CO DOC

SAP CO NOTESINDEX

PARTICULARS Page No.CO Areas and Basic Settings for Controlling 3Cost Center Accounting 11Online Reconciliation Leger 23 1. Creation of GL Masters 2. CO Customization 3. FI Customization

252728

Cross Company Code Postings 31Maintain Overhead structure 34Statically Key Figures (SKF) 38Assessment 42Internal Orders 46Budgeting and Availability Control 60Profit Center Accounting 64Integration 76

1. Transaction Key /Process Key2. Valuation Class3. Assignment of accounts 4. MM Customization 5. FI Consultant job in MM 6. Assignment of Accounts for Automatic Postings(MM to FI)7. FI Consultant job in SD8. SD Steps9.

7778899097100

115

Co-Profitability Analysis (CO-PA) 1. Data flow in CO-PA 2. Customization 3. SD End user area

120120122126

Report Painter 129Product Costing 132

1. Co Consultant Job (Activity based costing)2. PP Consultant job3. CO End User area4. MM End User area5. PP End user area

134144146147149

Actual Costing 1531. CO Consultant job2. PP consultant area3. Asset Accounting area

153167174

New General Ledgers (ECC 6 New Features ) 1. Customization 2. Document Splitting

179180188

Central Excise and Sales Tax 1. Central Excise Customization (Purchase) 2. Central Excise customization (Sales) 3. SD End user area

192195211217

Financial Statement Version 228Asset Accounting Area 237Project Report 238

1

CONTROLLING (CO)

This is used for internal reporting in Co organizational Hierarchy – Highest node is controlling area. In FI Highest node is company , Company code

CO AREAS :

1. Cost Elements Accounting: To update Co records / sub modules cost elements are required.

There are two types of cost elements1. primary cost elements2. Secondary cost Elements

2. Cost Center Accounting: This is used to view department wise costs.

3. Internal orders: This is used to view costs for specific task.

Eg: Vehicle wise running expenses / Petrol expenses, Repairs to that Vehicle, Telephone wise expenses production order costs / Exhibition costs.

Create each vehicle as n order and capture the costs

Production order:Create production order as on internal order and capture the costs.

Exhibition costs: Sales men salaries , Advertisement discounts to customers conveyance. Create a exhibition order

4. Profit center accounting : This is used to view profitability product wise / Division wise / Location wise if business area is not used in FI

5 Product Costing :This is used for valuation if inventoriesEg: Finished goods and work in process.

6. Profitability analysis: This is used to view profitability for number of parameters at a time.Eg. Sales order wise / Customer wise / Product wise / Plant wise / Sales organization wise profitability this is reporting tool

BASIC SETTINGS FOR CONTROLLING:Maintain controlling area

FI Organization Structure CO. Organization Structure

Company Controlling| |

Company code || |

Business area Cost Center

Scenario – 1

Company|

Company code = Controlling Area| |

Business area --- Cost Center

2

(a)Controlling area at company code level, b)Business area will be assigned in cost centers.)

Scenario -2

Company = Controlling Area| |

Company code || |

Business area --- Cost Center

(a )Controlling area at company (group) level no. of company codes will have one controlling area, b) Business area will be assigned in cost centers.

1) When management wants to view number of company codes cost centers data at a time – It is not possible in 1st Scenario – It is possible 2nd scenario.

In report it will ask only one controlling area and not multiple controlling area.

2) When management wants to view number of cost centers data of company code – Directly it is possible in 1st scenario.

Also it is possible in 2nd Scenario – By creating cost center groups.

It means 2nd Scenario is more flexible.

MAINTAIN CONTROLLING AREA:

Path : SPRO – Controlling – General controlling – Organization – Maintain controlling area (Tr.Code is OKKP)

If we go for 1st scenario – company code should be the controlling area.

If we go for 2nd scenario we can use any code for controlling area code.

Double click maintain controlling area.

Select new entries button

Controlling area :BILName :controlling area forBILCompany code to controlling area : Select controlling area same as company code Currency type : select 10 company code currency.

Once we select 10 company code currency , currency field, Chart of Accounts filed and Fiscal year variant filed will be updated automatically.

Cost Center standard hierarchy : BILHIERSaveSelect yes button for the message system to create as a standard hierarchy Select create request buttonShort description : Co customization for BIL

Press enter Press enter once again to save in the request.

3

COST CENTER STANDARD HIERARCHY:Cost center standard hierarchy : BILHIER

|Cost centers Dept. ADept.B Dept.C

At the time of cost center creation – It will ask under which hierarchy we are creating the cost centers.

In the report – when we give cost center Dept.A – It gives only Dept.A date. When we give cost center Dept.B – It gives only Dept.B date.

When we give cost center hierarchy BILHIER – It gives all the cost centers data.

Double click on assignment of company codes folder


Give the company code : BIL

Select save button or Ctrl+S

Press enter to save in your request

Double click on a activate components / control indicators folder


Fiscal year :2007

Cost center : Select component active

Select active type check box

Order management select component active.

Select profit center accounting check box

Save

Ignore the warning message press enter

MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS:

1. CO through posting from FI (Business transaction – COIN

CO No rang interval for the business transaction –COIN

FI Document type CoAnd no.ranges

SA COIN| |01 ||

1-100000 1-00000Manual posting F-02 Automatic posting

1. Repost Co line items (Business transaction –RKU3)

4

Option 1

Posting in FI

Wages A/c Dr 100000 Dept.AWages A/c Dr 200000 Dept.BWages A/ Dr 300000 Dept C

To bank 600000

1 FI Document 1 Co Document – COIN

Note :Automatic posting is a business transaction

Option 2

Posting in FI Posting in CO

Wages A/c Dr 600000 Dept common Dept A 100000Dept.common Dept B 200000Dept. Common Dept C 300000

To Bank 600000 Post Co line item

2 Documents1 FI Document No FI document 1 CO Document –COIN 1 CO Document – RKU3

Transfer document wise/line item wiseTotal documents generated

1. FI Document 2. CO Documents

Wages A/c Dr 600000 Dept Common Dept A 300000Dept Common Dept B 200000Dept Common Dept C 300000

Rent A/c Dr 50000 Dept ATo bank 650000 Repot CO line item

Transfer line item wise

Transfer document wise / Line item wise

Report costs ( Business transactions – RKU1)

This is used when we split the cost center into number of cost centers or transfer for wrong cost center postings.

No FI document will be generated

CO document only will be generated

Transfer cost element wise (GL Account wise) 01/07/2007 split into Dept A and Dept X

5

Dept A Dept X

30/04/2008 400100 Salaries 20000030/05/2008 400100 Salaries 25000030/06/2008 400100 Salaries 275000

----------400100 total 725000 400100 Salaries 200000

30/04/2008 400101 wages 10000003/05/2008 400101 wages 15000030/06/2008 400101 wages 125000

----------Total 400101 375000 400101 wages 125000

30/04/2008 400300 Rent 50000031/05/2008 400300 Rent 5000030/06/2008 400300 Rent 50000

--------400300 Total 150000 400300 Rent 40000

Planning primary costs ( Business transaction RKP1)

Planning cost center wise or no. range interval for all the types , budgeting cost center wise for each cost element.

Path: SPRO- Controlling – General controlling – Organization- Maintain number ranges for controlling document (T.Code is KANK)

Controlling area : BILSelect maintain groups buttonFrom the menu select group – InsertText: Co doc no. range interval for BILFrom number : 1To number :100000EnterDouble click on business transactions COIN

RKU3RKU1RKP1

Select Co.No.range interval for BIL check boxFrom the menu select Edit – Assignment element groupSaveIgnore the message press enter

Note :Usage of Version locked authorized person only Eg; Cost Accountant

MAINTAIN VERSIONS:

Version are nothing but budgets

Original budgets Version 0Revised budget version 1Re revised budget Version 2

We can compare actual with original budget, Revised budget and Re revised budget

Path: SPRO – Controlling –General controlling – Organization – Maintain versions

6

Select version 0 (Plant /actual version )

Double click on settings for each fiscal year folder

Give the controlling area : BIL

Enter


Fiscal year :2008

Exchange rate type :select B (Bank selling rate)

Once budgeting is completed at end user are a select version locked – So that no body can change budget figures.



Select bank arrow

Planning is made attend user area after planning’s completed we select version locked check box , no body can

change planned figures.

COST ELEMENT ACCOUNTING:

To update CO records / sub modules cost elements are required

There are 2 types of cost elements

1. Primary cost element 2 Secondary cost elementsA)Primary cost elements are our general ledger accounts

A)Secondary cost elements are other than general ledger accounts

B) Posting to primary cost elements are possiable

B) Postings to secondary cost elements are not possible. They are used to allocations / Settlements

Dept C Dept A Dept B(Service Dept) (Production Depts)Salaries 100000Wages 200000Power 5000In the month end, by using secondary cost element, we allocate costs from service to production Depts.

COST ELEMENT CATEGORIES

PRIMARY COST ELEMENT CATEGORIES:1. Primary cost / costs redacting revenues. This used for expenditure accounts3. Accrual / Deferral per surcharge :This is used for month end provisions only in CO

11. Revenues: This is used for income accounts

7

12. Sales Deduction: This is used for expenditure accounts like sales commission Trade discount where CO-Profitability analysis module is activated

22. External settlement( Settlement from CO – FI): This is used for allocation of internal order settlement to GL Accounts / Assets.

SECONDARY COST ELEMENT CATEGORIES:

21. Internal settlement (Settlement from CO to CO) This is used for allocation of internal order settlement cost to cost centers.

31. Order/ Project Results analysis: This is used for work in process calculations is product costing.41. Overheads rates :This is used for calculation of raw material overhead rate /

Production overhead rate in product costing .42. Assessment: This is used for allocation of primary cost element posing and secondary cost postings from one

cost center to other cost centers.43. Internal Activity Allocation: This is used for calculation of activity types in production cost.

Eg: Machine hours rate / labour hour rate in product costing.

COST CENTER ACCOUNTING

This is used to view department wise costs we use cost center accounting.1. Creation of primary cost elements, we can create

A) FI Area |B)CO Area |- Co Area C)Automatic creation |

2. Display cost elements created3. Creation of filed status group by making cost center required entry field4. Assign new filed status group in GL expenditure accounts5. Creation of cost centers.6. Creation of cost center groups.7. Creation of cost element groups8. To enter exchange rate for type M for INR to Euro9. Posting of transaction in FI10. To view cost center wise report.11. To view CO documents

1. A) Creation of primary cost element at FI areaUse to FS00 – GL masters creation Give the GL account number : 400100 Salaries AccountCompany code : BILForm the menu select GL Account displayNow select edit cost element buttonValid from date :01.04.2008To date :31.12.9999 comes automaticallyEnterCost element category : Select 1 (Primary cost / cost reducing revenues)Select save button or Ctrl+S

1. B) Creation of Primary cost element at CO area:Use transaction code FS00

Path: Accounting- Controlling- Cost element accounting-Master data-Cost element –Individual processing-Create primary (Tr.code KA01 )

Cost element : 400300 Rent Account

8

Valid from :01.04.2008 to 31.12.9999EnterCost element category :1 (primary cost /cost reducing revenue)Save

1. C) Automatic creation of primary cost elements:

1) Marked default settings (OKB2)

path : SPRO-Controlling-Cost element accounting-Master data – Cost elements –Automatic creation primary and secondary cost elements-Make default settings.(Tr.code is OKB2)

Give the chart of Accounts : BILEnterAccount from :400301Account to :499999Cost element category select 1SavePress enter to save in your request

Create batch input session (OKB3)Same path as above

Give the controlling area : BIL

Valid from :01.04.2008

Valid to :31.12.1999

Session name :BIL (This is text field)

Execute

Execute batch input session (Tr code is SM35)

Same path as above

Select session name : BIL

Select process button

Select session :BIL

Select display errors only radio button

Select process button

We get a message processing of batch input session completed.

Ignore the message & select exit batch input button

Display primary cost elements created (KA03)

Path: Accounting-Controlling-Cost element accounting-Mater data-Cost element –Individual processing – Display- (Tr code is KA03) Select drop down button beside cost element Give the Controlling area : BILEnter

9

Creation of field status group by making cost center required entry field: (Tr.Code is OBC4)

Select field status variant: BILDouble click on filed status groups folder

100000 equity share capital G001 We can’t make cost center required for balance sheet accounts

400100 Salaries Account G001For G004 we make cost center required and assign in salaries account (i.e in expenditure accounts)

Double click on field status group G004 cost accounts

Double click on General data

Text make it required entry field

Select next group button

Cost center select required entry filed

Select next page or page down button two times.

Business area make it option entry filed

Save


Assign group new field group in GL expenditure accounts (FS00)

Give the GL account 400100 salaries account

Company code :BIL

From the menu select GL account change select create / Bank / Interest tab

Filed status group change to G004

Save

Give the GL Account No.400300 Rent A/c

Company code :BIL

From the menu select GL account change

Change field status group to G004

Save

Creation of cost centers:

Path: Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-create (Tr.code is KS01)

Cost center : Dept A

Valid from :01.04.2008 to 31.12.9999

Enter

Give the name : Dept A

10

Give the description : Dept A

Person responsible :Mr.A

Cost center category : Select 1 production

Hierarchy area : select BILHIER

Business area :BILH

Currency :INR



One more cost center : Dept B

Valid from :01.04.2008 to 31.12.9999

Reference cost center : Dept A

Controlling area : BIL

Enter

Change the name to Dept B

Change the description to cost center Dept B

Change the person responsible : Mr B

Other fields are common

Select save button


Cost center : Dept C

Valid from :01.04.2008 to 31.12.9999



Enter

Change the name to : Dept C

Change the description to cost center : Dept C

Change person responsible to Mr.C

Cost center category : Select to 2 (service cost center)

Select save button or Ctrl+s


Creation cost center groups:Hierarchy : BILHIERCost centers Dept A Dept B Dept C Dept X Dept Y Dept ZCategory Production Prod Service Production Production ServiceBusiness Area HYD HYD HYD BGL BGL BGL

If we want to see all cost centers data – BILHIER

If we want to see production cost centers data – Create a cost center group and assign Dept A . Dept B, Dept X and Dept Y.

11

If we want to see HYD cost centers data cost – cost center group and assign Dept A, Dept b and Dept C

If we want so settled production cost centers data – create A cost center group and assign Dept A and Dept B

Path : Accounting – Controlling – Cost center accounting – Master data- Cost center group – Create (Tr.code is KSH1)

Give the cost center name : BILHYD PROD

Enter

Description Hyderabad production cost centers BIL

Select Edit Cost Center Insert cost center button

Select the cost centers Dept A

Dept B Save

Creation of cost Element group:

FI : Account groups Personnel cost CO:Dept wise personal cost or Administration

400100 salaries Create cost element group personnel and assign 400100 -400199

400101 Wages

400102 Bonus

400103 Staff welfare and Administration Create cost element group administration and assign 400300-400399

400300 Rent400301 Telephone exp400302 Petrol exp In the report center Dept A Dept C

OrCost center GRPCost elementOrCost element GRP personnel administration

Path: Accounting –Controlling-Cost center accounting-Master data-Cost element group –Create (Transaction code: KAH1)

Cost element group name : BILADMIN

Enter

Description : Administration expenses for BIL

Select insert cost element button (Shift+F4) (Edit –Cost element –Insert cost element)

From 400300 to 400399

Save

To enter exchange rate for type M for INR to EURO (Tr.Code is OB08)


Exchange rate type : M (Average rate)

12


From currency : INR

To : EUR

Direct quotation :0.02



Posting of transaction in FI Transaction code:F-02

Give the document date : Today’s dateType :SACompany code :BILPosting key :40Account :400100 salaries accountEnterGive the amount :500000Cost center : Dept AText :Salaries posting

One more expenditure

Post key :40Account :400300 Rent accountEnterAmount :100000Cost center : Dept AText : Rent postingPosting key : 50Account :200105 SBI current accountEnterAmount :*Business area :BILHText : Expenditure postingFrom the menu select Document Simulate Select save button or Ctrl+S

To view cost center wise report:

Path: Accounting –Controlling-cost center accounting –Information system-Report for cost center accounting-Line items –Cost centers: Actual line items (Transaction :KSB1)

Cost center select Dept A (if you want change the posting dates)

Select execute button

Keep the cursor and the first line item

Select document button

Select back arrow

Select change layout button (Ctrl+F8)

Select Document no.under column set

Select value in reporting currency under displayed columns

13

Select left arrow or show selected filed button

Select reference document no.under column set

Select value in report current under displayed columns

Select left arrow

Select business transition under column set

Select document no. under displayed columns

Select left arrow

Enter

To view co documents:Path :Up to reports for costs center accounting path is same -Line items – Co documents :Actual costs (transaction code is KSB5)

Document no. :1 to 100000ExecuteSelect folder button for document no.1

Report co line items:

Business transaction RKU3FI doc.13001 400100 Salaries 500000 Dept A 150000 Dept B

50000 Dept C

Report co line item002 400300 Rent 100000 Dept A003 200105 SBI 600000

Report co line itemTransfer document wise /line item wise , transfer line item wiseNo FI document will be generatedOnly document will be generated

Path: Accounting – Controlling-Cost center accounting –Actual postings-Report line items-Enter (Transaction code is KB61)

Select document no. :13Company code :BILFiscal year :2008ExecuteDouble click on line item no.1Amount under new account assignment 150000Cost center :Dept BSelect new item buttonSelect next buttonAmount under new account assignment 50000Cost center : Dept CSave

Go and see the cost center report KSB1

14

Give the cost center Dept A


To view cost element wise to total

Select cost element column

Select sub totals button

(Note:That is dues cost element wise total)

Repot costs (Business transaction RKU1)

This is used when we split a cost center in to number of cost centers or wrong cost center postings.No FI document will be generatedOnly CO document will be generatedTransfer cost element wise (GL account wise)

Path : Accounting-Controlling-cost center accounting –Actual postings-manual reporting of costs – Enter (Transaction code is KB11N)

Cost center (old) : Dept A

Cost element 400100 Salaries

Amount :100000

Cost center new: Dept C

One more cost center (old) : Dept A

Cost element :400300 Rent

Amount :25000

Cost center (new) : Dept C

Enter

Select save button or Ctr+S

Period lock:

FI COA) Transaction which effect FI and CO eg:COIN

To open To open

B) Transaction which effect only CO Eg.RKU3, RKU1

No check To open

C) Transaction which effect only FI Eg.Debit balance sheet and credit balance sheet

To open No check

Sept .08 March Oct 2008 to March 2009

An expenditure posting in FI for September. We can’t post since periods are not open.

Path: Accounting – Controlling-cost center accounting-Environment –Period lock-chang (Tr.code is OKP1)


Fiscal year :2008

Select actual button15

Select period :01

Select lock period button

Save

Set controlling area :(OKKS):

Path :up to Environment the path is same Set controlling area

Give the controlling area :BILEnterReal time integration of controlling with FI on line reconciliation ledgerThis is used when we get for 2nd scenario (no.of company codes having one controlling area ) all the company codes should use same Char of Accounts.

Planning cost center wise

Path :Accounting –Controlling cost center accounting –Planning –Cost and Activity inputs –Change (KP06)

Version :select 0 (Original budget)

From period :1

To period :12

Fiscal year :2008

Select next page or page down button

Cost center group :BILHIER

Cost element From :400000

Cost element To :499999

Free Form BsedIf we select radio button If we select from based radio button We have to select cost element from the drop down list and plan against the Climents

The cost element list in a available on screen plant against cost elements

Select form based radio button

Select overview screen button

For cost element 400100 Plan Fixed cost 1500000

Distribution key 1 Equal distribution

Select cost element 400100

From the menu select Goto –Period screen

Select back arrow

Fro cost element 400300 Plan fixed cost 960000

Distribution key 1

To plan for Dept B –Select next combination button

To go back to previous dept –select previous combination button

Save

16

To view variance report cost center wise

Path :Accounting – Controlling-Cost center accounting –Information system –Reports for cost center accounting –Plan /Actual comparisons –Cost centers: Actual /Plan/Variance (Tr code is S_ALR_87013611)

Controlling area :BIL

Fiscal year :2008

From period :10

To period :10

Plan version :0

Cost center Value :Dept A

Execute

Keep the cursor on Salaries A/c actual costs amount

Select call up report button

Double click on cost centers : Actual line items keep the cursor on the first line item.

Select document button

ONLINE RECONCILIATION LEDGER

Reconciliation used when when number of company codes having one controlling area – 2nd Scenario It can be at controlling area All the company codes should use the same Chart of Accounts due to online reconciliation ledger, it generated in a document in FI

BIL Controlling area

17

|------------------------------------------------------------------------| |

Company code BIL company code BSL| |

------------------------------------ ------------------------------------ | | | | | |

Dept A Dept B Dept C Dept X Dept Y Dept Z

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

Salaries A/c----------------------------------100000 |

|Out of 100000 salaries 20000 belongs to company code BIL

If we use the reconciliation account at cost center level and the 20000/- is transfer to company code BSL (Dept X) it passes the entry in financial automatically Here Reports at – No FI recordsIn BIL BooksBSL Dr 20000

To Salaries a/c 20000In BSL books

Salaries account Dr 20000To BIL a/c 20000

Customization at Finance:

To copy company code BIL customization including accounting to BSL

Path :SPRO-Enterprise structure – Definition –Financial accounting –Edit, copy, Delete, Check company code(T.Code EC01)

Double click on copy, delete, check company codeFrom the menu select organization object – copy organization object

From Company code :BIL

To company code : BSL

Enter

Select Yes for the message (for copy the GL accounts)

Select No button allocate a different local currency

Ignore the message press enter

Select create request button

Short description :Customization for Birla Steel Limited

Press enter

Enter once again to saving the request

Go on press enter till you got the message company code BIL copied to BSL with out 75 number range object

18


Select back arrow

Double click on edit company code data

Select position button

Give the company code :BSL

Enter

Select company code : BSL

Select address button

change the company name to : Birla Steel limited

Enter

save and Save in your request button

Assign company code to company

Path :SPRO-Enterprise structure-Assignment –Financial accounting-Assign company code to company

Select position buttonGive the company code : BILEnterFor the company code :BSL assign BIL(group name)Select save button or Ctrl+SPress enter to save in your request

Document type SA should allow inter company postings: (OBA7)

Select type : SA

Select details button

Select inter company postings check box

Save


Creation of GL Masters FS00

BIL Books BSL Books1) FI/CO reconciliation account under only expediter group which should not be a cost element 400150 –Personnel group

1)FI/CO reconciliation account under any expenditure group which should not be a cost element 400150 personnel group

2) Birla Steels limited, current assets, Loans & Advances 200160 Birla Steel Limited

2)Birla Industries Limtied current Assets, Loans & Advances 200161 – Birla Industries Limited

Same chart of accountsBIL chart of accounts BILBSL chat of accounts BILWhen we use same chart of accounts, account description should be same in all the company codes.

In BSL books – If we create account No.200160 – It takes Birla Steels Limited- we can not crate our account in our books.

19

Creation of GL masters FS00

Give the GL account no. :400150

Company code :BIL

Select with template button

Give the GL account o. :400100 Salaries

Company code : BIL

Enter

Change short text & GL account long text to FI/CO reconciliation account

Select create / bank /interest tab

Field status group change to ‘ICCF’ CO < -> FI reconciliation posting

Save

Give the GL Account No.200160

Company code : BIL


Give the GL Account No.200100 Cash A/c

Company code :BIL

Enter

Select type/Description /tab

Change short text GL account long text to BIRLA STEEL LIMITED

Select create / Bank/Interest tab

Filed status group change to G067

Deselect relevant to cash flow check box

Save

Give the GL account No.400150

Company code :BSL


Give the GL account 400150

Company code :BIL

Enter & Save


Company code :BSL



Company BIL

Enter

Select type / Description tab

Change short text +GL long text to Bila Industries limited

20

Save

Prepare cross company code Transaction (Transaction code is OBYA)

Path :SPRO-Financial accounting-GL accounting –Business transactions-Prepare cross company code transactions

Company code 1 BILCompany code2 BSLEnterPosted in BILcleared against BSLDebit posting key :40Account debit :200160 ( Birla Steel Limited)Credit posting key :50Account credit :200160Posted in BSLCleared against BILDebit posting key :40Account debit :200161 Bilra Industries LimitedCredit posting key :50Account credit :200161SavePress enter to save in your request

CO customization ( tr code is OKKP)

Maintain controlling area

Assign company BSL to controlling area BIL

Select controlling area :BIL


Company code to controlling area: Select cross company code cost accounting

Reconciliation ledger document type :SA (GL accounts document)

Double click on activate components / control indicators folder

Select company code validation check box

Double click on assignment of company codes folder

Select company code :BIL

Select copy as button

Change the company code to BSL

Enter & save


Activate reconciliation ledger (Tr code KALA) Note: Follow through path

Path:SPRO –Controlling –Cost element accounting-Reconciliation ledger-Activate deactivate reconciliation ledger

Double click on activate reconciliation ledger


21

Select Execute button


Define adjustment accounts for reconciliation posting (Tr code is OK17)Same path

Double click on define accounts for automatic postings

Select change account determination button

Save

Reconciliation account: Give the account no.400150 FI/CO

Save


FI CUSTOMIZATION

Define variant for real time integration:

Path :SPRO-Financial accounting (new) Financial accounting global setting (new) – Ledger-Real time integration of controlling with financial accounting –Define variants for real time integration


Variant for real time integration B1

Select real time integration active check box

Select account determination active check box

Key date active from :01.04.2008

Document type :SA

Ledger group (FI) :0L

Text variant for :BIL

Select cross company code check box

Select cross business area check box

Select cross profit center check box

Save


Assign variants for real time integration to company code:

Same path.


Company code :BIL

Variant :B1

Company code :BSL

Variant :B1

Save

22


Creation of cost center for company code BIL (KS01)

Give the cost center department X


To date :31.12.9999

Reference cost center :Dept A


Enter

Change the name to :Dept X

Change the description to cost center dept X

Change company code to BSL



Repost costs (F-02)

Cost center old :Dept ACost element :400100 Salaries Amount :20000Cost center new Dept XSave

To make text filed optional for field status group G004 cost accounts(Tr.code is OBC4)Select field status variant for BIL

Double click on field status groups folder

Double click field status G004

Double click on General data

Text make it optional entry field

Press enter to save in our request

Go and see the FI documents (Tr.code is FB03)

Select document list button

Give the company code :BIL

Enter the date :From date To Date

Execute

Double click on document no.

Select back arrow

Chang the company code to BSL

Execute

Double click on document no.

23

CROSS COMPANY CODE POSTINGS

Company code :BIL BSL

Outstanding expenses of BSL paid by BIL

BSL Dr 25000 Outstanding 25000To Bank 25000 To BIL 25000

Paying company code : BILCredit Bank :BIL 25000Debit outstanding exp :BSL 25000

Use the Transaction code :F-02

Give the document date :Today’s date Type :SACompany code :BILPosting key :50Account no. :200105 SBI CAEnterAmount :25000Business area :BILHText :outstanding expense payment on behalf of BSLPosting key :40Account no :100500 out standing exp.New company code :BSLEnterAmount :*Business area :BILHText :+From the menu select document SimulateDouble click third line itemBusiness area :BILHText :+Select next item buttonBusiness area :BILHText :+Select save button or Ctr+SPosting byCompany code :BIL

24

Cross company code no. :15 08

FI posted byCompany code :BSLCross company code no. :2 08

By viewing the cross company code document number – We know which company code has initiated the posting.

Select continue button

Accrual orders (Imputed cost calculation)

This is used for month end provision only in COThis is used for irregular expenses like BonusCost element category should be 3Accrual/ Deferral per surchargeDefine CO.No.range in interval for business

Transaction :KAZ1 – Actual cost center accrual

FI Month end provision1. Accrual / Deferral document

A. Bonus provision for Nov30.11.2008 Bonus A/c Dr.10000

To Out standing exp. 10000 Dept AB. Reverse next month 1st 01.12.2008

01.12.2008 Outstanding Exp. Dr.10000To Bonus A/c 10000 Dept A

C. Bonus provision for Dec.31.12.2008 Bonus A/c Dr 20000

To Out standing exp 20000 Dept A

2. Open item management A). Bonus provision for Nov.

30.11.2008 Bonus A/c Dr10000To Outstanding exp. 10000 Dept A

B). Bonus provision for Dec.31.12.2008 Bonus Dr.10000

To Outstanding exp 10000 Dept A

Month end provision

Number of companies will not prepare profit & loss and Balance sheet every month, the will not make provision in the books every month in year end, companies follow accrual basis of accounting. They make provisions for the whole year.

Expenditure for all the months Less (other than March)Expenditure for March More

In SAP when we take production an accounting entry will be generated automatically – Finished goods valuation will be based on costs for the month.

Stock valuation will be accrual orders Lower in all month other than March

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Accrual orders Higher in March

Create overhead structureSalaries 100000Bonus -10% on salaries 1000 Debit cost center credit cost center

Dep Dummy (No accounting entry)

In the month end Dept A

Bonus 1000 allocation to Dept A costs will be allocated to production orders – There by Dept A will be zero- production valuation will be correct.

Dept DummyBonus 1000

In the year end – in FI when we make bonus provision for the whole year.

31.03.2009 Bonus A/c Dr 1200000To Outstanding 1200000 Dept Dummy

Dept dummy values in the year end

31.03.2009 Dept dummy 1200000 April to March 10000*12 = 120000====== =====

In the year end Dept dummy values will be zero.

Creation of GL master bonus account – personnel cost (FS00) group:-

Give the GL Account No. :400105Company code :BILSelect with template buttonGive the GL account no. :400100 (salaries)Company code :BILEnterChange short and GL account long text to Bonus accountSaveSelect edit cost element button (F8)Valid from date :01.04.2008 to 31.12.9999EnterCost element category :Select 3 accrual deferral per surchargesave

Creation of cost center – Dept dummy (KS01)

Give the cost center : Dept dummy



Enter

Change name to Dept dummy

Change description to cost center: Department dummy

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Select save button


Maintain overhead structure:

Path:SPRO-Controlling –Cost element accounting-Accrual calculation –percentage method-maintain overhead structure (Transaction code is KSAZ)

Select create over head structure button (F7)Over head structure :BIL1Description :BIL overhead structureSelect save buttonRow Base

10 B1EnterGive the name salariesSelect create buttonRow O/H rate (Over head rate) Description FR To CR20 B2 Bonus 10 10 B3EnterGive the name BonusDependency :KRS1(controlling area)Select create buttonSaveIgnore the message press enterKeep the cursor on overhead structure BIL1Select assignment button (F5)Controlling area :BILSelect actual accrual radio buttonSelect continue button

Valid from valid to overhead structure1 2008 12 2008 BIL1

SaveDouble click on overhead structure BIL1

Keep the cursor on B1

From the menu select Goto calculation base

From cost element 400100

Save

Kept the cursor on B2

From the menu select Goto overhead rate

Valid from Valid to Actual overhead1 2008 12 2008 10%SaveFrom 10 To 10 Crdit B3

Keep the cursor on B3

From the menu select go to credit

Company code :BIL

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Business area :BILH

Valid to :12 2008

Cost element :400105

Cost center :Dept Dummy

Save

Define CO.no range interval for the business transaction KAZ1-Actual cost Center accrual:(Transaction Code KANK)

Give the controlling area :BIL

Select maintain group button

Double click on KAZ1- Actual cost center accrual

Select CO.No range interval for BIL check box

From the menu select Edit-Assigned element group

Save


1. Posting of salaries for the month of August F-02

Give the document date end posting date :03.08.2008

Date :03.08.2008

Type :SA

Company code :BIL

Posting key :40

Account no. :400100 Salaries A/c

Enter


Amount :100000

Cost center Dept A

Text :Salaries posting

Posting key :50

Account no :200105 SBI current Account

Enter

Amount :*

Business area :BILH

Text :+

From the menu select document Simulate and save

Accrual calculation (KSA3)

Accounting – Controlling –Cost element accounting-Actual postings –Accrual calculation

28

select cost center radio buttongive the cost center : Dept Aperiod :5fiscal year :2008deselect test run check boxselect details list check boxExecuteSelect next list level button

Go and see the cost center report KSB1

Give the cost center :Dept A

Posting date :01.08.2008 to 31.08.2008

Execute

Select back arrow

Give the cost center : Dept dummy

Execute

Bonus provision in the year end in FI Transaction F-02

Give the document date & Posting :31.03.2009Type :SACompany code :BILPosting key :40Account no. :400105 bonus accountEnterIgnore the warning message press enter Amount :10000Cost center :Dept dummyText :Bonus provision for the year 2008-09Posting key :50Account :100500 outstanding exp.EnterAmount :*Business area :BILHText :+Document – Simulate and save

Go and see the cost center report KSB1Give the cost center :Dept dummyPosting date :01.04.2008 to 31.03.2009Execute

STATICALLY KEY FIGURES (SKF)

This is used as a basis for allocation of costs from one cost center to other cost centers.Eg. Employee / Area/ Telephone calls

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Dept C Dept A Dept B(service Dept) (Production departments)Salaries 500000 No.of employee of A and BRent 100000 Sq.meter are of A & BTelephone Exp25000 No.of telephone calls of A & BEnter CO. No range interval for the business transaction.

RKS (Enter statistical key figures)SKF category Fixed Total

Fixed TotalIf we choose fixed, values If we choose totalTo SKF are common for all months in the year, if we don’t make changes in between Eg: Employee / Area

We have to enter values for SKF, for each and every monthEg: Telephone calls

No.of Employees No.of Telephone callsApril 2008 100 100 Aprl 2008 1000May 2008 | | May 1500June | | June 2000July | | JulyAug | | AugSep | | Sep

Oct | 150 Oct

Dec | | Dec Jan.’09 | | Jan 2009 Feb | | Feb March | | March

Define co.no range interval for the business transaction RKS-Enter Statistical key figures Transaction Code is (KANK )

Give the controlling area : BILSelect maintain groups button

Double click on RKS

Select Co.No.range interval for BIL check box

From the menu select Edit Assignment element group.

Save

Ignore the warning message press enter.

Create Statistical key figures

Path :Accounting – Controlling –cost center accounting master Data-Statistical key figures – Individual processing – Create (Tr.Code is KK01)

Give the statistical key figure :EMP

Enter

Give the Name :Employee

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Statistical key figure unit of measurement : Select EA each

Key figure category :Select fixed values under radio button

Save

Path : Accounting –Controlling – Cost Center accounting –actual postings-statistical key figures-Enter (Tr.code is KB31N)

Received cost center : Dept A

Statistical KF : EMP

Total quantity :500

Received cost center : Dept B

Statistical KF :EMP

Total quantity :250

Save

Period end closingIn the month end, we allocate costs from one cost center to other cost centers

Dept C Dept A Dept B(Service department) (Production departments)

Salaries 500000 no.of employee of A and BWages 300000 No.of employee of A and BRent 50000 Percentage basis

Basis of allocation can be percentage method statistical key figures method /activity type (machine hour / labour rate)

Allocation methods:1. Assessment :

A) Transfer primary cost postings and secondary cost postings.Dpt X Dept C Dept A Dept BWages 100000 Salaries 500000 Salaries 400000 Salaries 300000

Wages 300000 Rent 50000 Add all 85500 Add all from C 95000 10%

All from Dept X 100000 ---------- ----------- -----------

Less 950000 1255000 395000===== ======= =======

Allocation Primary cost postingsSecondary cost postings

B) Receiving cost centers can’t track original cost element Dept A and B will not show the transfer value –how much salaries wages and rent.

C) Define Co.No.range interval for business transaction RKIU actual overhead assessment.

2. Distribution A) Transfer only primary cost postings B) Receiving cost center can track original cost elements.

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C) Sender should be only cost center D) Define Co.No.range interval for the business transaction RKIV actual overhead distribution.

3. Periodic reposting: A) Transfer only primary cost postingsB) Receiving cost center can track original cost elements.C) Sender can be a cost center or interval order.D) Define Co.No.range interval for the business truncation.

RKIB periodic reposting.

4. Indirect activity allocation. A)Transfer only primary cost postings.B) Receiving cost center can track original cost elements.C) Sender should be only cost center.D) Transfer quantities as well as values.E) Define Co.No.range interval for the business truncation.

RKIL Indirect activity allocation .

Which over method we follow, we have to create cycles.

When the allocation basic is different for the cost elements in the cost center, we have to create number of cycles for number of segments for a cycle.

Dept C Dept A Dept B(Service Department) (Production departments)

Salaries 500000 No.of employees of A and BWages 300000 No.of employees of A and BRent 50000 Percentage basis

Option 1:

Cycle 1 Cycle 2(Salaries and wages allocation) (Rent allocations)

| |Segment 1 Segment 1

Option 2

Cycle 1 |

----------------------------------------------| |

Segment1 Segment2(Salaries and wages allocation) (Rent allocation)

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ASSESSEMENT

1. Creation secondary cost element : i.e (that is) assessment cost element :

Path: Accounting –Controlling –Cost element accounting-Mater data-Cost element –Individual processing –Create secondary (KA06)


Enter


Valid from :01.04.2008 to 31.12.9999

Enter

Name and description :Assessment cost element.

Cost element category :42 (Assessment )

Save

2. Define Co.No.range interval for the business truncation- RKIU-Actual overhead assessment Use the Truncation code :KANK


Select maintain groups button

Double click on RKIU

Select Co.No.range interval for BIL check box

From the menu select Edit –Assignment element group.


Creation of assessment cycle:

Accounting –Controlling –Cost center accounting-Period and closing –Current settings–Define assessment (Tr.code S_ALR_87005742) Give the cycle :BIL1Start date :01.04.2008EnterText : Assessment cycleSelect iterative check box.Select save button or Ctrl+SPress enter to save in your requestSelect iterative check boxDept C Dept A 60% 300000 54000Salaries 500000 Dept B 30% 150000 27000Less :Allocation 500000 Dept Z 10% 50000 9000

33

--------0

Add: Allocation 90000Less :Allocation 90000

-------0

Add: Allocation 1800

Dept ZWages 400000 Dept X 50% 225000 4500Add: Allocation 50000 Dept Y 30% 135000 2700

--------450000 Dept C 20% 90000 1800

Less : Allocation 450000-------0====

We have to run number of items to make both cost center values zero. If we select interactive check box, system will run number of items automatically till both cost center values become zero.

Select attaché segment button.

Segment name : Segment 1

Description : Salaries allocation

Assessment cost element :select 1000000

Sender rule :select posted amounts

Share in % :100

Select actual value origin radio button

Receiver rule :Select variable portions

Variable portion type :Select actual statistical key figures

Select sender / receivers tab

Sender cost center :Dept C

Under Cost element :400100 (Salaries a/c)

Under Receiver cost center group :BILHYDPROD

Select receiver tracing factor tab

Statistical key figure :EMP

Select receiver weight factors tab

Select save button or Crl+S


Select attaché segment button

Segment name segment2

Description :Rent allocation

Assessment cost element :1000000

Sender rules :Posted amount

Sharing in % :100%

34

Select actual value origin radio button

Select receive rule :Fixed percentages

Select senders/ receivers tab

sender cost center :Dept C

Cost element :400300 (Rent )

Receiver cost center group : BILHYDPROD

Select receiver tracing factor tab

Dept A 70

Dept B 30

Save


Go and see the cost center Report (Tr code is KSB1)

Give the cost center :Dept CPosting date :01.10.2008 to 31.10.2008ExecuteSelect cost element columnSelect sub totals button

Dept C A BSalaries 1500000 No.of employees

500 250100000 50000

Rent 25000 Percentage basis70 3017500 7500

Execution of assessment cycle:

Path :Accounting –Controlling –Cost center accounting –Period end closing-Single functions-Allocations –Assessment (KSU5)

Give the period :7 (October)

Fiscal year :2008

Deselect text run check box

Select details list check box

Cycle select :BIL1

Execute

Select receiver button

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INTERNAL ORDERS

This is used to view costs for a specific task.Eg. A) Vehicle wise running expenses Management has to task decision whether to sell the (or) keep the vehicle in company

A) petrol expenses for the vehicle B) Repairs to the vehicle

It we take GL accounts in FI –we will not create each vehicle wise petrol expenses and repairs account.

In cost center accounting –vehicles will be under administration cost center and the petrol expenses repairs and administration expenses will be posted to administration cost center.

By creating vehicle as an internal order we can get the costs.

B) Telephone expenses: If we want to know telephone wise expenses in FI –we will have one account for all telephones.If we take cost center –It will be entered in administration cost center - We can not get telephone wise expenses directly.By creating telephone as an order we can get telephone wise expenses.

C) Production order costs In a month no. of production orders will be executed. Some production orders consume more raw material and same production orders consume less raw material.If FI we have only GL account raw material consumption – We don’t know order wise consumption.By crating production order, we can get order wise costs.

D) Exhibition costs Company is conducting an exhibition

Salesmen salaries One account Conveyance Different accountAdvertisement Different accountDiscounts Different account

36

We don't know the exhibition costs by creating an order we can get exhibition costs

Orders will be of 2 types1)Real orders 2)Statistical orders

Settlement is possible settlement not possibleWe can settle order statistical orders are used for decision making

To Cost Center (Internal settlement)

From Co to Co GL Accounts Assets (External settlement )

(From CO to FI)When we transfer from cost center –To cost centers allocation by assessment / Distribution periodic reposting / Indirect activity allocation.

When we transfer from Internal order settlement.Eg. Telephone expenses Dr 50000 Cost center Dept

Order Tel no.66110883To Bank 50000

The cost will be allocation to production orders from COIn the production order valuation we can’t take.(50000+50000)We have to take only one time 50000

When we are posting to no. of cost objects are will be real and others will be statistical.

At the time of order creation there is a statistical order check box.A) When we select statistical order is statistical order check box.

Order is statistical (Automatically cost center will be real) B) If we don’t select statistical order check box

Order is real (Automatically cost center will be statistical )

Statistical order :Telephonewise expenses order we create as statistical order.

Telephone expense Dr 50000 Cost center Dept AOrder Telephone no.66611983 Statistical

To Bank 50000

Cost Center Dept ATelephone expenses 50000 Allocation to paid order 50000Cost center Dept A – ZeroIn the month end we allocation costs from Dept A to production orders there by cost center Dept A will be zero.

Order telephone no.66611983Telephone expenses 50000

Management can see telephone wise expense at any point of time afterwards.

Suppose we create order as real order Telephone expenses Dr 50000 Cost center Dept A

To Bank 50000 order telephone no.66611983 Real

37

Cost center c dataTelephone Expenses 50000 Order Telephone no.6661987Telephone expenses 50000 Allocation to production 50000

Order will be zeroIn the month end we allocate cost from order telephone no.66611983 to production order there by order will be zero.

Afterwards management can’t see telephone wise expense.

Creation of order types:

Path : SPR O –Controlling –Internal orders – order master data-Define order types (KOT2_OPA)


Order category :Select 01 Internal order (Controlling)

Enter

Order type :BILT

Description :Telephone orders for BIL

Planning profile :select 000001 (General budget /plant profile)

Object class :Select Over head cost

Select release immediately check box

Save

We get message no.range not processed


Select assign /change interval button beside no.reage interval

Double click order type :BILT

Select motor pool A-ZZZZZZZZZZZZ(External)

From the menu select Edit Assign element group

Save


Creation of filed status group by making cost center and internal order required entry fields (OBC4)

Select field status variant :BIL

Double click on field status group folder

Select field status group G004 cost accounts


Change the filed status group to G002

Change the text to cost accounts (CC & IO required) IO =Internal order

Enter

Save CC=Cost Center


38

Double click on G002

Double click on additional account assignment

CO /PP order make it required entry field.

Save

Creation of GL master telephone expense (FS00)

Give the GL account no.400305

Company code :BIL


GL account 400300 Rent account

Company code :BIL

Enter

Change short text and GL a/c long text to Telephone expenses

Select crate / Bank/Interest tab

Change the filed status group to G002

Save

Select edit cost element button

Valid from date :01.04.2008

Enter

Cost element category :Select 1

Save

Creation of Internal orders:

Path :Accounting –Controlling-Internal orders-Master data-Special functions –Order –Create (Tr code is KO01)

Order type :Select BILT

Enter

Order no. :BIL 66611983 (Telephone no.)

Description :Telephone order no.66611983

Company code :BIL

Business area :BILH

Select control data tab

Select statistical order check box

Save

One more order

Order type :BILT

Enter

Order :BIL66611984

39

Description :Telephone order no.66611984

Company code :BIL

Business area :BILH


Select statistical order check box

Save

Creation order group

Up to master data the path is same Order group Create (Tr code is KOH1)Give the order group name :BILHYDTELEnterDescription :Hyderabad order group (GRP)for BILSelect insert order button(Select menu bar Edit Order Insert Order) Select to orders :BIL66611983

:66611984Save

Posting of transaction in FI (F-02)

Document date :Today’s date

Type :SA

Company code :BIL

Posting key :40

Account no. :400305 Telephone exp

Enter

Give the amount :100000

Cost center :Dept A

Order :BIL66611983

Text :Telephone expenses

Posting key :50

Account no. :200105 (SBI current account )

Enter

Amount :*

Business area :BILH

Text :+

From the menu select –Document –Simulate and save

To view internal order wise report

Path :Accounting –Controlling-Internal order-Information system-Reports for Interval orders -Line items –Order -Actual line items-(Tr. Code is KOBI

Give the order no.BIL66611983Remove the order group

40

ExecuteKeep the cursor and telephone expense line item select document button

Planning order wise

Path :Accounting –Controlling –Internal orders –Planning –Cost and activity inputs –Change (KPF6)Version :0From period :8 (November)

To period :8

Fiscal year :2008


Give the order no. :BIL66611983

Cost element :400305 Telephone expense

Select from based radio button

Select view screen button


Total plan cost :75000


To view variant report order wise

Path :Accounting Controlling-Internal order –Information system-Reports for internal order-Plant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993)


Fiscal year :2008

From period :8 (Current month)

To period :8

Pant version :0

Order values :BIL66611983

Execute

Real orders:They are used for vehiclewise expenses

Petrol expenses Dr 50000 Order no.AP9Z1234To Bank 50000

In the month end:Cost center Dept A

Order no.AP9Z1234 Settle to Cost center Dept BCost center Dept C

Settlement can be percentage basis / ratio basis /Amount basis

Order No AP9A1234Petrol expenses 50000 Allocation Dept A 25000

41

Dept B 15000 Dept C 10000

------- ------50000 50000==== ====

Order will be zero

Petrol expense Dr 50000 Cost center:CommonOrder No.AP9Z1234 Statistical

To Bank 50000

In the month end from cost center common allocate to Dept A, Dept B and Dept C by assessment / Distribution / Periodic posting /Direct activity allocation.

Cost center commonPetrol Expenses 50000 Allocation to Dept A 25000

Dept B 15000 Dept C 10000

--------- -------50000 50000==== =====

Cost center will be zero

Order no.AP9Z1234Petrol expense 50000

=====

Management can see vehicle wise expenses at any point of item afterwards.

Creation of filed status group by making only internal order required entry filed (OBC4)

Select filed status variant :BIL

Double click on filed status group folder

Select field status group G002


Change field status group to G010

Change the text to cost accounts (IO required )

Enter and save


Double click on G010

Double cock additional account assignments

Cost center make it optional entry field

Save

Creation of GL master petrol expense under administration group (FS00)

42

Give the GL Account no. :400310

Company code :BIL


Give the GL account no.400300 Rent account

Company code :BIL

Enter

Change short text and long text to petrol expenses

Select create/bank /interest tab

Field status group :G010

Save


Valid from date :01.04.2008

Enter

Cost element category :01

Save

Creation of secondary cost element i.e. Statement cost element (KA06):

Give the cost element :1000001EnterName and description settlement cost element Cost element category :Select 21 internal settlement Save

Maintain allocation structure:

Path :SPRO-Controlling –Internal orders-Actual posting- Settlement-Maintain allocation structures


Allocation structure :B1

Text :BIL allocation structure

Save


Select :B1

Double click assignments folders


Assignment :01

Text :Vehicle expenses settlement

Save

Select :01

43

Double click on source folder

From cost element :400310 Petrol expenses

Save


Double click on settlement cost elements folder


Receiver category :Select CTR cost center

Settlement cost element :1000001

Save

Petrol expenses will be settled to cost center by using secondary cost element settlement cost element.Through orders.

Maintain settlement profiles:

Same path

Double click on maintain settlement profiles


Settlement profiles :BIL1

Description :BIL settlement profile


Select to be settled in full radio button

Double click on CTR cost center

Select % settlement check box

Select equivalence number check box

Select amount settlement check box

Under valid receivers

For cost center :Select settlement required

Max.no. distribution rules :999

Residence time :12 months

Save


Rule 1:Order no.AP9Z1234 settle cost center Dept A 30000Petrol expenses 50000 settle cost center Dept B 15000

Dept C 5000

Rule 2Order No.AP9Z1234 Settle to cost center Dept A 85%Petrol expenses 50000 Settle to cost center Dept B 10%

5%Order no.AP9Z1234 settle to cost center Dept 4:Petrol exp 50000 Dept 3:

44

Dept 1:

Maintain number range for settlement documents:Go through Same path (Tr.code is SNUM)


Double click on controlling area BIL

Select Standard accounting document check box

From the menu select EditAssign element group

Save


Creation of order type (KOT2_OPA)


Order category :Select 01 Internal order (controlling)

Enter

Give the order type :BILV Vehicle order type BIL

Settlement profile :BIL1

Budget profile :0000001 (General budget profile)

Object class select :Overhead costs

Select release immediately check box

Save

Ignore the message press enter save in your request

Select assign /Change intervals button beside no.range interval

Double click on BILV

Select motor pool A-ZZZZZZZZZZZZZZ external check box

From the menu select Edit –Assign element group.

Save


Define co.no.range interval for the business truncation K0A0-Actual settlement. Use the transactions code (KANK)



Double click on KOAO actual settlement

Select co.no.range interval for BIL check box

Form the menu select Edit –Assign element group.

Save


45

END USER AREA:

Creation of internal order (KO01)Give the order type :BILVEnter

Give the order :AP9Z1234

Description :Vehicle no.AP9Z1234

Company code :BIL

Business area :BILH


Deselect statistical order check box

Select settlement rule button

Category :CTR cost center

Settlement receiver :Dept A

Give the percentage :70

One more

Category :CTR

Settlement receiver :Dept B

Percentage :30

Save


Posting of petrol exp F-02

Give the document date :Today’s date

Type :SA

Company cod :BIL

Posting key :40

Account no. :400310 petrol exp.

Enter


Give the order no. :AP9Z1234

Text :Petrol exp.

Posting key :50

Account no. :200105 SBI current account

Enter

Amount :*

Business area :BILH

Text :+

46

From the menu select menu document –Simulate and save

Actual settlement :

Path :Accounting –Controlling-Internal order-Period end closing-Single functions-Settlement –Individual processing (K088)

Give the order :AP9Z1234

Settlement period :8 (current month)

Fiscal year :2008

Deselect test run check box

Select check transaction date check box


Select details list button

Note : Order means overall expenses Eg: Vehicle Expenses

Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs, Driver salary etc

BUDGETING AND AVAILABILITY CONTROL

For budgeting SAP has given availability controlOrder no.AP9Z1234Budget amount 500000

Option 1 Option2 Option 3Give Give warning GiveWarning To the user Error1 To the user And inform to

Budget managerIf actual amount exceeds 85% of budget 425000

OrIf the variance is above 20000 i.e actual 5200000

Or

Planning Budgeting1. We can plant cost element wise in the order 1.Budgeting will be done order wise2. We can do planning period wise in a year (Month wise)

2. Budgeting should be done year wise

3.Micro level (Lower level) 3. Marco level (High level)

47

Both Whichever activity comes firstOr

If a actual amount exceeds 70% of budget go for option1If actual amount exceeds 85% of budget go for option 2If actual amount exceed 100% of budget go for option 3

When we do budgeting it generate a document –We have to give budgeting –No. range interval only for 04 (Hard coded by SAP)

This is given at client level and not at controlling area level –it is not year specify.

Note : Order Eg.Vehicle Expenses

Cost element :Eg.Vehicle for petrol, repairs,Driver salary etc.,

Maintain no.range for budgeting:

Path :SPRO-Controlling-Internal orders-Budgeting / availability control-Maintain no.ranges for budgeting (Tr code is OK11)

Select change intervals button

Define tolerance limits for availability controlSame pathSelect new entries button


Profile :select 000001 General budget profile

Tr.group :++ all activity groups

Action :select 2 waring with mail to person response

Usage :85

Save


Specify exempt cost elements from availability control

Same path

Petrol expensesRepairsDrivers salary is Fixed cost

We can specify when we post to driver’s salary all with order AP9Z1234 –Even if, it exceeds 85% of budget no. message need to be given.

It is known expenditure

Select new entries buttonControlling area :BILCost element :400100 Salaries accountSavePress enter to save in your request

48

Maintain budget managerSame path



Order :BILV

Object class :OCost (Overhead cost)

User name :SAP user (budget manager)

Save


Budgeting order wise (END USER AREA)

Path :Accounting-Controlling –Internal order-Budgeting-Original budget –Change (Tr code is K022)

Order :AP9Z1234

Enter

For the period :500000 (Budget amount)

Over / budget also 500000

From the menu select Extras –Availability: Control –Activate

Save

Posting of petrol expenses (F-02)


Type :SA

Company code :BIL

Posting key :40

Account no. :400310 Petrol expenses

Enter


Order :AP9Z1234

Text :Petrol expense

Posting key :50


Enter

Give the amount :*

Business area :BILH

Text :+

From the menu select –Document –Simulate and save


49

To view in box of the budget managerPath :SAP MenuOffice –Work place (Tr code is SBWP)

Select inbox folderWe get a message accounting document no.

PROFIT CENTER ACCOUNTING

This is used to view profitability division wise /product wise /location wise if business area is not use in FI

Idea scenario

Company FI

50

|Company code FI

|Business area FI(Location)

|----------------------------------------------------------------------------------------| | | |Steel Cement Pharma Co-profit centerDivision Division Division Accounting| |Product wise Co profitability

Analysis

Option 1 Option 2Hyderabad location HYD BGL MOM

| | | |Steel Cement Pharma Steel cement Pharma

Profitability Profitability Balance sheet

The advantage of profit center accounting is it derives profit center automatically though derivation rules.A) In case of expenditure Tough cost centersB) IN case revenues Automatic account assignmentC) In case of balance Though business area

Sheet it items (Applicable for option 2)Eg:a) At the time of creation of cost center assign profit center

Dept A-Assign profit center steel b) At the time of posting

wages a/c Dr 500000 Dept A To Bank 500000

It updates cost center Dept A as well as profit center steel.

We have to create dunning profit center. At the time of posting, when there is no derivation rules, system updates dummy profit center. Transfer form dummy profit center to respective center. Create derivation rule so that future transactions will not go to dummy profit center. They will go to respective profit centers.

Set controlling area (OKKS)

Path :SPRO-Controlling –Profit center accounting-Basic settings-Set controlling area Give the controlling area :BILEnter

Maintain controlling area settings: (OKE5)(Follow through path )

Path :Up to base settings the path is same- Controlling area settings-Maintain controlling area settings

Standard hierarchy :BIL

Select elimination of business volume check box

Profit center local currency type :Select 20 Controlling area currency

Select confirm button

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Select store truncation currency check box

Save

Elimination of internal business volume

Purchase Material no. 1 Profit center steelOrder Vendor no. 1234| Plant HYD| Profit center Steel| Qty 1 Kg| Rate 100GoodsReceipt

It should no take in steel profit center 100+100It should take only one time

Create dummy profit center

Path :SPRO-Controlling-Profit center accounting-Master data-Profit center-Create dummy profit center(Tr code is KE59)

Double click on dummy profit center

Give the dummy profit center :BIL dummy

Select basic data button

Name :BIL dummy

Description :Dummy profit center for BIL

Profit center group :BIL

Save

Set control parameters for actual date

Path : Up to basis settings the path is same Controlling area settings -Activate direct postings-Set control parameters for actual data (Tr code is 1KEF)

Select new entries buttonFrom year :2008Select Line items check boxSelect online transfer check boxSave

Maintain plan versions

Up to activate the path is same

Plan version Maintain plan version

Select version :0 Plan /Actual Version

Double click on settings for profit center accounting folder


Year :2008

52

Select online transfer check box

Select line items check box

Exchange rate type :B (bank selling rate)

Save


Define no. ranges for local documents

A) At the time of creation of cost center –Assign profit centerDept A-Assign profit center

B) At the time of postingWages A/c 500000 Dept A

To Bank 500000When there is no derivation rule –It updates dummy profit centerTransfer from dummy profit center

To Profit center steel

No FI document will be generated No co document will be generated once profit center document will be generated (local)

Path :SPRO-Controlling-Profit center Accounting-Actual postings-Basic settings: Actual –Define number ranges for local documents (Tr code is GB02)


Select actual document from direct posting with GB01 check box

From the menu select interval Maintain


Enter

Select interval button

Year :2008

From no :1

To :100000

Enter and save


Select back arrow

Select planned doc.with direct posting with GB01 check box

Form the menu select interval maintain


Enter


Year :2008

From no. :100001

To no. :200000

Enter and save

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Creation of profit center:

Path :Accounting-Controlling-Profit center accounting-Master data-Profit center-Individual processing-Create (Tr code is KE51)

Give the profit center :Steel

Select master data button

Analysis period to :01.04.2008 to 31.12.9999

Name :Steel

Long text :Profit center steel

Person responsible :Mr A

Profit center group :BIL

select activate button (Shift+F1)

One more profit center

profit center cement select master data buttonname :Cementlong text :Profit center cement person responsible :Mr Bprofit center group :BILselect activate button

Create account groups

up to master data the path is sameAccount group create (Tr code is KDH1)

Give the account group name :PLITEMS ( Profit & Loss)

Enter

Description :P & L accounts for BIL

Select insert account button

From :300000

To :499999

Save

Select Back Arrow

Account groups :BSITEMS

Enter

Description :Balance sheet accounts for BIL

Select insert account button

Form A/c :100000

To A/c :299999

Save

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Assign profit center in cost center

Path :Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-Change (KS02)


Select master data button

Give the profit center :Steel



Cost center :Dept B

Enter

Profit center :Cement

Save


Creation of sales account as revenue element (FS00)

Give the GL account no. :300000 Sales A/c

Company code :BIL


Enter

Cost element category :Select 11 Revenues

Save

Maintain automatic account assignment of revenue elements

Path :SPRO-Controlling –Profit center accounting –Actual postings-Maintain automatic account assignment of revenue elements (Tr code is OKB9)


Company code :BIL

Cost element :300000 Sales A/c

Account assignment details :Select 2 Business area is mandatory

Save


Select :BIL with cost element 300000

Double click on detail per business area /valuation area folder


Option 1 Option 2

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HYD location |

Steel cement Pharma HYD BGL MUM 300000 | | |HYD Steel Steel Cement Pharma 300001 Sales cement 300000 Sales accountHYD Cement 300002 Sales pharma HYD SteelHYD Pharma BGL Cement

Mum Pharma

Business area : BILHProfit center : SteelBusiness area : BILBProfit center : CementSave

Choose addition balance sheet and p & L accounts

Applicable for second scenario: Application for second option

Same path Select choose accounts (Tr code is 3KEH)

select new entries button

Account from :100000

Account to :299999

Default profit center :Steel

Save


Select profit center determination button

Select crate step button

Step description :Profit center derivation though business area for balance sheet

items.

Select drop down button under name column

Select GSBER businesses area

Save

Select maintain rule values button

Select source field intervals on /off button

Account no.100000

To account no.299999

Business area :BILH

Profit center :Steel

Account no :100000

To account no. :299999

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Business area :BILB

profit center :Cement

Save

END USER AREA1) Planning profit center wise for p & L items

Path :Accounting –Controlling –Profit center accounting –Planning –cost /Revenues-Change (Tr code is 7KE1)

Version select :0

From period :8

To period :8

Fiscal year :2008

Company code :BIL



Account group :PLITES



Per account no.300000 Sales account

Profit center reporting currency :600000 (Minus report currency)

For account no.400100 salaries A/c without any sign

Save

Planning profit center wise for balance sheet items (Only for second scenario)

Up to planning the path is same Balance sheet accounts change (Tr code is 7KE3)

Version :0

From period :8

To period :8

Fiscal year :2008

Company code :BIL

select next page or page down button

Profit center steel

Account group :BSITEMS



For account :100300 SBI rupee term loan

Profit center reposting currency 20000- with minus sign

For 200105 SBI current account profit centers reporting currency 200000 without any sign

57

Save

Posting of cash sales (F-02)


Type :SA

Company code :BIL

Posting key :40

Account no. :200105 (SBI current account)

Enter

Amount :550000

Business area :BILH

Text :sales posting

Posting key :50

Account no. :300000 (Sales a/c)

Enter

Amount :*

Business area :BILH

Text :+

Form the menu select Document –Simulate and save

Posting of salaries (F-02)

Document date :Today’s date

Type :SA

Company code :BIL

Posting key :40

Account no. :400100 Salaries a/c

Enter


Cost center :Dept A

Text :Salaries posting

Posting key :50


Enter

Amount :*

Business area :BILH

Text :+

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Document –simulate and save

To View variance report profit center wise for P & L items

Path :Accounting –Controlling –Profit center accounting-Information system-Repost for profit center accounting-Interactive reporting –Profit center group:Plan /actual /variance (Tr code is S_ALR_87013326)

From period :8 (Current /Running month)

To period :8

Fiscal year :2008

Plan version :0

Profit center values :steel

Profit center accounts groups :PLITEMS


To view variance report profit center wise for balance sheet items:

Up to interactive reporting the path is same Profit center group: Balance sheet accounts plant / Actual /Variance (Tr code S_ALR_87013336)

From period :8 (Running month)

To period :8

Fiscal year :2008

Plan version :0

Profit center values :Steel

Balance sheet account group :BSITEMS

Execute

Transfer of values from one profit center to another profit centerOne cost center works for no.of profit centers we an assign only one profit center is cost center.In dept A Profit center steelFrom profit center steel transfer to cement Manual transfer through cycles

No.FI document will be generatedNo.CO document will be generatedOnly profit center document will be generated.

Path :Accounting –Controlling-Profit center accounting-Actual postings-Profit center document –Enter (Tr code is 9KE0)

Layout select 8A-001 document :Profit center /account


Company code :BIL

Select Enter screen button


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Account no. :400100 Salaries

In profit center local currency 500000 –(with minus sign)


Account no. :400100 Salaries

Amount :500000 (without minus sign)

Save

INTEGRATION

Organization structure :

FI: Business area

Company |

Company code MM:- Structure SD: Structure

Business area | Factory / Sales organization Company code level /| Plants Branch/Port | Regional location| | |

Storage locations Raw material / Finished goods Distribution-> Direct sales through/Packing material Channel Agents

| |Division Product groups/ products

Why we create port as a plant:

Keep the material on shipHYD Chennai CustomerFactory Port

Export sale – Terms of delivery-FOB (Free on Board) ownership will be transferred once we kept the martial on ship.

60

Business area will be assigned to plants, plants will be assigned to sales organization business area will be assigned to sales organizations.

In SD module, combination of sales organization, distribution channel and division –One sales area.

Sales Area 1 Sales Area 2Hyd sales Org. Hyd Sales org

| | Direct sales Through agents

| | Steel Steel

Movement types: Similar to posting keys in FI101 Material receipt against purchase order /production order102/122 Reversal of 101

201 Issue to cost centers202 Reversal of 201261 Issue to orders262 Reversal of 261521 Production receipt without production orders.522 Reversal of 521561 Opening stocks taking562 Reversal of 561601 Delivery (sales)602 Reversal of 601

Difference between 201 and 261

Cost centers Dept A Dept B Dept CIssue material Production order 1(Movement type 261)

Stores items to issue Production order 2(Mov.type 201)(cost center 201) Production order 3

Material issue is identifiable to production orders use movement type 261Material issue is not identifiable to production orders use movement type 201

Transaction key /process key

a) BSX Inventory postingsb) WRX Goods receipt /Invoice receipt (GR/IR)c) PRD Price difference /Production order differences d) GBB Offsetting entry for inventory postings

(i) VBR consumption(ii) VNG Scrapping(iii) BSA Opening stocks(iv) ZOF Production receipt without production order(v) AUF Production receipt with production order(vi) VAY Delivery where sales account is created as revenue element (CO implemented)(vii) VAX Delivery where sales account is not created as revenue element (Co not implemented)(viii) AUA production order differences

Eg: 400000 Raw material consumption 200121 Inventory raw material

61

For consumptionRaw material consumption Dr

To Inventory raw material

For GBB VBR Assign account no.400000For BSX Assign account no.200121

Valuation class:Valuation class determines the GL accounts to be posted automatically.A) Raw materials Local

ImportedInter unit purchasesInter company purchases 4Valuation class

B) Stores :Local 2 valuation classC) Finished goods own manufacturing 1 valuation class

Valuation grouping code / valuation modifier /Valuation modification key:

Company codes BIL BCL BSLChart of accounts BILPlants HYD-BGL BGL-MUM HYD-MUMLocal raw materials RM1 RM2 RM3-RM1 RM2-RM3

Incase of purchases, 200121 –Inventory raw material local

When we follow same chart of accounts for numbers of company codes, Instead of assigning accounts number of times, assign only one time by using valuation grouping code.

Valuation Chat of accounts Company code Valuation Areas Plants Grouping

HYD BIL BIL XBGL BIL BIL XBGL BIL BCL XMUM BIL BCL XHYD BIL BSL XMUM BIL BSL X

For X in case of RM local purchases assign account number 200121, inventory Raw material local.

This is similar to posting periods in FI

A) Define posting period variant XB) Assign posting period variant to company codes X to BIL

X to BCLX to BSL

c) Define posting periods for variant Xfor X—1, 2008 –12,2008

Material types Price controls

Raw materials ROH V-Moving average price purchase price

62

Stores & spares ERSA V-Moving average price purchase pricePacking & material VERP V-Moving average price purchase priceFinishing goods FERT S-Standard price Raw materials +Semi finished goods HALB OverheadsPurchased V-Moving average price Purchase priceProduced S-Standard price Raw material+OverheadsTrading goods HAWA V-Moving average price Purchase priceServices DIEN

Semi finished goods purchasedDept A Dept B Dept C Dept D

15 days FGSales order –To be delivered with in 2 days

Purchase an item where with In 2 days purchase an item Where processing of A,B and C is completedD processing of D

Semi finished goods produced Dept A Dept B Dept C Dept D

Issue RM 15 days timeSales Dept –got an order for sale where the processing of A and B is completed

Take production After completionOf B and sell

Trading goods: Purchase FG and sell FG without doing any processing.Services: Plant is having operating capacity

No sales ordersJob work for othersWe get job work changes –MaterialDoes not belong to us

- Material types are similar to account groups in FI- There we create GL masters here we create material masters.- GL master are created under account group where as material masters are created under material type.- Material master is created at plant level-when number of plants are using the same material it will be

extended(copied) to other plants.- For materials we can open 2 periods at a time.

Oct Nov.When we open Dec.-Automatically Oct will be closed.Where we crate material master –We will have number of tabs (Views)Basic dataPurchase viewSales viewMRP viewQualityWare house managementAccountingCosting

MM Flow A) Material requisition By production Dept to StoresB) Purchases requisition By stores to purchasesC) Call for enquiries, Get quotations and do price comparisons By purchase Dept.D) Create purchase order Vendor number, Material

Quality, Rate, Plant, Company codeDelivery terms, payment terms,Purchase organization

63

E) Release It is optionalIt will work through work flow

If P.O value is less than Rs.10000 To be released by manager purchases

If P.O value is Rs.10000 and above To be released by GM(Purchases)And less than 100000 if P.O value is 10000 and above To be released by Director

Once we save the purchase order, based on the value it goes to the inbox of the command authorized person, till is releases we can’t take goods receipt.

F) Goods receipt –With reference to P.OInventory RM local DR 100

To GR/IR clearing RM local 100Balance sheet current asset BSXBalance sheet current liability WRX(Qty in GR*Rate as per P.O)

G) Invoice verification-Against PO/GRGR/IR clearing RM local DR 100 Balance sheet CL WRX

To party 100 Balance sheet CL From PO, Party no. will be taken

i) Raw material consumptionRM Consumption Local DR 100 P & L Debit GBB VBR

To inventory RM local 100 BS C/A(Current Asset) BSXJ) Wages payment Wages A/c DR 20 P & L Debit

To Bank 20 BS CAK) Production Receipt At product cost

Inventory FG DR 120 BS C/A BSX(FG =Finished goods)

To INC/DEC in stocks FG 120 P & L Credit GBB

ZOF – In case of on production order /CPP module not implement GBB AUF –in case of production order (PP module implemented)

SD steps

L) Delivery –At product costINC /DEC in stocks FG DR 120 P & L CreditGBB VAX –If sales account is not created as revenue element (Co not implemented /GBB VAY –If sales account is created as revenue element (Co Implemented)

To Inventory FG 120 BS C/A

M) Sales billing

Customer A/c DR 150 BS C/A From sales order, customer number will be taken To Sales 150 P & L credit ERL

LCL=LocalInventory FG=Raw material consumption local +wagesGR=Goods receiptINC/DEC STK FG=Increase /Decrease stock finished goods

P & L account

64

H) RM can local 100 L)Sales 150Wages 20 J)INC/DEC STKFG 120Net profit 30 K)INC DEC STK FG -120 0

------- -----150 150=== ===

Balance Sheet

Surplus in P & L Account 30 F) INV RM LCL 100F) GR/IR CLG RM LCL 100 H) INV RM LCL -100E) GR/IR CLRG RM LCL -100 0 ---------

0a) Sundry creditors RM 100 I) Bank -20

j) INV FG 120K)INV FG -120 0

L)Sundry debtors 150---- --------130 130=== ===

Integration rules

A) In material master we specify valuation classB) For valuation class we assign GL accounts based on the nature of transactionC) At the time of material receipt/Issue stores person enters movement type, material number and quantity. Our

accounts will be up dated automatically based on accounts assignment to valuation class which is specified in material master

Eg: Material no. Valuation Inventory postings GR/IR ConsumptionBSX Clearing (GBB VBR)

(WRX)RM1 (local) 3000 RM local 200121-INV-RM 100520-GR/IR 40000-RM

Local CLRG RM LOCAL Consumption-IMPLocal Raw Material1. Purchase order Material –RM1

Vendor -1234Qty-100 KgsRate 5 Rs Save P.O.No.1

2. Goods receipt with reference to P.O-P.O No.1 Movement Type:101 Debit BSX 200121

Credit WRXMaterial RM1Qty 60 kgsSave

Material Doc no.200001200121 –Inventory RM local DR 300100520 GR/IR CLR RM Local 300(Qty IN GR *Rate as per P.O)60*5

Raw material consumption

Movement type 201 Debit GBB VBR Debit A/c No. 400000 Credit BSX 200121Material RM1 3000

65

Qty 10 Kgs400000 RM Consumption LCL DR 50200121 Inventory RM Local 50(Qty issued * Moving average rate)

Imported raw material

1. Purchase order Material -RM2Vendor -4567Qty-1KgRate -100 PO No.2

2. Goods receipt- with reference to PO-PO No.2Movement type:101 Debit BSX 200122

Credit WRX 100521Martial RM2 3001Qty 1 KgSave Material Doc No.200003200122- Inventory RM IMP DR 100100521 GR/IR CLRG RM IMP 100(Qty IN GR* Bate as per P.O)1*100

Raw material returns Material doc no.200003

Movement Type 102 Debit WRX 100521Credit BSX 100122

Material RM2 3001Qty 1 KgSave Material doc no.200004100521 GR/IR CLR RM IMP DR 100200122 Inventory RM IMP 100

Why SAP does not support purchase accounting why it supports inventory accounting:

RM –Local raw material 1 2 3 Not included in purchase Bill received Less stock reported Provision statement by stores

RM consumption=Qty ValueOpening stock 0 0 0 0Add purchase 0 516.50 516.50

_____________________________516.50 516.50

Less :Closing stock 300 300 200------------------------------------------

Raw material consumption X X X========================Wrong wrong wrong

1. Purchase order material no. RM1 Vendor 1234

Qty 100 KgsRate 5 RsExcise 10%CST 2%Other change 1%

Material receipt:

66

We get excise invoice to claim cenvat –Final invoice many come or may not come.Only excise invoice receivedBasic price 500Excise 50Stores person updates his records with the above data.

Issue: Not included in purchase provision statement: Account Dep gets a statement from stores in the month end material received bills not received to make purchase provision.Stores person –By mistake he has not included the above item in the purchase provision statement.Account Dept.gets closing stock statement from stores-in the statement he is showing 60 kgs stock at 5Rs.300

Issue2 –Closing stock valuation wrong We have received invoice after words in invoice

wrongBasic 500 500Excise 50 50CST2% 11 11Other 1% 5.5 5.5

------- -------- ---Bill amount 566.50 516.50 50

Purchase a/c cenvat receivableIn the month end stores person sends closing stock statement 60 kgs at Rs.5Should be value 516.5/100*60=309

*Issue less stock reported by storesIf this month production is more, profitability will be more.If this month production is less, profitability will be less.Physical stock available -60 KgsReporting to accounts only 40 kgs 40*5=200Inventory accounting

1. Purchase order Material no.RM1Vendor 1234Qty 100Rate 5Tax code A1 (10% Excise +2% CST) other charges 1%PO no.1

2. Goods receipt with reference to PO no.1 Movement type 101 Material RM1 Qty 100 Save

Entry will be passed automaticallyInventory RM local DR 516.50

To GR/IR CLR RM Local 516.50 Qty in GR*Rate as per PO

Store records : Material RM1Qty :Value

67

Receipt :100 Kgs 516.50Account records 200121 Inventory RM local

516.50 DR3. Raw material consumptionMovement type 201Material RM1Qty 40 KgsSave

Accounting entry will be generated automatically RM consumption local DR206.5 (516.5) 100*40To Inventory RM local 206.6Qty issued moving .AVG price

Stores records: Material RM1Qty Value

Receipt 100 Kgs 516.50Issue 40 Kgs 206.6

------ ------60 Kgs 309.9

Accounts records 200121 Inventory RM local516.50 DR 206.60 DR

CL stock value 309.9

Price differences are two types1)Batch method 2)Moving average method

| -------------------------------------------------------

| | |Stock fully available Stock partly available Stock no available

1 st method –Batch method: RM1 PO PR 10 RS BILL for 12Rs

1.Material ReceiptBatch Qty Rate Amount Inv RM local DR 1000 BSX1 100 10 1000 To GR/IR CLR RM LCL/100 WRX2 50 40 2000 2. Raw Material consumption

----- ----- RM consumption local DR 100 GBB VBR 150 3000 To INV RM local 100 BSX10 10 100--- ----140 2900 3. Invoice verification

180 GR/IR CLRG RM LCR DR 100 WRX----- ----- INV RM LOCAL DR 180 BSX 90*2140 3080 Price diff RM LCL 20 PRD 100*2

To Vendor 1200 form PO vendor no. is takenBreak up1 90 12 10802 50 40 2000Preparation in P & L account :Raw material consumption :Raw material consumption +/ price difference RM

68

Eg: RMC 100 PD RM 20

----120===

For the truncation key PRD –We can assign raw material consumption account or price difference RM A/c

Moving average method: stock fully available

RM1 PO Price :10 Final Bill for Rs.12

Qty rate amount1. Goods receipt

Bill qty 100 10 1000 Inv.RM local DR 1000 BSX50 40 2000 To GR/IR CLRG RM LCL 1000

---- ------ 2. Raw material consumption150 3000 RM consumption local DR 400 GBB VBR 20 20 400 To INV RM local 400 BSX---- -----

Average bill 130 2600 3.Invoice verification GR/IR CLRG RM LCL DR 1000 WRX

200 GR/IR CLRG RM LCL DR 1000 WRX---- -----130 2800 INV RM Local DR 200 BSX 100*2

To Vendor 1200 form PO Vendor no.is taken

Consumption rate:Value / Qty 3000/150=20Next consumption rateValue / Qty 2800/130=21.54

3 rd method moving average method: Stocks partly available

RM1 PO Price 10Rs Bill for 12Rs1.Material receipt

Qty Rate Amount 1. Goods receiptBill qty 100 10 1000 INV RM local DR 1000 BSX

50 40 2000 To GR/IR CLRG RM 1000 WRX--- -----150 3000130 20 2600 2. Raw material consumption ----- ------ RM comp local DR 2600 GBB VBR

AVBL QTY 20 400 40 TO inv RM local 2600 BSX

---- ----20 440

69

3.Invoice verificationGR/IR CLR RM LCL DR 1000 WRXINV RM Local Dr 40 BSX 20 *2Price diff RM DR 160 PDR

To Vendor 1200 from PO vendor no.is taken

Consumption rate Value / Qty 30000/150=20

Next consumption rate: Value qty 440/20=22.00Incase of batch method –It has checked batch wise for the material.In case of moving average method –if has checked material wise.4th Method-moving average method: Stocks not available safety socks

RM1 PO Price 10 Rs Bill for Rs121. Material receipt

Qty Rate Amount Inv RM local DR 1000 BSXBill Qty100 10 1000 To GR/IR CLRG RM LCL 1000WRX

50 40 2000 2. Raw material consumption---- ---- ------ RM Consume local DR 3000 GBB VBR150 3000150 20 3000 To INV RM Local---- ----- 3. Invoice verification

AVBL Qty 0 0 GR/IR CLRG RM LCL DR 1000 WRXPrice Diff RM DR 200

To Vendor 1200 form PO vendor no.is taken

Sales and Distribution Flow:

1. Inquiry and quotation:2. Sales order : Product, Plant, Sales organization, customer no., quantity, rate delivery

terms, payment terms.3. Delivery :With reference to sales order

A) Delivery without post goods issue (Delivery without PGI) ownership is not transferred.Eg. Export sales –Terms of delivery –FOB (Free on board)

Hyderabad Factory Chennai Port CustomerDelivery without PGI Delivery with PGI

No FI document only FI document material material document document

FI document :At product cost

Increase /Decrease in stocks FG DR GBB VAY-If sales account is created as revenue element (Co implemented)1

GBB VAX if sales account is not created as revenue element (Co not implemented)To inventory FG BSX

B) Delivery with Post Goods Issue (Delivery with PGI)Eg. Local sales terms of delivery –Ex works

Hyderabad factory Customer

70

Delivery with PGISales Billing : With reference to delivery

Customer account DR From sales orderTo Sales :ERLSD-Pricing procedure

Eg: 1 2 3 4From R egion Andhra Andhra Andhra AndhraTo Region Andhra Tamilnadu Andhra TamilnaduCustomer Taxable TaxableNon-taxable Non-taxableMaterial Taxable TaxableNon-taxable Non-taxable

Basic priceExcise % on basicVAT % on Basic+Excise CST % on basic+ Excise

From H sales

Condition type: KOFI (Account assignment-FI) KOFK (Account Assignment –CO)

Assignment of accounts

1 2 3 4 5 6 7 8Application area

Condition type

Chat of accounts

Sales origination

Account assignment group for customers

Account assignment group for materials

Account keys

V-Sales & Distribution

KOFI BIL HYD 01 03 ERL 300001 – Sales Local own goods


KOFI BIL HYD 02 03 ERL 300002-Sales exports own goods


KOFI BIL HYD 01 01 ERF 300003 Sales local trading goods


KOFI BIL HYD 01 03 ERL Sales revenue

400350 –Freight Local own goods

01-Domestic revenues

01 Traded goods

ERF Freight Revenues

02-Foreign revenues

02 Services ERB-Rebates /Trading Discounts

03-Afflicated company

03 Finished goods

ERS Sales Deducti

71

revenues ons

Note :ERS :Sales commission

Bank 5000 From customer 5000Reimbursement of expenses

MM CUSTOMIZATION

MM consultant job

1. Define Plants

Path: SPRO-Enterprise structure- Definition –Logistic general-Define copy, delete check plant.

Double click on define plant


Plant :BILP

Name :BIL HYD Factory plant

Factory calendar :Select B2 or 01 (B2=BIL HYD Factory Calendar)

Save (01=Standard calendar)

Give the name :BIL Hyderabad factory plant

Country :IN

Enter

Select create request button

Short description :MM customization for BIL

Press enter

Enter once again to save in the request

Define division:

Path :Up to logistic –General the path is same-Define copy, Delete, check division.

Double click on define division


Division :BS (It is a text filed)

Name :Steel Division

Save


Maintain storage location

Path :SPRO-Enterprise structure –Definition- materials management –Maintain storage location (OX09)

Give the plant :BILP

72

Enter


Give the storage location :HYD

Description :Hyderabad storage location

Save


Maintain purchasing organization Same path


Purchase organization :BIR

Description :BIL Purchase organization

Save


Assign plant to company code:

Path : SPRO-Enterprise structure –Assignment- logistics General –Assign plant to company code ( Tr code is OX18)


Company code :BIL

Plant :BILP

Save


Assign business area to plant/valuation area and division

Path :Same path -Select plant /valuation area –Division button


Plant :BILP

Division :BS

Business area :BILH

Save


Assign purchasing organization to company code

Path :Up to assignment the path is same –Materials management –Assign purchasing organization to company code

Select position button :Give the purchase org:BILR

73

Enter

For BILR for assign company code BIL

Save


Assign purchasing organization to plant:

Same pathSelect new entries buttonPurchasing org :BILRPlant :BILPSavePress enter to save in your request

Create purchasing groups

Path :SPRO-Materials management –Purchasing –Create purchasing groups.


Purchasing group :BIL

Description :BIL RM purchasing group

Save

Press entr to save in your request

Define material groups:( OMSF)

Path :SPRO-Logistic general –Material master-Settings for key fields –Define Material groups.Select new entries button

Material group :BILC

Material groups description :Chemicals


Maintain company code for material management:

Path :SPRO-Logistic General –Material master-Basic settings-Maintain company code for materials management


Give the comp code :BIL

Enter

Year :2008

Period :7 (October)

Note : This period enter carefully, if you once enter not modified

Select ABP check box (ABP stands for Allow Back Period Posting)

74

Note: September entries allowed

Save



Define attributes of material types:

Path:up to the material master the path is same – Basic settings –Material type-Define attributes of material types.Select position button

Select material type :ROH (Raw materials)

Enter

Select ROH

Double click on quantity / Value updating folder


Valuation area :BILP ( Nothing but plant)

Enter

For BILP select quantity updating, value update check box

Save


Select back arrow

Select material FERT for finished product

Double click quantity / value updating folder


Valuation area :BILP

Enter

For BILP select quantity updating check box value updating check box

Save

Set tolerance limits for price variance for purchase order

Path: SPRO-Material management –Purchasing –Purchase order –set tolerance limits for price variance

Select TIKY :PE & SE for company code 1000


Enter the company code to BIL

For tolerance key :PE

Enter

Change the company code to :BIL

For tolerance key :SE

Enter and save

75


Plant parameters:

Path :SPRO-Materials management –Inventories management –Physical inventory –Plant parameters

Select plant :1000


Change the plant to BILP

Enter and save


Set tolerance limits for goods receipt

Path :Up to inventory management and physical inventory the path is same -Goods receipt-Set tolerance limits

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


Change the company code to BIL for B1

Enter

Change the company code BIL for B2

Enter

Change the company code to BIL for VP

Enter and save


Maintain default values for tax codes

Path: SPRO- Materials management –Logistics invoice verification-Incoming invoice maintain default values for tax codes

Select new entries buttonCompany code :BILSavePress enter to save in your request

Set tolerance units for invoice verification

Path:Up to logistics invoice verification the path is same – Invoice block-Set tolerance limits

select tolerance key BD, ST for company code 1000

select copy as button

change the company code to BIL for BD

enter

change the company code to BIL for ST

76

save

Define automatic status change

Path :Up to the logistic invoice verification the path is same – Invoice verification in back ground –Define automatic status change


Company code :BIL



Group together valuation areas:

Path :SPRO-Material management –Valuation and account assignment-Account determination-Account determination without wizard-Group togather valuation areas.

Select position button Valuation :BILP

Enter

Give the valuation grouping code :X

Save


Define valuation classes:

Path :Same path – Select valuation class button

Select valuation class 3000 Raw materials local

Select valuation class 7920 Finished products


Change valuation class 3000 to BIL1

Change the description to Raw materials local

Change valuation class 7920 to BIL2 – Finished product

Enter and save


FI consultants job:

1. Creation of GL masters FS00A) Inventory RM local Current assets loans & advancesB) Inventory finished goods -do-C) GR/IR clearing RM local Current liabilities & Provisions D) RM consumption local RM Consumption

77

E) INC/DEC in stocks FG Increase /Dec in stocks

Give the GL account no. 200121

Company code BIL


Give the GL account no.200120 Inventory RM

Company code :BIL

Enter

Change the short text to Inventory RM local

Change the GL a/c long text also inventory RM local


Tax category :select * (All tax allowed)

Select posting without tax allowed check box

Select create/Bank/Interest tab

Field status group change to G006 Material accounts

Save

Note :Before post select automatically only check box 200121


GL account no. :200122

Company code :BIL


Give the GL a/c no.200121

Company code :BIL

Enter

Select type/description tab

Change short text and GL a/c long text to inventory FG

Save

GL account :100520

Company code :BIL


GL account :100500 outstanding exp.

Company code :BIL

Enter

Change short text and GL account and long text to GR/IR clearing RM local


Tax category :*

Select posting without tax allowed check

Sort key :014 Purchase order

78

Select create /bank /interest tab

Field status group change to G045 goods/Invoice received clearing accounts

Save

G/L account :400000

Company code :BIL


Give the GL account no.400100 Salaries a/c

Company code :BIL

Enter

Select type/description tab

Change the account group to RM consumption

Change short text and GL account long text to RM consumption local


Field status group to change to G003 Material consumption accounts

Save



Enter

Cost element category :Select 01

Save

GL account :300200

Company code :BIL


Change the GL a/c no.300100 Exchange gain

Company code :BIL

Enter

Select type/Description tab

Change account group to Increase /Decrease stocks

Change short text and GL account long text to Increase/Decrease in stocks FG

Select create/Bank/Interest tab

Change field status group to G030 change in stock accounts

Save

*Assignment of accounts for automatic postings

Path :Up to account determination without wizard the path is same – Configure automatic postings (Tr code is OBYC) (MM to FI Integration )

Select cancel button

79

Select account assignment button

Double click on transaction BSX inventory posting

Give your Chart of Accounts :BIL

enter

Select valuation modifier check box

Select valuation class check box

Save

Valuation modified Valuation class Account

X BIL1 RM local 200121 Inventory RM local

X BIL2 Finished products 200122 Inventory FG

Save


Select back arrow

Double click on transaction WRX GR/IR clearing account

Select valuation modifier check box

Select valuation class check box

Save

Valuation modifier :X

Valuation class :BIL1 RM local

Account no. :100520 GR/IR clearing local

Save


Select back arrow

Double click on GBB offsetting entry for Inventory posting

Select General modification check box

Valuation modifier check box

Valuation class check box

Save

Valuation modifier

General modification Valuation class Account

X VBR (consumption) BIL1 RM local 400000 RM consumption local

X ZOF (Production receipt without production order)

BIL2 Finished products 300200 Increase / Decrease stocks FG

X AUF with production BIL2 300200X VAY (Delivery where sales

account is created as revenue BIL2 300200

80

element Co implemented)

X VAX Delivery where is sales account is not created as revenue element CO not implemented

BIL2 300200

SavePress enter to save in your request

Document types and no.ranges (OBA7)WE :Goods receipt

WA :Goods issue

RE :Grass invoice receipt

Tr code is OBA7

Select WE :Goods receipt


Number rage :50

Select number range information button

Company code :BIL



No.range :50

Year :2008

From no. :800001

To no. :900000

Enter and save


Select back arrow 3 times

Select type WA Goods issue


Number range :49

Select no.range information button

Company code :BIL



No.range :49

Year :2008

From no. :900001

81

To no. :1000000

Enter and save


Select back arrow three times

Select RE gross invoice receipt


No. range :51

Select no.range information button

Company code :BIL


No.range :51

Year :2008

From no. :1000001

To no. :1100000

Enter and save


MM end user area

Creation of vendor master XK01


Purchasing organization :BILR

Account group :BIL2 MM vendors for BIL

Enter

Give the name :Nagarjuna Steels Limited

Country :IN

Select next screen button 3 times

Reconciliation account :select 100501 Sundry credit RM

Sort key :012 vendor

Select next screen button

Payment terms :0001

Select next screen button 2 times

Order currency :INR

Select GR based invoice verification check box

Save

Creation of RM material master

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Path :Logistics –Materials management –Material master-material-Create(Genral) –Immediately (Transaction code MM01)

Material :BILRM1

Industry sector :Mechanical engineering

Material type :Raw material

Press select views button

Select basic data1, purchasing, general plant data/storage1/accounting1

Select organization levels button (bottom side)


Storage location :HYD

Enter

Give the description :Raw material 1

Basic unit of measurement :KG

Material group :BILC (Chemicals)

Division :BS (Steel)

Select purchasing tab


Select accounting one tab

Valuation class :select BIL1 (RM local)

Price control :select V moving average price

Moving price :50


To open material periods for November:

Up to material master the path is same –Other-Close period (Transaction code is MMPV)

From company code :BIL

Give the period :8 (November)

Fiscal year :2008

Select check and close period radio button

Execute

Purchase order creation

Path :Logistics – Material management –Purchasing –Purchase order-Create-Vendor/supplying plant known (The transaction code is ME 21N)

Give the purchasing organization :BILR

Company code :BIL

Enter

83

Give the purchasing group :BIL

Item :10

Material :BILRM1

PO quantity :100 Kg

net price :75

Plant :BILP

Give the currency :INR

Vendor no. :2001

Save

Note the purchase order no.4500017092

Goods receipt:

Path :Logistics –Material management –Inventory management –Goods movement –Goods receipt- for purchase order –PO number known (The transaction code is MIGO)

Select goods receipt

Give purchase order no.4500017092

Enter

Storage location select :HYD

Select quantity tab

Quantity in delivery note :100

Select item ok check box


Select display button

Enter

Select document information tab

Select FI documents button

BSX200121 Inventory RM local 7500 BILRM1 BIL1

WRX100520 GR/IR CLRG RM local -7500 BILRM1 BIL1

Qty .Received(GR) *Rate as per PO100*75

Note: change USTAX to GTAX

Invoice verification:

Path :Logistics –Materials management –Logistics-Invoice verification –Document entry-Enter invoice (Transaction code is MIRO)

Give the invoice date :Today’s date

Reference :Party bill no.1234

84

Text :Invoice verification

Purchase order :4500017092

Select payment tab

Payment terms :0001

Baseline date :today’s date

Select base data tab

Tax code :select V0

Enter

Business area :BILH

Select beside data tab

Amount :7500

Enter


From the menu select invoice document –Display

Select follow on document button

2001 Nagarjuna Steels Limited 7500 –From party no is taken100520 GR/IR CLRG RM local 7500 BILRM1 BIL1


Path :Logistics –Materials management –Inventory management –goods movement –goods issue (Transaction code is MB1A)

Movement type :201

Plant :BILP


Enter


Material :BILRM1

Quantity :30


From the menu select goods –Issue display

Enter

Select accounting documents button

Select accounting document number

BSX

200121 Inventory RM local 2250-BILRM1 BIL1

GBB VBR

85

400000 RM consumption LCL 2250-BILRM1 BIL1

Qty consumed * moving average price

30*75

To view stock ledger

Path :Logistics –Materials management –Inventory management –Environment –Stock for posting date (Transaction code is MB5B)

Material no. :BILRM1

Company code :BIL

Plant :BILP

Selection date :01.04.2008 to 31.03.2009

Select valuated stock radio button

Execute

SD CUSTOMIZATIONSD consultant’s job

1. Define region:(State) Path :SPRO-SAP netweaver-General settings-Set countries –Insert regions


Country :IN

Region :AP

Description :Andhra Pradesh

Save

Select create request button(F8)

Short description SD customization for BIL

Save in your request

Define sales organization

Path :SPRO-Enterprise structure –Definition –Sales and contribution –Define,copy,delete,check,-Sales organization

Double click on define sales organization


sales organization :BILS

Description :BIL HYD Sales organization

statistics currency :INR

save, Ignore the warning message press enter

Give the name :BIL HYD sales organization

country :IN

86

region :AP

press enter

To save in your request

Define distribution channel

Same path -Sales & distribution –Define,copy, delete,check distribution channel

Double click on define distribution channel


Distribution channel :BD

Name :Direct sales

Save


Define shipping point

Path :SPRO-Enterprise structure –Definition-Logistic execution –Define, copy, delete, check shipping point

Double click define shipping point


Shipping point :BISH

Description :BIL HYD shipping point

Save

Name :BIL HYD shipping point

Country :IN

Enter

Press enter once again to save in the request

Assign sales organization to company code:

SPRO-Enterprise structure –Assignment-Sales & Distribution –Assign sales organization to company code


Sales organization :BILS

Enter

For sales organization :BILS

Assign company code :BIL

Save


Assign distribution channel to sales organization

87

Same path




Save


Assign division to sales organization

Same path



Division :BS

Save


Setup sales area:

Same path




Division :BS

Save


Assign sales organization –distribution channel- plant:



distribution channel :BD

Plant :BILP

Save


Define rules by sales area:

Path :Up to sales and distribution the path is same –Business area account assignment –Define rules by sales area


88


enter

For sales organization :BILS

Rule select :001 (Business area determination from plant / division )

Save, press enter to save in your request

Assign shipping point to plant:

Path :SPRO-Enterprise structure –Assignment-logistic execution –Assign shipping point to plant

Select find button

Enter :BILP

Press enter

Select :BILP

Select assign button

Select BISH check box

enter

Save


Define common distribution channels:

Path :SPRO-Sales & Distribution –Master data –Define common distribution channels


Give the sales organization :BILS

Enter

Distribution channels for condition :BD

Distribution channels for customer master :select BD

Save


Define common divisions:

Same path

Select position buttonSales organization :BILSEnterDivision for conditions :select BSDivision for customer master :select BSSavePress enter to save in your request

89

Maintain pricing procedures

Path :SPRO-Sales and distribution –Basic functions –pricing –Pricing control –Define and assign pricing procedures

Double click on maintain pricing procedures

Select pricing RVAA01 standard

Double click on control data folder

Condition type SKTV cash discount

Condition type MWST output tax

Deselect required check box

Save

Ignore the warning message press enter to save

Define pricing procedure determination:

Upto define and assign pricing procedures the path is same

Double click on define pricing procedure determination




Division :BS

Document pricing procedure :select A standard

Customer pricing procedure :select 1 standard

Pricing procedure :select RVAA01 standard

Condition type :select PR00 price

Save


Define tax determination rules:

Path :SPRO-Sales and distribution –Basic functions- Taxes –Define tax determination rules

Select new entries buttonTax country :IN for IndiaSequence :1Tax category :UTXJ Tax Jursdict code Save

Setup partner determination:

Partner functionsCustomer No.

SP Sold to Party 1 1 Not modifiableSH Ship to party 1 2 ModifiableBP Bill to party 1 2. Modifiable

90

PY Payer 1 2 Modifiable

If we don’t specify separately (SP,SH,BP and PY)all we be only customer

Path :Up to basic functions the path is same-Partner determination –Set up partner determination

Double click setup partner determination for customer master

Double click on partner functions folder


Partner function :SP

Enter

Select partner function SP

Double click on account group function assignment folder



Account group :BIL2

Partner function :SH

Account group :B1L2

Partner function :BP

Account group :BIL2

Partner function :PY

Account group :BIL2

Ignore the warning message press enter to save in your request

Double click on partner determination procedures folder


Partner determination :BIL

Name :BIL partner determination procedure

Save


Select partner determination :BIL

Double click partner functions in processor folder



Select not modifiable check box

Select mandatory check box

Select partner function :SH select mandatory function check box

Select partner function :BP select mandatory function check box

Select partner function :PY select mandatory function check box

91

Save


Double click on partner determination procedure assignment folder


Account group :BIL2

Enter

For BIL2 Assign partner procedure BIL

Save

Assign shipping points

SPRO-Logistics execution-Shipping –Basic shipping functions –Shipping point and goods receiving point determination –Assign shipping point


Shipping conditions :select 01 as soon as possible

Loading group :0003 manual

Plant :BILP

Propose shipping point :BISH

Save


FI consultant job:

Creation of GL master sales local own goods under sales group –FS00

Give the GL a/c no. :300005

Company code :BIL


Give the GL a/c no. :300000 sales account

Company code :BIL

Enter

Change short text and GL a/c long text local own goods


Tax category :*

Select posting without tax allowed check box

Select create /Bank /Interest tab

Field status group G029 revenue accounts

Save



92

Enter

Cost element category :11 Revenues

Save

* Assignment of account for automatic postings:

Path :SPRO-Sales and Distribution –Basic function-Account assignment/costing Revenue account determination –Assign GL accounts (Transaction code is VKOA)

Note : This is Important Tr code

Double click on table one


Application area :Select V Sales & Distribution

Condition type :KOFI account data

Chart of accounts :BIL


Account assignment group of customer :Select 01 domestic revenues

Account assignment group of material :03 Finished goods

Account key :Select ERL sales revenues

GL account :300005 sales local own group

Save


SD end user areaCreation of customer master :XD01

Company code :BIL



Division :BS

Account group :SD customer for BIL

Enter

Name :DLF Industries Ltd

Country :IN

Region :AP

Select company code data button

Reconciliation account :200110 sundry debtors

Sort key :031 customer no.

Select payment transaction tab

Terms of payment :0001

Select sales area data button

93

Customer pricing procedure :select 1 standard

Select shipping tab

Delivery priority :select 02 normal

Shipping conditions :select 01 as soon as possible

Delivery plant :BILP

Select billing documents tab

Select price determination check box

In CO terms under delivery and payment terms :select EXW form plant

Terms of payment :0001

Account assignment group :select 01 domestic revenues

For Tax category UTXJ Tax classification :select 1 liable for tax

Save

Creation of finished goods material master (MM01)

Give the material :BILFG

Industry sector :Mechanical engineer

Material type :Finished product


Select basic data 1

Select Sales :Sales organization data 1

Select Sales :sales org.data 2

Select Sales :General /plant data

Select MRP1

Select general plant data /storage 1

Select accounting 1

Select organization levels button

Plant :BILP




Enter

Description :Finished product

Base unit of measurement :KG

Division :BS

Gross weight :1 kg

Select sales :select 1

sales :Sales org.1 tab

Division :BS

94

Tax classification :select 1 (Taxable)

Select sales :sales, sales organization 2 tab

Account assignment group :select 03 finished goods

Select sales :General /plant tab

Available check :select KP no check

Transportation group :select 0003 container

Loading group :select 0003 manual

Select MRP1 tab

MRP type :select ND no planning

Select accounting 1 tab

Valuation class :select BILL2 finished product

Price control :select S standard price

Standard price :400

Save

Creation condition types:

Path : Logistics –Sales & Distribution –Master data-Conditions –Select using conditions type-create (Transaction code is VK11)

Condition type :PR00 price

Select key combination button: Select material with release status radio button

Enter

Sales organization BILS


Material :BILFG

Amount :600


Valid to :31.03.2009

Save

Select back arrow

Condition type :select UTXJ tax Jursdict code

Select key combination button

Select domestic taxes radio button

Enter

Country :IN for India

Tax classification for customer :1

Tax classification for material :1


Valid to :31.03.2009

95

Tax code :A0 (0% output tax)

Save


CO –PROFITABILITY ANALYSIS (CO-PA)

Co for Controlling PA for Profitability Analysis

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

Eg: Customerwise /Productiwise /Sales order wise plant wise, Sales organization profitability.

Account based profitability /costing based profitability analysis / both (in India we use both)

PP ModuleMM ModuleFI Module product costing SD module CO-PA CO ModuleDefine an operating concertOperating concern can be equal to controlling area or above controlling area Controlling area can be equal to our company code or above company codeCompany code =controlling area =operating concern

Data structure

Characteristics Value fields

Customer ------Product |Sales order |Plant |- Sales cost of goods sold net profitSales organization |Sales employee |Country |

----

Profitability segment It consists of A) System defaulted characteristics

Eg: customer / Product / Sales order /Plant /Sales organization B) Client required characteristics

Eg: Sales employee / Industry

Data flow in SD module:

1. Inquiry and quotation2. Sales order –customer /product /plant sales organization /quantity /rate delivery terms payment terms.3. Delivery with reference to sales order.

A) without posting goods issue (without PGI)B) with post goods issue (with PG1)

4. Sales billing with reference to delivery

Data flow in Co-PA

96

SD condition types CO-PA value fields

PR00 Price VV 010 – RevenuesVPRS Costs VV 140 – Cost of goods sold(Product costs)(up to COGM level) CO - +FI

COGM Admin & SD Exp.(Both –costing based and account based)

We are going to MAP:PR00 =VV010VPRS=W140Product cost : BILFG1Cost sheet: BILFGRaw materials xxxRaw material overheads xxxProduction costs xxx

----- Production valuation will be at COGM level or COGM+ admin exp. LevelCost of goods manufactured xxx(COGM)Administration xxxSales & Distribution xxx

-----Cost of goods sold (COGS) xxx

In client 800 –for company code 10001 controlling area -1000 operating concern IDEAIn IDEA –All SD condition types and equivalent CO-PA value fields

We check IDEA and do customization the same way for our operating concern also IDEA is a references to all the CO consultants

CUSTOMIZATION :

Maintain operating concern

Path :SPRO-Controlling –Profitability analysis –Structures –Define operating concern –Maintain operating concern (Tr code is KEA0)

Give the operating concern :BIL1 (It is a text field)

Select create button


Description :Operating concern for BIL

Select costing based check box

Select account based check box

select attributes tab

operating concern currency INR

97

select company code currency check box

fiscal year variant :V3

save

select data structure tab

select create button under data structure

select KMVTNR sales employee

select left arrow

select value fields tab

select VV010 revenue

select VV140 cost of goods sold

select left arrow

select save button

from the menu select data structure save

from the menu select data structure activate

Select back arrow

Select yes button for the message to generate the operating concern environment.


Save

Define profitability segment characteristics (Segment –level characteristics)

Path: Up to structures the path is same -Define profitability segment Characteristics (Tr code is KEQ3)

Give the operating concern :BIL1

Enter

For product and customer

Select costing base and account base radio button

Save


Assign controlling area to operating concern:

Path :SPRO-Enterprise structure –Assignment –Controlling –Assign controlling area to operating concern.



Enter

For controlling area :BIL

Assign operating concern :BIL1

Save


98

Define no.range for actual postings

Path :SPRO-Controlling –Profitability analysis –Flows of actual values –Initial steps –Define no.range for actual postings (Tr code is KEN1)

Operating concern :BIL1


Select generated groups check box

From the menu select interval maintain


From no. 1

To no. :9999999999 (10 times)

Save


Maintain assignment of SD conditions to CO-PA value fields:

Path :Up to flows of actual values the path is same –Transfer of billing documents –Assign value fields .(TR code is KE4I)

Double click on maintain assignment of SD conditions to CO-PA value fieldsSelect new entries button

Open one more session with SPRO-Controlling-Profitability analysis –Structures –Set operating concern

Give the operating concernSelect operating concern :IDEAEnterUser the Tr code is KE4I

Come to the first session

Condition type :PR00

Value field :VV010 (Revenues)

Condition type :VPRS (cost)

Value field :VV140 (Cost of goods/ Sold)

Save


Notes : Direct posting from FI/MM

PR00 price :VV010 RevenuesScrap sales/waste sales –Posting only in FI, only FI-No Co account base , if we post manually in FI If we post directly in FI-for account no.300000-399999 up date VV010 revenues

VPRS costs :VV140 cost of goods sold

If we post directly in FI for account no.400000-499999 up date VV140 cost of goods sold

99

Up to flows of actual value the path is same (Through path )

Direct posting from FI/MM:Maintain PA transfer structure for direct postingsTr code is KEI2

Select structure FI (Financial accounting COPA)

Double click assignment lines folder


Enter

Enter once again

Select assignment :20 (Direct revenues from FI)


From :300000

To :399999

Double click on value fields folder


Quality /value :Select value filed

Fixed /variable :Select 1 fixed amounts

Value field :select VV010

Save


Double click on assignment lines folder

Assignment select :10 Direct cost from FI


From :400000

To :499999

Double click on value fields folder


Quantity /value :select value field

Fixed /variable :select 1 fixed amount

Value field :VV140

Save

Activate profitability analysis

Path :Up to flows of actual values the path is same Activate profitability analysis (KEKE)



100

Enter

For controlling area :BIL

Activate status :select 4 (component activate for both types of profitability analysis)

Save, press enter to save in your request

SD END USER AREA1. Creation of sales order

Path: Logistics –Sales and Distribution – Sales –Order –Create (Tr code is VA01)

Order type :select OR (Standard Order)


Distribution Channel :BD

Division :BS

Enter

Sold to party :200101

P.O.No. :1

P.O.Date :To days date

Required delivery date :Today’s date


Payment terms :0001

Item :10

Material :BILFG

Order quantity :10 kg

Enter


Select item :10

From the menu select Goto Item Conditions

Select shipping tab

From the menu select Edit in complication log

We get a message document is complete ,no errors


Note the order no.11764

Production receipt :

There are two types of production receipt.

1. Production receipt without production order 2. Production receipt with production order MVT Type:521 MVT Type:101

101

Path :Logistics –Materials Management –Inventory management –Goods movement –Goods -receipt –Other (Tr code is MB1C)

Moment type :521 (Receipt w/o production order into unrest –use stock)

Plant :BILP


Enter

Give the material :BILFG

Quantity :50

Save


Note : Check it GL A/c 200122 Inventory, select automatic posting check box

From the menu select other goods receipts Display-Enter


Select accounting document no.

BSX

200122 Inventory FG 20000 BILFG BIL2

GBB

300200 INC/DEC in stocks FG 20000-BILFG BIL2 ZOF

Qty *Standard Price 50*400

Delivery: Path : Logistics –Sales & Distribution –Sales –Order –Sub request functions –Outbound delivery (Tr code is VL01N)Shipping post :BILH

Give the order no. :11764

Enter

Actual goods issue date :Today’s date

Select item :10

Select picking tab

Picked quantity :10

Select post goods issue button

From the menu select outbound delivery display

Enter

From the menu select Environment Document flow keep the cursor on goods issue delivery document no. (down side

in document column)

Select display document button



Double click on accounting document no.

102

200122 Inventory FG 4000-BILFG BSX is assign this A/c BIL2

300200 INC/DEC in stocks FG 4000 BILFG GBB VAY assigned to BIL2

Qty delivered *Standard price10*400

Sales billing

Path :Up to sub sequent functions the path is same –Billing document(Tr code is VF01)(Through path)

Select Delivery document no.Execute SaveFrom the menu select Billing document-Display-Select accounting buttonDouble click on accounting document no.200100 DLF Industries Limited 6000 customer no.is taken from sales order

300005 Sales local own goods 6000-ERLQty sold *Sale price10*600

REPORT PAINTER

Report to view customer wise/product wise /Sales organization wise /plant wise profitability

Define forms for profitability reports :

Path :SPRO-Controlling –Profitability analysis –Information system –report components –Define forms –Define forms for profitability reports-(The Tr code is KE34)

Double click on creation Form

Give the operation concern form :AML

Form description : From AML profitability

Select two axes (matrix) radio button


Select operating concern currency radio button

Enter

Double click on row 1

Select value field with characteristics radio button

Enter

Value field select VV010 – Revenue



Select value field with characteristics radio button

Enter

Value field select VV140 –cost of goods sold

103



Select formula radio button

Enter

Select Y001

Select minus button

Select Y002 cost of goods sold

Enter

Short text Net profit

Select copy short text button

Enter

Double click on column 1

Select characteristics radio button

Enter

Select plant /Actual indicator for available characteristics

Select left arrow

For plant /actual indicator

From :Select 0 actual data


Save

From the menu select Edit-General data selection

Once again general data selection

From the available characteristics column

Select record type, period /year

Select left arrow

For record type

For form column :Select B direct posting from FI

For To column :Select F billing data

For period /year : For from column :Select variable on /off check box

Local variable :Enter 1

Press enter

For to column select variable on/off check box

Local variable :2

Enter


From the select Extras –variables –variable definition

For name 1 : Give the description from period /year

For name 2 Description :To period /year

104

Enter & save

Create profitability report:

Same path Double click on crate profitability reportTr code is KE31

Give the report :BILREPORT ( This is a text field)

Description :BIL Profitability Report

Select report with from radio button

Give the form name :BIL1


Select operating concert currency radio button

From the characteristics list :Select customer /plant /product ,Sales organization

Select left arrow

Select output type tab

Select classic drill down radio button

Select available on selection screen check box

Save



Form period/year :01.2008

To period /Year :12.2008

Execute

Ignore the message select press enter

To view product wise profitability from the menu select navigate-with drill down

Double click on product

This called date cube

PRODUCT COSTING

This is used for valuation of inventories i.e. Finished goods and Work in progress

PP ModuleMM Module |FI Module | Product costingCO Module |

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 accounts

105

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 BILFG1Raw materials xxRaw material overheads xxProduction costs xxCost of goods manufactured (COGM) xxAdministration Expenses xxSales & Distribution exp. xx

----Cost of goods sold (COGS) xx

To check with client at what level he wants to value stocksAt COGM level or At COGM +Admin level

Raw material standard costFor each product –we find out materials requiredFor BILFG1 We required BILRM1

BILRM2MM Module :Material MasterAccounting view –moving average priceBIL RM1 75BILRM2 125

PP Module: Bill of Material (BOM)

To produce BILFG1 what materials are required and how much quantity BILRM1 1KgBILRM2 1KgRaw 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 account 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

Dept A Dept B Dept C Dept D

106

Dept A Dept B Dept C Dept DRaw material Issue Issue 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 (Process flow)Dept A Dept B Dept D

Raw material Issue Issue Finished product

Wages 300000Salaries 100000Power 320000

-------Planned cost 720000

=====Planned hours availableMachines 100 working for 3 shifts (24 Hours )No.of days 30 Days

100*30*24=72000Machine hour rate 720000/72000=10 Rs(Activity type)To Produce BILFG1Hours required 5HrsProduction 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 Hrs Req CostBILFG1 999 Kgs 1BILFG2 1 Kg 999

------ -----1000 1000 720000

If we allocate cost based on production

BILFG1 720000*999/1000=719280BILFG2 720000*1/1000= 720

-------- 720000 ======

If we allocate cost based on hours required

BILFG1 720000*1/1000 =720BILFG2 720000*999/1000 =719280

-----------720000========

ACTIVITY BASED COSTING

Co –Consultants job:

107

1. Creation of 2 secondary cost elements (Use Tr.code is KA06)

A) RM overhead rateB) 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


Enter

Name and description :Activity allocation

Cost element category :select 43 Interval activity allocation

Save

Creation of activity type –Machine hour:

Path :Accounting –Controlling –cost Center accounting –Master data –Activity type-Individual 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



Enter

Change the name to Dept G

Change the description to cost center :Dept G

Person responsible :MrG

108

Other things are common

Select save button

Cost center :Dept H



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


Define overhead groupsSame path


Valuation area :BILP

Overhead group :BIL1

Overhead key :BIL1

Name of overhead group :BIL over head group

Save

109


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


Base :D1 (Text filed)

Name :Raw materials

Base :D2

Name :Production cost

Save


Select D1 double click on details folder


Enter


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


Enter



To cost element :400299 Personnel & Manufacturing group


To cost element :400599 Depreciation a/c

From cost element :1200001 Activity allocation

110

To cost element :1200001

Save

Define percentage overhead rates:Same path


Overhead rate :D3

Name :RM overhead rate

Dependency :Select D010 Overhead type/Overhead key

Save


Select D3




Valid from To Controlling area Overhead type Overhead key Percentage

01.04.2008 31.03.2009 BIL Select 2BIL1 5 (Planned overhead rate) RM key

01.04.2008 31.03.2009 BIL 1 (Actual overhead rate) BIL1 10

Select save button or Ctrl+SPress enter to save in your request

Define CreditsSame path


Credit :D4

Name :BIL RM credit key

Save


Select :D4



Enter


Valid to :31.03.2009

Cost element :1200000 RM overhead rate

111

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 600000To GR/IR clearing RM local 600000

2. Loading & Unloading charges

Loading & Unloading charges Dr 7000 Dept HTo Bank 7000

3. RM 2 Purchase

Inventory RM local DR 300000To GR/IR clearing RM local 300000

4. Loading & Unloading charges for RM 2

Lodging & unloading charges DR 3000To Bank 3000

5. RM Consumption for production Order 1-RM1 and RM2

RM consumption local DR 40000 Order 1RM Consumption local DR 20000 Order 1

To Inventory RM local 40000To Inventories RM local 20000

6. RM consumption for production order 2 RM-1 and RM2

RM consumption local DR 10000 Order 2RM Consumption local DR 30000 Order 2

To inventory RM local 10000To Inventory RM local 30000

In the month end

RM material consumption 100000Lodging & Unloading charges 10000% on consumption 10% actual overhead rate

Cost center Dept H(Allocation cost center)

Loading & Unloading for RM1 7000 DR Order 1 6000 DRLoading & Unloading for RM2 3000 DR Order 2 4000CR

112

H Value will be zero

Order 1 Order2RM Consumption 60000 40000RM overhead rate 6000 4000(Actual 10%) ----- -----

66000 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


Costing sheet :BIL

Description :BIL Costing Sheet

Save


Select :BIL

Double click on costing sheet rows folder


Row Base Overhead Description

10 D1 Raw materials20 400000-400099

D3 RM Overhead rateFrom :10To Row:10Credit :D4

Row :30Base :D2Description :Product cost

Row :40Description :Cost goods manufacturer From :10To row :30Save

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)


113

Cost variant :Select PPC1 standard cost estimate (Materials)

Enter

Select PPC1


Select valuation variant button

Select create beside valuation variant /plant


In plant :BILP

Save


Select back arrow

Select valuation variant :001 with plant BILP


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 costWhat 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


Cost competent structure :01

Chart of Accounts :BIL



Cost component :select 10 RM

Save



114

Select back arrow


Select cost component structure 01 with cost component 80 Material over head

Double click on assignment:Cost component cost element –Interval folder


Cost component structure :01

Chat of Accounts :BIL

From cost element :1200000 RM overhead

Cost component :80 Material overhead

Save



Select cost component structure :01 with lost component 50 production machine

Double click on assignment cost component –cost element interval folder






Cost component :select 50 production machine

One more



From cost center :400500

To cost center :400599

Cost component :50

One more




Cost component :50

Save

Double click on cost component structure folderFor cost component structure 01 select active check boxSave For cost component structure assignment structure 02 also for cost component

115

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 buttonPlant :BILPMRP controller :Mr.ASavePress enter to save in your request

Notes:Define floats (Scheduling margin key)

Floats –Buffer days or grace days2 days grace days

Production order creation 08.12.2008 10.12.2008Production order release 10.12.2008 12.12.2008Production start date 11.12.2008 13.12.2008Production end date 15.12.2008 17.12.2008

Path :SPRO-Production –Material requirements planning –Planning –Scheduling and capacity parameters –Define floats (Scheduling margin key)


Plant :BILP

Margin key :BIL

Opening period :2 days

Float before production :2 days

Float after production :2 days

Release period :2 days

Save


Define production scheduler

Path :SPRO-Production-Shop floor control- Master data-Define production scheduler

Select new entries buttonPlant :BILPProduction scheduler :BDescription :Mr.BSavePress enter to save in your request

Determine person responsible for work center

116

Path :SPRO-Production –Basic data –Work center –General data –Determination person responsible

Select new entries buttonPlant :BILPResponsible person : Mr.CPerson responsible for work center :Mr.CSavePress enter to save in your request

CO END USER 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 overview screen button (F5)

For 400100 Plant fixed cost :720000

Save

Planning for machine hours

Path :Accounting –Controlling –Cost center accounting –Planning-Activity output /Prices-Change (KP26)

Version :0

From period :9

To period :9

Fiscal year :2008


Cost center :Dept G

Activity type :BIL



Plant activity :72000

Save

calculation of Machine hour rate

117

Path :Up to planning the path is same – Allocations –Price calculation (KSPI)

Select cost center group radio buttonCost center group select :BILPRODExecuteSelect save buttonIgnore the message press enter

MM END USER AREA

Creation of material master (MM01)

A) Raw material 2B) 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 /Accounting


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


Select accounting 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


Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1, accounting , Costing 1

Select organizational levels button /enter

118

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


Availability check :select KP (no check )

Select work scheduling tab

Production scheduler :B

Select accounting 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 USER 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

119

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

120

Machine standard value :5

Unit :H (Hour)

Save

Note: Routing is process flow as a department wise

CO –END USER AREA

Creation of cost estimate with quantity structure:

Path :Accounting –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 1 Kg 75BILRM2 1Kg 150 225

RM overhead cost -5% 11Production costs 5*10 50Machine hours 5 HrsMachine hour rate 10Rs -----

286

From the menu select Costs –>Display cost components Select save button or Ctrl+SEnter

Marking and releasing

Display material master

Path :Logistics –Materials management –Material master-Material –Display –Display current (MM03)

Material :BILFG1Press select views buttonSelect costing 2 viewEnterPlant :BILP

121

Enter

A) Marking and releasing

Display material master1. 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 :Accounting –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


Costing variant :select PPC1

(Standard cost estimate for materials)

Save

Select back arrow


Execute

Select material :BILFG1

Select costing to tab


Select release button

Execute

Select material :BILFG1

Select costing to tab

ACTUAL COSTING

CO consultant Job

Check costing variants for Manufacturing orders (PP)

122

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 create button beside valuation variant /plant


In plant :BILP

Save


Select back arrow

Select valuation variant :006 with plant BILP


Select overhead tab

Give the costing sheet :BIL costing sheet

Save

Select back arrow

Select costing variant PPP2 production Order Actual



Select create beside valuation variant/plant


In plant :BILP

Save


Select back arrow

Select valuation variant 007 with plant :BILP


Select overhead tab

Costing sheet :select BIL costing sheet

Save

Define goods received valuation for order delivery:Same path

Select new entries buttonValuation area :BILPValuation variant :007 production order -ActualSave Press enter to save in your request

123

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


Reference cost element :1100000


Enter & Save




Enter & Save




Enter & Save




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 buttonSelect controlling area :BILTechnical result analysis cost element :select 1100000Save

124


Define valuation method (Actual cost) ( Tr code is OKGC)Same path


Select actual cost button


Result analysis version :0

Result analysis key :FERT

Enter & Save


Define line Id’sSame 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


Define Assignment (OKGB)Same path

Select line ID EL that is revenues for controlling area :1000


Change the controlling area to BIL

Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999)

Enter & Save


Select line ID :EK Direct cost for controlling area 1000



Change mass cost element to 00004000++

Enter and save

Select line ID FK that is production cost for controlling area 1000


125


Production cost elements:400100 -400199 Personnel 00004001++400200-400299 Manufacturing 00004002++400500-400599 Depreciation 00004005++1200001 Activity allocation 00012+++++

Change master key cost element to 00004001

Enter & Save

Notes: for define assignment line ID brak up of WIP

Dept A Dept B ept C

Issue RM work in progress

RM over head

Production costs 100000 200000

Calculate internally WIP by using secondary cost elements and transfer to financial accounting require the break up of

WIP by using line ID’s and account assignments to line ID’s.

Select line ID FK production cost for controlling area BIL


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



Change mass cost element to 0001000001 :(settlement cost element)

Enter & save

Define update; (Tr.code is OKGA)

Same path



Version :0


126

Line ID :select EL revenues

Category :select N (costs not to be included)


Version :0


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


Line ID :ABR settled cost

Category :select A (Settled cost )

Save


Creation of two GL Masters:

WIP entry

Work in process DR BS CA(Current assets, Loans & Advances)

To Increase /Decrease in WIP P & L Credit INC/DEC in stocks

FS00

Give the GL Account no. :200123

Company code :BIL


Give the GL A/c No.200121 INV RM local

Company code :BIL

Enter

127

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


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)



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


Define results analysis version (OKG9)Same path

Select controlling area :BIL

select details button

Select transfer to Financial accounting check box

Save



RM issue overhead production costs Dept A Dept B Dept DFG not received

Settle to accounts by using secondary costs elements break up WIP (BY using line IDs)

128

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


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 buttonGive the plant :BILPEnterFor plant :BILPAssign variance key :BIL1SavePress 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 * standard price

Actual cost =Actual Production * actual price

Path :Same path

Select controlling area 1000 with target cost version 0



Change the description to target cost version for BIL

Enter & Save


Assign variance key in Material master

Path :Logistics –Material management-Material master –Material –Change –Immediately (MM02)

Give the material no.BILFG1


Select costing 1 view

Enter

129


Enter

Variance key :select BIL1

Save

Creation of cost element group (KAH1)

Give the cost element group :BILPRODNEnter Description :Production cost element for BILSelect Edit-Cost element -Select insert cost element button400100 400299 Personnel & Manufacturing400500 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



Text :BIL Production differences allocation structure

Save


Select :B2

Double click on assignments folder


Assignment Text

01 Direct costs(Raw materials)

02 Material overheads

03 Production costs

Save

Select assignment 01




Double click settlement cost elements folder


Receiver category :select G/L, GL account

130

Select by cost element check box

Save

Double click on assignments folder

Select assignment 02 Material overheads


From cost element :1200000 RM overhead rate

Double click on settlement cost elements folder


Receiver category :select G/L , GL Account


Save

Double click on assignment folder

Select assignment 03 production cost


Give the cost element group :BILPRODN

save

Double click on settlements cost elements folder


Receiver category :select G/L


Save

Create settlement profile:Same path


Settlement profile :BIL

Description :BIL production order differences settlement profile



Default object type :select G/L


Select equivalence number check box


Under valid receivers for GL account :Select settlement required

Document type :SA

Maximum no.of distribution rules :999


131

Save


Define CO.No.range interval for the business transactions

RKL -Actual Activity Allocation

KZPI- Actual overhead (Periodic)

User transactions code :KANK



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


Define exchange rate for type P (Standard truncation for cost planning for INR to EURO

(Transactions code OB08)

Select new entries buttonExchange rate type :PValid from :01.12.2008From currency :INRTo currency :EURDirect quotation :0.02SavePress enter to save in your request

FI Consultant job BILRM2 receipt

Purchase order Opening stock|GR|IV

Inventory RM local DR BSXTo Stock taking GBB BSA Current liability & provision

Production order differences are to be settled to accountsProduction order differences manufacturing DR PRD

To INC/DEC in stocks FG GBB AUA

Creation of 2 GL masters (FS00)

132

Give the GL A/c No.400201

Company code :BIL


Give the GL A/c No. :400200 Conversion charges

Company code :BIL

Change short text and GL account long text to production order differences

Select create /bank/Interest tab

Field status group change to G014 MM adjustment account

Save

GL A/c No. :100599

Company code :BIL


Give the GL A/c No.100500 VAT payable

Company code :BIL

Enter

Select type /Description tab

Chang short text and GL account long text to Stock taking


Change the field status group G049 (manufacturing cost accounts)

Save

Give the GL account no.300200 INC/DEC stock in FG

Company code :BIL


Valid from :01.04.2008 to 31.12.9999

Enter

Cost element category :select 22 external settlement

Save

Assignment of account for automatic postings (OBYC) (See the material )

Double click on transaction PRD Cost (Price) differences

Give the Chart of Accounts :BIL

Enter

Save

Give A/c No.400201 production order differences

Save


133

Select back arrow

Double click on GBB offsetting entry for inventory posting


General modification :BSA opening stock taking

Valuation class :BIL1

Account no. :100599 stock taking account


General modification :AUA production

Valuation class :BILL

Account :300200

Save


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


Change the pant to BILP

Enter and Save


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 :1000 with order type PP01



Enter and save


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



134

Enter and Save


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



Enter


Enter and save


END USER 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

135

Plant :BILP

storage location :HYD

Enter

Give the material no. :BILRM2

Quantity :100 kgs


From the menu select other goods receipts display

Enter


200121 Inventory RM LCL 15000 BILRM2 BIL1 BSX

100599 Stock taking 15000 BILRM2 GBB BSA BIL1

100*150

Raw material issue to production order:(Tr code is MB1A)

Select to reservation buttonGive the reservation no.66076Enter

QtyBIL RM1 :15 BIL RM2 :15SaveFrom the menu select goods issue displayEnterSelect accounting documents buttonSelect accounting document no.

200121 Inventory RM local 1125 BILRM1 BSX BIL1

400000 RM consumption local 1125 BILRM1 GBB VBR BIL1Quantity consumed * Avg rate ( 15 *75)

200121 Inventory RM local 2250 BILRM2 BSX BIL1

GBB VBR400000 RM consumption local 2250 BILRM2 BIL1

Qty consumed * Avg. rate (15*150)

Actual overhead calculation

Path :Accounting –Controlling –Product cost controlling –Cost object controlling –product cost by order –Period end closing –single functions –Overhead –Individual processing (Tr code is KGI2)


Period :9

Fiscal year :2008

136

Select text check box

Select dialog display check box

Execute

Select back arrow


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


Execute

Settlement of work in process to accounts (31.12.2008 (month end date) Path :Up to single functions the path is same –Settlement of individual processing (Tr code is K088)


Settlement period :9

Fiscal year :2008



Execute

Select detail lists button



300201 INC/DEC in stock WIP 3713 P &L Account

200123 Work in Process 3713 Balance Sheet

(Actual RM +Actual RM overheads)

To view work in process report

137

Path :Accounting –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 :BILPMaterial number :BILFG1From period :01 2008To Period :9 2008ExecuteSelect report call button

Confirmation of production orderPath :Logistics –Production –shop floor control –Confirmation –Enter-For operation –time ticket (Tr code is Co11N)


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


Enter



From the menu select goods receipt display

Document no.5000011861

Enter



200122 Inventory FG 2860 BILFG1 BSX BIL2

GBB AUF300200 INC/DEC in stocks FG 2860 BILFG1 BIL2

138

Qty produced * standard rate 10*286

To make production order technically complete (TECO)

Path :Logistics –Production –shop floor control –Order –Change (Tr code is CO02)

Give the order no.60003225EnterFrom the menu select functions –Restrict processing –Technically completeSave

Calculation of variances

Path :Accounting –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 back arrow


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 processing-Calculate

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 accounts


WIP to Period :9

Fiscal year :2008

Result analysis version:0


Execute

Settlement of work in process to accounts :KO88


Settlement period :9

Fiscal year :2008

139



Execute

Select details list button



GBB AUA

300200 INC/DEC in stocks FG 853 BILFG1 BIL2400201 Production order diff 853 period300201 INC/DEC in stock WIP 3713 P & L debit200123 work in process 3713 –Balance sheet credit

ASSET ACCOUNTING AREA

Capital work in progress line item settlement Machine purchase Debit to CWIP Machine no.1501.12.2008 Commission 13/12/2008

Freight charges 05.12.2008 settle from CWIP to respective assetCommissioning charges 12/12/2008

Define settlement profile:

Path :SPRO-Financial accounting –Asset accounting- Transactions-Capitalization of assets under construction –Define /Assign settlement profiles (TR code is OKO7)

Double click on define settlement profile

Select settlement profile AI Settlement assets under construction



Allocation structure :select A1( CO allocation structure)

Default object type :select FXA asset


Select equivalence numbers check box


Under valid reserves for fixed assets :Select settlement required

Document type :AA (Asset Posting)

Max no. distribution rules :999


Save


140

Double click on assign settlement :Profile to company code



Enter

For company code BIL assign settlement profile AI

Save


Creation of capital work in progress asset master (AS01)

Give the asset class :BIL4000 capital work in progress

Company code :BIL

Enter

Description :CWIP –General

Capitalized on :01.12.2008

Select time dependent tab

Business area :BILH

Select depreciation areas tab

Depreciation key :0000 (no depreciation)

Save

Note down the asset no.500001-0

Asset purchase posting (F-90)

Give the doc .Date & Posting date :01.12.2008

Type :KR

Company code :BIL

Posting key :31

Vendor account :2001


Business area :BILH

Text :Machinery purchase posting

Posting key :70

Account no. :500001-0

Transaction type :100 External acquisition

Remove the TDS codes

Enter

Amount :*

Text :+

Document –Simulate & Save

141

Freight payment (F-02) Give the Doc date & Posting date :15.12.2008

Type :SA

Company code :BIL

Posting key :70

Account :500001-0

Transaction type :100

Enter


Text :Freight payment

Posting key :50

Account no. :200105 SBI current a/c

Enter

Amount :*

Business area :BILH

Text :+

Document –simulate & save

Creation of machinery master (AS01)

Give the asset class :BIL 2000 Dept A

Company code :BIL

Enter

Description :Machine no.15

Capitalized on to days date

Select time dependent tab

Business area :BILH

Select depreciation area tab

Depreciation key :BIL1

Useful life :15 years

Period :6 months

Ordinary depreciation start date :Today’s date

Save

Note: the asset no.200004-0

Settlement of CWIP to machine no.15

Path :Accounting –Financial accounting –Fixed assets –Posting-Capitalized asset under construction –distribute (Tr code is A1AB)

142

Company code :BIL

Asset :500001

Sub number :0

Execute

From the menu select Edit –select –select all (F5)

Select enter button

Category :select FXA asset

Settlement receiver :200004-0

Give the percentage :100

Select back arrow

Save

Select settlement button (Shift +F8)

Give the asset value date :13.12.2008 (Today’s date)

Text :CWIP settlement


Execute

Go and see the document (FB03)Enter

Note :In live environment you take a purchase of machinery don’t enter directly Asset account, first enter in Capital Work in Progress after commissioning added all charged convert to asset accounting.

NEW GENERAL LEDGERS ( ECC 6 NEW FEATURES)

New general ledger (Multiple ledgers)

Accounting group V3 India group April –March B1 Leading ledger –0LAccounting group K4 US Group Jan –Dec K4 Non leading ledger –M1Accounting group V6 UK Group July-June V6 Non leading ledger 2 –M2

When we create ledgers automatically ledger group will be created

We can assign in ledger group number of legers for 0L we can assign all and M2

At the time of posting –If we don’t specify ledger group –It updates all legers.

FC (Foreign currency)Revaluation –Gain /Loss to charge to P & L account -For leading ledger 01 and non leading ledger M1-For UK group purpose it is to be added to asset and calculate depreciation for ledger group 0L-Assign M1 ( 0L is already assigned) –At the time posting it updates ledgers 0L and M1

Representative ledger and non-representative ledger

When we create legers ledger group will be created that ledger will be called representative ledger – we are assigning for 0L ledger group M1 –This is called non representative ledger.

143

At the of posting system checks representative ledger periods are open or not –we need not open non-representative ledgers periods.

Eg: Ledger GRP (Group)-0L

Ledger 01 Representative ledger(April 2008- March 2009)

January 2009 period should be openLedger M1 Non-representative ledgerJanuary 2009 –December 2009January 2009 period can be closed.

We are creating M1 ledger –Automatically M1 ledger GRP is created –we are assigning ledger 0L (0L=Leading ledger) –Always leading ledger only should be the representative ledger.

Document types and no.ranges are required non-leading ledgers –All non-leading ledgers we specify all document types and given only one number range –we give number range interval only for one number range.

CUSTOMIZATION

Activate new general ledger accounting:

Path :SPRO-Financial accounting –Financial accounting global settings –Activate new general ledger accounting

Select new general ledger active check boxSave(This is one time job work at client place)

Define ledgers for general ledger accounting

Path :SPRO-Financial accounting (new) -Financial accounting global settings (new) –Legers –Ledger-Define ledgers for general ledger accounting


Ledger :M1 ( Text filed)

Ledger name :Non leading ledger for BIL

Totals table :FAGLFLEXT

Ledger :M2

Ledger name :Non leading ledger for BIL

Totals table :FAGLFLEXT

Save



Define and activate non-leading ledgers:Same path

Give the ledger :M1

Enter

144


Company code :BIL

Fiscal year variant :K4

Posting period variant :BIL

Save


Select back arrow

Give the ledger :M2

EnterSelect new entries buttonCompany code :BILFiscal year variant :V6 (July to June)Posting period variant :BILSave

Define ledger group:Same path

Select ledger group :0L

Double click on ledger assignment folder


Ledger :M1

Deselect representative ledger check box

Save



Define document types for entry view in a ledger

Path :SPRO-Financial accounting (new)-Financial accounting global settings (new) –Document –Document types –Define document types for entry view in a ledger.

Give the ledger :M1EnterSelect new entries buttonType Number rangeSA 40 (give it any number range)KR 40DR 40WE 40WA 40RE 40RV 40WI 40AA 40SavePress enter to save in your request

145

Select back arrow

Give the ledger :M2EnterSelect new entries button

Type Number rangeSA 41KR 41DR 41WI 41WA 41WE 41WL 41RE 41RV 41AA 41

Save

Define document types for general ledger viewSame pathGive the ledger :M1EnterSelect new entries buttonType Number rangeSA 45KR 45DR 45WA 45WI 45WL 45WE 45RE 45RV 45AA 45Save

Press enter to save in your requestSelect back arrow

Ledger M2

EnterSelect new entries button

Type Number rangeSA 46KR 46DR 46WA 46WE 46WI 46WL 46RE 46RV 46

146

AA 46Save

Define document number ranges for entry view:

Path :Up to document the path is same – Document number rages –Documents in entry view –Define document number ranges for entry view




No.range :40

Year :2009

From no. :1100001

To no. :1200000

Enter


No.range :41

Year :2008

From no. :1200001

To no. :1300000

Enter and save


Define document no.range for general ledger view:

Path :Up to document the path is same –Document no.rages –Documents in general ledger view –Define document no.range for general ledger view




No.range :45

Year :2009

Form number :500001

To number :600000

Enter


No.range :46

Year ;2008

From number :600001

To number :700000

147

Enter & save


END USER AREA

Posting of transaction :

Path :Accounting –Financial accounting-General ledger –Posting –Enter general posting for ledger group (Tr code is FB01L)


Type :SA

Ledger group :blank

Company code :BIL

Posting key :40

Account number :200100 Cash A/c

Enter


Business area :BILH

Text :Equity share capital receipt

Posting key :50

Account no. :100000 Equity share capital

Enter

Amount :*

Business area :BILH

Text :+


Document date :Todays date

Type :SA

Ledger group :0L

Company code :BIL

Posting key :40

Account no. :200100 Cash A/c

Enter

Amount :50000

Business area :BILH

Text :Equity share capital receipt

Posting key :50

Account no. :100000 Equity share capital

Enter

148

Amount :*

Business area :BILH

Text :+


0L Leading ledger April 2008- March 2009 10th Period 105000 2008

M1 Non-leading ledger Jan 2009-Dec 2009 1st Period 105000 2009

M2 Nonleading ledger July 2008 –June 2009 7th Period 100000 2008

To view the ledger

Path :Accounting –Financial accounting –General ledger –Account –Display balances (new) (Tr cod is FAGLB03)

Account number :100000

Company code :BIL

Fiscal year :2008

Ledger :0L

Execute

Double click on balance 105000

To view the document

Select document no.check box


Select call up document overview button

Select back arrow 3 times

Select choose ledger button

Change the ledger to M1

Enter

Change the Fiscal year to 2009

Execute

Select back arrow

Select choose ledger button

Change the ledger to M2

Enter

Change the fiscal year 2008

Execute

Segments Creation

Scenario Future scenarioCompany code :BIL Company code BIL

149

| |Business area :HYD Segment HYD

| |Profit centers :Cement, Steel Profit center Cement , Steel

In future there will not be any developments Segments will be assigned in the for Business areas profit center

In case of automatic line items generation business Area will not be picked up

Profit center –through derivation rulesProfit center is updated automatically segment also will be updated.

Segment creation

Path :SPRO-Enterprise structure –Definition –Financial accounting -Define segment


Segment Description BGL Bangalore segment HYD Hyderabad segment Select save button or Ctrl+SPress enter to save in your request

Assign segment in profit centers:

Path :Accounting –Controlling profit center accounting –Master data profit center –Individual processing change (Tr code is KE52)

Profit center :select Steel

Enter

Segment :select HYD

Enter

Select activate button (Shift +F1)

One more profit center


Enter

Segment :select HYD

Select activate button

DOCUMENT SPLITTING

In document splitting, line items are split according to selected dimensions –so that we can draw financial statements for the selected dimensions at any time.

Eg: Profit Center wise, Segment wise

150

Sales Party X Account Dr 100000

To Sales Steel 80000 Steel profit centerTo Sales cement 20000 Cement profit center

Due to document splittingParty X Account Dr 80000 SteelParty X account Dr 20000 Cement

To Sales Steel 80000 SteelTo Sales Cement 20000 Cement

Creation of 3GL masters :FS00

A) Sales –Steel SalesB) Sales –Cement SalesC)Zero balance clearing a/c current liabilities & provisions

FS00

GL Account no.:300010

Company code :BIL


Give the Gl A/c No. :300005 Sales local own goods

Company code :BIL

Enter

Change short text and GL account long text to sales Steel

Save

Select edit cot element button

Valid from 01.04.2008 to 31.03.9999

Enter


Save

Second a/cGive the GL A/c No. :300011

Company code :BIL


Give the GL A/c :300010

Company code :BIL

Enter

Change short text and GL a/c long text to sales Cement

Save


151


Save

GL A/c No. :100530

Company code :BIL


Give the GL A/c No.100505 VAT payable

Company code :BIL

Enter

Change short text and GL account long text to Zero balance clearing

Select create /Bank /Interest tab

Change field status group to G067 (Reconciliation account)

Save

Classify G/L Accounts for document splitting:

Path :SPRO-Financial accounting (new)-General ledger accounts(new) –Business transactions –Document splitting-Classify G/L accounts for document splitting

Give your chart of accounts :BILEnterSelect new entries button

Account from Account to Category Description 100000 299999 01000 Balance sheet account300000 399999 30000 Revenue400000 499999 20000 ExpenseSavePress enter to save in your request

Define Zero balance clearing account Same path

Select account key :000

Double click on accounts folder


Enter


Give the G/L account :100530 Zero balance clearing A/c

Save


Activate documents splittingSame pathSelect document splitting check box

152


END USER AREA

Posting of sales (F-22)

Give the document date :Todays date

Type :DR

Company code :BIL

Posting key :01

Customer Account :100000

Enter

Amount :80000

Business area :BILH

Text :Sales invoice posting

Posting key :50

Account :300010 Sales Steel

Enter

Business area :BILH

Text : +

Select profitability segment button (right arrow button profit center steel)


Give the profit center Steel


One more item

Posting key :50

Account no. :300011 Sales Cement

Enter

Amount :*

Business area :BILH

Text :+

Select profitability Segment right arrow button

Give the profit center :Cement


Document –Simulate

From the menu select Document –Simulate

General ledger button

153

Save

From the menu select Document –Display

Select general ledger View button

CENTRAL EXCISE AND SALES TAX

CIN: Country India Version

MM Consultant SD consultantFI consultant –Creation of accounts and assignment of accounts

Central excise is an Indirect Tax

This will be charged at the time of sales, sales men (Removal of goods)

Central excise registration :15 digits code

(10 digits will be income tax PAN + 5 digits central excise)

Central excise registration will be plant wiseCentral excise rates are given in central excise tariff chapter IDs :8 digits codeUnder chapter id we have material description and rateBasic Excise Duty (BED) 14% maximum (now changed to 10%)Additional excise duty (AED) –Products like textiles

15% of basic amount –Now no AEDSpecial Excise Duty (SED)- Tobacco related products

8% on invoice original value Education cess 2% (on 8% excise duty)Higher and secondary education cess 1% (on 2% ED)

CEN VAT (Central Excise Value Added Tax) –Earlier MODVAT

Where we pay excise duty at the time of purchase, the excise amount can be adjusted when we pay excise duty on sales to excise dept.(Though collected from customer)

RG23A Part 1 Quantity updation - Excise duty on consumablePart 2 value updation - 100% CENVAT same year

RG23C Part 1 Quantity updation – Excise duty on Capita GoodsPart 2 value updation - 50% current year 50% next year

PLA Personal Ledger AccountBank excise credits and debits

ER1 (Excise return 1) (Earlier it was RT12 monthly return)To pay excise before 5th of next monthTo file the return before 10th next month

154

RG1 Finished goods register

Purchase scenario:

Consumable purchase capita goods purchase (stores)

Basic price 100 200Excise 8% 8 10% 20

---- ----108 220

VAT 4% 4.32 8.8----- ----112.32 228.8

Goods receipt for consumables

A) Goods receipt entry

Inventory RM local DR 100To GR/IR clearing RM LCL 100

B) Excise entry

RG 23 A BED DR 8To CENVAT clearing 8

Invoice verification for consumables

GR/IR clearing RM LCL DR 100CENVAT clearing A/c DR 8VAT Receivable DR 4.32

To party 112.32

Goods receipt for capital goods

A) Goods receipt entry Inventory stores local DR 200

To GR/IR clearing stores Local 200B) Excise entry

RG 23C BED DR 10CENVAT on hold DR 10

To CENVAT clearing a/c 20

Invoice verification for capital goods

GR/IR clearing stores LCL DR 200CENVAT clearing a/c DR 20VAT Receivable DR 8 .08

To party 228.08

Sales scenario Basic price 1000Excise rate 14% 140

155

-----1140

VAT 12.50% 142.5-------1283

Sales billing :Customer A/c Dr 1283

To Sales 1000To CENVAT suspense 140To VAT payable 142.50

Excise invoice creation CENVAT suspense a/c Dr 140

To Excise duty payable 140

Excise Balances:

RG23A RG23C PLAPurchase 8 10Payable on sale 140

To pay 5 6 129

PLA Deposit PLA A/c Dr 150

To Bank 150

Excise utilization Excise duty payable DR 140

To RG23A BED 5To RG23C BED 6To PLA 129

10) Sales tax Payment to Dept

VAT Payable 143VAT Receivable 13

To Bank 130

VAT Payable Dr 143To VAT Receivable 13.10To Bank 129

11) Final balances in excise registers

RG23A RG23C PLAPurchase /Deposit 8 10 150Utilized at the time of sale 5 6 129

-----------------------------------------------------------------Closing balance 3 4 21

======================================SAP:

156

Tax procedures TAXINJ: Formula based TAXINN condition based

In new implementations –TAXINNClient 000-SAP has given TAXINN and TAXINJExcise conditions /Service tax conditions / Education cess conditions /Sales tax conditions.

CENTRAL EXCISE CUSTOMIZATION

Activate Country Version India for specific fiscal year

Path :SPRO-Financial accounting –Financial accounting global settings –Tax on sales /purchases –Basic settings- India-Activate country version India for specific fiscal years

Select position buttonComponent :select INDEnterFor component IND select active check boxSavePress enter to save in your request

Check and change settings for tax processing

Path :Up to tax on sales / purchases the path is same –Basic settings-Check and change settings for tax processing

Select new entries buttonProcess :B1

Description :A/P Basic Excise duty (A/P BED)

Tax type :select 2 (input tax)

Posting indicator :select 2 (separate line item)

Save


Select back arrow

Select process :B1


Change the process to B2

Change the description :A/P CST

Posting indicator :select 3 (Distribute to relevant expense /revenue items)

Enter & Save

Select :B1,B2



Change description to APVAT

Enter

157

Change the description to AR VAT


Press enter and Save

Change process to B5

Change description to AR CST

Change tax type to :1

Posting indicator :2 separate line item

Enter and Save

Select B5



Change the description to AR VAT


Press enter & Save

Define condition types:

Path :Up to tax on sales /purchases the path is same -Basic settings-Check calculation procedure –Double click on define condition types


Condition type :BIL1

Description :AP Excise BED

Access sequence :select JTAX (IN: Excise Access)

Condition class :select D (Taxes)

Calculation type :select A (percentage)

Condition category :select D (Tax)

Select item condition check box

Save


Select back arrow

Select :BIL1


Change the condition type change to :BIL2

Change the description to :APCST

Access sequence :Change to JST1 (India Sales tax access)

Enter & Save

Select :BIL2


158

Change condition type to :BIL3

Change description :A/P VAT


Enter & Save

Define procedures

Path :Up to tax on sales /purchases the path is same –Basic settings –Check calculation procedure

Double click on define procedures


Procedure :TAXINN

Description :Sales tax India

Save


Select :TAXINNDouble click on control data folder


Step Condition type

Description From To Statistics Print Base type

Account key

100 Select BASB

Base amount Select 362

110 Calculated cell

100 100 Select static’s check box

120 BIL1 AP Excise BED

100 100 Select X

B1

150 Basic +Excise

110 140 Select static check box

160 BIL2 A/P CST 150 150 Select X

B2

170 BIL3 A/P VAT 150 150 Select X

B3

Save

Assign country to calculation procedure

Path :Up to tax on Sales /Purchases the path is same –Basic settings –Assign country to calculation procedure


Country :IN for India

159

Enter

For country IN assign procedure TAXINN

Save


Define tax codes for sales and purchases

Path :Up to tax on sales / purchases the path is same –Calculation –Define tax codes for sales and purchases (Tr code is FTXP)

Give the country :INEnterTax code :V0EnterGive the description :0% Input taxTax type :V (input tax)EnterSave

Tax code :V1

Enter

Description :V1 Dummy tax code for purchases

Tax type :V for input tax

Tax percentage rate :0

Enter & Save

Tax code :A0

Enter

Description :0% output tax

Tax type :A ( out put tax)

Enter & Save

One more tax code

Tax code :A1

Enter

Description :Dummy tax code for sales

Tax type :A (Out put tax)

Enter & Save

Creation of GL masters (FS00)To Copy

200156 RG23A BED A/c Current assets, Loans & Advances to copy 200155 VAT receivable

200157 RG23C BED A/c Current Assets, Loans and Advances to copy 200155 VAT

160

receivable

200158 CENVAT on hold Current Assets, Loans and Advances to copy 200155 VAT receivable

200159 PLA Account Current Assets, Loans & Advances to copy 200155 VAT Receivable

200155 VAT receivable already created

100506 CENVAT A/c clearing current liability provision copy 100505 VAT payable

100507 CENVAT A/c suspense current liability & provisions copy 100505 VAT payable

100508 Excise duty payable A/c current liability & provision copy 100505 VAT payable

100509 CST payable A/c current liabilities & provision X copy 100505

100505 VAT payable already created

Save

Note :In all accounts tax category * posting without check box

Define tax accounts

Path :Up to tax on sales /purchase the path is same posting –Define Tax accounts (Tr code is OB40)

Double click transaction B1 A/P Excise BED

Give the chat of accounts :BIL

Enter

Save

Select posting key button

Debit 40

Credit 50

Save


Select accounts button

Give the account no.100506 CENVAT clearing A/c

Save


Select back arrow

Double click on transaction B3 APVAT

Save


Debit 40

161

Credit 50

Save



Give the A/c no.200155 VAT receivable

Save


Maintain excise registration

Path :SPRO-Logistic general –Tax on goods movements –India –Basic settings –maintain excise registrations


Excise registration :2

(ECC number means excise control code)

ECC no. 1234

Excise Registration no.(15 digits code)

(10 digits PAN other 5 Excise no.) :123456

Excise range :Kukatpally range

Excise division :Kukatpally division

Commissionerate :Hyderaba commissionerate

Excise invoice items(EI) :999

Select partial credit check box

Save


Maintain company code settingsSame path




CENVAT document type :SA

Utilization FI document type :SA

Select debit account override check box

Select auto adjustment indicator check box

Select immediate credit on capital goods check box

First month “select April

Excise selection days :30 days

162

No.of excise invoice selection :999

Excise invoice selection procedure :FIFO

Save


Maintain plant settings:Same path

Select new entries buttonPlant :BILPExcise registration :002 (This is plant level)No.GRS per Excise invoice :select Multiple goods receipt multiple creditsSave

Maintain excise groups:Same path


Excise group :2

Description :Excise group for BILP

Plant :BILP

Excise registration :2

No.GRS per excise invoice multiple goods receipts, multiple credits

Select default challan quality in GR check box

Select EI capture check box under MIGO settings

Select post excise Invoice MIGO check box

Select duty different at GR check box

Select update RGI at MIGO check box

Save


Note :MRO –Invoice verification

Maintain series groupsSame path Select new entries buttonSeries group :2Series description :BILP series groupExcise registration :2SavePress enter to save in your request

Maintain excise duty indicators:Same path Select new entries buttonExcise indicator 1 :100% TaxExcise indicator 2 :50% TaxExcise indicator 3 :Nil TaxSave

163


Maintain excise defaults:

path :Up to India the path is same –Basic settings –Determination of excise duty –maintain excise defaults

select new entries buttonTax procedure :TAXINNCVD condition JCV1:A/P BED condition type :BIL1A/R BED condition type :BILABED percentage :BIL 4SavePress enter to save in your request

Maintain chapter ID’s:(8Digists excise code)

Path :Up to India the path is same –Master data –Maintain chapter Id’s

Select new entries buttonChapter ID :50000001Unit of measurement for excise kg Description as per law :ChemicalsSaveCreate request in your Work Bench Request for BILsaveSelect next entry (F8) buttonChapter ID :55000001Unit of measurement for excise kgDescription as per law SteelSave

Specify G/L Accounts per excise transaction

Path :Up to India the path is same –Account determination –specify GL accounts per excise transaction


Excise group :select 2

Excise transaction type :GRPO (Excise Invoice for goods receipt against PO)

Company code :BIL


RG23A BED :200156

RG23C BED :200157

MODVAT clearing :100506 (CENVAT clearing )

G/L account per PLA BED :200159

CENVAT on hold :200158

CENVAT suspense account :100507

PLA on hold :200159

164

Save


The same way the you send the accounts for all excise transaction types.

For excise transaction type DLFC same as above

Save

Note : PLA on Hold Dr To Bank

PLA A/c DrTo PLA on Hold A/c

(This is used for next year carry forward)

Specify SAP Script forms

Path :Up to India the path is same –Business transactions –Excise registers –Specify SAP script forms

Select all the registers of company Code :IN01Select copy as buttonChange the company code to BIL for Registers and returnsSave press enter to save in your request

Maintain number rangesPath :Up to India the path is same –Tools-Number ranges

Object :Select J_1IINTNUM (Internally document number to be generated )Select number rages button



Number rage :01

Year :2008

From no. :1

To no. :100000

Save



Object :Select J_1IRG23A1 (RG23A part 1 no. range object)

Select number rages button

Excise group :select 2



No. range :01

Year :2008

From number :100001

165

To number :200000

Enter & save



Object :J_1IRG23A2 This is (RG23A part II Number rage object)

Select number rage button

Excise group :2



No.range :01

Year :2008

From no. :200001

To no. :300000

Enter & save



Select object J_1IEXCLOC (Local excise invoice number rage for sales)

Select number ranges button

Series group :2



No.range :01

Year :2008

From number :300001

To number :400000

Enter & Save



Select object :J_1IINTPR2 despatch series number

Select number ranges button

Excise group :2



No.range :01

Year :2008

From no. :500001

To no. :600000

Enter & save

166


Excise rates maintenance

Use the Tr code is J1ILN (India local menu) (This have no path)

Path :Indirect taxes -Master data -Excise rate maintenance (Tr code is J1ID)

Select material & chapter ID combination radio button

Select maintain button(F5)


Material :BILRM1

Plant :BILP

Chapter ID :5000001 Chemicals

Material type :Raw materials

GR with reference :select multiple goods receipt , multiple credits

Declared :1

Declaration date :29.02.2008

One more

Material :BILFG

Plant :BILP

Chapter ID :5500001 Steel

Material type :RG1

GR with reference :Multiple goods receipts, Multiple credits

Declared :1

Declaration date :29.02.2008

Save

Select back arrow

Select CENVAT determination radio button

Select maintain button



Input material :BILRM

Output material :BILFG

Intimation date :01.04.2008

Save

Select back arrow

Select vendor excise details radio button

167



Vendor :2001

Excise indicator for vendor :1 ( 100% Tax)

Type of vendor :select manufacturer

Save

Select back arrow

Select customer excise details radio button

Select maintain button (F5)


Give the customer no. :200101

Excise indicator for customer :select 1 (100% Tax)

Save

Select back arrow

Select excise indicator for plant radio button



Company code :BIL

Plant :BILP

First month :select April

Excise indicator for company :select 1 (100% Tax)

Save

Select back arrow

Select excise indicator for pant and vendor radio button



First column excise indicator :select 1

Second column excise tax indicator for vendor :select 1 (100% Tax)

Third column excise tax indicator for vendor :Select 1 (100% tax)

Save

Select back arrow

Select excise indicator for plant & customer radio button



First column excise tax indictor for company :select 1 (100% tax )

Second column Excise indicator for vendor :Select 1 (100% tax)

Third column excise tax indicator vendor :select 1 (100% tax)

168

Save

Creation of condition records(FV11) (No path this one)

Condition type :select BIL1 AP Excise basic


Select plant /vendor /material radio button

Enter

Plant :BILP

Vendor :2001

Material :BILRM1

Amount :8 (Excise rate & Tax rupees)


Valid to :31.03.2009

Tax code :V0

Save

Select back arrow

Condition type :BIL3 A/P VAT


Select plant /vendor /Material radio button

Plant :BILP

Vendor :2001

Material :BILRM1

Amount :4


Valid to :31.03.2009

Tax code :V0

Save

SD Excise customization

SD consultant job

Define condition types

Path :SPRO-Sales & Distribution –basic functions –Pricing –Pricing control –Define condition types

Double click on maintain condition types


Condition type :BIL4

Description :A/R Basic excise duty (AR BED)

169

Access sequence :JEXC (India Excise Access)

Plus/ Minus :Select A Positive

Condition class :select A discount or Surcharge

Calculation type :select A (Percentage )

Select Item condition check box

Select amount /percentage check box

Save


Select back arrow

Select :BIL4Select copy as button

Change the condition type to BILA

Description A/R Excise BED (100% copy)

Access sequence :select JDUM (India 100 copy of other fields are values)

Enter & Save

Select BIL4 & BILA


Change condition type to BIL5

Description :A/R CST

Access sequence :select JCST (India Central Sales Tax :Access)

Plus / Minus : Blank

Calculation type :A (Percentage)

Condition class :change to D (Taxes)

Condition category :select D (Tax)

Enter

Change the condition type to BIL6

Description :AR VAT

Access sequence :change to JLST (India Local sales tax access)

Plus or Minus :Blank

Calculate type : A (Percentage)

Condition class :select D taxes

Condition category :select D tax

Enter & save

Define account keys:

Path :SPRO-Sales & Distribution –Basic functions –Account assignment/costing –Revenue account determination –Define and assign account keys –Double click define account key


170

Account key :B4Name :A/R Excise BED

Account key :B5Name :AR CST

Account key :B6Name :AR VATSave Press enter to save in your request

Check and change settings for tax processing

Path :SPRO-Financial accounting –Financial accounting global settings –Tax on sales /Purchases –Basic settings –Check and change settings for tax processing

Select B2 and B3



Change the description to A/R CST

Tax type :select 1 (Output tax)

Posting indicator :select 2 (separate line item)

Enter

Change process to :B6

Change the description to A/R VAT

Tax type :change to 1 Output tax

Enter & save


Define tax accounts:

Path :up to Tax on sales /Purchases the path is same –Posting –Define tax accounts (Tr code is OB40)

Double click on truncation :B5 AR CST

Give your Chart of Accounts :BIL

Enter

Save


Debit :40

Credit :50

Select save button


Select accounts buttonGive the account no.100509 CST (payable)Save

171

Press enter to save in your requestSelect back arrowDouble click on transaction :B6 ARVATSave


Debit :40

Credit :50

Save



Give the account no.100505 VAT payable

Save


Maintain pricing procedures

Path :SPRO-Sales & Distribution –Basic functions –Pricing –pricing control –Define and assign pricing procedures

Double click on maintain pricing proceduresSelect new entries buttonProcedure :BILDescription :BIL domestic Pricing procedureSavePress enter to save in your request

Select :BILdouble click on control data folderSelect new entries button

Step Condition type

Description From To Require Statistics Print Account key

100 PR00 Price Select Check box (√)

X ERL

Subtotal 100 100 Select Check box (√)

Select Check box (√)

200 BIL 4 A/R Basic excise duty

100 100 B4

210 Basic +Excise

100 200 Select Check box (√)

172

400 Base value 100 -- Select Check box (√)

410 BILA A/R BED (100% copy) Basic +Excise


X

420 400 410 Select Check box (√)

450 BIL5 AR CST 420 X B5460 BIL6 AR VAT 420 X B6500 Basic

+Excise+ Sales tax


Save

Define pricing procedure determination

Path :Up to pricing control the path is same –Define and assign pricing procedures ( Tr code is OVKK)

Double click on define pricing procedure determination Select position button Sales organization :BILSenterFor BILS change the pricing procedure to BILSavePress enter to save in your request

Define tax determination rules

Path :SPRO-Sales and Distribution –Basic functions –Taxes –Define tax determination rules

Select new entries buttonTax country :INSequence :1Tax category :BIL5

Tax country :IN for IndiaSequence :2Tax category :BIL6 Name:A/R VATSavePress enter to save in your request

Define tax relevancy of mater records:Same path Double click on customer taxesSelect new entries button

Tax category Name Tax classification Description BIL5 A/R CST 0 Nil TaxBIL5 A/R CST 1 TaxableBIL6 A/R VAT 0 Nil TaxBIL6 A/R VAT 1 Taxable

173


Select back arrowDouble click on material taxesSelect new entries button

Tax category Name Tax classification Description BIL5 A/R CST 0 Nil TaxBIL5 A/R CST 1 TaxableBIL6 A/R VAT 0 Nil TaxBIL6 A/R VAT 1 Taxable


Assign delivering plants for tax determination (OX10)Same path

Select position button Plant :BILPEnterSelect plant :BILPSelect details buttonSelect address button(Shift +F5)Region :select AP (Andhra Pradesh)Enter & SavePress enter to save in your request

Assignment of accounts for automatic postingsTr code is VKOA

Double click on Table 1


Application area :V

Condition type :KOFI



Account assignment group for customer :01 domestic revenues

Account assignment group for customer :03 finished goods

Account assign group for account key :B4 AR Excise duty

GL Account 100507 (Send VAT suspense account)

Save


SD END USER AREA

Assign tax classification material master (Tr code is MM02)

174

Give the material no.BILFG


Select sales :sales organization data 1


Plant :BILP



Enter

For tax classification tax category BIL5 0 taxable

For tax classification tax category BIL6 1 taxable

Save

Enter tax classification in customer master (Tr code is XD02)

Select the customer :200101Company code :BIL

Division :BS

Select customer sales area button

Double click on sales organization :BILS

Enter

Select sales area data button

Select billing documents tab

For tax category :BIL6

Tax classification :1 (taxable)

Save

Creation of condition records (Tr code is VK11)

Condition type :select BIL4 A/R basic excise duty


Select material radio button

Enter



Material :BILFG

Amount :10

Valid from to :01.04.2008

Valid to :31.03.2009

Save

175

Select back arrow

Select condition type BILA (A/R BED 100% copy)


Select sales organization radio button

Enter


Amount :100


Valid to :31.03.2009

Save

Select back arrow

Condition type :select BIL6 AR VAT


Select country /Plant/Region /Material radio button

Enter

Country :IN

Plant :BILP

Region :AP

Material :BILFG

Amount :4 (Percentage)


Valid to :31.03.2009

Tax code :select A1 (Dummy tax code for sales)

Save

To check whether 0% input tax code and 0% output tax code assigned to company code to BIL

Path :SPRO-Financial accounting –Financial accounting global settings –Tax on sales /Purchases -posting -Assign tax codes for non taxable transactions(OBCL)


Company code :BIL

enter

For company code :BIL

Input tax code :V0

Output tax code :A0

Company code :BIL

enter

For company code :BIL

Input tax code :V1

176

Output tax code :A1

Save


Creation of Purchase order (ME21N)

Purchase org :BILR

Company code :BIL

Vendor :2001

Enter

Give the purchasing group :BIL

Item :10

Material :BILRM1

PO Quantity :100 Kgs

Net price :75

Currency :INR

Plant :BILP

Enter

Select invoice tab

Tax code :select V1 dummy tax code for purchases

Enter

Select Taxes button

Select back arrow

Save

Not the purchase order no.4500017094

To open material periods for January (MMPV)

From company code ;BIL

period :10

Fiscal year :2008

Select check and close period radio button

Execute


(Note : Use the Tr code J1EI for creation of Excise Invoice no’s following the other steps same above)Give the Excise invoice no. and date

Goods receipt ( Tr code is MIGO)Select goods receipt

Give the purchase order no.4500017094

177

Enter

Quantity in delivery note :100 kgs

Select item ok check box

Select where tab


Press enter

Select excise invoice tab

Give the excise invoice no.1

Excise invoice Date :Today’s date

Save

Select display button

Enter

Select document information tab

Select FI documents button

Select back arrow

Select excise invoice tab

Select more data button

Select part 2 tab


Invoice verification (MIRO)

Invoice date :05.01.2009

Posting date :11.01.2009

Reference :51

Select calculate tax check box

Text :Invoice verification

Tax code :V1 (Dummy tax code)

Purchase order no. :4500017094

Enter


Enter

Business area :BILH

Select payment tab :Base line date (Today’s date)

Payment term :0001

Enter & Save

From the menu select invoice document display

Select follow on documents button

To print excise registers: (Tr Code is J1ILN)

178

Path :Indirect taxes –Registers –Excise tax –Extract (J2I5)

Excise group :2


End date :31.01.2009

Select any register radio button

Select RG23A part I check box

Select RG23A part II check box

Execute

Enter

Select back arrow

Select print utility program (TR code is J2I6)

Select RG23A part 1 radio button

Execute

Excise group :2Start date :01.01.2009

End date :31.01.2009

Execute

Output device :LP01

Select print preview button


Select RG23A part II radio button

Execute

Excise group :2


End date :31.01.2009

Execute

Output devise :LP01

Select print preview button

To view sales tax register (Tr code is J 1 I L N)

Indirect taxes –Registers –Sales tax –sales tax register (J1I2)

Company code :BILTax code :V1LST condition type :BIL3Execute

179

SD EXCISE

Creation of sales order (VA01)

Order type :OR



Division :BS

Enter

Sold to party :200101

PO Number :2

PO date :Today’s date

Required delivery date :Today’s date


Payment terms :0001

Item :10

Material :BILFG

Order quantity :10 Kgs

Enter


Select item :10

From the menu select GotoItem conditions

From the menu select Edit –In complication log (Ctrl +F8)

Select save button

Note the sales order no.11771

Delivery (Tr code is VL01N)

Give the shipping point :BILH

Order no. :1171

Enter

Actual goods inward received date :Today’s date

Select item :10

Select picking tab

Picked quantity :10 Kgs

Select post goods issue button

From menu select out bound delivery –Display

Enter

From the menu select Environment-Document flow

180

Keep the cursor on go goods delivery no.


Select accounts document button

Select account document no.

Post : Inventory FG 700IN/DE Stock FG 700

Sales Billing (VF01)

Select the delivery no.


Save

From the menu select billing document –display

Select accounting button


Excise invoice creation (Tr code is J1ILN)

Path :Indirect taxes –Sales /Out bond movements-Excise invoices –For sales order –Out going Excise invoice create /Change /Display (Tr code is J1IIN)

Select from billing button (F5)

Enter

Excise group to :2

Serious group :2

Select utilization button (F6)

Save


CENVAT suspense A/c DrTo Excise duty payable

Go and see sales billing display (VF03)

Give the billing document no.90036108Select accounting buttonSelect accounting document no.

RG23A BED posting (F-02)


Type :SA

Company code :BIL

181

Posting key :40

Account no. :200156 (RG23A BED)

Enter

Amount :50000

Business area :BILH

Text :RG23A Debit

Posting key :50

Account no. :200105 Bank account

Enter

Amount :*

Business area :BILH

Text :+


PLA Deposit (F-02)


Type :SA

Company code :BIL

Posting key :40

Account no. :200159 (RG23A BED)

Enter

Amount :100000

Business area :BILH

Text :PLA deposit

Posting key :50

Account no. :200105 Bank account

Enter

Amount :*

Business area :BILH

Text :+


Excise duty payment: (Tr code is (J1ILN)

Path :Indirect taxes –Sales /Out bond movements –fortnightly payment (J2IUN)

Company code :BIL

182

Plant :BILP

Excise group :2

Period :01.03.2009 to Today’s date

Business area :BILH

Execute

RG23A Utilized :6.60

Select duty button

Select Simulate button (F7)

Select right mouse button


Save

Go and see the document (FB03)

Document no. :38Company code :BILFiscal year :2008Enter

FINANCIAL STATEMENT VERSION

Balance Sheet and Profit & Loss account format creation

In India –Companies Act –Schedule VI format

Summary Schedules Amount

Share capital Equity share capital 100000Preference share capital 100001

Reserves & SurplusGeneral Reserves 100101Capital Reserve 100102

Secured loansUnsecured loans

By using 0-9 levels –we can get all 3 versions consultant creates 2 versions –Summary -Schedules

In 000 Client SAP has given for India Bain.

Path :SPRO-Financial Accounting –General ledger Accounting-Business transactions-Closing –Document-Define financial statement versions.


Financial statement version :BIL1

Name Balance Sheet and Profit & Loss account

183

Maintain Language :EN

Select item keys automatic check box


Save


Select financial statement item button

Keep the cursor on AML1

Select create items button

Give the items :Balance Sheet

:Profit & Loss account

:Net profit /Loss transfer to Balance Sheet

Enter

Kept the cursor on profit and loss account

Double click on No text exists against Liability +Equity

Give item :Liabilities

Enter

Double click no text exists against Assets

Give the item Assets

Enter

Keep the cursor on Assets

Press select button (beside reassign button)

Keep the cursor on Balance sheet

Select resign (Shift+F6) button

Select subordinate radio button

Enter

Keep the on liabilities

Press select button (F9)

Keep the cursor on Balance Sheet

Select resign button (Shift+F6)


Enter

Keep the cursor on Profit & Loss account

Select create item button

Give the items :Income

Give the items :Expenditure

Enter

Save


184

Keep the cursor on Liabilities


Give the Share capital

Reserves & Surplus

Secured loans

Unsecured loans

Enter

Keep the cursor on Assets


Give the items :Net Fixed Assets

:Net Current Assets

:Misc. expenditure to the extent not written off Eg: Preliminary exp.

Enter

Keep the cursor on Income


Give the heads :Sales

:Other Income

:Inc/Dec in Stocks

Enter

Keep the cursor on expenditure

Select create item button

Expenditure :


Personnel expenses

Manufacturing expenses

Administration Expenses

Interest

Depreciation

Enter and Save

Double click no text existent against net result :Profit

Give the item :Net profit transferred from P & L Account

Enter

Keep the cursor on Net profit transfer from P & L Account


Keep the cursor on reserves & Surplus

Select reassign button (shift +F6)


185

Enter

Double click on no text exists against net result loss

Item :Net loss transferred from P & L Account

Enter

Keep the cursor on net loss transferred from P & L Account


Keep the cursor on Misc. Expense to extend not written off

Select reassign button


Enter

Save

Assignment of accounts are to be assigned to the last note

Keep the cursor on Share Capital

Select assign accounts button

Enter

From Account :100000

To Account :100099

Select debit check box

Select credit check box


To :199999



Note :Expect 100000 all are same

Enter

Keep the cursor on net fixed assets



To Account :299999



Enter

Keep the cursor on sales


From account :300000

To account :399999

186

Select debit and Credit check box

Enter

Keep the cursor on Raw material consumption

Select assign account button


To account :499999

Select Debit and Credit check box

Enter

Keep the cursor net profit/loss transferred to Balance Sheet

Select Assign account button


Select Debit & Credit Check box

Enter & Save

To check whether all accounts assigned or not

Select check button

Select non assigned account check box

Enter & Save

Liabilities Amount Sources of Funds:

100000100001100002

Share capital 100003------- X100100100101

Reserves & Surplus 100102Secured loans XUnsecured loans X

------Total Liabilities X

=====Double click on liabilities

Start of group Liabilities

End of group total liabilities

Select display total check box

Enter

Double click on share capital

Start of group :Source of funds

End of group :Share capital

Select display totals check box

187

Enter

Double click on Reserves & Surplus

End group :Reserves & Surplus


Enter

Note :Same way secured and unsecured loans

Double click on assets

Start of group :Assets

End of group :Total Assets


Enter

Double click on Net fixed Assets

Start of group :Application of funds

End of group :Net fixed Assets


Enter

Double click on Misc. expenditure to extend not written off

End group Misc. expenditure to the expend not written off

Select display totals

Enter

Double click on Profit & Loss Account

End of Group :Net Profit /Loss for the year


Enter

Double click on Income

Start of group :Income

End of Group :Total Income


Enter

Double click on sales

End of Group :Sales


Enter

Double click on Expenditure

Start of group :Total expenditure


Enter

Double click on Raw material consumption

188

End of group :Raw material consumption


Enter

Double click on net profit /Loss transferred to Balance sheet

Start of group :Net Profit /Loss transferred to balance Sheet


Enter

Double click on No text exist against P & L result

Item :Net profit/Loss transferred to Balance Sheet

End of Group: Net profit/Loss transferred to Balance Sheet


Enter & Save

Open one more session :

Path :Accounting-Financial Accounting –General Ledger-Information system—General Ledger reports-Balance Sheet/Profit loss Statement /Cash flow-General –Actual/Actual comparisons- Balance sheet/Profit Loss Statement (S_ALR_87012284)

Company code :BIL

Business area :BILH

Financial Statement version :BIL1

Reporting year :2008

Reporting period :1 to 16

Comparison year :2007

Comparison periods :1 to 16

Select classical list radio button

Select special evaluations tab

Balance sheet type :1 (Standard Financial Statement )

Select output control tab

Company code summarization :Select 1 (Balance sheet per company code)

Business area summarization :select 1(Balance Sheet per business area)

Summary report :3

Comparison type :1

Note :2 types of comparison in SAP2008 2007

Sales 100 751) Percentage of Increase Current year –Previous year *100

----------------------------------Previous year

100-75/75*100=33.3

189

2) Percentage of growth :Current year *100 -------------------- Previous year 100/75=133

Scaling :5/2

Scaling note :A) Only Rupees without paise 0/0

B) Rupees with paise 0/2

C)Rupees in lakhs –without decimals 5/0

D)Rupees in mission without decimals 6/0

E)Rupees in crores without decimals 7/0

F)Rupees in laksh –Thousands in decimals 5/2

Sales 987654321.55Rupees in lakhs (100000) 5 Decimals

2 decimals 2 decimals 9876.54


Select back arrow

Select special evaluations tab

Give the display currency dollar execute

ASSET ACCOUNTING REPORTS:

1.Depreciation forecast

Path :Accounting –Financial accounting –Fixed assets –Information system –Reports on asset accounting –Depreciation for cost –Depreciation on capitalized assets (Depreciation simulation) (Tr code is S_ALR_87012936)

Give the company code :BILReport date :31.03.2011Execute 2. Fixed asset schedule as per schedule VI of companies Act

Gross block in the beginning year

Additions during the year

Sales /Transfers during the year

Gross block in the year end

Dep.for the year end

Acc.Dep.in the beginning of year

Dep.for the year

Dep on sales /Transfer

Acc.Dep in the year

Net block in the year end

Net block in the beginning

Information systems –Accounting –Financial accounting –Fixed assets –Asset History sheet (Tr code is AR02

190

Give your company code :BILReport date :31.03.2009Select group totals only radio button Execute

(Note :Retirement mean sale of asset)

Select asset buttonDouble click on asset retirement

PROJECT

BIL group (to go for ERP)Packages available Cost / Feature/Time

ERP PackagesSAPOracle FinancialsJD EdwardsPeople soft

Decided to go for SAP –Consulting firms Cost/Support /Experience

1) WIPRO2) Infosys3) Satyam4) Intell5) Zensar

Buy SAP package from SAP-India –Bangalore with the support of WIPRO –Hyderabad vendors.

Implement all the modules at all locations (BIG Bang project) or in a phased manner

BIL WIPROA) Project Manager A) Project ManagerB) Accounts Manager B) FI Consultant C)Cost Accountant C)Co Consultant D) Purchase Manager D)MM Consultant E) Sales Manager E)SD Consultant F)IT Staff F) BASIS Consultant

G) ABAP Programmers

Kick of Date means Start date

Form a staring committee

BIL Senior peopleWIPRO Senior people

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Project Mangers BIL and WIPRO

BIL core team members –As is process existing process and requirements from SAP

WIPRO- Study the process and prepare to be process

GAP reports –Write to SAP the requirement /through programmer/work around /user exits.

WIPRO-Customization based clients requirement .BIL core team –TestingWIPRO –Customization document

Before going live Training to the BIL company users will be given

Fix ago live date:Customization will be transported from development client to production client.

Up load masters in production client

Upload balances in production client

Give the number ranges in production client.

On go live date :Enter transactions in production client.

Support: For the issues raised by BIL end users.

Rollouts : Implementing SAP in different locations afterwards

ASAP Methodology (ASAP –Accelerated SAP)1. Project Preparation2. Business blue print 3. Realization4. Final preparation 5. Go and live and support

OSS mean Online Support Service

Land Scape1. Development Quality testing Production

Send box –All scenarios configuration selected scenario Testing

2. Development Production

R/ 3 StructurePresentation application data base SAP Package data stored in data base server

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CO DOC

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Transcript of CO DOC