SAP CO Notes

1

SAP CO NOTES

INDEX

PARTICULARS Page No.

CO Areas and Basic Settings for Controlling 3

Cost Center Accounting 11

Online Reconciliation Leger 23

1. Creation of GL Masters

2. CO Customization

3. FI Customization

25

27

28

Cross Company Code Postings 31

Maintain Overhead structure 34

Statically Key Figures (SKF) 38

Assessment 42

Internal Orders 46

Budgeting and Availability Control 60

Profit Center Accounting 64

Integration 76

1. Transaction Key /Process Key

2. Valuation Class

3. 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 SD

8. SD Steps

9.

77

78

89

90

97

100

115

Co-Profitability Analysis (CO-PA)

1. Data flow in CO-PA

2. Customization

3. SD End user area

120

120

122

126

Report Painter 129

Product Costing 132

1. Co Consultant Job (Activity based costing)

2. PP Consultant job

3. CO End User area

4. MM End User area

5. PP End user area

134

144

146

147

149

Actual Costing 153

1. CO Consultant job

2. PP consultant area

3. Asset Accounting area

153

167

174

New General Ledgers (ECC 6 New Features ) 179

2

1. Customization

2. Document Splitting

180

188

Central Excise and Sales Tax

1. Central Excise Customization (Purchase)

2. Central Excise customization (Sales)

3. SD End user area

192

195

211

217

Financial Statement Version 228

Asset Accounting Area 237

Project Report 238

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 elements

1. primary cost elements

2. 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 inventories

3

Eg: 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

(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.

4

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 2

nd 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 :BIL

Name :controlling area forBIL

Company 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 : BILHIER

Save

Select yes button for the message system to create as a standard hierarchy

Select create request button

Short description : Co customization for BIL

Press enter

Press enter once again to save in the request.

COST CENTER STANDARD HIERARCHY:

Cost center standard hierarchy : BILHIER

|

Cost centers Dept. A Dept.B Dept.C

5

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 Co

And no.ranges

SA COIN

| |

01 |

6

|

1-100000 1-00000

Manual posting F-02 Automatic posting

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

Option 1

Posting in FI

Wages A/c Dr 100000 Dept.A

Wages A/c Dr 200000 Dept.B

Wages 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 100000

Dept.common Dept B 200000

Dept. Common Dept C 300000

To Bank 600000 Post Co line item

2 Documents

1 FI Document No FI document

1 CO Document –COIN 1 CO Document – RKU3

Transfer document wise/line item wise

Total documents generated

1. FI Document

2. CO Documents

Wages A/c Dr 600000 Dept Common Dept A 300000

Dept Common Dept B 200000

Dept Common Dept C 300000

Rent A/c Dr 50000 Dept A

7

To 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

Dept A Dept X

30/04/2008 400100 Salaries 200000

30/05/2008 400100 Salaries 250000

30/06/2008 400100 Salaries 275000

----------

400100 total 725000 400100 Salaries 200000

30/04/2008 400101 wages 100000

03/05/2008 400101 wages 150000

30/06/2008 400101 wages 125000

----------

Total 400101 375000 400101 wages 125000

30/04/2008 400300 Rent 500000

31/05/2008 400300 Rent 50000

30/06/2008 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 : BIL

8

Select maintain groups button

From the menu select group – Insert

Text: Co doc no. range interval for BIL

From number : 1

To number :100000

Enter

Double click on business transactions COIN

RKU3

RKU1

RKP1

Select Co.No.range interval for BIL check box

From the menu select Edit – Assignment element group

Save

Ignore 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 0

Revised budget version 1

Re 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

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.

9



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 elements

A)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 100000

Wages 200000

Power 5000

In 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 accounts

3. Accrual / Deferral per surcharge :This is used for month end provisions only in

CO

11. Revenues: This is used for income accounts

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.

10

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 created

3. Creation of filed status group by making cost center required entry field

4. Assign new filed status group in GL expenditure accounts

5. Creation of cost centers.

6. Creation of cost center groups.

7. Creation of cost element groups

8. To enter exchange rate for type M for INR to Euro

9. Posting of transaction in FI

10. To view cost center wise report.

11. To view CO documents

1. A) Creation of primary cost element at FI area

Use to FS00 – GL masters creation

Give the GL account number : 400100 Salaries Account

Company code : BIL

Form the menu select GL Account display

Now select edit cost element button

Valid from date :01.04.2008

To date :31.12.9999 comes automatically

Enter

Cost element category : Select 1 (Primary cost / cost reducing revenues)


11

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

Valid from :01.04.2008 to 31.12.9999

Enter

Cost 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 : BIL

Enter

Account from :400301

Account to :499999

Cost element category select 1

Save


Create batch input session (OKB3)

Same path as above


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

12

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 : BIL

Enter

Creation of field status group by making cost center required entry field:

(Tr.Code is OBC4)

Select field status variant: BIL

Double 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 G001

For 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


13

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

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

14


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 : BILHIER

Cost centers Dept A Dept B Dept C Dept X Dept Y Dept Z

Category Production Prod Service Production Production Service

Business 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.

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

15

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 Rent

400301 Telephone exp

400302 Petrol exp In the report center Dept A Dept C

Or

Cost center GRP

Cost element

Or

Cost 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

16

Save

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


Exchange rate type : M (Average rate)


From currency : INR

To : EUR

Direct quotation :0.02



Posting of transaction in FI Transaction code:F-02

Give the document date : Today’s date

Type :SA

Company code :BIL

Posting key :40

Account :400100 salaries account

Enter

Give the amount :500000


Text :Salaries posting

One more expenditure

Post key :40

Account :400300 Rent account

Enter

Amount :100000


Text : Rent posting

Posting key : 50

Account :200105 SBI current account

Enter

Amount :*

Business area :BILH

Text : Expenditure posting

From the menu select Document � Simulate


17

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

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 100000

Execute

Select folder button for document no.1

Report co line items:

Business transaction RKU3

FI doc.13

001 400100 Salaries 500000 Dept A 150000 Dept B

50000 Dept C

18

Report co line item

002 400300 Rent 100000 Dept A

003 200105 SBI 600000

Report co line item

Transfer document wise /line item wise , transfer line item wise


Only document will be generated

Path: Accounting – Controlling-Cost center accounting –Actual postings-Report line

items-Enter (Transaction code is KB61)

Select document no. :13

Company code :BIL

Fiscal year :2008

Execute

Double click on line item no.1

Amount under new account assignment 150000

Cost center :Dept B

Select new item button

Select next button

Amount under new account assignment 50000

Cost center : Dept C

Save

Go and see the cost center report KSB1

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.


Only CO document will be generated

Transfer cost element wise (GL account wise)

19

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 CO

A) 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 button

Select period :01

Select lock period button

Save

20

Set controlling area :(OKKS):

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

Give the controlling area :BIL

Enter

Real time integration of controlling with FI on line reconciliation ledger

This 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 Bsed

If 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

21

Distribution key 1

To plan for Dept B –Select next combination button

To go back to previous dept –select previous combination button

Save

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)


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

22

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

|

------------------------------------------------------------------------

| |

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 records

In BIL Books

BSL Dr 20000

To Salaries a/c 20000

In BSL books

Salaries account Dr 20000

23

To 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 code

From 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



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


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

24

Assign company code to company

Path :SPRO-Enterprise structure-Assignment –Financial accounting-Assign

company code to company


Give the company code : BIL

Enter

For the company code :BSL assign BIL(group name)



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 Books

1) 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 accounts

BIL chart of accounts BIL

BSL chat of accounts BIL

When 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.

Creation of GL masters FS00

Give the GL account no. :400150

25

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



26

Company BIL

Enter

Select type / Description tab

Change short text +GL long text to Bila Industries limited

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 BIL

Company code2 BSL

Enter

Posted in BIL

cleared against BSL

Debit posting key :40

Account debit :200160 ( Birla Steel Limited)

Credit posting key :50

Account credit :200160

Posted in BSL

Cleared against BIL

Debit posting key :40

Account debit :200161 Bilra Industries Limited

Credit posting key :50

Account credit :200161

Save


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

27

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


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

28

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


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

29



Repost costs (F-02)

Cost center old :Dept A

Cost element :400100 Salaries

Amount :20000

Cost center new Dept X

Save

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.

30

CROSS COMPANY CODE POSTINGS

Company code :BIL BSL

Outstanding expenses of BSL paid by BIL

BSL Dr 25000 Outstanding 25000

To Bank 25000 To BIL 25000

Paying company code : BIL

Credit Bank :BIL 25000

Debit outstanding exp :BSL 25000

Use the Transaction code :F-02

Give the document date :Today’s date

Type :SA

Company code :BIL

Posting key :50

Account no. :200105 SBI CA

Enter

Amount :25000

Business area :BILH

Text :outstanding expense payment on behalf of BSL

Posting key :40

Account no :100500 out standing exp.

New company code :BSL

Enter

Amount :*

Business area :BILH

Text :+

From the menu select document � Simulate

Double click third line item

Business area :BILH

Text :+

Select next item button

Business area :BILH

Text :+

31

Select save button or Ctr+S

Posting by

Company code :BIL

Cross company code no. :15 08

FI posted by

Company code :BSL

Cross 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 CO

This is used for irregular expenses like Bonus

Cost element category should be 3

Accrual/ Deferral per surcharge

Define CO.No.range in interval for business

Transaction :KAZ1 – Actual cost center accrual

FI Month end provision

1. Accrual / Deferral document

A. Bonus provision for Nov

30.11.2008 Bonus A/c Dr.10000

To Out standing exp. 10000 Dept A

B. Reverse next month 1st 01.12.2008

01.12.2008 Outstanding Exp. Dr.10000

To 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 Dr10000

To Outstanding exp. 10000 Dept A

B). Bonus provision for Dec.

31.12.2008 Bonus Dr.10000

To Outstanding exp 10000 Dept A

32

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

Accrual orders Higher in March

Create overhead structure

Salaries 100000

Bonus -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 Dummy

Bonus 1000

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

31.03.2009 Bonus A/c Dr 1200000

To 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:-

33

Give the GL Account No. :400105

Company code :BIL


Give the GL account no. :400100 (salaries)

Company code :BIL

Enter

Change short and GL account long text to Bonus account

Save

Select edit cost element button (F8)

Valid from date :01.04.2008 to 31.12.9999

Enter

Cost element category :Select 3 accrual deferral per surcharge

save

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

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 :BIL1

Description :BIL overhead structure

Select save button

Row Base

10 B1

Enter

Give the name salaries

Select create button

Row O/H rate (Over head rate) Description FR To CR

20 B2 Bonus 10 10 B3

34

Enter

Give the name Bonus

Dependency :KRS1(controlling area)


Save


Keep the cursor on overhead structure BIL1

Select assignment button (F5)


Select actual accrual radio button


Valid from valid to overhead structure

1 2008 12 2008 BIL1

Save

Double 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 overhead

1 2008 12 2008 10%

Save

From 10 To 10 Crdit B3

Keep the cursor on B3

From the menu select go to credit

Company code :BIL

Business area :BILH

Valid to :12 2008

Cost element :400105

Cost center :Dept Dummy

Save

35

Define CO.no range interval for the business transaction KAZ1-Actual cost Center

accrual:(Transaction Code KANK)


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


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)

36

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

calculation select cost center radio button

give the cost center : Dept A

period :5

fiscal year :2008

deselect test run check box

select details list check box

Execute

Select next list level button


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 :31.03.2009

Type :SA

Company code :BIL

Posting key :40

Account no. :400105 bonus account

Enter


Amount :10000

Cost center :Dept dummy

Text :Bonus provision for the year 2008-09

Posting key :50

Account :100500 outstanding exp.

Enter

Amount :*

Business area :BILH

Text :+

Document – Simulate and save


Give the cost center :Dept dummy

Posting date :01.04.2008 to 31.03.2009

37

Execute

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


(service Dept) (Production departments)

Salaries 500000 No.of employee of A and B

Rent 100000 Sq.meter are of A & B

Telephone Exp25000 No.of telephone calls of A & B

Enter CO. No range interval for the business transaction.

RKS (Enter statistical key figures)

SKF category Fixed Total

Fixed Total

If we choose fixed, values If we choose total

To 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 month

Eg: Telephone calls

No.of Employees No.of Telephone calls

April 2008 100 100 Aprl 2008 1000

May 2008 | | May 1500

June | | June 2000

July | | July

Aug | | Aug

Sep | | Sep

Oct | 150 Oct

Dec | | Dec

Jan.’09 | | Jan 2009

Feb | | Feb

March | | March

38

Define co.no range interval for the business transaction RKS-Enter Statistical key

figures Transaction Code is (KANK )



Double click on RKS


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

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 closing In the month end, we allocate costs from one cost center to other cost centers

39


(Service department) (Production departments)

Salaries 500000 no.of employee of A and B

Wages 300000 No.of employee of A and B

Rent 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 B

Wages 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 postings

Secondary 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.

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 postings


C) Sender can be a cost center or interval order.

D) Define Co.No.range interval for the business truncation.

RKIB periodic reposting.

40

4. Indirect activity allocation.

A)Transfer only primary cost postings.


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.


(Service Department) (Production departments)

Salaries 500000 No.of employees of A and B

Wages 300000 No.of employees of A and B


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)

41

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



Double click on RKIU


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)

42

Give the cycle :BIL1

Start date :01.04.2008

Enter

Text : Assessment cycle

Select iterative check box.



Select iterative check box

Dept C Dept A 60% 300000 54000

Salaries 500000 Dept B 30% 150000 27000

Less :Allocation 500000 Dept Z 10% 50000 9000

--------

0

Add: Allocation 90000

Less :Allocation 90000

-------

0

Add: Allocation 1800

Dept Z

Wages 400000 Dept X 50% 225000 4500

Add: 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

43

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%

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 C

Posting date :01.10.2008 to 31.10.2008

Execute

Select cost element column

Select sub totals button

44

Dept C A B

Salaries 1500000 No.of employees

500 250

100000 50000


70 30

17500 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

45

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 account

Advertisement Different account

Discounts Different account

46

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

Orders will be of 2 types

1)Real orders 2)Statistical orders

Settlement is possible settlement not possible

We 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.66110883

To Bank 50000

The cost will be allocation to production

orders from CO

In 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 A

Order Telephone no.66611983 Statistical

To Bank 50000

Cost Center Dept A

Telephone expenses 50000 Allocation to paid order 50000

47

Cost center Dept A – Zero

In the month end we allocation costs from Dept A to production orders there by cost

center Dept A will be zero.

Order telephone no.66611983

Telephone 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

Cost center c data

Telephone Expenses 50000 Order Telephone no.6661987

Telephone expenses 50000 Allocation to production 50000

Order will be zero

In 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

48

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


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

49

Change the filed status group to G002

Save

Select edit cost element button


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

Description :Telephone order no.66611984

Company code :BIL

Business area :BILH


Select statistical order check box

Save

50

Creation order group

Up to master data the path is same �� Order group�� Create (Tr code is KOH1) Give the order group name :BILHYDTEL

Enter

Description :Hyderabad order group (GRP)for BIL

Select insert order button(Select menu bar� Edit � Order� Insert Order)

Select to orders :BIL66611983

:66611984

Save

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


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.BIL66611983

Remove the order group

51

Execute

Keep 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 :0

From 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.AP9Z1234

52

To Bank 50000

In the month end:

Cost center Dept A

Order no.AP9Z1234 Settle to Cost center Dept B

Cost center Dept C

Settlement can be percentage basis / ratio basis /Amount basis

Order No AP9A1234

Petrol expenses 50000 Allocation Dept A 25000

Dept B 15000

Dept C 10000

------- ------

50000 50000

==== ====

Order will be zero

Petrol expense Dr 50000 Cost center:Common

Order 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 common

Petrol Expenses 50000 Allocation to Dept A 25000

Dept B 15000

Dept C 10000

--------- -------

50000 50000

==== =====

Cost center will be zero

Order no.AP9Z1234

Petrol 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)

53

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)

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



Enter

Cost element category :01

Save

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

54

Give the cost element :1000001

Enter

Name 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

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

55

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 30000

Petrol expenses 50000 settle cost center Dept B 15000

Dept C 5000

Rule 2

Order 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:

Dept 1:

56

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 Edit�Assign 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)



57

Double click on KOAO actual settlement

Select co.no.range interval for BIL check box

Form the menu select Edit –Assign element group.

Save


END USER AREA:

Creation of internal order (KO01)

Give the order type :BILV

Enter

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


Type :SA

Company cod :BIL

Posting key :40

58

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 :+

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

59

BUDGETING AND AVAILABILITY CONTROL

For budgeting SAP has given availability

control

Order no.AP9Z1234

Budget amount 500000

Option 1 Option2 Option 3

Give Give warning Give

Warning To the user Error1

To the user And inform to

Budget manager

If actual amount exceeds 85% of budget 425000

Or

If the variance is above 20000 i.e actual 5200000

Or

Both Whichever activity comes first

Or

If a actual amount exceeds 70% of budget go for option1

If actual amount exceeds 85% of budget go for option 2

If 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:

Planning Budgeting

1. We can plant cost element wise in the

order

1.Budgeting will be done order wise

2. 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)

60

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 control

Same path



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 expenses

Repairs

Drivers 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



Cost element :400100 Salaries account

Save


Maintain budget manager

Same path



Order :BILV

61

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

62

Text :+

From the menu select –Document –Simulate and save


To view in box of the budget manager

Path :SAP Menu�Office –Work place (Tr code is SBWP)

Select inbox folder

We get a message accounting document no.

63

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

|

Company code FI

|

Business area FI

(Location)

|

----------------------------------------------------------------------------------------

| | | |

Steel Cement Pharma Co-profit center

Division Division Division Accounting

| |

Product wise Co profitability

Analysis

Option 1 Option 2

Hyderabad 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 centers

B) IN case revenues Automatic account assignment

C) 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

64

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 :BIL

Enter

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

Select store truncation currency check box

Save

Elimination of internal business volume

Purchase Material no. 1 Profit center steel

Order Vendor no. 1234

| Plant HYD

| Profit center Steel

| Qty 1 Kg

| Rate 100

Goods

Receipt

It should no take in steel profit center 100+100

It should take only one time

65

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)


From year :2008

Select Line items check box

Select online transfer check box

Save

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

Select online transfer check box

Select line items check box

Exchange rate type :B (bank selling rate)

Save

66


Define no. ranges for local documents

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

Dept A-Assign profit center

B) At the time of posting

Wages A/c 500000 Dept A

To Bank 500000

When there is no derivation rule –It updates dummy profit center

Transfer from dummy profit center

To Profit center steel


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


67

Year :2008

From no. :100001

To no. :200000

Enter and save

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 button

name :Cement

long text :Profit center cement

person responsible :Mr B

profit center group :BIL

select activate button

Create account groups

up to master data the path is same��Account 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

68

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

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

69

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

HYD location

|

Steel cement Pharma HYD BGL MUM

300000 | | |

HYD� Steel Steel Cement Pharma

300001 Sales cement 300000 Sales account

HYD� Cement

300002 Sales pharma HYD � Steel

HYD � Pharma BGL � Cement

Mum � Pharma

Business area : BILH

Profit center : Steel

Business area : BILB

Profit center : Cement

Save

Choose addition balance sheet and p & L accounts

Applicable for second scenario: Application for second option

70

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

Business area :BILB

profit center :Cement

Save

END USER AREA

1) Planning profit center wise for p & L items

Path :Accounting –Controlling –Profit center accounting –Planning –cost

/Revenues-Change (Tr code is 7KE1)

71

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

72

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

sign

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


73

Cost center :Dept A


Posting key :50


Enter

Amount :*

Business area :BILH

Text :+

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

74

Execute

Transfer of values from one profit center to another profit center

One cost center works for no.of profit centers we an assign only one profit center is

cost center.

In dept A Profit center steel

From profit center steel transfer to cement

Manual transfer through cycles

No.FI document will be generated

No.CO document will be generated

Only 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


Account no. :400100 Salaries

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


Account no. :400100 Salaries

Amount :500000 (without minus sign)

Save

75

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 ship

HYD Chennai Customer

Factory Port

Export sale – Terms of delivery-FOB (Free on Board) ownership will be transferred once

we kept the martial on ship.

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 2

Hyd sales Org. Hyd Sales org

| |

76

Direct sales Through agents

| |

Steel Steel

Movement types: Similar to posting keys in FI

101 Material receipt against purchase order /production order

102/122 Reversal of 101

201 Issue to cost centers

202 Reversal of 201

261 Issue to orders

262 Reversal of 261

521 Production receipt without production orders.

522 Reversal of 521

561 Opening stocks taking

562 Reversal of 561

601 Delivery (sales)

602 Reversal of 601

Difference between 201 and 261

Cost centers Dept A Dept B Dept C

Issue 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 261

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

Transaction key /process key

a) BSX Inventory postings

b) 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)

77

(viii) AUA production order differences

Eg: 400000 Raw material consumption

200121 Inventory raw material

For consumption

Raw material consumption Dr

To Inventory raw material

For GBB VBR Assign account no.400000

For BSX Assign account no.200121

Valuation class:

Valuation class determines the GL accounts to be posted automatically.

A) Raw materials Local

Imported

Inter unit purchases

Inter company purchases 4

Valuation class

B) Stores :Local 2 valuation class

C) Finished goods own manufacturing 1 valuation class

Valuation grouping code / valuation modifier /Valuation modification key:

Company codes BIL BCL BSL

Chart of accounts BIL

Plants HYD-BGL BGL-MUM HYD-MUM

Local 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 X

BGL BIL BIL X

BGL BIL BCL X

MUM BIL BCL X

HYD BIL BSL X

MUM BIL BSL X

78

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 X

B) Assign posting period variant to company codes X to BIL

X to BCL

X to BSL

c) Define posting periods for variant X

for X—1, 2008 –12,2008

Material types Price controls

Raw materials ROH V-Moving average price purchase price

Stores & spares ERSA V-Moving average price purchase price

Packing & material VERP V-Moving average price purchase price

Finishing goods FERT S-Standard price Raw materials +

Semi finished goods HALB Overheads

Purchased V-Moving average price Purchase price

Produced S-Standard price Raw material+Overheads

Trading goods HAWA V-Moving average price Purchase price

Services DIEN

Semi finished goods purchased

Dept A Dept B Dept C Dept D

15 days FG

Sales 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 completed

D processing of D

Semi finished goods produced


Issue RM 15 days time

Sales Dept –got an order for sale where the processing of A and B is

completed

Take production

After completion

Of B and sell

Trading goods: Purchase FG and sell FG without doing any processing.

Services: Plant is having operating capacity

No sales orders

Job work for others

79

We get job work changes –Material

Does 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 data

Purchase view

Sales view

MRP view

Quality

Ware house management

Accounting

Costing

MM Flow

A) Material requisition By production Dept to Stores

B) Purchases requisition By stores to purchases

C) Call for enquiries, Get quotations and do price comparisons By purchase Dept.

D) Create purchase order Vendor number, Material

Quality, Rate, Plant, Company code

Delivery terms, payment terms,

Purchase organization

E) Release It is optional

It 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.O

Inventory RM local DR 100

To GR/IR clearing RM local 100

Balance sheet current asset BSX

Balance sheet current liability WRX

80

(Qty in GR*Rate as per P.O)

G) Invoice verification-Against PO/GR

GR/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 consumption

RM Consumption Local DR 100 P & L Debit GBB VBR

To inventory RM local 100 BS C/A(Current Asset) BSX

J) Wages payment

Wages A/c DR 20 P & L Debit

To Bank 20 BS CA

K) 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 cost

INC /DEC in stocks FG DR 120 P & L Credit

GBB 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=Local

Inventory FG=Raw material consumption local +wages

GR=Goods receipt

INC/DEC STK FG=Increase /Decrease stock finished goods

P & L account

H) RM can local 100 L)Sales 150

Wages 20 J)INC/DEC STKFG 120

Net profit 30 K)INC DEC STK FG -120 0

------- -----

150 150

=== ===

81

Balance Sheet

Surplus in P & L Account 30 F) INV RM LCL 100

F) GR/IR CLG RM LCL 100 H) INV RM LCL -100

E) GR/IR CLRG RM LCL -100 0 ---------

0

a) Sundry creditors RM 100 I) Bank -20

j) INV FG 120

K)INV FG -120 0

L)Sundry debtors 150

---- --------

130 130

=== ===

Integration rules

A) In material master we specify valuation class

B) For valuation class we assign GL accounts based on the nature of transaction

C) 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 Consumption

BSX Clearing (GBB VBR)

(WRX)

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

Local CLRG RM LOCAL Consumption-

IMP

Local Raw Material

1. Purchase order Material –RM1

Vendor -1234

Qty-100 Kgs

Rate 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 WRX

Material RM1

Qty 60 kgs

Save

Material Doc no.200001

200121 –Inventory RM local DR 300

100520 GR/IR CLR RM Local 300

(Qty IN GR *Rate as per P.O)

60*5

82

Raw material consumption

Movement type 201 Debit GBB VBR Debit A/c No. 400000

Credit BSX 200121

Material RM1 3000

Qty 10 Kgs

400000 RM Consumption LCL DR 50

200121 Inventory RM Local 50

(Qty issued * Moving average rate)

Imported raw material

1. Purchase order Material -RM2

Vendor -4567

Qty-1Kg

Rate -100 PO No.2

2. Goods receipt- with reference to PO-PO No.2

Movement type:101 Debit BSX 200122

Credit WRX 100521

Martial RM2 3001

Qty 1 Kg

Save Material Doc No.200003

200122- Inventory RM IMP DR 100

100521 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 100521

Credit BSX 100122

Material RM2 3001

Qty 1 Kg

Save Material doc no.200004

100521 GR/IR CLR RM IMP DR 100

200122 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 Value

Opening stock 0 0 0 0

83

Add 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 Kgs

Rate 5 Rs

Excise 10%

CST 2%

Other change 1%

Material receipt:

We get excise invoice to claim cenvat –Final invoice many come or may not come.

Only excise invoice received

Basic price 500

Excise 50

Stores 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

wrong

Basic 500 500

Excise 50 50

CST2% 11 11

Other 1% 5.5 5.5

------- -------- ---

Bill amount 566.50 516.50 50

Purchase a/c cenvat receivable

In the month end stores person sends closing stock statement

60 kgs at Rs.5

Should be value 516.5/100*60=309

84

*Issue less stock reported by stores

If this month production is more, profitability will be more.

If this month production is less, profitability will be less.

Physical stock available -60 Kgs

Reporting to accounts only 40 kgs

40*5=200

Inventory accounting

1. Purchase order Material no.RM1

Vendor 1234

Qty 100

Rate 5

Tax 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 automatically

Inventory RM local DR 516.50

To GR/IR CLR RM Local 516.50 Qty in

GR*Rate as per PO

Store records : Material RM1

Qty :Value

Receipt :100 Kgs 516.50

Account records 200121 Inventory RM local

516.50 DR

3. Raw material consumption

Movement type 201

Material RM1

Qty 40 Kgs

Save

Accounting entry will be generated automatically RM consumption local DR

206.5 (516.5) 100*40

To Inventory RM local 206.6

Qty issued moving .AVG price

Stores records: Material RM1

Qty Value

Receipt 100 Kgs 516.50

Issue 40 Kgs 206.6

85

------ ------

60 Kgs 309.9

Accounts records 200121 Inventory RM local

516.50 DR 206.60 DR

CL stock value 309.9

Price differences are two types

1)Batch method 2)Moving average method

|

-------------------------------------------------------

| | |

Stock fully available Stock partly available Stock no available

1st method –Batch method:

RM1 PO PR 10 RS BILL for 12Rs

1.Material Receipt

Batch Qty Rate Amount Inv RM local DR 1000 BSX

1 100 10 1000 To GR/IR CLR RM LCL/100 WRX

2 50 40 2000 2. Raw Material consumption

----- ----- RM consumption local DR 100 GBB VBR

150 3000 To INV RM local 100 BSX

10 10 100

--- ----

140 2900 3. Invoice verification

180 GR/IR CLRG RM LCR DR 100 WRX

----- ----- INV RM LOCAL DR 180 BSX 90*2

140 3080 Price diff RM LCL 20 PRD 100*2

To Vendor 1200 form PO vendor no. is

taken

Break up

1 90 12 1080

2 50 40 2000

Preparation in P & L account :

Raw material consumption :

Raw material consumption +/ price difference RM

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

86

Moving average method: stock fully available

RM1 PO Price :10 Final Bill for Rs.12

Qty rate amount 1. Goods receipt

Bill qty 100 10 1000 Inv.RM local DR 1000 BSX

50 40 2000 To GR/IR CLRG RM LCL 1000

---- ------ 2. Raw material consumption

150 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=20

Next consumption rate

Value / Qty 2800/130=21.54

3rd

method moving average method: Stocks partly available

RM1 PO Price 10Rs Bill for 12Rs

1.Material receipt

Qty Rate Amount 1. Goods receipt

Bill qty 100 10 1000 INV RM local DR 1000 BSX

50 40 2000 To GR/IR CLRG RM 1000 WRX

--- -----

150 3000

130 20 2600 2. Raw material consumption

----- ------ RM comp local DR 2600 GBB VBR

87

AVBL QTY 20 400

40 TO inv RM local 2600 BSX

---- ----

20 440

3.Invoice verification

GR/IR CLR RM LCL DR 1000 WRX

INV RM Local Dr 40 BSX 20 *2

Price 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=22.00

Incase 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 Rs12

1. Material receipt

Qty Rate Amount Inv RM local DR 1000 BSX

Bill Qty 100 10 1000 To GR/IR CLRG RM LCL 1000WRX

50 40 2000 2. Raw material consumption

---- ---- ------ RM Consume local DR 3000 GBB VBR

150 3000

150 20 3000 To INV RM Local

---- ----- 3. Invoice verification

AVBL Qty 0 0 GR/IR CLRG RM LCL DR 1000 WRX

Price 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 Customer

Delivery without PGI Delivery with PGI

88

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

Delivery with PGI

Sales Billing: With reference to delivery

Customer account DR From sales order

To Sales :ERL

SD-Pricing procedure

Eg: 1 2 3 4

From R egion Andhra Andhra Andhra Andhra

To Region Andhra Tamilnadu Andhra Tamilnadu

Customer Taxable Taxable Non-taxable Non-taxable

Material Taxable Taxable Non-taxable Non-taxable

Basic price

Excise % on basic

VAT % 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 8

Application

area

Conditi

on type

Chat

of

Sales

originatio

Account

assignment

Account

assignment

Accou

nt keys

89

accoun

ts

n group for

customers

group for

materials

V-Sales &

Distribution

KOFI BIL HYD 01 03 ERL 300001 –

Sales Local

own goods

V-Sales &

Distribution

KOFI BIL HYD 02 03 ERL 300002-

Sales

exports own

goods

V-Sales &

Distribution

KOFI BIL HYD 01 01 ERF 300003

Sales local

trading

goods

V-Sales &

Distribution

KOFI BIL HYD 01 03 ERL

Sales

revenu

e

400350 –

Freight

Local own

goods

01-

Domestic

revenues

01 Traded

goods

ERF

Freight

Reven

ues

02-Foreign

revenues

02 Services ERB-

Rebate

s

/Tradi

ng

Discou

nts

03-

Afflicated

company

revenues

03

Finished

goods

ERS

Sales

Deduct

ions

Note :ERS :Sales commission

Bank 5000 From customer 5000

Reimbursement of expenses

MM CUSTOMIZATION

MM consultant job

1. Define Plants

90

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


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

Enter

91


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

92


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

Enter

For BILR for assign company code BIL

Save


Assign purchasing organization to plant:

Same path


Purchasing org :BILR

Plant :BILP

Save


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.


Material group :BILC

Material groups description :Chemicals

93


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)

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 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


94

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


Plant parameters:

Path :SPRO-Materials management –Inventories management –Physical

inventory –Plant parameters

Select plant :1000


Change the plant to BILP

Enter and save


95

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


Company code :BIL

Save


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

save

Define automatic status change

96

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.


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


97

FI consultants job:

1. Creation of GL masters FS00

A) Inventory RM local Current assets loans & advances

B) Inventory finished goods -do-

C) GR/IR clearing RM local Current liabilities & Provisions

D) RM consumption local RM Consumption

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

98

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

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

99

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

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

100


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 300200

X VAY (Delivery where

sales account is created as

revenue element

Co implemented)

BIL2 300200

X VAX Delivery where is

sales account is not created

as revenue element

CO not implemented

BIL2 300200

Save


101

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

102

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

103

Select next screen button 2 times

Order currency :INR

Select GR based invoice verification check box

Save

Creation of RM material master

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:

104

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

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

105

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

BSX

200121 Inventory RM local 7500 BILRM1 BIL1

WRX

100520 GR/IR CLRG RM local -7500 BILRM1 BIL1

Qty .Received(GR) *Rate as per PO

100*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

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

106

Amount :7500

Enter


From the menu select invoice document –Display

Select follow on document button

2001 Nagarjuna Steels Limited 7500 –From party no is taken

100520 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

400000 RM consumption LCL 2250-BILRM1 BIL1

Qty consumed * moving average price

30*75

107

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 CUSTOMIZATION

SD 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

108

save, Ignore the warning message press enter

Give the name :BIL HYD sales organization

country :IN

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:

109

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

Same path




Save


Assign division to sales organization

Same path



Division :BS

Save


Setup sales area:

Same path




110

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



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

111

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



Enter

Division for conditions :select BS

Division for customer master :select BS

Save


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

112

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


Tax country :IN for India

Sequence :1

Tax category :UTXJ Tax Jursdict code

Save

Setup partner determination:

Partner functions

Customer No.

SP Sold to Party 1 1 Not modifiable

113

SH Ship to party 1 2 Modifiable

BP Bill to party 1 2. Modifiable

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

114

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

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

115

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



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

116

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 area

Creation 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

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

117

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

Tax classification :select 1 (Taxable)

Select sales :sales, sales organization 2 tab

118

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

119

Tax classification for customer :1

Tax classification for material :1


Valid to :31.03.2009

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 Module

MM Module

FI Module � product costing � SD module � CO-PA

CO Module

Define an operating concert

Operating concern can be equal to controlling area or above controlling area

Controlling area can be equal to our company code or above company code

Company code =controlling area =operating concern

Data structure

Characteristics Value fields

Customer ------

Product |

Sales order |

Plant |-� Sales cost of goods sold net profit

Sales organization |

Sales employee |

Country |

120

----

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 quotation

2. 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

SD condition types CO-PA value fields

PR00 Price VV 010 – Revenues

VPRS 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 =VV010

VPRS=W140

Product cost : BILFG1

Cost sheet: BILFG

Raw materials xxx

Raw material overheads xxx

Production costs xxx

----- Production valuation will be at COGM level or

COGM+ admin exp. Level

Cost of goods manufactured xxx

(COGM)

Administration xxx

Sales & Distribution xxx

-----

Cost of goods sold (COGS) xxx

121

In client 800 –for company code 10001 controlling area -1000 operating concern IDEA

In 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)



Description :Operating concern for BIL

Select costing based check box

Select account based check box

select attributes tab

operating concern currency INR

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

122

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


Define no.range for actual postings

123

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 fields


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

operating concern

Give the operating concern

Select operating concern :IDEA

Enter

User 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

124

PR00 price :VV010 Revenues

Scrap 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

Up to flows of actual value the path is same

(Through path )

Direct posting from FI/MM:Maintain PA transfer structure for direct postings

Tr 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

125

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)



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 AREA

1. 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

126


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

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

127

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.

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 price

10*400

128

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

Save

From the menu select Billing document-Display-Select accounting button

Double click on accounting document no.

200100 DLF Industries Limited 6000 customer no.is taken from sales order

300005 Sales local own goods 6000-ERL

Qty sold *Sale price

10*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


129


Select value field with characteristics radio button

Enter

Value field select VV140 –cost of goods sold



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

130

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

Enter & save

Create profitability report:

Same path

Double click on crate profitability report

Tr 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



131

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 Module

MM Module |

FI Module | � Product costing

CO 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 budget� Material requirement Planning

| |

(Make to orders (confirmed orders) (This is same men budget) +

And make to stock (expected orders)) Overhead planning =

Standard cost

Cost sheet for the product BILFG1

Raw materials xx

Raw material overheads xx

Production costs xx

Cost of goods manufactured (COGM) xx

Administration Expenses xx

Sales & Distribution exp. xx

----

Cost of goods sold (COGS) xx

To check with client at what level he wants to value stocks

132

At COGM level or At COGM +Admin level

Raw material standard cost

For each product –we find out materials required

For BILFG1 We required BILRM1

BILRM2

MM Module :Material Master

Accounting view –moving average price

BIL RM1 75

BILRM2 125

PP Module: Bill of Material (BOM)

To produce BILFG1 what materials are required and how much quantity

BILRM1 1Kg

BILRM2 1Kg

Raw material standard cost =Quantity

from BOM (PP)*Rate from Material Master (MM)

(1*75)+1*125)=200

Raw material overheads

Overheads like freight charges :At the time of receipt it will be added to material –At the

time of consumption the material cost includes freight also.

Overhead like loading and unloading normal amounts change directly to P & L 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



Raw 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

133

Raw material Issue Issue Finished product

Wages 300000

Salaries 100000

Power 320000

-------

Planned cost 720000

=====

Planned hours available

Machines 100 working for 3 shifts (24 Hours )

No.of days 30 Days

100*30*24=72000

Machine hour rate 720000/72000=10 Rs

(Activity type)

To Produce BILFG1

Hours required 5Hrs

Production cost 10*5=50

Production cost : (Hours required in Dept A * Machine hour rate)+(Hours required in

Dept B* Machine hour rate )+ (Hours required in Dept D * Machine hour rate)

Example :

Why can’t we allocate based on production

Production Qty Hrs Req Cost

BILFG1 999 Kgs 1

BILFG2 1 Kg 999

------ -----

1000 1000 720000

If we allocate cost based on production

BILFG1 720000*999/1000=719280

BILFG2 720000*1/1000= 720

--------

720000

======

If we allocate cost based on hours required

BILFG1 720000*1/1000 =720

BILFG2 720000*999/1000 =719280

-----------

720000

========

ACTIVITY BASED COSTING

134

Co –Consultants job:

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

A) RM overhead rate

B) Activity allocation

Give the cost element 1200000

Valid from 01.04.2008 to 31.12.9999

Enter

Give the name and description :RM Overhead rate

Cost element category : Select 41 overhead rates

Save


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)

135

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

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:

136

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 groups

Same path



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

137

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

138

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 2 BIL1 5

(Planned overhead rate) RM key

01.04.2008 31.03.2009 BIL 1 (Actual overhead rate) BIL1 10



Define Credits

Same 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%

139

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)



2. Loading & Unloading charges

Loading & Unloading charges Dr 7000 Dept H

To Bank 7000

3. RM 2 Purchase



4. Loading & Unloading charges for RM 2

Lodging & unloading charges DR 3000

To Bank 3000

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

RM consumption local DR 40000 Order 1

RM Consumption local DR 20000 Order 1

To Inventory RM local 40000

To Inventories RM local 20000

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

RM consumption local DR 10000 Order 2

RM Consumption local DR 30000 Order 2

To inventory RM local 10000

To Inventory RM local 30000

In the month end

RM material consumption 100000

Lodging & Unloading charges 10000

140

% on consumption 10% actual overhead rate

Cost center Dept H

(Allocation cost center)

Loading & Unloading for RM1 7000 DR Order 1 6000 DR

Loading & Unloading for RM2 3000 DR Order 2 4000CR

H Value will be zero

Order 1 Order2

RM Consumption 60000 40000

RM 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 materials

20 400000-400099

D3 RM Overhead rate

From :10

To Row :10

141

Credit :D4

Row :30

Base :D2

Description :Product cost

Row :40

Description :Cost goods manufacturer

From :10

To row :30

Save

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)


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

142

Define cost component structure:

To know the break up of standard product cost

What is raw material cost?

What is RM overhead cost ?

What is production cost ?

Path :SPRO-Controlling –Product cost Controlling –Product cost planning –Basic

settings for material costing –Define cost component structure . (OKTZ)

Select cost component structure :01

Double click on cost components with attributes folder

Select component structure :01 with cost component 10 raw materials

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


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


143


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 folder

For cost component structure 01 select active check box

Save

For cost component structure assignment structure 02 also for cost component

Note: The above procedure is to be followed to 02 also

PP CONSULTANT JOB:

Define MRP controller

144

Path :SPRO-Production –material requirements Planning –Master data-Define –MRP

controllers


Plant :BILP

MRP controller :Mr.A

Save


Notes:

Define floats (Scheduling margin key)

Floats –Buffer days or grace days

2 days grace days

Production order creation 08.12.2008 10.12.2008

Production order release 10.12.2008 12.12.2008

Production start date 11.12.2008 13.12.2008

Production 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


Plant :BILP

Production scheduler :B

145

Description :Mr.B

Save


Determine person responsible for work center

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

person responsible


Plant :BILP

Responsible person : Mr.C

Person responsible for work center :Mr.C

Save


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

146

To period :9

Fiscal year :2008


Cost center :Dept G

Activity type :BIL



Plant activity :72000

Save

calculation of Machine hour rate

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

Select cost center group radio button

Cost center group select :BILPROD

Execute

Select save button


MM END USER AREA

Creation of material master (MM01)

A) Raw material 2

B) Finished product 1

Give the material :BILRM2

Industry sector :Mechanical Engineering

Material type :Raw material

Press select view button

Select basic data1 :Select purchasing Select general plant data /storage /Accounting


Plant :BILP

Storage location :Hyderabad

Enter

147

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

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

148

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

149

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


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)


Plant :BILP

Enter

Usage :select 1 production

Status ;select 4 (released (general))

150

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)


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 75

BILRM2 1Kg 150 225

RM overhead cost -5% 11

Production costs 5*10 50

Machine hours 5 Hrs

151

Machine hour rate 10Rs -----

286

From the menu select Costs –>Display cost components


Enter

Marking and releasing

Display material master

Path :Logistics –Materials management –Material master-Material –Display –Display

current (MM03)

Material :BILFG1


Select costing 2 view

Enter

Plant :BILP

Enter

A) Marking and releasing

Display material master

1. Making updates future price in live environment on 21st February create estimate for

March and store in the System.

2. Realizing updates current price on 1st of March release stock valuation will be at the

new rate from 1st of March

B) Marking and releasing :

Path :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

152


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)

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


153

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



Valuation variant :007 production order -Actual

Save


Work in process customization

Creation of 5 secondary cost elements (Tr code is KA06)

Give the cost element :1100000

154

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

155



Technical result analysis cost element :select 1100000

Save


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’s

Same path

Purchase of to get the break up of WIP (Work In Progress)value

Select line ID EL (Revenues)

EK Direct cost

FK Production cost

ABR settled cost for controlling area 1000

Select copy as button (F6)

Change the controlling area to BIL for all line ID’s

Enter & Save


Define Assignment (OKGB)

Same path

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


Change the controlling area to BIL

156

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

157

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

158

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

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

159


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 details button

Select transfer to Financial accounting check box

Save



RM issue overhead production costs Dept A Dept B Dept D

FG not received

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

160

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



Enter

For plant :BILP

Assign variance key :BIL1

Save


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

161


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


Enter

Variance key :select BIL1

Save

Creation of cost element group (KAH1)

Give the cost element group :BILPRODN

Enter

Description :Production cost element for BIL

Select Edit-Cost element -Select insert cost element button

400100 400299 Personnel & Manufacturing

400500 400599 Depreciation

1200001 Activity allocation

Save

Create allocation structure:

Path :SPRO-Controlling –Product cost controlling- Cost object controlling –Product

cost by order-Period end closing –Settlement –create allocation structure



Text :BIL Production differences allocation structure

Save


162

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

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


163

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


Save


Define CO.No.range interval for the business transactions

RKL -Actual Activity Allocation

KZPI- Actual overhead (Periodic)

User transactions code :KANK

164



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)


Exchange rate type :P


From currency :INR

To currency :EUR

Direct quotation :0.02

Save


FI Consultant job BILRM2 receipt

Purchase order Opening stock

|

GR

|

IV

Inventory RM local DR BSX

To Stock taking GBB BSA Current liability & provision

Production order differences are to be settled to accounts

Production order differences manufacturing DR PRD

To INC/DEC in stocks FG GBB AUA

Creation of 2 GL masters (FS00)

165

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

166

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


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

167

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



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:

168

Path :Logistics –Production-Shop floor control-Order –Create –with material (Tr code

is CO01)


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


From the menu select other goods receipts display

Enter


169

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 button

Give the reservation no.66076

Enter

Qty

BIL RM1 :15

BIL RM2 :15

Save

From the menu select goods issue display

Enter



200121 Inventory RM local 1125 BILRM1 BSX BIL1

400000 RM consumption local 1125 BILRM1 GBB VBR BIL1

Quantity consumed * Avg rate ( 15 *75)

200121 Inventory RM local 2250 BILRM2 BSX BIL1

GBB VBR

400000 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

Select text check box

Select dialog display check box

170

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



171

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 :BILP

Material number :BILFG1

From period :01 2008

To Period :9 2008

Execute

Select report call button

Confirmation of production order

Path :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)

172

Order :60003225

Plant :BILP


Enter



From the menu select goods receipt display

Document no.5000011861

Enter



200122 Inventory FG 2860 BILFG1 BSX BIL2

GBB AUF

300200 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.60003225

Enter

From the menu select functions –Restrict processing –Technically complete

Save

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)



Select back arrow


Execute

173

Double click on variance amount

Open one more session for order display (CO03)


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



Execute

Select details list button



GBB AUA

174

300200 INC/DEC in stocks FG 853 BILFG1 BIL2

400201 Production order diff 853 period

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

200123 work in process 3713 –Balance sheet credit

ASSET ACCOUNTING AREA

Capital work in progress line item settlement

Machine purchase Debit to CWIPMachine no.15

01.12.2008 Commission 13/12/2008

Freight charges 05.12.2008 settle from CWIP to respective asset

Commissioning 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


Double click on assign settlement :Profile to company code

175



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

176

Transaction type :100 External acquisition

Remove the TDS codes

Enter

Amount :*

Text :+

Document –Simulate & Save

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

177

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)

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

178

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 –0L

Accounting group K4 US Group Jan –Dec K4 Non leading ledger –M1

Accounting 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.

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 open

Ledger M1 Non-representative ledger

January 2009 –December 2009

January 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.

179

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 box

Save

(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


Company code :BIL

180

Fiscal year variant :K4

Posting period variant :BIL

Save


Select back arrow

Give the ledger :M2

Enter


Company code :BIL

Fiscal year variant :V6 (July to June)

Posting period variant :BIL

Save

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 :M1

Enter


Type Number range

SA 40 (give it any number range)

KR 40

DR 40

WE 40

181

WA 40

RE 40

RV 40

WI 40

AA 40

Save


Select back arrow

Give the ledger :M2

Enter


Type Number range

SA 41

KR 41

DR 41

WI 41

WA 41

WE 41

WL 41

RE 41

RV 41

AA 41

Save

Define document types for general ledger view Same path

Give the ledger :M1

Enter


Type Number range

SA 45

KR 45

DR 45

WA 45

WI 45

WL 45

WE 45

RE 45

RV 45

AA 45

Save


182

Select back arrow

Ledger M2

Enter


Type Number range

SA 46

KR 46

DR 46

WA 46

WE 46

WI 46

WL 46

RE 46

RV 46

AA 46

Save

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

183


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

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

184

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

Amount :*

Business area :BILH

Text :+


0L Leading ledger April 2008- March 2009 10th

Period 105000 2008

185

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

186

Scenario Future scenario

Company code :BIL Company code BIL

| |

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

rules

Profit 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



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

187


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

Sales Party X Account Dr 100000

To Sales Steel 80000 Steel profit center

To Sales cement 20000 Cement profit center

Due to document splitting

Party X Account Dr 80000 Steel

Party X account Dr 20000 Cement

To Sales Steel 80000 Steel

To Sales Cement 20000 Cement

Creation of 3GL masters :FS00

A) Sales –Steel Sales

B) Sales –Cement Sales

C)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

188

Valid from 01.04.2008 to 31.03.9999

Enter


Save

Second a/c

Give 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



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:

189

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 :BIL

Enter


Account from Account to Category Description

100000 299999 01000 Balance sheet account

300000 399999 30000 Revenue

400000 499999 20000 Expense

Save


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 splitting Same path

Select document splitting check box

Save


END USER AREA

Posting of sales (F-22)

Give the document date :Todays date

Type :DR

Company code :BIL

190

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

Save

From the menu select Document –Display

191

Select general ledger View button

CENTRAL EXCISE AND SALES TAX

CIN: Country India Version

MM Consultant

SD consultant

FI 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 wise

Central excise rates are given in central excise tariff chapter IDs :8 digits code

Under chapter id we have material description and rate

Basic Excise Duty (BED) 14% maximum (now changed to 10%)

Additional excise duty (AED) –Products like textiles

15% of basic amount –Now no AED

Special 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 consumable

Part 2 value updation - 100% CENVAT same year

RG23C Part 1 Quantity updation – Excise duty on Capita Goods

Part 2 value updation - 50% current year 50% next year

192

PLA Personal Ledger Account

Bank excise credits and debits

ER1 (Excise return 1) (Earlier it was RT12 monthly return)

To pay excise before 5th

of next month

To file the return before 10th

next month

RG1 Finished goods register

Purchase scenario:

Consumable purchase capita goods purchase (stores)

Basic price 100 200

Excise 8% 8 10% 20

---- ----

108 220

VAT 4% 4.32 8.8

----- ----

112.32 228.8

Goods receipt for consumables

A) Goods receipt entry


To GR/IR clearing RM LCL 100

B) Excise entry

RG 23 A BED DR 8

To CENVAT clearing 8

Invoice verification for consumables

GR/IR clearing RM LCL DR 100

CENVAT clearing A/c DR 8

VAT Receivable DR 4.32

To party 112.32

Goods receipt for capital goods

A) Goods receipt entry

Inventory stores local DR 200

193

To GR/IR clearing stores Local 200

B) Excise entry

RG 23C BED DR 10

CENVAT on hold DR 10

To CENVAT clearing a/c 20

Invoice verification for capital goods

GR/IR clearing stores LCL DR 200

CENVAT clearing a/c DR 20

VAT Receivable DR 8 .08

To party 228.08

Sales scenario Basic price 1000

Excise rate 14% 140

-----

1140

VAT 12.50% 142.5

-------

1283

Sales billing :

Customer A/c Dr 1283

To Sales 1000

To CENVAT suspense 140

To VAT payable 142.50

Excise invoice creation

CENVAT suspense a/c Dr 140

To Excise duty payable 140

Excise Balances:

RG23A RG23C PLA

Purchase 8 10

Payable on sale 140

To pay 5 6 129

PLA Deposit

PLA A/c Dr 150

To Bank 150

Excise utilization

194

Excise duty payable DR 140

To RG23A BED 5

To RG23C BED 6

To PLA 129

10) Sales tax Payment to Dept

VAT Payable 143

VAT Receivable 13

To Bank 130

VAT Payable Dr 143

To VAT Receivable 13.10

To Bank 129

11) Final balances in excise registers

RG23A RG23C PLA

Purchase /Deposit 8 10 150

Utilized at the time of sale 5 6 129

-----------------------------------------------------------------

Closing balance 3 4 21

======================================

SAP:

Tax procedures TAXINJ: Formula based

TAXINN condition based

In new implementations –TAXINN

Client 000-SAP has given TAXINN and TAXINJ

Excise 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


Component :select IND

195

Enter

For component IND select active check box

Save


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


Process :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

Change the description to AR VAT


Press enter and Save

Change process to B5

196

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

197

Select :BIL2


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 :TAXINN

Double 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 B2

198

X

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

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 :IN

Enter

Tax code :V0

Enter

Give the description :0% Input tax

Tax type :V (input tax)

Enter

Save

Tax code :V1

Enter

Description :V1 Dummy tax code for purchases

Tax type :V for input tax

Tax percentage rate :0

Enter & Save

199

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

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

200

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

Credit 50

Save


201


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 settings Same path




CENVAT document type :SA

Utilization FI document type :SA

202

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

No.of excise invoice selection :999

Excise invoice selection procedure :FIFO

Save


Maintain plant settings:

Same path


Plant :BILP

Excise registration :002 (This is plant level)

No.GRS per Excise invoice :select Multiple goods receipt multiple credits

Save

Maintain excise groups:

Same path


Excise group :2

Description :Excise group for BILP

Plant :BILP


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


203

Note :MRO –Invoice verification

Maintain series groups

Same path


Series group :2

Series description :BILP series group


Save


Maintain excise duty indicators:

Same path


Excise indicator 1 :100% Tax

Excise indicator 2 :50% Tax

Excise indicator 3 :Nil Tax

Save


Maintain excise defaults:

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

maintain excise defaults

select new entries button

Tax procedure :TAXINN

CVD condition JCV1:

A/P BED condition type :BIL1

A/R BED condition type :BILA

BED percentage :BIL 4

Save


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

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


Chapter ID :50000001

Unit of measurement for excise kg

Description as per law :Chemicals

Save

Create request in your Work Bench Request for BIL

save

Select next entry (F8) button

204

Chapter ID :55000001

Unit of measurement for excise kg

Description as per law Steel

Save

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

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 Dr

To PLA on Hold A/c

(This is used for next year carry forward)

205

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 :IN01


Change the company code to BIL for Registers and returns

Save press enter to save in your request

Maintain number ranges

Path :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

To number :200000

Enter & save


206


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

207

Year :2008

From no. :500001

To no. :600000

Enter & save


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

208

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



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

209

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)

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

210

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)

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

211

Save


Select back arrow

Select :BIL4


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

212


Account key :B4

Name :A/R Excise BED

Account key :B5

Name :AR CST

Account key :B6

Name :AR VAT

Save


Check and change settings for tax processing


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

213

Save


Debit :40

Credit :50

Select save button



Give the account no.100509 CST (payable)

Save


Select back arrow

Double click on transaction :B6 ARVAT

Save


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 procedures


Procedure :BIL

Description :BIL domestic Pricing procedure

Save


214

Select :BIL

double click on control data folder


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 (√)

400 Base value 100 -- Select

Check

box (√)

410 BILA A/R BED

(100%

copy) Basic

+Excise

200 200 Select

Check

box (√)

X

420 400 410 Select

Check

box (√)

450 BIL5 AR CST 420 X B5

460 BIL6 AR VAT 420 X B6

500 Basic

+Excise+

Sales tax

420 460 Select

Check

box (√)

Save

Define pricing procedure determination

215

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



enter

For BILS change the pricing procedure to BIL

Save


Define tax determination rules

Path :SPRO-Sales and Distribution –Basic functions –Taxes –Define tax

determination rules


Tax country :IN

Sequence :1

Tax category :BIL5

Tax country :IN for India

Sequence :2

Tax category :BIL6 Name:A/R VAT

Save


Define tax relevancy of mater records: Same path

Double click on customer taxes


Tax category Name Tax classification Description

BIL5 A/R CST 0 Nil Tax

BIL5 A/R CST 1 Taxable

BIL6 A/R VAT 0 Nil Tax

BIL6 A/R VAT 1 Taxable

Save


Select back arrow

Double click on material taxes


Tax category Name Tax classification Description

BIL5 A/R CST 0 Nil Tax

216

BIL5 A/R CST 1 Taxable

BIL6 A/R VAT 0 Nil Tax

BIL6 A/R VAT 1 Taxable

Save


Assign delivering plants for tax determination (OX10) Same path


Plant :BILP

Enter

Select plant :BILP


Select address button(Shift +F5)

Region :select AP (Andhra Pradesh)

Enter & Save


Assignment of accounts for automatic postings

Tr 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)

217

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 :200101

Company 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

218



Material :BILFG

Amount :10

Valid from to :01.04.2008

Valid to :31.03.2009

Save

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

219

To check whether 0% input tax code and 0% output tax code assigned to company code

to BIL


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

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

220

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

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

221

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)

Path :Indirect taxes –Registers –Excise tax –Extract (J2I5)

222

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 :2


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)

223

Company code :BIL

Tax code :V1

LST condition type :BIL3

Execute

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 Goto�Item 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)

224

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

Keep the cursor on go goods delivery no.


Select accounts document button

Select account document no.

Post : Inventory FG 700

IN/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)

225

Enter

Excise group to :2

Serious group :2

Select utilization button (F6)

Save


CENVAT suspense A/c Dr

To Excise duty payable

Go and see sales billing display (VF03)

Give the billing document no.90036108

Select accounting button


RG23A BED posting (F-02)


Type :SA

Company code :BIL

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 :+


226

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

Plant :BILP

Excise group :2

Period :01.03.2009 to Today’s date

Business area :BILH

Execute

RG23A Utilized :6.60

Select duty button

227

Select Simulate button (F7)

Select right mouse button


Save

Go and see the document (FB03)

Document no. :38

Company code :BIL

Fiscal year :2008

Enter

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 100000

Preference share capital 100001

Reserves & Surplus

General Reserves 100101

Capital Reserve 100102

Secured loans

Unsecured 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

228

Name Balance Sheet and Profit & Loss account

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)


229

Enter

Keep the cursor on Profit & Loss account

Select create item button

Give the items :Income

Give the items :Expenditure

Enter

Save


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

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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)


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

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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

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

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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:

100000

100001

100002

Share capital 100003

------- X

100100

100101

Reserves & Surplus 100102

Secured loans X

Unsecured 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

Enter

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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


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Enter

Double click on Expenditure

Start of group :Total expenditure


Enter

Double click on Raw material consumption

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

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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 SAP

2008 2007

Sales 100 75

1) Percentage of Increase Current year –Previous year *100

----------------------------------

Previous year

100-75/75*100=33.3

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 987654321.55

Rupees in lakhs (100000) 5 Decimals

2 decimals 2 decimals 9876.54

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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)


Report date :31.03.2011

Execute

2. Fixed asset schedule as per schedule VI of companies Act

Gross

block

in the

beginn

ing

year

Additi

ons

during

the

year

Sales

/Trans

fers

during

the

year

Gro

ss

blo

ck

in

the

yea

r

end

Dep.

for

the

year

end

Acc.De

p.in the

beginni

ng of

year

Dep.

for

the

year

Dep

on

sales

/Trans

fer

Acc.

Dep

in the

year

Net

blo

ck

in

the

yea

r

end

Net

block

in the

beginn

ing

Information systems –Accounting –Financial accounting –Fixed assets –Asset History

sheet (Tr code is AR02

Give your company code :BIL

Report date :31.03.2009

Select group totals only radio button

Execute

(Note :Retirement mean sale of asset)

Select asset button

Double click on asset retirement

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PROJECT

BIL group (to go for ERP)

Packages available Cost / Feature/Time

ERP Packages

SAP

Oracle Financials

JD Edwards

People soft

Decided to go for SAP –Consulting firms Cost/Support /Experience

1) WIPRO

2) Infosys

3) Satyam

4) Intell

5) 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 WIPRO

A) Project Manager A) Project Manager

B) 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 steering committee

BIL Senior people

WIPRO 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 –Testing

WIPRO –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 Preparation

2. Business blue print

3. Realization

4. Final preparation

5. Go and live and support

OSS mean Online Support Service

Land Scape

1. Development � Quality testing � Production

SAND box –All scenarios � configuration selected scenario� Testing

2. Development � Production

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R/ 3 Structure Presentation application data base SAP Package data stored in data base server

SAP CO Notes

Documents

Transcript of SAP CO Notes