Manufacturing Cost Center Planning...

EHP4 for SAP ERP 6.0

March 2010

English

Manufacturing Cost Center Planning (176)

SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany

Business Process Documentation

SAP Best Practices Manufacturing Cost Center Planning (176): BPD

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Example

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Contents

1 Purpose ................................................................................................................................... 5

2 Prerequisites............................................................................................................................ 5

2.1 Master Data ...................................................................................................................... 5

2.2 Roles ................................................................................................................................ 6

2.3 Preliminary Steps ............................................................................................................. 6

2.3.1 General Cost Center Planning .................................................................................. 6

2.3.2 Setting Controlling Area ............................................................................................ 7

3 Process Overview Table ......................................................................................................... 7

4 Process Steps ....................................................................................................................... 10

4.1 Cost Center Masters ...................................................................................................... 10

4.2 SOP through Long-Term Planning/Capacity.................................................................. 10

4.3 Transfer Planned Activity Requirements for Production ................................................ 10

4.4 Plan Activity Based on Capacity .................................................................................... 12

4.5 Plan Reconciliation ......................................................................................................... 14

4.6 Changing to Calculate Rates Based on Capacity (Optional) ......................................... 15

4.7 Accepting Scheduled Labor and Overhead Activity for Manufacturing Cost Centers ... 16

4.8 Plan Direct Labor Expenses........................................................................................... 16

4.9 Plan Direct Overhead Expenses .................................................................................... 18

4.10 Downloading Cost Elements to Excel for Income/Expense Budget ........................... 20

4.11 Updating Budget Values for Operation Cost Budget .................................................. 23

4.12 Uploading Cost Elements for Income and Expense Excluding Operations ............... 23

4.13 Plan Statistical Key Figures ........................................................................................ 24

4.14 Plan Assessment ........................................................................................................ 25

4.14.1 Checking Plan Assessment: Buildings and Maintenance Costs ............................ 25

4.14.2 Executing Plan Assessment: Quality Costs ............................................................ 26

4.15 Checking Plan Accrual Calculation ............................................................................ 27

4.16 Confirming Allocation of Operations Cost Budget ...................................................... 29

4.17 Activity Price Calculation ............................................................................................ 29

4.18 Confirming Accurate Calculation of Price ................................................................... 31

4.19 Standard Cost Calculation .......................................................................................... 32

4.20 Final Planning Steps ................................................................................................... 32

5 Appendix ................................................................................................................................ 32


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Manufacturing Cost Center Planning

1 Purpose During the annual budgeting process, the managers of manufacturing cost centers plan the costs for various cost types/elements for their respective cost centers. The usual starting point for development of these plans is the actual data for the current/previous year.

In this process, the previous year’s actual expenses for these cost centers are copied into an AOP (annual operative planning) budget version in cost center accounting. As an alternative the previous year’s budget data can also be used as a starting point for the exercise. The data in this version is downloaded into spreadsheets by each cost element and cost center. The respective cost center managers review and update the budget values according to their requirements and plans. Then these plans are uploaded back into the system. The plans in the system are reviewed and finalized.

The planned depreciation on fixed assets is transferred separately to the cost center plan version. The system calculates the planned depreciation on assets by cost center based on the asset values posted on the cost centers. In the case of cost centers having machinery, the depreciation is planned based on cost center and activity type.

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

2 Prerequisites

2.1 Master Data

You have entered the master data required to go through the procedures of this scenario. Ensure that the following scenario-specific master data exists before you test this scenario:

A description of all CO master data can be found in the document CO_MasterData_Overview.xls.

Common Master Data provided for all Areas

Master Data Value Selection Comment

Cost Center All

Cost Center Group All

Cost Elements All

Service Area


Cost Center Services/ Consulting

Manufacturing Area / Trading Area


Cost Center Manufacturing Cost Center


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2.2 Roles

Use

The following roles must have already been installed to test this scenario in the SAP NetWeaver Business Client (NWBC). The roles in this Business Process Documentation must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

Prerequisites

The business roles have been assigned to the user who is testing this scenario.

Business role Technical name Process step

Employee (Professional User)

SAP_NBPR_EMPLOYEE-S Assignment of this role is necessary for basic functionality.

Enterprise Controller

SAP_NBPR_CONTROLLER-M Transfer planned activity requirements for production

Plan activity based on capacity

Plan reconciliation

Change to calculate rates based on capacity

Accept Scheduled Labor and Overhead Activity for Manufacturing Cost Centers

Plan direct labor expenses

Plan direct overhead expenses

Download/Upload cost elements to excel for income/expense budget

Plan statistical key figures

Plan assessment

Check plan accrual

Confirm allocation of operations cost budget

Activity price calculation

Confirm accurate calculation of price

2.3 Preliminary Steps

2.3.1 General Cost Center Planning

Use

All Non manufacturing cost centers are planned. The assessment cycles are executed. The plan version is copied and maintained (see General Cost Center Planning (175) scenario).

Procedure


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For this activity, run the General Cost Center Panning (175) scenario document in its entirety.

2.3.2 Setting Controlling Area

Use

The controlling area is to be set before you carry out the first steps in controlling.

If the controlling area is already assigned in the user parameters (see the Quick Guide), this step is no longer necessary and can be omitted.

Procedure

1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Accounting Controlling Cost Element Accounting

Environment Set Controlling Area

Transaction code OKKS

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role

Business role Enterprise Controller

(SAP_NBPR_CONTROLLER-M)

Business role menu Overhead Cost Controlling Planning Actual Posting

Preparation Set Controlling Area

2. On the Set Controlling Area screen, enter Controlling area 1000.

3. Save (F5) your entry as a user parameter.

3 Process Overview Table Process step External

process reference

Business condition

Business role

Transaction code

Expected results

Cost Center Masters

See 155.03 Create Cost Center and Cost Center Group scenario



Cost centers are created

SOP through Long-Term Planning/Capacity

See 173 – – SOP through Long Term Planning Transfer to LIS/PIS/Capacity



The planned requirements are transferred to active version in demand management.

Transfer Planned Activity Requirements

Annually during AOP process


KSPP


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Process step External process reference

Business condition

Business role

Transaction code

Expected results

for Production

Plan Activity Based on Capacity



KP26 Capacity updated on cost center

Plan Reconciliation



KPSI Scheduled activity added to plan activity and updated as plan on the cost center

Change to Calculate Rates Based on Capacity (Optional)


KP26 The plan is updated with the correct plan price indicator.

Accept Scheduled Labor and Overhead Activity for Manufacturing Cost Centers

If you want to use scheduled activity for rate calculation, you need to manually accept scheduled labor and overhead activity for manufacturing cost centers.

Manual step The scheduled Labor and Overhead Activity for Manufacturing Cost Centers is accepted.

Plan Direct Labor Expenses



KP06 Plan updated with correct plan price indicator.

Plan Direct Overhead Expenses



KP06 Values for budget by cost element updated on manufacturing cost centers.

Download Cost Elements to Excel for Operations Cost Budget



KP06 Values for budget by cost element updated on manufacturing cost centers.

Update Budget Values for Operation Cost Budget



Manual step Planned values in excel

Upload Cost Elements for

Annually during AOP

Enterprise KP06 Updates saved in Excel file


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Process step External process reference

Business condition

Business role

Transaction code

Expected results

Operations Cost Budget

process Controller format.

Plan Statistical Key figures


KP46 Statistic key figures per cost centers are available for reporting, as distribution ratio for assessment cycles

Plan Assessment


KSUB Assessment of quality costs

Check Plan Accrual Calculation



KSA8 Accruals are calculated for manufacturing cost centers.

Confirm Allocation of Operations Cost Budget



S_ALR_87013611

Values for budget by cost element updated on operations cost centers.

Activity Price Calculation



KSPI Budgeted balance of operating cost centers is 'zero' because all costs allocated to manufacturing

Confirm Accurate Calculation of Price



S_ALR_87013611

The allocation was successful.

Standard Cost Calculation

See 178 - - Standard Cost Calculation scenario

Cost calculation without material master master update

See 178 - - Standard Cost Calculation scenario

See 178 - Standard Cost Calculation scenario

Correct standard cost calculation

Final planning steps

See 175 - - General Cost Center Planning scenario (final planning steps)




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4 Process Steps

4.1 Cost Center Masters

Use

In this document, you create a cost center. You can determine if you need to create a cost center group. You then maintain the assessment cycle.

SAP Best Practices delivers sample CO master data which are created with the installation of the SAP Best Practices Package. A complete overview can be found in the document CO Overview Master Data which is assigned to the layer 0 installation building blocks.

Procedure

For this activity, run the Create Cost Center and Cost Center Group (155.03) scenario document in its entirety.

4.2 SOP through Long-Term Planning/Capacity

Use

After the sales plan is verified, the sales quantities are transferred to Sales and Operation Planning (SOP). In SOP, a long-term plan is created to match the manufacture of parts to be sold with the sales quantities. Materials requirements planning (MRP) is run in a simulated mode to review planned requirements for all the materials and resources required to manufacture the materials to satisfy the demand. Simulation of MRP also allows review of capacities of the plants. Capacity leveling can then be carried out to smooth out the bottlenecks in the capacities.

Once the simulated version of the manufacturing plan is accepted, the planned requirements are transferred to active version in demand management.

Procedure

For this activity, run the SOP through Long Term Planning Transfer to LIS/PIS/Capacity (173) scenario document in its entirety.

4.3 Transfer Planned Activity Requirements for Production

Use

In this activity, you transfer planned activity requirements for production.

You can transfer the activity requirements data calculated in long-term planning to Cost Center Accounting as planned figures. The system uses this information to determine the production costs for each cost center and for costing products.


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The activity quantities are calculated using the activity types and their formulas in the work centers. The activity requirement quantities calculated in long-term planning are taken into account when comparing the activity requirements with the work center's available activity. The activity prices of the activity types are calculated using the available activity and planned costs. The activity prices are included in product costing.

The activity requirements of long-term planning are not automatically updated in cost center accounting. Instead, they are transferred to cost center accounting using a separate function in long-term planning after you have adjusted the planning results.

Procedure



SAP ECC menu Accounting Controlling Cost Center Accounting Planning

Planning Aids Transfers Scheduled activity SOP/LTP

Transaction code KSPP




Business role menu Overhead Cost Controlling Planning Planning: Cost Centers

Transfer Planned Activity Requirements for Production

2. On the Transfer Planned Activity Requirements for Production screen, make the following entries:

Field name Description User action and values Comment

Plant <enter the plant for

respective company

code>

Version 002 SOP planning version

From period 1

To period 12

Fiscal year <Budget year>

Execute period adjustment

x

Cost center/ activity type

x

3. Choose Transfer Control.

This screen can be accessed directly using transaction OMIK.

4. Select the line item containing the previous year and choose Copy if the current budget year is not displayed and enter the following:


CO area Controlling area 1000


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Version 2 CO planning version

Fiscal year <Overwrite with

current budget year>

Long-Term Planning x

Planning scenario 002 SOP planning version

5. Choose Enter and then Save.

6. Go Back to the selection screen. Confirm the message that appears. The Test Run can be selected as needed. Then, choose Execute.

7. Repeat the above steps for other plants.

Result

The activity requirements are transferred from LTP to cost center accounting. The scheduled activity is planned on the manufacturing cost centers.

To generate a report, use transaction code KSBL.


SAP ECC menu Accounting Controlling Cost Center Accounting Information

System Planning Reports Cost centers: Planning Overview

Transaction code KSBL




Business role menu Overhead Cost Controlling Reporting Cost Centers Cost Centers: Planning overview

4.4 Plan Activity Based on Capacity

Use

In this activity, you plan activity based on capacity.

Prerequisite

Planner profile SAP_ALL is set with transaction kp04.



Set Planner Profile

Transaction code KP04




Business role menu Overhead Cost Controlling Planning Planning Preparation Set Planner Profile


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Procedure




Activity/Output prices Change






Change Activity Type/Price Planning

2. On the Change Activity Type/Price Planning - Initial Screen, make the following entries:



From period 1

To period 12


Cost Center Group 130 Manufacturing cost center group

Activity Type Group YBMF_P00_AT Activity types used for manufacturing

Form-based x

3. Choose Overview.

4. Enter the number of hours calculated based on capacity in Capacity column.

5. The Plan Activity column must be zero or a contingency amount to adjust scheduled quantity.

If a third quantity is needed in the business, it can be entered in the Plan Activity column, but then Plan Reconciliation step should not be executed as this will add scheduled quantity to the plan quantity.

6. Equivalent number must be 1 for activity 1 and blank for the others.

7. Repeat for all cost centers using the next combination.

8. Choose Save.

Result

The capacity is updated on cost center.

To generate a report, use transaction code S_ALR_87013647.


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System Reports for Cost Center Accounting More Reports Activity Types: Scheduled/Plan

Transaction code S_ALR_87013647




Business role menu Overhead Cost Controlling Reporting Activity Types Scheduled / Plan (Activity Types)

4.5 Plan Reconciliation

Use

In this activity, you execute the plan reconciliation.

Procedure




Planning Aids Plan Reconciliation

Transaction code KPSI





Execute Plan Reconciliation

2. On the Execute Plan Reconciliation - Initial Screen, make the following entries:


Cost Center group 130 Manufacturing cost center group


From period 1

To period 12


Detail lists Select

Test Run Select as needed

3. Choose Execute.

Result


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The scheduled activity is added to plan activity and updated as plan on the cost center.

The plan activity from the cost center (usually 0) is shown as well as the new plan activity, which adds the scheduled and the planned activity.

To generate a report, use transaction code KSBL.









4.6 Changing to Calculate Rates Based on Capacity (Optional)

Use

In the normal flow of business, activity rates are calculated based on plan activity. If a business wants to calculate activity rates based on capacity, perform this step.

Prerequisites

To execute this activity go to transaction KL02 Basic Data tab Allocation Default values, and enter 2 in the Price indicator – Plan price, automatically based on activity field.

This is an optional step.


SAP ECC menu Accounting Controlling Cost Center Accounting Master

Data Activity Type Individual Processing Change

Transaction code KL02




Business role menu Overhead Cost Controlling Master Data Activity Types select corresponding line and press Change.

Procedure




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Activity/Output prices Change






Change Activity Type/Price Planning

2. On the Change Activity Type/Price Planning - Initial Screen, make the following entries:



From period 1

To period 12


Cost Center Group 130 Manufacturing cost center group

Activity Type Group YBMF_P00_AT

Form-based x

3. Choose Overview.

4. Change the planned price indicator column to 2 to calculate the rates based in the Capacity column.

The choice of quantity used for the rate calculation is a business decision. If the SOP/LTP accuracy is high then this is the logical choice. If SOP is a new concept and master data is inaccurate then capacity is a better choice.

5. Choose Save.

Result

The plan is updated with the correct plan price indicator (to get rate calculated based on capacity).

4.7 Accepting Scheduled Labor and Overhead Activity for Manufacturing Cost Centers

Use

If you want to use scheduled activity for rate calculation, you need to manually accept scheduled labor and overhead activity for manufacturing cost centers.

4.8 Plan Direct Labor Expenses


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Use

In this activity, you plan direct labor expenses.

Prerequisite

Planner profile YBALL_02 is set with transaction kp04.



Set Planner Profile






Procedure




Cost and Activity Inputs Change






Change Cost Element/Activity Input Planning

2. On the Change Cost Element/Activity Input Planning - Initial Screen, make the following entries:



From period 1

To period 12


Cost center grp 130 Manufacturing cost center group

Activity type grp YBMF_P00_AT

Cost element grp Direct labor cost

elements For example cost element group


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1100_CE

3. To display all relevant cost elements, select Form Based and choose Overview.

4. Input plan fixed and variable costs by cost element. Use the Next combination arrows to plan the next cost center. And go down a page to find the setup activity.

Fixed and variable costs are always different in each business. The split between fixed and variable here enables a separate rate calculation for fixed and variable which in turn results in target reporting capabilities. A cost element can be planned as variable to enable target reporting and can be displayed on a report under fixed costs.

5. Choose Save.

Result

Direct labor expenses are planned.

The values for budget by cost element are updated on manufacturing cost centers.

To generate a report, use transaction code KSBL:









4.9 Plan Direct Overhead Expenses

Use

In this activity, you plan direct overhead expenses.

Prerequisite

Planner profile YBALL_02 is set with transaction kp04.



Set Planner Profile





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Procedure














From period 1

To period 12


Cost center grp 130 Manufacturing cost center group

Activity type grp YBMF_P00_AT

Cost element grp Direct overhead

expenses For example cost element group 1700_CE


4. Input plan fixed and variable costs by cost element. Use the Next combination arrows to plan the next cost center. And go down a page to find the setup activity.

5. Choose Save.

6. Repeat steps 1-5 for all other overhead cost element groups to be planned as direct overhead costs.

Result

The values for budget by cost element are updated on manufacturing cost centers.

This type of planning links cost elements specifically to an activity.


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4.10 Downloading Cost Elements to Excel for Income/Expense Budget

Use

In this activity, you download cost elements to excel for operations cost budget.

Prerequisites

This customizing setting only needs to be added once.

The following steps are only required the first time when starting the planning process. If a file description is already assigned the steps should not repeated again.

The file description is needed for the excel upload of planning costs on cost centers. The file description needs to be saved separately so that it can be accessed in uploading the file. This activity has to be executed before the first time of planning. Check in the following steps the correct assignments:

The planner profile YBALL_01 is set (transaction KP04).



Set Planner Profile







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1. Access the activity using one of the following navigation options:


SAP ECC menu Controlling Cost Center Accounting Planning Manual

Planning Define User-Defined Planner Profiles

Transaction code KP34 (S_ALR_87005852)




Business role menu Overhead Cost Controlling Planning Planning Preparation CO Maintain Planner Profile

2. On the Change View Planner Profiles: Overview screen, select YBALL_01.

3. Choose General Controlling.

4. On the Change View General Controlling: Overview screen, select the first line Cost ctrs: Cost element/activity inputs.

5. Choose Layouts for controlling.

6. On the Change View Layouts for Controlling: Overview screen, select Y1-101.

7. Choose Default Parameters.

8. On the Cost Element/Activity Input Planning: Init.Screen Pre-Parameteriz. screen, make the following entries:

Field name Description User actions and values Comment

Controlling Area 1000


From Period 1

To Period 12

Fiscal Year <Budget year>

Cost center group <Cost center group> For example 110

Activity Type No input for overhead costs

Cost element group <Primary cost

element group> for example 100_CE

9. Choose Save.

10. On the Change View Layouts for Controlling: Overview screen, choose Save.

11. On the Change View Layouts for Controlling: Overview screen, select Y1-101 again.

12. Choose Default Parameters.

13. Choose Overview Screen (F5).

14. Confirm macro warning if this message appears.


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15. Confirm message File description 01_1P1_YBALL_01_001Y1-101 has been generated.

16. Choose Save File Description.

17. Choose Save Excel Layout.

18. Choose Save.

19. Quit the transaction.

On the Change View Layouts for Controlling: Overview screen, you may be asked – depending on the systems settings – to create a customizing order.

Procedure











2. Select planning layout Y1-101.



Layout Y1-101


From period 1

To period 12


Cost center group <Cost center group> For example 130

Activity Type Leave blank Do not enter * in this field (no entries)

Cost element grp For example, 100_CE All primary costs


5. Confirm macro warning with activate macros if this message appears.

6. Delete last line Cost Element Total. If necessary remove Excel worksheet protection for deleting these entries.


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7. From the menu, choose File Save Copy As and save for each cost center. The file name is in the form budget_cc_yyyy_xx...xx where cc = version, xx...xx = cost center, and yyyy = budget year.

8. Save the file as *.csv or *.txt.

Remember to use (next combination) arrows to page and save a file for each cost center. Do not use Delete, Paste, and Sort functions in Excel. Add new records at the bottom.

It depends on scope that cost centers should be planned.

Result

The file with the cost elements to be planned is downloaded correctly and is e-mailed to the cost center manager.

4.11 Updating Budget Values for Operation Cost Budget

The cost center manager updates the Excel spreadsheet and e-mails to the Enterprise Controller.

Do not use Delete, Paste, and Sort functions in Excel. Add new records at the

bottom. Use Tools Protection Unprotect Sheet to allow changes and delete totals line before saving as a TAB delimited txt file with the same name. Use Tools

Protection Protect Sheet to prevent errors.

4.12 Uploading Cost Elements for Income and Expense Excluding Operations

Use

In this activity, you upload cost elements for income and expense excluding operations.

Procedure












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2. Choose Extras Excel Planning Upload.

3. Import a single file or a directory.

4. Select the path of the file on your PC with the file description 01_1P1_YBALL_01_001Y1-101, and decimal notation 1,234,567.89.

5. Choose Execute. Remember to check the logs.

Result

The values for budget by cost element are on operations cost centers.

New planner profile needs a new file description.










4.13 Plan Statistical Key Figures

Use

You use the statistical key figures to calculate key figures for reporting, and the figures are also used as the basis for periodic allocation.

Procedure




Statistical Key Figures Change





Business role menu Overhead Cost Controlling Planning Planning: Cost Centers Change Stat. Key Figure Plan Data


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2. Enter the necessary data on the Change Statistical Key Figure Planning screen.


Version 2 Plan/actual version

Periods 1 to 12 Jan. to Dec.

Year <Budget year> Plan year

Cost center <Any>

Statistical key figure <Any>

Entry Form-based

3. Choose Overview Screen (F5).

4. On the Change Statistical Key Figure Planning: Overview screen, make the following entries:


Current plan value Provide plan value For example 100

5. Choose Post.

Result

The cost centers for which you have planned one or more statistical key figures can now serve as receivers in the allocation cycles (periodic reposting, plan distribution and plan assessment).

4.14 Plan Assessment

4.14.1 Checking Plan Assessment: Buildings and Maintenance Costs

Use

During the automatic secondary cost planning, you can plan secondary costs both on a value basis (as a plan assessment) and on a quantity basis (with indirect activity allocation).

Assessment is used to allocate primary and secondary costs. The original cost elements are combined and allocated to the receiver cost center in an assessment cost element.

The assessment is used to further allocate the costs of buildings and maintenance. In this process step the assessments can be checked.

Prerequisite

Assessments of buildings and maintenance costs are executed for all cost centers and are not specific for manufacturing cost centers. Therefore they are already included in another scenario which refers to the general part of cost center planning (see 175: General Cost Center Planning). Usually the assessments are done in one step so no further specific activities are required here.

This process step is added so that the assessment to manufacturing cost centers can be checked. You can find further details in General Cost Center Planning (175) (Step: Plan Assessment) scenario.

Procedure


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Allocations Assessment

Transaction code KSUB




Business role menu Overhead Cost Controlling Planning Planning: Cost Centers Execute Plan Assessment Cycle for Cost Centers

2. From the menu, choose GoTo Processed to Date.

3. On the Plan Assessment Overview: Initial Screen, enter the required data:


Periods <Month number> Month number (Jan =1, Dec=12)


Choose Execute

4. Select the subsequent lines by double-clicking for the report analysis.

Result

Maintenance and building costs are settled to the cost centers.

To display the existing cycles, choose Extras Cycle Display.

4.14.2 Executing Plan Assessment: Quality Costs

Use

Quality costs are collected on cost center 1401. They are to be assessed to the manufacturing cost centers. The later planned activity type prices include the quality costs.

Prerequisites

A plan assessment cycle must be defined in customizing.

The assessment is based on fixed percentages. The same transaction ksub can be used to adopt the percentages to customer specific requirements.

The following cycle has been defined for the plan assessment:

Cycle Segment Sender CC Receiver Receiver Tracing Factor

Y_P010

Assessment Quality cost (plan)

100

Quality costs for operations

Quality Management Cost center

group 130

Procedure


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Allocations Assessment

Transaction code KSUB





Execute Plan Assessment Cycle for Cost Centers

2. On the Execute Plan Assessment screen, enter the required data:


Periods <Month number> Month number (Jan =1, Dec=12)

Only fill out the first field. Do not enter a value in the second field.

Year <Budget year>

Test run x Until the run is error-free

Detailed lists x

Cycle Y_P010 Assessment Quality cost (plan)

Choose Execute

Result

The quality costs are settled to the manufacturing cost centers.

To display the existing cycles, choose Extras Cycle Display.

4.15 Checking Plan Accrual Calculation

Use

You should start the plan accrual once you have completed manual primary cost planning. During this process, overhead cost percentages are used to plan accrued costs for the corresponding cost centers.

You define an overhead percentage rate for accruing the additional employee benefit costs. Reference cost elements are the costs for wages and salaries. The accrued costs are credited to an order with order type Accrual Order.

In this process step, the accrued costs can be checked.

Prerequisites


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The accrual calculation of planned costs is executed for all cost centers and not specific for manufacturing cost centers. Therefore they are already included in another scenario which refers to the general part of cost center planning. Usually the accrual calculation is done in one step so no further specific activities are required here.

This process step is added so that the accrued costs can be checked. You can find further details in General Cost Center Planning (175) (Step: Plan Accrual Calculation) scenario.

Procedure




Planning Aids Accrual Calculation

Transaction code KSA8




Business role menu Overhead Cost Controlling Planning Planning: Cost Centers Plan Accrual for Cost Centers

2. Enter the required data on the Plan Accrual Calculation for Cost Centers screen.


Cost center group

<Manufacturing cost

center group> For example 130 (operations)

Version 2 Plan/actual version

Periods 1 to 12 Jan. to Dec.

Year <Budget year>

Test run X Until the run is error-free

Detailed lists X

Choose Execute

3. Select Next List Level.

4. Use report Plan Accrual Calculation for Cost Centers for further analysis.

Result

Overhead rates cannot be transported and have to be maintained manually in customizing

You can use Extras Settings Percentage Method to display the allocation structure.


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4.16 Confirming Allocation of Operations Cost Budget

Use

In this activity, you confirm allocation of operations cost budget.

Procedure




System Plan Actual Comparisons Cost centers: Actual/Plan/Variance





Business role menu Overhead Cost Controlling Reporting Cost Centers Cost Centers: Actual/Plan/Variance

2. On the Cost Centers – Actual/Plan/Variance - Selection screen, make the following entries:


Controlling area

1000


From period 1

To period 12

Plan Version 2

Cost center grp Cost center group 130 Manufacturing cost centers

Cost elem. Grp Cost element group

* For example 10_CE (costs Best Practices)

3. Choose Execute. Confirm the total cost center plan to see that the upload worked and the costs look good.

Result

The operating budget in the system is confirmed to be valid.

Option A: If the data is correct, proceed to the next step.

Option B: If the data is incorrect, go back to preceding planning steps.

4.17 Activity Price Calculation


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Use

In this activity, you calculate the activity price.

Procedure




Allocations Price Calculation

Transaction code KSPI




Business role menu Overhead Cost Controlling Planning Planning: Cost Centers Execute Plan Price Calculation

2. On the Execute Plan Price Calculation – Initial Screen, make the following entries:


Cost Center Group

130 Manufacturing cost center group

Version 2 CO plan version

From period 1

To period 12


Test Run x

Detail Lists x

3. Choose Execute.

Result

The activity prices are calculated.











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4.18 Confirming Accurate Calculation of Price

Use

In this activity, you confirm the accurate calculation of price.

Procedure




System Plan Actual Comparisons Cost centers: Actual/Plan/Variance





Business role menu Overhead Cost Controlling Reporting Cost Centers Cost Centers: Actual/Plan/Variance

2. On the Cost Centers – Actual/Plan/Variance - Selection screen, make the following entries:


Controlling area

1000


From period 1

To period 12

Plan Version 2

Cost center grp Cost center group 130 Manufacturing cost centers

Cost elem. Grp Cost element group

* for example 10_CE (costs Best Practices)

3. Choose Execute. From the left side navigation section, choose the cost center you want to analyze.

4. Double-click the activity type you want to analyze in the selected cost center and select the report Cost centers: Planning overview.

5. The planning overview report shows the planned costs and quantities for the cost center/activity. To get the planned price, choose Display Activity Price.

6. Redo the check for all cost center/activity type combinations.

Result

The activity prices are checked and agreed on.


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Option A: If the rates are correct, proceed to the next step.

Option B: If the data is incorrect, go back to preceding planning steps.

4.19 Standard Cost Calculation

Use

Annually, the standard costs for products are updated as part of the annual operations planning (AOP). This is necessary to reflect the changes in the prices of purchased parts, change in labor and overhead costs and change in bills of materials and operations needed to manufacture the semi-finished and finished goods.

Once the planned prices for purchased parts are updated and planned activity prices are calculated, a costing run is done to calculate the standard planned prices of the materials. The calculated standards are reviewed for accuracy and the responsible persons are informed of any corrections that are required to be made. Once the calculations are acceptable, the prices are updated as future planned costs in the respective material master records.

Once the current year is closed, the marked cost estimates are released. This results in a revaluation of existing inventory to the new standard prices.

Procedure

For this activity, run the Standard Cost Calculation (178) scenario document in its entirety, using the master data from this scenario document.

4.20 Final Planning Steps

Use

Manufacturing cost center planning is one part of cost center planning. After this scenario the cost center planning has to be finalized. Planning data are to be transferred to CO-PA (if CO-PA is activated), the planning version is to be transferred to the actual version and versions are to be locked.

Procedure

For this activity, run the General Cost Center Planning (175) scenario document, section Final Planning Steps.

5 Appendix Reversal of Process Steps All steps cannot be reversed

original Step

original Step Name

original Transaction Code

Reversal Step Name

Reversal Transaction Code

Reversal: Remarks

4.3 Transfer planned KSPP Scheduled KSPP Choose


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activity requirements for production

activity SOP/LTP

Transfer Reset

General Delete planned costs

KP90

General Delete planned data

KP91

Manufacturing Cost Center Planning...

Documents

Transcript of Manufacturing Cost Center Planning...