Professional Documents
Culture Documents
Product Costing POC For Training
Product Costing POC For Training
Proof of Concept
Execution Guide
Table of Contents
4.5. Calculation of Planned Activity Prices of Production & service Cost Centers
& Validation of calculated results.............................................................30
5.11 Billing..................................................................................................92
6. Glossary..............................................................................................93
1. Raw Salt
2. Sea Water
Support Departments
1. Accounts,
2. Canteen,
3. Facilities,
4. Security.
Use
The Parameters for Creating Raw Materials Master are defined here.
Procedure
Access the activity using one of the following navigation options:
MM01
Transaction Code
Or
Plant SA(number)
Enter
Press Enter
SPI1 SP11
Material Group
Availability Check KP KP
Tab MRP1
MRP Type PD PD
Lot Size EX(Lot For Lot Order EX(Lot For Lot Order
Quantity) Quantity)
TAB MRP 2
000 000
Sched Margin Key
TAB MRP 3
Tab Forecasting
N N
Forecast Model
Tab Accounting 1
3000 3000
Valuation class
Price Unit 1 1
Use
Procedure
Access the activity using one of the following navigation options:
MM01
Transaction Code
Or
Plant SA(number)
Material 123
SPI1
Material Group
Tab Accounting 1
7920
Valuation class
(Finished Goods)
Price Unit 1
ProductControl
Price Costing S(Standard Price) Page 12 of 96
Proof of Concept
Note: For all other views, enter the details as given in 3.1.1 above.
Use
The Parameters for Creation of BOM are defined here.
Procedure
Access the activity using one of the following navigation options:
CS01
Transaction Code
Press Enter.
QTY 1 2
Go to Menu-Header and enter the base quantity (Quantity to which all component
quantities in a BOM relate.)
Base Quantity 1 Kg
Use
The Parameters for creation of Work Center are defined here.
Procedure
Access the activity using one of the following navigation options:
CR01
Transaction Code
3.5.Creation of Routing
Use
The Parameters for Creation of routing for FG 123 (Purified Brine) are defined here.
Procedure
Access the activity using one of the following navigation options:
CA01
Transaction Code
Material No 123
Plant SA
Press Enter.
Base Qty 10 10
Unit Kg Kg
Machine (ACT1) 10 -
Labour (ACT2) - 40
Unit H H
Use
The Parameters for Planning Cost Element wise data in Cost Centers are defined
here.
Procedure
Access the activity using one of the following navigation options:
KP06
Transaction Code
Layout 1-101
Year 2005
Entries are to be made as per layouts given below for each cost center.
To go to next Dept (i.e. Cost Center) use Black Down Arrow Icon (Third from Top
Left).
The data prepared on excel as shown below needs to be checked with SAP
Report
Cost Center
Group ===> Production Service
Total
Cost Center DISSO REFINA SEC FACILI
===> LVER RY ACTTS CANT UR TIES
Cost Ele.
CE Descrpn
S_ALR_87013611
Transaction Code
Plan Version 0
Execute.
Use
The Parameters for Planning of activities (measurable Output) of Production Cost
Centers are defined here.
Procedure
Access the activity using one of the following navigation options:
KP26
Transaction Code
Version 0
From Period 1
To Period 12
Cost Center *
Activity type *
Entry Free
To go to next Dept (i.e. Cost Center) use Black Down Arrow Icon (Third from Top
Left). Enter the following data:
Use
The parameters for entering Plan Output Values of Service Departments Activities
are defined here.
(Note: Before starting this activity, it is necessary to complete the Cost Element wise
Planning for the relevant service cost centers thru transaction KP06 as explained in
3.1 above.)
Procedure
Access the activity using one of the following navigation options:
KP26
Transaction Code
Version 0
From Period 1
To Period 12
Entry Free
To go to next Dept (i.e. Cost Center) use Black Down Arrow Icon (Third from Top
Left). Once you arrive at the required production cost Center update as below,
Use
The Parameters for Calculation of Planned Activity Prices of Production & Service
Cost Centers are defined here.
Procedure
Access the activity using one of the following navigation options:
KSPI
Transaction Code
Version 0
Period 1 to 12
Go back. The system will ask whether to post these prices. If clicked on Yes, it will
post the prices (even though the report is executed in Test Run).
Similarly, execute the planned price calculation for Service cost Centers.
The Planned prices posted as above should be checked and validated through
transaction KP26. The relevant screen Shots are given below:
Use
The parameters for Planning Consumption of Service Cost Centers Activity Output in
Production Cost Centers are explained here.
Procedure
Access the activity using one of the following navigation options:
KP06
Transaction Code
After you press Enter, system shows, by default, the first layout i.e. 1-101.
Layout 1-102
Year 2005
Click on Overview Screen Icon (on Top Left corner of the screen)
Refinery Facilities 50
Use
Plan Reconciliation is executed to identify and reconcile mismatches, if any, between
Sender CCs Output and Receiver CCs Input.
The procedure for executing Plan reconciliation is explained here.
Procedure
Access the activity using one of the following navigation options:
KPSI
Transaction Code
Year 2005
Execute.
If the Results are correct, then Save it. (System posts the data even if it is executed
in Test Run)
Once these results are posted, system will automatically post the Plan Cost of
Service Cost Centers to Production Cost Center based on the Activity Consumption
planned by them. See the Cost Center Report Screen Shots given below.
NOTE: If there are any differences in Plan Data between the Output of Service Cost
Centers & consumption of Production Cost Centers, it will be reflected in the Plan
Reconciliation Report. If the data is posted after execution of KPSI, system will
automatically adjust the values of output of Service Cost so as to match with
consumption by production cost centers.
Screen Shots relevant for automatic matching of Sender & Receiver Activity
Quantities are given below
Use
The procedure for execution of plan Distribution Cycle is explained here.
After execution of distribution cycle, the sender cost centers cost will be allocated to
receivers cost centers, based on the criteria defined in the cycle. Ideally, the entire
cost of sender cost centre should be distributed to the receivers. In distribution,
sender cost centers cost is allocated to the receivers in the respective cost elements.
Hence, Secondary cost element is not required for distribution.
Procedure
Access the activity using one of the following navigation options:
KSVB
Transaction Code
First execute in Test Run, analyze the results & then execute to post
First execute in Test Run, analyze the results & then execute to post .Click on the
number in sender/receiver column to see the details of distribution. For checking
whether entire cost of Service CC has been distributed to other cost centers, go to
the cost centre report (S_ALR_87013611).
Use
The procedure for entering SKF for executing Plan Assessment Cycle is explained
here.
Procedure
Access the activity using one of the following navigation options:
KP46
Transaction Code
Use
The procedure for execution of plan Assessment Cycle is explained here.
After execution of assessment cycle, the sender cost centers cost will be allocated to
receivers cost centers based on the criteria defined in the cycle. Ideally, the entire
cost of sender cost centre should be distributed to the receivers. In assessment, it is
allocated through a single line item (secondary Cost element) in the receiver cost
centre.
Procedure
Access the activity using one of the following navigation options:
KSUB
Transaction Code
First execute in Test Run, analyze the results & then execute in production run to
post .Click on the number in sender/receiver column to see the details of
assessment.
The result of the assessment cycle is as shown in the screen shot below. For
verification of the resultant output, go to the cost centre report (S_ALR_87013611).
Use
The Parameters for updating the planned RM/PM purchase prices in Material Master
are defined here.
Prerequisites
1. For all the RM/PM codes, planned purchase prices should be available from
Purchase Department. These planned prices should be with reference to price
unit in Accounting 1 view of the Material master of the respective material.
Click on Valuation variant and view the pricing strategy for materials.
Procedure
Access the activity using one of the following navigation options:
MM02
Transaction Code
Go to Costing 2 View of the material master and put the price in the planned price 3
field. Date should be first date of the year for which plan is to be prepared.
Save it & do the same for other raw materials. When the number of RM/PM is large,
in that case we can use LSMW for mass upload. However, LSMW needs to be
created.
Use
The Parameters for running & saving the Cost estimate for the material are defined
here.
The cost estimate determines what costs go into the standard price for the material.
Only those cost components, that are flagged as relevant for stock valuation, are
included in the standard price. A material cost estimate is used to calculate the
standard price which will be updated in the material master record.
Procedure
Access the activity using one of the following navigation options:
CK11n
Transaction Code
Plant SA
Costing Version 1
Give the Costing dates, Qty Structure date & Valuation Date & press enter
Check the Standard Cost estimate results and verify it with the desired
result. Then Save it by clicking on the save icon.
The cost estimate must be executed with a costing variant (made for the specific
purpose like Annual Planning, Inventory Valuation, and Current Costing etc.) and
saved.
Once it is released thru transaction CK24, it will be updated in the Master record of
the FG/ SFG. Transaction CK24 is explained below.
Use
The Parameters for Marking & release of the standard Cost estimate for the material
are explained here.
Once the standard cost estimate is released, the standard price will appear in the
Accounting 1 & Costing 2 view of Material Master. To view the cost component
structure, double click on the current period field.
Procedure
Access the activity using one of the following navigation options:
CK24
Transaction Code
First click on marking allowance to allow release of standard cost for the current
period. This is to be done only once at the beginning of the period.
Give the material number and execute in test run first. Check it & mark. It will show
the future price calculated.
Now go back and click on release. Following screen shot shows the released standard
cost estimate.
Check and save it. Cross check the updated price in the material master as shown in
the screen shot below.
(Note: Please consider the values shown in the screen shot as only the reference
values. Do not cross check the same with the desired output. The purpose is to show
the flow of activities.)
Use
The Parameters for Purchase of Raw Materials are defined here.
Procedure
Access the activity using one of the following navigation options:
ME21N
Transaction Code
Vendor 200000
Material 116
PO Quantity 10 KG
Net Price 18
Material 120
PO Quantity 5L
Plant SA
Net Price 2
Press Enter.
Now Confirm the Net Price entered is same as displayed, else re-enter.
Press Enter
Save
Goods Receipt
Use
The Parameters for Goods Receipt of Raw Materials are defined here.
Procedure
Press enter
Press Enter
Save
Use
The Parameters for Creation of Production Order are defined here.
Procedure
Access the activity using one of the following navigation options:
CO01
Transaction Code
Production Plant SA
Total qty 10
Scheduling
Check all the tabs on the main screen of the production order & save.
Use
The Parameters for Goods Issue to Production Order are defined here.
Procedure
Access the activity using one of the following navigation options:
MB1A
Transaction Code
Plant SA(number)
Use
The Parameters for Confirmation of Quantity & Activity for operations to Production
Order are defined here.
Procedure
Access the activity using one of the following navigation options:
CO11N
Transaction Code
CO11N
Transaction Code
Activity Confirmation
Machine 2 H
Labor 1H
Check the actual cost debited to the production order in the Cost Report.
Use
The Parameters for Creation of Production Order is defined here.
Procedure
Access the activity using one of the following navigation options:
MB31
Transaction Code
Go to the Production order cost report and see the cost analysis
Use
The Parameters for Creation of Sales Order are defined here.
Procedure
Access the activity using one of the following navigation options:
VA01
Transaction Code
Sold to party 48
Item 0010
Press Enter. Select the Line item & go to Item conditions for Pricing
Use
Procedure
Access the activity using one of the following navigation options:
VL01N
Transaction Code
Use
The Parameters for Picking of goods & Post Good issue are defined here.
Procedure
Access the activity using one of the following navigation options:
VL02N
Transaction Code
Click on Post goods issue. The message will be displayed for Outbound Delivery
Saved.
Billing
Use
The Parameters for Creation of Billing Document (i.e. Invoice) are defined here.
Procedure
Access the activity using one of the following navigation options:
VF01
Transaction Code
Save the document & check the messages. If any errors are there, correct the same
& then Save. It will generate the Billing Document & also post the same in FI (i.e.
release of invoice to accounts).
6. Glossary
Period-end closing
entries
Issue of Material to
Material Consumption A/c (P&L) Dr.
Production
To Material Inventory A/c
(to Process Order)