PRODUCT COSTING
This is used for valuation of inventories i.e. Finished goods and Work in progress
PP ModuleMM Module |FI Module | Product costingCO Module |
Note: SAP lab :Product costing made easy BPB publication –Not covered product costing Crate a cost estimate with quantity structure
Cost element with quantity structure At standard cost In the month end we get actual cost
Variable will be settled to accounts
How standard cost will be arrived at :
Sales budget for next month Production budgetMaterial requirement Planning | |
(Make to orders (confirmed orders) (This is same men budget) +And make to stock (expected orders)) Overhead planning =
Standard cost Cost sheet for the product BILFG1Raw materials xxRaw material overheads xxProduction costs xxCost of goods manufactured (COGM) xxAdministration Expenses xxSales & Distribution exp. xx
----Cost of goods sold (COGS) xx
To check with client at what level he wants to value stocksAt COGM level or At COGM +Admin level
Raw material standard costFor each product –we find out materials requiredFor BILFG1 We required BILRM1
BILRM2MM Module :Material MasterAccounting view –moving average priceBIL RM1 75BILRM2 125
PP Module: Bill of Material (BOM)
To produce BILFG1 what materials are required and how much quantity
BILRM1 1KgBILRM2 1KgRaw material standard cost =Quantity from BOM (PP)*Rate from Material Master (MM) (1*75)+1*125)=200
Raw material overheads
Overheads like freight charges :At the time of receipt it will be added to material –At the time of consumption the material cost includes freight also.
Overhead like loading and unloading normal amounts change directly to P & L account clients will tell us-how much percentage can be taken on raw material cost (consumption.) 5% of raw material costs
Eg: 250*5%=12.5
Production costs:Cost centers in PP Module :Work centers
Dept A Dept B Dept C Dept D
Dept A Dept B Dept C Dept DRaw material Issue Issue Issue finished product
All products need not go through all the Departments
Process flow for each product in PP module we call as routing.
PP Module: Routing (Process flow)Dept A Dept B Dept D
Raw material Issue Issue Finished product
Wages 300000Salaries 100000Power 320000
-------Planned cost 720000
=====Planned hours availableMachines 100 working for 3 shifts (24 Hours )No.of days 30 Days
100*30*24=72000Machine hour rate 720000/72000=10 Rs(Activity type)To Produce BILFG1Hours required 5HrsProduction cost 10*5=50
Production cost : (Hours required in Dept A * Machine hour rate)+(Hours required in Dept B* Machine hour rate )+ (Hours required in Dept D * Machine hour rate)
Example :Why can’t we allocate based on production
Production Qty Hrs Req CostBILFG1 999 Kgs 1BILFG2 1 Kg 999
------ -----1000 1000 720000
If we allocate cost based on production
BILFG1 720000*999/1000=719280BILFG2 720000*1/1000= 720
-------- 720000 ======
If we allocate cost based on hours required
BILFG1 720000*1/1000 =720BILFG2 720000*999/1000 =719280
-----------720000========
ACTIVITY BASED COSTING
Co –Consultants job:
1. Creation of 2 secondary cost elements (Use Tr.code is KA06)
A) RM overhead rateB) Activity allocation
Give the cost element 1200000
Valid from 01.04.2008 to 31.12.9999
Enter
Give the name and description :RM Overhead rate
Cost element category : Select 41 overhead rates
Save
Cost element :1200001
Enter
Name and description :Activity allocation
Cost element category :select 43 Interval activity allocation
Save
Creation of activity type –Machine hour:
Path :Accounting –Controlling –cost Center accounting –Master data –Activity type-Individual processing –create (Transaction code KL01)
Activity type :BIL
Valid from :01.04.2008 to 31.12.9999
Enter
Give the Name & Description :Machine hour
Activity unit :select H
Cost center categories :Select * (All cost center categories)
Active type category :select 1 (Manual entry , Manual allocation)
Allocation cost element :1200001
Save
Creation of cost centers: (Tr.code is KS01)
Give the cost center :Dept G
Valid from : 01.04.2008 to 31.12.9999
Reference cost center :Dept A
Controlling area :BIL
Enter
Change the name to Dept G
Change the description to cost center :Dept G
Person responsible :MrG
Other things are common
Select save button
Cost center :Dept H
Reference cost center :Dept A
Controlling area :BIL
Enter
Change the name to Dept H
Change the description to cost center:Dept H
Change person responsible to Mr.H
Cost center category :select 9( Allocation cost center)
Save
Create of cost center group (Tr code is KSH1)
Give the cost center group :BILPROD
Enter
Description :BIL Production cost center group
Select insert cost center button
Select cost center Dept G
Save
Define overhead keys:
Path :SPRO-Controlling –Product cost controlling –Product cost planning basic settings for material costing - overheads-Define overhead keys
Select new entries
Overhead key :BIL1
Description :BIL Overhead key
Save
Press enter to save in your request
Define overhead groupsSame path
Select new entries button
Valuation area :BILP
Overhead group :BIL1
Overhead key :BIL1
Name of overhead group :BIL over head group
Save
Press enter to save in your request
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
Select new entries button
Base :D1 (Text filed)
Name :Raw materials
Base :D2
Name :Production cost
Save
Press enter to save in your request
Select D1 double click on details folder
Controlling area :BIL
Enter
Select new entries button
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
Controlling area :BIL
Enter
Select new entries button
From cost element :400100
To cost element :400299 Personnel & Manufacturing group
From cost element :400500
To cost element :400599 Depreciation a/c
From cost element :1200001 Activity allocation
To cost element :1200001
Save
Define percentage overhead rates:Same path
Select new entries button
Overhead rate :D3
Name :RM overhead rate
Dependency :Select D010 Overhead type/Overhead key
Save
Press enter to save in your request
Select D3
Double click on details folder
Ignore the warning message press enter
Select new entries button
Valid from To Controlling area Overhead type Overhead key Percentage
01.04.2008 31.03.2009 BIL Select 2 BIL1 5 (Planned overhead rate) RM key
01.04.2008 31.03.2009 BIL 1 (Actual overhead rate) BIL1 10
Select save button or Ctrl+SPress enter to save in your request
Define CreditsSame path
Select new entries button
Credit :D4
Name :BIL RM credit key
Save
Press enter to save in your request
Select :D4
Double click on details folder
Controlling area :BIL
Enter
Select new entries button
Valid to :31.03.2009
Cost element :1200000 RM overhead rate
Fixed percentage :100%
Cost center :Dept H (Allocation cost center)
Save
Actual over head rate 10%
Credit key D4 -1100000 Cost Dept.
1. RM1 Purchase/Receipt (Freight including)
Inventory RM local DR 600000To GR/IR clearing RM local 600000
2. Loading & Unloading charges
Loading & Unloading charges Dr 7000 Dept HTo Bank 7000
3. RM 2 Purchase
Inventory RM local DR 300000To GR/IR clearing RM local 300000
4. Loading & Unloading charges for RM 2
Lodging & unloading charges DR 3000To Bank 3000
1. RM Consumption for production Order 1-RM1 and RM2
RM consumption local DR 40000 Order 1RM Consumption local DR 20000 Order 1
To Inventory RM local 40000To Inventories RM local 20000
2. RM consumption for production order 2 RM-1 and RM2
RM consumption local DR 10000 Order 2RM Consumption local DR 30000 Order 2
To inventory RM local 10000To Inventory RM local 30000
In the month end
RM material consumption 100000Lodging & Unloading charges 10000
% on consumption 10% actual overhead rate
Cost center Dept H(Allocation cost center)
Loading & Unloading for RM1 7000 DR Order 1 6000 DRLoading & Unloading for RM2 3000 DR Order 2 4000CR
H Value will be zero
Order 1 Order2RM Consumption 60000 40000RM overhead rate 6000 4000(Actual 10%) ----- -----
66000 44000===== =====
Indirectly we are allocating cost center Dept H values to production orders based on the consumption values.
Define costing sheets:
Path :Up to overhead the path is same- Define costing sheets
Select new entries button
Costing sheet :BIL
Description :BIL Costing Sheet
Save
Press enter to save in your request
Select :BIL
Double click on costing sheet rows folder
Select new entries button
Row Base Overhead Description
10 D1 Raw materials20 400000-400099
D3 RM Overhead rateFrom :10To Row :10Credit :D4
Row :30Base :D2
Description :Product cost
Row :40Description :Cost goods manufacturer From :10To row :30Save
Assign costing sheet to plant :
Path :SPRO-Controlling –Product cost controlling –Product cost planning –Material cost
estimate with quantity structure- Define costing variants (TR code is OKKN)
Select position button
Cost variant :Select PPC1 standard cost estimate (Materials)
Enter
Select PPC1
Select details button
Select valuation variant button
Select create beside valuation variant /plant
Select new entries button
In plant :BILP
Save
Press enter to save in your request
Select back arrow
Select valuation variant :001 with plant BILP
Select details button
Select overhead tab
Give the costing sheet :BIL costing sheet both in the places
Save
Define cost component structure:
To know the break up of standard product costWhat is raw material cost?What is RM overhead cost ?What is production cost ?
Path :SPRO-Controlling –Product cost Controlling –Product cost planning –Basic settings for material costing –Define cost component structure . (OKTZ)
Select cost component structure :01
Double click on cost components with attributes folder
Select component structure :01 with cost component 10 raw materials
Double click on assignment:Cost component –cost element interval folder
Select new entries button
Cost competent structure :01
Chart of Accounts :BIL
From cost element :400000
To cost element :400099
Cost component :select 10 RM
Save
Ignore the warning message press enter
Press enter to save in your request
Select back arrow
Double click on cost components with attributes folder
Select cost component structure 01 with cost component 80 Material over head
Double click on assignment:Cost component cost element –Interval folder
Select new entries button
Cost component structure :01
Chat of Accounts :BIL
From cost element :1200000 RM overhead
Cost component :80 Material overhead
Save
Press enter to save in your request
Double click on cost components with attributes folder
Select cost component structure :01 with lost component 50 production machine
Double click on assignment cost component –cost element interval folder
Select new entries button
Cost component structure :01
Chat of Accounts :BIL
From cost element :400100
To cost element :400299
Cost component :select 50 production machine
One more
Cost component structure :01
Chat of Accounts :BIL
From cost center :400500
To cost center :400599
Cost component :50
One more
Cost component structure :01
Chat of Accounts :BIL
From cost element :1200001
Cost component :50
Save
Double click on cost component structure folderFor cost component structure 01 select active check boxSave For cost component structure assignment structure 02 also for cost componentNote: The above procedure is to be followed to 02 also
PP CONSULTANT JOB:
Define MRP controller
Path :SPRO-Production –material requirements Planning –Master data-Define –MRP controllers
Select new entries buttonPlant :BILPMRP controller :Mr.ASavePress enter to save in your request
Notes:Define floats (Scheduling margin key)
Floats –Buffer days or grace days
2 days grace daysProduction order creation 08.12.2008 10.12.2008Production order release 10.12.2008 12.12.2008Production start date 11.12.2008 13.12.2008Production end date 15.12.2008 17.12.2008
Path :SPRO-Production –Material requirements planning –Planning –Scheduling and capacity parameters –Define floats (Scheduling margin key)
Select new entries button
Plant :BILP
Margin key :BIL
Opening period :2 days
Float before production :2 days
Float after production :2 days
Release period :2 days
Save
Press enter to save in your request
Define production scheduler
Path :SPRO-Production-Shop floor control- Master data-Define production scheduler
Select new entries buttonPlant :BILPProduction scheduler :BDescription :Mr.BSavePress enter to save in your request
Determine person responsible for work center
Path :SPRO-Production –Basic data –Work center –General data –Determination person responsible
Select new entries buttonPlant :BILPResponsible person : Mr.CPerson responsible for work center :Mr.CSavePress enter to save in your request
CO END USER AREA:
Planning cost center wise (KP06)
Version :0
From period :9 (December)
To period :9 (December)
Fiscal year :2008
Give the cost center :Dept G
Select page down button or next page button
Cost element :400100 Salaries A/c
Select from based radio button
Select overview screen button (F5)
For 400100 Plant fixed cost :720000
Save
Planning for machine hours
Path :Accounting –Controlling –Cost center accounting –Planning-Activity output /Prices-Change (KP26)
Version :0
From period :9
To period :9
Fiscal year :2008
Select next page or page down button
Cost center :Dept G
Activity type :BIL
Select form based radio button
Select overview screen button
Plant activity :72000
Save
calculation of Machine hour rate
Path :Up to planning the path is same – Allocations –Price calculation (KSPI)
Select cost center group radio buttonCost center group select :BILPRODExecuteSelect save buttonIgnore the message press enter
MM END USER AREA
Creation of material master (MM01)
A) Raw material 2B) Finished product 1
Give the material :BILRM2
Industry sector :Mechanical Engineering
Material type :Raw material
Press select view button
Select basic data1 :Select purchasing Select general plant data /storage /Accounting
Select organization levels button
Plant :BILP
Storage location :Hyderabad
Enter
Give the description :Raw material 2
Base unit of measurement :KG
Material group :BILC
Division :BS
Select purchasing tab
Purchasing group :BIL
Select accounting 1 tab
Valuation class :BIL1 RM Local
Price control :select V moving
Moving price :150
Save
One more material :BILFG1
Industry section :Mechanical engineering
Material type :Finished product
Press select view button
Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1,
accounting , Costing 1
Select organizational levels button /enter
Enter
Plant :BILP
Storage location :Hyderabad
Enter
Description :Finished product 1
Base unit measurement :KG
Division :BS
Select MRP1 tab
MRP type :select PD (MRP)
MRP controller :A
Lot size :select EX lot for –lot order quantity
Select MRP 2 tab
In –house production :0 days
Schedule margin key :select BIL
Select MPR 3 tab
Ignore the warning message press enter
Availability check :select KP (no check )
Select work scheduling tab
Production scheduler :B
Select accounting tab
Valuation class :BIL2 Finished products
Price control :S (Standard price)
Standard price :300
Select costing one tab
Overhead group :select BIL1
Save
Note :BOM=Bill of Material
PP END USER AREA
Creation of Bill of Material
Path :Logistics –Production –Master data –Bills of material –Bill of material –Material BOM –Create (CS01)
Give the material :BILFG1
Plant :BILP
BOM usage :select 1 production
Enter
For item :10
Give the component :BILRM1
Quantity :1
Item :20
Give the plant :BILRM2
Quantity :1
Save
Creation of work center
Path :Up to mater data the path is same –Work centers –then work centers-create (CR01)
Plant :BILP
Work center :Dept G
Work center category :select 0001 Machine
Select basic data button
Give the description :Dept G
Person responsible :Mr.C
Usage :009
Under standard value maintenance
Standard value key :SAP1 Normal production
Select costing tab
Start date :01.04.2008
Cost center :Dept G
For machine activity :Give activity type BIL
Activity unit :H (Hour)
Formula key :SAP002 (Production machine time)
Save
Creation of routings
Path :Up to master data the path is same –Routings –Routings –Standard routings –Create (Tr code is CA01)
Give the material :BILFG1
Plant :BILP
Enter
Usage :select 1 production
Status ;select 4 (released (general))
Select operation button
For operation 10 give the work center :Dept G
Control key :select PP01 in hour production
Double click on operation :10
Machine standard value :5
Unit :H (Hour)
Save
Note: Routing is process flow as a department wise
CO –END USER AREA
Creation of cost estimate with quantity structure:
Path :Accounting –Controlling –Product cost controlling –Product cost planning-Material costing –cost estimate with quantity structure –Create (Tr code is CK11N) Give the material :BILFG1
Plant :BILP
Costing variant :select PPC1 (standard cost estimate for material )
Enter
Costing date from :Today’s date
Note :In live environment next month first day date, this is planning date, In training
institution use today’s date
Costing date to :31.12.9999
Quantity structure date :08.12.2008
Valuation date :08.12.2008
Enter
Cost sheet Raw materials
BIL RM1 1 Kg 75BILRM2 1Kg 150 225
RM overhead cost -5% 11Production costs 5*10 50Machine hours 5 HrsMachine hour rate 10Rs -----
286
From the menu select Costs –>Display cost components Select save button or Ctrl+SEnter
Marking and releasing
Display material master
Path :Logistics –Materials management –Material master-Material –Display –Display current (MM03)
Material :BILFG1Press select views buttonSelect costing 2 viewEnterPlant :BILPEnter
A) Marking and releasing
Display material master1. Making updates future price in live environment on 21st February create estimate for March and store in the System.
2. Realizing updates current price on 1st of March release stock valuation will be at the new rate from 1st of March
B) Marking and releasing :
Path :Accounting –Controlling –Product cost controlling –Product cost planning –material costing –Price update (CK24)
Posting period :9
Fiscal year :2008
Company code :BIL
Plant :BILP
Material :BILFG1
Select test run check box
Select marking allowance button
Select company code :BIL
Costing variant :select PPC1
(Standard cost estimate for materials)
Save
Select back arrow
Deselect test run check box
Execute
Select material :BILFG1
Select costing to tab
Select back arrow two times
Select release button
Execute
Select material :BILFG1
Select costing to tab
ACTUAL COSTING
CO consultant Job
Check costing variants for Manufacturing orders (PP)
Path :SPRO-Controlling –Product cost controlling -Cost object controlling –product cost by order –Manufacturing orders –Check costing variants for manufacturing orders(PP) (Tr.code is 0PL1)
Select costing variant PPP1 Production order plan
Select details button
Select valuation variant button
Select create button beside valuation variant /plant
Select new entries button
In plant :BILP
Save
Press enter to save in your request
Select back arrow
Select valuation variant :006 with plant BILP
Select details button
Select overhead tab
Give the costing sheet :BIL costing sheet
Save
Select back arrow
Select costing variant PPP2 production Order Actual
Select details button
Select valuation variant button
Select create beside valuation variant/plant
Select new entries button
In plant :BILP
Save
Press enter to save in your request
Select back arrow
Select valuation variant 007 with plant :BILP
Select details button
Select overhead tab
Costing sheet :select BIL costing sheet
Save
Define goods received valuation for order delivery:Same path
Select new entries buttonValuation area :BILPValuation variant :007 production order -ActualSave Press enter to save in your request
Work in process customization
Creation of 5 secondary cost elements (Tr code is KA06)
Give the cost element :1100000
Valid from :01.04.2008 to 31.12.9999
Enter
Name & Description :Order /Project result analysis
Cost element category :select 31 (order /project results analysis)
Save
Cost element :1100001
Reference cost element :1100000
Controlling area :BIL
Enter & Save
Cost element :1100002
Reference cost element :1100000
Controlling area :BIL
Enter & Save
Cost element :1100003
Reference cost element :1100000
Controlling area :BIL
Enter & Save
Cost element :1100004
Reference cost element :1100000
Controlling area :BIL
Enter
Save
Define results analysis keys
Path :SPRO-Controlling –Product cost controlling –Cost object controlling –Product cost by order –Period end closing –Work in process –Define results-Analysis keys (Tr code is OKG1)
Result analysis key :FERT WIP calculation for production orders
Define results analysis versions(Tr code OKG9)Same path
Select new entries buttonSelect controlling area :BILTechnical result analysis cost element :select 1100000SavePress enter to save in your request
Define valuation method (Actual cost) ( Tr code is OKGC)Same path
Select new entries button
Select actual cost button
Controlling area :BIL
Result analysis version :0
Result analysis key :FERT
Enter & Save
Press enter to save in your request
Define line Id’sSame path Purchase of to get the break up of WIP (Work In Progress)value
Select line ID EL (Revenues)
EK Direct cost
FK Production cost
ABR settled cost for controlling area 1000
Select copy as button (F6)
Change the controlling area to BIL for all line ID’s
Enter & Save
Press enter to save in your request
Define Assignment (OKGB)Same path
Select line ID EL that is revenues for controlling area :1000
Select copy as button
Change the controlling area to BIL
Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999)
Enter & Save
Press enter to save in your request
Select line ID :EK Direct cost for controlling area 1000
Select copy as button
Change the controlling area to BIL
Change mass cost element to 00004000++
Enter and save
Select line ID FK that is production cost for controlling area 1000
Select copy as button
Change the controlling area to BIL
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
Select copy as button
Change the mass cost element to 00004002++
Enter & Save
Select 2FK line ID’s for controlling area BIL
Select copy as button –Change masked cost element from first line ID 00004005++
Change to 00012+++++
Enter & save
Select bank arrow
Select line ID ABR Settled cost for controlling area 1000
Select copy as button
Change the controlling area to BIL
Change mass cost element to 0001000001 :(settlement cost element)
Enter & save
Define update; (Tr.code is OKGA)
Same path
Select new entries button
Controlling area :BIL
Version :0
Result analysis key :FERT
Line ID :select EL revenues
Category :select N (costs not to be included)
Controlling area :BIL
Version :0
Result analysis key :FERT
Line ID :Select EK (Direct cost)
Category :select K cost
WIP :1100001
Revenues :1100002
Controlling area :BIL
Version :0
Revenues analysis key :FERT
Line ID :FK production cost
Category :select K cost
WIP creation :1100003
Reserves creation :1100004
Select page down button
One more controlling area :BIL
Version :0
Result analysis key :FERT
Line ID :ABR settled cost
Category :select A (Settled cost )
Save
Press enter to save in your request
Creation of two GL Masters:
WIP entry
Work in process DR BS CA(Current assets, Loans & Advances)
To Increase /Decrease in WIP P & L Credit INC/DEC in stocks
FS00
Give the GL Account no. :200123
Company code :BIL
Select with template button
Give the GL A/c No.200121 INV RM local
Company code :BIL
Enter
Change short text to and GL A/c long text to work in process
Other fields are common
Save
GL A/c No.300201
Company code :BIL
Select with template button
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)
Select new entries button
Controlling area :BIL
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
Press enter to save in your request
Define results analysis version (OKG9)Same path
Select controlling area :BIL
select details button
Select transfer to Financial accounting check box
Save
Ignore the warning message press enter
Press enter to save in your request
RM issue overhead production costs Dept A Dept B Dept DFG not received
Settle to accounts by using secondary costs elements break up WIP (BY using line IDs)
Define variance keys:
Path :Up to period end closing the path is same –Variance calculation :Define variance keys (OKV1)
Select variance key 00001 Production order
Select copy as button
Change the variance key to BIL1
Change the name also variance key for BIL
Enter & Save
Define default variance keys for plants (OKVW)Same path
Select position buttonGive the plant :BILPEnterFor plant :BILPAssign variance key :BIL1SavePress enter to save in your request
Define target cost version: (OKV6)
Notes:
Budgeted cost =Budgeted production Qty * Standard price
Standard cost =Standard quantity * Standard price
Target cost =Actual production qty * standard price
Actual cost =Actual Production * actual price
Path :Same path
Select controlling area 1000 with target cost version 0
Select copy as button
Change the controlling area to BIL
Change the description to target cost version for BIL
Enter & Save
Press enter to save in your request
Assign variance key in Material master
Path :Logistics –Material management-Material master –Material –Change –Immediately (MM02)
Give the material no.BILFG1
Press select views button
Select costing 1 view
Enter
Give the plant :BILP
Enter
Variance key :select BIL1
Save
Creation of cost element group (KAH1)
Give the cost element group :BILPRODNEnter Description :Production cost element for BILSelect Edit-Cost element -Select insert cost element button400100 400299 Personnel & Manufacturing400500 400599 Depreciation 1200001 Activity allocation Save
Create allocation structure:
Path :SPRO-Controlling –Product cost controlling- Cost object controlling –Product cost by order-Period end closing –Settlement –create allocation structure
Select new entries button
Allocation structure :B2
Text :BIL Production differences allocation structure
Save
Press enter to save in your request
Select :B2
Double click on assignments folder
Select new entries button
Assignment Text
01 Direct costs(Raw materials)
02 Material overheads
03 Production costs
Save
Select assignment 01
Double click on source folder
From cost element :400000
To cost element :400099
Double click settlement cost elements folder
Select new entries button
Receiver category :select G/L, GL account
Select by cost element check box
Save
Double click on assignments folder
Select assignment 02 Material overheads
Double click on source folder
From cost element :1200000 RM overhead rate
Double click on settlement cost elements folder
Select new entries button
Receiver category :select G/L , GL Account
Select by cost element check box
Save
Double click on assignment folder
Select assignment 03 production cost
Double click on source folder
Give the cost element group :BILPRODN
save
Double click on settlements cost elements folder
Select new entries button
Receiver category :select G/L
Select by cost element check box
Save
Create settlement profile:Same path
Select new entries button
Settlement profile :BIL
Description :BIL production order differences settlement profile
Select to be settled in full radio button
Allocation structure :B2
Default object type :select G/L
Select % settlement check box
Select equivalence number check box
Select amount settlement check box
Under valid receivers for GL account :Select settlement required
Document type :SA
Maximum no.of distribution rules :999
Residence time :12 months
Save
Press enter to save in your request
Define CO.No.range interval for the business transactions
RKL -Actual Activity Allocation
KZPI- Actual overhead (Periodic)
User transactions code :KANK
Give the controlling area :BIL
Select maintain groups button
Double click on RKL
Double click on KZPI
Select Co. No. range interval for BIL check box
From the menu select –Edit –Assign element group
Save
Ignore the warning message press enter
Define exchange rate for type P (Standard truncation for cost planning for INR to EURO
(Transactions code OB08)
Select new entries buttonExchange rate type :PValid from :01.12.2008From currency :INRTo currency :EURDirect quotation :0.02SavePress enter to save in your request
FI Consultant job BILRM2 receipt
Purchase order Opening stock|GR|IV
Inventory RM local DR BSXTo Stock taking GBB BSA Current liability & provision
Production order differences are to be settled to accountsProduction order differences manufacturing DR PRD
To INC/DEC in stocks FG GBB AUA
Creation of 2 GL masters (FS00)
Give the GL A/c No.400201
Company code :BIL
Select with template button
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
Select with template button
Give the GL A/c No.100500 VAT payable
Company code :BIL
Enter
Select type /Description tab
Chang short text and GL account long text to Stock taking
Select create /bank /interest tab
Change the field status group G049 (manufacturing cost accounts)
Save
Give the GL account no.300200 INC/DEC stock in FG
Company code :BIL
Select edit cost element button
Valid from :01.04.2008 to 31.12.9999
Enter
Cost element category :select 22 external settlement
Save
Assignment of account for automatic postings (OBYC) (See the material )
Double click on transaction PRD Cost (Price) differences
Give the Chart of Accounts :BIL
Enter
Save
Give A/c No.400201 production order differences
Save
Press enter to save in your request
Select back arrow
Double click on GBB offsetting entry for inventory posting
Valuation modifier :X
General modification :BSA opening stock taking
Valuation class :BIL1
Account no. :100599 stock taking account
Valuation modifier :X
General modification :AUA production
Valuation class :BILL
Account :300200
Save
Press enter to save in your request
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
Select copy as button
Change the pant to BILP
Enter and Save
Press enter to save in your request
Define scheduling parameters for production orders
Path :Up to Shop floor control the path is same- Operations-Scheduling –Define scheduling parameters for production orders (Tr code is OPU3)
Select plant :1000 with order type PP01
Select copy as button
Change the plant to BILP
Enter and save
Press enter to save in your request
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
Select copy as button
Change the plant to BILP
Enter and Save
Press enter to save in your request
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
Select copy as button
Change the plant to BILP
Enter
Change the plant to BILP
Enter and save
Press enter to save in your request
END USER AREA
Creation of production order:
Path :Logistics –Production-Shop floor control-Order –Create –with material (Tr code is CO01) Give the material :BILFG1
Production plant :BILP
Planning plant :BILP
Order type :select PP01 Production order
Enter
Give the total Qty under quantities :10
Start date & end date :Today’s date
Select cost order button (Ctrl+F7)
From the menu select Goto Costs –Analysis
Select back arrow
Select release order button (Ctrl+F1)
Save
From the menu select order display note the order no.60003225
Enter
Select assignment tab
Not to the reservation no.66076
Raw material receipt by way of opening stock
Path :Logistics –Materials management –Inventory management –goods movement –Goods receipt –Other (Tr code is MBIC)
Give the movement type :561
Plant :BILP
storage location :HYD
Enter
Give the material no. :BILRM2
Quantity :100 kgs
Select save button or Ctrl+S
From the menu select other goods receipts display
Enter
Select accounting documents button
200121 Inventory RM LCL 15000 BILRM2 BIL1 BSX
100599 Stock taking 15000 BILRM2 GBB BSA BIL1
100*150
Raw material issue to production order:(Tr code is MB1A)
Select to reservation buttonGive the reservation no.66076Enter
QtyBIL RM1 :15 BIL RM2 :15SaveFrom the menu select goods issue displayEnterSelect accounting documents buttonSelect accounting document no.
200121 Inventory RM local 1125 BILRM1BSX BIL1
400000 RM consumption local 1125 BILRM1 GBB VBR BIL1Quantity consumed * Avg rate ( 15 *75)
200121 Inventory RM local 2250 BILRM2 BSX BIL1
GBB VBR400000 RM consumption local 2250 BILRM2 BIL1
Qty consumed * Avg. rate (15*150)
Actual overhead calculation
Path :Accounting –Controlling –Product cost controlling –Cost object controlling –product cost by order –Period end closing –single functions –Overhead –Individual processing (Tr code is KGI2)
Give the order no. :60003225
Period :9
Fiscal year :2008
Select text check box
Select dialog display check box
Execute
Select back arrow
Deselect text run check box
Execute
Work in process calculation
Path :up to single functions the path is same –Work in process –Individual processing –Calculate (Tr code is KKAX)
Give the over no. :60003225
WIP period :9
Fiscal year :2008
Result analysis version :select 0
Select test run check box
Execute
Select back arrow
Deselect test run check box
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)
Give the order no. :60003225
Settlement period :9
Fiscal year :2008
Deselect text run check box
Select check transaction date check box
Execute
Select detail lists button
Select accounting documents button
Select accounting document no.
300201 INC/DEC in stock WIP 3713 P &L Account
200123 Work in Process 3713 Balance Sheet
(Actual RM +Actual RM overheads)
To view work in process report
Path :Accounting –Controlling –Product cost controlling –Cost object controlling –Product cost by order –Information system –Reports for product cost by order –Object list –Order selection (Tr code is S_ALR_87013127)
Plant :BILPMaterial number :BILFG1From period :01 2008To Period :9 2008ExecuteSelect report call button
Confirmation of production orderPath :Logistics –Production –shop floor control –Confirmation –Enter-For operation –time ticket (Tr code is Co11N)
Give the order no. :60003225
Operation /Activity :10 kg
Confirmation type :select final confirmation
Yield to confirm :10 kg
Fro activity 2 to confirm :60 Qty
Unit :H (Hour)
Save
Production receipt
Path :Logistics –Material management –Inventory management –Goods movement –Goods receipt for order (Tr code is MB31)
Give document date :31.12.2008
Posting date :31.12.2008
Give the movement type :101 (Goods receipt for order into ware house)
Order :60003225
Plant :BILP
Storage location :HYD
Enter
Ignore the warning message press enter
Select save button or Ctrl+S
From the menu select goods receipt display
Document no.5000011861
Enter
Select accounting documents button
Select accounting document no.
200122 Inventory FG 2860 BILFG1 BSX BIL2
GBB AUF300200 INC/DEC in stocks FG 2860 BILFG1 BIL2
Qty produced * standard rate 10*286
To make production order technically complete (TECO)
Path :Logistics –Production –shop floor control –Order –Change (Tr code is CO02)
Give the order no.60003225EnterFrom the menu select functions –Restrict processing –Technically completeSave
Calculation of variances
Path :Accounting –Controlling-Product cost controlling –Cost object controlling –Product cost by order - period ending closing –single functions- Variances –Individual processing (Tr code is KKS2)
Give the order no.60003225
Select execute button
Select back arrow
Deselect text run check box
Execute
Double click on variance amount
Open one more session for order display (CO03)
Give the order no.60003225
Enter
From the menu select go to cost analysis
Calculation of work in process (KKAX)
Path :Upto single functions same path –Work in Progress –Individual processing-Calculate
Work in process for Dec
Production for Dec
To calculate WIP once again work in process will be reserved and variances will be settled to
accounts
Give the order no. :60003225
WIP to Period :9
Fiscal year :2008
Result analysis version:0
Deselect text run check box
Execute
Settlement of work in process to accounts :KO88
Give the order no. :60003225
Settlement period :9
Fiscal year :2008
Deselect test run check box
Select check transaction date check box
Execute
Select details list button
Select accounting documents button
Select accounting document no.
GBB AUA
300200 INC/DEC in stocks FG 853 BILFG1 BIL2400201 Production order diff 853 period300201 INC/DEC in stock WIP 3713 P & L debit200123 work in process 3713 –Balance sheet credit