Production Cost Analysis: September 2017

Production Cost Analysis
September 2017
Product Version / LoB: E2E Solution/Solution Capability:
SAP S/4HANA, on-premise 1709 / LoB Finance Management Accounting
Objectives
At the end of this lesson, you will be able to:

 Have an overview of the Production Cost Analysis app
 Understand the overall functionality
© 2016 SAP SE or an SAP affiliate company. All rights reserved. Early Knowledge Transfer Customer 2
Agenda
 Business Context & Benefits

 Application Introduction
Business Context and Benefits
One common view of actual costs

based on the Universal Journal Entry
Product Cost comparison and component

Production Process
Cost analysis based on flexible analysis
Orders Orders
Collectors
key figures
New and improved user

experience
Business Context and Benefits
❖ The centralized cockpit-like approach to viewing KPIs Company

supports variance tracking to identify potential issues. Code
Profit
❖ The improved variance tracking helps you to isolate causes Plant
Center
and ensure costs are being captured correctly in all
processes and orders. Order Type
Order
❖ Additional information helps you to analyze both overall and Status
Order
detailed costs to make sure actual production costs are Orders/
close to target costs. Collectors
Cost
Material Component
s/Groups
Exceptional
Orders
Cost
Cost Details
Comparison
Variance
analysis
Agenda
 Business Context & Benefits

 Application Introduction
Application Brief: Production Cost Analysis(I)
❖ The Production Cost Analysis app enables you to do the following:
Order analysis Cost Component

Group
Exception Cost Component
Status Groups of Orders
Order Cost
Status Components
Overall and
Detailed Cost Cost Details
Exception Rules Definition & Currency Setting
Application Brief: Production Cost Analysis(II)
❖ The Production Cost Analysis app enables you to do the following:
Order analysis Cost Component Group Work Center

• Overall and Detailed Cost • Cost Details • Plan/Actual Costs at Work
• Order Status • Cost Components Center/Operation Level
• Exception Status • Cost Component Groups of • Harmonized plan costs
Orders based on new planning
solution for manufacturing
orders
Flexible navigation and collaboration capabilities
Order Status
Based on Proceeding Business Processes
 The number of open or closed orders is shown on the tile

 A detailed status list is available for each order
Exception Rule Definition
 Any of 15 exception rules can be used with user-defined thresholds based on

absolute and/or percentage values, for example:
❖ Actual Cost vs Target Cost
❖ Actual Cost vs Plan Cost
❖ Actual Quantity vs Plan Quantity
Distinguish and Highlight Exceptional Orders According
to Defined Criteria
 Exceptions, as defined by your exception rules, are highlighted using a quickly

identifiable visual indicator of abnormal order
Order Analysis I
 Overall Cost of Orders

❖ View cost comparisons based on budgeted costs (plan or target) and actual costs
❖ Track variances so that you can find the root cause of these variances and thereby make
appropriate changes to bring costs down, for example, by switching to an alternative machine
material, iterative activity options (external or internal)
Order Analysis II
 Joint Production: Option to include or exclude joint production orders, either

exclusively or inclusively
❖ Cost at Order level
❖ Cost at Order Item level
Analyze Order Cost Detail
 View detailed costs according to account, business transaction, and so on

❖ Switch among different views
❖ Used advanced navigation options
Cost Component Group at Order Level
 Actual costs by Cost Component Groups at order level in the initial view to
analyze cost components and component groups for each order/collector
Cost Component in Cost Detail
 Cost components shown in an order’s Cost Details

 Assignments between Cost Components and Cost Component Groups shown
Work Center View
 Enabled new planning solution (Based on ACDCOP) for manufacturing orders

related Plan Costs
 Reports on Work Center/Operation to help customer analyze production costs at
more detailed responsible area
Lesson Summary
You should now be able to

 Describe the overall functionality of the Production Cost Analysis
app
 Describe the business benefits and several detailed functional
aspects of the app

Production Cost Analysis: September 2017

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Production Cost Analysis

At the end of this lesson, you will be able to:

 Business Context & Benefits

One common view of actual costs

Product Cost comparison and component

New and improved user

❖ The centralized cockpit-like approach to viewing KPIs Company

 Business Context & Benefits

❖ The Production Cost Analysis app enables you to do the following:

Order analysis Cost Component

Exception Rules Definition & Currency Setting

❖ The Production Cost Analysis app enables you to do the following:

Order analysis Cost Component Group Work Center

Flexible navigation and collaboration capabilities

 The number of open or closed orders is shown on the tile

 Any of 15 exception rules can be used with user-defined thresholds based on

 Exceptions, as defined by your exception rules, are highlighted using a quickly

 Overall Cost of Orders

 Joint Production: Option to include or exclude joint production orders, either

 View detailed costs according to account, business transaction, and so on

 Cost components shown in an order’s Cost Details

 Enabled new planning solution (Based on ACDCOP) for manufacturing orders

You should now be able to

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