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Product Costing Material Ledger PPT 20284327 PDF
Product Costing Material Ledger PPT 20284327 PDF
Product Costing Material Ledger PPT 20284327 PDF
Ledger
Costing Methodology
Material Master
Price Control
Standard Price
(S-Price)
- Constant
- Recommended for all material
types
Costing Methodology
Qty
100
200
200
50
Stk. Val
100
300
400
100
Stock
1.
100
2.
200
100
GR/IR Account
300 4.
Consumption
4.
300
V price
1.00
1.50
2.00
2.00
3.
200
200 2.
Vendor
300
3.
Stock
100
200
50
50
Stock Value
100
300
75
125
V Price
1.00
1.50
1.50
2.50
Stock
1.
100
2.
200
4.
50
3.
GR/IR account
225
4.
Consumption
Price difference
4.
50
3.
225
200
200 2.
Vendor
300
4.
Disadvantages:
Only recommended for raw materials or goods procured externally (realtime price for goods receipt known)
Stock Value
Standard Price
100
400
4.00
200
400
4.00
200
400
4.00
Opening stock:
Stock
1
400
400
GR/IR account
3
Price difference
2
100
50
500
500
Vendor
3
450
Costing Methodology
Standard w/ ML
Intermediates
Standard w/ ML
Raw Material
Packaging
Valuation Area
Manufacturing Cost
Quality
CCA
COCCA
MM: RM
Labour
CCA
BOM
Steam
CCA
Actv
Routing
Production
orders
Actv
Production
Cost Center
COPC
Actv
VAR.
VAR..
.
COPA
F. Goods
Inventory
Process Order
BOM
Raw Matl 1
Raw Matl 2
Pkg Matl
Routing
PA
(Profitability Analysis)
(Activity Types)
Mach. Hrs.
or
lbs.
Produced
Lab tests
Setup Hrs.
Routing
Mach. Hr. Costs
Lab Tests Costs
Mach. Setup Costs
Fixed & Variable Cost
Three Views Available:
1. Cost Component
2. Cost Element
3. Cost Itemization
Costs to Produce
Product testing costs
Change Over costs
(setup costs)
Fixed & Variable Cost
Adjust costing
master data/
parameters
Execute costing
run
Not OK
Overhead
cost
planning
completed
Plan prices
of raw
materials
were
entered
Standard
Cost
Calculated
Review
for
Yes
Approval
OK
Mark Standard
Cost Estimate
Automatic
Release
of
Standard Price
Standard
price hase
been
released
Cost
estimate
has been
released
Manufacturi
ng order
has been
released
Cost object
has been
created
Simultaneous
Yes
Costing
Product cost
are
allocated
Product
cost are
allocated
Revaluation
activity types at
actual prices
Calculation of
WIP
Yes
Periodic
Varaiance
calculation
Settle cost
object
PE Product
Costing has
been done
Revaluate
Stock
MM Goods
Movements
Recorded
Material Price
Determination
Allocation of
Follow up Costs
to Finished/Semi
Finished
Products
Material
M,aster
Updates
Price Update in
Actual Costing
Provisional
Posting
GL Postings &
Reversal
Material
M,aster
Updates
Additive
You use additive costing to enable you to manually add costs that cannot
be calculated by the system to a material cost estimate.
Standard
StandardCost
CostEstimate
Estimate
(once
(onceaayear)
year)
Costing Variant
Costing
Costing Variant
Variant
Quantity Structure
Determination
Valuation
Variant
Prices
Quantities
Cost of goods
manufactured
Costing Variant
Costing Sheet
Determination of:
- prices update
in material master
Strategy for
transfer of
the existing
cost estimates
COSTING
VARIANT
Determination of :
- Bills of Material
- Routing
; Accounting views
; Costing views
; MRP views
; Recipe header
; Operations
; Materials list
Master Recipe
Production Version
; Validity Period
; Production line
Mixed Product
Cost Estimate
Costing Structure
Costing Structure for Product Cost Planning:Material Master
Cost Centers
Activity Types
Cost Elements
Cost Component Structure
Cost Centers
Validity period
Category
Functional area
Activity Types
Validity period
Activity unit
Allocation cost element
Cost Elements
Validity period
Category
Costing Structure
44,000
440000 (miscl.)
10,000
473120 (telephone)
30,000
1PDH01
100 h
:
Activity Price
Calculation
Apportionment of cost center costs
to activity types according to
particular criteria
Calculated
Price: 840
Costing Structure
Planning
9103000
Utilities (Common)
3 Cost Splitting
Product
Cost Estimate
2
Product
91000045 - TEG
Steam service
9103004
1UTSTF Steam - fixed
1UTSTV Steam var.
943954 UT: Steam fix
A
Al cti
lo v i
94 ca ty
39 tio
Ro via 54 n
ut
in
g
..
n
io
ut CE
rib al
st
n
Di rigi
O
9103000
..
1
Primary costs planning on all
Cost Centers.
Product
91000060 - LLDPE
Activity Types Used:
1UTSTF Steam - fixed
COOM
Raw Materials
Cost Centers
Utilities
Personnel Exp.
Depreciation
Structure of primary
costs
Utilities
Internal
Activity
Allocation
Personnel Exp.
Depreciation
Structure of
primary
costs
Standard
StandardCost
CostEstimate
Estimate
(once
(onceaayear)
year)
Price update
Standard price
9
9
9
9
9
9
9
9
Price update
Future price
9 Future standard price
9 Stored in material master data (accounting & costing view) in Legal,
Group and Profit Center valuation views after marking the cost
estimate.
Previous price
9 Replaced standard price by current one due to releasing the cost
estimate
9 Stored in material master data (accounting & costing view).
Price update
Analysis of Costing Results
Existing Std
Marking Standard
Cost Estimate
Releasing Standard
Cost Estimate
Future
Current Previous
10
Future
15
Current Previous
10
15
10
Stock Revaluation
Costing run
Costing run
9 You can use the costing run to process mass data. It enables you to
cost, mark, and release more than one material at the same time.
9 Every processing step involved in costing with quantity structure is
performed by the costing run, from the same screen.
Costing run
Costing Run Creation
Company Code
Costing variant
Dates
OR
Selection
of
all materials
Partial selection
of materials
BOM explosion
Prepare
PrepareCost
CostObject
Object
Production
ProductionCosts
Costs
Receive
ReceiveFinished
FinishedStocks
Stocks
Month
MonthEnd
EndClosing
Closing
Variance Calculation
Settlement
Partial delivery
Delivered /
Technically
completed
Time
Releasing an
order
Period 1
Period 2
Period 3
Time
Functions
Funkcje
Type of settlement
rule
Work-in-Process
Variances
Settlement
Hierarchy of
Cost Objects
FULL
= Actual Costs -
Goods Receipts
Should be periodically
Impossible
PERIODIC
Must be periodically
Possible
Prepare
PrepareCost
CostObject
Object
Create
Product Cost Collector
Preliminary costing
Routing
Bill of Material
Usage
Alternative
Group
Group counter
Production Version
ID,
Production line,
Validity period.
Product Cost
Collector
PROCESS ORDER 1
Product Cost
<FERT or HALB>
Collector
PROCESS ORDER 2
Master
Recipe
Operation
List/Routing
Operation 10
Phase A
Operation 20
Resource
Requirements
Materials
List/BOM
Material X
Material Y
Production
Version
Preliminary costing
Costing variant PREM - preliminary costing:
9 Created during product cost collector creation
9 Created per each production version
9 Provides split and balanced information of cost items, quantities and
prices that are planned to occur during production of a product
9 Variable costs coming from BOM and routing
9 Result used mainly for actual activities postings
9 May be used for further analysis up to cost management
requirements
9 May be changed all the time in the way of changing (updating)
Product Cost Collector; i.e. different quantity structures allowed over
the period
9 Changes in BOMs take effect immediately, i.e. cost estimate update
not required
9 Changes in routings take effect after cost estimate update
Preliminary costing
Plan
Caustic Soda
1.500
Ethylene
2.000
EDC
0.500
Materials
4.000
Internal activities
2.500
Overheads
1.500
Total
8.000
Actual
Plan
Actual
Caustic Soda
1.500
1.800
Ethylene
2.000
2.200
EDC
0.500
0.600
Materials
4,000
4,600
Internal activities
2.500
Overheads
1.500
Total
8.000
2.800
7.400
Individual
confirmation
Individual order
confirmation
Collective
Collective confirmation
confirmation
Milestone
confirmation
Milestone confirmation
Progress confirmation
Order confirmation
Confirmation with reference
Confirmation functions
Output
receiptmovement
Confirmgoods
with goods
Defaults for remaining time
Backflush
components
Check operation
sequence
Check delivery tolerances
Backflush
Plant data utilities
collection interface
Backflushing
Reduce
Reducecapacity
capacityrequirements
requirements
Determine
actual
costs
Determine actual costs
Actual costs
Production Order
Step 1 Created and release
- Maintenance of Master Data
Status - RELEASED
STATUS- CREATED
STATUS - RELEASED
This status allows for actual postings
Actual costs
Production Order
Step 2 Goods Issue to Order
- Actual Postings
Status GOODS MOVEMENT POSTED
FI
Raw
Materials
Consumed
400000
Order
1.100,100 * 11 = 1.100,Inventory
quantity * price = cost
Raw
Materials
119400
1.100,-
400000 + 1.100
Actual costs
Production Order
Step 3 Direct activity allocation
- Actual Postings
Status - RELEASED
Order
400000 + 1.100
943201 + 7.500
150 * 50 = 7.500
943201
- 7.500,-
Actual costs
Production Order
Step 4 Goods Receipt from Order into Warehouse
- Actual Postings
Status PARTIALLY DELIVERED
FI
Production
Output
462001
5.000,-
Order
400000 + 1.100
943201 + 7.500
462001 - 5.000
Finished
Products
119430
5.000,-
The results from the output receipts, plus material & resource
consumptions, update the stock records and provide
valuation of production according to standard cost approach.
Month
MonthEnd
EndClosing
Closing
WIP
Calculation
Variance
Calculation
Settlement
Production Order
Step 5 Work-in-Process Calculation
- Period-end closing
Status RESULTS ANALYSIS CARRIED OUT
Order
400000 + 1.100
943201 + 7.500
WIP Report:
Work-in-Process
8.600 - 5.000 = 3.600
462001 - 5.000,-
Production Order
Step 6 Settlement
of - Period-end closing
Status RESULTS ANALYSIS CARRIED OUT
FI
Work In
Progress
(WIP)
462201
Order
400000 + 1.100
943201 + 7.500
462001 - 5.000,-
3.600
Work In
Progress
(WIP)
119460
3.600
400000 + 5.000,-
FI
Work In
Progress
(WIP)
119460
Order
400000 + 1.100
943201 + 7.500
1.600
462001 - 5.000
462001 - 7.000
400000 + 5.000
Work In
Progress
(WIP)
462201
1.600
As WIP is reported as
cumulative value.
FI
Price
Difference Production
Difference
464018
Order
400000 + 1.100
943201 + 7.500
1.600
462001 - 5.000
462001 - 7.000
400000 + 5.000
Production
Output
462001
Negative variance:
Actuals > Plan.
1.600
WIP
462201
3.600
WIP
119460
3.600
PA Assignment
lines
Value Field
Plan
Actual
Caustic Soda
1.500
1.800
Ethylene
2.000
2.200
EDC
0.500
0.600
Materials
4,000
4,600
Internal activities
2.500
2.800
Overheads
1.500
1.600
Total
8.000
9.000
Revaluation
%
Overheads
Process costs
Revaluation
Overheads
Calculations
and
analysis
Work-in-Process
Postings
FI/CO
Settlement
Scrap
Variances
Material Ledger
MATERIAL STOCK
Parallel Valuations
Parallel Currencies
Translation at historic rates
(up to three)
(Transfer Prices)
Group
Legal
Profit Center
Financial Accounting
Controlling
(Company Code)
(Controlling Area)
10 Local currency
10 Local currency
30 Group currency
30 Group currency
Price control
Material
Master
Price Control
Standard Price
(V Price)
(S Price)
Price control
Moving average price
Price control
Standard Price
9
9
9
9
9
9
Price control
V
V
Price determination
2
Transaction based
Single-/ multilevel
price determination
Standard
price
Standard
ndard
price
Unit periodic
price
Moving
price
Cannot be
activated
manually
Material ledger
is activated
Material
Master
Price Control
Determination
Standard Price
(S Price / 3 Single-/multilevel)
Legal valuation
USD
Group valuation
SAR
Profit center
valuation
SAR
Price differences
9 Updating single-level variances
9 Single-level price determination
9 Multilevel price determination
Overview of differences
-
Purchasing,
Stock
Movement,
Production
PRD
Cost (price)
differences
FI
*
PRF
PRA
PA
GL (PL) 464017
Price Diff -Purchasing
PRU
Material Ledger
Closing - Single
Level
PRY
Cost (price)
differences
(mater.ledg
er)
PRF
PRV
Material
ledger
fr.low.level
s price dif.
M
St M P ri a nd a
rd
ce
C o or S
n di
D
t
i
o
T yp n
e
Revenue
Revenue
COGS
COGS
Input price
variance
GL (PL) 464018
Production Variance
PRA
Input quantity
variance
PRU
Resource-usage
variance
Material Ledger
Closing - Multi
Level Level
SD
*
GL (PL) 464019
Price Diff - Good
Issue
Remaining input
variance
PRF
Mixed-price
variance
PRA
Output price
variance
*
PRU
GL (PL) 4640020
Price Diff -Transfer
Postings
Material Ledger
Closing Release Future
Price
UMB
Gain/loss
from
revaluation
GL (PL) 464021
Gains/Loss on
Inventory Revaluation
Material Ledger
Closing - Do not
revaluate Stock
LKW
Accruals and
defer.acct(mat
erial ledger)
GL (BS) 119610
ML Provisions
Production
Variances
Gains/Loss on
Inventory
Revaluation
Adjustment
to COGS
from
capitalising
Variances
Adjustment to
COGS from
Inventory
Revaluation
Gross margin
Price differences
9 Updating single-level variances
9 Single-level price determination
9 Multilevel price determination
Price differences
9 Updating single-level variances
9 Single-level price determination
9 Multilevel price determination
Actual Costing
Price differences
9 Updating single-level variances
9 Single-level price determination
9 Multilevel price determination
Price differences
9 Updating single-level variances
9 Single-level price determination
9 Multilevel price determination
At the end of the period, you can use the functions for singlelevel price determination to assign the variances for each
material. In this way, cumulated price differences can be
proportionally assigned to the ending inventory and material
consumption of the period at the end of the period.
The stock can valuated with the actual price of this period,
the periodic unit price. The price differences assigned to
consumption first remain on the price difference account.
When you settle an order, the system allocates the price
differences incurred during a production process to the
respective materials.
Price differences
9 Updating single-level variances
9 Single-level price determination
9 Multilevel price determination
Material: ACT-LCD##
Locked
CL
250
250
10.5
325
260
Material consumption
(400002)
CL
10.5
260
VB
325
Stock value :
185.5 EUR
(700 PC * 26.50/100)
Vendor
280
ML accrual (119610)
Material: ACT-LCD##
Locked
CL
GR/IR allocation
260
10.5
Vendor
280
260
Material consumption
(400002)
325
Stock value:
175 EUR
ML accrual (119610)
CL
10.5
Summarized
Analysis
Product Cost
Planning
Reports
Object
Object
Comparisons
List
Detailed
Reports
Report Selection
; The Report Tree can be used to select Reports in the Information System. The Report
Tree is the central collection point and hierarchical outline of all Reports in an
application component.
; The standard Report Tree supplied by SAP should not be changed. A personalized Report
tree can be created to which standard Reports as well as one's own creations can be
assigned.
Report
Report
Report
Report
Report
Detailed
Reports
Object
List
Displaying
Documents
Summarized
Analysis
Product Cost
Planning
Reports
Object
Object
Comparisons
List
Detailed
Reports
Report Selection
; The Report Tree can be used to select Reports in the Information System. The Report
Tree is the central collection point and hierarchical outline of all Reports in an
application component.
; The standard Report Tree supplied by SAP should not be changed. A personalized Report
tree can be created to which standard Reports as well as one's own creations can be
assigned.