SAP CO Product Costing

Maintain exchange rate type for M & P for INR to EURO:

M – Average rate

P – Cost planning

Transaction code: OB08

Select new entries button

Exchange rate type: M

Valid from: 01.04.2006

From currency: INR

To currency: EURO

Direct quotation: 0.2

Save

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Exchange rate: P

Valid date: 01.04.2006

From currency: INR to Currency: EURO

Direct quotation: 0-2

Save (or) (ctrl + s)

Creation of G/L account: (FS00)

Production order difference account

Give the G/L account No: 400201

Company code: AML

Select with template button

G/L account No: 400200 (Conversion charges)

Company code: AML

Enter

Change short text & G/L text to: production order differences

Select create/Bank/interest tab

Field status group: G014 (MM Adjustment Accounts)

Save

One more account

G/L Account No: 100599

Company code: AML

Select with template button

 Give G/L account No: 100500 (Outstanding expenses)

Company code: AML

Enter

Change short text & G/L text to: stock taking account

Select create/Bank/interest tab

Field status group: G049 (Manufacturing costs account)

Select control data tab

Deselect open item management check box

Save

Select the G/L account: 300200 (Increase/decrease stock FG)

Company code: AML

Select create/bank/interest tab

Field status group change to: G036

Save

Select edit cost element button

Valid from: 01.04.2006 to 31.12.9999

Enter

Cost element category: select 22 (External settlement)

Save

Assignment of accounts for automatic postings:

Transaction code: OBYC

Double click on PRD (Cost price differences)

Give your chart of accounts: AML

Select valuation modifier check box

Save

Valuation modifier: X

Account Number: 400201

Save

Save in your request

Select back arrow

Double click on GBB

Valuation modifier: X

General modification: AUA

Valuation class AML2

Account No: 300200

Valuation modifier: X

General modification: BSA

Valuation class: AML1

Account: 100599 (Stock taking account)

Save

Save in your request

Define order type dependant parameters:

SPRO à production àshop floor control à master data à order àdefine order type dependant parameters (T. Code: OPL8)

Select order type: PP0K (For plant 1000)

Select copy as button

Give the plant: AMLP

Enter & Save

Define scheduling parameters for production orders:

Up to shop floor control the path is same

Operations à scheduling àdefine scheduling parameter for production orders (T. Code: OPU3)

Select order type: PP01 (for plant 1000)

Select copy as button

Change the plant to AMLP

Enter & Save

Save in your request

Define checking control:

Up to shop floor control the path is same

Operations à availability check àdefines checking control (T. Code: OPJK)

Select order type: PP02 (with business function) &

Order type: PP01 with business function 2 for plant 1000

Select copy as button

Give your plant: AML1

Enter

Once again give your plant: AMLP

Enter & Save

Save in your request

Define confirmation parameters:

Up to shop floor control the path is same

Operations à confirmations àDefine confirmation parameters

Transaction code: OPK4

Select order type: PP010 (for plant 1000)

Select copy as button

Give the plant: AMLP

Enter & Save

Creation of production order:

Path:Logistics àproduction àproduction control à orders à create àwith material (T. Code: COOK)

Give the material no: AMLFG1

Production plant: AMLP

Planning plant: AMLP

Order type: PP01 (Standard production order)

Enter

Total quantity – 10kgs

Start date & Finished date: 10.12.2006

Select cost order button

Ignore the warning messages, enter

From the menu select go to àanalysis

Select back arrow

Select release order button

Save

Note down order No: 60002846

From the menu select order àdisplay
Transaction code: CO03

Enter

Select assignment tab

Note down the reservation number: 17516

AML Raw material to receipt by way of opening stock

Path:Logistics àmaterials management à Inventory management à gods movement àgoods receipt àother (MB1C)

Give the movement type: 561

Plant: AMLP

Storage location: Hyd

Enter

Give the material No: AMLRM2

Give the qty: 100Kgs

Save

From the menu select other goods receipts àdisplay

Enter

Select accounting documents button

Select accounting document number

89 - 200121 – Inventory RM local -10000 – AMLRM2 – AML – BSX

91 – 100599 – Stock taking A/C – 10000 – AMLRM2 – AML – AMLTGBB BSX

10000: Qty & rate as per material master

Goods issued for production order

Path:Logistics àmaterials management à inventory management à goods movement àgoods issue (T. Code: MB1A)

Select to reservation button

Give the reservation number: 17516

Enter

Give actual consumption AMLRM1 – 15kgs

                                         AMLRM2 – 15kgs

Save

From the menu select goods issue àdisplay

Enter

Select accounting documents button

Select accounting document number

Work in process calculation:

Path:Accounting àcontrolling àproduct cost controlling à cost object controlling à product cost by order àperiod end closing à single functions à work in process àindividual processing à calculate (KKAX)

Give the order: 60002845

WIP to period: 9 (December)

Fiscal year: 2006

RA (Result analysis) version: select 0

Select test run check box

Execute

Select back arrow and deselect check run and execute

Settlement of work in process to accounts:

Up to period end closing the path is same

Single functions àsettlement àindividual processing (T. code: K088)

Give the order No: 60002845

Settlement period: 9

Fiscal year: 2006

Select test run check box

Execute

Select back arrow

Deselect test run check box

Execute

Select detail list button

Select accounting documents button

Select accounting document number

50 – 300201 – Inc/Dec in stock WIP – 2625 – P & L A/C

40 – 200123 – Work in process – 2625 – Balance sheet

Actual overhead calculation

Path:up to period end closing the path is same

Single functions àoverhead àindividual processing (KGI2)

Give the order No: 60002845

Period: 9

Fiscal year: 2006

Select test run check box

Select dialog display check box

Execute

Select back arrow

Deselect test run check box

Execute

Confirmation of production order:

Logistics à production àproduction control à confirmation à enter àfor operations àtime ticket (CO11N)

Give the order number: 60002845

Operation: 10

Confirmation type: select final confirmation

Yield: 10kgs

For activity2: give the qty: 60

Unit of measurement: H

Save

Production receipt against production order

Logistics à materials management àinventory management à goods movement à goods receipt àfor order (MB31)

Give the document date & posting date: 21.12.2006

Movement type: 101

Give order No: 60002845

Plant: AMLP

Storage location: Hyd

Enter, ignore the warning message and press enter

Save

From the menu select goods receipt àdisplay

Enter

Select accounting documents button

Select accounting document No

To make order technically complete (IECO)

Logistics à production àproduction control à order à change (CO02)

Give the order No: 60002845

Enter

To close the order from the menu select functions àrestrict processing à technically complete

Save

Assign variance key in material master (MM02)

Give the material No: AMLFG1

Select organization levels button

Plant: AMLP

Enter

Select costing 1 tab

Assign variance key: AML

Save

Calculation of variances:

Up to period end closing the path is same

Single functions àVariances àindividual processing (KKS2)

Give the order: 60002845

Period: 9

Fiscal year: 2006

Select test run check box

Execute

Select back arrow

Deselect run check box

Execute

Open one more session with (T. Code: CO03) (Order display)

Give the order No: 60002845

Enter

From the menu select go to àcosts àanalysis

Calculation of work in process once again for December (KKAX)

Give the order number: 6002845

WIP period: 9

Fiscal year: 2006

RA version: 0

Select test run check box

Execute

Select back arrow

Deselect test run check box

Execute

Settlement of work in process of accounts (K088)

Give the order No: 6002845

Settlement period: 9

Fiscal year: 2006

Select test run check box

Execute

Select back arrow

Deselect test run check box

Execute

Select detailed list button

Select accounting documents button

Select accounting document no

91 – 300200 – Inc/Dec in stock FG1 – 975 – (AMLFG1 – AML2 – GBBAVA

83 – 400201 – Prod. Order difference – 975 – AMLFG1 – AML2 – PRD

40 – 300201 – Inc/Dec in stock WIP – 2625

50 – 200123 – work in process.

THE END

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SAP CO Product Costing

Marking & Releasing

Display material master:

Logistics à materials management àmaterial master àmaterial àdisplay àdisplay current (MM03)

Give the material number: AMLFG1

Press select views button

Select costings2, view

Select organization levels button

Give the plant: AMLP

Enter

Marking, updates future price – 09.2006        Price – 251.25

                                                 -  09.2006Price – 251.25

Release – updates current price – 251.25

Use of marking & Releasing is àfor the next month if the product

Value is increased it is estimated in the current month and applicable in the next month

Path for Marking & Releasing:

Accounting à controlling àproduct cost controlling à product cost planning à material costing àprice update (T. Code: CK24)

Give posting period/fiscal year: 9.2006

Company code: AML

Plant: AMLP

Material: AMLFG1

Select test run check box

Select marking allowance button

Select company code: AML

Give the costing variant: PPC1 (Standard cost estimate)

Save

Select back arrow

Deselect test run check box

Execute

Select: AMLFG1

Select costing2 tab

Select back arrow 2 times

Select release button

Executes

Select: AMLFG1

Select: costing 2 tab

Actual costing: (check costing variants for manufacturing orders)

SPRO à controlling àproduct cost controlling à cost object controlling à product cost by order àmanufacturing orders à check costing variants for manufacturing orders (PP) (T. Code: OPL1)

Select costing variant: PPP1 (Production order plan)

Select details button

Select valuation variant button

Select create button beside valuation variant/plant

Select new entries button

In Plant: AMLP

Save

Save in your request

Select back arrow

Select valuation variant: 006 (with AMLP)

Select details button

Select overhead tab

Costing sheet: Assign AML costing sheet

Save

Select back arrow

Select: Costing variant: PPP2 (Production order actual)

Select details button

Select valuation variant button

Select create button beside valuation variant/plant

Select new entries button

In plant: Give AMLP

Select overhead tab

Save

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Select back arrow

Select: 007 with AMLP

Select details button

Select: AML closing sheet

Save

Define goods received valuation for order delivery:

SPRO à controlling àproduct cost controlling à cost object controlling à product cost by order àdefine goods received valuation for order delivery

Select new entries button

Valuation area: AMLP

Valuation variant: 007 (Production order – Actual)

Save

Save in your request

Define results analysis keys:

SPRO à controlling àproduct cost controlling à cost object controlling à product cost by order àperiod end closing à work in process à define results analysis keys (T. Code: OKG1)

Result analysis key: FERT (WIP calculation for production orders)

Save

Define cost element for WIP calculation:

Same path

Double click on create cost element

Transaction code: KA06

Give the cost element: 1300000 (Secondary cost element)

Valid from: 01.04.2006 to 31.12.9999

Enter

Name: order/project result analysis

Description: order/project result analysis

Cost element category: 31 (Order/project results analysis)

Save

One more cost element: 1300001

Valid from: 01.04.2006 to 31.12.9999

Give the reference cost element: 1300000

Controlling area: AML

Enter & Save

One more cost element: 1300002

Valid from: 01.04.2006 to 31.12.9999

Give the reference cost element: 1300000

Controlling area: AML

Enter & Save

Cost element: 1300003

Valid from: 01.04.2006 to 31.12.9999

Give the reference cost element: 1300000

Controlling area: AML

Enter & Save

Cost element: 1300004

Valid from: 01.04.2006 to 31.12.9999

Give the reference cost element: 1300000

Controlling area: AML

Enter & Save

Creation of 2 G/L accounts: (FS00)

1.      work in process – under current assets, loans & advances

2.      increase/decrease in stocks WIP under increase/decrease of stocks group

Transaction code: FS00

Give the G/L account No: 200123

Company code: AML

Select with template button

Give the G/L account No: 200121 (Inv. Raw material local)

Company code: AML

Enter

Change short text & long text to: work in process

Select create/bank/interest tab

Deselect post automatically check box

Save

Give the G/L account No: 300201

Company code: AML

Select with template button

Give the G/L account No: 300200 (Increase/decrease in stocks)

Company code: AML

Enter

Change short text & long text: Increase/decrease in stocks in WIP

Save

Define results analysis versions:

SPRO à controlling àproduct cost controlling à cost object controlling à product cost by order àperiod and closing à work in process à define results analysis versions

Select new entries button

Select: AML

Technical result analysis cost element: 1300000

Save

Save in your request

Define valuation method: (Actual Costs)

Same path

Select new entries button

Select actual costs button

Give the controlling area: AML

Result analysis version: 0

Result analysis key: FERT

Enter

Save

Save in your request

Define line ID’s:

Same path

Select line ID: ABR, EK, EL, & FK for controlling area 1000

Select copy as button

Give your controlling area: AML for all the 4 items

Enter & Save

Save in your request

Define assignment:

Path:same path

Select EK (Direct costs) for controlling area: 1000

Select copy as button

Give the controlling area: AML

In the masked cost element enter: 00004000 + +

Enter & Save

Save in your request

Select: EL for controlling area: AML

Masked cost element: enter 00003 + + + +

Enter

Select line ID - EK (production costs) for controlling area: 1000

Select copy as button

Give the controlling area: AML

Masked cost element: enter 00004001 + +

Enter

Select the item what we are created

Select copy as button

Give the mask cost element: 00004002 + +

Enter

Select the both items what we are created

Select copy as button

For 1^st one mark cost element give: 00004005 + +

For 2^nd one give mask cost element give: 0001 + + + + + +

Enter & save

Define update:

Path:same path (T. Code: OKGA)

Select new entries button

Give the controlling area: AML

Version: 0

Result analysis key: FERT

Line ID: EF (Direct costs)

Category: Select K (Costs)

Work in process cost element: 1300001

Results: 1300002

Controlling area: AML

Version: 0

Result analysis key: FERT

Line ID: FK (Production costs)

Category: K (Costs)

WIP: 1300003

Results: 1300004

Controlling area: AML

Version: 0

Result analysis key: FERT

Line ID – ABR

Category: A (Settled cost)

Save

Save in your request

Define posting rules: for settling work in process:

Path:same path (T. Code: OKG1)

Select new entries button

Controlling area: AML

Company code: AML

Result analysis version: 0

Result analysis category: WIPR (Work in process with requirement to capitalized)

P&L account: 300201 (Increase/decrease in stock WIP)

Balance sheet account: 200123 (Work in process balance sheet accounts)

Save

Save in your request

Define results analysis versions:

Path: same path (T. Code: OKG9)

Select controlling area: AML

Select details button

Select transfer to financial accounting check box

Select save button (or) (Ctrl + s)

Ignore the message, press enter

Save in your request

Define variance keys:

SPRO à controlling àproduct cost controlling à cost object controlling à product cost by order àperiod end closing à variance calculation à define variance keys (T. Code: OKV1)

Select new entries button

Variance key name: AML

Description key: Variance key for AML

Save, save in your request

Define default variance keys for plants:

Same path

Select position button

Give the plant: AMLP

Enter

For AMLP plant assign variance key: AML

Save

Save in your request

Define target costs versions:

Path:same path

Select target cost version for controlling area: 1000

Select copy as button

Controlling area: AML

Description: Target cost version for AML

Enter & Save

Save in your request

Create allocation structure:

SPRO à controlling àproduct cost controlling à cost object controlling à product cost by order àperiod end closing à settlement à create allocation structure.

Select new entries button

Allocation structure: A4

Text: AML allocation structure for product costing

Save, save in your request

Select: A4 (What we are created)

Double click on assignments folder

Select new entries button

Give the assignment: AML

Text: overheads

Save

Select: AML

Double click on source folder

From cost element: 400000 to cost element 499999

Save

Double click on settlement cost elements folder

Select new entries button

Receiver category: select ord (order)

Settlement cost element: 1000001

Save

Create settlement profile:

Same path

Select new entries button

Settlement profile: AML1

Description: Settlement profile for AML

Select: To be settled radio button

Allocation structure: A4

Select % settlement check box

Select equivalence number check box

Select amount settlement check box

Under valid receivers for order settlement required

Maximum number of distribution: 999

Residence time 12 months

Save

Assign Co number range interval for the process

KZPI (Actual overhead periodic)

RKL (Actual activity allocation)

Transaction code: KANK

Give the controlling area: AML

Select maintain groups’ button

Double click on KZPI

Double click on RKL

Select co document No. range intervals for AML check box

From the menu select edit àAssign element group

Save

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SAP Co Product Costing

Define production scheduler:

SPRO à production àshop floor control à master data à define production scheduler

Select new entries button

Plant: AMLP

Production scheduler: C

Production scheduler name: Mr. C

Save (or) (ctrl + s)

Planning cost centre wise (KP06)

Version: 0

From period: 9 to 9

Fiscal year: 2006

Cost centre: Dept G

Next page

Cost centre: 400100 (Salaries)

Select form based radio button

Select over view screen button

Give plan fixed cost: 720000

Save

Planning for machine hours:

Accounting à controlling àcost centre accounting à planning à activity ad put/prices àchange (KP26)

Version: 0

From period: 9 to period: 9

Year: 2006

Cost centre: Dept G

Activity type: AML

Select form based radio button

Select overview screen button

Give plan activity 72000 (100 machines * 3 shifts * 30 days)

Save

Machine down rate calculation:

Accounting à controlling àcost centre accounting à planning à allocations àprice calculation (KSPI)

Select cost centre group radio button

Give the cost centre: AMLPRODN

Version: 0

From period: 9 to period: 9

Fiscal year: 2006

Execute

Select save button (or) (ctrl + s)

Ignore the message, press enter

Creation of material master: (MM01)

Give the material number: AMLRM2

Industry sector: Mechanical engineering

Material type: Raw material

Press: select use button

Select: Basic data, purchasing, general plant data/storage one, accounting

Select organization levels button

Give the plant: AML

Storage location: Hyd

Enter

Give the description: Raw material

Basic unit of measurement: Kg

Material group: Chem

Select purchasing tab

Purchasing group: AML

Select: Accounting1 tab

Valuation class: AML1

Price control: V

Moving price: 100

Save

Creation of finished goods master (MM01):

Material No: AMLFG1

Industrial sector: Mechanical engineering

Material type: Finished product

Press select views button

Select: Basic data1, MRP1, MRP2, work scheduling, general plant data/storage1, Accounting1, costing1.

Select organization levels button

Plant: AMLP

Storage location: Hyd

Enter

Give the description: Finished product1

Basic unit of measurement: Kg

Select: MRP1 tab

MRP type: select PD (MRP)

MRP controller: Select B (Mr. B)

Lot size: select Ex (Lotfor lot order quantity)

Select MRP2 Tab

In house production: 0 days

Schedule margin key: AML

Select work schedule time tab

Ignore the warning message, enter

Production: Scheduler C

Select accounting1 tab

Valuation class: AML2

Price control: S (Standard)

Give the standard price: 300/-

Select costing1 tab

Overhead group: Select AML

Availability check: Select KP (No check)

Save

Creation of Bill of material:

Logistics à production àmaster data àbills of material à bill of material à material BOM àCreate (CS01)

Give the material No: AMLFG1

Plant: AMLP

BOM usage: Select 1 (Production)

Enter

Give the component

For item 10: AMLRM1;         Qty: 1 Kg

Item 20: AMLRM2;               Qty: 1

Save

Creation of work centre:

Logistics à production àmaster data àwork centers àwork centre àcreate (CR01)

Work centre: Dept G

Work centre category: select 0001 (Machine)

Select basic data button

Give the description: Work centre Dept G

Person responsible: A

Usage, select 009 (All task lists types)

Standard value key: SAP1 (Normal production)

Select costing tab

Start date: 01.04.2006

Cost centre: Dept G

For activity machine: Give the activity type AML

Performance unit: H (Hour)

Formula key: SAP002 (Production machine types)

Save

Creation of routing:

Logistics à Production àmaster data àroutings àroutings àstandard routings à create (CA01)

Give the material No: AMLFG1

Plant: AMLP

Enter

Usage: select1 (Production)

Status: Select 4 (Release (General))

Select operation button

For operation at tab give the work centre: Dept G

Control key: Select PP01 (In house production)

Select operation: 10 and double click

Machine: standard values: 5

Unit: H (hours)

Save    

Creation of cost estimate with quality structure:

Accounting à controlling àproduct cost controlling à product cost planning à material costing àcost estimate with quantity structure à create (T. Code: CK11N)

Give the material: AMLFG

Plant: AMLP

Costing variant: PPC1 (Standard cost estimate)

Enter

Give the costing date from: 08.12.2006 Costing date to 31.12.9999

Qty structure date: 08.12.2006

Valuation date: 08.12.2006

Enter

Standard cost should be: 251.25

Cost sheet

RM – AMLRM1 – 75

       - AMLRM2 - 100

                             ------

                                              175.00

RM overhead 15%                  26.25

Production costs

(5*10) machine hours              50.00

                                               ---------

                                               251.25

From the menu select: Cost àDisplay cost components

Select save button (or) (ctrl + s)

Enter

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