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Product Costing & Material

Ledger
Product Costing Overview

 Acquire an overall perspective of Product Cost


Planning within R/3.
 Observe a product life cycle from the perspective of
Product Cost Planning.
 Acquire an overall perspective of product cost object
controlling within R/3.
 Understand the period oriented product cost
controlling.
 Obtain an understanding of the functions in the
material ledger.
 Analysis of product costs.
Material Ledger Overview

 Obtain an understanding of the actual costing


function in the material ledger.
 Know how to revaluate inventories of semi finished
products, and finished products with calculated
actual costs or accrue variances.
 Analysis of actual product costs.
SAP Modules - Overview

SD FI
Sales & Financial
Distribution Accounting
MM CO
Materials Controlling
Mgmt.
PP AM
Product Fixed Asset
Planning Mgmt.

QM SAP R/3 PS
Quality Project
Mgmt. System
PM OC
Plant Maint. Office &
Comm.
HR IS
Human Industry
Resources Solutions
CO Components
CO EC -
Operating concern (9100 – A group) Profitability
PCA
PA segment
Profitability Analysis
Profitability Analysis
CO
Overhead Cost Controlling Product Cost

Profit Center Accounting


OM
Controlling
Internal
Cost centers
orders
COarea
Controlling (9100 – A group)
Production
Internal Orders Order
Activity
types
Standard
Cost Estimate
CO
CEL Cost Element Accounting Cost Element Accounting

Financial Asset Revenues


FI Accounting
Financial Expense Company Code (9100 A Ltd, 9200 A1 Ltd)
Accounting

HR Human Materials
Materials SD Sales and
Resources
MM S&D
Management
Management Distribution
Why utilize Product Costing?

•Product Costing is the backbone of a strong standard cost


system. This is the process by which production activities
are recorded at standard values and variances from actual
costs are isolated.
•For planning purposes, the corporation wants a preliminary
target of what they think it will cost to produce X units of a
product.
•To set attainable standards by which efficiencies within the
production operations can be measured.
•To provide feedback to management on the actual
performance of the production process in relation to those
targets. Identified variances may indicate inefficiencies that
have to be investigated. Corrective action may have to be
taken.
Product Costing

Optimized Production Operations

Improve and Control


Operations

OPTIMIZED Plan & Commit Prepare Make Disposition & Process


& FIRM ends with
Resources Production Product Contain Product
SCHEDULE initial
containment
(packout)

Manage Process and


Product Documentation
Costing Methodology

Material Master
Price Control

Moving average price Standard Price


(V- Price) (S-Price)

- Adjusted with every receipt - Constant


- If at all, only to be used for raw - Recommended for all material
materials and materials procured types
externally
Costing Methodology

Price that changes in consequence of usage


and entry of invoices. Calculated by
dividing the value of material by the quantity
in stock. Automatically recalculated based
on activity.

Constant price without considering usage or


invoices. Material stock valued at the same
price over an extended period. Price
variances are posted to price difference
accounts; not affecting the standard price.

The method of valuing inventory of a


material is determined when
extending/creating the material master.
Posting Example: Moving average price 1
Procedure Stock Stock value V price
1
Begin. inventory: 100 PC at 2.00 100 200.- 2.00
2
Goods receipt: 100 PC at 3.00 200 500.- 2.50
3
Invoice receipt: 100 PC at 4.00 200 600.- 3.00
4
Goods issue: 150 PC at 3.00 50 150.- 3.00

Stock Stock Stock Coverage GR/IR Account

1 200,- 450,- 4
3 300,- 300,- 2
2 300,-
If the invoice receipt is
3 100,- for 100 units, the stock
coverage
is 200 units:
Consumption all differences  stock Vendor

4 450,-
400,- 3
ok
Posting Example: Moving average price 2
Procedure Stock Stock Value V Price
1
2 Begin. inventory: 100 200.- 2.00
3 Goods receipt: 100 PC at 3.00 200 500.- 2.50
4 Goods issue: 150 PC at 2.50 50 125.- 2.50
Invoice receipt: 100 PC at 4.00 50 175.- 3.50

Stock
Stock Shortage GR/IR account

1 200.- 3 375.- With a delayed invoice receipt 4 300.- 300.- 2


300.- Of 100 units:
2
a shortage of 50 units
4 50.-  price differences despite MAP

Price difference Consumption Vendor

4 50.- 3 375.-
400.- 4
Posting Example: Moving average price 3

Procedure Stock Stock Value V Price

Begin. inventory: 100 200.- 2.00


Goods receipt: 100 PC at 2.20 200 Δ 80.- 420.- 2.10
Goods receipt: 100 PC at 2.40 300 in stock 660.- 2.20
Goods issue: 200 PC at 2.20 100 220.- 2.20
Invoice receipt: 100 PC at 3.00 100 300.- 3.00
Invoice receipt: 100 PC at 3.00 100 Δ 60.- 360.- 3.60
in stock

Stock Coverage
Even though all
With multiple delayed receipts between
invoice receipts: 2.- and 3.- were
Danger of Incorrect Valuation! valuated!
Characteristics of Price Control V

Moving average price

+ The stock value is adjusted each time goods are received


+ Real-time price fluctations are posted to stock
+ Price difference postings only take place in exceptional cases

- Price fluctuations cannot be adjusted to the finished products of


higher levels (S price)
- Only recommended for raw materials or goods procured externally
(real-time price for goods receipt known)
- False entries with severe consequences (compounded errors)
- Danger of incorrect valuations with delayed invoice receipt
Posting Example: Standard Price

Procedure Stock Stock Value Standard Price

1 Initial situation: 100 200.- 2.00


2 Goods receipt: 100 at 2.40 200 400.- 2.00
3 Invoice receipt: 100 at 2.20 200 400.- 2.00

Stock GR/IR account

1 200.- 3 2
240.- 240.-
2 200.-

Price difference Vendor

2 40.- 20.- 3
220.- 3
Characteristics of Price Control S

Standard Price
+ All stock postings take place at the standard price
+ Prices remain constant throughout at least one period
+ Price fluctuations do not debit/credit the cost objects (e.g. orders)
 consistant controlling with the standard price as a bench mark

+ Calculation of the standard prices with cost component splits


+ Recommended for all material types
- Price differences cannot be subsequently adjusted to the ending
inventories or the consumed products (sales, production
withdrawals)
Period-End Closing: Valuation Problems
Finished Products
Raw Materials I
Distribution of
Price Differences?

Valuation Period
D Actual Prices?

Raw Materials II Ending Inventory:


Raw Materials
Costing Methodology

Valuation Method by Material:

Finished Goods Standard w/ ML

Intermediates Standard w/ ML

Raw Material Moving Average Actual

Packaging Moving Average Actual


Valuation Area

Organizational unit dividing up a company for the


purpose of valuating stocks in a standardized and
consistent manner.
• Level at which material value is managed.
• The valuation area may is defined:
- by plant
Product Cost Flow

MAT Manufacturing Cost MM: RM


Cost Cost Cost
Center X Center 1 Center2
CO-
CCA BOM
CO-
Cost Cost PC
Center Y Center 3
Routing

Act1
Production
Production
Cost Center
Act2 orders

VAR.

VAR..
.
CO-
PA Cost F. Goods
VAR...
Object Inventory
Product Cost Flow

Plant Cost View


Sales & Mktg. View
Mfg. Cost Center
Process Order PA
Utilities
BOM Product Unit Cost (Profitability Analysis)
Salaries (Cost Component View) (SAP Value Fields)
Supplies Raw Mat’l 1 Cost of Goods Sold
Maintenance Raw Mat’l 2 Cost of Goods Mfg.
Depreciation Pkg Mat’l Raw Mat’l 1 Costs
Raw Mat’l 1 & 2 Costs
Training Raw Mat’l 2 Costs
Pkg. Mat’l Costs
Routing Pkg. Mat’l Costs
Direct (Activity Types)
Conversion Routing
Mach. Hrs.
Insur. & Taxes or Mach. Hr. Costs
Costs to Produce
Laboratory/QC lbs. Lab Tests Costs
Product testing costs
Waste Treatment Produced Mach. Setup Costs
Change Over costs
Shops & Stores Lab tests (setup costs)
General Services Setup Hrs. Fixed & Variable Cost Fixed & Variable Cost
Indirect Three Views Available:
Conversion 1. Cost Component
Total Product Cost 2. Cost Element
3. Cost Itemization
Product Costing At A Grp

Product Cost Planning


Quantity
structure
in PP Adjust costing
created master data/
parameters
Activity
type
planning Execute costing
completed
run

Overhead Not OK
cost
planning
completed

Standard
Review
Yes for
Plan prices Cost
Approval
of raw Calculated
materials
were
entered

OK

Automatic Standard
Mark Standard Release price hase
Cost Estimate of been
Standard Price released
Product Costing At A Grp

Product Cost Allocation - Simultaneous Costing

Cost
estimate
has been
released

Manufacturi
ng order
has been
released
Product cost
Simultaneous
are
Costing
Yes
Cost object allocated
has been
created
Product Costing At A Grp

Period End Closing Product Costing

Product Revaluation
cost are activity types at
allocated actual prices

Calculation of
WIP

Yes

Periodic
Varaiance
calculation

PE Product
Settle cost
Costing has
object
been done
Product Costing At A Grp

Material Ledger/Actual Costing

GL Postings

Material
M,aster
Revaluate Updates
Stock
Allocation of
MM Goods Follow up Costs
Material Price Price Update in
Movements to Finished/Semi
Determination Finished
Actual Costing
Recorded
Products
Provisional GL Postings &
Posting Reversal

Material
M,aster
Updates
Product Cost Planning: Overview

Functions of Product Cost Planning:


 Product Cost Planning with reference to cost object
 Product cost planning with quantity structure – with structures
provided by PP (Production Planning) module
 Determination of the cost of goods manufactured
 Product Cost Planning supplies information for other
modules:
 Update of prices in a material master
 Update of the cost of good sold with the detailed structure of
cost component (grouped cost elements)
 Standard (material) cost estimate as the base for calculation
of production variances
Product Costing: Overview
Create Cost estimate with quantity structure

Standard Cost Estimate Mark cost estimate with quantity structure


(once a year)
Release cost estimate with quantity structure

Prepare Product Cost Create Cost Object

Collector Preliminary Costing

Post Materials Costs

Production Costs
Debit Secondary cost

Receive Finished Stocks Credit Production Output

WIP Calculation

Month End Closing Variance Calculation

Settlement
What is a Product Cost Estimate?

A tool for planning costs and establishing prices for


materials. It is used to calculate the cost of goods sold for
each product unit.

Cost Estimate With Quantity Structure


Utilizes a Bill of Material (BOM) and routing, I.e. Master Recipe for costing
purposes. Integrated with Production Planning (PP).

Cost Estimate WITHOUT Quantity Structure


Utilizes a material master data and activity types entered manually into cost
estimate.

Additive
You use additive costing to enable you to manually add costs that cannot
be calculated by the system to a material cost estimate.
Product Cost Planning: Overview

Cost estimate
with quantity
structure
Report
Quantity
structure Material costs
Cost estimate Production costs
Costing without qty
variant structure Overhead

Valuation Price update


Product Cost Planning: Overview
Simulation Modified Current
Costing Std Cost Est. Cost Est.

Start of Start of
Year 1 Year 2

Time
New Technical Ad hoc
product change

Standard Cost Standard Cost


Estimate Estimate

Inventory Cost Inventory Cost


Estimate Estimate
Product Costing: Overview

Create Cost estimate with quantity


structure
Standard Cost Estimate
(once a year) Mark cost estimate with quantity structure

Release cost estimate with quantity structure


Material cost estimates with q. s.

Quantity Structure Valuation


BOM Routing Purchase price
Activity Type Price
Overhead

Costing
Standard Cost
Costing Results Estimate

Used for:
Items Cost Values
Elements
Stock Valuation

M Material 400000 Raw materials 600 000 SAR Profit & Loss
E Activity 943201 Production hours 610 000 SAR Statement
E Activity 943901 UT: Cooling Var. 612 000 SAR
G Overhead … … SAR
Material cost estimates with q. s.

Product W Costing structure - Total


Internal External
Material Overheads
Activity Activity
W
Costing structure – Upper level
Z1 Z2 Internal External
- Overheads
Activity Activity
S1 S2 S3
Costing structure – Lower level
Internal External
Material Overheads
Activity Activity

Product Z Costing structure - Total


Internal External
Material Overheads
Activity Activity

Product S Costing structure - Total

Material - - -
Costing Variant

Costing Variant

Quantity Structure Valuation


Determination Variant

Quantities Prices

Cost of Goods
Manufactured
Costing Variant

Strategy for Determination of :


Costing Sheet transfer of - Bills of Material
the existing - Routing
cost estimates

Determination of: Defaulted dates for


COSTING
- prices update costing
VARIANT
in material master

Valuation control for:


- materials
- internal activities
- external activities
- subcontracting
- overheads via
costing sheet
Quantity Structure for Product Cost Planning

- Quantity Structure for Product Cost Planning

- Master Data

+ Material Master

+ Bills of Material

+ Work Centers / Resources

+ Routings

+ Master Recipe

+ Production Version

+ Procurement Alternatives / Mix Ratios


Quantity Structure for Product Cost Planning

 Material master data  Master Recipe


 Accounting views  Recipe header
 Costing views  Operations
 MRP views  Materials list

 BOM - Bill of Material  Work Centers / Resources


 BOM type & identification  Basic data
 BOM header  Costing
 Material data  …

 Routing - tasks list  Production Version


 Routing type & identification  Validity Period
 Routing header  Production line
 Operation data
Quantity Structure: Material Master Data

Material Master Data:


 Material Master Data is an object in SAP R/3 that
consists all relevant data for raw materials, semi-
finished and finished products divided into views.
 Views: -Valuation class
 Purchasing -Price control
-Price determination
 Storage
-Price
 Sales -Stock
 Accounting -Value of the stock
-…
 Costing
 MRP -Plan price
 … -Cost estimate results
-Periodic unit price
-…
Material cost estimates - quantity struc.

Product cost planning with quantity structure:


 Materials
USE:
 Cost Centers / Activity Types - for the products (materials) in the system
without PP module
 Primary Costs
- in case of external MRP system
- to update standard price

Quantity * material price = Quantity * activity price = Cost of goods manufactured


cost of goods manufactured cost of goods manufactured due to the manually entered
due to the consumption of due to the internal activities cost elements or
raw materials. during the production mathematical operation.
process.
Costing Variant

Strategy for transfer of


Costing Sheet the existing cost estimates

Determination of: Defaulted dates for


COSTING
- prices update costing
VARIANT
in material master

Valuation control for:


- materials
- internal activities
- external activities
- subcontracting
- overheads via
costing sheet
Quantity Structure: Production Version

 Quantity structure determination for cost estimate


 Validity period definition

Product <FERT or HALB >

Routing Bill of Material


• Group • Usage Product Cost
• Group counter • Alternative Estimate

Production Version
• ID,
• Production line,
• Validity period.
Quantity Structure: Procurement Alternatives

 Quantity structure determination for mixed cost estimate.


Quantity Structure: Mixing Ratios

 Quantity structure determination for mixed cost estimate


 Validity period for mixing structure

Product <FERT or HALB >

Mixed Product
Cost Estimate
Costing vs. Quantity Structure

BILLS
RAW MATERIALS
OF
MATERIAL
PRODUCT
COST
ESTIMATE

ROUTING

Electricity SERVICE
COST CENTER
WORK CENTER /
Consumables RESOURCE

Maintenance

Labor Utilities Overhead PRODUCTION


ACTIVITY TYPES COST
CENTER
Depreciation
Costing Structure

- Costing Structure for Product Cost Planning

- Master Data

+ Materials

+ Cost Centers

+ Activity Types

+ Cost Elements

+ Cost Component Structure


Costing Structure for Product Cost Planning

 Material master data  Cost Elements


 Accounting views  Validity period
 Costing views  Category

 Cost Centers
 Validity period
 Category
 Functional area

 Activity Types
 Validity period
 Activity unit
 Allocation cost element
Costing Structure: Material Master Data

Material Master Data:


 Material Master Data is an object in SAP R/3 that
consists all relevant data for raw materials, semi-
finished and finished products divided into views.
 Views: -Valuation class
 Purchasing -Price control
-Price determination
 Storage
-Price
 Sales -Stock
 Accounting -Value of the stock
-…
 Costing
 MRP -Plan price
 … -Cost estimate results
-Periodic unit price
-…
Costing Structure

A cost centers is an organizational unit within a controlling


area that represents a clearly delimited area of
responsibility where costs are monitored against a plan.

Cost Center They represent a defined location of cost incurrence.

Items in a chart of accounts that are relevant to cost, are


referred to as cost elements. They are used for entering all
costs within the entire cost accounting system.

Cost Secondary costs elements are used exclusively in CO to


Elements identify internal cost flows such as assessments or
settlements. They do not have corresponding general
ledger accounts in FI and are defined in CO only.
Planning Overview

Company
General

Service
C. Center

Executive Admin. Maintena Prod.


Management C. Center nce Support

Production
C. Center

Product
Projects Cost
COGS Estimate

Profitability Segment
Costing Structure

Activity types define the type of activity that can be provided


by a cost center (work activity, production hours, and so on).

Activity Type
Activity Price Calculation

Cost center:
Planned costs: 84,000
Machine
Cost center
1PDH01 Plan activity qty: 100 h

Planned costs: 100 h


2 Calculated
430000 (salaries) 44,000
Price: 840
440000 (miscl.) 10,000
473120 (telephone) 30,000

1
Activity Price
: Calculation
Apportionment of cost center costs
to activity types according to
particular criteria
Costing Structure
Planning 3 Cost Splitting
1203000 Product
1. Assign CC 1203004 to Splitting
Utilities (Common) Structure U4 Steam service Cost Estimate
2. Perform cost splitting
2
1203000 Product
22000057 - TEG

Steam service
…..
1203004
1UTSTF Steam - fixed
1UTSTV Steam – var. 5
….. 943954 UT: Steam fix
Product
22000058 - LLDPE

….. Activity Types Used:


1 1UTSTF Steam - fixed
4 Planned Price Calculation
Primary costs planning on all Prices for 1UTSTF are
Cost Centers. calculated.
Cost Component Structure

Valuation
Purchase price
Activity Type Price x Quantity
Overhead

Costing
Standard Cost
Costing Results Estimate

Used for:
ID Cost Values
Component Fixed & Variable Stock Valuation

101 Raw Materials 600 000 SAR Profit & Loss


110 Catalyst 0 SAR Statement
111 Chemicals 0 SAR
… … … SAR
Cost Component Structure
CO- CO- Product Cost Planning
OM PC

Primary cost elements Z9


A Grp-Primary

Raw Materials Raw Materials

Cost Centers

Utilities Utilities

Personnel Exp. Internal Personnel Exp.


Activity
Allocation
Depreciation Depreciation

Structure of primary Structure of


costs primary
costs
Product Costing: Overview

Create Cost estimate with quantity structure

Standard Cost Estimate


(once a year) Mark cost estimate with quantity
structure

Release cost estimate with quantity


structure
Price update

 Standard price
 Only one validated standard price per product per period,
 The price represents most desired (or most likely) costs
 Only one price per product over the year (recommended)
 Determined during costing runs for Z9P1 costing variants - standard
cost estimate is populated in appropriate valuation views
 Includes variable and fix cost elements
 Base for variances calculation; which is then posted to FI and CO-
PA
 Used for stock valuation of finished goods and semi-finished
products
 Stored in material master data (accounting view) in Legal, Group
and Profit Center valuation views after releasing the cost estimate
Price update

 Future price
 Future standard price
 Stored in material master data (accounting & costing view) in Legal,
Group and Profit Center valuation views after marking the cost
estimate.

 Previous price
 Replaced standard price by current one due to releasing the cost
estimate
 Stored in material master data (accounting & costing view).
Price update
Material Master Data
Analysis of Costing Results

Standard Price
Future Current Previous
10

Future Current Previous


Marking Standard
Cost Estimate 15 10

Future Current Previous


Releasing Standard
Cost Estimate 15 10

Stock Revaluation
Price update procedures

Master & control data definition


- Material Master Data
- CO Production Order incl. Unit Costing
Product Costing
- SPC1 – SPC3 cost estimates, verification, save
- Organizational measures: marking and releasing
- Cost estimate marking
- Cost estimate release
MM & CO postings
- Various analysis available

Period-end closing tasks


- Work-in-process postings
- Inventory deviations postings
- Variances processing and analysis
- Settlement processing
Costing run

 Costing run
 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.
 Every processing step involved in costing with quantity structure is
performed by the costing run, from the same screen.

 Costing run consists of:


 General data (organizational units, selection criteria)
 Selected materials
 Exploded BOMs
 Costing run results
 Price update results
Costing run
Costing Run Creation

Company Code Costing


Costing variant Run
Dates

Partial selection
of materials
Selection
of
all materials BOM explosion

$ $
Execute costing run
$ $ $ $
$ $ $
Marking and releasing costing run results
Materials
(price update)
Product Costing: Overview

Create cost object


Prepare Cost Object
Preliminary costing

Post Materials Costs

Production Costs
Debit Secondary cost

Receive Finished Stocks Credit Production Output

WIP Calculation

Month End Closing Variance Calculation

Settlement
Cost Object Controlling: Overview

Functions of Cost Object Controlling:

 Supporting make-or-buy decisions


 Determining price floors
 Performing complex cost analysis
 Determining inventory values
Cost Object Controlling: Overview

Cost Object Controlling Scenarios:

 Product Cost by Period


 Product Cost by Period is used for recurring periodic cost
control of products that are manufactured in the same way
over a longer period of time.

 Product Cost by Order


 Product Cost by Order is mainly used to control the costs of
individual production lots.
Cost Object Controlling: Overview

 Product Cost by Order or by Period


 Full settlement (by Order)

Actual costs - Actual costs -


Actual costs = Goods receipts = Goods receipts =
Work in process Work in process Variances
Time
Releasing an Partial delivery Delivered /
order Technically
completed
 Periodic settlement ( by Period)

Actual costs - Actual costs - Actual costs -


Goods receipts = Goods receipts = Goods receipts =
Work in process + Work in process + Work in process +
Variances Variances Variances
Time
Period 1 Period 2 Period 3
Cost Object Controlling: Overview

Functions
Funkcje Product Cost by Order Product Cost by Period

Type of settlement
FULL PERIODIC
rule

WIP calculated on base WIP calculated on base


Work-in-Process of actual costs of target costs

Variance = Actual Costs - Variance = Actual Costs -


Variances
Goods Receipts Goods Receipts - WIP

Settlement Should be periodically Must be periodically

Hierarchy of
Impossible Possible
Cost Objects
Cost Object Controlling: Overview

Functions of Product Costs by Period:

 Create product cost collectors.


 Create a preliminary cost estimate for product cost
collectors.
 Calculate and analyze target costs and actual costs for
product cost collectors.
 Calculate or update the work-in-process inventory and
the finished goods inventory.
 Calculate and analyze variances for each period.
 Transfer data to: Financial Accounting, Profitability
Analysis, Profit Center Accounting and Material Ledger.
Cost Object Controlling: Overview

Product Costing
- Z9P1, Z9P2, Z9P3 costing run, verification, save
- Organizational measures: marking and releasing
- Cost estimate marking
- Cost estimate release
Master & control data definition
- Material Master Data, BOMs and Routings
- Product Cost Collectors incl. PREM costing
Production postings (backflush)
- Various analysis available

Period-end closing tasks


- Inventory deviations postings
- Variances processing and analysis
- Settlement processing
Actual Overview

Company
General

Common
Services

Executive SBU / R&T Maintena


Management Sales C. Center nce
C. Center
Production
C. Center

Overhead Product
Projects Variances Cost
Variances Collector

Profitability Segment
Product Costing: Overview

Create
Prepare Cost Object Product Cost Collector

Preliminary costing
Objects in Cost Object Controlling

 Product cost collectors in the following production


environments:

 In order-related production (that is, when you are using


production orders) when you want to analyze the costs by
period rather than by lot
 In process manufacturing (that is, when you are using process
orders) when you want to analyze the costs by period rather
than by lot
 In repetitive manufacturing you always use product cost
collectors as the cost objects.
Objects in Cost Object Controlling

 Product Cost Collector

Product <FERT or HALB >

Routing Bill of Material


• Group • Usage Product Cost
• Group counter • Alternative Collector

Production Version
• ID,
• Production line,
• Validity period.
Objects in Cost Object Controlling

Product PROCESS ORDER 1


Product Cost
<FERT or HALB>
Collector
PROCESS ORDER 2

Master Operation Materials Production


Recipe List/Routing List/BOM Version

Operation 10
Material X
Phase A
Material Y
Operation 20

Resource
Requirements
Preliminary costing

Product Costing
- SPC1 – SPC3 costing run, verification, save
- Organizational measures: marking and releasing
- Cost estimate marking
- Cost estimate release
Master & control data definition
- Material Master Data, BOMs and Routings
- Product Cost Collectors with Preliminary costing (PREM)
Production postings (backflush)
- Various analysis available

Period-end closing tasks


- Inventory deviations postings
- Variances processing and analysis
- Settlement processing
Preliminary costing

 Costing variant PREM - preliminary costing:


 Created during product cost collector creation
 Created per each production version
 Provides split and balanced information of cost items, quantities
and prices that are planned to occur during production of a product
 Variable costs coming from BOM and routing
 Result used mainly for actual activities postings
 May be used for further analysis up to cost management
requirements
 May be changed all the time in the way of changing (updating)
Product Cost Collector; i.e. different quantity structures allowed
over the period
 Changes in BOMs take effect immediately, i.e. cost estimate update
not required
 Changes in routings take effect after cost estimate update
Preliminary costing

Product Cost Collector


Item Plan Actual

Caustic Soda 1.500

Ethylene 2.000

EDC 0.500

Materials 4.000

Internal activities 2.500

Overheads 1.500

Total 8.000
Simultaneous costing – actual costs

Product Costing
- Z9P1 – Z9P3 costing run, verification, save
- Organizational measures: marking and releasing
- Cost estimate marking
- Cost estimate release
Master & control data definition
- Material Master Data, BOMs and Routings
- Product Cost Collectors with Preliminary costing (PREM)
Production postings (backflush)
- Various analysis available

Period-end closing tasks


- Inventory deviations postings
- Variances processing and analysis
- Settlement processing
Simultaneous costing – actual costs
Confirm order
operation

Production output &


Back Flush
Product Cost Collector
Item Plan Actual

Record consumption Caustic Soda 1.500 1.800


& output
Ethylene 2.000 2.200
Record process data
EDC 0.500 0.600
& batch
characteristics Materials 4,000 4,600

Internal activities 2.500 2.800


Final Confirmation &
Back Flush Overheads 1.500

Total 8.000 7.400


Deal with Back Flush
& transaction errors

Adjust theoretical yield &


consumption to actual
Confirmation Types & Functions - Process Orders

Confirmation types
Order header

n
n Individual
Individual order confirmation
confirmation
n
n Collective
Collective confirmation
confirmation
Operations
n
n Milestone
Milestone confirmation
confirmation
n Progress confirmation
n Order confirmation
Components
n Confirmation with reference

Costs Material 20 Confirmation functions


Machine
Labor 100
50
Utility
... n
n Output
Confirmgoods receiptmovement
with goods
n Defaults for remaining time
n
n Backflush components
Check operation sequence
n Check delivery tolerances
n
n Backflush
Plant data utilities
collection interface
Confirmation status n Backflushing
n
n Reduce
Reduce capacity
capacity requirements
requirements
n
n Partial
Partial confirmation
confirmation n
n Determine actual costs
Determine actual costs
n
n Final confirmation
Final confirmation
Back Flushing (Repetitive Orders)

Order quantity = 10 PC

Operation 30

Component XY
Required qty = 20 PC Warehouse

Back Flushing Goods issue


Operation 30
Component XY = 10 PC
Yield = 5 PC

10 PC of Component XY
to be back flushed
Final Confirmation & Technical Completion

Final confirmation Technical completion

Order header Order header

Operations
Operations Operations
Operations

Components
Components Components
Components

PRTs
PRTs PRTs
PRTs

Costs
Costs 100 20 Costs
Costs 100 20
50 50

Order status: Production


Order status:order
Production order status:
Technically
Technically
status:Delivered
Delivered
completed
completed

Settlement can be carried out


Failed Transactions and Corrections

 Incorrect or missing data for components and activities


prevents processing of the back flush transaction
 These errors must be corrected before postings can be
made for materials and activities
 When the errors have been eliminated, the theoretical yield
and consumption may be adjusted and the results recorded
Summary

 Non-feedstock raw materials are staged daily to the


production area for planned manufacture
 As each production quantity is confirmed, a back flush of
the proportional quantities of raw materials and utilities
consumed is recorded

 The results from the output receipts, plus material &


resource consumptions, update the stock records and
provide valuation of production according to standard cost
approach.
List of Transactions

 Simultaneous costing transactions:

 MF60 – Stage Materials


 MFBF – Back Flushes
 MF41 – Month-End Corrections
 COR6 – Confirm Orders & Back Flush
 COR2 – Reverse Confirmations
Actual costs

 CO Production Order
Step 1 – Order creation
- Maintenance of Master Data
Status - CREATED

Material is assigned to a CO
Production Order

Material

STATUS – CREATED
This status does not allow for any actual
postings
Actual costs

 CO Production Order
Step 2 – Order release
- Maintenance of Master Data
Status - RELEASED

Material

STATUS - RELEASED
This status allows for actual postings
Actual costs

 CO Production Order
Step 3 – FI postings
- Actual Postings
Status - RELEASED

CO
Order
FI Material
Outside Services
430004
430004 + 5.000,-
5.000,-
Actual costs

 CO Production Order
Step 4 – Direct activity allocation
- Actual Postings
Status - RELEASED

Order
Material

430004 + 5.000,-
943201 + 7.500,-
Cost Center / Activity

150 * 50 = 7.500,-
943201 - 7.500,- quantity * price = cost
Actual costs

 CO Production Order
Step 5 – Goods Issue to Order
- Actual Postings
Status – GOODS MOVEMENT POSTED
Raw Order
CO
Materials Material
FI Consumed
400000
430004 + 5.000,-
943201 + 7.500,-
1.100,- 400000 + 1.100,-
100 * 11 = 1.100,-
Inventory
quantity * price = cost
Raw
Materials
119400

1.100,-
Actual costs

 CO Production Order
Step 6 – Goods Receipt from Order into Warehouse
- Actual Postings
Status – PARTIALLY DELIVERED

Order
CO
Production Material
FI Output
462001
430004 + 5.000,- 462001 - 5.000,-
943201 + 7.500,-
5.000,- 400000 + 1.100,-

Finished
Products
119430

5.000,- 100 * 50 = 5.000,-


quantity * price = value of the goods receipts
from order
Actual costs - Summary

 The results from the output receipts, plus material &


resource consumptions, update the stock records and
provide valuation of production according to standard cost
approach.
Product Costing: Overview

WIP
Calculation
Month End Closing
Variance
Calculation

Settlement
Period and year-end closing

 Period-end closing:

 Product Cost Collectors are only included in the period-end closing


process if the status of the order is not one of the following: LKD
(Locked), CLSD (Closed), DLFL (Deletion flag), DLT (Deleted).
 If you don’t enter a production process in the individual processing
mode of the period-end closing transaction, but only enter the data
for the material and plant, this period-end closing transaction will be
performed for all production processes for that material.
 Functions available in period-end closing: overhead calculation,
WIP calculation, variance calculation, settlement.
Period and year-end closing

Functions
Funkcje Product Cost by Order Product Cost by Period

Type of settlement
FULL PERIODIC
rule

WIP calculated on base WIP calculated on base


Work-in-Process of actual costs of target costs

Variance = Actual Costs - Variance = Actual Costs -


Variances
Goods Receipts Goods Receipts - WIP

Settlement Should be periodically Must be periodically

Hierarchy of
Impossible Possible
Cost Objects
Period and year-end closing

 CO Production Order
Step 7 – Work-in-Process Calculation
- Period-end closing
Status – RESULTS ANALYSIS CARRIED OUT

Order
Material

430004 + 5.000,- 462001 - 5.000,-


943201 + 7.500,-
400000 + 1.100,-

WIP Report:

Work-in-Process
13.600 - 5.000 = 8.600
Period and year-end closing

 CO Production Order
Step 8 – Settlement
of - Period-end closing
Status – RESULTS ANALYSIS CARRIED OUT
Work In Order CO
Progress Material
FI (WIP)
462201 430004 + 5.000,- 462001 - 5.000,-
943201 + 7.500,-
8.600,- 400000 + 1.100,-

Work In
Progress
(WIP)
119460
WIP is being updated on the
order as statistical value for
8.600,-
information purposes.
Period and year-end closing

 CO Production Order – new period


Step 9 – Repetition of the steps from 3 to 7
- Actual Postings
Status – PARTIALLY DELIVERED or DELIVERED

Order
Material

430004 + 5.000,- 462001 - 5.000,-


943201 + 7.500,- 462001 - 7.000,-
400000 + 1.100,-
400000 + 5.000,-

As a result of the actual


postings in the new period
there is a new balance on the
order.
Period and year-end closing

 CO Production Order – period 2


Step 10 – Work-in-Process Calculation (variant 1)
- Period-end closing
Status – PARTIALLY DELIVERED

Order
Material

430004 + 5.000,- 462001 - 5.000,-


943201 + 7.500,- 462001 - 7.000,-
400000 + 1.100,-
400000 + 5.000,-
WIP Report (cumulated):
Work-in-Process
18.600 - 12.000 = 6.600
Work-in-Process
in previous period
13.600 - 5.000 = 8.600
Cumulative: 15.200
Period and year-end closing

 CO Production Order – Period 2


Step 11 – Settlement (variant 1)
- Period-end closing
Status – RESULTS ANALYSIS CARRIED

Work In Order CO
Progress
FI Material
(WIP)
119460 430004 + 5.000,- 462001 - 5.000,-
943201 + 7.500,- 462001 - 7.000,-
6.600,- 400000 + 1.100,-
400000 + 5.000,-
Work In
Progress
(WIP)
462201
As WIP is reported as
6.600,- cumulative value.
Period and year-end closing

 CO Production Order – period 2


Step 12 – Calculation of Variances and Settlement (variant 2)
- Period-end closing
Status – TECHNICALLY COMPLETED
Price
Difference - Order CO
Production
FI Material
Difference
464018
430004 + 5.000,- 462001 - 5.000,-
6.600,- 943201 + 7.500,- 462001 - 7.000,-
400000 + 1.100,-
400000 + 5.000,-
Production
Output WIP WIP
462001 462201 119460 As a result of a posting the
balance of the order was
6.600,- 8.600 8.600 posted to production
Negative variance: difference account and
Actuals > Plan. cumulated WIP was
reversed.
Period and year-end closing

 Variance: Integration
CO-
Standard Cost Estimate Product Cost Collector PC
Material CATALYST
Materials Labour Depreciation Quantity prod.: 10 pcs
600 1.100 300
Actual Costs
Materials 800
Labour 1.200
Material Master Depreciation 400
Target Cost Ver. 0
Accounting View 2.400
Standard Price Price 150
10pcs * 200 Goods Receipt - 2.000
200 Quantity 50
Variance 400 Structure 200
Accounting
FI Price difference
Stock
2.000 400 Profitability CO-
Analysis PA
MM Stock
Settlement Variance 400
Period and year-end closing

Variance PA Assignment
Cost Element Group Value Field
Category lines

+
Period and year-end closing
CO-
PC
Product cost collector
Material: MEG
Period accounting
Quantity: 10 pieces Cost of goods sold
CO-
PC Revenue
Revenue
Actual costs – Sales deductions
– Sales deductions
– Manufacturing costs by
– Overheads plus Variances Actual costs 2.400,- standard price
(Contribution margin I)
+/- Change in Stock
Goods receipt -2.000,- – Variances
= Result of a period
= Result of a period
Variances/WIP 400,-

PrCtr 1

Company Code Profitability CO-


Company Code Profit Center EC-
FI
FI Segment PA
PCA
Settlement
Period and year-end closing

Periodic Costs Product Cost Collector


Item Plan Actual

Caustic Soda 1.500 1.800

Ethylene 2.000 2.200


Process costs
EDC 0.500 0.600

Materials 4,000 4,600

Internal activities 2.500 2.800

Overheads 1.500 1.600


Revaluation
Total 8.000 9.000

% %
Overheads
Period and year-end closing

Period-end closing

Process costs
Periodic
costs Revaluation

Overheads

Calculations Work-in-Process
and
analysis Scrap
Variances

Postings Settlement
FI/CO
Period and year-end closing
CO-
PC
Product cost collector
Material: MEG
Period accounting
Quantity: 10 pieces Cost of goods sold
CO-
PC Revenue
Revenue
Actual costs – Sales deductions
– Sales deductions
– Manufacturing costs by
– Overheads plus Variances Actual costs 2.400,- standard price
(Contribution margin I)
+/- Change in Stock
Goods receipt -2.000,- – Variances
= Result of a period
= Result of a period
Variances/WIP 400,-

PrCtr 1

Company Code Profitability CO-


Company Code Profit Center EC-
FI
FI Segment PA
PCA
Settlement
Period and year-end closing

Variance PA Assignment
Cost Element Group Value Field
Category lines

+
Material Ledger: Overview

Functions of Material Ledger:


 Cost accounting using actual prices
 Storing values of stock in three different valuations
(legal valuation, valuation for reporting purposes, and
profit center valuation) in multiple currencies.
Material Ledger: Overview

Functions of Material Ledger:


 Cost accounting using actual prices
 Storing values of stock in three different valuations
(legal valuation, group valuation for reporting purposes,
and profit center valuation) in multiple currencies.
What is the Material Ledger/Actual Cost
Concept?

The Material Ledger(ML) is a tool within the CO


Module that collects all transactional data for
materials whose master data is stored in the
material master. It acts as a subledger for selected
materials that captures all goods movements,
invoice values, transfers and price changes. On
the basis of this data, the material ledger
calculates and maintains the actual cost for these
materials. This actual cost can then be utilized to
valuate the material stock accounts.
Objectives of the Material Ledger

1. Actual Costing.
During the period, valuation of all goods movements is done
with the preliminary valuation price which is normally the
standard price. All variances from the preliminary valuation are
maintained in the ML. At period end, revaluation of ending
inventory can be performed with the determined actual price.
This is not mandatory. Actual prices can be calculated for
statistical purposes only.
2. Parallel currencies and/or valuations of material stocks.
All goods movements in the ledger can be maintained in 3
currencies. The values are translated into other currencies
using the historical exchange rates. Prerequisite for usage of
transfer pricing functionality.
Benefits of the Material Ledger

►Variances of Finished Goods


Variances from external procurement (purchase orders) as well
as from production activities are rolled up from raw and semi-
finished materials to the finished goods level.
►To provide support for procurement related decisions.
Detailed reporting for procurement processes and sources
possible. Make vs.. Buy, Vendor A vs.. Vendor B. Price History.
►Combines the benefits of Moving Average and Standard Price
Stable prices used for controlling purposes (standard) and actual
prices used for valuation purposes (average).
►Easy to use display and error finding by consolidating the views.
Allows quick access to detailed views of material master,
standard costs and documents
Benefits of the Material Ledger

►Relatively simple configuration and set up

►True Cost of Sales Accounting


Purchasing and production variances for unsold stocks are
inventoried.
►Contribution Margin with Actual Costs of Sales
By utilizing multi-level settlement, actual values for your cost
component split can be attained. This can be transferred to PA as
of release 4.6C
Single Level Settlement

Production
D Level

Production
D Level

External Procurement
Level
External Procurement
Level
D
Multi - Level Settlement

Production
D Level

Production
D Level Multi
-Level
External Procurement
Level
External Procurement
Level
D
Multi - Level Settlement

Production Material Valuation with


D Multi-Level Actual
Costing
 Preliminary Valuation
D During the Period
Production
D  Revaluation at Period
End with Actual Price

External Procurement D D External Procurement


D D
The ML updates the Material Master
The Integrated Material Ledger Display
Material Ledger Overview
Actual Costing
Revaluation of stock at
actual prices or accrual of
variances.
Material Ledger
MATERIAL STOCK

Parallel Valuations
(Transfer Prices)
Parallel Currencies  Group
Translation at historic rates  Legal
(up to three)
 Profit Center
ML Overview – Parallel Currencies

Material Ledger
(Valuation Area / Plant)
• 10 Local currency
• 30 Group currency

Financial Accounting Controlling


(Company Code) (Controlling Area)
• 10 Local currency • 10 Local currency
• 30 Group currency • 30 Group currency
ML Overview – Parallel Curr. in A Grp (1)

Material Ledger
Valuation Area (Plant) 9100
Price control

Material
Master

Price Control
Moving average price Standard Price
(V Price) (S Price)
• Changed after every receipt • Stable for long period
• Recommended for raw and • Recommended for finished
externally procured and semi-finished
materials. products.
Price control

Moving average price

 The stock value is adjusted each time are received


 Real-time price fluctuations are posted to stock
 Price difference postings only takes place in exceptional cases

 Price fluctuations can not be adjusted to the finished products of higher


levels (in case S price)
 Only recommended for raw materials or goods procured externally (real-
time price for goods receipt known)
 False entries with severe consequences (compounded errors)
 Danger of incorrect valuations with delayed invoice receipt
Price control

Standard Price

 All stock postings takes place with the standard price


 Price remains constant by at least one period
 Price fluctuations do not debit / credit the cost object
 Consistent controlling with the standard price as a bench mark
 Estimations of the standard prices with cost component split
 Recommended for all materials types

 Price differences can not be subsequently adjusted to the ending


inventories or the consumed products (very important in the Cost of Goods
Sold accounting)
Price determination control

Multiple currencies/valuations
Price control
ML can record up to 3 different
S V
V currencies / valuations. This is a
requirement for transfer price
Price determination
2 Standard Moving
Transaction based price price

3 Standard
Standard Cannot be Actual Costing
Single-/ multilevel activated
price determination price
Unit periodic manually Revaluation of stock at actual
price price
Price determination control

‘3’ ‘S’
Internal
Cost centers
orders
Orders
Level 3
Activity
types

‘S’
Internal ‘3’
Cost centers
orders
Orders
Level 2
Activity
types

‘2’ ‘V’

External Level 1
Procurement
Material Master - Price control

Material
Moving average price Master Standard Price
(V Price / 2 Activity-related) (S Price / 3 Single-/multi-
level)

Material ledger Price Control


is activated
Determination
Material Master - Parallel Currencies

Material Company Code: 5200


Master Valuation Area / Plant: 5200

Legal valuation
USD
Group valuation
SAR
Profit center
valuation
SAR
Material Master - Transparency

Material
Master
Actual Values Overview

 Actual data -> Actual Costing


 Overview
 Preliminary valuation price
 Actual Costing
Price differences
 Updating single-level variances
 Single-level price determination
 Multilevel price determination
Overview of differences
FI PA
-
SD
Purchasing,
PRD PRF
*
Stock
Movement,
Cost (price) GL (PL) 464017 Revenue Revenue
differences
Production PRA Price Diff -Purchasing M
St M -
Pri andar
ce d
PRU Co or S
ndi D
Typ n tio COGS COGS
e
- *
GL (PL) 464018 Input price
PRY variance
Material Ledger PRF Production Variance
Cost (price)
Closing - Single differences Input quantity
Level (mater.ledg PRA variance
er)
Resource-usage
PRU variance
* Remaining input
GL (PL) 464019 variance
-
Price Diff - Good
PRV Issue Mixed-price Production
PRF variance
Material Ledger Material Variances
Closing - Multi ledger Output price
Level Level fr.low.level PRA variance
s price dif.
* Lot size-/fixed-
PRU GL (PL) 4640020 cost variance
Price Diff -Transfer Remaining
Postings variance

Scrap Adjustment
Material Ledger UMB to COGS
Closing - Gain/loss
Release Future from Price Diff -
from
Price revaluation GL (PL) 464021 Purchasing capitalising
Gains/Loss on
Inventory Revaluation Price Diff - Good Variances
Issue
Price Diff - Adjustment to
Transfer Postings COGS from
Material Ledger LKW Gains/Loss on
Inventory
Accruals and
Closing - Do not
defer.acct(mat GL (BS) 119610 Inventory Revaluation
revaluate Stock erial ledger) ML Provisions Revaluation
Gross margin
Actual Values Overview

 Actual data -> Actual Costing


 Overview
 Preliminary valuation price
 Actual Costing
Price differences
 Updating single-level variances
 Single-level price determination
 Multilevel price determination
Preliminary valuation price

‘S’
Internal
Cost centers
orders
Orders
Level 2
Activity
types

‘S’
Internal
Cost centers
orders
Orders
Level 1
Activity
types

‘V’

External
Procurement

Actual Costs Preliminary valuation


Actual Values Overview

 Actual data -> Actual Costing


 Overview
 Preliminary valuation price
 Actual Costing
Price differences
 Updating single-level variances
 Single-level price determination
 Multilevel price determination
Actual Costing

 Price differences

 Stock transfers
(standard price in another plant)

 External procurement
(purchase order or invoice value)

 Internal production
(order settlement)
Actual Values Overview

 Actual data -> Actual Costing


 Overview
 Preliminary valuation price
 Actual Costing
Price differences
 Updating single-level variances
 Single-level price determination
 Multilevel price determination
Updating Single-Level Variances

‘S’
462001 464018
Internal .
Pr. . Inven.. Price diff.
Cost centers
orders
Orders

Activity
types

‘S’ 462001 464018


Internal
Cost centers . . .
Pr. Inven. Price diff.
orders
Orders

Activity
types

‘V’

‘V’
External
Procurement

Actual Costs Preliminary valuation


Actual Values Overview

 Actual data -> Actual Costing


 Overview
 Preliminary valuation price
 Actual Costing
Price differences
 Updating single-level variances
 Single-level price determination
 Multilevel price determination
Single-Level Price Determination

‘S’
119490 464017
Internal .
End. Inven.. Price diff.
Cost centers
orders
Orders

Activity
types

‘S’ 119430 464017


Internal
Cost centers . . .
End Inven. Price diff.
orders
Orders

Activity
types

‘V’ Price
differences
are not
External applicable
Procurement

Actual Costs Preliminary valuation


Actual Values Overview

 Actual data -> Actual Costing


 Overview
 Preliminary valuation price
 Actual Costing
Price differences
 Updating single-level variances
 Single-level price determination
 Multilevel price determination
Multilevel Price Determination

‘S’
119490 464017
Internal .
End. Inven.. Price diff.
Cost centers
orders
Orders

Activity
types

‘S’ 119490 464017


Internal
Cost centers . . .
End Inven. Price diff.
orders
Orders

Activity
types

‘V’ Price
differences
are not
External applicable
Procurement

Actual Costs Preliminary valuation


Period End Overview

 Actual Costing – Period End Closing Procedure


 Collecting price differences
On price difference accounts or in material ledger within categories
 Period closing program
Open new period in MM (transaction MMPV)
 Determining prices
Single-level, later multilevel
V price is calculated
 Making closing entry
Must be made for each period
Posting to prior period is no longer possible
Reversal if required
 With revaluation
Price differences are proportionally posted to the remaining stock -> Price
indicator ‘V’
 Without revaluation
Price differences are proportionally posted to the accruals account -> Price
indicator ‘S’
 Marking future price
Period End Overview – Closing Entry (1)
With Revaluation
Material: ACT-LCD## locked
Status: Closing entry performed
Price control: V (only old periods)
V price: 26.50 SAR / 100 units
Beginning inventory (BI): 1000 PC / 250 SAR
Goods receipt/purchase order : 1000 PC / 260 SAR
Invoice receipt : 1000 PC / 280 SAR Stock value :
Consumption: 1300 PC / 325 SAR 185.5 SAR
Ending inventory: 700 PC (700 PC * 26.50/100)

Material stock (119400) GR/IR allocation Vendor


250 325 260 260 280
250
CL 10.5
Material consumption
Price difference (464017) (400002) ML accrual (119610)
10 VB 325
CL 10.5
20
Period End Overview – Closing Entry (2)
Without Revaluation
Material: ACT-LCD## locked
Status: Closing entry performed
Price control: S
S price: 25.00 SAR / 100 units
Beginning inventory (BI): 1000 PC / 250 SAR
Goods receipt/purchase order: 1000 PC / 260 SAR
Invoice receipt: 1000 PC / 280 SAR
Consumption: 1300 PC / 325 SAR Stock value:
Ending inventory: 700 PC 175 SAR

Material stock (119400) GR/IR allocation Vendor


250 325 260 260 280
250

Material consumption ML accrual (119610)


Price difference (464017)
(400002)
10 CL 10.5 325 CL 10.5
20
Period End Overview – Periodic Unit Price

Period opened Receipts Single- level


( beginning inventory price determination

+ Periodic
unit
- price

Variances

Cumulative inventory (prelim. valuation) + Cumulative variances


Cumulative inventory

= Periodic unit price


Information System Overview

Materials
to be Product Cost
costed Planning
Reports

Summarized Object
Object
Analysis List Comparisons

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

 The Report can be used to


Report

 The Report can be used to


Report

 The Report can be used to


Report

 The Report can be used to


Report

 The Report can be used to


Information System Overview
Information System Overview

Object Detailed
List Reports

Displaying
Documents
Information System Overview

Materials
to be Product Cost
costed Planning
Reports

Summarized Object
Object
Analysis List Comparisons

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.
Information System Overview
Information System Overview

Object Detailed
List Reports

Displaying
Documents
Report Output Types
 Variable output areas
Graphical report-output  HTML-header
 Navigation by drag and drop and
context menu

 Various leads columns


Object List (ALV)
 Standard ALV Functions
Product Costing Information System

Overview of Reporting Tools


SAP REPORTING TOOLS

For executing existing reports and queries For creating new queries

Human Resource Information System (HIS) Ad Hoc Query

Manager's Desktop (MDT) SAP Query

Info systems in the SAP Easy Access Menu

BUSINESS INFORMATION WAREHOUSE

For executing existing queries For creating new queries

Business Explorer Browser Business Explorer Analyzer


Product Cost Planning Reporting
SAP Standard Reports

Customer report: Vehicles


SAP report:
SAP report: Employee List Customer report:
Telephone List
Distribution Channels

SAP report: Org. Units


Customer report: Buildings

SAP report: Events


Customer report: Insurance

SAP report: Birthday List

Ad Hoc Queries Custom-built Reports


Cost Object Reporting

SAP Standard Reports

Organizational management
standard reports menu path

Organizational management
standard reports
Material Ledger Reporting

 Some Standard Organizational Management Reports identified for


Sabic are:

 Structure Display/Maintenance

 Existing Organizational units

 Existing Positions

 Existing Unoccupied Positions