Period Base Plan Activities CO Module

Plan Activities CO Module:

2.1Plan activity quantity for all production and PM cost centers: KP26. This transaction is Activity Type Planning so, we do planning for each activity either if its a PM activity or Production activity through this t-code.

Through this transaction you have to enter the plan hours for each activity for each cost center either its a PM related cost center or Production cost center. First, enter the required period (Fiscal year & Month),the codes of required cost centers (in this case the PM related cost centers) and the activity types. N.B. The version used in all CO module is 0.

Through this screen you have to enter the planning hours for each activity related to the required cost center.

2.2 Cost Element Activity Planning: KP06 This transaction is used for Cost Element Planning using cost centers. For each cost center you have to enter the plan value for each cost elements affecting this cost center.

Do this activity on the level of company general cost centers. Enter the required period, fiscal year, cost center, and the required cost element/s.

For each cost element you have to enter the plan quantity related to the required cost center.

This value will be distributed - according to distribution cycle rule on the general cost centers related to the plants of the required company code. In case of Elaraby Air Conditioning Company as an example: FI module has to enter the salaries of all employees related to the production department in all plants using general manufacturing A/C cost center number: 30507001. CO module through the distribution cycle level 1 will distribute this value on the 3 plants general manufacturing cost centers which are: 30504001: General Manufacturing A/C Plant. 30505001: General Manufacturing Plastic Plant. 30506001: General Manufacturing Oil Radiator Plant.

2.3 Statistical Key Figure Planning: KP46 Statistical Key Figures are the cost drivers for cost elements from accounting point of view. From SAP point of view they are used as the basis (tracing factors) for making allocations (assessments/distributions). They are the statistical data such as number of employees, area in square meter, electricity in KWH, water in Liters, etc.

In the following selection screen you have to enter the required period, fiscal year production cost centers and SKF code to be used as a base for distributing through the required cost centers.

The example shown here is the salaries (SAL001) SFK, and the cost centers are the production ones related to Home Industries Co. and the number in front of each cost center is the number of employees related to this production cost center.

To enter SKF for A/C Company as an example: SKF : SAL001 which is the salaries related SFK. Level 1: you will use the 3 general manufacturing cost centers as receivers and the number of employees in each plant as SKF ratio.

Level 2: you will use the production cost centers for each plant individually as receivers and the number of employees of each production cost center as SKF ratio.

You notice that the total number of employees for A/C production cost centers must be the same as the number of employees entered in level 1 (=320 for example). Level 3: you will distribute from production service cost centers to the production cost centers so you dont need to re-enter the SKF related to this level because the system will use the same values entered before in level 2.

2.4 Execute Plan Distribution Cycle KSVB Run this transaction for the 3 levels of distribution each level at a time and do it fist as test run if any error occurs stop and fix this error before running it as an update run.

For each company we have 3 levels of distribution: 1- From company general manufacturing cost center to the plants general manufacturing cost centers. 2- From plant general manufacturing cost center to the plant related production cost centers. 3- From production service cost centers to production cost centers.

2.5 Cost Planning : Depreciation S_ALR_87099918 This transaction will calculate depreciation values for production cost centers and use these values as plan values will affect the plan price of the machine activity.

For actual depreciation it will be calculated from FI module and will affect the production cost centers and machine activity once calculated. You have to be sure that the actual depreciation has been calculated before starting any step in the CO Actual Activity Price Calculation.

2.6 Plan Cost Splitting KSS4 (PM Cost Centers) Do this activity for only PM cost centers (for ex. 30302005,30302006 for A/C Plant).

From this selection screen you have to enter the required range of cost centers if they are in sequence, the name of the required cost center group or run this transaction for all cost centers (not recommended). Also, you have to enter the required period and fiscal year.

Run this transaction first as Test Run, and if no errors change it to Update Run.

This transaction will collect the plan values of cost elements related to each activity.

As a result of cost splitting the total plan value for activity 68203 which is electrical maintenance is 12703.16 EGP. And the total plan value for activity 68204 which is mechanical maintenance is 21144.68 EGP.

2.7 Execute Plan Price Calculation KSPI (PM Cost Centers) This transaction will calculate the plan price for each activity depending on the cost splitting made in the previous step.

The selection screen contains the cost center group or all cost centers (not recommended), also you have to enter the required period and fiscal year. Run this transaction for PM cost centers group only.

You have to run it first as Test Run and if no errors you can go for Update Run.

The system will divide the total value previously calculated for each activity through cost splitting step t-code KSS4 and divide this value by the total plan hours entered for this activity through t-code KP26 to calculate the price of one hour of each activity.

From the previous screen we notice that the system calculate the plan price for each activity for each plant according to the plan quantities entered for each activity.

2.8 Plan Cost Splitting KSS4 (Production Cost Centers) Do this activity for only production cost centers (for ex. 30302009,30302043 for A/C Plant).

Dont remove Test Run before checking that there is no error.

2.9 Execute Plan Price Calculation KSPI (Production Cost Centers) Run this transaction for all production cost centers (for A/C plant you can use group D3008, for Plastic use D3009, for Oil Radiator use D3010)

Dont remove Test Run before making sure that no error and then you can go for Update Run. You have to re-run steps from 1.6 to 1.9 for each plant in your company.

Month End Closing CO Module

3- Month End Closing CO Module:

3.1 Prerequisites: 1- Before starting month end closing activities from CO side, kindly get final confirmation from all other modules. 1- Make sure that all month end activities have been done from their respective modules otherwise dont start before getting this confirmation. 3- Make sure that the status of all Pm orders and Production orders are marked as TECO.

3.2 Do analysis of cost center report for all of your cost centers S_ALR_87013611 Actual/Plan/Variance.

3.3 Enter Manual Reposting For Primary Costs KB11N. Use this transaction to do manual allocation from general manufacturing cost center to any production cost center or to correct any posting error.

Be sure that you are entering dates belong to the required period.

3.4 Enter Actual Statistical Key Figures KB31N Enter the receivers ratio for SKF against receivers production cost centers for all distribution cycle (for all 3 levels).

Each level must have its own document since it has its own receivers.

3.5 Execute Actual Distribution KSV5 Run this transaction for level 1 and level 2 individually.

Use Test Run first and make sure that there are no errors and ensure that all relevant cost is moved from sender cost centers to receiver cost centers. At this point you can go for Update Run. Repeat the above step for level 2.

3.6 Actual Cost Splitting KSS2 Run this activity for PM related cost centers and activities.

Dont go for Update Run before ensuring that there is no error.

3.7 Execute Actual Price Calculation KSII By running this transaction for related PM cost centers only you will get the actual activity prices for PM related activity types.

3.8 Revaluation at Actual Prices KON2 - PM Orders Execute this transaction to calculate actual activity price for each PM order for each plant. Use selection variant related to the required plant (ex.:AC001 for A/C plant).

Dont go for Update Run before making sure that no errors in the Test Run.

3.9 Variance Calculation KKS2 Run this transaction only for PM orders for the required Plant.

Run this transaction for the required period as Test Run first with detail list to check the data, then if no errors go for Update Run. This transaction runs for all orders (Collective). To run for a single order use transaction KKS2 (individual processing).

3.10 Settlement of PM Orders KO8G PM Orders This transaction will settle all PM orders to cost centers related to each order, so after running it you have to check that receiver cost centers are coming correct or not.

This transaction runs for all PM orders for a certain period.

If you want to run for specific order you can use transaction KO88.

3.11 Execute Actual Distribution KSV5 Run this transaction for level 3 of the required plant which will distribute from service cost centers to production cost centers. Sender: Service Cost Centers. Receivers: Production Cost Centers.

This cycle has to be run as Test Run first to be sure that all senders cost centers values are moved to the receivers cost centers and all SKFs used in the cycle and distributed according to the values already entered before in KB31N.

After making sure that everything is OK you can go for Update Run.

3.12 Actual Cost Splitting KSS2 This transaction splits all costs already entered from FI system to the related activities (machine and labor).

This transaction must be run for all production cost centers related to a specific plant (ex. From: 30302009 to: 30302043 for A/C Plant).

After making sure that everything is OK go for Update Run.

3.13 Actual Price Calculation KSII This transaction will calculate the actual activity price for production related activity types.

It has to be run for only production cost centers of each plant. (From: 30302009 To: 30302043 for Plant AM00 as an example).

You have to use the relevant cost center group according to each plant. Go for Test run first and if no errors switch to Update Run.

3.14 Revaluation at Actual Prices CON2 This transaction will update the activity prices for production orders in the required period.

This transaction is a collective one which means that it will evaluate the activity prices for all production orders during specific period for a specific plant.

To revaluate at actual prices for a certain production order use transaction code MFN1. You have to run this transaction in the Test Mode first then after testing all results and making sure that all activity prices are correct you can go for Update Run.

3.15 Analyze Production Order Cost CO03 You have to go for some production orders and check the activities prices after revaluating the activity prices. This step is only to be sure that all data is OK.

From this screen go for GOTO Tab and select Costs

From this report you can check the order status weather released, delivered or even technically completed and also check prices of Raw Material at Goods Issue, prices of all activities on the operation level, and the price of Goods Receipt for the Finished Product of this order.

3.16 Calculate Work in Process Collective Process KKAO Through this transaction you can calculate work in process at the period end for all production orders in this period.

You have to select the required period and fiscal year, also select all other fields like as in the next screen. This transaction is related to those production orders which are their status are not Technically Completed (TECO). Dont go for Update Run before testing all results through Test Run and making sure that no errors found.

To calculate WIP for individual production order use transaction KKAX.

3.17 Variance Calculation Collective Processing KKS1 This step is very important before settling production orders. Variance calculation provides you with detailed cost information on products or manufacturing orders. The variance calculation function determines the difference between the actual costs debited to the object and the credit from goods receipts (total variance).

You have to run this transaction for a specific period and specific plant for only production orders.

To calculate variance for a specific production order use KKS2

3.18 Settlement Collective Processing CO88 This is the most important step in the period end closing cycle. During the production process the production orders are debited with actual costs. Each time goods are received into inventory; the system valuates the receipt and credits the production order accordingly. The actual costs posted to an order can be more or less than the value with which an order was credited when the goods receipt was posted. When you settle, this difference between the debit and credit of the order is transferred to Financial Accounting (FI). Settlement also feeds data from Cost Object Controlling to other components. The following can happen during the settlement process:

The order balance can be reduced to zero by transferring to Financial Accounting (FI) the difference between the preliminary inventory valuation (goods receipt) and the actual costs incurred. The total variance can be transferred to profitability segments in Profitability Analysis (CO-PA). This enables you to see an additional contribution margin in CO-PA.

To do settlement for individual order use transaction KO88

3.19 Close Production Orders Collective Processing CORM This step is very important to be sure that no one can change in production orders after settlement. This transaction has to be run once at the end of each period after making sure that all orders have been settled.

To close a specific production order use transaction CO02

Then go to Functions Tab and select Restrict Processing then Close as shown in the following screen.

But you have to make sure that this order is technically completed and fully settled before closing it.

Information System CO Module

4-Information System-CO Module:

Through the following part we will illustrate the T-Codes which help you to analyze data related to CO module. Some of these reports related to other modules which affect CO data like FI module, PP module, MM module and so on. For all reports use F4 to display data of a certain field if available. For all reports use F8 to execute the report or press on the watch icon.

4.1 Cost Element Display KA03 This transaction displays the master data of a certain cost element.

You have to enter the cost element number if you know it, otherwise you can use F4 to display all cost elements and select the one you want. Cost Element Category =1 -- Primary Cost Element

4.2 Cost Element Group Display KAH3 This transaction display the cost elements related to specific cost element group.

F4 can be used to display all cost elements group and select the one you want.

After pressing Enter from this screen all cost elements groups will be displayed and you can select one of them.

After selecting the required group the cost elements related to this group is displayed by number and description of each element.

4.3 Cost Center Display KS03 This transaction displays the master data of a certain cost center.

By pressing F4 the following selection screen will appear and you can select cost center related to specific company with specific category.

4.4 Cost Center Group Display KSH3 This transaction displays the structure of certain cost center group.

To display all cost center groups and select one of them to be shown press F4.

4.5 Statistical Key Figure (SKF) Display KK03 This transaction displays the master data of a specific SKF.

The master data of SKF which is for Electricity appears in the following screen:

The fields of this screen are: SFK Code: ELE001 its already defined by user through create SKF. SKF Name: the description of this SKF. SKF UM: the unit of measure for this SKF which is KWH. SKF Category: in all our defined SKFs we use Total values which means that we have to enter the ratio of the SKF each period.

4.6 Statistical Key Figure Group (SKF) Display KBH3 This transaction displays the contents of SKF group.

Each SKF group may contain one or more SKF codes; we use these groups mainly in the distribution cycles. The elements of the group must have the same unit of measure.

4.7 Work Center Display CR03 This transaction display the master data of work centers referenced to the related plant.

The CO related part in this screen is the COSTING tab.

Through this screen we can see the cost center related to this work center and the activities defined for this work center. In general, for all work centers defined in ELARABY Group we define only two activities which are: Machine Activity Type & Labor Activity Type.

4.8 Cost Center Plan/Actual/Variance S_ALR_87013611 This transaction displays the plan, actual and variance related to a cost center in certain period.

You can select certain cost center, a certain group of cost centers or range of them.

4.9 Order Information System COOIS This transaction can be considered one of the important transactions which facilitate the analysis of production orders by many ways. You can display all production orders related to specific plant, material, start date, or end date and so many other options in this report.

You can display production orders as one line for each order by using Order Headers. You can display all materials issued for specific orders in certain period by using Components. You can display all confirmations related to certain production orders by using Confirmations which displays the quantities and activities confirmed and yield quantities for each operation. You can display for each order the quantity of it, scrapped quantity and GR quantity by using Items.

To display Order Headers

Enter the required plant and range of starting and finishing dates and any other data required.

4.10 Orders: Plan/Actual/Variance S_ALR_87012993 Through this report you can get the totals of all expenses related to a certain order or group of orders during period. This data contains the activities of the order and all consumptions related to it.

You have to enter the required period (from, to) and the range of orders numbers related to this period as follows:

When executing this report the following screen will appear:

This report displays the total values of all activities and consumptions for the range of orders entered in the selection screen. To display each order individually press on the arrow appears at the left side of the screen beside Order Group, at this time all orders numbers in the range will appear.

By pressing on any order the data of this one will be displayed on the screen as follows:

If the balance of the order equals ZERO this means that this order is fully settled without any error, otherwise the order may have some problems and you have to analyze this error and fix it.

4.11 Orders by Cost Elements S_ALR_87012996 This report displays all expenses for an order/group of orders during a period ordered by the cost element. Through this report you can make a tour between all related modules PP, MM & FI to display all data related to the selected orders. Through the following screens we will tell you how to make this tour.

The selection screen of this report contains the required period, number range of orders during this period, and we can display this report for certain cost elements as follows:

After pressing F8 to execute this report the system displays the following screen:

If you doubled click on any line item in the report the following window will appear:

Through this window you can inquire about all data related to the selected orders.

Orders: Actual Periods will display the actual cost of the order during the period.

Orders: Plan Periods will display the total plan values for the selected order during the selected period.

Actual Line Items of Order will display the actual line item from FI point of view for the selected order during the selected period for the specified cost element.

From this screen you can display the details of the Confirmation data of this production order by pressing Document (if its an activity otherwise it will display the FI document if its a cost element). Also, you can display the master data of this Cost Element by pressing Master Record. And also you can change the layout of this report.

Orders: Breakdown by Partner will display the line items of the specified line either its an activity or cost element. The following screen displays the breakdown of a cost element.

Master Data List of Orders this option will display the master data of the specified order.

By pressing the Order Master Data from this screen you can go for the order master data as entered from PP.

If you doubled click on the Material field in the previous screen you can display the master data of this material.

The following screen will appear after doubling click on the Material.

Through this screen you can display all master data related to the material of the selected order.