Co 20275091377345057 PDF

CONTROLLING (CO)
[Meghanath Reddy]
2011
CONTROLLING (CO)
CONTROLLING (CO)
This is used for internal reporting in Co organizational Hierarchy - Highest node is controlling
area. In FI Highest node is company, Company code
Areas to be covered:
1) Basic settings for controlling area
2) Cost element accounting
To update Co records / sub modules cost elements are required. There are two types of cost
elements
1. primary cost elements

2. Secondary cost Elements
3. Cost Center Accounting: This is used to view department wise costs. In organizations
we have no of cost centers.
Eg: Production cost center/ Service cost center / administrative cost centers
4. Internal orders: This is used to view costs for specific task.
Eg: Vehicle wise running expenses / Petrol expenses, Repairs to that Vehicle, Telephone
wise expenses production order costs / Exhibition costs.
Create each vehicle as n order and capture the costs
Production order:
Create production order as on internal order and capture the costs.
Exhibition costs: Sales men salaries, Advertisement discounts to customers

conveyance. Create a exhibition order
5. Profit center accounting: This is used to view profitability product wise / Division wise /
Location wise if business area is not used in FI
6 Product Costing: This is used for valuation if inventories

Eg: Finished goods and work in process.
Asreddy.ariga@gmail.com Page 2
7 Profitability analysis: This is used to view profitability for number of parameters at a
time.
Eg. Sales order wise / Customer wise / Product wise / Plant wise / Sales organization wise
profitability this is reporting tool
8 Material management (MM module to financial module integration
9 Sales & Distribution (SD) modules to financial module integration
10 Production module (PP) module to financial module integration
11 ECC6 new features
12 Capital work in progress line item wise settlement (Asset accounting)
13 Central Excise and sales tax
BASIC SETTINGS FOR CONTROLLING:

Maintain controlling area
FI Organization Structure CO. Organization Structure
Company Controlling
| |
Company code |
| |
Business area Cost Center
Scenario - 1
Company
|
Company code = Controlling Area
| |
Business area ---à Cost Center
(a)Controlling area at company code level, b) Business area will be assigned in cost centers.)
Scenario -2
Company = Controlling Area

| |
Company code |
| |
Business area ---à Cost Center
(a )Controlling area at company (group) level no. of company codes will have one
controlling area; b) Business area will be assigned in cost centers.
1) When management wants to view number of company codes cost centers data at a
time -
i) It is not possible in 1st Scenario
ii) It is possible 2nd scenario.
In report it will ask only one controlling area and not multiple controlling area.
2) When management wants to view number of cost centers data of company code -
i) Directly it is possible in 1st scenario.
ii) Also it is possible in 2nd Scenario - By creating cost center groups.
It means 2nd Scenario is more flexible.
3) When company codes activates are different it is better to go for 1st scenario
MAINTAIN CONTROLLING AREA:
Path: SPRO --------- > Controlling --------- > General controlling --------- > Organization --------- >
Maintain controlling area (Tr.Code is OKKP)
Double click maintain controlling area.
Select new entries button

When we go for 1st scenario
Company code : FSL (Fenner steels ltd)
Controlling area code also should be only FSL
When we go for 2nd scenario:
Controlling area code can be any code
In the beginning we go for 1st scenario
Controlling area : FSL

Name : controlling area for FSL
Company code to controlling area : Select controlling area same as company code
Currency type : select 10 company code currencies.
Once we select currency type10 currency field / Chart of Accounts filed / Fiscal year variant filed
will be updated automatically.
Cost Center standard hierarchy : FSLHIER
Save
Select yes button for the message system to create as a standard hierarchy
Select create request button
Short description : Co customization for FSL
Press enter
Press enter once again to save in the request.
Double click on assignment of company codes folder

Give the company code : FSL
Select save button or Ctrl+S
Press enter to save in your request
Double click on a activate components / control indicators folder
Fiscal year : 2011
Cost center : Select component active
Select A active type check box
Order management select component active.
Select profit center accounting check box
Save
Ignore the warning message press enter
COST CENTER STANDARD HIERARCHY:

When we create cost centers we have to specify under hierarchy we are creating cost centers
Cost center standard hierarchy : VSLHIER

|
Cost centers Dept. A Dept.B Dept.C
In reports:
We want to see only cost enter dept a we give Dept A
We want to see only cost center dept B data we give dept B
We want to see all cost centers data we give FSLHIER
MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS: (KANK)
1. CO through posting from FI (Business transaction - COIN

In fi
Salaries a/c dr 200000 cost center dept A
To bank 200000
1 fi document will be generated
1 Co document will be generated -COIN
INFI IN Co
Document type SA Business transaction COIN

| |
No range 01 |
|
No. range intervals 1-100000 1-00000
IN F-02 screen we post Manual posting Automatic posting
1. Repost Co line items (Business transaction -RKU3)
Option 1
Transfer document wise
Posting in FI
Salaries A/c Dr 500000 cost centers common 300000

Dept.A
150000 Dept.B
50000Dept C
To bank 500000 repost co line item
2 Documents will be generated
1 FI Document No Fi document
1 Co Document 1 Co document - RKU3
Total documents generated
1. FI Document
2. CO Documents
Transfer Line item wise
Salaries A/c Dr 500000 cost centers common 300000
Dept.A
150000 Dept.B
50000Dept C
Rent A/c Dr 100000 cost center Dept A
To bank 600000
Report costs (Business transactions - RKU1)
This is used when we split the cost center into number of cost centers or transfer for wrong
cost center postings.
No FI document will be generated
CO document only will be generated
Transfer cost element wise (GL Account wise)
Eg: We have cost center Dept A we have posted expenditure from 31st April to 30th June to split
the cost center Dept A into Dept A and Dept X from 1st July
Dept A Dept X
30/04/2011 400100 Salaries 100000

31/05/2011 400100 Salaries 125000
30/06/2011 400100 Salaries 150000
----------
400100 total 375000 30-6-2011 400100 Salaries
100000
30/04/2011 400101 wages 200000

31/05/2011 400101 wages 250000
30/06/2011 400101 wages 225000
----------
Total 400101 675000 30-6-2011 400101 wages
125000
30/04/2011 400300 Rent 150000
31/05/2011 400300 Rent 150000
30/06/2011 400300 Rent 150000
--------
400300 Total 450000 30/6/2011 400300 Rent
40000
Planning primary costs (Business transaction RKP1)
Planning cost center wise or no. range interval for all the types , budgeting cost center wise for
each cost element.
Path: SPRO --------- > Controlling --------- > General controlling --------- > Organization --------- >
Maintain number ranges for controlling document (T.Code is KANK)
Controlling area : VSL

Select maintain group’s button
From the menu select group -------- > Insert F6
Text : Co doc no. range interval for VSL
From number : 1
To number : 100000
Enter
Double click on COIN

Double click on RKU3
Double click on RKU1
Double click on RKP1
Select Co.No.range interval for VSL check box

From the menu select Edit --- --------- > Assignment element group
Save
Ignore the message press enter
Note : Usage of Version locked authorized person only Eg; Cost Accountant
MAINTAIN VERSIONS:
Versions are nothing but budgets
We have planned for the whole year version 0

After one month revise planned figure version 1
After 2 month revise planned figure version 2
After wards we can compare actual with Original budgets Version 0
Revised budget version 1
Re revised budget Version 2
Path: SPRO --------- > Controlling --------- > General controlling --------- >
Organization --------- > Maintain versions
Select version 0 (Plant /actual version)

Double click on settings for each fiscal year folder
Give the controlling area : VSL
Enter
Save
Once budgeting is completed at end user are a select version locked - So that nobody can
change budget figures.
Select bank arrow
Planning is made attend user area after planning’s completed we select version locked
check box , nobody can change planned figures.
COST ELEMENT ACCOUNTING:
To update CO records / sub modules cost elements are required
There are 2 types of cost elements
1. Primary cost element 2 Secondary cost elements

A)Primary cost elements are nothing but A)Secondary cost elements are other than
GL expenditure accounts general ledger accounts
Eg: 400100 salaries a/c
Created in Fi to be created as cost element
in co to update Co records
B) Posting to primary cost elements are B) Postings to secondary cost elements are
possiable not possible. They are used to allocations /
Settlements
Eg: cost center dept C dept A dept B
Service dept production dept
Salries 200000
Wages 300000
Power 100000
We allocate dept C cost to dept A and dept
B by using secondary cost elements
COST ELEMENT CATEGORIES
When we create a cost element we have to specify to which category the cost element belongs
cost element categories are given by SAP along with package 2 types of cost element
categories.
PRIMARY COST ELEMENT CATEGORIES:

1. Primary cost / costs redacting revenues. This used for expenditure accounts
3. Accrual / Deferral per surcharge: This is used for month end provisions only in CO
11. Revenues: This is used for income accounts
12. Sales Deduction: This is used for expenditure accounts like Trade discount / sales
commission where CO-Profitability analysis module is implemented
22. External settlement (Settlement from CO - FI): This is used for allocation of internal
order costs to GL accounts / assets (from Co to Fi).
SECONDARY COST ELEMENT CATEGORIES:
21. Internal settlement (Settlement from CO to CO) This is used for allocation of internal
costs to cost centers. (Co to Co)
31. Order/ Project Results analysis: This is used for work in process calculations is product
costing.
41. Overheads rates: This is used for calculation of raw material overhead rate /
Production overhead rate in product costing.
42. Assessment: This is used for allocation of primary cost element posing and secondary
cost allocations from one cost center to other cost centers.
43. Internal Activity Allocation: This is used for calculation of activity type’s rate in product
costing in production cost.
Eg: Machine hours rate / labor hour rate
21-7-2011
COST CENTER ACCOUNTING
This is used to view department wise costs we use cost center accounting.
In organizations there will be no.of cost centers
Eg: Production cost centers / service / administration cost centers
When we create cost centers we have to specify the cost center category i.e. whether it is a
production dept or service dept.
When we want to see no. of cost centers data at a time we create cost center group and assign
the respective cost centers
In the month end we allocate costs from one cost center to other cost centers the basis of
allocation may be amount basis / percentage basis / statistical key figures basis / activity type
basis
SAP has given 4 allocation methods
i) Assignment
ii) Distribution
iii) Periodic reposting
iv) Indirect activity allocation
Steps for postings to cost centers:

1) Creation of primary cost elements
A) FI Area |
B) CO Area |-à Co Area
C) Automatic creation |
2. Display cost elements created

3. Creation of filed status group by making cost center required entry field
4. Assign new filed status group in GL expenditure accounts
5. Creation of cost centers.
6. Creation of cost center groups.
7. Creation of cost element groups
8. Enter exchange rate for type M for INR to Euro
9. Posting of transaction in FI
10. To view cost center wise report.
11. To view CO documents
1. A) Creation of primary cost element at FI area

In some companies Fi persons only creates GL accounts as well as cost elements, the
transaction code FS00
Eg: earlier we have created 400100 salaries account now to create 400100 as primary
cost element.
Use to FS00 - GL masters creation

Give the GL account number : 400100 (Salaries Account)
Company code : FSL
Enter
Select edit cost element button
Valid from : 1-4-2011 to 31-12-9999
Press enter
G/L shrot text = cost element name
GL long test = cost element description
Cost element category : select 1 primary cost/ cost reducing revenues
Save
1. B) Creation of Primary cost element at CO area:

Fi person creates G/L accounts at FS00
He will inform to Co person to create that account as cost element.
Eg: created a/c 400300 rent account
He will inform Co person to create cost element Co person will create cost element at Co
area
Path: Accounting --------- > Controlling --------- > Cost element accounting --------- > Master
data --------- > Cost element --------- > Individual processing --------- > Create primary (Tr.code
KA01 )
Cost element : 400300 Rent Account

Valid from : 01.04.2011 to 31.12.9999
Enter
Cost element category : 1 (primary cost /cost reducing revenue)
Save
1C) Automatic creation of primary cost elements:
A company has gone for SAP FI in the year 2006 in this year they want to go for controlling
We have say 1000 accounts with data
To update controlling we have to create primary cost elements
1) Marked default settings (OKB2)
Path: SPRO --------- > Controlling --------- > Cost element accounting-Master data --------- >
Cost elements --------- > Automatic creation primary and secondary cost elements --------- >
Make default settings.(Tr.code is OKB2)
Give the chart of Accounts : FSL

Enter
Account from : 400301
Account to : 499999
Cost element category : select 1
Save
Press enter to save in your request.
Create batch input session (OKB3)

Path: SPRO --------- > Controlling --------- > Cost element accounting-Master data --------- >
Cost elements --------- > Automatic creation primary and secondary cost elements --------- >
Create batch input session (OKB3)
Give the controlling area : FSK

Valid from : 01.04.2011
Valid to : 31.12.1999
Session name : FSL
Execute
Execute batch input session (Tr code is SM35)
Path: SPRO --------- > Controlling --------- > Cost element accounting --------- > Master
data --------- > Cost elements --------- > Automatic creation primary and secondary
cost elements --------- > Execute batch input session
Select session name : FSL
Select process button
Select display errors only radio button
Select process button
We get a message processing of batch input session completed.
Ignore the message & select exit batch input button
Display primary cost elements created (KA03)
Path: Accounting --------- > Controlling --------- > Cost element accounting --------- >
Mater data --------- > Cost element --------- > Individual processing --------- >
Display- (Tr code is KA03)
Select drop down button beside cost element

Give the Controlling area : FSL
Enter
Creation of field status group by making cost center required entry field: (Tr.Code is
OBC4)
Earlier in Fi: we have created
400100 salaries account Field status group : G001
100000 Equity share capital Field status group : G001
Now if we make cost center required for field status group G001 for equity share capital
also it will ask what is the cost center
Now we use field status group G004 cost accounts make cost center field required
Transaction Code : OBC4

Select field status variant : FSL
Double click on filed status groups folder
Double click on field status group G004 cost accounts
Double click on General data
Text select it required entry field
Select next group button
Cost center select required entry filed
Select next page or page down button two times.
Business area select option entry filed
Save
Assign new field status group in GL expenditure accounts (FS00)
Give the GL account : 400100 salaries account

Company code : FSL
From the menu select GL account - --------- > change
Select create / Bank / Interest tab
Filed status group : G004
Save
Give the GL Account : 400300 Rent A/c

Company code : FSL
From the menu select GL account -- --------- > change
Change field status group : G004
Save
Creation of cost centers:
Path: Accounting --------- > Controlling --------- > Cost center accounting --------- >
Master data --------- > Cost center --------- > Individual processing --------- > create
(Tr.code is KS01)

Enter
Cost center : Dept A
Valid from : 01.04.2011 to 31.12.9999
Enter
Give the name : Dept A
Description : Cost Center Dept A
Person responsible : Mr. A
Cost center category : Select 1 production
Hierarchy area : select FSLHIER
Business area : FSLH
Currency : INR
One more cost center : Dept B

Valid from : 01.04.2011 to 31.12.9999
Reference cost center : Dept A
Enter
Change the name : Dept B
Description : Cost center Dept B
Person responsible : Mr. B
Other fields are common
Select save button
Cost center : Dept C
Valid from : 01.04.2011 to 31.12.9999
Enter
Change the name to : Dept C
Description : Cost center Dept C
Person responsible : Mr. C
Cost center category : Select to 2 (service cost center)
Select save button or Ctrl+s
Creation cost center groups:

Cost center area: FSL
I
Cost centers Dept A Dept B Dept C Dept X Dept Y Dept Z
Category Pro Prod Service Produ Produ Service
Business Area HYD HYD HYD BGL BGL BGL
If we want to see all cost centers data at a time we give Hierarchy - FSLHIER
If we want to see only production cost centers data - Create a cost center group and assign
Dept A . Dept B, Dept X and Dept Y.
If we want to see only HYD cost centers data - create a cost center group and assign Dept A,
Dept b and Dept C
If we want see only HYD production cost centers data - create A cost center group and
assign Dept A and Dept B
Master data --------- > Cost center group --------- > Create (Tr.code is KSH1)
Give the cost center group : FSLHYD PROD

Enter
Description : Hyderabad production cost centers FSL
Select Edit à Cost Center à Insert cost center button F4
Select the cost centers Dept A Dept B
Save
Creation of cost Element group:
In Fi we have account groups In Co we want to see Dept A
Personnel cost 400100-400199 Admin cost or Dept B
400100 salaries Personnel cost

400101 Wages Create cost element group personnel and
assign cost elements
400102 Bonus 400100-400199 create cost element group
400103 Insentives Administration and assign cost elements

400300-400399
Administration cost 400300-400399
400300 Rent
400301 Telephone exp
400302 Vehicle repair
400303 Petrol exp
In Co Report:
Cost center Dept A Dept B
Or
Cost center group FSLHIER FSLHIER
Cost element
Or
Cost element group ADMIN Personnel ADMIN Blank
Path: Accounting --------- > Controlling --------- > Cost center accounting --------- > Master
data --------- > Cost element group --------- > Create (Transaction code: KAH1)
Cost element group name : FSLADMIN

Enter
Description : Administration cost for FSL
Select insert cost element button (Shift+F4) (Edit -Cost element -Insert cost element)
From cost element : 400300
To : 400399
Save
To enter exchange rate for type M for INR to EUR (Tr.Code is OB08)
Exchange rate type : M (Average rate)
Valid from : 01.7.2011
From currency : INR
To : EUR
Posting of transaction in FI Transaction code: F - 02
Give the document date : Today’s date

Type : SA
Company code : FSL
Posting key : 40
Account : 400100 salaries account
Enter
Give the amount : 500000
Cost center : Dept A select
Text : Salaries posting
One more expenditure
Post key : 40
Account : 400300 Rent account
Enter
Amount : 100000
Text : Rent posting
Posting key : 50
Account : 200105 SBI current account
Enter
Amount :*
Text : Expenditure posting
From the menu select Document - --------- > Simulate
To view cost center wise report:
Path: Accounting --------- > Controlling --------- > cost center accounting --------- >
Information system --------- > Report for cost center accounting --------- > Line items --------
- > Cost centers: Actual line items (Transaction: KSB1)
Cost center : select Dept A

Select execute button
Keep the cursor on salaries line item
Select document button
Select back arrow
Select change layout button (Ctrl+F8)
Active the fields Business transaction, Document number, Reference Document number
Enter
To view co documents:
Information system --------- > Report for cost center accounting --------- > Line items ------
--- > Co documents: Actual costs (transaction code is KSB5)
Document no. : 1 to 100000

Execute
Report co line items:
Business transaction RKU3

FI doc.42
001 400100 Salaries Dr 500000 Ctc Dept A transfer 150000 Dept B
50000 Dept C
002 400300 Rent Dr 100000 Ctc. Dept A

003 200105 SBI 600000
1 Fi document Repost Co line items
1 Co document No Fi document
1 Co document --------- > RKU3
Transfer line item wise
Path: Accounting --------- > Controlling --------- > Cost center accounting --------- > Actual
postings --------- > Report line items --------- > Enter (Transaction code is KB61)
Select document no. : 42

Company code : FSL
Fiscal year : 2011
Execute
Double click on line item no.1
Amount under new account assignment : 150000
Cost center : Dept B
Select new item button
Select next button
Amount under new account assignment : 50000
Cost center : Dept C
Save
To view cost center report KSB1
Give the cost center : Dept A

Select change layout button
Active business transactions
Enter
To cost center element wise total
Select cost element column
Select subtotal button
Repot costs (Business transaction RKU1)
This is used when we split a cost center in to number of cost centers or wrong cost center
postings.
Only CO document will be generated
Transfer cost element wise (GL account wise)
Path: Accounting --------- > Controlling --------- > cost center accounting --------- > Actual
postings --------- > manual reporting of costs --------- > Enter (Transaction code is KB11N)
Cost center (old) : Dept A

Cost element : 400100 Salaries
Amount : 100000
Cost center new : Dept C
One more cost center (old) : Dept A
Cost element : 400300 Rent
Amount : 25000
Cost center (new) : Dept C
Enter
Select save button or Ctr+S
Period lock:
FI CO
A) Transaction which effect To open To open
FI and CO eg: Expenditure
posting COIN
B) Transaction which effect No check To open
only CO Eg: Repost co line
item RKU3, repost cost
RKU1
C) Transaction which effect To open No check
only FI Eg: Balance sheet
posting,Debit cash and
credit Equity share capital
Eg: In Fi we have opened periods from June’2011 to March’ 2012
In Co we have locked period for June’2011
We want to post since co period is not open
Environment --------- > Period lock --------- > change (Tr.code is OKP1)
Controlling area : VSL

Fiscal year : 2011
Select actual button
To lock April period Select period: 01
Select lock period button
Save
Out Set controlling area : (OKKS):
Environment --------- > Set controlling area
Give the controlling area : FSL

Enter
Real time integration of controlling with FI on line reconciliation ledger
This is used when we get for 2nd scenario (no.of company codes having one controlling area ) all
the company codes should use same Char of Accounts.
Planning cost center wise
Planning --------- > Cost and Activity inputs --------- > Change (KP06)
Version : select 0 (Original budget)
From period : 1
To period : 12
Fiscal year : 2011
Select next page or page down button
Cost center group : FSLHIER
Cost element From : 400000
Cost element To : 499999
Free Form Bsed

If we select free radio button If we select form based radio button
At the time of entry no cost element will On screen the cost element list is available
appear on screen we have to select from plant against cost elements
drop down list the cost element and plan
against the cost elements
Select form based radio button
Select overview screen button
For cost element 400100 Plan Fixed cost 3000000
Distribution key 1 Equal distribution
Select cost element 400100
From the menu select à Goto -Period screen
Select back arrow
For 400300 Rent a/c Plan fixed cost 720000
Distribution key 1
To plan for Dept B
Select next combination button
To go back to Dept A select previous combination button
Save
To view variance report cost center wise
Information system --------- > Reports for cost center accounting --------- > Plan /Actual
comparisons --------- > Cost centers: Actual /Plan/Variance (Tr code is S_ALR_87013611)

Fiscal year : 2011
From period : 4
To period : 4
Plan version : 0
Cost center Value : Dept A
Execute
Keep the cursor on Rent A/c actual costs amount
Select call up report button
Double click on cost centers: Actual line items
Keep the cursor on the first line item.
ONLINE RECONCILIATION LEDGER or REAL TIME INTEGRATION OF CONTROLLING WITH
FINANCIAL ACCOUNTING:
This is used when we go for 2nd scenario number of company codes having one controlling area
all company codes should use the same chart of accounts due to online reconciliation ledger a
document will be generated in Fi
Controlling area FSL

|
Cost centers: Dept A Dept B Dept X Dept Y
Company code FSL FSL FSL FSL
Posting of salaries in company code FSL:

Company code FSL FI records: Company code FCL FI records:
If salaries paid and posted FI at (F-02)
Salaries account Dr 200000 Dept A

To Bank a/c 200000
To view company code FSL ledger To view company code FCL ledger
Salaries account Dr 200000 Salaries account Nill
To view cost center report

Company code FSL cost center Company code FCL cost center
Dept A Dept X
Salaries a/c Dr 200000 Nill
Repost costs transfer 40000 from dept A to Dept X

No Fi document
Only Co document
To view Company code FSL ledger To view company code FCL ledger
Salaries a/c 200000 dr Salaries a/c Nill
To view cost center report

Company code FSL cost center Company code FCL cost center
Dept A Dept X
Salaries a/c Dr 200000 Salaries from A 40000 dr
Less transfer 40000
160000 Dr 40000 Dr
Due to online reconciliation ledger Fi entries will be generated automatically

FSL FI record FCL Fi Record
FCL a/c dr 40000 Salaries a/c Dr 40000
To salaries a/c 40000 To FSL a/c 40000
To View company code FSL ledger To view company code FCL ledger
Salaries a/c Salaries a/c
200000 Dr 40000 Cr 40000 Dr
To view cost center report:

Company code FSL Cost center Company code FCL Cost center
Dept A Dept X
Salaries a/c 200000 Dr salaries from A 40000 Dr
Less transfer 40000 Cr
To x 160000 Dr 40000 Dr
Fi Customization:
To copy company code FSL customization including accounts to company code FCL
Path: SPRO --------- > Enterprise structure --------- > Definition --------- > Financial
accounting --------- > Edit, copy, Delete, Check company code (T.Code EC01)
Double click on copy, delete, check company code

From the menu select organization object --------- > copy organization object
From Company code : FSL
To company code : FCL
Enter
Select Yes button for the message to copy GL accounts Master.
Select No button for the message to allocate a different local currency
We get a message certain data want s to copied----
Short description : Customization for FCL
Press enter
Enter once again to saving the request
Go on press enter till you got the message company code FSL copied to FCL without 93 number
range object
Select back arrow
Double click on edit company code data
Select position button
Give the company code : FCL
Enter
Select company code : FCL
Select details button
Change the company name : Fennar Cement limited
Select address button
Change the company name : Fennar Cement limited
Enter
Save and Save in your request button
Assign company code to company
Path: SPRO --------- >Enterprise structure ----------- > Assignment --------- > Financial
accounting --------- > Assign company code to company

Enter
For the company code : FCL assign company FGP (group name)
Document type SA should allow intercompany postings: (OBA7)
Select type : SA
Select intercompany postings check box
Save
Creation of GL Masters FS00
Company code FSL Records Company code FCL Records

1) FI/CO reconciliation account it can 1)FI/CO reconciliation account it can be
be under any expediter group but under any expenditure group but it
is should not be a cost element should not be a cost element
2) 400150 -Co/ Fi Reconciliation a/c 400150 -Co/ Fi Reconciliation a/c
Personnel cost Personnel cost
2) Fennar cement limited, current assets, 2 Fennar cement limited, current assets,
Loans & Advances 200160 Fennar cement Loans & Advances 200160 Fennar cement
Limited Limited
When we follow same chart of accounts, for number of company code account number and
description should be same if we create account 200160 in company code FCL it takes
description Fennar cemnts limited we can’t create our account in our books if we create 200161
in company code FSL it takes description Fennar steels ltd. We can’t create our account in our
books.
Creation of GL masters FS00
Give the GL account no. : 400150

Company code : FSL
Select with template button
Give the GL account o. : 400100 Salaries
Company code : FSL
Enter
Change short text & GL account long text : FI/CO reconciliation account
Select create / bank /interest tab
Field status group : ICCF CO < -> FI reconciliation posting
Save
Give the GL Account : 200160
Company code : FSL
Give the GL Account : 200120
Company code : FSL
Enter
Select type/Description /tab
Change short text : Fennar Cement Limited
GL account long text : Fennar Cement Limited
Select create / Bank/Interest tab
Filed status group change to G067
Save
Give the GL account : 400150
Company code : FCL
Company code : FSL
Enter & Save
Company code : FCL
Company : FSL
Enter
Select type / Description tab
Change short text : Fennar Cement Limited
GL long text : Fennar Cement Limited
Save
Prepare cross company code Transaction (Transaction code is OBYA)
Path: SPRO --------- > Financial accounting --------- > GL accounting --------- > Business
transactions --------- > Prepare cross company code transactions
Company code 1 : FSL

Company code2 : FCL
Enter
Postedin : FSL
cleared against : FCL
Debit posting key : 40
Account debit : 200160 ( Birla Steel Limited)
Credit posting key : 50
Account credit : 200160
Posted in : FCL
Cleared against : FSL
Debit posting key : 40
Account debit : 200161 Bilra Industries Limited
Credit posting key : 50
Account credit : 200161
Save
CO customization ( tr code is OKKP)
Maintain controlling area

Assign company FCL to controlling area FSL
Select controlling area : FSL
Company code to controlling area : Select cross company code cost accounting
Reconciliation ledger document type : SA (GL accounts document)
Save
Save in your request
Double click on activate components / control indicators folder
Select company code validation check box
Double click on assignment of company codes folder
Select company code : FSL
Select copy as button
Change the company code : FCL
Enter & save
Activate/ Deactive reconciliation ledger (Tr code KALA)
Path: SPRO --------- > Controlling --------- > Cost element accounting --------- >
Reconciliation ledger --------- > Activate / deactivate reconciliation ledger
Double click on activate reconciliation ledger
Select Execute button
Define adjustment accounts for reconciliation posting (Tr code is OK17)

Path: SPRO --------- > Controlling --------- > Cost element accounting --------- >
Reconciliation ledger --------- > Define adjustment accounts for reconciliation posting
Double click on define accounts for automatic postings
Select change account determination button
Save
Reconciliation account : 400150 FI/CO
Save
ECC6 CUSTOMIZATION
Define variant for real time integration:
Path: SPRO --------- > Financial accounting (new) --------- > Financial accounting global
setting (new) --------- > Ledger --------- > Real time integration of controlling with financial
accounting --------- > Define variants for real time integration

Variant for real time integration : F1
Select real time integration check box
Key date active from : 01.04.2011
Select account determination active check box
Document type : SA
Text variant for : FSL
Select cross company code check box
Select cross business area check box
Select cross profit center check box
Select cross segment check box
Save
Assign variants for real time integration to company code:
setting (new) --------- > Ledger --------- > Real time integration of controlling with financial
accounting --------- > Assign variants for real time integration to company code
Company code : FSL
Variant : F1
Company code : FCL
Variant : F1
Save
To make text filed optional for field status group G004 cost accounts (Tr.code is OBC4)
Select field status variant FSL
Double click on field status group’s folder
Double click field status G004
Double click on General data
Text select optional entry field
Save
Press enter to save in our request
Creation of cost center for company code FCL (KS01)
Give the cost center : Detp X

Valid from : 01.04.2011 to 31-12-9999
Reference cost center: Dept A
Enter
Change the name to : Dept X
Description : Cost center dept X
Person responsibility : MR X
Company code : FCL
Repost costs (F-02)
Cost center old : Dept A

Cost element : 400100 Salaries
Amount : 40000
Cost center new : Dept X
Save
To view FI documents (Tr.code is FB03)
Select document list button

Company code : FSL
Enter the date : today’s date
Execute
Double click on document no.43
Select back arrow
Chang the company code : FCL
Execute
Double click on document no.
CROSS COMPANY CODE POSTINGS
Company code : FSL FCL

Outstanding expenses of FCL paid by FSL
FSL Books FCL Books
FCL a/c Dr Outstanding exp Dr
To bank To FSL
FSL: Debit outstanding exp FCL 50000

Credit bank FSL 50000
Save
Use the Transaction code : F-02

Type : SA
Company code : FSL
Posting key : 50
Account no. : 200105 SBI CA
Enter
Amount : 5000
Text : Outstanding expense payment on behalf of FCL
Posting key : 40
Account no : 100500 (outstanding exp)
New company code : FCL
Enter
Amount : *
Text : +
From the menu select document - --------- > Simulate
Double click 3rd line item
Text : +
Save
Select continue buttons
FSL 44 FCL 2
If FSL posts the entry
Company code will be 000000000044 FSL11
If FCL posts the entry
Cross company code no. will be 0000000002 FCL11
Accrual orders (Imputed cost calculation)
This is used for irregular expenses like Bonus/Gratuity etc---

This is used for month end provision only in CO
This Cost element category should be 3 Accrual/ Deferral per surcharge
Define CO.No.range interval for business Transaction: KAZ1 - Actual cost center accrual
FI Month end provision

1. Accrual / Deferral document
i) Bonus provision 30-4-2011
Bonus A/c Dr. 10000 Cost center Dept A
To Outstanding exp. 10000
ii) Cost center Dept A expenditure will be allocated to production order stock valuation is
correct
iii) Reversal of provision on 1-5-2011
Outstanding Exp. Dr. 10000
To Bonus A/c 10000 Cost center Dept A
iv) Bonus provision on 31-5-2011

Bonus A/c Dr 20000 cost center Dept A
To Outstanding exp 20000
2. Open item management

i) Bonus A/c Dr. 10000 Cost center Dept A
To Outstanding exp. 10000
ii)Cost center Dept A expenditure will be allocated to production order- stock valuation is
correct
iii) Bonus provision on 31-5-2011
Bonus a/c Dr 10000 Cost center Dept A
To outstanding exp 10000
In Co: Accrual orders:
3rd Method:
i) Number of companies will not prepare profit and Loss account every month they will
not make provision in accounts every month
Expenditure from April to Feb will be less
ii) Companies follow accrual basis of accounting in the year end provision are to made in
accounts expenditure for March will be more.
iii) In SAP when we take production - production entry will be passed automatically based on
production cost for the month stock/production valuation from Apr to Feb will be less stock
/ production valuation for March will be heigh
iv) SAP has given accrual order it is similar to cost sheet create over head structure.
Salaries a/c 100000
Bonus 10% 10000 debit to cost center dept A
Credit to cost center dummy
No Fi document
Cost center Dept A
30-4-2011 bonus 10000 30-4-2011 allocation to production order 10000
Stock valuation is correct
Cost center dept dummy
30-4-2011 Bonus 10000
V) Every month end we follow the same procedure
30-4-2011 bonus 10000
31-5-2011 bonus 10000
I
I
31-3-2012 bonus 10000
120000
v) In the yearend bonus provision in accounts
31-3-2012
Bonus a/c Dr 120000 Cost center dept dummy
To outstanding exp 120000
31-3-2012 120000 30-4-2011 bonus 10000
30-5-2011 bonus 10000
I
I
31-3-2012 bonus 10000
120000 120000
Dept dummy will be zero
3-8-2011
Creation of GL master bonus account - personnel cost (FS00) group: -
Give the GL Account No. : 400105
Company code : FSL
Give the GL account no. : 400100 (salaries)
Company code : FSL
Enter
Change short : Bonus account
GL account long text : Bonus account
Save
Select edit cost element button (F8)
Valid from date : 01.04.2011 to 31.12.9999
Enter
Cost element category : Select 3 accrual deferral per surcharge
Save
Creation of cost center - Dept dummy (KS01)
Give the cost center : Dept dummy

Enter
Change name : Dept dummy
Description : Cost center Department dummy
Select save button
Define CO.no range interval

Transaction KAZ1-Actual cost Center accrual
Transaction Code KANK
Select maintain group button
Double click on KAZ1- Actual cost center accrual
Select CO.No range interval for FSL check box
From the menu select Edit ------- > Assigned element group
Save
Maintain overhead structure:
Path: SPRO --------- > Controlling --------- > Cost element accounting --------- > Accrual
calculation --------- > Percentage method --------- > Maintain overhead structure (Transaction
code is KSAZ)
Select create over head structure button (F7)
Over head structure : FSL1
Description : Bonus calculation
Select save button
Row : 10
Base : F1
Enter
Give the name : salaries
Select create button
Row : 20
O/H rate : F2
Name : Bonus
FR : 10
To : 10
Credit : F3
Enter
Save
Keep the cursor on overhead structure FSL1
Select assignment button (F5)
Select actual accrual radio button
Select continue button
Valid from : 1/2011

To : 12/2011
Overhead structure : FSL1
Save
Double click on overhead structure FSL1
Keep the cursor on Base F1
From the menu select Go to -------- > calculation base
Save
Kept the cursor on over head rate F2
From the menu select Go to --------- > overhead rate
Valid from : 1/2011
To : 12/2011
Actual Overhead rate : 10
Save
Keep the cursor on F3
From the menu select Go to --------- > credit
Company code : FSL
Valid to : 12/2011
Cost element : 400105
Cost center : Dept Dummy
Save
END USER AREA
1. Posting of salaries for the month of April F-02
Document date end posting date : 30.04.2011

Type : SA
Company code : FSL
Posting key : 40
Account no. : 400100 Salaries A/c
Enter
Amount : 100000
Text : Salaries payment
Posting key : 50
Account no : 200105 SBI current Account
Enter
Amount : *
Text : +
From the menu select document -------- > Simulate and save
2. Accrual calculation (KSA3)
Path: Accounting --------- > Controlling --------- > Cost element accounting ---------
> Actual postings --------- > Accrual calculation
Select cost center radio button
Period : 5
Fiscal year : 2011
Deselect test run check box
Select details list check box
Execute
Select next list level button
3. To View cost center report KSB1

Posting date : 01.04.2011 to 31.04.2011
Execute
Select back arrow
Execute
4. Bonus provision in the year end in FI Transaction F-02
Give the document date & Posting : 31.03.2012

Type : SA
Company code : FSL
Posting key : 40
Account no. : 400105 bonus account
Enter
Amount : 10000
Cost center : Dept dummy
Text : Bonus provision for the year 2011 - 12
Posting key : 50
Account : 100500 outstanding exp.
Enter
Amount : *
Text : +
Document --------> Simulate and save
To view cost center report KSB1

Posting date : 01.04.2011 to 31.03.2012
Execute
STATICALLY KEY FIGURES (SKF)
This is used as a basis for allocation of costs from one cost center to other cost centers.
Eg. Employee / Area/ Telephone calls
Cost center Dept C Dept A Dept B
(service Dept) (Production departments)
Salaries 200000 No.of employee
Wages 300000 Sq.meter area
Rent 100000
Telephone Exp 20000 No.of telephone calls
620000
Define CO. No range interval for the business transaction.

RKS (Enter statistical key figures)
SKF category: Fixed values
Total values
Fixed values Total values

If we select fixed value radio button the If we select total values radio button every
values are common for all the months in month we have to enter values
the year if we don’t change in between Eg: Telephone calls
Eg: Employee / Area
No.of Employees Dept A No.of Tele bills Dept A

April 200 200 Aprl 1000
May | | May 1500
June | | June 800
July | | July
Aug | | Aug
Sep | | Sep
Oct | I Oct
Nov I I Nov
Dec 200 250 Dec
Jan | | Jan
Feb | | Feb
March | | March
Define co.no range interval for the business transaction RKS-Enter Statistical key figures
Transaction Code is (KANK )

Double click on RKS
Select Co.No.range interval for FSL check box
From the menu select Edit ------- > Assignment element group.
Save
Ignore the warning message press enter.
Create Statistical key figures
master Data --------- > Statistical key figures --------- > Individual processing --------- >
Create (Tr.Code is KK01)
enter
Give the statistical key figure : EMP
Enter
Give the Name : Employee
Statistical key figure unit of measurement: Select EA each
Key figure category : Select fixed values radio button
Save
Enter statistical key figures:

Path: Accounting --------- > Controlling --------- > Cost Center accounting --------- >
Actual postings --------- > statistical key figures --------- > Enter (Tr.code is KB31N)
Received cost center : Dept A

Statistical KF : EMP
Total quantity : 200
Received cost center : Dept B
Statistical KF : EMP
Total quantity : 50
Save
Period end closing

In the month end, we allocate costs from one cost center to other cost centers
Dept C Dept A Dept B

(Service department) (Production departments)
Salaries 200000 No. of employee

Wages 300000
Rent 100000 Percentage basis
600000
Basis of allocation can be percentage basis /amount /statistical key figures basis /activity type
basis
SAP has given 4 allocation methods
Allocation methods:
i) Assessment :
ii) We can transfer primary cost postings and secondary cost allocations
Dpt X Dept C Dept A Dept B
Wages 150000 Salaries 200000 Salaries 400000 wages 500000
less Wages 300000
allcn -150000 Rent 100000
Add: Add:
Allcn X 150000 Allcn C 670000 Allcn 75000
75000
Less:
Allcn A 90% -675000
Allcn B 10% -75000 ………………… ……………
0 0 1075000 575000
In dept C we have
Direct postings primary cost postings salaries / wages / rent transfer from X - secondary cost
allocation
iii) Receiving cost center cannot track the original cost elements
Dept A received from C 675000 it will not show how much is salaries portion of C/ allocation
to C from X portion
iv) Define Co no. Range interval for the business transaction RKIU actual overhead assessment
v) Sender should be only cost center
2. Distribution
i) We can Transfer only primary cost postings
ii) Receiving cost center can track original cost elements.
iii) Sender should be only cost center
iv) Define Co.No.range interval for the business transaction RKIV actual overhead
distribution.
3. Periodic reposting:
i) We can Transfer only primary cost postings
iii) Sender can be a cost center or order.
iv) Define Co.No.range interval for the business truncation.
RKIB periodic reposting.
4. Indirect activity allocation.

i) We can Transfer only primary cost postings.
iii) Sender should be only cost center.
iv) We can Transfer quantities as well as values.
v) Define Co.No.range interval for the business truncation.
RKIL Indirect activity allocation.
Whichever method we follow, we have to create cycles.
Where the basis of allocation of cost elements in the cost center is different we have to create
number of cycles or number of segments under a cycle.
Create no. of segments under a cycle:

Eg:
Cost center Dept C Dept A Dept B
(Service Department) (Production departments)
Salaries 200000
Wages 300000 No.of employees (skf)
600000
Option 1:
Create no of cyles:
Cycle 1
(Assessment cycle)
|
Segment 1
(Salaries and wages allocation)
400100 salaries account
400101 wages
Option 2
Cycle 12
(Assessment cycle)
|
Segment 1
(Rent allocation)
400300 Rent
Option 2:
Create no.of segments under a cycle
Cycle 1
(Assessment cycle)
|
----------------------------------------------
| |
Segment1 Segment2
(Salaries and wages allocation) (Rent allocation)
40100 salaries account 400300 Rent
400101 wages account
ASSESSEMENT Method
1. Creation secondary cost element : i.e (that is) assessment cost element :
Path: Accounting --------- > Controlling --------- > Cost element accounting --------- >
Mater data --------- > Cost element --------- > Individual processing --------- > Create
secondary (KA06)

Enter
Valid from : 01.04.2011 to 31.12.9999
Enter
Name and description : Assessment cost element.
Cost element category : 42 (Assessment )
Save
2. Define Co.No.range interval for the business truncation- RKIU-Actual overhead

assessment
Use the Truncation code : KANK

Double click on RKIU
Select Co.No.range interval for FSL check box
From the menu select Edit ------ > Assignment element group.
3. Creation of assessment cycle:
Accounting --------- > Controlling --------- > Cost center accounting --------- > Period and
closing --------- > Current settings --------- > Define assessment (Tr.code S_ALR_87005742)
Give the cycle : FSL1

Start date : 01.04.2011
Enter
Text : Assessment cycle for FSL
Select iterative check box.
Select iterative check box

Dept C
wages 200000 Dept A 50% 100000 7000
Dept B 30% 60000 4200
Less : Allocation 200000 Dept Z 10% 40000 2800
0
Add: Allocation 14000

Less: Allocation 14000
0
Dept X
Salaries 100000 Dept Y 40% 56000
Add: Allocation 40000 Dept Z 50% 70000
Dept C 20% 14000
140000
Less : Allocation 140000
0
Add allocation 2800
We have to run number of items till both cost center values become zero. If we select
interactive check box, system will automatically no. of times till they become zero.
Select attaché segment button.

Segment name : Segment 1
Description : Salaries allocation
Assessment cost element : select 1000000
Sender rule : select posted amounts
Share in % : 100
Select actual value origin radio button
Receiver rule : Select variable portions
Variable portion type : Select actual statistical key figures
Select sender / receivers tab
Sender cost center : Dept C
Cost element : 400100 (Salaries a/c)
Under Receiver cost center group : BILHYDPRD
Select receiver tracing factor tab
Statistical key figure : EMP
Select receiver weight factors tab
Select save button or Crl+S
Select attaché segment button
Segment name : Segment 2
Description : Rent allocation
Assessment cost element : 1000000
Sender rules : Posted amount
Sharing in % : 100%
Select actual value origin radio button
Select receive rule : Fixed percentages
Select senders/ receivers tab
Sender cost center : Dept C
Cost element : 400300 (Rent )
Receiver cost center group : BILHYDPRD
Select receiver tracing factor tab
Dept A 40
Dept B 60
Save
To view cost center Report (Tr code - KSB1)
Give the cost center : Dept C

Posting date : 01.7.2011 to 31.7.2011
Execute
Select cost element column
Select sub totals button
Eg:
Dept C A B
Salaries 1500000 No.of employees(skf)
200 EMP 50 EMP
120000 30000
40% 60%
10000 15000
175000
Assessment Run:
Period end closing --------- > Single functions --------- > Allocations --------- > Assessment
(KSU5)
Give the period : 4 (July)

Fiscal year : 2011
Deselect text run check box
Select details list check box
Cycle select : FSL1 (select)
Execute
Select receiver button
INTERNAL ORDERS
This is used to view costs for a specific task.

Eg.1) Vehicle wise running expenses
In an organization they have 10 vehicles the Management has to decide whether to sell a
particular vehicle (or) keep the vehicle in company
A) petrol expenses for the vehicle B) Repairs to the vehicle
In FI -we will not create each vehicle wise separate expenditure accounts we will not get
vehicle wise total running expenses.
In CO cost centers - all vehicles will be under administration cost center here also we will not
get vehicle wise total running expenses in administration cost center we get other
administration expenses along with vehicle expeses.
Creating vehicle order and get the costs.
2. Telephone expenses:
In a company they have 50 telephones they give reimbursement to some employees
management wants to know telephone wise expenses.
In Fi we will not create telephone wise separate expenditure accounts we will not get
telephone wise expenses
In Co cost centers: all telephones will be under administration cost center here also we will
not get telephone wise expenses.
Create telephone order and capture the cost.
3. Production order costs

In a month no. of production orders will be completed. Some production orders consume
more raw material and same production orders consume less raw material.
If FI we have only raw material consumption account - We don’t get production order wise
cost .
By crating production order, we can get order wise costs.
4. Exhibition costs
Company is conducting in an exhibition
Salesmen salaries will go to salaries account
Conveyance to sales men will go to conveyance a/c
Advertisement for the exhibition will go to advertisement a/c
Discounts given to customers in exhibition will go to discount a/c
Now Management wants to know the exhibition costs we can’t get in Fi
By create Exhibition order we can get exhibition costs
Orders are of 2 types
1) Real orders 2) Statistical orders
i) In case of real orders settlement i) Incase of statistical orders settlement not possi-
Is possible ble
ii) Used for information / reporting purpose.
We can settle order

To Cost Center
From oreder to Co to Co
Internal settlement
GL Accounts / Assets
(From CO to FI)
(External settlement)
Allocation of costs In
Order is called settlement
At the time of posting when we give number of costs objects one will be real and others will be
statistical
Eg. Telephone expenses Dr 20000 Cost center Dept A

Order Tel no.66611983
To Bank 20000
After wards costs will be allocate to production
Orders
We can’t allocation to production order 20000+
20000 we have to allocate only Rs 20000
The cost will be allocation to production orders
from CO
At the time of order creation there is a statistical order check box.
A) When we select statistical order is statistical order check box.
i) Order will be statistical
ii) Cost center will be real expenditure will be allocated form cost center to
production order
B) When we don’t select statistical order check box

i) Order will be real from order expenditure will be allocated to production order
ii) Cost center will be statistical
Statistical order:
Telephone order we create as statistical order.
Telephone expense Dr 20000 Cost center Dept A

Order Telephone no.66611983 Statistical
To Bank 20000
Cost Center Dept A
Telephone expenses 20000 Allocation to production order 20000
Cost center value will be Zero
Order telephone no.6661193

Telephone expenses 20000
Management can see telephone expense at any point of time

If it is cancelled as real order.
Telephone exp Dr 20000 cost center dept A
To bank 20000 order tell 66611983 real order
Cost center dept A

Telephone Expenses 20000 Order Telephone no.6661193
Telephone expenses 50000 Allocation to production 20000
Order value will be zero
Management can’t see telephone wise expenses after wards
Define order types:
Path: SPRO --------- > Controlling --------- > Internal orders --------- > order master data
--------- > Define order types (KOT2_OPA)

Order category : Select 01 Internal order (Controlling)
Enter
Order type : FSLT
Description : Telephone orders for FSL
Planning profile : select 000001 (General budget /plant profile)
Object class : Select Over head cost
Select release immediately check box
Save
We get message no. range not processed
Ignore the message press enter save request
Select assign /change interval button beside no. range interval
Double click order type : FSLT
Select motor pool A-ZZZZZZZZZZZZ(External check box)
From the menu select Edit à Assign element group
Save
Creation of filed status group by making cost center and order required entry fields (OBC4)
Select field status variant FSL

Double click on field status group folder
Select field status group G004 cost accounts
Change the field status group to G002
Change the text : cost accounts (CC & IO required) IO =Internal order
Enter
Save CC=Cost Center
Double click on G002
Double click on additional account assignment
CO / PP order select required entry field.
Save
Creation of GL master telephone expense (FS00)
Give the GL account no : 400305

Company code : FSL
GL account : 400300 Rent account
Company code : FSL
Enter
Change short text : Telephone expenses
GL a/c long text : Telephone expenses
Select crate / Bank/Interest tab
Change the field status group: G002
Save
Valid from date : 01.04.2011
Enter
Cost element category : Select 1
Save
Creation of Internal orders:
Path: Accounting --------- > Controlling --------- > Internal orders --------- > Master data ----
----- > Special functions --------- > Order --------- > Create (Tr code is KO01)
Order type : FSLT

Enter
Order no. : FSL 66611983 (Telephone no.)
Description : Telephone order no.66611983
Company code : FSL
Select control data tab
Select statistical order check box
Save
Creation order group
Path: Accounting --------- > Controlling --------- > Internal orders --------- > master data the
path is same --------- > Order group --------- > Create (Tr code is KOH1)
Give the order group : FSLHYDTEL
Enter
Description : FSL Hyderabad order group
Select insert order button
Select to orders : FSL66611983
: FSL66626246
Save
Posting of transaction in FI (F-02)
Document date : Today’s date

Type : SA
Company code : FSL
Posting key : 40
Account no. : 400305 Telephone exp
Enter
Order : FSL66611983
Text : Telephone expenses
Posting key : 50
Account no. : 200105 (SBI current account )
Enter
Amount : *
Text : +
From the menu select -Document - ----- > Simulate and save
To view internal order wise report
Path: Accounting --------- > Controlling --------- > Internal order --------- > Information
system --------- > Reports for Interval orders --------- > Line items --------- > Order ---------
> Actual line items (Tr. Code is KOB1)
Give the order no.BIL66611983
Execute
Keep the cursor and telephone expense
Planning order wise
Path: Accounting --------- > Controlling --------- > Internal orders --------- > Planning --
------- > Cost and activity inputs --------- > Change (KPF6)
Version : 0
From period : 5 (Auguest)
To period : 5
Fiscal year : 2011
Give the order no. : FSL66611983
Cost element : 400305 Telephone expense
Select over view screen button
Total plan cost : 25000
To view variant report order wise
Path: Accounting --------- > Controlling --------- > internal order --------- > Information
system --------- > Reports for internal order --------- > Plant /Actual comparisons --------- >
Order: Actual / plan / Variance (S_ALR_87012993)

Fiscal year : 2011
From period : 5 (Current month)
To period : 5
Plan version : 0
Order values : FSL66611983
Execute
Real orders:
Vehicle order we create as real order
Petrol expenses Dr 10000 Order no.AP9Z1234

To Bank 10000
In the month end settlement:

Order AP 9Z1234 costs
Cost center Dept A
Order no.AP9Z1234 Settle to Cost center Dept B
Cost center Dept C
Settlement can be percentage basis / ratio basis /Amount basis
Order No AP9Z1234
Petrol expenses 10000 settle to cost center Dept A 5000
Dept B 3000
Dept C 2000
------- ------
10000 10000
==== ====
Order AP9Z1234 value will be zero

Management can’t see vehicle wise expenses after wards
Or
Petrol expense Dr 10000 Cost center: admin

Order No.AP9Z1234 Statistical order
To Bank 10000
Cost center admin
Petrol Expenses 10000 Allocation to Dept A 5000
Dept B 3000
Dept C 2000
--------- -------
10000 10000
==== =====
Cost center value will be zero
Order AP 9Z1234
Petrol exp 10000
Management can see at any point of time vehicle cost.
Creation of filed status group by making only order required entry filed (OBC4)
Select filed status variant : FSL

Double click on filed status group folder
Select field status group : G002
Change field status group : G010
Change the text : Cost accounts (IO required )
Enter and save
Double click on G010
Double cock additional account assignments
Cost center select optional entry field
Save
Creation of GL master petrol expense under administration group (FS00)
Give the GL Account no. : 400310

Company code : FSL
Give the GL account no. : 400300 Rent account
Company code : FSL
Enter
Change short text : Petrol expenses
GL acct long text : Petrol expenses
Select create/bank /interest tab
Field status group : G010
Save
Valid from date : 01.04.2011
Enter
Cost element category : 01
Save
Creation of secondary cost element i.e. Statement cost element (KA06):
Give the cost element : 1000001

Enter
Name and description : settlement cost element
Cost element category : Select 21 internal settlement
Save
Creation of allocation structure:
Path: SPRO-Controlling --------- > Internal orders --------- > Actual posting --------- >
Settlement --------- > Maintain allocation structures

Allocation structure : F1
Text : FSL allocation structure
Save
Select : F1
Double click assignments folders
Assignment : 01
Text : Vehicle expenses allocation
Save
Select : 01
Double click on source folder
From cost element : 400310 Petrol expenses
Save
Double click on settlement cost elements folder
Receiver category : Select CTR cost center
Settlement cost element : 1000001
Save
Vehicle expenses i.e. 400310 petrol expenses to be allocated to cost element 1000001.
Maintain settlement profiles:
Path: SPRO --------- > Controlling --------- > Internal orders --------- > Actual posting ---------
> Settlement --------- > Maintain settlement profiles
Double click on maintain settlement profiles
Settlement profiles : FSL1
Description : FSL settlement profile
Allocation structure : F1
Select to be settled in full radio button
Default object type : CTR cost center
Select % settlement check box
Select equivalence number check box
Select amount settlement check box
Under valid receivers
For cost center : Select settlement required
Max.no. distribution rules : 999
Residence time : 12 months
Save
Maximum no of distribution rules 999 in live environment cost account will prepare the
settlement rules before doing the settlement he will take Sr. person approval and execute the
settlement
Create rules in system up to 999 Max. Sr. person will not be available immediately store in the
system up to 12 months max.
Rule 1:
Order no.AP9Z1234 cost 10000 settle center Dept A 5000
B 3000
C 2000
Rule 2
Order no.AP9Z1234 cost 10000 settle center Dept A 40%
B 50%
C 10%
Rule 3
Order no.AP9Z1234 cost 10000 settle center Dept A 3:
B 5:
C 2
Maintain number range for settlement documents:

Path: SPRO --------- > Controlling --------- > Internal orders --------- > Actual posting --------- >
Settlement --------- > Maintain number range for settlement documents (Tr.code is SNUM)

Double click on FSL
Select Standard accounting document check box
From the menu select Edit à Assign element group
Save
Define order type (KOT2_OPA)

Order category : Select 01 Internal order (controlling)
Enter
Give the order type : FSLV
Description : Vehicle order type FSL
Settlement profile : FSL1
Budget profile : 000001 (General budget profile)
Object class : Overhead costs
Select release immediately check box
We get a message no. range not process e
enter
Save
Ignore the message press enter save in your request
Select assign /Change intervals button beside no. range interval
Double click on FSLV
Select motor pool A-ZZZZZZZZZZZZZZ external check box
From the menu select Edit ------ > Assign element group.
Save
Define co.no.range interval for the business truncation K0A0-Actual settlement. Use the
transactions code (KANK)

Double click on KOAO actual settlement
Select co.no.range interval for FSL check box
From the menu select Edit --- --------- > Assign element group.
Save
END USER AREA:
Creation of internal order (KO01)

Give the order type : FSLV
Enter
Give the order : AP9Z1234
Description : Vehicle no.AP9Z1234
Company code : FSL
Deselect statistical order check box
Select settlement rule button
Category : CTR cost center
Settlement receiver : Dept A
Give the percentage % : 50
One more
Category : CTR
Settlement receiver : Dept B
Percentage % : 30
Category : CTR
Settlement receiver : Dept C
Percentage % : 20
Save
Posting of petrol exp F-02

Type : SA
Company code : FSL
Posting key : 40
Account no. : 400310 petrol exp.
Enter
Give the order no. : AP9Z1234
Text : Petrol exp.
Posting key : 50
Account no. : 200105 SBI current account
Enter
Amount :*
Text :+
From the menu select menu document ------- > Simulate and save
Actual settlement :
Path: Accounting --------- > Controlling --------- > Internal order --------- > Period end closing
--------- > Single functions --------- > Settlement --------- > Individual processing (K088)
Give the order : AP9Z1234

Settlement period : 5 (current month)
Fiscal year : 2011
Select check transaction date check box
Select details list button
We have posted to order AP9Z1234 10000

I
Create order with FSKV and in the oreder to Dept A 50%
Specified B 30%
C 20%
I
In order type FSLV given settlement profile FSL1
I
In settlement profile FSL1 kept the options open percentage/ Ratio / Amount specified receiver
will be cost center assigned allocation structure F1
I
In allocation structure F1 specified vehicle expenses 400310 cost to be allocated to cost centre
by using secondary cost element 1000001
BUDGETING AND AVAILABILITY CONTROL
Planning Budgeting
i) Planning will be made each cost i) Budget will be made order wise
element wise in the order
ii) Planning will be made period wise in a ii) Budget will be made year wise
year
iii) Micro level iii) Macro level
For budgeting SAP has given

availability control
Order AP9Z1234
For year 2011 budget amount 100000
Option :1 Option: 2 Option: 3
Message Message to Error
to user user and message
inform to
budget
manager
If actual amount exceeds 90% of budget i.e.90000

Or
If the variance is above 20000 i.e actual 120000
Or
Both Whichever activity comes first i.e 90000
Some companies:
If actual amount exceeds 50% of budget go for option1
If actual amount exceeds 90% of budget go for option 2
If actual amount exceed 100% of budget go for option 3
When we do budgeting it generate a Co document -to give No. range interval only for 04 for
budgeting (Hard coded by SAP)
No. range interval is given at client level amt not controlling area level it is not year specific
Maintain no. range for budgeting:
Path: SPRO --------- > Controlling --------- > Internal orders --------- > Budgeting / availability
control --------- > Maintain no. ranges for budgeting (Tr code is OK11)
Select change intervals button
Define tolerance limits for availability control
control --------- > Define tolerance limits for availability control
Profile : select 000001 General budget profile
Tr.group : ++ all activity groups
Action : select 2 warning with mail to person response
Usage : 90
Save
Specify exempt cost elements from availability control

control --------- > Specify exempt cost elements from availability control
AP 9Z1234 Budget amount 100000
We have considered:
Driver’s salary is fixed cost or known cost
Petrol expenses
Repairs
Insurance
Depreciation
We can give a condition if we post to a/c no 400100 drivers salary a/c it exceeds 90% of budget
don’t give warning and message to budget manager.

Cost element : 400100 Salaries account
Save
Maintain budget manager

control --------- > Maintain budget manager

Order : FSLV
Object class : OCOST (Overhead cost)
User name : SAPUSER (budget manager)
Save
END USER AREA
Budgeting order wise
Path: Accounting --------- > Controlling --------- > Internal order --------- > Budgeting ---------
> Original budget --------- > Change (Tr code is K022)
Enter
Order : AP9Z1234
Select original budget button
For the period 2011 budget amount : 100000
Overall budget : 100000
From the menu select Extras --------- > Availability Control --------- > Activate
Save
Posting of petrol expenses (F-02)
Budget amount 100000

If it excess 90%
Less: already posted for real order 1000/80000 then it gives message
If actual amount exceeds

Type : SA
Company code : FSL
Posting key : 40
Account no. : 400310 Petrol expenses
Enter
Order : AP9Z1234
Text : Petrol expense
Posting key : 50
Enter
Give the amount :*
Text :+
From the menu select Document - --------- > Simulate and save
To view in box of the budget manager

Path: SAP Menu --------- > Office -------- > Work place (Tr code is SBWP)
Select inbox folder
We get a message accounting document no.
PROFIT CENTER ACCOUNTING

This is used to view profitability division wise /product wise /location wise if business area is
not use in FI
2 scenarios
1st scenario
HYD Location Business area and

| Profit centre
----------------------------------------------------
| | |
Steel Cement Pharma
Division Division Division
2nd scenario
HYD BGL MOM Business area

| | | or
Steel Cement Pharma profit center
The advantage of profit center accounting is it derives profit center automatically though
derivation rules.
A) In case of expenditure Tough cost centers
B) IN case revenues Automatic account assignment
C) In case of balance sheet itmes for sundry debtors and creditors balance sheet
adjustment to run other accounts at the time of
posting we can select.
Eg: cost centre dept A
Cost centre dept A is working for profit center steel assign steel profit center in cost center dept
A
At the time of posting to salaries in dept A

Salaries a/c Dr 200000 cost center dept A
To Bank 200000
Once we save cost center dept A will be updated with 200000 also profit center steel will be
updated with 200000 due to derivation rule.
We have to create dunning profit center. At the time of posting, if there is no derivation rule for
any transaction, system automatically updates dummy profit center. Then we transfer form
dummy profit center to respective center also Create derivation rule so that future transactions
will go to respective profit center and not go to dummy profit center.
Set controlling area (OKKS)
Path: SPRO --------- > Controlling --------- > Profit center accounting --------- > Basic settings
--------- > Set controlling area
Enter
Maintain controlling area settings: (OKE5)
--------- > Controlling area settings --------- > Maintain controlling area settings
Standard hierarchy : FSL

Select elimination of internal business volume check box
Profit center local currency type : Select 20 Controlling area currency
Select confirm button
Select store truncation currency check box
Save
Elimination of internal business volume
Purchase Material no. 1 Profit center steel

Order Vendor no. 1234
| Plant HYD
| Profit center Steel
| Qty 1 Kg
| Rate 200
Goods
Receipt
When we receive 1kg material at Rs 200 our profit center steel should not up date with
200+200- it has to take only Rs 200.
Create dummy profit center
Path: SPRO --------- > Controlling --------- > Profit center accounting --------- > Master data --
------- > Profit center --------- > Create dummy profit center(Tr code is KE59)
Double click on dummy profit center
Give the dummy profit center : FSL dummy
Select basic data button
Name : FSL dummy
Description : Dummy profit center for FSL
Profit center group : FSL
Save
Set control parameters for actual date:
--------- > Controlling area settings --------- > Activate direct postings --------- > Set control
parameters for actual data (Tr code is 1KEF)

From year : 2011
Select Line items check box
Select online transfer check box
Save
Maintain plan versions:
--------- > Controlling area settings --------- > Activate direct postings --------- > Plan version
--------- > Maintain plan version
Select version : 0 Plan /Actual Version
Double click on settings for profit center accounting folder
Year : 2011
Select online transfer check box
Select line items check box
Exchange rate type : B (bank selling rate)
Save
Define no. ranges for local documents:
We have cost center dept A

Cost center dept A is working for profit center steel
We have not assigned profit center steel in cost center dept A
We have posted entry
Salaries a/c Dr 100000 cost center Dept A
To Bank 100000
It updates cost center dept A
It updates profit center dept dummy
After wards we transfer values from dummy profit center to profit center steel

No co document will be generated
Only profit center document will be generated.
Path: SPRO --------- > Controlling --------- > Profit center Accounting --------- > Actual postings
--------- > Basic settings: Actual --------- > Define number ranges for local documents (Tr
code is GB02)

Select actual document from direct posting with GB01 check box
From the menu select interval àMaintain
Enter
Select interval button
Year : 2011
From no :1
To : 100000
Enter and save
Ignore the warning message
Press enter
Select back arrow
Select planned doc.with direct posting with GB01 check box
Form the menu select interval --------- > maintain
Enter
Year : 2011
From no. : 100001
To no. : 200000
Enter and save
Ignore the warning message
Creation of profit center:
Path: Accounting --------- > Controlling --------- > Profit center accounting --------- > Master
data --------- > Profit center --------- > Individual processing --------- > Create (Tr code is KE51)
Give the profit center : Steel

Enter
Analysis period to : 01.04.2011 to 31.12.9999
Name : Steel
Long text : Profit center steel
Person responsible : Mr A
Profit center group :FSL
select activate button (Shift+F1)
One more profit center
Profit center : Cement

Enter
Name : Cement
Long text : Profit center cement
Person responsible : Mr B
Profit center group : FSL
Select activate button
Create account groups
Path: Accounting --------- > Controlling --------- > Profit center accounting --------- > Master
data --------- > Account group --------- > create (Tr code is KDH1)
Give the account group name : PLITEMS ( Profit & Loss)

Enter
Description : P & L accounts for FSL
Select insert account button
From : 300000
To : 499999
Save
Select Back Arrow
Account groups : BSITEMS
Enter
Description : Balance sheet accounts for FSL
Select insert account button
Form : 100000
To : 299999
Save
Assign profit center in cost center
Path: Accounting --------- > Controlling --------- > Cost center accounting --------- > Master
data --------- > Cost center --------- > Individual processing --------- > Change (KS02)

Enter
Cost center : Dept B
Enter
Save
Creation of sales account as revenue element (FS00)
Give the GL account no. : 300000 Sales A/c

Company code : FSL
Enter
Cost element category : Select 11 Revenues
Save
Maintain automatic account assignment of revenue elements
Path: SPRO --------- > Controlling --------- > Profit center accounting --------- > Actual
postings --------- > Maintain automatic account assignment of revenue elements (Tr code is
OKB9)

Company code : FSL
Cost element : 300000 Sales A/c
Account assignment details : Select 2 Business area is mandatory
Save
Double click on detail per business area /valuation area folder
2 scenarios:
1st scenario:
HYD Location business area and

I
Steel Cement Pharma profit center
300000 Sales steel
HYD - --------- > Steel
300001 Sales cement
HYD -- --------- > Cement
300002 Sales pharma
HYD -- --------- > Pharma
Scenario 2:
HYD BGL MUM Business area
| | | or
Steel Cement Pharma Profit center
300000 Sales account

HYD - --------- > Steel
BGL - --------- > Cement
Mum - --------- > Pharma

Profit center : Steel
Business area : FSLB
Save
Choose addition balance sheet and p & L accounts
Applicable for second scenario: Application for second option
Same path à Select choose accounts (Tr code is 3KEH)

Account from : 100000
Account to : 299999
Default profit center : Steel
Save
Select profit center determination button
Select crate step button
Step description : Profit center derivation though business area for balance sheet
items.
Select drop down button under name column
Select GSBER businesses area
Save
Select maintain rule values button
Select source field intervals on /off button
Account no.100000
To account no.299999
Account no : 100000
To account no. : 299999
Business area : FSLB
profit center : Cement
Save
END USER AREA

1) Planning profit center wise for p & L items
Path: Accounting --------- > Controlling --------- > Profit center accounting --------- >
Planning --------- > cost /Revenues --------- > Change (Tr code is 7KE1)
Version select :0
From period :5
To period :5
Fiscal year : 2011
Company code : FSL
Account group : PLITES
Text For Account no. Profit center Reporting currency
Sales a/c 300000 500000 - (minus sign)
Salaries a/c 400100 400000
Save
Document 100001 was saved
Planning profit center wise for balance sheet items (Only for second scenario)
Planning --------- > Balance sheet accounts change (Tr code is 7KE3)
Version :0
From period :5
To period :5
Fiscal year : 2011
Company code :FSL
Profit center :steel
select next page or page down button
Account group : BSITEMS
Text For Account no. Profit center Reporting currency
SBI RT/loan 100300 200000 - (minus sign)
SBI ca a/c 200105 200000
Save
RECEIVABLES
Sales invoice Posting (F-22)

Type : DR
Company code : FSL
Posting key : 01
Account no. : 3000401
Enter
Amount : 475000
Text : sales invoice posting
Posting key : 50
Account no. : 300000 (Sales a/c)
Enter
Amount :*
Text :+
Form the menu selects Document -Simulate and saves
01 customer account dr 470000
50 to sales account 475000
If we post to 300000 sales a/c with B.area FSLH
It updates profit center steel
Calculate balance sheet adjustment in the month end
Path: Accounting --------- > Financial Accounting -------- > General Ledger --------- > Periodic
processing --------- > Closing --------- > Reclassify --------- > Balance sheet adjustment ---------
> Calculate TR.code F.5D
Company code : FSL
It takes first line item of 3(i) customer profit center steel based on 2nd line item sales a/c
01 customer debit 475000 FSLH steel profit center
3(iii) Transferring payables/ Receivables

Path: Accounting --------- > Controlling --------- > Profit center accounting --------- > Actual
postings -------- > Period end closing -------- > Transferring payables / Receivables TR.code
1KEK
Period :5
Fiscal year : 2011
Company code : FSL
Select line item check box
Degree of detail in log: select detail log
Salaries posting (F-02)
Document date : Today’s date

Type : SA
Company code : FSL
Posting key : 40
Account no. : 400100 Salaries a/c
Enter
Posting key : 50
Enter
Amount :*
Text :+
Document -simulate and save
Salaries a/c Dr 325000
(cost center dept A)
To SBI c.a 325000
(profit center steel)
In dept A assigned profit center steel automatically It updates profit center steel
To View profit center wise variance report for P & L items
Information system --------- > Repost for profit center accounting --------- > Interactive
reporting --------- > Profit center group: Plan /actual /variance (Tr code is
S_ALR_87013326)
From period : 5 (Current /Running month)

To period :5
Fiscal year : 2011
Plan version :0
Profit center values : steel
Profit / loss account groups : PLITEMS
To view variance report profit center wise for balance sheet items:
Information system --------- > Repost for profit center accounting --------- > Interactive
reporting --------- > Profit center group: Balance sheet accounts plant / Actual /Variance
(Tr code S_ALR_87013336)
From period : 5 (Running month)

To period :5
Fiscal year : 2011
Plan version :0
Profit center values : Steel
Balance sheet account group : BSITEMS
Execute
Transferring values from one profit center to another profit center

Cost center dept A is works for profit center steel and profit center Cement
We can assign only one profit center in cost center
Assigned profit center steel in the month end
Transfer values from steel profit center to cement profit center
Manual transfer through cycles
No.FI document will be generated

No.CO document will be generated
Only profit center (loacal) document will be generated.
Actual postings --------- > Profit center document --------- > Enter (Tr code is 9KE0)
Layout select 8A-001 document : Profit center /account
Company code : FSL
Select Enter screen button
Account no. : 400100 Salaries
In profit center local currency : 100000 -(with minus sign)
Account no. : 400100 Salaries
Amount : 100000 (without minus sign)
Save
INTEGRATION
Organization structure:
FI: Business area
Company
|
Company code
MM: - SD:
Business area à Plant : Factory Sales organization Company code level /
I : Branch | Regional/ locations
I : Port | |
Storage locations: Raw material Distribution-> Direct sales /sales
: Packing material Channel through Agents
: Finished goods | |
: Stores Divisions - > Steel division,
Cement division.
Why we create port as a plant:
Export sale - Terms of delivery-FOB (Free on Board) ownership will be transferred once we
kept the martial on ship.
HYD Chennai Customer
Factory Port
If the material damaged in transit FSL is responsible since owner ship is not transferred.
Business area will be assigned to plants

Plants will be assigned to sales organization
Business area will be assigned to sales organizations.
In SD module, combination of sales organization, distribution channel and division they call it as
One sales area.
Sales Area 1 Sales Area 2

Hyd location (sales Org) Hyd location (Sales org)
| |
Direct sales Through agents
| |
Steel Steel
Movement types: There are Similar to posting keys in FI

Movement type
MM
101 Material receipt against purchase order /production order
102/122 Reversal of 101
201 Issue to cost centers
202 Reversal of 201
261 Issue to orders
262 Reversal of 261
521 Production receipt without production orders.
522 Reversal of 521
561 Opening stocks taking
562 Reversal of 561
601 Delivery (sales)
602 Reversal of 601
Difference between 201 and 261
Cost centers Dept A Dept B Dept C

Issue material Production order 1
(Movement type 261) Production order 2
Stores items to issue:

(Mov.type 201) Production order 3
(cost center 201)
Material issue is identifiable to production orders we use movement type 261

Material issue is not identifiable to production orders we use movement type 201
Transaction key /process key

a) BSX Inventory postings
b) WRX Goods receipt /Invoice receipt (GR/IR clearing)
c) PRD Price difference /Production order differences
d) GBB Offsetting entry for inventory postings
(i) VBR: consumption
(ii) BSA: Opening stocks
(iii) VNG: Scrapping
(iv) ZOF: Production receipt without production order
(v) AUF: Production receipt with production order
(vi) VAY: Delivery where sales account is created as revenue element (CO
implemented)
(vii) VAX: Delivery where sales account is not created as revenue element
(Co not implemented)
(viii) AUA: production order differences
Eg: Raw material consumption
Entry:
Raw material consumption Dr 400000
To Inventory raw material 200121
For GBB VBR Assign account no.400000

For BSX Assign account no.200121
Valuation class:
Valuation class determines the GL accounts to be posted automatically.
A) Raw materials: 4 valuation classes
Local purchase
Imported purchase
Inter unit transfer
Inter company purchases
B) Stores : 2 valuation class

Local purchase
Imported purchase
c) Finished goods: 1 valuation class

Own manufacturing
Valuation grouping code / valuation modifier /Valuation modification key:
Company codes FSL FCL FIL

Chart of accounts FSL (all co. Codes are using same chart of accounts)
Plants HYD-BGL HYD-MUM BGL-MUM
Local raw materials RM1- RM2 RM2-RM1 RM3-RM1
When we purchase raw material we use only one a/c 200121 -Inventory raw material local
When we use same chart of accounts for numbers of company codes, Instead of assigning
accounts number of times, assign only one time by using valuation grouping code.
Valuation Chat of accounts Company code Valuation

Areas Plants Grouping
HYD FSL FSL X

BGL FSL FSL X
BGL FSL FCL X
MUM FSL FCL X
HYD FSL FIL X
MUM FSL FIL X
For X we assign accounts.

Interview question:
Can we have plant wise separate accounts it is possible to create pant wise accounts by using
valuation modifier or valuation grouping code or valuation modifier key
Valuation Chat of accounts Company code Valuation

Areas Plants Grouping
HYD FSL FSL X

BGL FSL FSL Y
HYD FSL FCL X
MUM FSL FCL Y
BGL FSL FIL X
MUM FSL FIL Y
For inventory raw material local for plant HYD X -200121 inventory RM. Local
For plant BGL Y - 200121 Inventory RM Local
Material types Price controls
Raw materials ROH V-Moving average price purchase cost

Stores & spares ERSA V-Moving average price purchase cost
Packing & material VERP V-Moving average price purchase cost
Finishing goods FERT S-Standard price RM cost + Overheads
Semi finished goods
Purchased HALB V-Moving average price Purchase cost
Produced HALB S-Standard price RM cost + Overheads
Trading goods HAWA V-Moving average price Purchase cost
Services DIEN
Differences between semi finished goods, purchased and produced
Issue RM cycle time 15 days finished goods
1 semi finished goods purchased:
marketing dept got an order, customer wants material with in 3 days
purchase a material where processing of A,B,C completed do only dept B processing
and take finished goods
2 Semi finished goods produced:
Dept A
Semi finished goods purchased

Dept A Dept B Dept C Dept D
Marketing dept got an order customer wants material after B processing
Take production after B processing and sell
Trading goods:
Marketing dept got an order customer wants material today it self
Buy finished goods in the market and sell the finished goods to customer without doing any
processing
Services: Plant is having operating capacity

No sales orders
Do Job work for others
We get job work charges or Material
Does not belong to us
Material types are similar to account groups in FI
There we create GL masters here we create material masters.
GL master are created under account groups where as material masters are
created under material type.
Material master is created at plant level-when number of plants are using the
same material it will be extended(copied) to other plants.
We can open 2 periods at a time.
Open material periods June July.
When we open Aug-Automatically June will be closed.
When we crate material master -We will have number of tabs (Views)
1 Basic data
2 Purchase view
3 Sales data
4 MRP data
5 Quality
6 Ware house management
7 Accounting
8 Costing
Material management:
MM Flow
A) Material requisition By production Dept inform Stores dept
B) Purchases requisition By stores to purchases
C) Purchase dept Call for enquiries, By purchase Dept.
Get quotations and do price comparisons
D) Create purchase order Vendor number, Material
Quality, Rate, Plant, Company code
Delivery terms, payment terms,
Purchase organization
E) Release purchase ordre It is optional
It will work through work flow
Eg:
If P.O value is less than Rs.10000 To be released by manager purchases
If P.O value is Rs.10000 and above To be released by GM(Purchases)

And less than 100000 if P.O value is
100000 and above To be released by Director
Once we save the purchase order, based on the value it goes to the inbox of the command
authorized person, till is releases we can’t take goods receipt.
F) Goods receipt: against purchase order

Automatic entry
Inventory RM local DR 100 Balance sheet current asset BSX
To GR/IR clearing RM local 100 Balance sheet current liability WRX
(Qty in GR*Rate as per P.O) 1kg x 100
G) Invoice verification: Against PO

Automatic entry
GR/IR clearing RM local DR 100 Balance sheet CL WRX
To vendor a/c 100 Balance sheet CL party no is taken From PO,
H) Raw material consumption:

Automatic entry
RM Consumption Local DR 100 P & L Debit GBB VBR
To inventory RM local 100 BS C/A(Current Asset) BSX
(Qty consumption*Material average price) 1kg x 100rs
I) Wages payment :
Wages A/c DR 20 P & L Debit
To Bank 20 BS CA
K) Production Receipt: At product cost
Inventory FG DR 120 BS C/A BSX

To INC/DEC in stocks FG 120 P & L Credit GBB
ZOF - In case of on production order /GBB

AUF -in case of production order (PP module implemented)
(Qty produced * product cost) 1kg *120 Rs
SD steps
L) Delivery: At product cost

INC /DEC in stocks FG DR 120 P & L Credit GBB VAX -If sales account is not created as
revenue element (Co not implemented /GBB VAY -If sales
account is created as revenue element (Co Implemented)
To Inventory FG 120 BS C/A BSX
(Qty delivered * product cost) 1kg *120 Rs
M) Sales billing:
Customer A/c DR 150 BS C/A customer number is taken from sales order
To Sales 150 P & L credit ERL
( Qty sold * selling price) kg * 150 Rs
Profit & Loss account
H) RM consmn local 100 L)Sales 150

Wages 20 J)INC/DEC STK FG 120
Net profit 30 K)INC DEC STK FG -120 0
------- -----
150 150
=== ===
Balance Sheet
Surplus in P & L Account 30 Bank -20

Sundry creditors RM 100 Sundry debtors 150
GR/IR CLRG RM LCL 100 INV RM LCL 100
GR/IR CLG RM LCL - 100 0 INV RM LCL -100 0
0 INV FG 120
INV FG -120 0
130 130
Integration steps:
A) In material master we specify valuation class

B) For valuation class we assign GL accounts based on the nature of transaction
C) At the time of material receipt/Issue stores person enters movement types/ material
number / quantity. Our accounts will be up dated automatically based on accounts
assignment to valuation class which is specified in material master
Eg: Material no. Valuation Inventory postings GR/IR Consumption

Clearing
RM1 (local) 3000 RM 200121-INV-RM 100520-GR/IR 400000-RM
local (GBB VBR)
RM 2 3001 RM 200122 Inv.rm.imp 100521 -GR/IR 400001 RM con IMP
imported
Local purchase:
1. Purchase order: Vendor -1234
Material -RM1
Qty-1000 Kgs
Rate 5 Rs
Save P.O.No.1
2. Goods receipt: against-P.O No.1

Movement Type: 101 Debit BSX
Credit WRX
Material RM1 3000

Qty 400 kgs
Save
Debit 200121 Inv RM LCL 2000
Credit 100520 GR/IR CLRG RM LCL 2000
(Qty IN GR *Rate as per P.O)
(400kgs * 5 Rs = 2000)
Here generated 2 documents
Material document 500001
FI document 100001
3.Raw material consumption:
Movement type 201/261 Debit GBB VBR

Credit BSX
Material RM1 3000
Qty 100 Kgs
save
400000 RM Consumption LCL DR 500
200121 Inventory RM Local 500
(Qty issued * Moving average rate)
(100kgs * 5 Rs)
FI document 100002
4. Purchase order cration: Vendor -5678

Material -RM2
Qty-1Kg
Rate -200
Save PO No.2
5. Goods receipt: against PO No.2

Movement type: 101 Debit BSX
Credit WRX
Martial RM2 3001
Qty 1 Kg
Save Material Doc No.200003
200122 Inventory RM IMP DR 200
100521 GR/IR CLRG RM IMP 200
(Qty IN GR* P.O price)
1*200
FI document 100003
Material returns:
Material doc no.500003
Movement Type 102/122 Debit WRX

Credit BSX
Material RM2 3001
Qty 1 Kg
Save
100521 GR/IR CLRG RM IMP DR 200
200122 Inventory RM IMP 200
(Qty returned * Moving AVG price)
1kg * 200 Rs
FI document 100004
Price differences
Batch method: moving AVG Method

1 stocks full available
2 stocks partly available
3 stocks not available
1 batch method: purchase order price 10 rs

Material RM 1
Lot Qty Rate Amount 1 Rawmaterial receipt
1 100 10 1000 Dr INV RM LCL 1000 BSX
To GR/IR/CLRG RM LCL 1000 WRX
2 Rawmaterial receipt
2 50 40 2000 Dr INV RM LCL 2000 BSX
150 3000 To GR/IR/CLRG RM LCL 2000 WRX
3 30 10 300
120 2700 3 Material consumption
____ 140 RM consmn LCL Dr 300 GBB VBR
120 2840 To INV.RM.LCL 300 BSX
Break up:
1 70 12 840 4 Invoice verification
2 50 40 2000 GR/IR/CLRG RM LCL Dr 1000 WRX
Inv RM LCL Dr 140 BSX (70x2)
Price difference RM LCL Dr 60 PRD (30x2)
To Party a/c 1200 (vendor no.is take
From P.O)
Presentation in accounts
RM consumption
RM consumption Local 300
+/- price difference RM LCL 60
360
Some consultants for PRD assign a/c price difference RM LCL others assign for PRD RM
consumption Local a/c
Moving average method: stock fully available
Material - RM1 PO Price : 10 Invoice price Rs.12
Qty rate amount 1. material receipt

Bill qty 100 10 1000 Inv.RM local DR 1000 BSX
50 40 2000 To GR/IR CLRG RM LCL 1000 WRX
---- ------ 2. Material receipt
150 3000 Inv RM local DR 2000 BSX
---- -----
Average bill 120 2400 3. Raw material consumption
qty 200 RM consumption LCL Dr 600 GBB VBR
---- ----- To Inventory RM LCL 600 BSX
120 2600 4. Invoice verification
GR/IR CLRG RM LCL DR 1000 WRX
Inv RM LCL Dr 200 BSX
To Party 1200 vendor is taken from PO
Consumption rate:
Value / Qty 3000/150=20
Next consumption Avg
Value / Qty 2800/120=21.67
method moving average method Stocks partly available

---- -----
Inv RM LCL Dr 80 BSX
Price difference 120 PRD
Consumption rate
Value / Qty 3000/150=20
Next consumption rate:

Value qty 880/40=22.00
In batch method -It has checked batch wise for the material.
In this method -it has checked material wise.
4. Method-moving average method Stocks not available safety stocks

---- -----
Price difference 200 PRD
Consumption rate
Value / Qty 3000/150=20
Other options available:
1.along with material receipt bill comes, before taking GR change price in purchase order when
we take goods receipt at new price it takes no price difference
2.in the latest version SAP has given the facility when we do invoice verification we have the
option to add to material or change to accounts the price difference.
Sales and Distribution
Flow:
1. Inquiry and quotation:

Sales dept get inquires from different customer’s sales dept will send quotations
2. Customer raises purchase order
3. Sales dept raises sales order : Customer no/Material no./ plant/ sales organization/ Qty/
price/ Delivery terms / Payment terms
4. Delivery against sales order
A) Delivery without post goods issue (Delivery without PGI) ownership is not
transferred.
Eg. Export sales -Terms of delivery -FOB (Free on board)
Hyderabad Factory Chennai Port Customer

Delivery without PGI Delivery with PGI
No FI document FI document
Only material document Material document
FI document : At product cost
Increase /Decrease in stocks FG DR GBB VAY-If sales account is created as revenue

element (Co implemented)1
GBB VAX if sales account is not created as
revenue element (Co not implemented)
To inventory FG BSX
B) Delivery with Post Goods Issue (Delivery with PGI)

Eg. Local sales terms of delivery -Ex works
Hyderabad factory Customer
Delivery with PGI
Sales Billing: against delivery
entry
Customer account DR customer no is taken from sales order
To Sales ERL
IN SD Module-Pricing procedure
Eg: local billing
Basic price (A) X
Excise (B) % on A
Basic+Excise(A+B)=C X
Sale tax (D) % on C
Customer Debit (C+D)` X
Eg: Export billing
Basic price (A) X
FI consultant job: Assignment of accounts
Condition type: KOFI (Account assignment-FI)

KOFK (Account Assignment -CO)
Assignment of accounts
1 2 3 4 5 6 7 8
Application Conditio Chat Sales Account Account Accou GL account
area n type of originatio assignment assignment nt keys
accou n group for group for
nts customers materials
V-Sales & KOFI FSL HYD 01 03 ERL 300005 -
Distribution Sales Local
own goods
V-Sales & KOFI FSL HYD 01 01 ERL 300006-
Distribution Sales local
trade goods
V-Sales & KOFI FSL HYD 02 03 ERF 300007
Distribution Sales export
goods
V-Sales & KOFI FSL HYD 01 03 ERL 400320 -
Distribution Sales Freight
revenu Local own
e goods
01- 01 Traded ERF
Domestic goods Freight
revenues Reven
ues
02-Foreign 02 Services ERB-
revenues Rebate
s
/Tradi
ng
Discou
nts
03- 03 Finished ERS
Affliated goods Sales
company Deduct
revenues ions
Note : ERS : Sales commission

400320 freight local own goods
Bank 1000 From customer 1000
Reimbursement of expenses
MM CUSTOMIZATION
MM consultant job
1. Define Plants
Path: SPRO --------- > Enterprise structure --------- > Definition --------- > Logistic
general --------- > Define copy, delete check plant.
Double click on define plant

Plant : FSLP
Name : FSL HYD Factory plant
Factory calendar : Select F1 or 01 (F1= FSL HYD Factory Calendar)
Save (01=Standard calendar)
Give the name : FSL Hyderabad factory plant
Country : IN
Enter
Short description : MM customization for FSL
Press enter
Enter once again to save in the request
Define division:
general --------- > Define copy, Delete, check division.
Double click on define division

Division : FS (It is a text filed)
Name : Steel Division
Save
Maintain storage location
Path: SPRO --------- > Enterprise structure --------- > Definition --------- > materials
management --------- > Maintain storage location (OX09)
Give the plant : FSLP

Enter
Give the storage location : HYD
Description : Hyderabad storage location
Save
Maintain purchasing organization

Path: SPRO --------- > Enterprise structure --------- > Definition --------- > materials
management --------- > Maintain purchasing organization
Purchase organization : FSLR
Description : FSL Purchase organization
Save
Assign plant to company code:
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > logistics
General --------- > Assign plant to company code ( Tr code is OX18)

Company code : FSL
Plant : FSLP
Save
Assign business area to plant/valuation area and division
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > logistics
General --------- > Assign business area to plant/valuation area and division
Select plant /valuation area -Division button

Plant : FSLP
Division : FS
Save
Assign purchasing organization to company code
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > Materials
management --------- > Assign purchasing organization to company code
Give the purchase org : FSLR
Enter
For FSLR assign company code FSL
Save
Assign purchasing organization to plant:
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > Materials
management --------- > Assign purchasing organization to plant
Purchasing org : FSLR
Plant : FSLP
Save
Define material groups: ( OMSF)
Path: SPRO --------- > Logistic general --------- > Material master --------- > Settings
for key fields --------- > Define Material groups.
Material group : FSLC
Material groups description : Chemicals
Maintain compafny code for material management:
Path: SPRO --------- > Logistic General --------- > Material master --------- > Basic
settings --------- > Maintain company code for materials management

Give the comp code : FSL
Enter
Year : 2011
Period : 4 (July)
Note: This period enter carefully, if you once enter not modified
Select ABP check box (ABP stands for Allow Back Period Posting)
Save
Define attributes of material types:
Path: SPRO --------- > Logistic General --------- > Material master --------- > Basic
settings --------- > Material type --------- > Define attributes of material types.
Select material type : ROH (Raw materials)
Enter
Select ROH
Double click on quantity / Value updating folder
Valuation area : FSLP (Nothing but plant)
Enter
Select Qty updating check box
Select value updating check box
Save
Select back arrow
Select material type FERT for finished product
Double click quantity / value updating folder
Valuation area : FSLP
Enter
For valuation area FSLP select quantity updating check box value updating check box
Save
Create purchasing groups:
Path: SPRO --------- > Materials management --------- > Purchasing --------- >
Create purchasing groups.

Purchasing group : FSL
Description : FSL RM purchasing group
Save
Press entr to save in your request
Set tolerance limits for price variance for purchase order
Path: SPRO --------- > Material management --------- > Purchasing --------- >
Purchase order --------- > set tolerance limits for price variance
Select Tolerance key PE & SE for company code 1000

For PE Company code FSL
Enter
For SE company code FSL
Enter and save
Plant parameters:
Path: SPRO --------- > Materials management --------- > Inventories management
and Physical inventory --------- > Plant parameters
Select plant 1000

Plant : FSLP
Enter and save
Set tolerance limits for goods receipt
Path: SPRO --------- > Materials management --------- > Inventories management
and Physical inventory --------- > Goods receipt --------- > Set tolerance limits
Select tolerance key B1, B2 & VP for company code 1000

Change the company code FSL for B1
Enter
Change the company code FSL for B2
Enter
Change the company code FSL for VP
Enter and save
Maintain default values for tax codes
Path: SPRO --------- > Materials management --------- > Logistics invoice verification
--------- > Incoming invoice maintain default values for tax codes
Company code : FSL
Save
Set tolerance limits for Invoice verification:
--------- > Invoice Block --------- > Set tolerance limits
Select tolerance key (TIKY) BD and ST for company code 1000
Company code FSL for BD
Enter
Company code FSL for ST
Enter
Press enter save in your request
Define automatic status change:
--------- > Invoice verification in back ground --------- > Define automatic status
change
Company code : FSL
Group together valuation areas:
Path: SPRO --------- > Material management --------- > Valuation and account
assignment --------- > Account determination --------- > Account determination
without wizard --------- > Group together valuation areas.

Enter
For valuation area FSLP assign valuation grouping code for X
Save
Define valuation classes:
without wizard --------- > Define valuation classes
Select valuation class button

Select valuation class 3000 Raw materials local
Select valuation class 7920 finished products
Change the valuation class 3000 to FSL1
Change the description to Raw materials local
Change valuation class 7920 to FSL2
Change the description to Finished product
Enter and save
Define No.range interval for material document:

Path: SPRO --------- > Material management --------- > Inventory management and
physical inventory --------- > Number assignment --------- > Define number assignment
for material and physical inventory document
Select material document for goods receipts check box
From the menu bar select interval --------- > Maintain
Keep the cursor on the year
From the menu bar select Edit -------- > Insert year
Year : 2009
From number : 3000001
To number : 3100000
Enter
Save
Select back arrow
Select material document for goods movement and inventory difference check box
From the menu bar select interval --------- > Maintain
Keep the cursor on the year
From the menu bar select Edit -------- > Insert year
Year : 2011
To number : 3200000
Enter
Save
FI consultants job:
1. Creation of GL masters FS00
A) Inventory RM local Current assets loans & advances
B) Inventory finished goods -do-
C) GR/IR clearing RM local Current liabilities & Provisions
D) RM consumption local RM Consumption
E) INC/DEC in stocks FG Increase /Dec in stocks
Give the GL account no : 200121

Company code : FSL
Give the GL account no : 200120 Inventory RM
Company code : FSL
Enter
Change the short text : Inventory RM local
Change the GL a/c long text : Inventory RM local
Tax category : select * (All tax allowed)
Select posting without tax allowed check box
Select create/Bank/Interest tab
Field status group change : G006 Material accounts
Select post automatically only check box
Save
All BSX account assignments we have to select post automatically only check box
GL account no. : 200122
Company code : FSL
Give the GL a/c : 200121
Company code : FSL
Enter
Change short text : Inventory FG
GL a/c long text : Inventory FG
Save
GL account : 100520
Company code : FSL
GL account : 100500 outstanding exp.
Company code : FSL
Enter
Change short text : GR/IR clearing RM local
GL account and long text : GR/IR clearing RM local
Tax category :*
Select posting without tax allowed check
Sort key : 014 Purchase order
Select create /bank /interest tab
Field status group change to G045 (goods/Invoice received clearing accounts)
Save
G/L account : 400000
Company code : FSL
Give the GL account : 400100 Salaries a/c
Company code : FSL
Enter
Select type/description tab
Change the account group to RM consumption
Change short text : RM consumption local
GL account long text : RM consumption local
Field status group to change to G003 (Material consumption accounts)
Save
Valid from : 01.04.2011
Enter
Cost element category : Select 01
Save
GL account : 300200
Company code : FSL
Change the GL a/c : 300100 Exchange gain
Company code : FSL
Enter
Select type/Description tab
Change account group : Increase /Decrease stocks
Change short text : Increase/Decrease in stocks FG
GL account long text : Increase/Decrease in stocks FG
Select create/Bank/Interest tab
Change field status group to G030 change in stock accounts
Save
*Assignment of accounts for automatic postings
without wizard --------- > Configure automatic postings (Tr code is OBYC) (MM to FI
Integration)
Select cancel button

Select account assignment button
Double click on BSX inventory posting

Give your Chart of Accounts : FSL
enter
Select valuation modifier check box
Select valuation class check box
Save
Valuation modified Valuation class Account
X FSL1 RM local 200121 Inventory RM local
X FSL2 Finished products 200122 Inventory FG
Save
Select back arrow
Double click on transaction WRX GR/IR clearing account
Save
Valuation modifier :X
Valuation class : FSL1 RM local
Account no. : 100520 GR/IR clearing local
Save
Select back arrow
Double click on transaction GBB offsetting entry for Inventory posting
Select General modification check box
Select Valuation modifier check box
Select Valuation class check box
Save
Valuation General modification Valuation class Account

modifier
X VBR (consumption) FSL1 RM local 400000 RM
consumption local
X ZOF (Production receipt FSL2 Finished 300200 Increase /
without production order) products Decrease stocks FG
X AUF production receipt with FSL2 300200
production order
X VAY (Delivery where sales FSL2 300200
account is created as revenue
element
Co implemented)
X VAX Delivery where is sales FSL2 300200
account is not created as
revenue element
CO not implemented
Save
Document types and no.ranges (OBA7)
Type No.Range
WE : Goods receipt 50
WA : Goods issue 49
RE : Grass invoice receipt 51
Select type WE
Select number range information button
Company code : FSL
No. range : 50
Year : 2011
From no. : 900001
To no. : 1000000
Enter and save
Select back arrow 3 times

Select type WA Goods issue
Number range : 49
Select no.range information button
Company code : FSL
No.range : 49
Year : 2011
From no. : 1000001
To no. : 1100000
Enter and save
Select RE gross invoice receipt
Select no.range information button
Company code : FSL
No.range : 51
Year : 2011
From no. : 1100001
To no. : 1200000
Enter and save
MM end user area
Creation of vendor master XK01:

Purchasing organization : FSLR
Account group : FSL2 MM vendors for FSL
Enter
Give the name : FSLMM Vendor
Country : IN
Select next screen button 3 times
Reconciliation account : select 100501 Sundry credit RM
Sort key : 012 vendor
Select next screen button
Payment terms : 0001
Select next screen button 2 times
Order currency : INR
Payment terms : 0001
Select GR based invoice verification check box
Save
Creation of RM material master
Path: Logistics --------- > Materials management --------- > Material master ---------
> material --------- > Create (Genral) --------- > Immediately (Transaction code
MM01)
Material : FSLRM1
Industry sector : Mechanical engineering
Material type : Raw material
Press select views button
Select basic data1, purchasing, general plant data/storage1/accounting1 and costing1
Select organization levels button (bottom side)
Storage location : HYD
Enter
Give the description : Raw material 1
Basic unit of measurement : KG
Material group : FSLC (Chemicals)
Division : FS (Steel)
Select purchasing tab
Select accounting one tab
Valuation class : select BIL1 (RM local)
Price control : select V moving average price
Moving price : 75
Select costing 1 tab
Select material origin check box
To open material periods for August :
Path: Logistics --------- > Materials management --------- > Material master ---------
> Other --------- > Close period (Transaction code is MMPV)
From company code : FSL

Give the period : 5 (Aug)
Fiscal year : 2011
Select check and close period radio button
Execute
Creation of Purchase order:

Path: Logistics --------- > Material management --------- > Purchasing --------- >
Purchase order --------- > Create --------- > Vendor/supplying plant known (The
transaction code is ME 21N)
Vendor : 4000101
Enter
Give the purchasing organization : FSLR
Company code : FSL
Give the purchasing group : FSL
Item : 10
Material : FSLRM1
PO quantity : 100 Kg
Net price : 100
Plant : FSLP
Give the currency : INR
Save
Note the purchase order no.4500017094
Goods receipt:
Path: Logistics --------- > Material management --------- > Inventory management
--------- > Goods movement --------- > Goods receipt --------- > for purchase order -
-------- > PO number known (The transaction code is MIGO)
Select goods receipt
Give purchase order no.4500017094
Enter
Quantity in delivery note : 1000
Select item ok check box
Select where tab
Storage location select : HYD
Select display button
Enter
Select document information tab
Select FI documents button
BSX
200121 Inventory RM local 100000 FSLRM1 FSL1
WRX
100520 GR/IR CLRG RM local -100000 FSLRM1 FSL1
Qty .in (GR) *Rate as per PO
1000*100 Rs
Invoice verification:
To assign FSL tax to country India
Path: SPRO -------- > Financial Accounting --------- > Financial accounting global settings -
-------- > Tax on sales/ purchase --------- > Basic settings --------- > Assign country to
calculation procedure
For country IN assign FSL TAX
Save
Save in your request.
Invoice verification:
Path: Logistics --------- > Materials management --------- > Logistics --------- >
Invoice verification --------- > Document entry --------- > Enter invoice (Transaction
code is MIRO)
Compay code : FSL

enter
Give the invoice date : Today’s date
Reference : Party bill no. 2345
Text : Invoice verification
Purchase order : 4500017094
Enter
Select calculate tax check box
Tax code : VO (0% input tax)
Enter
Amount : 100000
Enter
From the menu select invoice document - --------- > Display
Select follow on document button
4000101 FSL MM Vendor 100000 From purchase order party no is taken

WRX
100520 GR/IR CLRG RM local100000 FSLRM1 FSL1
Raw material consumption :
Path: Logistics --------- > Materials management --------- > Inventory management
--------- > goods movement --------- > goods issue (Transaction code is MB1A)
Movement type : 201

Plant : FSLP
Enter
Material : FSLRM1
Quantity : 60
From the menu select goods Issue - --------- > display
Enter
Select accounting documents button
Select accounting document number
WRX
200121 Inventory RM local 6000- FSLRM1 FSL1
GBB VBR
400000 RM consumption LCL 6000 FSLRM1 FSL1
Qty consumed * moving average price
60kg *100Rs
To view stock Register:

Path: Logistics --------- > Materials management --------- > Inventory management
--------- > Environment --------- > Stock for posting date (Transaction code is MB5B)
Material no : FSLRM1
Company code : FSL
Plant : FSLP
Selection date : 01.04.2011 to 31.03.2012
Select valuated stock radio button
Execute
Interview question:
Automatic clearing or how to see materials received and bills not received
Path: Accounting --------- > Financial Accounting --------- > General ledger ---------- >
Periodic processing --------- > Automatic clearing --------- > without specification of
clearing currency F.13
Company code : FSL
Select select GL accounts check box
GL account : 100520
Error message for material document numbers:

Path: SPRO -------- > Material Management ---------- > Inventory management and
physical inventory --------- > Number assignment --------- > Define number assignment
for material and physical inventory documents (tr. Code OMBT)
Select the check box having WE doc.Receipt
From the menu bar select Interval -- --------- > Maintain
Keep the cursor on year
From the menu bar select Edit --- --------- > Insert year
Year : 2011
From number : Select drop down button select xxxx
To : xxxx
Enter and save
Select back arrow
Select check box having doc.type WA
Other steps are as above.
SD INTEGRATION
SD consultant’s job
1. Define region: (State)

Path: SPRO --------- > SAP net weaver --------- > General settings --------- > Set
countries --------- > Insert regions

Country : IN
Region : AP
Description : Andhra Pradesh
Save
Select create request button(F8)
Short description SD customization for FSL
Enter
Define sales organization:
Path: SPRO --------- > Enterprise structure --------- > Definition --------- > Sales
and distribution --------- > Define, Copy, Delete, Check, Sales organization
Double click on sales organization

Sales organization : FSLS
Description : FSL HYD Sales organization
Statistics currency : INR
Save,
Give the name : FSL HYD sales organization
country : IN
Enter
To save in your request
Define distribution channel :
Path: SPRO --------- > Enterprise structure --------- > Definition --------- > Sales
& distribution --------- > Define, copy, delete, check distribution channel
Double click on define distribution channel

Distribution channel : FD
Name : Direct sales
Save
Define shipping point:
execution --------- > Define, copy, delete, check shipping point
Double click define shipping point

Shipping point : FSSH
Description : FSL HYD shipping point
Save
Name : FSL HYD shipping point
Country : IN
Enter
Press enter once again to save in the request
Assign sales organization to company code:
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > Sales
& Distribution --------- > Assign sales organization to company code

Enter
For FSLS assign company code FSLS
Save
Assign distribution channel to sales organization :
& Distribution --------- > Assign distribution channel to sales organization
Save
Assign division to sales organization
& Distribution --------- > Assign division to sales organization

Division : FS
Save
Setup sales area:
& Distribution --------- > Setup sales area

Division : FS
Save
Assign sales organization - distribution channel- plant:
& Distribution --------- > Assign sales organization --------- > distribution
channel --------- > plant
distribution channel : FD
Plant : FSLP
Save
Define rules by sales area:
& Distribution --------- > Business area account assignment --------- > Define
rules by sales area

enter
For FSL select rule : 001 (Business area determination from plant / division)
Save
Assign shipping point to plant:
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- >
logistic execution --------- > Assign shipping point to plant
Select find button

Find : FSLP
Press enter
Select : FSLP
Select assign button
Select FSSH check box
Enter

Save
Define common distribution channels:
Path: SPRO --------- > Sales & Distribution --------- > Master data --------- >
Define common distribution channels

Give the sales organization : FSLS
Enter
For FSLS Distribution channels for condition : FD
Distribution channels customer master : select FD
Save
Define common divisions:
Path: SPRO --------- > Sales & Distribution --------- > Master data --------- >
Define common divisions

Enter
Division for conditions : select FS
Division for customer master: select FS
Save
Maintain pricing procedures
Path: SPRO --------- > Sales and distribution --------- > Basic functions --------- >
pricing --------- > Pricing control --------- > Define and assign pricing procedures
Double click on maintain pricing procedures

Select pricing RVAA01 standard
Double click on control data folder
For step 915 for condition type MWST output tax
Deselect required check box
Save
Ignore the warning message press enter to save
Define pricing procedure determination:

pricing --------- > Pricing control --------- > Define pricing procedure
determination
Double click on define pricing procedure determination

Division : FS
Document pricing procedure : select A standard
Customer pricing procedure : select 1 standard
Pricing procedure : select RVAA01 standard
Condition type : select PR00 price
Save
Define tax determination rules:
Taxes --------- > Define tax determination rules

Tax country : IN for India
Enter
For tax country In for sequence 1 tax category UTXJ
Select tax country IN sequence 2
From the menu bar select Edit -- --------- > Delete
Save
Save in your request.
Setup partner determination:
Partner functions
Customer No. Customer No.
SP Sold to Party 1 1 Not modifiable
SH Ship to party 1 2 Modifiable
BP Bill to party 1 2. Modifiable
PY Payer 1 2 Modifiable
If we don’t specify separately (SP,SH,BP and PY)all we be only customer
Partner determination --------- > Set up partner determination

Double click setup partner determination for customer master
Double click on partner functions folder
Partner function : SP
Enter
Select partner function SP
Double click on account group function assignment folder
Partner function : SP
Account group : FSL2
Partner function : SH
Partner function : BP
Partner function : PY
Save
Ignore the warning message press enter to save in your request
Double click on partner determination procedures folder
Partner determination : FSL
Name : FSL partner determination procedure
Save
Select partner determination FSL

Double click partner functions in processor folder
Partner function Not Modifiable Mandatory
SP X X
SH X
BP X
PY X
Save
Double click on partner determination procedure assignment folder
Enter
For FSL2 Assign partner procedure FSL
Save

Assign shipping points
SPRO --------- > Logistics execution --------- > Shipping --------- > Basic shipping
functions --------- > Shipping point and goods receiving point determination ---
------ > Assign shipping point

Shipping conditions : Select 01 as soon as possible
Loading group : 0003 manual
Plant : FSLP
Propose shipping point : FSSH
Save
FI consultant job:
Creation of GL master sales local own goods -FS00
Give the GL a/c no. : 300005

Company code : FSL
Give the GL a/c no. : 300000 sales account
Company code : FSL
Enter
Change short text : Sales local own goods
GL a/c long text : Sales local own goods
Select create /Bank /Interest tab
Field status group : G029 revenue accounts
Save
Valid from : 01.04.2011
Enter
Cost element category : 11 Revenues
Save
Assignment of account for automatic postings:
Path: SPRO --------- > Sales and Distribution --------- > Basic function --------- >
Account assignment/costing --------- > Revenue account determination ---------
> Assign GL accounts (Transaction code is VKOA)
Note: This is Important Tr code

Double click on table one
Application area : Select V Sales & Distribution
Condition type : KOFI account data
Chart of accounts : FSL
Account assignment group of customer : Select 01 domestic revenues
Account assignment group of material : 03 finished goods
Account key : Select ERL sales revenues
GL account : 300005 sales local own group
Save
SD end user area

Creation of customer master: XD01
Company code : FSL
distribution channel : FD
Division : FS
Account group : SD customer for FSL
Enter
Name : FSL SD Customer
Country : IN
Region : AP
Select company code data button
Reconciliation account : 200110 sundry debtors
Sort key : 031 customer no.
Select payment transaction tab
Terms of payment : 0001
Select sales area data button
Customer pricing procedure : select 1 standard
Select shipping tab
Delivery priority : select 02 normal
Shipping conditions : select 01 as soon as possible
Delivery plant : FSLP
Select billing documents tab
Select price determination check box
In CO terms under delivery and payment terms : select EXW form plant
Terms of payment : 0001
Account assignment group : select 01 domestic revenues
For Tax category UTXJ Tax classification : select 1 liable for tax
Save
Creation of finished goods material master (MM01)

Give the material : FSLFG
Industry sector : Mechanical engineer
Material type : Finished product
Select basic data 1,
Select Sales: Sales organization data 1,
Select Sales: sales org.data 2,
Select Sales: General /plant data,
Select MRP1,
Select general plant data /storage 1,
Select accounting 1,
Select costing 1,
Select organization levels button
Plant : FSLP
Enter
Description : Finished product
Base unit of measurement : KG
Division : FS
Gross weight : 0.99 kg
Select sales: Sales Organization 1 tab
Tax classification : 1
Select sales: Sales Organization 2 tab
Account assignment group : select 03 finished goods
Select sales : General /plant tab
Available check : select KP no check
Transportation group : select 0003 container
Loading group : select 0003 manual
Select MRP1 tab
MRP type : select ND no planning
Select accounting 1 tab
Valuation class : select FSL2 finished product
Price control : select S standard price
Standard price : 300
Save
Define condition types:

Path: Logistics --------- > Sales & Distribution --------- > Master data --------- >
Conditions --------- > Select using conditions type --------- > create (Transaction
code is VK11)
Condition type : PR00 price

Select key combination button: Select material with release status radio button
Enter
Material : FSLFG
Amount : 400
Valid from : 01.04.2011
Valid to : 31.12.9999
Save
Select back arrow
Condition type : select UTXJ tax Jurisdiction code
Select key combination button
Select domestic taxes radio button
Enter
Country : IN for India
Tax classification for customer : 1
Tax classification for material : 1
Valid from : 01.04.2011
Valid to : 31.12.9999
Tax code : A0 (0% output tax)
Save
PROFITABILITY ANALYSIS (CO-PA)

Co stands for Controlling
PA stands for Profitability Analysis
This is used to view profitability for number of parameters at a time:
Eg: Customer wise, Product wise, Sales order wise, plant wise, Sales organization wise
profitability.
Account based profitability analysis /costing based profitability analysis or both (in India we use
both)

Flow
From MM Module
PP Module à product costing à SD module à CO-PA
CO Module
FI Module
Define an operating concern
Operating concern can be equal to controlling area or above controlling area
Controlling area can be equal to company code or above company code
Company code =controlling area =operating concern
Data structure - It consists of
Characteristics Value fields
Customer ------
Sales order |
Plant |
Sales organization |-à Sales cost of goods sold net profit
Product |
Sales employee |
Industry |
----
Profitability segment à It consists of

A) System defaulted characteristics
Eg: customer / Product / Sales order /Plant /Sales organization
B) Client required characteristics
Eg: Sales employee / Industry
Data flow in SD module:
1. Inquiry and quotation

2. Customer rises purchase order
3. FSL raises Sales order -customer no /product /plant / sales organization /quantity /rate
delivery terms /payment terms.
4. Delivery with reference to sales order.
A) Delivery without posting goods issue (without PGI)
B) Delivery with post goods issue (with PG1)
5. Sales billing with reference to delivery
Data flow in Co-PA

SD condition types CO-PA value fields
PR00 Price VV 010 - Revenues

VPRS Costs VV 140 - Cost of goods sold
(Product costs)
(up to COGM level) from CO from FI
Up toCOGM level Admin & SD Exp.
We are going to MAP:
PR00 =VV010
VPRS=VV140
We are not SD Consultants we don’t know SD condition types
In Client 800 for company code 1000 - controlling area -1000 - operating area - IDEA
All SD condition types and equivalent to COPA value fields it is a reference to all CO consultants
In product costing for material FSLFG

Raw materials xxx accounting standards 2 (AS2)
Raw material overheads xxx for stock valuation
Production costs xxx stock valuation will be at COGM level or COGM+Admn
----- level
Cost of goods manufactured xxx
(COGM)
Administration xxx
Sales & Distribution Exp xxx
-----
Cost of goods sold (COGS) xxx
CUSTOMIZATION :
Maintain operating concern
Path: SPRO --------- > Controlling --------- > Profitability analysis --------- > Structures ---
------ > Define operating concern --------- > Maintain operating concern (Tr code is KEA0)
Give the operating concern : FSL1 (It is a text field)

Description : Operating concern for FSL
Select costing based check box
Select account based check box
Select attributes tab
Operating concern currency : INR
Select company code currency check box
Fiscal year variant : V3

Save
Select data structure tab
Select create button under data structure
Select characteristic BRSCH Industry
Select left arrow
Select value fields tab
Select value fields VV010 revenue
Select VV140 cost of goods sold
Select left arrow
Select save button
From the menu select data structure ----- > Activate
Select back arrow
Select yes button for the message to generate the operating concern environment.
Save
Assign controlling area to operating concern:
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > Controlling -
-------- > Assign controlling area to operating concern.

Enter
For controlling area FSL Operating concern : FSL1
Save
Define profitability segment characteristics (Segment -level characteristics)
Path: SPRO ------ > Controlling --------- > Profitability analysis -------- > Structures --------- >
Define profitability segment Characteristics (Tr code is KEQ3)
Give the operating concern : FSL1

Enter
For sales order select costing based account based radio button
For product customer select costing base and account base radio button
Save

Define no.range for actual postings
Path: SPRO --------- > Controlling --------- > Profitability analysis --------- > Flows of actual
values --------- > Initial steps --------- > Define no. range for actual postings (Tr code is
KEN1)
Operating concern : FSL1

Select generated groups check box
From the menu select interval ------- > Maintain
From no. : 1
To no. : 9999999999 (10 times)
Save
Maintain assignment of SD conditions to CO-PA value fields:
values --------- > --------- > Transfer of billing documents --------- > Assign value fields.
(TR code is KE4I)
Double click on maintain assignment of SD conditions to CO-PA value fields

Condition type : PR00 price

Value field : VV010 (Revenues)
Condition type : VPRS (cost)
Value field : VV140 (Cost of goods/ Sold)
Save
Direct posting from FI/MM
If we post to account numbers 300000-399999 directly up date value field VV010 revenues
If we post to account numbers 400000-499999 directly up date value field VV140 cost of goods
sold
values ------- > Direct posting from Fi/MM --------- > Maintain PA transfer structure for direct
postings (tr- code KEI2)
Select structure FI (Financial accounting à CO - PA)
Double click assignment lines folder

Enter
Enter once again
Select assignment 20 (Direct revenues from FI)
From : 300000
To : 399999
Double click on value field’s folder
Quality /value : Select value filed
Fixed /variable : Select 1 fixed amounts
Value field : select VV010
Save
Double click on assignment lines folder

Select Assignment 10 Direct cost from FI
From : 400000
To : 499999
Quantity /value : select value field
Fixed /variable : select 1 fixed amount
Value field : VV140
Save
Activate profitability analysis
values --------- > Activate profitability analysis (KEKE)

Enter
For controlling area FSL Activate status: select 4 (component activate for both types of
profitability analysis)
Save
SD END USER AREA

1. Creation of sales order

Path: Logistics --------- > Sales and Distribution --------- > Sales --------- > Order --------
- > Create (Tr code is VA01)
Order type : select OR (Standard Order)

Distribution Channel : FD
Division : FS
Enter
Sold to party : 3000501
P.O.No. : 1
P.O.Date : To days date
Required delivery date: Today’s date
Delivery plant : FSLP
Item : 10
Material : FSLFG
Order quantity : 10 kg
Enter
Select item : 10
From the menu select Go to Item - --------- > Conditions
Select shipping tab
From the menu select Edit -------- > In complication log
We get a message document is complete, no errors
Note the order no.11764
To open Material period for September(MMPV)
From co. code : FSL

Period : 6
Fiscal year : 2011
Select check and close period radio button
Execute.
Production receipt :
There are two types of production receipt.
1. Production receipt without production order 2. Production receipt with production order
MVT Type: 521 MVT Type: 101
Production receipt without production order

Path: Logistics --------- > Materials Management --------- > Inventory management ------
--- > Goods movement --------- > Goods --------- > receipt --------- > other (Tr code is
MB1C)
Moment type : 521 (Receipt w/o production order into unrest -use stock)
Plant : FSLP
Enter
Give the material : FSLFG
Quantity : 2000
Save
Note: Check it GL A/c 200122 Inventory, select automatic posting check box
From the menu select other goods receipts --------- > Display
Enter
Select accounting document no.
BSX
200122 Inventory FG 100000 FSLFG FSL2
GBB ZOF
300200 INC/DEC in stocks FG 100000-FSLFG FSL2
Qty produced * Standard Price
2000 Kg’s*500 Rs
Delivery with reference to sales oreder:
Path: Logistics --------- > Sales & Distribution --------- > Sales --------- > Order --------- >
Sub request functions --------- > Outbound delivery (Tr code is VL01N)
Shipping post : FSSH

Give the order no. : 11764
Enter
Actual goods issue date : Today’s date
Select item 10
Select picking tab
Picked quantity : 10
Select post goods issue button
From the menu select outbound delivery - --------- > display
Enter
From the menu select Environment --- --------- > Document flow
keep the cursor on goods issue delivery document no. (Down side in document column)
Select display document button

BSX
200122 Inventory FG 5000 FSLFG FSL2
GBB VAY
300200 INC/DEC in stocks FG 5000 FSLFG FSL2
Qty delivered *Standard price
10kg’s * 500
Sales billing
Path: Logistics --------- > Sales & Distribution --------- > Sales --------- > Order --------- >
Sub request functions --------- > Billing document (Tr code is VF01)
Select Delivery document no.

Execute
Save
From the menu select Billing document --------- > Display
Select accounting button
Double click on accounting document no.
3000501 SD customer for FSL 6000 customer no.is taken from sales order
300005 Sales local own goods 6000-ERL

Qty sold *Sale price
10kg * 600 Rs.
REPORT PAINTER
Report to view customer wise/product wise /Sales organization wise /plant wise profitability
Create form:
Path: SPRO --------- > Controlling --------- > Profitability analysis --------- > Information
system --------- > report components --------- > Define forms --------- > Define forms for
profitability reports-(The Tr code is KE34)
Double click on create Form

Operation concern f : FSL 1
Enter
From : FSL Form des: FSL Form
Select two axes (matrix) radio button
Select operating concern currency radio button
Enter
Double click on row 1

Select value field with characteristics radio button
Enter
Value field : select VV010 - Revenue
Select value field with characteristics radio button
Enter
Value field : select VV140 -cost of goods sold
Select formula radio button
Enter
Select Y001 revenue
Select minus button
Select Y002 cost of goods sold
Enter
Short text : Net profit
Select copy short text button
Enter
Double click on column 1
Select characteristics radio button
Enter
From available characteristics Select plant /Actual indicator
Select left arrow
For plant /actual indicator From : Select 0 actual data
Save
From the menu select Edit --------- > General data selection ---------------> General data selection
From the available characteristics column
Select record type, period /year
Select left arrow
For record type
From column : Select B direct posting from FI
To column : Select F billing data
For period /year Select variable on /off check box
For from column
Local variable : 1
Press enter
For to column select variable on/off check box
Local variable : 2
Enter
Save
From the select Extras --------- > variables --------- > variable definition

For name 1 description : From period /year
For name 2 Description : To period /year
Enter & save
Create profitability report:
Path: SPRO --------- > Controlling --------- > Profitability analysis --------- > Information
system --------- > report components --------- > Define forms --------- > Create
profitability report
Double click on crate profitability report

Report name : FSL report
Description : FSL profitability report
Tr code is KE31
Select report with form radio button
Description : FSL form
From characteristics list
Select customer, plant, product, sales organization and sales order
Select left arrow
Select output type tab
Select classic drill down radio button
Select available on selection screen check box
Save
Form period/year : 01.2011
To period /Year : 12.2011
Execute
Ignore the message select press yes button
To view sales order wise profitability
From the menu select navigate --------- > with drill down
Double click on Sales order
This called date cube

NEW GENERAL LEDGERS ( ECC 6 NEW FEATURES)
New General ledger (Multiple ledgers)
Company code FSL assigned fiscal year variant V3 OL- Leading ledger
For Jan - Dec fiscal year variant K4 Fi Non leading ledger
FSL group in UK July - June fiscal year Variant V6 - F2 Non leading ledger
When we create ledger F1 ledger group F1 will be created and ledger F1 will be assigned
automatically
When we create ledger F2 ledger group F2 will be created and ledger F2 will be assigned
automatically
At the time of posting we have to specify ledger group
At the time of posting if we don’t specify any ledger group
All ledgers will be update automatically
At the time of posting we want to update only ledgers OL and F1
Create a ledger group called F3 and assigned ledger OL and F1
If we want to update only ledger F1 and F2 create a ledger
Group called F4 and assigned ledger F1 and F2
If we want to update only ledger F1 at the time of posting we give ledger group F1
When the ledger group consists of OL and other ledgers
OL should be the representative ledger at the time of posting
System checks weather representative ledger periods are open or not
When the ledger group consists of F1 and F2 the representative ledger can be F1 and F2
At the time of posting it generates document numbers in non leading ledger also
In live environment we use only one number range for all non leading ledger document types
If we give no. range interval only for that no. range it applies for all the document types
CUSTOMIZATION
Activate new general ledger accounting:
Path: SPRO --------- > Financial accounting --------- > Financial accounting global settings
--------- > Activate new general ledger accounting
Select new general ledger active check box

Save
(This is one time job work at client place)
Define ledgers for general ledger accounting

settings (new) --------- > Legers --------- > Ledger --------- > Define ledgers for general
ledger accounting

Ledger : F1 ( Text filed)
Ledger name : Non leading ledger F1for FSL
Totals table : FAGLFLEXT
Ledger : F2
Ledger name : Non leading ledger F2 for FSL
Totals table : FAGLFLEXT
Save
Define and activate non-leading ledgers:
settings (new) --------- > Legers --------- > Ledger --------- > Define and activate non -------
-- > leading ledgers
Give the ledger : F1
Enter
Company code : FSL
Fiscal year variant : K4
Posting period variant : FSL
Save
Select back arrow

Enter
Company code : FSL
Fiscal year variant : V6 (July to June)
Posting period variant : FSL
Save
Define ledger group:
settings (new) --------- > Legers --------- > Ledger --------- > Define ledger group

Ledger group : F3
Description : Ledger group F3 for FSL
Save
Save request
Double click on ledger assignment folder
Select Ledger : OL
Deselect representative ledger check box
Ledger : F1
Deselect representative ledger check box
Save
Define document types for entry view in a ledger
settings (new) --------- > Document --------- > Document types --------- > Define
document types for entry view in a ledger.

Enter
Type Number range
SA 70 (give it any number range)
KR 70
DR 70
AA 70
WE 70
WA 70
WL 70
RE 70
RV 70
Save
Select back arrow

Enter
Type Number range

KR 71
DR 71
AA 71

WE 71
WA 71
WL 71
RE 71
RV 71
Save
Define document types for general ledger view
settings (new) --------- > Document --------- > Document types --------- > Define
document types for general ledger view

Enter
Type Number range
KR 72
DR 72
AA 72
WE 72
WA 72
WL 72
RE 72
RV 72
Save

Select back arrow
Ledger : F2
Enter
Type Number range

KR 73
DR 73
AA 73
WE 73
WA 73
WL 73

RE 73
RV 73
Save
Define document number ranges for entry view:
settings (new) --------- > Document --------- > Document number rages --------- >
Documents in entry view --------- > Define document number ranges for entry view

No.range : 70
Year : 2011
From no. : 800001
To no. : 900000
Enter
No.range : 71
Year : 2011
From no. : 900001
To no. : 1000000
Enter and save
Define document no.range for general ledger view:
settings (new) --------- > Document --------- > Document no.rages --------- > Documents in
general ledger view --------- > Define document no.range for general ledger view

No.range : 72
Year : 2011
Form number : 1000001
To number : 1100000
Enter
No.range : 73
Year : 2011

To number : 1200000
Enter & save
END USER AREA
Posting of transaction :
Path: Accounting --------- > Financial accounting --------- > General ledger --------- >
Posting --------- > Enter general posting for ledger group (Tr code is FB01L)

Type : SA
Ledger group : blank
Company code : FSL
Posting key : 40
Account number : 200105
Enter
Text : Equity share capital receipt
Posting key : 50
Account no. : 100000 Equity share capital
Enter
Amount : *
Text : +
Document ---- --------- > Simulate & Save
Document date : Todays date
Type : SA
Ledger group : F3 (OL, F1)
Company code : FSL
Posting key : 40
Enter
Amount : 25000
Text : Equity share capital receipt
Posting key : 50
Account no. : 100000 Equity share capital

Enter
Amount : *
Text : +
Document --------- > Simulate & Save
To view the ledger
Path: Accounting --------- > Financial accounting --------- > General ledger --------- >
Account --------- > Display balances (new) (Tr cod is FAGLB03)
Account number : 100000

Company code : FSL
Fiscal year : 2011
Ledger : 0L
Execute
Double click on cumulative balance 125000
Double click on document no
Select document no.check box
Select display document button
Select call up document overview button
Select choose ledger button
Change the ledger : F1
Enter
Execute
Select back arrow
Select choose ledger button
Change the ledger : F2
Enter
Execute
Segments Creation
In profit centre accounting
1st Scenario 1st scenario

HYD Location HYD Location Segment
I I and
I I
Steel Cement Pharma business Steel Cement Pharma Profit

Division Division Division area and Division Division Division center
Profit
center
2nd Scenario 2nd scenario
HYD BGL MUM Business HYD BGL MUM Segment

LOC LOC LOC area LOC LOC LOC or
I I I or I I I
Steel Cement Pharma Profit Steel Cement Pharma Profit
Division Division Division Center Division Division Division Centre
The disadvantage in business area is it will not pick up business area for automatically
generated line items
Eg: central excise and sales tax business area
Trail balance will not match we have to run business area clearing
Instead of business area go for segments
In profit center segment will be assigned once we update profit centre automatically segment
will be updated
SAP Note: no future developments for business area
Define segment:
Path: SPRO --------- > Enterprise structure --------- > Definition --------- > Financial
accounting --------- > Define segment

Segment Description
HYD Hyderabad segment
BGL Bangalore segment
Assign segment in profit centers:
Path: Accounting --------- > Controlling profit center accounting --------- > Master data -
-------- > profit center --------- > Individual processing change (Tr code is KE52)

enter
Profit center : select Steel
Enter
Segment : select HYD

Enter
Select activate button (Shift +F1)
One more profit centre

Enter
Segment : select HYD
Select activate button
DOCUMENT SPLITTING
In document splitting, the line items are split according to selected dimensions -
Eg: Profit Center wise, Segment wise
We can prepare Balance sheet and profit and loss account for the selected dimensions.
Eg: Sales of steel and cement to one customer
Sales
Customre X Account Dr 200000
To Sales Steel 150000 Steel profit center HYD segment
To Sales cement 50000 Cement profit center HYD segment
Due to document splitting

Customre X Account Dr 200000
General Ledger view:
Sundry debtors Dr 150000 Steel profit center HYD segment

Sundry debtors Dr 50000 Cement profit center HYD segment
Creation of 3GL masters : FS00
A) Sales -Steel Sales

B) Sales -Cement Sales
C) Zero balance clearing a/c Current liabilities & provisions
FS00
GL Account no. : 300010

Company code : FSL
Give the Gl A/c No. : 300005 Sales local own goods
Company code : FSL
Enter
Change short text : sales Steel
GL account long text : sales Steel
Select Create/Bank/Interest tab
Field status group : G029 (revenue)
Save
Valid from : 01.04.2011
Enter
Save
Give the GL A/c No. : 300011

Company code : FSL
Give the GL A/c : 300010
Company code : FSL
Enter
Change short text : sales Cement
GL account long text : sales Cement
Save

Save
GL A/c No. : 100550

Company code : FSL
Give the GL A/c No : 100505 VAT payable
Company code : FSL
Enter
Change short text : Zero balance clearing
GL account long text : Zero balance clearing
Select create /Bank /Interest tab
Change field status group : G067 (Reconciliation account)
Save

Classify G/L Accounts for document splitting:
Path: SPRO --------- > Financial accounting (new) --------- > General ledger accounting (new)
--------- > Business transactions --------- > Document splitting --------- > Classify G/L accounts
for document splitting
Give your chart of accounts : FSL

Enter
Account from Account to Category Description

100000 299999 01000 Balance sheet account
300000 399999 30000 Revenue
400000 499999 20000 Expense
Save
Define Zero balance clearing account
--------- > Business transactions --------- > Document splitting --------- > Define Zero balance
clearing account
Select account key : 000

Double click on accounts folder
Chart of Accounts : FSL
Enter
Give the G/L account : 100550 Zero balance clearing A/c
Save
Activate documents splitting
--------- > Business transactions --------- > Document splitting --------- > Activate documents
splitting
Select document splitting check box

Save

END USER AREA
Posting of sales invoice: (F-22)
Give the document date : Todays date

Type : DR
Company code : FSL
Posting key : 01
Customer Account : 3000501
Enter
Amount : 200000
Text : Sales invoice posting
Posting key : 50
Account : 300010 Sales Steel
Enter
Amount : 150000
Text : +
Select right arrow button for profitability segment

Posting key : 50
Account no. : 300011 Sales Cement
Enter
Amount : *
Text : +
Select right arrow button for profitability Segment
Give the profit center : Cement
Document - --------- > Simulate
From the menu select Document ----- --------- > Simulate General ledger
Select back arrow
Save

CAPITAL WORK IN PROGRESS - LINE ITEM SETTELMENT
(ASSET ACCOUNTING AREA)
Capital work in progress line item settlement

Machine purchase Debit to CWIP Machine no.5
01.09.2011
Freight charges 03.09.2011 On 6-9-2011 the asset commissioned as machine no 5
Commissioning charges Settle capital work in progress line item wise to machine no 5
6-9-2011
Define settlement profile:
Path: SPRO --------- > Financial accounting --------- > Asset accounting --------- >
Transactions --------- > Capitalization of assets under construction --------- > Define /Assign
settlement profiles (TR code is OKO7)
Double click on define settlement profile

Select settlement profile AI( Settlement assets under construction )
Select details folder
Allocation structure : select A1( CO allocation structure)
Default object type : select FXA asset
Select equivalence numbers check box
Under valid reserves
For fixed assets : Select settlement required
Document type : AA (Asset Posting)
Max no. distribution rules : 999
Residence time : 12 months
Save
Double click on assign settlement Profile to company code
Enter
For company code FSL assign settlement profile AI
Save

ENDUSER AREA
Creation of capital work in progress asset master (AS01):
Give the asset class FSL4000 capital work in progress general

Company code : FSL
Enter
Description : CWIP -General
Capitalized on : 01.09.2011
Select time dependent tab
Select depreciation areas tab
Depreciation key : 0000 (no depreciation)
Select no depreciation and no entries
Save
Note down the asset no.500001-0
Machinery purchase posting (F-90)
Give the doc .Date & Posting date : 01.09.2011

Type : KR
Company code : FSL
Posting key : 31
Vendor account : 3900501
Text : Machinery purchase posting
Posting key : 70
Account no. : 500001-0
Transaction type : 100 External acquisition
Enter
Amount :*
Text :+
Freight payment (F-02)
Give the Doc date : 5-9-2011

Posting date : 5.09.2011
Type : SA
Company code : FSL
Posting key : 70
Account : 500001-0

Transaction type : 100
Enter
Text : Freight payment
Posting key : 50
Account no. : 200105 SBI current a/c
Enter
Amount :*
Text :+
Creation of machinery master (AS01):
Give the asset class : FSL 2000 Dept A

Company code : FSL
Enter
Description : Machine no.5
Capitalized on : To days date
Select time dependent tab
Select depreciation area tab
Depreciation key : FSL1 5%SLM
Useful life : 15 years
Period : 6 months
Ordinary depreciation start date : Today’s date
Save
Note: the asset no.200002-0
Settlement of CWIP to machine no.5
Path: Accounting --------- > Financial accounting --------- > Fixed assets --------- > Posting
--------- > Capitalized asset under construction --------- > distribute (Tr code is A1AB)
Company code : FSL

Asset : 500001
Sub number :0
Execute
From the menu select Edit --------- > select --------- > select all (F5)
Select enter button
Category : select FXA asset
Settlement receiver : 200002-0
Give the percentage : 100
Select back arrow

Save
Select settlement button (Shift +F8)
Give the asset value date : 07.09.2011 (Today’s date)
Text : CWIP settlement
Execute
Select simulate button
Go and see the document (FB03)

Enter
Note : In live environment you take a purchase of machinery don’t enter directly Asset account,
first enter in Capital Work in Progress after commissioning added all charged convert to asset
accounting.
PRODUCT COSTING
This is used for valuation of inventories i.e. finished goods and Work in progress
PP Module
MM Module |
FI Module | à Product costing
CO Module |
Note: SAP lab : Product costing made easy BPB publication -Not covered product costing
Create a cost estimate with quantity structure
Product costing
I
Cost element with Cost element with out
Quantity structure Quantity structure
(PP Module is implemented) (PP Module is not implemented)
Product costing
I
Product cost Product cost Product cost
By order By sales order By period

Product cost by order
I
Standard costing (primary costing) Actual cost (simultaneous costing)
Production valuation will be In the month end we get actual cost
At standard cost variances will be settled at accounts
How standard cost will be arrived at :
Sales budget for next month Production budget Raw Material requirement
Planning
(Make to orders (confirmed orders) +

And make to stock (expected orders)) Overhead planning =
Standard cost
Cost sheet for FSLFG1

Raw materials xx AS2 stock valuation
Raw material overheads xx At COGM level or
Production costs xx COGM + Admin Exp
Cost of goods manufactured (COGM) xx
Administration Expenses xx
Salling & Distribution exp. xx
----
Cost of goods sold (COGS) xx
How Raw material standard cost will be arrived at:

To produce 1kg of FSLFG1 we required FSLRM1
1kg and FSLRM2 - 1kg
PP Module: Bill of Material (BOM)

To produce 1kg of FSLFG1
FSLRM1 1Kg
FSLRM2 1Kg
MM Module : Material Master- accounting view

FSL RM1 Moving AVG price 75.27
FSLRM2 ,, 100

Raw material standard cost =(Quantity in BOM - PP Module) * (Price from material master -
MM module)
(1kg * 75.27) + (1kg * 100)= 175.27
Raw material overheads
Freight charges - where the cost is high when we receive the material it will be added to
material - when we consume automatically proportionate cost is charged.
Expenses like loading and unloading charges where the cost is normal charge to P&L account
and It will be added to material.
Clients will tell us take 5% raw material cost as RM over heads
RM over heads cost =175.25 x 5%=8.76
Production costs:
In co module we have cost centers - in PP module we have work centers - in cost centers we
have planned the costs.
PP work centers Dept A Dept B Dept C Dept D
Work centers Dept A Dept B Dept D

Issue RM 1 routing FSLFG1
Issue RM 2 (process flow)
In co cost centers Dept A Dept B Dept C Dept D
Salaries 400000
Wages 200000
Power 120000
-------
Planned cost 720000
=====
Machineries 100
Working for 3 shifts for 30 day’s
Machines hours 100 machines * 30 days * 3 shifts (24 Hours )
(activity type) 72000 Hrs.
Machine hour rate 720000/72000=10 Rs
To Produce FSLFG1 5Hrs.
Hours required
Production cost : (Hours required in Dept A * Machine hour rate)+(Hours required in Dept B*
Machine hour rate )+ (Hours required in Dept D * Machine hour rate)
5Hrs * 10 Rs=50 Rs
Eg: allocation of over heads.

Production Qty Hrs Req Cost
FSLFG1 71999Kgs 1
FSLFG2 1 Kg 71999
---------- --------- ----------
72000 72000 720000
If we allocate cost based on production
FSLFG1 720000*71999/72000=71999
FSLFG2 720000*1/72000= 10
--------
720000
=====
If we allocate cost based on hours
FSLFG1 720000*1/72000 = 10
FSLFG 2 720000*71999/72000=71999
-----------
720000
========
Active based costing.
Stock expected cost
Raw material over heads 175527
8.76
Co -Consultants job:
Standard cost (preliminary costing)

1. Creation of 2 secondary cost elements (Use Tr.code is KA06)
A) RM overhead rate
B) Activity allocation

Enter
Valid from : 01.04.2011 to 31.12.9999
Enter
Give the name : RM Overhead rate
Description : RM Overhead rate
Cost element category : Select 41 overhead rates
Save
Enter
Name and : Activity allocation
Description : Activity allocation
Cost element category : select 43 Interval activity allocation
Save
Creation of activity type -Machine hour:
Path: Accounting --------- > Controlling --------- > cost Center accounting --------- >
Master data --------- > Activity type --------- > Individual processing --------- > create
(Transaction code KL01)
Activity type : FSL

Enter
Give the Name & Description: Machine hour
Activity unit : select H
Cost center categories : Select * (All cost center categories)
Active type category : select 1 (Manual entry, Manual allocation)
Allocation cost element : 1100001
Activity price indicator : 5(actual price, automatically base on activity)
Save
Creation of 2 cost centers: (Tr.code is KS01)
Give the cost center : Dept G

Enter
Name : Dept G
Description : Dept G
Save
Cost center : Dept H

Enter
Name : Dept H
Description : Dept H
Cost center category : select 9(Allocation cost center)
Save
Create of cost center group (Tr code is KSH1)
Give the cost center group : FSLPRODN

Enter
Description : FSL Production cost center group for FSL
Select insert cost center button
Select cost center Dept G
Save
Define overhead keys:
Path: SPRO --------- > Controlling --------- > Product cost controlling --------- > Product cost
planning --------- > Basic settings for material costing --------- > overheads --------- > Define
overhead keys
Select new entries

Overhead key : FSL1
Description : FSL Overhead key
Save
Define overhead groups
planning --------- > Basic settings for material costing --------- > Define overhead groups

Overhead group : FSL1
Overhead key : FSL1
Name of overhead group : FSL over head group
Save
Define calculation basis
planning --------- > Basic setting for material costing --------- > Over head --------- > costing
sheet components --------- > Define calculation bases

Base : F1 (Text filed)
Name : Raw materials
Base : F2
Name : Production cost
Save

Select Base F1
Double click on details folder
Enter
To cost element : 400099 RM consumption
Save
Select back arrow
Select base F2 Production cost
Enter
To cost element : 400199 Personnel & Manufacturing group

To cost element : 400299 manufacturing cost

To cost element : 400599 Depreciation a/c
From cost element : 1100001 Activity allocation

Save
Define percentage overhead rates:
sheet components --------- > Define percentage overhead rates
Overhead rate : F3
Name : FSL RM overhead rate
Dependency : Select D010 Overhead type/Overhead key
Save
Select F3

Valid from To Controlling area Overhead type Overhead key Percentage
01.04.2011 31.03.2011 FSL Select 2 FSL1 5
01.04.2011 31.03.2011 FSL 1 FSL1 10

Define Credits
sheet components --------- > Define Credits

Credit : F4
Name : FSL RM credit key
Save
Select : F4
Enter
Valid to : 31.03.2012
Cost element : 1100000 RM overhead rate
Fixed percentage : 100%
Cost center : Dept H (Allocation cost center)
Save
How Actual over head rate is calculated
1. FSL RM receipt
Inventory RM Local Dr 500000
To GR/IR CLRG RM LCL 500000
2. Loading & Unloading charges

Loading & Unloading charges Dr 4000 Dept H
To Bank 4000
3. FSLRM 2 Receipt
Inventory RM local DR 800000
To GR/IR clearing RM local 800000
4. Loading & Unloading charges payment

Lodging & unloading charges DR 6000
To Bank 6000
5. RM Consumption for production Order 1
RM consumption local DR FSLRM1 40000 Order 1

RM Consumption local DR FSLRM2 30000 Order 1
To Inventory RM local 40000
To Inventories RM local 30000
6. RM consumption for production order 2
RM consumption local DR FSLRM 1 10000 Order 2

RM Consumption local DR FSLRM2 20000 Order 2
To inventory RM local 10000
To Inventory RM local 20000
RM consumption for the month
RM consumption for the month 100000

Lodging & Unloading charges 10000
% on consumption 10% actual overhead rate
Cost center Dept H
Loading & Unloading 4000 from Order 1 7000

Loading & Unloading 6000 from Order 2 3000
RM cost
FSLRM1 40000 10000

FSLRM2 30000 70000 20000 30000
RM over head rate 10% 7000 3000
(Actual 10%)

Indirectly we are allocating loading and unloading charges to production orders based on
Raw material consumption values.
Define costing sheets:

Path: SPRO --------- > Controlling --------- > Product cost controlling --------- > Product
cost planning --------- > Basic setting for material costing --------- > Over head --------- >
Define costing sheets

Costing sheet : FSL
Description : FSL Costing Sheet
Save
Select costing sheet FSL
Double click on costing sheet rows folder
Row Base Overhead Description From To Row Credit
10 F1 Raw materials
20 F3 FSLRM over head rate 10 10 F4
30 F2 Product cost
40 Cost of goods Mfg 10 30
Save
Assign costing sheet to plant :
planning --------- > Material cost estimate with quantity structure --------- > Define costing
variants (TR code is OKKN)
Select costing variant PPC1 standard cost
Select valuation variant button
Select create beside valuation variant /plant
In plant : FSLP
Save
Select back arrow

Select valuation variant : 001 with plant BILP

Select overhead tab
1 Give the costing sheet : FSL costing sheet
2 Give the costing sheet : FSL costing sheet
Save
Define cost component structure:
To get the breakup of standard cost we create cost component structure
Path: SPRO --------- > Controlling --------- > Product cost Controlling --------- > Product cost
planning --------- > Basic settings for material costing --------- > Define cost component
structure. (OKTZ)
Select cost component structure : 01

Double click on cost components with attributes folder
Select component structure : 01 with cost component 10 raw materials
Double click on assignment: Cost component -cost element interval folder
Cost competent structure : 01
Chart of Accounts : FSL
To cost element : 400099
Cost component : select 10 RM
Save
Select back arrow
Select cost component structure 01 with cost component 80 Material over head
Double click on assignment: Cost component cost element -Interval folder
Cost component structure : 01
Chat of Accounts : FSL
From cost element : 1100000 RM overhead
Cost component : 80 Material overhead
Save
Select cost component structure : 01 with cost component 50 production machine
Double click on assignment: cost component -cost element interval folder

To cost element : 400299
Cost component : select 50 production machine
One more
From cost center : 400500
To cost center : 400599
Cost component : 50
One more
Cost component : 50
Save
Double click on cost component structure folder
For cost component structure 01 select active check box
Save
Note: The above procedure is to be followed to 02 also
PP CONSULTANT JOB:
Define MRP controller:

Path: SPRO --------- > Production --------- > material requirements Planning --------- >
Master data --------- > Define MRP controllers

Plant : FSLP
MRP controller : Mr.A
Save
Define floats (Scheduling margin key)
Floats -Buffer days or grace days
Production order creation 12.09.2011 2 day’s

Production order release 13.09.2011 2 day’s
Production start date 14.09.2011 2 day’s
Production end date 24.09.2011 2 day’s

Path: SPRO --------- > Production --------- > Material requirements planning --------- >
Planning --------- > Scheduling and capacity parameters --------- > Define floats
(Scheduling margin key)

Plant : FSLP
Margin key : FSL
Opening period : 2 days
Float before production : 2 days
Float after production : 2 days
Release period : 2 days
Save
Define production scheduler
Path: SPRO --------- > Production --------- > Shop floor control --------- > Master data ---------
> Define production scheduler
Plant : FSLP
Production scheduler : B
Description : Mr.B
Save
Determine person responsible for work center
Path: SPRO --------- > Production --------- > Basic data --------- > Work center --------- >
General data --------- > Determination person responsible
Plant : FSLP
Responsible person : Mr.C
Person responsible for work center : Mr.C
Save
CO END USER AREA:
Planning cost center wise (KP06)
Version :0
From period : 6 (September)
To period : 6 (September)
Fiscal year : 2011

Give the cost center : Dept G
Select page down button or next page button
Cost element : 400100 Salaries A/c
Select from based radio button
Select overview screen button (F5)
Plant fixed cost : 720000
Save
Planning for machine hours
Planning --------- > Activity output /Prices --------- > Change (KP26)
Version :0
From period :6
To period :6
Fiscal year : 2011
Cost center : Dept G
Activity type : FSL
Plant activity : 72000
Save
Calculation of Machine hour rate
Planning --------- > Allocations --------- > Price calculation (KSPI)
Select cost center group radio button

Cost center group select : FSLPROD
Execute
Select save button
MM END USER AREA
Creation of material master (MM01)
Give the material : FSLRM2

Industry sector : Mechanical Engineering
Material type : Raw material
Press select view button
Select basic data1, Select purchasing Select general plant data /storage1/Accounting1,Costing1
Select organization levels button
Plant : FSLP
Storage location : Hyderabad
Enter
Give the description : Raw material 2
Base unit of measurement : KG
Division : FS
Material group : FSLC

Select purchasing tab
Select accounting 1 tab
Valuation class : FSL1
Price control : select V moving
Moving price : 100
Save
One more material : FSLFG1

Industry section : Mechanical engineering
Material type : Finished product
Press select view button
Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1,
accounting , Costing 1
Enter
Plant : FSLP
Storage location : Hyderabad
Enter
Description : Finished product 1
Base unit measurement : KG
Division : FS
Select MRP1 tab
MRP type : select PD (MRP)
MRP controller :A
Lot size : select EX lot for - lot order quantity
Select MRP 2 tab

In -house production : 0 days

Schedule margin key : select FSL
Select MPR 3 tab
Availability check : select KP (no check )
Select work scheduling tab
Production scheduler : B
Select accounting tab
Valuation class : FSL2 Finished products
Price control : S (Standard price)
Standard price : 350
Overhead group : select FSL1
Save
PP END USER AREA
Creation of Bill of Material
Path: Logistics --------- > Production --------- > Master data --------- > Bills of material -
-------- > Bill of material --------- > Material BOM --------- > Create (CS01)
Give the material : FSLFG1

Plant : FSLP
BOM usage : select 1 production
Enter
For item 10 give the component FSLRM1
Quantity :1
Item 20 FSLRM2 : 1kg
Save
Creation of work center
Path: Logistics --------- > Production --------- > Master data --------- > Work centers ----
----- > Work centers --------- > create (CR01)
Plant : FSLP
Work center : Dept G
Work center category : select 0001 Machine
Select basic data button
Give the description : Dept G
Person responsible : Mr.C
Usage : 009
Under standard value maintenance

Standard value key : SAP1 Normal production
Select costing tab
Start date : 01.04.2011
For activity : Machine
Activity type : FSL
Activity unit : H (Hour)
Formula key : SAP002 (Production machine time)
Save
Create routings
Path: Logistics --------- > Production --------- > Master data --------- > Routings ---------
> Routings --------- > Standard routings --------- > Create (Tr code is CA01)

Plant : FSLP
Enter
Usage : select 1 production
Status : select 4 (released (general))
Select operation button
For operation tab work center : Dept G
Control key : select PP01 in hour production
Double click on operation 10
Machine standard value :5
Unit : H (Hour)
Save
CO -END USER AREA
Creation of cost estimate with quantity structure:
Path: Accounting --------- > Controlling --------- > Product cost controlling --------- >
Product cost planning --------- > Material costing --------- > cost estimate with quantity
structure -Create (Tr code is CK11N)

Plant : FSLP
Costing variant : select PPC1 (standard cost estimate for material )
Enter
Costing date from : Today’s date
Costing date to : 30.09.2011(month end)

Quantity structure date : 10.09.2011
Valuation date : 10.09.2011
Enter
From the menu select Costs ->Display cost components
Enter
Marking and releasing

Marking updates future price
In live environment we do estimate for Oct and store in the system for Oct
Releasing updates current price
On 1st of Oct - release - from that day onwards our production value will be taken with new
rates in training institute we do marking and releasing today i.e. from 10th of Sep
Path: Accounting --------- > Controlling --------- > Product cost controlling --------- >
Product cost planning --------- > material costing --------- > Price update (CK24)
Posting period :6
Fiscal year : 2011
Company code : FSL
Plant : FSLP
Material : FSLFG1
Select test run check box
Select marking allowance button
Costing variant : select PPC1
(Standard cost estimate for materials)
Save
Select back arrow

Execute
Select material FSLFG1
Select costing to tab
Select release button
Execute
Select material : FSLFG1
Select costing to tab
ACTUAL COSTING
CO consultant Job
Maintain version:

Path: SPRO --------- > Controlling --- --------- > General controlling -- --------- > Organization -----
-- --------- > Maintain version
Select version 0
Double click on settings for each fiscal year
Enter
Select year 2011
Exchange rate type :M
Select price calculation tab
Plan method : Periodic price
Actual methods : Periodic Price
Revaluation : Original business transactions
Cost component structure : 01 product costing
Save
Assign costing sheet to plan order and actual order:
Path: SPRO --------- > Controlling --------- > Product cost controlling --------- > Cost object
controlling --------- > product cost by order --------- > Manufacturing orders --------- >
Check costing variants for manufacturing orders (PP) (Tr.code is 0PL1)
Select costing variant PPP1 Production order plan

Select create button beside valuation variant /plant
In plant : FSLP
Save
Select back arrow
Select valuation variant : 006 with plant FSLP
Select overhead tab
Give the costing sheet : FSL costing sheet
Save
Select back arrow
Select costing variant PPP2 production Order Actual
Select create button beside valuation variant/plant

In plant : FSLP
Save
Select back arrow
Select valuation variant 007 with plant : FSLP
Select overhead tab
Costing sheet : select FSL costing sheet
Save
Define goods received valuation for order delivery:

controlling --------- > product cost by order --------- > Manufacturing orders --------- >
Define goods received valuation for order delivery
Valuation variant : 007 production order -Actual
Save
Work in process customization
Dept A Dept B Dept D

Issue RM1 we get FGFSLFG1
Issue RM2 issue Rm incurred production not received during the month
Over heads
Profit & Loss a/c

RM consumption Debit Nor credit for P&L a/c
Expenditure Debit
Expenditure in all the work centers will be taken as work in process actual costs
Entry
Work in process Dr Balance sheet a/c
To Inc/ Dec in WIP P&L a/c
P&L a/c
RM consumption Debit Inc/Dec in WIP credit
Expenditure Debit
No Profit / No Loss
Creation of GL Masters (FS00):
GL account : 200123

GL account : 200121 (Inv RMLCL)
Enter
Short text : INC/DEC in stock WIP
GL Long text : INC/DEC in stock WIP
Save
GL account : 300201
GL account : 300200
Enter
Short text : Work in process
GL Long text : Work in process
Save
Creation of 7 secondary cost elements (Tr code is KA06)

Valid from : 01.04.2011
Enter
Name & Description : Order /Project result analysis
Cost element category : select 31 (order /project results analysis)
Save
Reference cost element : 1200000
Enter & Save
Enter & Save
Enter & Save
Enter
Save
Enter

Save
Enter
Save
Define results analysis keys:
controlling --------- > Product cost by order --------- > Period end closing --------- > Work
in process --------- > Define results --------- > Analysis keys (Tr code is OKG1)
Result analysis key : FERT

Description : WIP calculation for production orders
Define results analysis versions(Tr code OKG9)

in process --------- > Define results analysis versions(Tr code OKG9)

Select controlling area FSL
Technical result analysis cost element: select 1200000
Save
Define valuation method (Actual cost) ( Tr code is OKGC)

in process --------- > Define valuation method (Actual cost) ( Tr code is OKGC)

Select actual cost button
Result analysis version: 0
Enter & Save
Define line Id’s
To get the breakup of WIP (Work In Progress)value line Ids are required.

in process --------- > Define line Id’s
Select line ID EL (Revenues)

EK Direct cost
GK Over head
FK Production cost and
ABR settled cost for controlling area 1000
Select copy as button (F6)

Change the controlling area 1000to FSL for all line ID’s
Enter & Save
Define Assignment (OKGB)

in process --------- > Define Assignment
For EL i.e Revenues 300000 - 399999 assign 00003+++++

For EK i.e. Direct costs 400000 - 400099 assign 00004000++
For GK i.e. Overhead rate 1100000 assign 0001100000
For FK i.e. Production costs
Personnel 400100 - 400199 assign 00004001++

Manufacturing 400200 - 400299 assign 00004002++
Depreciation 400500 - 400599 assign 00004005++
Activity allocation 1100001 assign 0001100001
For ABR i.e. Settled cost 1000001 assign 0001000001
Select line ID EL i.e. Revenues for Co.area 1000
Change the Co.area to FSL
Change masked cost element to 00003+++++ (5 times plus)
Enter & Save
The same procedure is to be followed by copying all IDs
Define update; (Tr.code is OKGA)
in process --------- > Define update

Version :0
Line ID : select EL revenues
Category : select N (costs not to be included)
Version :0
Line ID : Select EK (Direct cost)
Category : select K cost
WIP : 1200001
Revenues : 1200002
Version :0
Revenues analysis key : FERT
Line ID : GK over head
Category : select K cost
WIP creation : 1200003
Reserves creation : 1200004
Select page down button
One more controlling area : FSL
Version :0
Line ID : FK
Category : select A (Settled cost )
WIP creation : 1200005
Reserves creation : 1200006
Version :0
RA Key : FERT
LID : ABR
Category : A settled cost
Save
Define posting result for setting work in process:
in process --------- > Define posting results for setting work in process (OKG8)
Company code : FSL
Result analysis version : select 0
Result analysis category : WIPR (Work in Process with requirement to Capitalized)

P & L A/c : 300201
Balance sheet : 200123
Save
Define results analysis version (OKG9)

in process --------- > Define results analysis version
Select controlling area FSL
select details button
Select transfer to Financial accounting check box
Save
Variance calculation
Define variance keys:
controlling --------- > Product cost by order --------- > Period end closing --------- >
Variance calculation --------- > Define variance keys (OKV1)
Select variance key 00001 Production order

Change the variance key to FSL1
Change the name also variance key for FSL
Enter & Save
Define default variance keys for plants (OKVW)

Variance calculation --------- > Define default variance keys for plants
Enter
Assign variance key : FSL1
Save
Define target cost version: (OKV6)

Notes:
Budgeted cost =Budgeted production Qty * Standard price
Standard cost =Standard quantity * Standard price
Target cost =Actual production qty * standard price
Actual cost =Actual Production * actual price
Path: SPRO-Controlling --------- > Product cost controlling --------- > Cost object controlling
--------- > Product cost by order --------- > Period end closing --------- > Variance calculation
--------- > Define target cost version
Select controlling area 1000 with target cost version 0
Change the controlling area to FSL
Change the description to target cost version for FSL
Enter & Save
Assign variance key in Material master:
Path: Logistics --------- > Material management --------- > Material master --------- >
Material --------- > Change --------- > Immediately (MM02)
Give the material no : FSLFG1

Select costing 1 view
Enter
Enter
Variance key : select FSL1
Save
Settlement customization:
Creation of cost element group (KAH1)
Give the cost element group : FSLPRODN

Enter
Description : Production cost element for FSL
Select Edit-Cost element -Select insert cost element button
From C.E To C.E
400000 400099

400100 400199
400500 400599
1100000 1100001
Save
Create allocation structure:
Settlement --------- > Create PA transfer structure
Select structure E1 PA settlement, production variances
Double click on assignment line folder
Enter
Select assignment 20 price variance
Cost element group : FSLPRODN
Select variance on production orders radio button
Variance category : PRIV (Input price variance)
Double click on value fields folder
Quantity / Values : select Value field
Fixed / Variable : Select 1
Value field : VV140
Save
Press enter save in your request

Select assignment 30 quantity variance material
Variance category : QTYV (Input price variance)
Double click on value fields folder
Value field : VV140
Save

Select assignment 50 quantity variance material

Variance category : INPV (remaining input variances)
Value field : VV140
Save
Create settlement profile:

Settlement --------- > Create settlement profile
Select settlement profile PP)1 production order
Allocation structure : A1
PA transfer structure : E1
Select equivalence number check box
Select variance to costing - based Pro.a check box
Under valid receivers for
GL account : Select settlement optional
Document type : SA
Maximum no.of distribution rules : 3
Residence time :3
Save
Define CO.No.range interval for the business transactions :
RKL Actual Activity Allocation

KZP Actual overhead (Periodic)
KSII Actual Price calculation
User transactions code : KANK

Select maintain groups button
Double click on KZPI, KSII and RKL
Select Co. No. range interval for FSL check box
From the menu select Edit -Assign element group
Save

Define exchange rate for type P (Standard truncation for cost planning for INR to EURO
(Transactions code OB08)

Exchange rate type :P
Valid from : 01.12.2011
From currency : INR
To currency : EUR
Direct quotation : 0.02
Save
FI Consultant job
Raw material FSLRM2 receipt
I
Purchase order By way of Opening stock
Creation Inventory RM Local Dr
| To Stock taking
Goods Receipt
|
Invoice verification
Production order variance to settle to accounts

Production order differences Dr
To INC/DEC in stocks FG
Creation of GL masters (FS00)
Give the GL A/c No : 100599

Company code : FSL
Company code : FSL
Enter
Chang short text and GL account long text to Stock taking
Select create /bank/Interest tab
Change the field status group G049 (manufacturing cost accounts)
Save
GL A/c No. : 400201

Company code : FSL
Company code : FSL
Enter
Account group : Manufacturing cost
Select type /Description tab
Change short text and GL account long text to production order differences
Field status group change to G014 MM adjustment account
Save
Give the GL account no : 300200 INC/DEC stock in FG

Company code : FSL
Cost element category : select 22 external settlement
Save
Assignment of account for automatic postings (OBYC)
Double click on transaction PRD Cost (Price) differences

Give the Chart of Accounts : FSL
Enter
Save
Valuation modifier : X
Save
Select back arrow
Double click on transaction GBB offsetting entry for Inventory posting
General modification : AUA production
Account : 300200
General modification : BSA
Save

PP CONSULTANTS AREA
To check order type
Path: SPRO --------- > Production --------- > Shop floor control --------- > Master data ------
--- > Order --------- > Define order type
Select order type PP01 standard production order
Settlement profile : PP01
Save
Define order type dependent parameters:

Path: SPRO --------- > Production --------- > Shop floor control --------- > Master data ------
--- > Order --------- > Define order type dependent parameters (Tr code is OPL8)
Select order type PP01 for plant 1000

Plant : FSLP
Enter and save
Save request
Define scheduling parameters for production orders:
Path: SPRO --------- > Production --------- > Shop floor control --------- > Operations ---------
> Scheduling --------- > Define scheduling parameters for production orders (Tr code is
OPU3)

Plant : FSLP
Enter and save
Define confirmation parameters
Path: SPRO --------- > Production --------- > Shop floor control --------- > Operations --------
- > Confirmation --------- > Define confirmation parameters (OPK4)

Plant : FSLP
Enter and save

Define checking control
Path: SPRO --------- > Production --------- > Shop floor control --------- > Operations ------
--- > Availability check --------- > define checking control (OPJK)
Select business function : 1 & 2 for order type PP01 for plant 1000
Plant : FSLP
Enter
Plant : FSLP
Enter and save
END USER AREA
Creation of production order:
Path: Logistics --------- > Production --------- > Shop floor control --------- > Order ---------
> Create --------- > with material (Tr code is CO01)
Production plant : FSLP
Planning plant : FSLP
Order type : select PP01 Production order
Enter
Total Qty : 10
Start : Today’s date
Finished date : today’s date
Select cost order button (Ctrl+F7)
From the menu select Goto - --------- > Costs -------- > Analysis
Select back arrow
Select release order button (Ctrl+F1)
Save
Order no.60003245
Raw material receipt by way of opening stock
Path: Logistics --------- > Materials management --------- > Inventory management -------
-- > goods movement --------- > Goods receipt --------- > other (Tr code is MBIC)
Give the movement type : 561

Plant : FSLP
storage location : HYD

Enter
Give the material no. : FSLRM2
Quantity : 1000 kgs
From the menu select other goods receipts - --------- > display
Enter
Inventory RM LCL 100000 FSLRM2 FSL1 BSX
Stock taking 100000 FSLRM2 FSL1 GBB BSA
Qty * material
1000*100 rs
Raw material issue to production order: (Tr code is MB1A)
Select to order button

Order : 60003245
Enter
FSL RM1 Qty : 15

FSL RM2 Qty : 15
Save
From the menu select goods issue - --------- > display
Double click on accounting document no.
BSX
200121 Inventory RM local 1129.03 FSLRM1 FSL1
GBB VBR
400000 RM consumption local 1129.03 FSLRM1 FSL1
BSX
200121 Inventory RM local 1500 FSLRM2 FSL1
GBB VBR
400000 RM consumption local 1500 FSLRM2 FSL1
Qty consumed * Moving Avg. rate
Actual RM over head rate calculation Co end user
RM cost 2629.03
RM over head rate 10% 262.90
Actual overhead calculation
Path: Accounting --------- > Controlling --------- > Product cost controlling --------- > Cost
object controlling --------- > product cost by order --------- > Period end closing --------- >
single functions --------- > Overhead --------- > Individual processing (Tr code is KGI2)

Period :6
Fiscal year : 2011
Select text check box
Select dialog display check box
Execute
Select back arrow
Execute
Work in process calculation
single functions --------- > Work in process --------- > Individual processing --------- >
Calculate (Tr code is KKAX)
Give the over no. : 60003245

WIP period :6
Fiscal year : 2011
Result analysis version: select 0
Execute
Settlement of work in process to accounts (co enduser area)
single functions --------- > Settlement of individual processing (Tr code is K088)

Settlement period :6
Fiscal year : 2011
Select check transaction date check box
Execute
Select detail lists button
To view work in process report
object controlling --------- > Product cost by order --------- > Information system ---------

> Reports for product cost by order --------- > Object list --------- > Order selection (Tr code
is S_ALR_87013127)
Plant : FSLP
Material number : FSLFG1
From period : 01 2011
To Period :6 2011
Execute
Select report call button
Confirmation of production order

Path: Logistics --------- > Production --------- > shop floor control --------- > Confirmation
--------- > Enter --------- > For operation --------- > time ticket (Tr code is Co11N)

Operation /Activity : 10 kg
Confirmation type : select final confirmation
Yield to confirm : 10 kg
Activity 2 : 60 Qty
Unit : H (Hour)
Save
Production receipt
Path: Logistics --------- > Production --------- > shop floor control --------- > Goods
movement --------- > Goods receipt (Tr code is MB31)
Give document date : 30.09.2011

Posting date : 30.09.2011
Give the movement type : 101 (Goods receipt for order into ware house)
Order : 60003245
Plant : FSLP
Enter
From the menu select Goods receipt - --------- > Display
Enter
BSX

200122 Inventory FG 2337.50 FSLFG1 FSL2
GBB AUF
300200 INC/DEC in stocks FG 2337.50 FSLFG1 FSL2
Qty produced * standard rate
10*233.75
Fi enduser area
Salaries posting(F-02):
Document date : 30-9-2011

Posting date : 30-9-2011
Type : SA
Company code : FSL
Account : 400100
Enter
Amount : 9000
PSTKY : 50
Account : 200105
Enter
Amount :*
Text :+
Document --------- > Simulate and Save.
Acutual activity price calculation: (co end user area)
Path: Accounting --------- > Controlling --------- > Cost Center accounting --------- > Period end
closing -------- > Single functions --------- > Price calculations (KSII)
Cost center group : FSLPRODN
Execute
Save
Revaluation at actual price: (co end user area)
Path: SPRO ------- > Controlling --------- > Product cost controlling --------- > Cost object
controlling --------- > Product cost by order ---------- > Period --------- > End closing --------- >
single functions ----------- > Revaluation at actual prices --------- > Individual processing (MFN1)
Order : 60003245
Period :6

Year : 2011
Execute
Select next list level button
To make order technically complete: (PP end user area) (TECO)

Tr code C002
Order : 60003245
Enter
From the menu bar select Functions ---------- > Restrict processing ---------- > Technically
complete
Save
Calculation of variances
object controlling --------- > Product cost by order --------- > period ending closing ---------
> single functions --------- > Variances --------- > Individual processing (Tr code is KKS2)
Give the order no : 60003245

Period :6
Fiscal year : 2011
Double click on variance amount
Open one more session with (CO03)
Give the order no : 60003245
Enter
From the menu select go to - --------- > cost --------- > analysis
Press select layout button
Select layout 1 SAP02 cost trend
Settlement of variance to accounts: (co end user area)
In SEP we have taken WIP

In SEP also we have taken production
i) Calculation work in process once again KKAX work in process will be zero
ii) Settlement of work in process to accounts KO88
a) Work in process entry will be reversed
b) Variance will be settled to accounts

Calculation of work in process (KKAX)
Path: Upto single functions same path --------- > Work in Progress --------- > Individual
processing --------- > Calculate

WIP to Period :6
Fiscal year : 2011
Result analysis version: 0
Execute
Settlement of work in process to accounts : KO88

Settlement period :6
Fiscal year : 2011
Execute
Select details list button
GBB AUA
300200 INC/DEC in stocks FG 9554.43 FSLFG1 FSL2
PRD
400201 Production order diff 9554.43 FSLFG1 FSL2
300201 INC/DEC in stock WIP 2891.93 P & L debit
200123 work in process 2891.93 -Balance sheet credit

Co 20275091377345057 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Co 20275091377345057 PDF

Uploaded by

Copyright:

Available Formats

CONTROLLING (CO)

1. primary cost elements

4. Internal orders: This is used to view costs for specific task.

Exhibition costs: Sales men salaries, Advertisement discounts to customers

6 Product Costing: This is used for valuation if inventories

BASIC SETTINGS FOR CONTROLLING:

FI Organization Structure CO. Organization Structure

Company = Controlling Area

MAINTAIN CONTROLLING AREA:

Double click maintain controlling area.

Select new entries button

Controlling area : FSL

Cost Center standard hierarchy : FSLHIER

Double click on assignment of company codes folder

COST CENTER STANDARD HIERARCHY:

Cost center standard hierarchy : VSLHIER

MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS: (KANK)

1. CO through posting from FI (Business transaction - COIN

Document type SA Business transaction COIN

IN F-02 screen we post Manual posting Automatic posting

1. Repost Co line items (Business transaction -RKU3)

Transfer document wise

Salaries A/c Dr 500000 cost centers common 300000

2 Documents will be generated

Total documents generated

Transfer Line item wise

Report costs (Business transactions - RKU1)

No FI document will be generated

CO document only will be generated

Transfer cost element wise (GL Account wise)

30/04/2011 400100 Salaries 100000

30/04/2011 400101 wages 200000

30/04/2011 400300 Rent 150000

Planning primary costs (Business transaction RKP1)

Controlling area : VSL

Double click on COIN

Select Co.No.range interval for VSL check box

Versions are nothing but budgets

We have planned for the whole year version 0

Select version 0 (Plant /actual version)

COST ELEMENT ACCOUNTING:

To update CO records / sub modules cost elements are required

There are 2 types of cost elements

1. Primary cost element 2 Secondary cost elements

PRIMARY COST ELEMENT CATEGORIES:

SECONDARY COST ELEMENT CATEGORIES:

COST CENTER ACCOUNTING

Steps for postings to cost centers:

2. Display cost elements created

1. A) Creation of primary cost element at FI area

Use to FS00 - GL masters creation

1. B) Creation of Primary cost element at CO area:

Cost element : 400300 Rent Account

1) Marked default settings (OKB2)

Give the chart of Accounts : FSL

Create batch input session (OKB3)

Give the controlling area : FSK

Display primary cost elements created (KA03)

Select drop down button beside cost element

Transaction Code : OBC4

Give the GL account : 400100 salaries account

Give the GL Account : 400300 Rent A/c

Creation of cost centers: