AC650,04

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SAP AG 1999

The Meaning of Multiple Valuation Approaches

Possible Valuation Approaches in PCA

Calculating Transfer Prices in PCA

Group Costing

Content:

Determination of Multiple Valuation Approaches

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SAP AG 1999

Describe the significance of multiple valuationapproaches for PCA

Describe the particular relevance of the transferprice concept in PCA

Set transfer prices

Perform group costing

At the conclusion of this unit, you will be able to

Determination of Multiple Valuation Approaches:Objectives

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SAP AG 1999

To implement multiple valuation approaches, youuse transfer pricing and group costing functions toset different prices for materials for the individualviews.

Determination of Multiple Valuation Approaches:Business Scenario

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Flexible Transfer Pricing

PricingPricing ProcedureProcedure

ConditionCondition TablesTables

TransferTransfer Price VariantPrice Variant

Flexible TransferPricing

ConditionCondition TypesTypes

AccessAccess SequencesSequences

Variant 000

Pricing Procedure TP0002

Step Condition Type Frm To Cond.Formula10 TPB1 00020 TP02 10 10 000

TPB1 Cond.TypeCalc. Type CCond. Class A

TP02 Cond.TypeCalc. Type ACond. Class A

Access Seq. ZU01

Access Sequence ZU01Table 903Table 902

Table 903Plant Field, Mat No. Field, PPrCtr Field

ConditionCondition TypeType RecordsRecords

Fixed Price150

Calc. Price95

Markup

10 %

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Defining a Condition Table

Selected Fields

PlantMaterialPartner Profit Center

903Table Plant/Material/Partner PC

With Validity Period

Field Catalog (Profit Center Price Determination)

Valuation Type

Controlling Area

Material Class

Description

BWTAR

KOKRS

MATKL

FieldFieldSelection

With Release Status

Field Catalog

ABC IndicatorValuation TypeControlling AreaMaterial

Material TypePartner Profit CenterPlant

Material Number

Material Type

Plant

MATNR

MTART

WERKS

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Defining an Access Sequence

Access Sequence ZU01 Multi-Level Access

Accesses

Plant/Material/Partner Profit Center

Plant/Rep. Mat. No./Partner PrCtr

Dependent on Material

Description Exclusive

1

2

3

No.

903

902

142

Table Condition

Access ZU01 1 Multi-Level AccessTable 903 Plant/Material/Partner Profit Center

Plant

Material

Partner Profit Center

Field Name

Werks

Matnr

PPrCtr

Condition IntI/O

KOMK

KOMP

KOMP

Doc.Str.

Werks

Matnr

PPrCtr

Doc.Field

Source of Constant AccType Prio

Access Sequences

Transfer Prices

Multi-Level Access

Description

TP00

ZU01

AccSeq Type Description

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Defining a Condition Type:Example of a Base Condition

Control Parameters

hCondition CategoryCalculation Type

Reference Value

Condition Class

C

A

Quantity

Markups or Markdowns

Additional Settings

+/- Sign

Scale Check

Currency Translation

Rounding Rule

None

To Nearest Whole Number

Positiv and Negative

TPB1Condition TypeAccess Sequence

Material Price (ML)

D C

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Defining a Condition Type:Example of a Markup Condition

Condition Type Definition

Base Condition Type from Cost Estimate

Base Condition Type from Material Ledger

Percentage Markup

Fixed Price

TP02

ZU01

Condition Type

Access Sequence

Percentage Markup

Multi-Level Access

Condition Type Records Access Records

Additional Condition Type

Plant Material Partner Profit Center

1000 AZ2-130 1500Valid from 1999.06.25to 9999.12.31

Percentage Markup

TP02

CType

%

Unit Per UoM Del. ID Scales

AccessRecords

60,000

Amount Texts

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Defining a Transfer Price Variant

Pricing Procedure TP0002 Percentage Transfer Prices

Material Price (ML)

Percentage Markup

Description

010

020

Level

00

00

Cnt.

Controlling Area 1000Transfer Price Variant 000 Actual Transfer Pricing

Fixed Transfer Prices

Percentage Transfer Prices

Description

01

02

No.

00

00

RF

TP0001

TP0002

PricingProcedure

TPB1

TP02

CType

000

010

From

000

010

To

100

000

Basfor

Condition Types

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Group Costing: Cost Component Split

Material Activity Markup Including Profit

DEM 600 100 100 800

USD 170 50 50

130

230 270

USD 400 50 50 500

Controlling AreaCO-CO-

PCPC

Legal 800

PrCtr 500

Group 270

Crcy

DEM

US$

US$

Standard Price

Profit Center Costing

Group Costing

Legal Material Costing

400 $Legal Sales

PriceTransfer Price600 DEM

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Group Costing: Rollup of the Cost Component Split

Company A Company B Company C

DC = Direct CostsPOH = Proportional OverheadsFOH = Fixed OverheadsP = Profit (Revenues/Full Costs)A, B, C = Companies A, B & C

Group Costing Plan Costing Group Costing Plan Costing

DCA

POHA FOHA

PA

DCA

POHA FOHA

DCB

POHB FOHB

DCB

POHB FOHB

DCA

POHA FOHA

DCB

POHB FOHB

PB

Broken Down Total

POHC FOHC POHC FOHC

PC

POHA FOHA

POHB FOHB

POHC FOHC

PB

PC

DCC

DCC

DCA

DCB

DCC

DC

P

POH FOH

Group

Group = Plan Costing

PA

PA

PB PB

PC

PA

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Costing Variant: Assignments

Costing Variant IKO1Assignments

Cost Component Structure

Costing Version

Cost Component Split in Controlling Area Currency

Cross-Company Costing

Costing Versions

001

Valuation Variant

1

1

Cost. Version

M

ExchRateType

01

K1

CostingType

PC0

Var. for Transfer Price

MIX

QuantityStructure

Cost.Version TP PrCtrView

Cost.Version TP PrCtrView

Description

1 MP1 PC0 Cost.Version TP PrCtrView

S0110 S1 Simulation

Transfer PriceVariant

Costing Type

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Costing Variant: Control

Costing Variant IKO1Control

Standard Cost..Mat.Costing

Plan Valuation - Material

Standard Cost. - Month

TP New Valuation Material

Standard Quantity Structure

Condition Type

Valuation Variant

Date Control

Transfer Control

Reference Variant

Quantity Structure Control

Costing Type K1 Standard Cost.Mat.Group

Update

Standard Price

Costing Type K1 Standard Cost.Mat.Group

Others

Cost of Goods ManufacturedCalculation Base

Group ValuationCCODE PLAMT PROFITCENTERPartner Version

Partner Version 1 CCODE PLANT ProfitDirect Partner Center

Company Code

Plant

Business Area

Profit Center

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SAP AG 1999

Transfer Control LEG1Plant-related

Reference Cost Estimate

Costing Variant IKO1Control

Standard Cost..Mat.Costing

Plan Valuation - Material

Standard Cost - Month

TP New Valuation Material

Standard Quantity Structure

Costing Type

Valuation Variant

Date Control

Transfer Control

Reference Variant

Quantity Structure Control

Reference Variant 2 TP New Valuation Material

New ValuationTP New Valuation MaterialTransfer Control

Reference Variant 2New Valuation

Material Component

Internal Activity

External Activity

Process Costs

Overheads

Subcontracting

Production Resources and Tools

Reference Variant 2 TP New Valuation Material

Costing Template for Transfer ControlTP New Valuation MaterialLEG1

Transfer on Plant ChangePC01

FY Periods Costing Variant Costing Version

Other Cost Estimate

No Transfer

No Transfer

12 PPC1

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SAP AG 1999

Reporting - Group Costing

+

-+

+

-+

0812347-1235485855967-0956/434

Company Code 0001Company Code 0002Company Code 0003

Profit Center PC - 1Profit Center PC - 3Profit Center PC - 5Profit Center PC - 9

30,000 34,400 4,400 1,00045,000 47,000 2,000 80054,000 63,900 9,900 2,300

12,500 13,500 1,000 50020,000 22,500 2,500 80021,500 27,900 6,400 1,00010,000 11,000 1,000 500

9,000 15,000 3,000 250500 900 400 50

2,000 1,000 2,000 200

Material Number Material Production .... Profit

. . .

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SAP AG 1999

Restrictions

To calculate WIP using target costs, the operative versionmust be the legal valuation approach. WIP can only bereflected for this valuation approach.

Automatic invoice receipt for cross-company processingwithin the same system uses EDI.

The product cost collector's preliminary cost estimate canonly use legal valuation.

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SAP AG 1999

Key Points

No internal payables/receivables are posted.

Plan costs are calculated using the profit centercost estimate.

Plan revenues are found using transfer pricing.

Determination of Multiple Valuation Approaches:

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Describe the significance of multiple valuationapproaches for PCA

Describe the particular relevance of the transfer

price concept in PCA Set transfer prices

Perform group costing

You are now able to:

Determination of Multiple Valuation Approaches:Summary

Documents

AC650,04