SAP Controlling

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

Production Planning Settings

Define PP Order Type

Path: Production- Shop Floor control – master data – Order – define order type

Tcode: OPJH

Select PP01

Copy SAP standard Production order PP01 as 19PO

Define Order Type Dependent Parameters

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

Define Scheduling Parameters for Production Order

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

Define Confirmation Parameters

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

Define Checking control

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

Define Material Type assignment

Path: Production – Basic Data – Routing – General Data – Define Material Type assignment

Tcode: OP50

Material Type 02FG and 01SF define in FI-MM

Maintain Overall Plant Parameters

Path: Production – MRP – Plant Parameters – carry out overall maintenance of plant parameters

Tcode: OPPQ

Copy Plant 1000 to Plant 01M1

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

Integration between CO and PP

Check Order Type

Path: Controlling – Product Cost Controlling – Cost Object Controlling – Product Cost by Order – Manufacturing Orders – Check Order Types

Tcode: KOT2

Update your order type 19PO as below

Update Settlement Profile

Update Object Class: Production

Residence Time: 6

Define Cost Accounting relevant default values for order type

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

End User Steps

Create Finished Goods Material Master

Tcode: MM01

Basic Data 1 and 2 view

• Required for all material types
• Fields: Base Unit of Measure, Material Group, X-Plant Status, Prod Hierarchy

MRP 1 View (Material Requirement Planning)

• MRP Type: ND (No Planning)
• Procurement Type: X (Both Internal and External)
• Storage Location: FG
• Availability Check: KP (No Check)

MRP 2 View

Back flush:

1. Always Back flush
2. Work Center decides

Accounting 1

• Valuation Class: Determine GL account posted
• Price Control
  • S: Standard cost. Used for FG
  • V: Moving average price. Used for Raw Material
• Price Unit: Cost per Unit ( Units specified here)

Costing 1

• With Qty Structure: Selected for material costed with BOM + Routing
• Material Origin: Select to display Material Number in controlling reports
• Variance Key: Specify the one created earlier.
• Costing Lot size

Costing 2

• Future Price: Current market price
• Current Price: Current Release Price

• 1. 
     Create Raw Material Master

Tcode: MM01

Material MK14PORMX created

Create MK14PORMY. Same as MK14PORMX

Material MK14PORMY created

Create BOM

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

Routing is a list of Operations performed on Raw material to convert it into FG. These operations are performed at locations called work centers.

Create Work Center

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

Create Routing

Tcode: CA01

Click Operations tab and enter below data

• Control Key PP01: SAP standard for In House Production. Populated from work center
• Base Unit 1: Quantity of finished goods (MK14POFGX) that will be produced by applying these operations in the work center
• MK14WC1: Work Center 1. Will perform 1 hour of Setup activity, 2 hour of Machine activity and 3 hours of labor to produce one unit of FG
• Similarly, for MK14WC2 and MK14WC3

Routing was saved with group 50001604 and material MK14POFGX.

Create Standard Cost

Tcode: CK11N

Create Standard Cost Estimate

Tcode: CK11N

Select for detailed itemized view

Itemized Product Cost

Calculated Value in the excel

If error add below entries in OBYC – GBB

KSBT

Per Unit price match

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

Mark and Release Standard Cost Estimation

Transaction code: CK24

May have to close MM period in MMPV

Display Standard cost with cost component structure

Transaction Code: CK13N

Standard Cost Report: S_P99_41000111

Standard Cost Report: S_P99_41000111

Product Costing Tables

Product Costing – Actual Cost

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

Create Production Order: CO01

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

Create Purchase Order for Raw Material: ME21N

Standard PO (SAP) created under the number 4500043447

Raw Material Receipt from Vendor: MIGO

MIGO – Display

Issue Raw Material to Production Order: MIGO

Raw Material Issued to Production at Moving average price. Check in MM03

Moving average Price MM03

Go to Operations and confirm actual hours spent on converting Raw Material to FG: CO11N

• Display Standard cost estimate: CK13N
• We have calculated Standard cost / Estimated cost of the finished product. Now we will manufacture finished good and calculate its actual cost. Then find variances between standard cost and actual cost

Steps to manufacture finished goods, find actual cost and month end product costing activities

1. Create Production Order to manufacture FG: CO01
2. When Production is saved Planned cost of FG is calculated in the production order. Now standard cost is always for 1 kg of material. Planned cost is for the total Production order material which can be 2 kg or more. There is difference between Standard cost and Planned cost due to fixed cost being same in both

Table of Contents Product Costing Concepts Find Cost which are part of Product Cost (COGM) Find optimum Lot size for manufacturing the product Find Product cost for each manufacturing location / Plant In Product costing we estimate the product cost. Product cost estimate is also known as standard product cost Various techniques used to calculate

Table of Contents Report Painter Create Own Layout using Report Painter Create Planning Layout: KP65 Click Create – Click Lead Column-Select Cost Center- Click Lead column – Select Characteristic Value and Name Second Lead column – Click New Lead column- Select Cost Element Total Plan Cost Column : Values are not entered in Lead column.

Table of Contents Controlling Overview Controlling modules provide information to management for planning, reporting and monitoring of business operations. Controlling and Finance are independent modules in SAP. Data flows between Finance and Controlling module on real time basis. Cost Element provides the integration point between Controlling and Finance. A cost element can be an expense

Cost Center Manual Reposting
This is used to move actual amount and quantity from one cost center to another cost center. It is used to correct incorrect actual postings to cost centers

Controlling Business Transaction for Manual reposting is RKU1. Add to number range group in transaction code KANK

Cost Center Report# S_ALR_87013611

Run for Cost Center#3301002

Repost the Rent amount from Cost Center3301002 to Cost Center#3301001

Transaction code : KB11N