PRODUCT COSTING - SAPHelp SAP lab :Product costing made easy BPB publication –Not covered product...

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

How standard cost will be arrived at :

Sales budget for next month Production budgetMaterial 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

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:

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

Cost element :1200001

Enter

Name and description :Activity allocation

Cost element category :select 43 Interval activity allocation

Save

Creation of activity type –Machine hour:

Path :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

Reference cost center :Dept A

Controlling area :BIL

Enter

Change the name to Dept G

Change the description to cost center :Dept G

Person responsible :MrG

Other things are common

Select save button

Cost center :Dept H

Reference cost center :Dept A


Enter

Change the name to Dept H

Change the description to cost center:Dept H

Change person responsible to Mr.H

Cost center category :select 9( Allocation cost center)

Save

Create of cost center group (Tr code is KSH1)

Give the cost center group :BILPROD

Enter

Description :BIL Production cost center group

Select insert cost center button

Select cost center Dept G

Save

Define overhead keys:

Path :SPRO-Controlling –Product cost controlling –Product cost planning basic settings for material costing - overheads-Define overhead keys

Select new entries

Overhead key :BIL1

Description :BIL Overhead key

Save

Press enter to save in your request

Define overhead groupsSame path

Select new entries button

Valuation area :BILP

Overhead group :BIL1

Overhead key :BIL1

Name of overhead group :BIL over head group

Save


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

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


Ignore the warning message press enter


Valid from To Controlling area Overhead type Overhead key Percentage

01.04.2008 31.03.2009 BIL Select 2 BIL1 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

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

1. 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

2. 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

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 :D2

Description :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)

Select position button

Cost variant :Select PPC1 standard cost estimate (Materials)

Enter

Select PPC1

Select details button

Select valuation variant button

Select create beside valuation variant /plant


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



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 componentNote: 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 days

2 days grace daysProduction 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

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 from based radio button

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

Select next page or page down button

Cost center :Dept G

Activity type :BIL

Select form based radio button

Select overview screen button

Plant activity :72000

Save

calculation of Machine hour rate

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

Select cost center group radio 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

Select organization levels button

Plant :BILP

Storage location :Hyderabad

Enter

Give the description :Raw material 2

Base unit of measurement :KG

Material group :BILC

Division :BS

Select purchasing tab

Purchasing group :BIL

Select 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

Press select view button

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

accounting , Costing 1

Select organizational levels button /enter

Enter

Plant :BILP

Storage location :Hyderabad

Enter

Description :Finished product 1

Base unit measurement :KG

Division :BS

Select MRP1 tab

MRP type :select PD (MRP)

MRP controller :A

Lot size :select EX lot for –lot order quantity

Select MRP 2 tab

In –house production :0 days

Schedule margin key :select BIL

Select MPR 3 tab


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

Give the component :BILRM1

Quantity :1

Item :20

Give the plant :BILRM2

Quantity :1

Save

Creation of work center

Path :Up to mater data the path is same –Work centers –then work centers-create (CR01)

Plant :BILP

Work center :Dept G

Work center category :select 0001 Machine

Select basic data button

Give the description :Dept G

Person responsible :Mr.C

Usage :009

Under standard value maintenance

Standard value key :SAP1 Normal production

Select costing tab

Start date :01.04.2008

Cost center :Dept G

For machine activity :Give activity type BIL

Activity unit :H (Hour)

Formula key :SAP002 (Production machine time)

Save

Creation of routings

Path :Up to master data the path is same –Routings –Routings –Standard routings –Create (Tr code is CA01)

Give the material :BILFG1

Plant :BILP

Enter

Usage :select 1 production

Status ;select 4 (released (general))

Select operation button

For operation 10 give the work center :Dept G

Control key :select PP01 in hour production

Double click on operation :10

Machine standard value :5

Unit :H (Hour)

Save

Note: Routing is process flow as a department wise

CO –END 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 :BILPEnter

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

Select company code :BIL

Costing variant :select PPC1

(Standard cost estimate for materials)

Save

Select back arrow

Deselect test run check box

Execute

Select material :BILFG1

Select costing to tab

Select back arrow two times

Select release button

Execute

Select material :BILFG1

Select costing to tab

ACTUAL COSTING

CO consultant Job

Check costing variants for Manufacturing orders (PP)

Path :SPRO-Controlling –Product cost controlling -Cost object controlling –product cost by order –Manufacturing orders –Check costing variants for manufacturing orders(PP) (Tr.code is 0PL1)

Select costing variant PPP1 Production order plan



Select 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

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 1100000SavePress enter to save in your request

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

Select copy as button

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



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


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


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

Select with template button

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

Company code :BIL

Enter

Change short text to and GL A/c long text to work in process

Other fields are common

Save

GL A/c No.300201

Company code :BIL


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)

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

Press select views button

Select costing 1 view

Enter

Give the plant :BILP

Enter

Variance key :select BIL1

Save

Creation of cost element group (KAH1)

Give the cost element group :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


Allocation structure :B2

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 on source folder



Double click settlement cost elements folder


Receiver category :select G/L, GL account

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

Select to be settled in full radio button

Allocation structure :B2

Default object type :select G/L

Select % settlement check box

Select equivalence number check box

Select amount settlement check box

Under valid receivers for GL account :Select settlement required

Document type :SA

Maximum no.of distribution rules :999

Residence time :12 months

Save


Define CO.No.range interval for the business transactions

RKL -Actual Activity Allocation

KZPI- Actual overhead (Periodic)

User transactions code :KANK

Give the controlling area :BIL

Select maintain groups button

Double click on RKL

Double click on KZPI

Select Co. No. range interval for BIL check box

From the menu select –Edit –Assign element group

Save


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)

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

Select create /bank /interest tab

Change the field status group G049 (manufacturing cost accounts)

Save

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

Company code :BIL

Select edit cost element button

Valid from :01.04.2008 to 31.12.9999

Enter

Cost element category :select 22 external settlement

Save

Assignment of 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


Select back arrow

Double click on GBB offsetting entry for inventory posting

Valuation modifier :X

General modification :BSA opening stock taking

Valuation class :BIL1

Account no. :100599 stock taking account

Valuation modifier :X

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


Change the plant to BILP

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



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

Plant :BILP

storage location :HYD

Enter

Give the material no. :BILRM2

Quantity :100 kgs

Select save button or Ctrl+S

From the menu select other goods receipts display

Enter

Select accounting documents button

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 BILRM1BSX 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)

Give the order no. :60003225

Period :9

Fiscal year :2008

Select text check box

Select dialog display check box

Execute

Select back arrow

Deselect text run check box

Execute

Work in process calculation

Path :up to single functions the path is same –Work in process –Individual processing –Calculate (Tr code is KKAX)

Give the over no. :60003225

WIP period :9

Fiscal year :2008

Result analysis version :select 0

Select test run check box

Execute

Select back arrow


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


Select check transaction date check box

Execute

Select detail lists button


Select accounting document no.

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

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

Storage location :HYD

Enter


Select save button or Ctrl+S

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

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 execute button

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


Select check transaction date check box

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

PRODUCT COSTING - SAPHelp SAP lab :Product costing made easy BPB publication –Not covered product...

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Transcript of PRODUCT COSTING - SAPHelp SAP lab :Product costing made easy BPB publication –Not covered product...