 01 with cost component 80 Material over head Double click on assignment:Cost component cost element –Interval folder Select new entries button Cost component structure
:01
Chat of s
:BIL
From cost element
:1200000 RM overhead
Cost component
:80 Material overhead
Save Press enter to save in your request Double click on cost components with attributes folder Select cost component structure
:01 with lost component 50 production machine
Double click on assignment cost component –cost element interval folder Select new entries button Cost component structure
:01
Chat of s
:BIL
From cost element
:400100
To cost element
:400299
Cost component
:select 50 production machine
One more Cost component structure
:01
Chat of s
:BIL
From cost center
:400500
To cost center
:400599
Cost component
:50
One more Cost component structure
:01
Chat of s
:BIL
From cost element
:1200001
Cost component
:50
Save Double click on cost component structure folder For cost component structure 01 select active check box Save For cost component structure assignment structure 02 also for cost component Note: The above procedure is to be followed to 02 also PP CONSULTANT JOB: Define MRP controller Path :SPRO-Production –material requirements Planning –Master data-Define –MRP controllers Select new entries button Plant :BILP MRP controller :Mr.A Save Press enter to save in your request
Notes: Define floats (Scheduling margin key) Floats –Buffer days or grace days
2 days grace days 08.12.2008 10.12.2008 10.12.2008 12.12.2008 11.12.2008 13.12.2008 15.12.2008 17.12.2008
Production order creation Production order release Production start date Production end date
Path :SPRO-Production –Material requirements planning –Planning –Scheduling and capacity parameters –Define floats (Scheduling margin key) Select new entries button Plant
:BILP
Margin key
:BIL
Opening period
:2 days
Float before production
:2 days
Float after production
:2 days
Release period
:2 days
Save Press enter to save in your request Define production scheduler Path :SPRO-Production-Shop floor control- Master data-Define production scheduler Select new entries button Plant :BILP Production scheduler :B Description :Mr.B Save Press enter to save in your request Determine person responsible for work center Path :SPRO-Production –Basic data –Work center –General data –Determination person responsible Select new entries button Plant :BILP Responsible person : Mr.C Person responsible for work center :Mr.C Save Press enter to save in your request CO END AREA: Planning cost center wise (KP06)
Version
:0
From period
:9 (December)
To period
:9 (December)
Fiscal year
:2008
Give the cost center
:Dept G
Select page down button or next page button Cost element
:400100 Salaries A/c
Select from based radio button Select overview screen button (F5) For 400100 Plant fixed cost
:720000
Save Planning for machine hours Path :ing –Controlling –Cost center ing –Planning-Activity output /PricesChange (KP26) Version
:0
From period
:9
To period
:9
Fiscal year
:2008
Select next page or page down button Cost center
:Dept G
Activity type
:BIL
Select form based radio button Select overview screen button Plant activity
:72000
Save
calculation of Machine hour rate Path :Up to planning the path is same – Allocations –Price calculation (KSPI) Select cost center group radio button Cost center group select :BILPROD Execute Select save button Ignore the message press enter
MM END AREA Creation of material master
(MM01)
A) Raw material 2 B) Finished product 1 Give the material
:BILRM2
Industry sector
:Mechanical Engineering
Material type
:Raw material
Press select view button Select basic data1
:Select purchasing Select general plant data /storage /ing
Select organization levels button Plant
:BILP
Storage location
:Hyderabad
Enter Give the description :Raw material 2 Base unit of measurement :KG Material group
:BILC
Division
:BS
Select purchasing tab Purchasing group
:BIL
Select ing 1 tab Valuation class
:BIL1 RM Local
Price control
:select V moving
Moving price
:150
Save One more material
:BILFG1
Industry section
:Mechanical engineering
Material type
:Finished product
Press select view button Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1, ing , Costing 1
Select organizational levels button /enter Enter Plant
:BILP
Storage location
:Hyderabad
Enter Description
:Finished product 1
Base unit measurement :KG Division
:BS
Select MRP1 tab MRP type
:select PD (MRP)
MRP controller
:A
Lot size
:select EX lot for –lot order quantity
Select MRP 2 tab In –house production :0 days Schedule margin key :select BIL Select MPR 3 tab Ignore the warning message press enter Availability check
:select KP (no check )
Select work scheduling tab Production scheduler :B Select ing tab Valuation class
:BIL2 Finished products
Price control
:S (Standard price)
Standard price
:300
Select costing one tab Overhead group
:select BIL1
Save Note :BOM=Bill of Material PP END AREA Creation of Bill of Material Path :Logistics –Production –Master data –Bills of material –Bill of material –Material BOM –Create (CS01)
Give the material
:BILFG1
Plant
:BILP
BOM usage
:select 1 production
Enter For item
:10
Give the component
:BILRM1
Quantity
:1
Item
:20
Give the plant
:BILRM2
Quantity
:1
Save Creation of work center Path :Up to mater data the path is same –Work centers –then work centers-create (CR01) Plant
:BILP
Work center
:Dept G
Work center category
:select 0001 Machine
Select basic data button Give the description
:Dept G
Person responsible
:Mr.C
Usage
:009
Under standard value maintenance Standard value key
:SAP1 Normal production
Select costing tab Start date
:01.04.2008
Cost center
:Dept G
For machine activity :Give activity type BIL Activity unit
:H (Hour)
Formula key
:SAP002 (Production machine time)
Save Creation of routings
Path :Up to master data the path is same –Routings –Routings –Standard routings –Create (Tr code is CA01) Give the material
:BILFG1
Plant
:BILP
Enter Usage
:select 1 production
Status
;select 4 (released (general))
Select operation button For operation 10 give the work center
:Dept G
Control key
:select PP01 in hour production
Double click on operation
:10
Machine standard value
:5
Unit
:H (Hour)
Save Note: Routing is process flow as a department wise CO –END AREA Creation of cost estimate with quantity structure: Path :ing –Controlling –Product cost controlling –Product cost planning-Material costing –cost estimate with quantity structure –Create (Tr code is CK11N) Give the material
:BILFG1
Plant
:BILP
Costing variant
:select PPC1 (standard cost estimate for material )
Enter Costing date from
:Today’s date
Note :In live environment next month first day date, this is planning date, In training institution use today’s date Costing date to
:31.12.9999
Quantity structure date
:08.12.2008
Valuation date
:08.12.2008
Enter Cost sheet Raw materials
BIL RM1 BILRM2
1 Kg 1Kg
75 150
225
RM overhead cost -5% Production costs 5*10 Machine hours 5 Hrs Machine hour rate 10Rs
11 50 ----286
From the menu select Costs –>Display cost components Select save button or Ctrl+S Enter Marking and releasing Display material master Path :Logistics –Materials management –Material master-Material –Display –Display current (MM03) Material :BILFG1 Press select views button Select costing 2 view Enter Plant :BILP Enter A) Marking and releasing Display material master 1. Making updates future price in live environment on 21st February create estimate for March and store in the System. 2. Realizing updates current price on 1st of March release stock valuation will be at the new rate from 1st of March B) Marking and releasing : Path :ing –Controlling –Product cost controlling –Product cost planning – material costing –Price update (CK24) Posting period
:9
Fiscal year
:2008
Company code
:BIL
Plant
:BILP
Material
:BILFG1
Select test run check box
Select marking allowance button Select company code
:BIL
Costing variant
:select PPC1 (Standard cost estimate for materials)
Save Select back arrow Deselect test run check box Execute Select material
:BILFG1
Select costing to tab Select back arrow two times Select release button Execute Select material
:BILFG1
Select costing to tab
ACTUAL COSTING CO consultant Job 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) (Tr.code is 0PL1) 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
:BILP
Save Press enter to save in your request Select back arrow Select valuation variant
:006 with plant BILP
Select details button Select overhead tab Give the costing sheet
:BIL costing sheet
Save Select back arrow Select costing variant PPP2 production Order Actual Select details button Select valuation variant button Select create beside valuation variant/plant Select new entries button In plant
:BILP
Save Press enter to save in your request Select back arrow Select valuation variant 007 with plant :BILP Select details button Select overhead tab Costing sheet
:select BIL costing sheet
Save Define goods received valuation for order delivery: Same path Select new entries button Valuation area :BILP Valuation variant :007 production order -Actual Save Press enter to save in your request Work in process customization Creation of 5 secondary cost elements (Tr code is KA06) Give the cost element
:1100000
Valid from
:01.04.2008 to 31.12.9999
Enter Name & Description
:Order /Project result analysis
Cost element category
:select 31 (order /project results analysis)
Save Cost element
:1100001
Reference cost element
:1100000
Controlling area
:BIL
Enter & Save Cost element
:1100002
Reference cost element
:1100000
Controlling area
:BIL
Enter & Save Cost element
:1100003
Reference cost element
:1100000
Controlling area
:BIL
Enter & Save Cost element
:1100004
Reference cost element
:1100000
Controlling area
:BIL
Enter Save Define results analysis keys Path :SPRO-Controlling –Product cost controlling –Cost object controlling –Product cost by order –Period end closing –Work in process –Define results-Analysis keys (Tr code is OKG1) Result analysis key :FERT WIP calculation for production orders Define results analysis versions(Tr code OKG9) Same path Select new entries button Select controlling area :BIL Technical result analysis cost element :select 1100000 Save Press enter to save in your request Define valuation method (Actual cost) ( Tr code is OKGC) Same path
Select new entries button Select actual cost button Controlling area
:BIL
Result analysis version :0 Result analysis key
:FERT
Enter & Save Press enter to save in your request Define line Id’s Same path Purchase of to get the break up of WIP (Work In Progress)value Select line ID EL (Revenues) EK
Direct cost
FK
Production cost
ABR settled cost for controlling area 1000 Select copy as button (F6) Change the controlling area to BIL for all line ID’s Enter & Save Press enter to save in your request Define Assignment (OKGB) Same path Select line ID EL that is revenues for controlling area
:1000
Select copy as button Change the controlling area to BIL Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999) Enter & Save Press enter to save in your request Select line ID :EK Direct cost for controlling area 1000 Select copy as button Change the controlling area to BIL Change mass cost element to 00004000++ Enter and save Select line ID FK that is production cost for controlling area 1000
Select copy as button Change the controlling area to BIL Production cost elements: 400100 -400199 Personnel 400200-400299 Manufacturing 400500-400599 Depreciation 1200001 Activity allocation
00004001++ 00004002++ 00004005++ 00012+++++
Change master key cost element to 00004001 Enter & Save Notes: for define assignment line ID brak up of WIP Dept A Issue RM
Dept B
ept C
work in progress
RM over head Production costs
100000
200000
Calculate internally WIP by using secondary cost elements and transfer to financial ing require the break up of WIP by using line ID’s and assignments to line ID’s. Select line ID FK production cost for controlling area BIL Select copy as button Change the mass cost element to 00004002++ Enter & Save Select 2FK line ID’s for controlling area BIL Select copy as button –Change masked cost element from first line ID 00004005++ Change to 00012+++++ Enter & save Select bank arrow Select line ID ABR Settled cost for controlling area 1000 Select copy as button Change the controlling area to BIL Change mass cost element to 0001000001 :(settlement cost element) Enter & save
Define update; (Tr.code is OKGA) Same path Select new entries button Controlling area
:BIL
Version
:0
Result analysis key
:FERT
Line ID
:select EL revenues
Category
:select N (costs not to be included)
Controlling area
:BIL
Version
:0
Result analysis key
:FERT
Line ID
:Select EK (Direct cost)
Category
:select K cost
WIP
:1100001
Revenues
:1100002
Controlling area
:BIL
Version
:0
Revenues analysis key :FERT Line ID
:FK production cost
Category
:select K cost
WIP creation
:1100003
Reserves creation
:1100004
Select page down button One more controlling area :BIL Version
:0
Result analysis key
:FERT
Line ID
:ABR settled cost
Category
:select A (Settled cost )
Save Press enter to save in your request Creation of two GL Masters: WIP entry
Work in process
DR
BS
To Increase /Decrease in WIP
P&L
CA(Current assets, Loans & Advances) Credit INC/DEC in stocks
FS00 Give the GL no.
:200123
Company code
:BIL
Select with template button Give the GL A/c No.200121 INV RM local Company code
:BIL
Enter Change short text to and GL A/c long text to work in process Other fields are common Save GL A/c No.300201 Company code :BIL Select with template button Give the GL A/c no.300200 Increase /Decrease stocks FG Company code
:BIL
Enter Change short text and GL A/c loge text to INC/DEC stocks – WIP (Work in Progress) Save Define posting result for setting work in process Path :Up to period end closing the path is same –Work in process –Define posting results for setting work in process (OKG8) Select new entries button Controlling area
:BIL
Company code
:BIL
Result analysis version :select 0 Result analysis category :WIPR (Work in Process with requirement to Capitalized) P & L A/c
:300201
Balance sheet
:200123
Save Press enter to save in your request Define results analysis version (OKG9) Same path Select controlling area
:BIL
select details button Select transfer to Financial ing check box Save Ignore the warning message press enter Press enter to save in your request
RM issue overhead production costs Dept A
Dept B
Dept D
FG not received Settle to s by using secondary costs elements break up WIP (BY using line IDs) Define variance keys: Path :Up to period end closing the path is same –Variance calculation :Define variance keys (OKV1) Select variance key 00001 Production order Select copy as button Change the variance key to BIL1 Change the name also variance key for BIL Enter & Save Define default variance keys for plants (OKVW) Same path Select position button Give the plant :BILP Enter For plant :BILP Assign variance key :BIL1 Save Press enter to save in your request Define target cost version: (OKV6) Notes:
Budgeted cost =Budgeted production Qty
*
Standard price
Standard cost =Standard quantity * Standard price Target cost =Actual production qty * Actual cost =Actual Production *
standard price
actual price
Path :Same path Select controlling area 1000 with target cost version 0 Select copy as button Change the controlling area to BIL Change the description to target cost version for BIL Enter & Save Press enter to save in your request Assign variance key in Material master Path :Logistics –Material management-Material master –Material –Change –Immediately (MM02) Give the material no.BILFG1 Press select views button Select costing 1 view Enter Give the plant :BILP Enter Variance key :select BIL1 Save Creation of cost element group (KAH1) Give the cost element group :BILPRODN Enter Description :Production cost element for BIL Select Edit-Cost element -Select insert cost element button 400100 400299 Personnel & Manufacturing 400500 400599 Depreciation 1200001 Activity allocation Save
Create allocation structure: Path :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
:B2
Text
:BIL Production differences allocation structure
Save Press enter to save in your request Select
:B2
Double click on assignments folder Select new entries button Assignment
Text
01
Direct costs(Raw materials)
02
Material overheads
03
Production costs
Save Select assignment 01 Double click on source folder From cost element
:400000
To cost element
:400099
Double click settlement cost elements folder Select new entries button Receiver category
:select G/L, GL
Select by cost element check box Save Double click on assignments folder Select assignment 02 Material overheads Double click on source folder From cost element
:1200000 RM overhead rate
Double click on settlement cost elements folder
Select new entries button Receiver category
:select G/L , GL
Select by cost element check box Save Double click on assignment folder Select assignment 03 production cost Double click on source folder Give the cost element group :BILPRODN save Double click on settlements cost elements folder Select new entries button Receiver category
:select G/L
Select by cost element check box Save Create settlement profile: Same path Select new entries button Settlement profile
:BIL
Description
:BIL production order differences settlement profile
Select to be settled in full radio button Allocation structure :B2 Default object type
:select G/L
Select % settlement check box Select equivalence number check box Select amount settlement check box Under valid receivers for GL :Select settlement required Document type
:SA
Maximum no.of distribution rules :999 Residence time
:12 months
Save Press enter to save in your request Define CO.No.range interval for the business transactions
RKL -Actual Activity Allocation KZPI- Actual overhead (Periodic) transactions code :KANK Give the controlling area
:BIL
Select maintain groups button Double click on RKL Double click on KZPI Select Co. No. range interval for BIL check box From the menu select –Edit –Assign element group Save Ignore the warning message press enter Define exchange rate for type P (Standard truncation for cost planning for INR to EURO (Transactions code OB08) Select new entries button Exchange rate type :P Valid from :01.12.2008 From currency :INR To currency :EUR Direct quotation :0.02 Save Press enter to save in your request FI Consultant job BILRM2 receipt Purchase order | GR | IV
Opening stock
Inventory RM local To Stock taking
DR GBB
BSX BSA
Current liability & provision
Production order differences are to be settled to s Production order differences manufacturing DR PRD To INC/DEC in stocks FG GBB AUA
Creation of 2 GL masters (FS00) Give the GL A/c No.400201 Company code
:BIL
Select with template button Give the GL A/c No. :400200 Conversion charges Company code
:BIL
Change short text and GL long text to production order differences Select create /bank/Interest tab Field status group change to G014 MM adjustment Save GL A/c No.
:100599
Company code
:BIL
Select with template button Give the GL A/c No.100500 VAT payable Company code
:BIL
Enter Select type /Description tab Chang short text and GL long text to Stock taking Select create /bank /interest tab Change the field status group G049 (manufacturing cost s) Save Give the GL no.300200 INC/DEC stock in FG Company code
:BIL
Select edit cost element button Valid from :01.04.2008 to 31.12.9999 Enter Cost element category
:select 22 external settlement
Save
Assignment of for automatic postings (OBYC) (See the material ) Double click on transaction PRD Cost (Price) differences Give the Chart of s
:BIL
Enter Save Give A/c No.400201 production order differences Save Press enter to save in your request Select back arrow Double click on GBB offsetting entry for inventory posting Valuation modifier
:X
General modification :BSA opening stock taking Valuation class
:BIL1
no.
:100599 stock taking
Valuation modifier
:X
General modification :AUA production Valuation class
:BILL
:300200
Save Press enter to save in your request PP CONSULTANTS AREA Define order type –Dependent parameters Path :SPRO-Production –Shop floor control-Master data –Order-Define order type dependent parameters. (Tr code is OPL8) Select plant
:1000 with order type PP01
Select copy as button Change the pant to BILP Enter and Save Press enter to save in your request Define scheduling parameters for production orders Path :Up to Shop floor control the path is same- Operations-Scheduling –Define scheduling parameters for production orders (Tr code is OPU3) Select plant Select copy as button
:1000 with order type PP01
Change the plant to BILP Enter and save Press enter to save in your request Define confirmation parameters Path :Up to shop floor control the path is same –Operations-Confirmation-Define confirmation parameters (OPK4) Select plant 1000 with order type PP01 Select copy as button Change the plant to BILP Enter and Save Press enter to save in your request Define checking control Path :Up to shop floor control the path is same –Operations –Availability check –define checking control (OPJK) Select business function
:1 & 2 for order type PP01 for plant 1000
Select copy as button Change the plant to BILP Enter Change the plant to BILP Enter and save Press enter to save in your request END AREA Creation of production order: Path :Logistics –Production-Shop floor control-Order –Create –with material (Tr code is CO01) Give the material :BILFG1 Production plant
:BILP
Planning plant
:BILP
Order type
:select PP01 Production order
Enter Give the total Qty under quantities :10
Start date & end date :Today’s date Select cost order button (Ctrl+F7) From the menu select Goto Costs –Analysis Select back arrow Select release order button (Ctrl+F1) Save From the menu select order display note the order no.60003225 Enter Select assignment tab Not to the reservation no.66076 Raw material receipt by way of opening stock Path :Logistics –Materials management –Inventory management –goods movement – Goods receipt –Other (Tr code is MBIC) Give the movement type
:561
Plant
:BILP
storage location
:HYD
Enter Give the material no.
:BILRM2
Quantity
:100 kgs
Select save button or Ctrl+S From the menu select other goods receipts display Enter Select ing documents button 200121
Inventory RM LCL 15000 BILRM2
BIL1 BSX
100599
Stock taking
GBB BSA
15000 BILRM2 100*150
Raw material issue to production order:(Tr code is MB1A) Select to reservation button Give the reservation no.66076 Enter
BIL1
Qty :15 :15
BIL RM1 BIL RM2 Save From the menu select goods issue display Enter Select ing documents button Select ing document no. 200121
Inventory RM local
1125 BILRM1BSX
BIL1
400000
RM consumption local 1125 BILRM1 GBB VBR BIL1 Quantity consumed * Avg rate ( 15 *75)
200121
Inventory RM local 2250 BILRM2 BSX BIL1
400000
RM consumption local 2250 Qty consumed * Avg. rate (15*150)
GBB VBR BILRM2 BIL1
Actual overhead calculation Path :ing –Controlling –Product cost controlling –Cost object controlling – product cost by order –Period end closing –single functions –Overhead –Individual processing (Tr code is KGI2) Give the order no.
:60003225
Period
:9
Fiscal year
:2008
Select text check box Select dialog display check box Execute Select back arrow Deselect text run check box Execute
Work in process calculation Path :up to single functions the path is same –Work in process –Individual processing – Calculate (Tr code is KKAX) Give the over no.
:60003225
WIP period
:9
Fiscal year
:2008
Result analysis version :select 0 Select test run check box Execute Select back arrow Deselect test run check box Execute Settlement of work in process to s (31.12.2008 (month end date) Path :Up to single functions the path is same –Settlement of individual processing (Tr code is K088) Give the order no.
:60003225
Settlement period
:9
Fiscal year
:2008
Deselect text run check box Select check transaction date check box Execute Select detail lists button Select ing documents button Select ing document no. 300201
INC/DEC in stock WIP 3713 P &L
200123
Work in Process 3713 Balance Sheet
(Actual RM +Actual RM overheads)
To view work in process report Path :ing –Controlling –Product cost controlling –Cost object controlling – Product cost by order –Information system –Reports for product cost by order –Object list –Order selection (Tr code is S_ALR_87013127) Plant Material number From period To Period Execute Select report call button
:BILP :BILFG1 :01 2008 :9 2008
Confirmation of production order Path :Logistics –Production –shop floor control –Confirmation –Enter-For operation – time ticket (Tr code is Co11N) Give the order no.
:60003225
Operation /Activity
:10 kg
Confirmation type
:select final confirmation
Yield to confirm
:10 kg
Fro activity 2 to confirm
:60 Qty
Unit
:H (Hour)
Save Production receipt Path :Logistics –Material management –Inventory management –Goods movement – Goods receipt for order (Tr code is MB31) Give document date
:31.12.2008
Posting date
:31.12.2008
Give the movement type
:101 (Goods receipt for order into ware house)
Order
:60003225
Plant
:BILP
Storage location
:HYD
Enter Ignore the warning message press enter Select save button or Ctrl+S From the menu select goods receipt display Document no.5000011861 Enter Select ing documents button Select ing document no. 200122 300200
Inventory FG 2860
BILFG1
BSX
INC/DEC in stocks FG 2860 BILFG1 Qty produced * standard rate 10*286 To make production order technically complete (TECO)
BIL2 GBB AUF BIL2
Path :Logistics –Production –shop floor control –Order –Change (Tr code is CO02) Give the order no.60003225 Enter From the menu select functions –Restrict processing –Technically complete Save Calculation of variances Path :ing –Controlling-Product cost controlling –Cost object controlling –Product cost by order - period ending closing –single functions- Variances –Individual processing (Tr code is KKS2) Give the order no.60003225 Select execute button Select back arrow Deselect text run check box Execute Double click on variance amount Open one more session for order display (CO03) Give the order no.60003225 Enter From the menu select go to cost analysis Calculation of work in process (KKAX) Path :Upto single functions same path –Work in Progress –Individual processingCalculate Work in process for Dec Production for Dec To calculate WIP once again work in process will be reserved and variances will be settled to s Give the order no.
:60003225
WIP to Period
:9
Fiscal year
:2008
Result analysis version:0 Deselect text run check box
Execute Settlement of work in process to s :KO88 Give the order no.
:60003225
Settlement period
:9
Fiscal year
:2008
Deselect test run check box Select check transaction date check box Execute Select details list button Select ing documents button Select ing document no. GBB AUA 300200 400201 300201 200123
INC/DEC in stocks FG 853 BILFG1 BIL2 Production order diff 853 period INC/DEC in stock WIP 3713 P & L debit work in process 3713 –Balance sheet credit
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