Table of Contents Validation in Accounting document Validations are custom rules to check that FI data entered is correct Validations are defined at company code level Validations can be set at Document header level, Line item level and whole document level. Only one validation per company code can be defined at a call up point. […]
Table of Contents Introduction iDoc is used by companies running on SAP ERP to exchange data with other companies who could be their vendors, customers, banks, Non SAP application processing company data and than feeding it into it’s SAP ERP. An iDoc is a contained which stires information. It is made up of segments. Each
Table of Contents Introduction In this article we will discuss in detail, iDoc functionality, it’s uses, it configuration in SAP, iDoc customizing etc. Some of the key topics covered will be : Configure inbound iDoc in SAP Apply derivations to inbound iDocs Understand content of inbound iDocs Create extended iDocs in SAP Error handling of
Table of Contents SAP Cash Application using Machine Learning Machine learning helps finance and risk teams increase automation and handle exceptions, streamlining business processes and reducing manual errors. As opposed to rules configured in tables — which are often never revisited, even when the business environment changes — machine learning means just that: the system
Table of Contents Introduction In this tutorial we will discuss in detail, iDoc functionality, it’s uses, it configuration in SAP, iDoc customizing etc. Some of the key topics covered will be : Configure outbound iDoc in SAP Apply filters to outbound iDoc Understand contents of outbound iDoc in SAP Configure inbound iDoc in SAP Apply
Table of Contents Payment Medium Workbench PMW has two types of formats Code-based formats – These are formats that are based on ABAP function modules. DMEE Tree – Data Medium Exchange Engine. A transaction that allows for creation of drag and drop file formats using a tree structure. There are two types of files that
Uses of the Treasury Payment Program
People familiar with SAP applications are often familiar with the Accounts Payable (AP) payment program, but not everyone is familiar with the Treasury payment program, although there are features of the Treasury payment program that most companies could use to improve their processes in an SAP system. The Treasury payment program offers a very controlled, best practice process for treasury departments to follow.
Whereas the AP payment program pays AP and accounts receivable (AR) invoices, the Treasury payment program pays payment requests. Payment requests are open items made to the Payment Request Clearing Account, which is a suspense account configured to track Treasury payments. The same Payment Request Clearing Account number should be used across all company codes.
An obvious advantage of using the Treasury payment program is that the accounting entries for Treasury payments are made by the SAP system before the payment is executed at the bank, which is a more controlled and compliance-friendly process. Another advantage is the straight-through processing of the payment, meaning the payment details, such as the routing number and account number, are entered just once and flow through the SAP system before being sent to the banks. A third advantage is to have the system enforce strict controls around Treasury payments.
There are seven types of payments that could be run through the Treasury payment program (F111). They are:
Bank-to-bank transfers
Free form payments
Business partner repetitive code payments
Trade-related payments
In-house cash (IHC) payments
Loans Management (FS CML) payments
Payments to customers and vendors
(Note: When you are making payments to customers and vendors using the Treasury payment program, the customer and vendor bank details are used, but the open invoice is not cleared.)
The IHC payments, payments to customers and vendors using the Treasury payment program, and Loans Management modules are not as frequently used as the other types of payments listed above.
(Note: The functionality described in this article is included in SAP ERP Central Component [SAP ECC], although licensing may be required to use the SAP Treasury and Risk Management module. SAP’s Transaction Manager module tracks Treasury trades through their full life cycle: from trade entry to payments to month-end processing to maturity of the trades. All accounting entries related to the trades are triggered by the trades and are posted directly to the SAP General Ledger. The article also mentions aspects of the SAP Bank Communication Management module, which may also require additional licensing.)
Creating Payment Requests
Repetitive Payments
Repetitive payments are bank-to-bank transfers or payments to a business partner that take place regularly using the same set of payment instructions. There are two types of repetitive payments in the SAP system: bank-to-bank transfers and business partner repetitives. The SAP system uses repetitive codes to process repetitive payments. A repetitive code in the SAP system is a 20-character key that designates a set of payment standing instructions that do not and cannot be changed ad hoc. This includes the sender bank, sender account, recipient bank, recipient account, payment method, and currency. The only details that can be changed when the payment is made are the payment amount, value date, and reference text. There are multiple advantages gained by using repetitive codes in the SAP system. Some of the advantages include increased security, faster entry, and risk mitigation against user error.
Bank-to-Bank Transfers
The most common type of repetitive payment is the bank-to-bank transfer. Bank-to-bank transfers are used to make repetitive payments from one house bank account to another. Both accounts must be defined in the SAP system as house bank accounts. Keep in mind that when the two accounts are in different company codes, this type of repetitive payment creates an intercompany posting document (the payment posting posts to the intercompany due to /due from accounts) posting. (Bank-to-bank transfers can be done between any two accounts as long as the FI configuration has enabled cross-company code postings between the two entities.)
Business Partner Repetitive
Business partner repetitive are repetitive payments made from a house bank account to a business partner bank account.
Before you can execute a bank-to-bank repetitive code or business partner payment, you need to create a repetitive code template. The repetitive code template defines details of the payment that will be executed. The two aspects of the payment that are not included in the repetitive code template are the amount and the value date.
Both bank-to-bank repetitive code and business partner repetitive code templates are created using the Edit Repetitive Codes program (transaction code OT81). After you execute transaction code OT81 or follow menu path Accounting > Financial Accounting > Banks > Master Data > Repetitive codes > Repetitive Codes, the Edit Repetitive Codes screen appears (Figure 1). To create the repetitive code template, enter a value for the sending company code in the Paying CoCd (paying company code) field and enter the name of the house bank in the House bank field.
Figure 1
Create a repetitive code template
Click the create icon
to create a repetitive code template.
The system then displays the pop-up screen shown in Figure 2. To create a business partner repetitive template, select the Central Business Partner radio button. To create a bank-to-bank repetitive code template select the Bank radio button.
Figure 2
Select the type of repetitive code template
For this example, select the Bank radio button and then click the enter icon
. This action displays the screen in Figure 3.
Figure 3
Define a bank-to-bank repetitive code template
In the Repetitive Code field at the top of the screen, enter a name (up to 20 characters) for the repetitive code template. In the Processing Bank Data section, enter details for the house bank account from which the funds will be sent when the repetitive code payment is executed. In the Target Bank section, enter details for the house bank account to which the funds will be sent. In the Bank chain ID field, you can specify an intermediary bank. Enter the payment method and currency of the payment. In the Reference text: field, enter the reference information that should be sent along with the payment. This text typically describes the payment. The Individual pmnt (individual payment) indicator should be selected if you do not want the payment to net with any other payment when you run the Treasury payment program. By selecting the Individual pmnt indicator, the payment is sent as an individual payment.
(Note: When the Treasury payment program is run, it nets payments that have the same value date, source house bank account, target house bank account, payment method, and currency, and that do not have the Individual pmnt indicator set.)]
After you enter the details for the bank-to-bank repetitive code template, click the save icon
. This action displays a pop-up screen similar to the one in Figure 4. Click the enter icon.
Figure 4
Save the bank-to-bank repetitive code template
At this point, you have defined the repetitive code template, but you cannot use it yet. Before you can use it to execute a payment, you must release it. To release the repetitive code template, open the Edit Repetitive Codes screen (see the instructions before Figure 1), select the tab to the left of the repetitive code as shown in Figure 5, and click the release icon
.
Figure 5
Release the repetitive code template
This action displays the pop-up screen shown in Figure 6. Click the enter icon and then click the save icon (Figure 5) to save the release.
Figure 6
Save the release
The Release Status for the repetitive code template now is green, indicating it is available to be used to execute a payment (Figure 7).
Figure 7
Released bank-to-bank repetitive code template
To execute a bank-to-bank repetitive code payment, go to the Fast Entry with Repetitive Codes (Bank-to-Bank Transfer) program (transaction code FRFT_B), follow menu path Accounting > Financial Accounting > Banks > Outgoings > Payments with Repetitive Code > Carry Forward Bank Accounts, and press Enter. (There are no required fields when running this program.) This action displays the screen in Figure 8.
Figure 8
Execute a bank-to-bank payment
Enter the amount of the payment in the field under the Amount paid column. The reference text defaults from the repetitive code definition, but can be changed here. Click the Create Payment Request button to create the payment request. A message showing the payment request number is displayed in the next screen (Figure 9).
Figure 9
Payment request generated
At this point, the payment request is unreleased. If you run the Treasury payment program at this point, the system would not pay the payment request created above because the payment request has not been released. To release the payment request, you need to select the payment request in the lower window then click the Release button at the bottom of the screen, as shown in Figure 10.
Figure 10
Release the payment request
After you click the Release button, the system displays a message similar to the one in Figure 11. Click the enter icon to display the screen shown in Figure 12. At this point, the Treasury payment program can be run.
Figure 11
Payment request has been released.
At this point, the payment request’s status is released, as shown in Figure 12.
Figure 12
Payment request Release Status is updated
(Note: The steps for executing a business partner repetitive code template are the same as when executing a bank-to-bank repetitive payment except that the Fast Entry with Repetitive Codes (Treasury Partner) program (transaction code FRFT_TR) is used. Transaction code FRFT_TR can be found by following SAP menu path Accounting > Financial Accounting > Banks > Outgoings > Payments with Repetitive Code > Payments to Business Partners.)
Free Form Payments
Before moving on to the steps to execute the Treasury payment program, I first describe the steps to execute a free form payment.
A treasury department needs to be able to make urgent payments on an as-needed basis. The SAP system provides this functionality with the free form payments transaction. Treasury staff can make payments from any bank account in any company code configured in the system to any external bank account. These payments, including the bank details, are keyed in manually by a treasury user.
To execute a free form payment, run the Online Payment program found under Accounting > Financial Supply Chain Management > Cash and Liquidity Management > Planning > Generate Payment Request > Using USA Control Program > Online Payment, or execute transaction code RVND. In the initial screen that the system opens, select the Free Form Payment button (not shown). This action displays the screen in Figure 13.
Figure 13
The Free Form Payment screen
Enter the information related to the payment, as shown in Figure 14. In the Payee section, enter the name and bank account information for the beneficiary of the payment. By clicking the address icon
, you can enter an address for the beneficiary (not shown). In the Posting Data section, the debit side of the posting is specified when generating the payment request. In the House Bank section of the Payment Data tab, specify the bank account to be used for payment, and in the Payment Data section, specify the amount and currency of the payment, the payment method, and the value date. In the Reference text: field, enter the reason for payment. This text is sent to the bank along with the payment. When you have entered all your data, click the Payments button. This action displays the screen in Figure 15.
Figure 14
Enter details in the Free Form Payment screen
Figure 15 shows the payment request number created and the FI document number created. Click the enter icon (not shown).
Figure 15
Free form payment request created
Before a free form payment can be paid, a user with the authorization to release free form payments must release it. Approving the free form payment at this point is critical because the bank account details have been entered manually into the SAP system. To release the free form payment, execute transaction code F8REL. (This transaction code is not in the SAP menu.) This action opens the screen in Figure 16.
Figure 16
Release free form payments
Enter the known fields and click the execute icon
. This action displays a pop-up screen with a message (Figure 17).
(Note: With dual control, the user who initiated the payment is not able to release his or her own free form payment.)
Money market transactions are used for short and medium term Investments and for borrowing of funds. Key money market instruments are as listed below:
Fixed term Deposits: A Fixed term deposit is an investment that includes the deposit of money into an account at a financial institution. Term deposit investments usually carry short-term maturities ranging from one month to a few years. Investors can withdraw funds only at the end of term
Commercial Papers: A Commercial paper is an unsecured, short-term debt instrument issued by a companies for the financing of accounts payable and inventories and meet short-term liabilities. Commercial paper is usually issued at a discount from face value and reflects prevailing market interest rates
Deposits at Notice: These investments are similar to fixed term deposit. However, money can be withdrawn only after advance notice period has expired. For e.g. If you have a 50-day notice deposit account, you ca withdraw money only after 50 day withdrawal notice period has expired
Interest rate Instruments: An interest-rate instrument is a derivative where the underlying asset is the right to pay or receive a notional amount of money at a given interest rate. Its value increase / decrease based on movement of the interest rate
We will understand Money Market configuration and business process by configuring a new Fixed Term deposit and Interest Rate instruments. Test various associated business Process. Later we will also configure Intercompany loans in Money Market Instruments
Path: SPRO- Activate business functions – Continue – Enterprise Business functions -Activate below functions
Explanation
Product types help to differentiate between different Money Market financial instruments. In Money Market area, the following product categories are available in standard SAP
We will create new product Type as below
Path: FSCM- TRM – TM – MM – TM – Product Type – Define Product Type
Intercompany Loans- Lender
Intercompany Loans- Borrower
In Calc. Method: This drives day count for interest calculation.
Path: FSCM – TRM – TM – MM – TM – Transaction Type – Define Number Ranges
Explanation: Transaction Type is assigned to a Product Type. Transaction Type define the direction of the Trade. For Lending Company Transaction type will be INV (Investment) for Borrowing Company Transaction type will be BOR (Borrowing)
Path: FSCM – TRM – TM – MM – TM – Transaction Type- Define Transaction Type
Transaction Type for borrowing side as below:
Path: FSCM – TRM – TM – MM – TM – Flow Types- Define Flow Types
Explanation
Flow types represent different types of flows related to interest rate instruments. We will copy from SAP standard Flow types as below to create New Flow Types
We will use the SAP standard flow types as given below:
| s.no. | Flow Type | Description |
| 1105 | Borrowing / Increase | |
| 1110 | Principal Decrease | |
| 1120 | Final repayment LT | |
| 1130 | Installment repayment LT | |
| 1150 | Interest capitalization | |
| 1200 | Nominal interest LT | |
| 1901 | Charges | |
| 1902 | Facility Admin Fee | |
| 2100 | Interest accrual | |
| 2150 | Interest accrual: Reset | |
| 1100 | Principal Increase | |
| N200 | With Holding tax | |
Path: FSCM – TRM – TM – MM – TM – Flow Types- Assign Flow Types to Transaction Types
Two steps performed in this step
Path: SPRO- FSCM – TRM – TM – MM – TM – Update Types – Define Update Types
SAP standard update types have been used as listed below:
| Update Type | Description |
| MM1105+ | Borrowing / Increase |
| MM1100- | Investment / Increase |
| MM1120 + | Investment / Final Repayment |
| MM1120 - | Borrowing / Final Repayment |
| MM1130 + | Investment / Instalment Repayment |
| MM1130 - | Borrowing / Instalment Repayment |
| MM1150 + | Borrowing / Interest Capitalization |
| MM1150 - | Investment / Interest Capitalization |
| MM1200+ | Investment / Nominal Interest |
| MM1200- | Borrowing / Nominal Interest |
| MM1901 +/- | Charges |
| MM1902 +/- | Commission |
| MMN200- | Withholding Tax 1 |
| MMN200+ | Withholding Tax |
| AD1000 | Accrual Revenue |
| AD1001 | Accrual Revenue- Reset |
| AD1002 | Accrual Expense |
| AD1003 | Accrual Expense Reset |
Assign Update Type to Usages
In this step assign direction (Inward / outward flow) to update type
Path: SPRO- FSCM – TRM – TM – MM – TM – Update Types- Assign flow Types to Update Types
Click new entries and enter the below data
Path: SPRO- FSCM – TRM – TM – MM – TM – Condition Types – Define Condition Types
Functionality: condition Types used for Intercompany loans are Fixed Interest rates, Floating interest rates, Final repayment of principal
We will create new condition types by copying SAP standard condition types as per table below:
| SAP STD Cond type | New Cond Type | Cond Type Name | Generated Flow Type | Flow Cat |
| 1120 | 1000 | Final Repayment | PF00 | |
| 1200 | 2000 | Nominal Interest | IN00 | |
| 1210 | 2010 | Interest Rate Adjustment | <BLANK> | |
| 1901 | - | Charges | 1901 | 90-Other Flow |
| 1902 | - | Commissions | 1902 | 90-Other Flow |
Path: SPRO- FSCM – TRM – TM – MM – TM – Condition Types- Assign Condition types to Transaction types
In this step, assign the condition types created in last step to Product Type and Transaction Types created in earlier steps
General Transaction manager configuration, which must be done to use Transaction manager. This is not specific to product type
Path: SPRO – FSCM – TRM – TM – General Settings – Organization – Define Company Code Additional data
Path: SPRO – FSCM – TRM – TM – General Settings – Organization – Define Traders
Path: SPRO – FSCM – TRM – TM – General Settings – Organization- Define User data
Path: SPRO – FSCM – TRM – TM – General Settings – Accounting – Organization – Define Valuation Area
Path: SPRO – FSCM – TRM – TM – General Settings – Accounting – Organization –Define Accounting Codes
Add the company codes involved in intercompany loans as accounting codes
Path: SPRO – FSCM – TRM – TM – General Settings – Accounting – Organization –Assign Accounting codes to valuation Area
Functionality:
Path : SPRO – FSCM – TRM – TM – General Settings – accounting – Settings for Position Management – Define and assign valuation class
Now select the row and make below entries
Select the row and make below entry
Path: SPRO- FSCM – TRM – TM – MM – TM – Assign General Valuation Class
Make the below entries
Functionality: Here you define how the system should handle changes like increase / decrease in principal
Path: FSCM – TRM – TM – general Settings – Accounting –settings for Position Management – Set the Effects of the Update Type on the Position Components
SAP Default
Similarly SAP default for other update types
This Functionality drives how Trades are values at month end. How derived business transactions such as withholding tax are generated
Path: SPRO – FSCM – TRM – TM – General Settings – Accounting – Settings for Position Management – Define Position management procedure
We will use SAP default for Fixed Term deposits
Path: SPRO – FSCM – TRM – TM – General Settings – Accounting – Settings for Position Management- Assign Position Management Procedure
Example of derived business transactions are: realized gain / loss, partial position sales, security account transfers etc.
Path: FSCM – TRM – TM – General Settings – Accounting – Derived Business Transactions – Updates Types - Assign Update Types for Derived Business Transactions
New Entries – Enter the position management procedure created in earlier step – Save
Double Click Position outflow folder in the left panel and add SAP defined update types as shown below:
Using SAP Default position Management:2000
Path: FSCM – TRM – TM – General Settings – Accounting – Derived Business Transactions – Control of processing of Derived Business Transactions
Enter the below data and save
Path
FSCM- TRM – TM - MM – TM – FT – Derived Flows – Define Derivation Procedure and Rules
Inflow assigned to Transaction Type INV to Business Partner
WH Tax on Interest Outflow
Assign to Transaction Type BRO to Business Partner
Can define any number of WH Tax rates here
These have to be assigned to Original flow type 1200 (Nominal Interest) as this flow type is assigned to our product type ICI / ICB
Derived flow type is N200. This is assigned to Update type MMN200+ /-
As in, the above scenario WH Tax is going out, it will be assigned to BP of the borrowing company code. Company code paying the interest
Functionality: With this configuration, if you enter intercompany loan on investing side, SAP automatically creates opposite intercompany loan on the borrowing side
However all subsequent processing should be done to both the loans
SE18-BADI# FTR_MIRROR_DEALS
Path: SPRO – FSCM – TRM – TM – General Settings – Transaction Management – Distribution of Mirror transactions - Maintain Relevant Product types and Transaction Types
Mirror transaction is triggered if below combination of Company Code; Product Type and Transaction type is satisfied
Business Partner of Company code 4000
Path: SPRO – FSCM – TRM – TM – General Settings – Transaction Management – Distribution of Mirror transactions -
Functionality: Here you map incoming and outgoing intercompany transactions using the META Text (ICIICB)
Path: SPRO – FSCM – TRM – TM – General Settings – Transaction Management – Distribution of Mirror transactions -
Enter the below data:
BP of company code AM01
Path: SPRO – FSCM – TRM – TM – General Settings – Transaction Management – Distribution of Mirror transactions -
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Table of Contents Profit Center Accounting Introduction Within SAP ECC, there are several tools available to report and plan profitability. At the company code level, there are various financial statement reporting options like using an income statement to report on periodic profitability at a legal entity basis. Profit center accounting is a tool used for
Path: Production- Shop Floor control – master data – Order – define order type
Tcode: OPJH
Select PP01
Copy SAP standard Production order PP01 as 19PO
Path: Production- Shop Floor control – master data – Order – define order type dependent parameters
Tcode: OPL8
Copy from plant 1000 and Order type PP01. Change Plant to 01M1 and Order type to 19PO
Path: Production- Shop Floor control – operations – scheduling -define scheduling parameters for production orders
Tcode: OPU3
Copy Plant 1000 and Order type PP01 as Plant 01M1 and Order type 19PO
Path: Production- Shop Floor control – operations – confirmation – define confirmation parameters
Tcode: OPK4
Copy Plant 1000 and Order type PP01 as Plant 01M1 and Order type 19PO
Path: Production- Shop Floor control – operations – availability check – define checking control
Tcode: OPJK
Copy Plant 1000 and Order type PP01 as Plant 01M1 and Order type 19PO for business functions 1 and 2
Path: Production – Basic Data – Routing – General Data – Define Material Type assignment
Tcode: OP50
Material Type 02FG and 01SF define in FI-MM
Path: Production – MRP – Plant Parameters – carry out overall maintenance of plant parameters
Tcode: OPPQ
Click on Maintain – Enter plant 01M1 – Click on MRP Controllers
Click on MRP controller – New entries – Enter Plant 01M1 and save
Click on Conversion under maintain planned orders
Click Planned Order and update Production Order to 19PO
Path: Controlling – Product Cost Controlling – Cost Object Controlling – Product Cost by Order – Manufacturing Orders – Check Order Types
Tcode: KOT2
Update Settlement Profile
Update Object Class: Production
Residence Time: 6
Path: Controlling – Product Cost Controlling – Cost Object Controlling – Product Cost by Order – Manufacturing Orders
Update as below:
RA Key: MK14
Costing Variant Plan: 19P
Costing Variant Actual: 19A
Tcode: MM01
Basic Data 1 and 2 view
MRP 1 View (Material Requirement Planning)
MRP 2 View
Back flush:
Accounting 1
Costing 1
Costing 2
Tcode: MM01
Material MK14PORMX created
Create MK14PORMY. Same as MK14PORMX
Material MK14PORMY created
| Finished Goods | Raw material |
| MK14POFGX | MK14PORMX |
| MK14PORMY |
Tcode: CS01 / CS02 / CS03
Create Finished Goods BOM (Bill of Material)
Above BOM => need 2 kg and 3 Kg of Raw material X and Y to manufacture 1 Kg of FG
| Routing | Setup Activity | Machine Activity | Labor Activity | Work Center |
| Operation 10 | 1 | 2 | 3 | WC 1 |
| Operation 20 | 1 | 2 | WC 2 |
Routing is a list of Operations performed on Raw material to convert it into FG. These operations are performed at locations called work centers.
Tcode: CR01
To hide Person responsible field, go to OPFA – Basic Data – P3000-VERAN – Hide
SAP Default
Below screen appears when press enter on earlier screen
Cost center to which operational costs would be booked.
Similarly create work center 2 and WK Center 3: MK14WC2
Work center MK14WC2 in plant 01M1 was created
Tcode: CA01
Click Operations tab and enter below data
Routing was saved with group 50001604 and material MK14POFGX.
Tcode: CK11N
| BOM : CS01 | ||||
| FGX | Kg | |||
| RMX | 2 | |||
| RMY | 3 | |||
| Routing: CA01 | Setup Activity | M/C Activity | Labor Activity | Work Center |
| Operation 10 | 1 | 2 | 3 | WC 1 |
| Operation 20 | 1 | 2 | WC 2 | |
| Std Cost Estimation | ||||
| Raw Material | Kg | Avg Price | Total | |
| RMX | 2 | 300 | 600 | |
| RMY | 3 | 400 | 1200 | |
| Total Price RMX +RMY | 1800 | |||
| Operation 10 (Price from KSBT) | Hours | Rate/Hr/EUR | Total | |
| Setup | 1 | 470 | 470 | |
| Machine | 2 | 294 | 588 | |
| Labor | 3 | 285 | 855 | |
| Total Price OP 10 | 1913 | |||
| Operation 20 | ||||
| Setup | – | |||
| Machine | 1 | 294 | 294 | |
| Labor | 2 | 285 | 570 | |
| Total Price OP 20 | 864 | |||
| OH (Valuation variant : OKKN) | ||||
| MOH | 10% | 1800 | 180 | |
| AOH | 15% | 2777 | 417 | |
| Total OH Price / Kg | 597 | |||
| Standard Cost Estimation for 1 Kg | 5174 |
Create Standard Cost Estimate
Tcode: CK11N
Select for detailed itemized view
Itemized Product Cost
Calculated Value in the excel
| BOM : CS01 | ||||
| FGX | Kg | |||
| RMX | 2 | |||
| RMY | 3 | |||
| Routing: CA01 | Setup Activity | M/C Activity | Labor Activity | Work Center |
| Operation 10 | 1 | 2 | 3 | WC 1 |
| Operation 20 | 1 | 2 | WC 2 | |
| Std Cost Estimation | ||||
| Raw Material | Kg | Avg Price | Total | |
| RMX | 2 | 300 | 600 | |
| RMY | 3 | 400 | 1200 | |
| Total Price RMX +RMY | 1800 | |||
| Operation 10 (Price from KSBT) | Hours | Rate/Hr/EUR | Total | |
| Setup | 1 | 470 | 470 | |
| Machine | 2 | 294 | 588 | |
| Labor | 3 | 285 | 855 | |
| Total Price OP 10 | 1913 | |||
| Operation 20 | ||||
| Setup | – | |||
| Machine | 1 | 294 | 294 | |
| Labor | 2 | 285 | 570 | |
| Total Price OP 20 | 864 | |||
| OH (Valuation variant : OKKN) | ||||
| MOH | 10% | 1800 | 180 | |
| AOH | 15% | 2777 | 417 | |
| Total OH Price / Kg | 597 | |||
| Standard Cost Estimation for 1 Kg | 5174 |
If error add below entries in OBYC – GBB
KSBT
Per Unit price match
| 330101 | Set Up activity cost | 470 |
| 330102 | Machine activity cost | 294 |
| 330103 | Labor activity cost | 285 |
Prl: 1 : Planned Price
Prl 5: Actual Price
OKTZ ( Cost Component Structure to check errors)
If error in log don’t save. Material can be re costed. It cannot be re costed after saving
Transaction code: CK24
| Mark | Standard cost updated as future price in costing tab 2 |
| Release | Future price now becomes current price in costing tab 2 |
| Standard cost updated as standard cost in accounting tab 1 in MM02 |
May have to close MM period in MMPV
Transaction Code: CK13N
Standard Cost Report: S_P99_41000111
| s.no. | Tables | Description |
| 1 | KEKO | Product Costing – Header Data |
| 2 | CKIS | Items Unit Costing/Itemization Product Costing |
We have calculated standard / estimated cost of FG. Now we will create a Production Order and calculate actual cost of FG. Difference between actual cost and Standard / estimated cost will be the variance
Now click Cost Order button. This will calculate the Planned cost of the Production Order. Standard cost is always for 1 unit. Planned cost is for the total production order unit (3 kg in this case). Thus, FC per unit differ between standard cost and planned cost
Click Goto – Cost – Itemization to view the planned cost
Planned cost Material = 2 Kg (BOM) * 3 Kg (Prod Order) = 1800
Planned cost Material OH = 10% OF 1800 (Costing Sheet) = 180
Planned cost activity OH = 15% of total activity cost (268) = 35
COGM / COGS = 3 (Prod Order Qty) * Standard Cost (753.23) = 2259
Standard PO (SAP) created under the number 4500043447
Raw Material Receipt from Vendor: MIGO
MIGO – Display
Raw Material Issued to Production at Moving average price. Check in MM03
Moving average Price MM03
Steps to manufacture finished goods, find actual cost and month end product costing activities