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SAP CO NOTES

INDEX

PARTICULARS Page No.


CO Areas and Basic Settings for Controlling 3
Cost Center Accounting 11
Online Reconciliation Leger 23
1. Creation of GL Masters 25
2. CO Customization 27
3. FI Customization 28
Cross Company Code Postings 31
Maintain Overhead structure 34
Statically Key Figures (SKF) 38
Assessment 42
Internal Orders 46
Budgeting and Availability Control 60
Profit Center Accounting 64
Integration 76
1. Transaction Key /Process Key 77
2. Valuation Class 78
3. Assignment of accounts 89
4. MM Customization 90
5. FI Consultant job in MM 97
6. Assignment of Accounts for Automatic Postings(MM to FI) 100
7. FI Consultant job in SD
8. SD Steps 115
9.
Co-Profitability Analysis (CO-PA) 120
1. Data flow in CO-PA 120
2. Customization 122
3. SD End user area 126
Report Painter 129
Product Costing 132
1. Co Consultant Job (Activity based costing) 134
2. PP Consultant job 144
3. CO End User area 146
4. MM End User area 147
5. PP End user area 149
Actual Costing 153
1. CO Consultant job 153
2. PP consultant area 167
3. Asset Accounting area 174
New General Ledgers (ECC 6 New Features ) 179
1. Customization 180
2. Document Splitting 188
Central Excise and Sales Tax 192
1. Central Excise Customization (Purchase) 195
2. Central Excise customization (Sales) 211
3. SD End user area 217
Financial Statement Version 228
Asset Accounting Area 237
Project Report 238

1
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

CO AREAS :

1. Cost Elements 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

2. Cost Center Accounting: This is used to view department wise costs.

3. 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

4. Profit center accounting : This is used to view profitability product wise / Division wise / Location wise if
business area is not used in FI

5 Product Costing :This is used for valuation if inventories


Eg: Finished goods and work in process.
6. 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

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 --- Cost Center

2
(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 --- 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 – It is not possible in 1st
Scenario – 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 – Directly it is possible in 1st
scenario.

Also it is possible in 2nd Scenario – By creating cost center groups.

It means 2nd Scenario is more flexible.

MAINTAIN CONTROLLING AREA:

Path : SPRO – Controlling – General controlling – Organization – Maintain controlling area (Tr.Code is OKKP)

If we go for 1st scenario – company code should be the controlling area.

If we go for 2nd scenario we can use any code for controlling area code.

Double click maintain controlling area.

Select new entries button

Controlling area :BIL


Name :controlling area forBIL
Company code to controlling area : Select controlling area same as company code
Currency type : select 10 company code currency.

Once we select 10 company code currency , currency field, Chart of Accounts filed and Fiscal year variant filed will be
updated automatically.

Cost Center standard hierarchy : BILHIER


Save
Select yes button for the message system to create as a standard hierarchy
Select create request button
Short description : Co customization for BIL

Press enter
Press enter once again to save in the request.
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COST CENTER STANDARD HIERARCHY:
Cost center standard hierarchy : BILHIER
|
Cost centers Dept. A Dept.B Dept.C

At the time of cost center creation – It will ask under which hierarchy we are creating the cost centers.

In the report – when we give cost center Dept.A – It gives only Dept.A date. When we give cost center Dept.B – It gives
only Dept.B date.

When we give cost center hierarchy BILHIER – It gives all the cost centers data.

Double click on assignment of company codes folder


Select new entries button
Give the company code : BIL
Select save button or Ctrl+S
Press enter to save in your request
Double click on a activate components / control indicators folder
Select new entries button
Fiscal year :2007
Cost center : Select component active
Select active type check box
Order management select component active.
Select profit center accounting check box
Save
Ignore the warning message press enter

MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS:

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

CO No rang interval for the business transaction –COIN

FI Document type Co
And no.ranges

SA COIN
| |
01 |
|
1-100000 1-00000
Manual posting F-02 Automatic posting

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

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Option 1

Posting in FI

Wages A/c Dr 100000 Dept.A


Wages A/c Dr 200000 Dept.B
Wages A/ Dr 300000 Dept C
To bank 600000

1 FI Document
1 Co Document – COIN

Note :Automatic posting is a business transaction

Option 2

Posting in FI Posting in CO

Wages A/c Dr 600000 Dept common Dept A 100000


Dept.common Dept B 200000
Dept. Common Dept C 300000

To Bank 600000 Post Co line item

2 Documents
1 FI Document No FI document
1 CO Document –COIN 1 CO Document – RKU3

Transfer document wise/line item wise


Total documents generated

1. FI Document
2. CO Documents

Wages A/c Dr 600000 Dept Common Dept A 300000


Dept Common Dept B 200000
Dept Common Dept C 300000

Rent A/c Dr 50000 Dept A


To bank 650000 Repot CO line item

Transfer line item wise

Transfer document wise / Line item wise

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) 01/07/2007 split into Dept A and Dept X

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Dept A Dept X

30/04/2008 400100 Salaries 200000


30/05/2008 400100 Salaries 250000
30/06/2008 400100 Salaries 275000
----------
400100 total 725000 400100 Salaries 200000

30/04/2008 400101 wages 100000


03/05/2008 400101 wages 150000
30/06/2008 400101 wages 125000
----------
Total 400101 375000 400101 wages 125000

30/04/2008 400300 Rent 500000


31/05/2008 400300 Rent 50000
30/06/2008 400300 Rent 50000
--------
400300 Total 150000 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 : BIL


Select maintain groups button
From the menu select group – Insert
Text: Co doc no. range interval for BIL
From number :1
To number :100000
Enter
Double click on business transactions COIN
RKU3
RKU1
RKP1
Select Co.No.range interval for BIL 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:

Version are nothing but budgets

Original budgets Version 0


Revised budget version 1
Re revised budget Version 2

We can compare actual with original budget, Revised budget and Re revised budget

Path: SPRO – Controlling –General controlling – Organization – Maintain versions

6
Select version 0 (Plant /actual version )
Double click on settings for each fiscal year folder
Give the controlling area : BIL
Enter
Select new entries button
Fiscal year :2008
Exchange rate type :select B (Bank selling rate)

Once budgeting is completed at end user are a select version locked – So that no body can change budget figures.

Select save button or Ctrl+S

Press enter to save in your request


Select bank arrow
Planning is made attend user area after planning’s completed we select version locked check box , no body 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 our general A)Secondary cost elements are other than
ledger accounts general ledger accounts
B) Posting to primary cost elements are B) Postings to secondary cost elements are not
possiable possible. They are used to allocations /
Settlements

Dept C Dept A Dept B


(Service Dept) (Production Depts)
Salaries 100000
Wages 200000
Power 5000
In the month end, by using secondary cost element, we allocate costs
from service to
production Depts.

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

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12. Sales Deduction: This is used for expenditure accounts like sales commission Trade discount where CO-
Profitability analysis module is activated
22. External settlement( Settlement from CO – FI): This is used for allocation of internal order settlement to GL
Accounts / Assets.

SECONDARY COST ELEMENT CATEGORIES:

21. Internal settlement (Settlement from CO to CO) This is used for allocation of internal order settlement cost
to cost centers.
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 postings from one
cost center to other cost centers.
43. Internal Activity Allocation: This is used for calculation of activity types in production cost.
Eg: Machine hours rate / labour hour rate in product costing.

COST CENTER ACCOUNTING

This is used to view department wise costs we use cost center accounting.
1. Creation of primary cost elements, we can create
A) FI Area |
B)CO Area |- 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. To 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


Use to FS00 – GL masters creation
Give the GL account number : 400100 Salaries Account
Company code : BIL
Form the menu select GL Account display
Now select edit cost element button
Valid from date :01.04.2008
To date :31.12.9999 comes automatically
Enter
Cost element category : Select 1 (Primary cost / cost reducing revenues)
Select save button or Ctrl+S

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


Use transaction code FS00

Path: Accounting- Controlling- Cost element accounting-Master data-Cost element –Individual processing-
Create primary (Tr.code KA01 )

Cost element : 400300 Rent Account


8
Valid from :01.04.2008 to 31.12.9999
Enter
Cost element category :1 (primary cost /cost reducing revenue)
Save

1. C) Automatic creation of 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 : BIL


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)


Same path as above
Give the controlling area : BIL
Valid from :01.04.2008
Valid to :31.12.1999
Session name :BIL (This is text field)
Execute

Execute batch input session (Tr code is SM35)

Same path as above


Select session name : BIL
Select process button
Select session :BIL
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 : BIL
Enter

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Creation of field status group by making cost center required entry field: (Tr.Code is OBC4)

Select field status variant: BIL


Double click on filed status groups folder

100000 equity share capital G001 We can’t make cost center required for balance sheet accounts

400100 Salaries Account G001


For G004 we make cost center required and assign in salaries account
(i.e in expenditure accounts)

Double click on field status group G004 cost accounts


Double click on General data
Text make 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 make it option entry filed
Save

Press enter to save in your request

Assign group new field group in GL expenditure accounts (FS00)

Give the GL account 400100 salaries account


Company code :BIL
From the menu select GL account change select create / Bank / Interest tab
Filed status group change to G004
Save
Give the GL Account No.400300 Rent A/c
Company code :BIL
From the menu select GL account change
Change field status group to G004
Save

Creation of cost centers:

Path: Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-create


(Tr.code is KS01)

Cost center : Dept A


Valid from :01.04.2008 to 31.12.9999
Enter
Give the name : Dept A

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Give the description : Dept A
Person responsible :Mr.A
Cost center category : Select 1 production
Hierarchy area : select BILHIER
Business area :BILH
Currency :INR
Select save button or Ctrl+S
Ignore the warning message press enter
One more cost center : Dept B
Valid from :01.04.2008 to 31.12.9999
Reference cost center : Dept A
Controlling area : BIL
Enter
Change the name to Dept B
Change the description to cost center Dept B
Change the person responsible : Mr B
Other fields are common
Select save button
Ignore the warning message press enter
Cost center : Dept C
Valid from :01.04.2008 to 31.12.9999
Reference cost center : Dept A
Controlling area : BIL
Enter
Change the name to : Dept C
Change the description to cost center : Dept C
Change person responsible to Mr.C
Cost center category : Select to 2 (service cost center)
Select save button or Ctrl+s
Ignore the warning message press enter

Creation cost center groups:


Hierarchy : BILHIER
Cost centers Dept A Dept B Dept C Dept X Dept Y Dept Z
Category Production Prod Service Production Production Service
Business Area HYD HYD HYD BGL BGL BGL

If we want to see all cost centers data – BILHIER

If we want to see production cost centers data – Create a cost center group and assign Dept A . Dept B, Dept X and Dept
Y.

11
If we want to see HYD cost centers data cost – cost center group and assign Dept A, Dept b and Dept C

If we want so settled production cost centers data – create A cost center group and assign Dept A and Dept B

Path : Accounting – Controlling – Cost center accounting – Master data- Cost center group – Create (Tr.code is
KSH1)

Give the cost center name : BILHYD PROD


Enter
Description Hyderabad production cost centers BIL
Select Edit  Cost Center  Insert cost center button
Select the cost centers Dept A
Dept B
Save

Creation of cost Element group:

FI : Account groups Personnel cost CO:Dept wise personal cost or Administration

400100 salaries Create cost element group personnel and assign


400100 -400199
400101 Wages

400102 Bonus

400103 Staff welfare and Administration Create cost element group administration and
assign 400300-400399
400300 Rent
400301 Telephone exp
400302 Petrol exp In the report center Dept A Dept C
Or
Cost center GRP
Cost element
Or
Cost element GRP personnel administration

Path: Accounting –Controlling-Cost center accounting-Master data-Cost element group –Create (Transaction code:
KAH1)

Cost element group name : BILADMIN


Enter
Description : Administration expenses for BIL
Select insert cost element button (Shift+F4) (Edit –Cost element –Insert cost element)
From 400300 to 400399
Save

To enter exchange rate for type M for INR to EURO (Tr.Code is OB08)

Select new entries button


Exchange rate type : M (Average rate)
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Valid from :01.10.2008
From currency : INR
To : EUR
Direct quotation :0.02
Select save button or Ctrl+S
Press enter to save in your request

Posting of transaction in FI Transaction code:F-02

Give the document date : Today’s date


Type :SA
Company code :BIL
Posting key :40
Account :400100 salaries account
Enter
Give the amount :500000
Cost center : Dept A
Text :Salaries posting

One more expenditure

Post key :40


Account :400300 Rent account
Enter
Amount :100000
Cost center : Dept A
Text : Rent posting
Posting key : 50
Account :200105 SBI current account
Enter
Amount :*
Business area :BILH
Text : Expenditure posting
From the menu select Document  Simulate
Select save button or Ctrl+S

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 (if you want change the posting dates)
Select execute button
Keep the cursor and the first line item
Select document button
Select back arrow
Select change layout button (Ctrl+F8)
Select Document no.under column set
Select value in reporting currency under displayed columns

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Select left arrow or show selected filed button
Select reference document no.under column set
Select value in report current under displayed columns
Select left arrow
Select business transition under column set
Select document no. under displayed columns
Select left arrow
Enter

To view co documents:
Path :Up to reports for costs center accounting path is same -Line items – Co documents :Actual costs (transaction
code is KSB5)

Document no. :1 to 100000


Execute
Select folder button for document no.1

Report co line items:

Business transaction RKU3


FI doc.13
001 400100 Salaries 500000 Dept A 150000 Dept B
50000 Dept C

Report co line item


002 400300 Rent 100000 Dept A
003 200105 SBI 600000

Report co line item


Transfer document wise /line item wise , transfer line item wise
No FI document will be generated
Only document will be generated

Path: Accounting – Controlling-Cost center accounting –Actual postings-Report line items-Enter (Transaction code
is KB61)

Select document no. :13


Company code :BIL
Fiscal year :2008
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

Go and see the cost center report KSB1

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Give the cost center Dept A
Select execute button
To view cost element wise to total
Select cost element column
Select sub totals button
(Note:That is dues cost element wise total)

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.
No FI document will be generated
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 FI To open To open
and CO eg:COIN
B) Transaction which effect No check To open
only CO Eg.RKU3, RKU1
C) Transaction which effect To open No check
only FI Eg.Debit balance sheet
and credit balance sheet
Sept .08 March Oct 2008 to March 2009

An expenditure posting in FI for September. We can’t post since periods are not open.

Path: Accounting – Controlling-cost center accounting-Environment –Period lock-chang (Tr.code is OKP1)

Controlling area : BIL


Fiscal year :2008
Select actual button
15
Select period :01
Select lock period button
Save

Set controlling area :(OKKS):

Path :up to Environment the path is same  Set controlling area

Give the controlling area :BIL


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

Path :Accounting –Controlling cost center accounting –Planning –Cost and Activity inputs –Change (KP06)

Version :select 0 (Original budget)


From period :1
To period :12
Fiscal year :2008
Select next page or page down button
Cost center group :BILHIER
Cost element From :400000
Cost element To :499999

Free Form Bsed


If we select radio button If we select from based radio button
We have to select cost element from the drop The cost element list in a available on screen
down list and plan against the Climents plant against cost elements

Select form based radio button


Select overview screen button
For cost element 400100 Plan Fixed cost 1500000
Distribution key 1 Equal distribution
Select cost element 400100
From the menu select  Goto –Period screen
Select back arrow
Fro cost element 400300 Plan fixed cost 960000
Distribution key 1
To plan for Dept B –Select next combination button
To go back to previous dept –select previous combination button
Save

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To view variance report cost center wise

Path :Accounting – Controlling-Cost center accounting –Information system –Reports for cost center accounting –
Plan /Actual comparisons –Cost centers: Actual /Plan/Variance (Tr code is S_ALR_87013611)

Controlling area :BIL


Fiscal year :2008
From period :10
To period :10
Plan version :0
Cost center Value :Dept A
Execute
Keep the cursor on Salaries 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.
Select document button

ONLINE RECONCILIATION LEDGER

 Reconciliation used when


 when number of company codes having one controlling area – 2nd Scenario
 It can be at controlling area
 All the company codes should use the same Chart of Accounts
 due to online reconciliation ledger, it generated in a document in FI

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BIL Controlling area
|
------------------------------------------------------------------------
| |
Company code BIL company code BSL
| |
------------------------------------ ------------------------------------
| | | | | |
Dept A Dept B Dept C Dept X Dept Y Dept Z

If salaries paid and posted FI at (F-02)

Salaries A/c
----------------------------------
100000 |
|
Out of 100000 salaries 20000 belongs to company code BIL

If we use the reconciliation account at cost center level and the 20000/- is transfer to company code BSL (Dept X) it
passes the entry in financial automatically
Here Reports at – No FI records
In BIL Books
BSL Dr 20000
To Salaries a/c 20000
In BSL books

Salaries account Dr 20000


To BIL a/c 20000

Customization at Finance:

To copy company code BIL customization including accounting to BSL

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 :BIL
To company code : BSL
Enter
Select Yes for the message (for copy the GL accounts)
Select No button allocate a different local currency
Ignore the message press enter
Select create request button
Short description :Customization for Birla Steel Limited
Press enter
Enter once again to saving the request

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Go on press enter till you got the message company code BIL copied to BSL with out 75 number range object
Ignore the message press enter
Select back arrow
Double click on edit company code data
Select position button
Give the company code :BSL
Enter
Select company code : BSL
Select address button
change the company name to : Birla Steel 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

Select position button


Give the company code : BIL
Enter
For the company code :BSL assign BIL(group name)
Select save button or Ctrl+S
Press enter to save in your request

Document type SA should allow inter company postings: (OBA7)

Select type : SA
Select details button
Select inter company postings check box
Save
Press enter to save in your request

Creation of GL Masters FS00

BIL Books BSL Books


1) FI/CO reconciliation account under only 1)FI/CO reconciliation account under any
expediter group which should not be a cost expenditure group which should not be a cost
element 400150 –Personnel group element 400150 personnel group
2) Birla Steels limited, current assets, Loans & 2)Birla Industries Limtied current Assets,
Advances 200160 Birla Steel Limited Loans & Advances 200161 – Birla Industries
Limited

Same chart of accounts


BIL chart of accounts BIL
BSL chat of accounts BIL
When we use same chart of accounts, account description should be same in all the company codes.

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In BSL books – If we create account No.200160 – It takes Birla Steels Limited- we can not crate our account in our
books.

Creation of GL masters FS00

Give the GL account no. :400150


Company code :BIL
Select with template button
Give the GL account o. :400100 Salaries
Company code : BIL
Enter
Change short text & GL account long text to FI/CO reconciliation account
Select create / bank /interest tab
Field status group change to ‘ICCF’ CO < -> FI reconciliation posting
Save
Give the GL Account No.200160
Company code : BIL
Select with template button
Give the GL Account No.200100 Cash A/c
Company code :BIL
Enter
Select type/Description /tab
Change short text GL account long text to BIRLA STEEL LIMITED
Select create / Bank/Interest tab
Filed status group change to G067
Deselect relevant to cash flow check box
Save
Give the GL account No.400150
Company code :BSL
Select with template button
Give the GL account 400150
Company code :BIL
Enter & Save
Give the GL account 200161
Company code :BSL
Select with template button
Give the GL account 200160
Company BIL
Enter

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Select type / Description tab
Change short text +GL long text to Bila Industries 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 BIL


Company code2 BSL
Enter
Posted in BIL
cleared against BSL
Debit posting key :40
Account debit :200160 ( Birla Steel Limited)
Credit posting key :50
Account credit :200160
Posted in BSL
Cleared against BIL
Debit posting key :40
Account debit :200161 Bilra Industries Limited
Credit posting key :50
Account credit :200161
Save
Press enter to save in your request

CO customization ( tr code is OKKP)

Maintain controlling area


Assign company BSL to controlling area BIL
Select controlling area :BIL
Select details button
Company code to controlling area: Select cross company code cost accounting
Reconciliation ledger document type :SA (GL accounts document)
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 :BIL
Select copy as button
Change the company code to BSL
Enter & save
Ignore the warning message press enter

Activate reconciliation ledger (Tr code KALA)


Note: Follow through path

Path:SPRO –Controlling –Cost element accounting-Reconciliation ledger-Activate deactivate reconciliation ledger

21
Double click on activate reconciliation ledger
Controlling area :BIL
Select Execute button
Ignore the warning message press enter

Define adjustment accounts for reconciliation posting (Tr code is OK17)


Same path
Double click on define accounts for automatic postings
Select change account determination button
Save
Reconciliation account: Give the account no.400150 FI/CO
Save
Press enter to save in your request

FI 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

Select new entries button


Variant for real time integration B1
Select real time integration active check box
Select account determination active check box
Key date active from :01.04.2008
Document type :SA
Ledger group (FI) :0L
Text variant for :BIL
Select cross company code check box
Select cross business area check box
Select cross profit center check box
Save
Press enter to save in your request

Assign variants for real time integration to company code:

Same path.
Select new entries button
Company code :BIL
Variant :B1
Company code :BSL

22
Variant :B1
Save
Press enter to save in your request

Creation of cost center for company code BIL (KS01)

Give the cost center department X


Valid from :01.04.2008
To date :31.12.9999
Reference cost center :Dept A
Controlling area :BIL
Enter
Change the name to :Dept X
Change the description to cost center dept X
Change company code to BSL
Select save button or Ctrl+s
Ignore the warning message press enter

Repost costs (F-02)

Cost center old :Dept A


Cost element :400100 Salaries
Amount :20000
Cost center new Dept X
Save

To make text filed optional for field status group G004 cost accounts(Tr.code is OBC4)
Select field status variant for BIL
Double click on field status groups folder
Double click field status G004
Double click on General data
Text make it optional entry field
Press enter to save in our request

Go and see the FI documents (Tr.code is FB03)

Select document list button


Give the company code :BIL
Enter the date :From date To Date
Execute
Double click on document no.
Select back arrow
Chang the company code to BSL

23
Execute
Double click on document no.

CROSS COMPANY CODE POSTINGS

Company code :BIL BSL

Outstanding expenses of BSL paid by BIL

BSL Dr 25000 Outstanding 25000


To Bank 25000 To BIL 25000

Paying company code : BIL


Credit Bank :BIL 25000
Debit outstanding exp :BSL 25000

Use the Transaction code :F-02

Give the document date :Today’s date


Type :SA
Company code :BIL
Posting key :50
Account no. :200105 SBI CA
Enter
Amount :25000
Business area :BILH
Text :outstanding expense payment on behalf of BSL
Posting key :40
Account no :100500 out standing exp.
New company code :BSL
Enter
Amount :*
Business area :BILH
Text :+
From the menu select document  Simulate
Double click third line item
Business area :BILH
Text :+
Select next item button
Business area :BILH
Text :+

24
Select save button or Ctr+S
Posting by
Company code :BIL
Cross company code no. :15 08

FI posted by
Company code :BSL
Cross company code no. :2 08

By viewing the cross company code document number – We know which company code has initiated the posting.

Select continue button

Accrual orders (Imputed cost calculation)

This is used for month end provision only in CO


This is used for irregular expenses like Bonus
Cost element category should be 3
Accrual/ Deferral per surcharge
Define CO.No.range in interval for business

Transaction :KAZ1 – Actual cost center accrual

FI Month end provision


1. Accrual / Deferral document
A. Bonus provision for Nov
30.11.2008 Bonus A/c Dr.10000
To Out standing exp. 10000 Dept A
B. Reverse next month 1st 01.12.2008
01.12.2008 Outstanding Exp. Dr.10000
To Bonus A/c 10000 Dept A

C. Bonus provision for Dec.


31.12.2008 Bonus A/c Dr 20000
To Out standing exp 20000 Dept A

2. Open item management


A). Bonus provision for Nov.
30.11.2008 Bonus A/c Dr10000
To Outstanding exp. 10000 Dept A
B). Bonus provision for Dec.
31.12.2008 Bonus Dr.10000
To Outstanding exp 10000 Dept A

Month end provision

Number of companies will not prepare profit & loss and Balance sheet every month, the will not make provision
in the books every month in year end, companies follow accrual basis of accounting. They make provisions for
the whole year.

Expenditure for all the months Less (other than March)


Expenditure for March More

In SAP when we take production an accounting entry will be generated automatically – Finished goods valuation
will be based on costs for the month.

25
Stock valuation will be accrual orders Lower in all month other than March

Accrual orders Higher in March

Create overhead structure


Salaries 100000
Bonus -10% on salaries 1000 Debit cost center credit cost center
Dep Dummy (No accounting entry)

In the month end Dept A

Bonus 1000 allocation to Dept A costs will


be allocated to production orders – There by Dept A will be
zero- production valuation will be correct.

Dept Dummy
Bonus 1000

In the year end – in FI when we make bonus provision for the whole year.

31.03.2009 Bonus A/c Dr 1200000


To Outstanding 1200000 Dept Dummy

Dept dummy values in the year end

31.03.2009 Dept dummy 1200000 April to March 10000*12 = 120000


====== =====

In the year end Dept dummy values will be zero.

Creation of GL master bonus account – personnel cost (FS00) group:-

Give the GL Account No. :400105


Company code :BIL
Select with template button
Give the GL account no. :400100 (salaries)
Company code :BIL
Enter
Change short and GL account long text to Bonus account
Save
Select edit cost element button (F8)
Valid from date :01.04.2008 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


Reference cost center : Dept A
Controlling area :BIL
Enter

26
Change name to Dept dummy
Change description to cost center: Department dummy
Select save button
Ignore the warning message press enter

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 :BIL1
Description :BIL overhead structure
Select save button
Row Base
10 B1
Enter
Give the name salaries
Select create button
Row O/H rate (Over head rate) Description FR To CR
20 B2 Bonus 10 10 B3
Enter
Give the name Bonus
Dependency :KRS1(controlling area)
Select create button
Save
Ignore the message press enter
Keep the cursor on overhead structure BIL1
Select assignment button (F5)
Controlling area :BIL
Select actual accrual radio button
Select continue button

Valid from valid to overhead structure


1 2008 12 2008 BIL1

Save
Double click on overhead structure BIL1
Keep the cursor on B1
From the menu select Goto calculation base
From cost element 400100
Save
Kept the cursor on B2
From the menu select Goto overhead rate

Valid from Valid to Actual overhead


1 2008 12 2008 10%
Save
From 10 To 10 Crdit B3

Keep the cursor on B3


27
From the menu select go to credit
Company code :BIL
Business area :BILH
Valid to :12 2008
Cost element :400105
Cost center :Dept Dummy
Save

Define CO.no range interval for the business transaction KAZ1-Actual cost Center accrual:(Transaction Code
KANK)

Give the controlling area :BIL


Select maintain group button
Double click on KAZ1- Actual cost center accrual
Select CO.No range interval for BIL check box
From the menu select Edit-Assigned element group
Save
Ignore the warning message press enter

1. Posting of salaries for the month of August F-02

Give the document date end posting date :03.08.2008


Date :03.08.2008
Type :SA
Company code :BIL
Posting key :40
Account no. :400100 Salaries A/c
Enter
Ignore the warning message press enter
Amount :100000
Cost center Dept A
Text :Salaries posting
Posting key :50
Account no :200105 SBI current Account
Enter
Amount :*
Business area :BILH
Text :+
From the menu select document Simulate and save

28
Accrual calculation (KSA3)

Accounting – Controlling –Cost element accounting-Actual postings –Accrual calculation


select cost center radio button
give the cost center : Dept A
period :5
fiscal year :2008
deselect test run check box
select details list check box
Execute
Select next list level button

Go and see the cost center report KSB1

Give the cost center :Dept A


Posting date :01.08.2008 to 31.08.2008
Execute
Select back arrow
Give the cost center : Dept dummy
Execute

Bonus provision in the year end in FI Transaction F-02

Give the document date & Posting :31.03.2009


Type :SA
Company code :BIL
Posting key :40
Account no. :400105 bonus account
Enter
Ignore the warning message press enter
Amount :10000
Cost center :Dept dummy
Text :Bonus provision for the year 2008-09
Posting key :50
Account :100500 outstanding exp.
Enter
Amount :*
Business area :BILH
Text :+
Document – Simulate and save

Go and see the cost center report KSB1


Give the cost center :Dept dummy
Posting date :01.04.2008 to 31.03.2009
Execute

STATICALLY KEY FIGURES (SKF)

29
This is used as a basis for allocation of costs from one cost center to other cost centers.
Eg. Employee / Area/ Telephone calls
Dept C Dept A Dept B
(service Dept) (Production departments)
Salaries 500000 No.of employee of A and B
Rent 100000 Sq.meter are of A & B
Telephone Exp25000 No.of telephone calls of A & B
Enter CO. No range interval for the business transaction.

RKS (Enter statistical key figures)


SKF category Fixed Total

Fixed Total
If we choose fixed, values If we choose total
To SKF are common for all months in the year, We have to enter values for SKF, for each and
if we don’t make changes in between every month
Eg: Employee / Area Eg: Telephone calls

No.of Employees No.of Telephone calls


April 2008 100 100 Aprl 2008 1000
May 2008 | | May 1500
June | | June 2000
July | | July
Aug | | Aug
Sep | | Sep
Oct | 150 Oct

Dec | | Dec
Jan.’09 | | Jan 2009
Feb || Feb
March | | March

Define co.no range interval for the business transaction RKS-Enter Statistical key figures Transaction Code is
(KANK )

Give the controlling area : BIL


Select maintain groups button
Double click on RKS
Select Co.No.range interval for BIL check box
From the menu select Edit Assignment element group.
Save
Ignore the warning message press enter.

Create Statistical key figures

Path :Accounting – Controlling –cost center accounting  master Data-Statistical key figures – Individual
processing – Create (Tr.Code is KK01)

Give the statistical key figure :EMP


30
Enter
Give the Name :Employee
Statistical key figure unit of measurement : Select EA each
Key figure category :Select fixed values under radio button
Save

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 :500
Received cost center : Dept B
Statistical KF :EMP
Total quantity :250
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 500000 no.of employee of A and B


Wages 300000 No.of employee of A and B
Rent 50000 Percentage basis

Basis of allocation can be percentage method statistical key figures method /activity type (machine hour / labour rate)

Allocation methods:
1. Assessment :
A) Transfer primary cost postings and secondary cost postings.
Dpt X Dept C Dept A Dept B
Wages 100000 Salaries 500000 Salaries 400000 Salaries 300000
Wages 300000
Rent 50000 Add all 85500 Add all from C 95000 10%
All from Dept X 100000
---------- ----------- -----------
Less 950000 1255000 395000
===== ======= =======

Allocation
Primary cost postings
Secondary cost postings

B) Receiving cost centers can’t track original cost element Dept A and B will not show the transfer value –
how much salaries wages and rent.
C) Define Co.No.range interval for business transaction RKIU actual overhead assessment.

31
2. Distribution
A) Transfer only primary cost postings
B) Receiving cost center can track original cost elements.
C) Sender should be only cost center
D) Define Co.No.range interval for the business transaction RKIV actual overhead distribution.

3. Periodic reposting:
A) Transfer only primary cost postings
B) Receiving cost center can track original cost elements.
C) Sender can be a cost center or interval order.
D) Define Co.No.range interval for the business truncation.
RKIB periodic reposting.

4. Indirect activity allocation.


A)Transfer only primary cost postings.
B) Receiving cost center can track original cost elements.
C) Sender should be only cost center.
D) Transfer quantities as well as values.
E) Define Co.No.range interval for the business truncation.
RKIL Indirect activity allocation .

Which over method we follow, we have to create cycles.

When the allocation basic is different for the cost elements in the cost center, we have to create number of cycles for
number of segments for a cycle.

Dept C Dept A Dept B


(Service Department) (Production departments)

Salaries 500000 No.of employees of A and B


Wages 300000 No.of employees of A and B
Rent 50000 Percentage basis

Option 1:

Cycle 1 Cycle 2
(Salaries and wages allocation) (Rent allocations)
| |
Segment 1 Segment 1
Option 2

Cycle 1
|
----------------------------------------------
| |
Segment1 Segment2
(Salaries and wages allocation) (Rent allocation)

32
ASSESSEMENT

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)

Give the controlling area :BIL


Enter
Cost element :1000000
Valid from :01.04.2008 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

Give the controlling area :BIL


Select maintain groups button
Double click on RKIU
Select Co.No.range interval for BIL check box
From the menu select Edit –Assignment element group.
Ignore the message press enter

Creation of assessment cycle:

Accounting –Controlling –Cost center accounting-Period and closing –Current settings–Define assessment (Tr.code
S_ALR_87005742)

Give the cycle :BIL1


Start date :01.04.2008
Enter
Text : Assessment cycle
Select iterative check box.
Select save button or Ctrl+S
Press enter to save in your request
Select iterative check box

33
Dept C Dept A 60% 300000 54000
Salaries 500000 Dept B 30% 150000 27000
Less :Allocation 500000 Dept Z 10% 50000 9000
--------
0
Add: Allocation 90000
Less :Allocation 90000
-------
0
Add: Allocation 1800

Dept Z
Wages 400000 Dept X 50% 225000 4500
Add: Allocation 50000 Dept Y 30% 135000 2700
--------
450000 Dept C 20% 90000 1800
Less : Allocation 450000
-------
0
====

We have to run number of items to make both cost center values zero. If we select interactive check box, system will run
number of items automatically till both cost center values 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
Under Cost element :400100 (Salaries a/c)
Under Receiver cost center group :BILHYDPROD
Select receiver tracing factor tab
Statistical key figure :EMP
Select receiver weight factors tab
Select save button or Crl+S
Press enter to save in your request
Select attaché segment button
Segment name segment2
Description :Rent allocation
Assessment cost element :1000000
34
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 : BILHYDPROD
Select receiver tracing factor tab
Dept A 70
Dept B 30
Save
Press enter to save in your request
Go and see the cost center Report (Tr code is KSB1)

Give the cost center :Dept C


Posting date :01.10.2008 to 31.10.2008
Execute
Select cost element column
Select sub totals button

Dept C A B
Salaries 1500000 No.of employees
500 250
100000 50000
Rent 25000 Percentage basis
70 30
17500 7500

Execution of assessment cycle:

Path :Accounting –Controlling –Cost center accounting –Period end closing-Single functions-Allocations –
Assessment (KSU5)

Give the period :7 (October)


Fiscal year :2008
Deselect text run check box
Select details list check box
Cycle select :BIL1
Execute
Select receiver button

35
INTERNAL ORDERS

This is used to view costs for a specific task.


Eg. A) Vehicle wise running expenses
Management has to task decision whether to sell the (or) keep the vehicle in company

A) petrol expenses for the vehicle B) Repairs to the vehicle

It we take GL accounts in FI –we will not create each vehicle wise petrol expenses and repairs account.

In cost center accounting –vehicles will be under administration cost center and the petrol expenses repairs and
administration expenses will be posted to administration cost center.

By creating vehicle as an internal order we can get the costs.

B) Telephone expenses:
If we want to know telephone wise expenses in FI –we will have one account for all telephones.
If we take cost center –It will be entered in administration cost center - We can not get telephone wise expenses
directly.
By creating telephone as an order we can get telephone wise expenses.

C) Production order costs


In a month no. of production orders will be executed. Some production orders consume more raw material and same
production orders consume less raw material.
If FI we have only GL account raw material consumption – We don’t know order wise consumption.
By crating production order, we can get order wise costs.

D) Exhibition costs
Company is conducting an exhibition

Salesmen salaries One account

36
Conveyance Different account
Advertisement Different account
Discounts Different account

We don't know the exhibition costs by creating an order we can get exhibition costs

Orders will be of 2 types


1)Real orders 2)Statistical orders

Settlement is possible settlement not possible


We can settle order statistical orders are used for decision making

To Cost Center
(Internal settlement)
From Co to Co
GL Accounts
Assets
(External settlement )
(From CO to FI)
When we transfer from cost center –To cost centers allocation by assessment / Distribution periodic reposting / Indirect
activity allocation.

When we transfer from Internal order settlement.


Eg. Telephone expenses Dr 50000 Cost center Dept
Order Tel no.66110883
To Bank 50000
The cost will be allocation to production orders from CO
In the production order valuation we can’t take.(50000+50000)
We have to take only one time 50000

When we are posting to no. of cost objects are will be real and others will be statistical.

At the time of order creation there is a statistical order check box.


A) When we select statistical order is statistical order check box.
Order is statistical (Automatically cost center will be real)
B) If we don’t select statistical order check box
Order is real (Automatically cost center will be statistical )

Statistical order :
Telephonewise expenses order we create as statistical order.

Telephone expense Dr 50000 Cost center Dept A


Order Telephone no.66611983 Statistical
To Bank 50000

Cost Center Dept A


Telephone expenses 50000 Allocation to paid order 50000
Cost center Dept A – Zero
In the month end we allocation costs from Dept A to production orders there by cost center Dept A will be zero.

Order telephone no.66611983


Telephone expenses 50000

Management can see telephone wise expense at any point of time afterwards.

37
Suppose we create order as real order
Telephone expenses Dr 50000 Cost center Dept A
To Bank 50000 order telephone no.66611983 Real

Cost center c data


Telephone Expenses 50000 Order Telephone no.6661987
Telephone expenses 50000 Allocation to production 50000

Order will be zero


In the month end we allocate cost from order telephone no.66611983 to production order there by order will be zero.

Afterwards management can’t see telephone wise expense.

Creation of order types:

Path : SPR O –Controlling –Internal orders – order master data-Define order types (KOT2_OPA)

Select new entries button


Order category :Select 01 Internal order (Controlling)
Enter
Order type :BILT
Description :Telephone orders for BIL
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
Select assign /change interval button beside no.reage interval
Double click order type :BILT
Select motor pool A-ZZZZZZZZZZZZ(External)
From the menu select Edit  Assign element group
Save
Ignore the message press enter

Creation of filed status group by making cost center and internal order required entry fields (OBC4)

Select field status variant :BIL


Double click on field status group folder
Select field status group G004 cost accounts
Select copy as button
Change the filed status group to G002
Change the text to cost accounts (CC & IO required) IO =Internal order
Enter

38
Save CC=Cost Center
Press enter to save in your request
Double click on G002
Double click on additional account assignment
CO /PP order make it required entry field.
Save

Creation of GL master telephone expense (FS00)

Give the GL account no.400305


Company code :BIL
Select with template button
GL account 400300 Rent account
Company code :BIL
Enter
Change short text and GL a/c long text to Telephone expenses
Select crate / Bank/Interest tab
Change the filed status group to G002
Save
Select edit cost element button
Valid from date :01.04.2008
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 :Select BILT


Enter
Order no. :BIL 66611983 (Telephone no.)
Description :Telephone order no.66611983
Company code :BIL
Business area :BILH
Select control data tab
Select statistical order check box
Save
One more order
Order type :BILT

39
Enter
Order :BIL66611984
Description :Telephone order no.66611984
Company code :BIL
Business area :BILH
Select control data tab
Select statistical order check box
Save

Creation order group

Up to master data the path is same  Order group Create (Tr code is KOH1)
Give the order group name :BILHYDTEL
Enter
Description :Hyderabad order group (GRP)for BIL
Select insert order button(Select menu bar Edit  Order Insert Order)
Select to orders :BIL66611983
:66611984
Save

Posting of transaction in FI (F-02)

Document date :Today’s date


Type :SA
Company code :BIL
Posting key :40
Account no. :400305 Telephone exp
Enter
Give the amount :100000
Cost center :Dept A
Order :BIL66611983
Text :Telephone expenses
Posting key :50
Account no. :200105 (SBI current account )
Enter
Amount :*
Business area :BILH
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 KOBI
40
Give the order no.BIL66611983
Remove the order group
Execute
Keep the cursor and telephone expense line item select document button

Planning order wise

Path :Accounting –Controlling –Internal orders –Planning –Cost and activity inputs –Change (KPF6)
Version :0
From period :8 (November)
To period :8
Fiscal year :2008
Select next page or page down button
Give the order no. :BIL66611983
Cost element :400305 Telephone expense
Select from based radio button
Select view screen button
Cost element :400305
Total plan cost :75000
Select save button or Ctrl+S

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)

Controlling area :BIL


Fiscal year :2008
From period :8 (Current month)
To period :8
Pant version :0
Order values :BIL66611983
Execute

Real orders:
They are used for vehiclewise expenses

Petrol expenses Dr 50000 Order no.AP9Z1234


To Bank 50000

In the month end:


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

41
Order No AP9A1234
Petrol expenses 50000 Allocation Dept A 25000
Dept B 15000
Dept C 10000
------- ------
50000 50000
==== ====

Order will be zero

Petrol expense Dr 50000 Cost center:Common


Order No.AP9Z1234 Statistical
To Bank 50000

In the month end from cost center common allocate to Dept A, Dept B and Dept C by assessment / Distribution /
Periodic posting /Direct activity allocation.

Cost center common


Petrol Expenses 50000 Allocation to Dept A 25000
Dept B 15000
Dept C 10000
--------- -------
50000 50000
==== =====
Cost center will be zero

Order no.AP9Z1234
Petrol expense 50000
=====

Management can see vehicle wise expenses at any point of item afterwards.

Creation of filed status group by making only internal order required entry filed (OBC4)

Select filed status variant :BIL


Double click on filed status group folder
Select field status group G002
Select copy as button
Change field status group to G010
Change the text to cost accounts (IO required )
Enter and save
Press enter to save in your request
Double click on G010
Double cock additional account assignments
Cost center make it optional entry field
Save

42
Creation of GL master petrol expense under administration group (FS00)

Give the GL Account no. :400310


Company code :BIL
Select with template button
Give the GL account no.400300 Rent account
Company code :BIL
Enter
Change short text and long text to petrol expenses
Select create/bank /interest tab
Field status group :G010
Save
Select edit cost element button
Valid from date :01.04.2008
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

Maintain allocation structure:

Path :SPRO-Controlling –Internal orders-Actual posting- Settlement-Maintain allocation structures

Select new entries button


Allocation structure :B1
Text :BIL allocation structure
Save
Press enter to save in your request
Select :B1
Double click assignments folders
Select new entries button
Assignment :01
Text :Vehicle expenses settlement

43
Save
Select :01
Double click on source folder
From cost element :400310 Petrol expenses
Save
Press enter to save in your request
Double click on settlement cost elements folder
Select new entries button
Receiver category :Select CTR cost center
Settlement cost element :1000001
Save
Petrol expenses will be settled to cost center by using secondary cost element settlement cost element.
Through orders.

Maintain settlement profiles:

Same path

Double click on maintain settlement profiles


Select new entries button
Settlement profiles :BIL1
Description :BIL settlement profile
Allocation structure :B1
Select to be settled in full radio button
Double click on 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
Press enter to save in your request

Rule 1:
Order no.AP9Z1234 settle cost center Dept A 30000
Petrol expenses 50000 settle cost center Dept B 15000
Dept C 5000

Rule 2
Order No.AP9Z1234 Settle to cost center Dept A 85%
Petrol expenses 50000 Settle to cost center Dept B 10%
44
5%
Order no.AP9Z1234 settle to cost center Dept 4:
Petrol exp 50000 Dept 3:
Dept 1:

Maintain number range for settlement documents:


Go through Same path (Tr.code is SNUM)

Select maintain groups button


Double click on controlling area BIL
Select Standard accounting document check box
From the menu select EditAssign element group
Save
Ignore the message press enter

Creation of order type (KOT2_OPA)

Select new entries button


Order category :Select 01 Internal order (controlling)
Enter
Give the order type :BILV Vehicle order type BIL
Settlement profile :BIL1
Budget profile :0000001 (General budget profile)
Object class select :Overhead costs
Select release immediately check box
Save
Ignore the message press enter save in your request
Select assign /Change intervals button beside no.range interval
Double click on BILV
Select motor pool A-ZZZZZZZZZZZZZZ external check box
From the menu select Edit –Assign element group.
Save
Ignore the message press enter

Define co.no.range interval for the business truncation K0A0-Actual settlement. Use the transactions code
(KANK)

Give the controlling area :BIL


Select maintain groups button
Double click on KOAO actual settlement
Select co.no.range interval for BIL check box
Form the menu select Edit –Assign element group.

45
Save
Ignore the warning message press enter

END USER AREA:

Creation of internal order (KO01)


Give the order type :BILV
Enter
Give the order :AP9Z1234
Description :Vehicle no.AP9Z1234
Company code :BIL
Business area :BILH
Select control data tab
Deselect statistical order check box
Select settlement rule button
Category :CTR cost center
Settlement receiver :Dept A
Give the percentage :70
One more
Category :CTR
Settlement receiver :Dept B
Percentage :30
Save
Ignore the warning message press enter

Posting of petrol exp F-02

Give the document date :Today’s date


Type :SA
Company cod :BIL
Posting key :40
Account no. :400310 petrol exp.
Enter
Give the amount :100000
Give the order no. :AP9Z1234
Text :Petrol exp.
Posting key :50
Account no. :200105 SBI current account
Enter
Amount :*

46
Business area :BILH
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 :8 (current month)
Fiscal year :2008
Deselect test run check box
Select check transaction date check box
Select execute button
Select details list button

Note : Order means overall expenses Eg: Vehicle Expenses

Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs, Driver salary etc

BUDGETING AND AVAILABILITY CONTROL

Planning Budgeting
1. We can plant cost element wise in the order 1.Budgeting will be done order wise
2. We can do planning period wise in a year 2. Budgeting should be done year wise
(Month wise)
3.Micro level (Lower level) 3. Marco level (High level)
For budgeting SAP has given availability control
Order no.AP9Z1234
Budget amount 500000

Option 1 Option2 Option 3


Give Give warning Give
Warning To the user Error1
To the user And inform to
Budget manager
If actual amount exceeds 85% of budget 425000

47
Or
If the variance is above 20000 i.e actual 5200000
Or
Both Whichever activity comes first
Or
If a actual amount exceeds 70% of budget go for option1
If actual amount exceeds 85% of budget go for option 2
If actual amount exceed 100% of budget go for option 3

When we do budgeting it generate a document –We have to give budgeting –No. range interval only for 04 (Hard coded
by SAP)

This is given at client level and not at controlling area level –it is not year specify.

Note : Order Eg.Vehicle Expenses

Cost element :Eg.Vehicle for petrol, repairs,Driver salary etc.,

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


Same path
Select new entries button
Controlling area :BIL
Profile :select 000001 General budget profile
Tr.group :++ all activity groups
Action :select 2 waring with mail to person response
Usage :85
Save
Press enter to save in your request

Specify exempt cost elements from availability control

Same path

Petrol expenses
Repairs
Drivers salary is Fixed cost

We can specify when we post to driver’s salary all with order AP9Z1234 –Even if, it exceeds 85% of budget no. message
need to be given.

It is known expenditure

Select new entries button


Controlling area :BIL
Cost element :400100 Salaries account

48
Save
Press enter to save in your request

Maintain budget manager


Same path

Select new entries button


Controlling area :BIL
Order :BILV
Object class :OCost (Overhead cost)
User name :SAP user (budget manager)
Save
Press enter to save in your request

Budgeting order wise (END USER AREA)

Path :Accounting-Controlling –Internal order-Budgeting-Original budget –Change (Tr code is K022)

Order :AP9Z1234
Enter
For the period :500000 (Budget amount)
Over / budget also 500000
From the menu select Extras –Availability: Control –Activate
Save

Posting of petrol expenses (F-02)

Give the document date :Today’s date


Type :SA
Company code :BIL
Posting key :40
Account no. :400310 Petrol expenses
Enter
Give the amount :350000
Order :AP9Z1234
Text :Petrol expense
Posting key :50
Account no. :200105 SBI current account
Enter
Give the amount :*
Business area :BILH
Text :+
49
From the menu select –Document –Simulate and save
Ignore the message press enter

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

50
Idea scenario

Company FI
|
Company code FI
|
Business area FI
(Location)
|
----------------------------------------------------------------------------------------
| | | |
Steel Cement Pharma Co-profit center
Division Division Division Accounting
| |
Product wise Co profitability
Analysis

Option 1 Option 2
Hyderabad location HYD BGL MOM
| | | |
Steel Cement Pharma Steel cement Pharma

Profitability Profitability Balance sheet

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 Though business area

Sheet it items (Applicable for option 2)


Eg:a) At the time of creation of cost center assign profit center

Dept A-Assign profit center steel


b) At the time of posting

wages a/c Dr 500000 Dept A


To Bank 500000
It updates cost center Dept A as well as profit center steel.

We have to create dunning profit center. At the time of posting, when there is no derivation rules, system updates dummy
profit center. Transfer form dummy profit center to respective center. Create derivation rule so that future transactions
will not go to dummy profit center. They will go to respective profit centers.

Set controlling area (OKKS)

Path :SPRO-Controlling –Profit center accounting-Basic settings-Set controlling area


Give the controlling area :BIL
Enter

Maintain controlling area settings: (OKE5)


(Follow through path )

Path :Up to base settings the path is same- Controlling area settings-Maintain controlling area settings

Standard hierarchy :BIL


Select elimination of business volume check box
51
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 100
Goods
Receipt

It should no take in steel profit center 100+100


It should take only one time

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 :BIL dummy
Select basic data button
Name :BIL dummy
Description :Dummy profit center for BIL
Profit center group :BIL
Save

Set control parameters for actual date

Path : Up to basis settings the path is same Controlling area settings -Activate direct postings-Set control
parameters for actual data (Tr code is 1KEF)

Select new entries button


From year :2008
Select Line items check box
Select online transfer check box
Save

Maintain plan versions

Up to activate the path is same

Plan version Maintain plan version


Select version :0 Plan /Actual Version
Double click on settings for profit center accounting folder
52
Select new entries button
Year :2008
Select online transfer check box
Select line items check box
Exchange rate type :B (bank selling rate)
Save
Press enter to save in your request

Define no. ranges for local documents

A) At the time of creation of cost center –Assign profit center


Dept A-Assign profit center
B) At the time of posting
Wages A/c 500000 Dept A
To Bank 500000
When there is no derivation rule –It updates dummy profit center
Transfer from dummy profit center
To Profit center steel

No FI document will be generated


No co document will be generated once profit center document will be generated (local)

Path :SPRO-Controlling-Profit center Accounting-Actual postings-Basic settings: Actual –Define number


ranges for local documents (Tr code is GB02)

Select maintain groups button


Select actual document from direct posting with GB01 check box
From the menu select interval Maintain
Give the company code :BIL
Enter
Select interval button
Year :2008
From no :1
To :100000
Enter and save
Press enter to save in your request
Select back arrow
Select planned doc.with direct posting with GB01 check box
Form the menu select interval maintain
Give the company code :BIL
Enter
Select interval button
Year :2008
From no. :100001
53
To no. :200000
Enter and save

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


Select master data button
Analysis period to :01.04.2008 to 31.12.9999
Name :Steel
Long text :Profit center steel
Person responsible :Mr A
Profit center group :BIL
select activate button (Shift+F1)

One more profit center

profit center cement


select master data button
name :Cement
long text :Profit center cement
person responsible :Mr B
profit center group :BIL
select activate button

Create account groups

up to master data the path is same Account group create (Tr code is KDH1)

Give the account group name :PLITEMS ( Profit & Loss)


Enter
Description :P & L accounts for BIL
Select insert account button
From :300000
To :499999
Save
Select Back Arrow
Account groups :BSITEMS
Enter
Description :Balance sheet accounts for BIL
Select insert account button
Form A/c :100000

54
To A/c :299999
Save

Assign profit center in cost center

Path :Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-Change (KS02)

Give the cost center :Dept A


Select master data button
Give the profit center :Steel
Select save button or Ctrl+S
Ignore the warning message press enter
Cost center :Dept B
Enter
Profit center :Cement
Save
Ignore the warning message press enter

Creation of sales account as revenue element (FS00)

Give the GL account no. :300000 Sales A/c


Company code :BIL
Select edit cost element button
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)

Select new entries button


Company code :BIL
Cost element :300000 Sales A/c
Account assignment details :Select 2 Business area is mandatory
Save
Press enter to save in your request
Select :BIL with cost element 300000
Double click on detail per business area /valuation area folder

55
Select new entries button

Option 1 Option 2
HYD location
|
Steel cement Pharma HYD BGL MUM
300000 | | |
HYD Steel Steel Cement Pharma
300001 Sales cement 300000 Sales account
HYD Cement
300002 Sales pharma HYD  Steel
HYD  Pharma BGL  Cement
Mum  Pharma

Business area : BILH


Profit center : Steel
Business area : BILB
Profit center : Cement
Save

Choose addition balance sheet and p & L accounts

Applicable for second scenario: Application for second option

Same path  Select choose accounts (Tr code is 3KEH)

select new entries button


Account from :100000
Account to :299999
Default profit center :Steel
Save
Press enter to save in your request
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
Business area :BILH
Profit center :Steel

56
Account no :100000
To account no. :299999
Business area :BILB
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 :8
To period :8
Fiscal year :2008
Company code :BIL
Select next page or page down button
Profit center :Steel
Account group :PLITES
Select from based radio button
Select overview screen button
Per account no.300000 Sales account
Profit center reporting currency :600000 (Minus report currency)
For account no.400100 salaries A/c without any sign
Save

Planning profit center wise for balance sheet items (Only for second scenario)

Up to planning the path is same  Balance sheet accounts change (Tr code is 7KE3)

Version :0
From period :8
To period :8
Fiscal year :2008
Company code :BIL
select next page or page down button
Profit center steel
Account group :BSITEMS
Select form based radio button
Select overview screen button
For account :100300 SBI rupee term loan

57
Profit center reposting currency 20000- with minus sign
For 200105 SBI current account profit centers reporting currency 200000 without any sign
Save

Posting of cash sales (F-02)

Give the document date :Today’s date


Type :SA
Company code :BIL
Posting key :40
Account no. :200105 (SBI current account)
Enter
Amount :550000
Business area :BILH
Text :sales posting
Posting key :50
Account no. :300000 (Sales a/c)
Enter
Amount :*
Business area :BILH
Text :+
Form the menu select Document –Simulate and save

Posting of salaries (F-02)

Document date :Today’s date


Type :SA
Company code :BIL
Posting key :40
Account no. :400100 Salaries a/c
Enter
Give the amount :475000
Cost center :Dept A
Text :Salaries posting
Posting key :50
Account no. :200105 SBI current account
Enter
Amount :*

58
Business area :BILH
Text :+
Document –simulate and save

To View variance report profit center wise for P & L items

Path :Accounting –Controlling –Profit center accounting-Information system-Repost for profit center
accounting-Interactive reporting –Profit center group:Plan /actual /variance (Tr code is S_ALR_87013326)

From period :8 (Current /Running month)


To period :8
Fiscal year :2008
Plan version :0
Profit center values :steel
Profit center accounts groups :PLITEMS
Select execute button

To view variance report profit center wise for balance sheet items:

Up to interactive reporting the path is same  Profit center group: Balance sheet accounts plant / Actual
/Variance (Tr code S_ALR_87013336)

From period :8 (Running month)


To period :8
Fiscal year :2008
Plan version :0
Profit center values :Steel
Balance sheet account group :BSITEMS
Execute

Transfer of values from one profit center to another profit center


One cost center works for no.of profit centers we an assign only one profit center is cost center.
In dept A Profit center steel
From profit center steel transfer to cement
Manual transfer through cycles

No.FI document will be generated


No.CO document will be generated
Only profit center document will be generated.

Path :Accounting –Controlling-Profit center accounting-Actual postings-Profit center document –Enter (Tr code
is 9KE0)

Layout select 8A-001 document :Profit center /account


Select execute button
Company code :BIL

59
Select Enter screen button
Profit center :Steel
Account no. :400100 Salaries
In profit center local currency 500000 –(with minus sign)
Profit center :Cement
Account no. :400100 Salaries
Amount :500000 (without minus sign)
Save

INTEGRATION

Organization structure :

FI: Business area

Company
|
Company code
MM:-  Structure SD: Structure
Business area  | Factory / Sales organization Company code level /
| Plants Branch/Port | Regional location
| | |
Storage locations Raw material / Finished goods Distribution-> Direct sales through
/Packing material Channel Agents
| |
Division Product groups/ products

Why we create port as a plant:

Keep the material on ship


HYD Chennai Customer
Factory Port
60
Export sale – Terms of delivery-FOB (Free on Board) ownership will be transferred once we kept the martial on ship.

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 –One sales area.

Sales Area 1 Sales Area 2


Hyd sales Org. Hyd Sales org
| |
Direct sales Through agents
| |
Steel Steel

Movement types: Similar to posting keys in FI


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)

Stores items to issue Production order 2


(Mov.type 201)
(cost center 201) Production order 3

Material issue is identifiable to production orders use movement type 261


Material issue is not identifiable to production orders use movement type 201

Transaction key /process key

a) BSX Inventory postings


b) WRX Goods receipt /Invoice receipt (GR/IR)
c) PRD Price difference /Production order differences
d) GBB Offsetting entry for inventory postings
(i) VBR consumption
(ii) VNG Scrapping
(iii) BSA Opening stocks
(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
61
Eg: 400000 Raw material consumption
200121 Inventory raw material

For consumption
Raw material consumption Dr
To Inventory raw material

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 Local
Imported
Inter unit purchases
Inter company purchases 4
Valuation class
B) Stores :Local 2 valuation class
C) Finished goods own manufacturing 1 valuation class

Valuation grouping code / valuation modifier /Valuation modification key:

Company codes BIL BCL BSL


Chart of accounts BIL
Plants HYD-BGL BGL-MUM HYD-MUM
Local raw materials RM1 RM2 RM3-RM1 RM2-RM3

Incase of purchases, 200121 –Inventory raw material local

When we follow 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 BIL BIL X


BGL BIL BIL X
BGL BIL BCL X
MUM BIL BCL X
HYD BIL BSL X
MUM BIL BSL X

For X in case of RM local purchases assign account number 200121, inventory Raw material local.

This is similar to posting periods in FI

A) Define posting period variant X


B) Assign posting period variant to company codes X to BIL
X to BCL
X to BSL
c) Define posting periods for variant X
for X—1, 2008 –12,2008

62
Material types Price controls

Raw materials ROH V-Moving average price purchase price


Stores & spares ERSA V-Moving average price purchase price
Packing & material VERP V-Moving average price purchase price
Finishing goods FERT S-Standard price Raw materials +
Semi finished goods HALB Overheads
Purchased V-Moving average price Purchase price
Produced S-Standard price Raw material+Overheads
Trading goods HAWA V-Moving average price Purchase price
Services DIEN

Semi finished goods purchased


Dept A Dept B Dept C Dept D
15 days FG
Sales order –To be delivered with in 2 days
Purchase an item where with
In 2 days purchase an item
Where processing of A,B and C is completed
D processing of D
Semi finished goods produced
Dept A Dept B Dept C Dept D
Issue RM 15 days time
Sales Dept –got an order for sale where the processing of A and B is completed
Take production
After completion
Of B and sell
Trading goods: Purchase FG and sell FG without doing any processing.
Services: Plant is having operating capacity
No sales orders
Job work for others
We get job work changes –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 group 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.
- For materials we can open 2 periods at a time.
Oct Nov.
When we open Dec.-Automatically Oct will be closed.
Where we crate material master –We will have number of tabs (Views)
Basic data
Purchase view
Sales view
MRP view
Quality
Ware house management
Accounting
Costing

MM Flow
A) Material requisition By production Dept to Stores
B) Purchases requisition By stores to purchases
C) Call for enquiries, Get quotations and do price comparisons By purchase Dept.
D) Create purchase order Vendor number, Material

63
Quality, Rate, Plant, Company code
Delivery terms, payment terms,
Purchase organization
E) Release It is optional
It will work through work flow

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
10000 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.

Goods receipt –With reference to P.O


Inventory RM local DR 100
To GR/IR clearing RM local 100
Balance sheet current asset BSX
Balance sheet current liability WRX
(Qty in GR*Rate as per P.O)

Invoice verification-Against PO/GR


GR/IR clearing RM local DR 100 Balance sheet CL WRX
To party 100 Balance sheet CL From PO,
Party no. will be taken
i) Raw material consumption
RM Consumption Local DR 100 P & L Debit GBB VBR
To inventory RM local 100 BS C/A(Current Asset) BSX
J) 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


(FG =Finished goods)
To INC/DEC in stocks FG 120 P & L Credit GBB

ZOF – In case of on production order /CPP module not implement GBB AUF –in case of production
order (PP module implemented)
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

M) Sales billing

Customer A/c DR 150 BS C/A From sales order, customer number will be taken
To Sales 150 P & L credit ERL
LCL=Local
Inventory FG=Raw material consumption local +wages
GR=Goods receipt
INC/DEC STK FG=Increase /Decrease stock finished goods

64
P & L account

H) RM can local 100 L)Sales 150


Wages 20 J)INC/DEC STKFG 120
Net profit 30 K)INC DEC STK FG -120 0
------- -----
150 150
=== ===

Balance Sheet

Surplus in P & L Account 30 F) INV RM LCL 100


F) GR/IR CLG RM LCL 100 H) INV RM LCL -100
E) GR/IR CLRG RM LCL -100 0 ---------
0
a) Sundry creditors RM 100 I) Bank -20
j) INV FG 120
K)INV FG -120 0
L)Sundry debtors 150
---- --------
130 130
=== ===
Integration rules

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 type, material number and 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


BSX Clearing (GBB VBR)
(WRX)
RM1 (local) 3000 RM local 200121-INV-RM 100520-GR/IR 40000-RM
Local CLRG RM LOCAL Consumption-IMP
Local Raw Material
1. Purchase order Material –RM1
Vendor -1234
Qty-100 Kgs
Rate 5 Rs Save P.O.No.1
2. Goods receipt with reference to P.O-P.O No.1
Movement Type:101 Debit BSX 200121
Credit WRX
Material RM1
Qty 60 kgs
Save

Material Doc no.200001


200121 –Inventory RM local DR 300
100520 GR/IR CLR RM Local 300
(Qty IN GR *Rate as per P.O)
60*5

Raw material consumption

65
Movement type 201 Debit GBB VBR Debit A/c No. 400000
Credit BSX 200121
Material RM1 3000
Qty 10 Kgs
400000 RM Consumption LCL DR 50
200121 Inventory RM Local 50
(Qty issued * Moving average rate)

Imported raw material

1. Purchase order Material -RM2


Vendor -4567
Qty-1Kg
Rate -100 PO No.2
2. Goods receipt- with reference to PO-PO No.2
Movement type:101 Debit BSX 200122
Credit WRX 100521
Martial RM2 3001
Qty 1 Kg
Save Material Doc No.200003
200122- Inventory RM IMP DR 100
100521 GR/IR CLRG RM IMP 100
(Qty IN GR* Bate as per P.O)
1*100

Raw material returns


Material doc no.200003

Movement Type 102 Debit WRX 100521


Credit BSX 100122
Material RM2 3001
Qty 1 Kg
Save Material doc no.200004
100521 GR/IR CLR RM IMP DR 100
200122 Inventory RM IMP 100

Why SAP does not support purchase accounting why it supports inventory accounting:

RM –Local raw material 1 2 3


Not included in purchase Bill received Less stock reported
Provision statement by stores
RM consumption=Qty Value
Opening stock 0 0 0 0
Add purchase 0 516.50 516.50
_____________________________
516.50 516.50
Less :Closing stock 300 300 200
------------------------------------------
Raw material consumption X X X
========================
Wrong wrong wrong
1. Purchase order material no. RM1
Vendor 1234
Qty 100 Kgs
Rate 5 Rs
Excise 10%

66
CST 2%
Other change 1%
Material receipt:

We get excise invoice to claim cenvat –Final invoice many come or may not come.
Only excise invoice received
Basic price 500
Excise 50
Stores person updates his records with the above data.

Issue: Not included in purchase provision statement:


Account Dep gets a statement from stores in the month end material received bills not received to make purchase
provision.
Stores person –By mistake he has not included the above item in the purchase provision statement.
Account Dept.gets closing stock statement from stores-in the statement he is showing 60 kgs stock at 5Rs.300

Issue2 –Closing stock valuation wrong


We have received invoice after words in invoice

wrong
Basic 500 500
Excise 50 50
CST2% 11 11
Other 1% 5.5 5.5
------- -------- ---
Bill amount 566.50 516.50 50

Purchase a/c cenvat receivable


In the month end stores person sends closing stock statement
60 kgs at Rs.5
Should be value 516.5/100*60=309

*Issue less stock reported by stores


If this month production is more, profitability will be more.
If this month production is less, profitability will be less.
Physical stock available -60 Kgs
Reporting to accounts only 40 kgs
40*5=200
Inventory accounting

1. Purchase order Material no.RM1


Vendor 1234
Qty 100
Rate 5
Tax code A1 (10% Excise +2% CST) other charges 1%
PO no.1
2. Goods receipt with reference to PO no.1
Movement type 101
Material RM1
Qty 100
Save

Entry will be passed automatically


Inventory RM local DR 516.50
To GR/IR CLR RM Local 516.50 Qty in
GR*Rate as per PO

67
Store records : Material RM1
Qty :Value
Receipt :100 Kgs 516.50
Account records 200121 Inventory RM local
516.50 DR
3. Raw material consumption
Movement type 201
Material RM1
Qty 40 Kgs
Save

Accounting entry will be generated automatically RM consumption local DR


206.5 (516.5) 100*40
To Inventory RM local 206.6
Qty issued moving .AVG price

Stores records: Material RM1


Qty Value
Receipt 100 Kgs 516.50
Issue 40 Kgs 206.6
------ ------
60 Kgs 309.9

Accounts records 200121 Inventory RM local


516.50 DR 206.60 DR
CL stock value 309.9

Price differences are two types


1)Batch method 2)Moving average method
|
-------------------------------------------------------
| | |
Stock fully available Stock partly available Stock no available

1st method –Batch method:


RM1 PO PR 10 RS BILL for 12Rs

1.Material Receipt
Batch Qty Rate Amount Inv RM local DR 1000 BSX
1 100 10 1000 To GR/IR CLR RM LCL/100 WRX
2 50 40 2000 2. Raw Material consumption
----- ----- RM consumption local DR 100 GBB VBR
150 3000 To INV RM local 100 BSX
10 10 100
--- ----
140 2900 3. Invoice verification
180 GR/IR CLRG RM LCR DR 100 WRX
----- ----- INV RM LOCAL DR 180 BSX 90*2
140 3080 Price diff RM LCL 20 PRD 100*2
To Vendor 1200 form PO vendor no. is taken
Break up
1 90 12 1080
2 50 40 2000

68
Preparation in P & L account :
Raw material consumption :
Raw material consumption +/ price difference RM
Eg: RMC 100
PD RM 20
----
120
===
For the truncation key PRD –We can assign raw material consumption account or price difference RM A/c

Moving average method: stock fully available

RM1 PO Price :10 Final Bill for Rs.12

Qty rate amount1. Goods receipt

Bill qty 100 10 1000 Inv.RM local DR 1000 BSX


50 40 2000 To GR/IR CLRG RM LCL 1000
---- ------ 2. Raw material consumption
150 3000 RM consumption local DR 400 GBB VBR
20 20 400 To INV RM local 400 BSX
---- -----
Average bill 130 2600 3.Invoice verification
GR/IR CLRG RM LCL DR 1000 WRX
200 GR/IR CLRG RM LCL DR 1000 WRX
---- -----
130 2800 INV RM Local DR 200 BSX 100*2
To Vendor 1200 form PO Vendor no.is
taken

Consumption rate:
Value / Qty 3000/150=20
Next consumption rate
Value / Qty 2800/130=21.54

3rd method moving average method: Stocks partly available

RM1 PO Price 10Rs Bill for 12Rs


1.Material receipt

Qty Rate Amount 1. Goods receipt


Bill qty 100 10 1000 INV RM local DR 1000 BSX
50 40 2000 To GR/IR CLRG RM 1000 WRX
--- -----
150 3000
130 20 2600 2. Raw material consumption
----- ------ RM comp local DR 2600 GBB VBR
AVBL QTY 20 400

69
40 TO inv RM local 2600 BSX
---- ----
20 440
3.Invoice verification
GR/IR CLR RM LCL DR 1000 WRX
INV RM Local Dr 40 BSX 20 *2
Price diff RM DR 160 PDR
To Vendor 1200 from PO
vendor no.is taken
Consumption rate
Value / Qty 30000/150=20

Next consumption rate:


Value qty 440/20=22.00
Incase of batch method –It has checked batch wise for the material.
In case of moving average method –if has checked material wise.
4th Method-moving average method: Stocks not available safety socks

RM1 PO Price 10 Rs Bill for Rs12


1. Material receipt
Qty Rate Amount Inv RM local DR 1000 BSX
Bill Qty100 10 1000 To GR/IR CLRG RM LCL 1000WRX
50 40 2000 2. Raw material consumption
---- ---- ------ RM Consume local DR 3000 GBB VBR
150 3000
150 20 3000 To INV RM Local
---- ----- 3. Invoice verification
AVBL Qty 0 0 GR/IR CLRG RM LCL DR 1000 WRX
Price Diff RM DR 200
To Vendor 1200 form PO vendor no.is taken

Sales and Distribution Flow:

1. Inquiry and quotation:


2. Sales order : Product, Plant, Sales organization, customer no., quantity, rate delivery
terms, payment terms.
3. Delivery :With reference to 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 only FI document material


material document 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

70
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: With reference to delivery

Customer account DR From sales order


To Sales :ERL
SD-Pricing procedure

Eg: 1 2 3 4
From R egion Andhra Andhra Andhra Andhra
To Region Andhra Tamilnadu Andhra Tamilnadu
Customer Taxable TaxableNon-taxable Non-taxable
Material Taxable TaxableNon-taxable Non-taxable

Basic price
Excise % on basic
VAT % on Basic+Excise CST % on basic+ Excise

From H sales

Condition type: KOFI (Account assignment-FI)


KOFK (Account Assignment –CO)

Assignment of accounts

1 2 3 4 5 6 7 8
Application Conditio Chat of Sales Account Account Accoun
area n type accoun origination assignment assignment t keys
ts group for group for
customers materials
V-Sales & KOFI BIL HYD 01 03 ERL 300001 –
Distribution Sales Local
own goods
V-Sales & KOFI BIL HYD 02 03 ERL 300002-Sales
Distribution exports own
goods
V-Sales & KOFI BIL HYD 01 01 ERF 300003 Sales
Distribution local trading
goods
V-Sales & KOFI BIL HYD 01 03 ERL 400350 –
Distribution Sales Freight Local
revenue own goods
01- 01 Traded ERF
Domestic goods Freight
revenues Revenu
es
02-Foreign 02 Services ERB-
revenues Rebates
/Tradin
g
Discou
nts
71
03- 03 Finished ERS
Afflicated goods Sales
company Deducti
revenues ons

Note :ERS :Sales commission

Bank 5000 From customer 5000


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


Select new entries button
Plant :BILP
Name :BIL HYD Factory plant
Factory calendar :Select B2 or 01 (B2=BIL HYD Factory Calendar)
Save (01=Standard calendar)
Give the name :BIL Hyderabad factory plant
Country :IN
Enter
Select create request button
Short description :MM customization for BIL
Press enter
Enter once again to save in the request

Define division:

Path :Up to logistic –General the path is same-Define copy, Delete, check division.

Double click on define division


Select new entries button
Division :BS (It is a text filed)
Name :Steel Division
Save
Press enter to save in your request

Maintain storage location

72
Path :SPRO-Enterprise structure –Definition- materials management –Maintain storage location (OX09)

Give the plant :BILP


Enter
Select new entries button
Give the storage location :HYD
Description :Hyderabad storage location
Save
Press enter to save in your request

Maintain purchasing organization


Same path

Select new entries button


Purchase organization :BIR
Description :BIL Purchase organization
Save
Press enter to save in your request

Assign plant to company code:

Path : SPRO-Enterprise structure –Assignment- logistics General –Assign plant to company code ( Tr code
is OX18)

Select new entries button


Company code :BIL
Plant :BILP
Save
Press enter to save in your request

Assign business area to plant/valuation area and division

Path :Same path -Select plant /valuation area –Division button

Select new entries button


Plant :BILP
Division :BS
Business area :BILH
Save
Press enter to save in your request

Assign purchasing organization to company code

73
Path :Up to assignment the path is same –Materials management –Assign purchasing organization to
company code

Select position button :Give the purchase org:BILR


Enter
For BILR for assign company code BIL
Save
Press enter to save in your request

Assign purchasing organization to plant:

Same path
Select new entries button
Purchasing org :BILR
Plant :BILP
Save
Press enter to save in your request

Create purchasing groups

Path :SPRO-Materials management –Purchasing –Create purchasing groups.

Select new entries button


Purchasing group :BIL
Description :BIL RM purchasing group
Save
Press entr to save in your request

Define material groups:( OMSF)

Path :SPRO-Logistic general –Material master-Settings for key fields –Define Material groups.
Select new entries button
Material group :BILC
Material groups description :Chemicals
Press enter to save in your request

Maintain company code for material management:

Path :SPRO-Logistic General –Material master-Basic settings-Maintain company code for materials
management

Select position button


Give the comp code :BIL
Enter
Year :2008
Period :7 (October)

74
Note : This period enter carefully, if you once enter not modified

Select ABP check box (ABP stands for Allow Back Period Posting)
Note: September entries allowed
Save
Ignore the warning message press enter
Press enter to save in your request

Define attributes of material types:

Path:up to the material master the path is same – Basic settings –Material type-Define attributes of material
types.
Select position button
Select material type :ROH (Raw materials)
Enter
Select ROH
Double click on quantity / Value updating folder
Select position button
Valuation area :BILP ( Nothing but plant)
Enter
For BILP select quantity updating, value update check box
Save
Press enter to save in your request
Select back arrow
Select material FERT for finished product
Double click quantity / value updating folder
Select position button
Valuation area :BILP
Enter
For BILP select quantity updating check box value updating check box
Save

Set tolerance limits for price variance for purchase order

Path: SPRO-Material management –Purchasing –Purchase order –set tolerance limits for price variance

Select TIKY :PE & SE for company code 1000


Select copy as button
Enter the company code to BIL
For tolerance key :PE
Enter

75
Change the company code to :BIL
For tolerance key :SE
Enter and save
Press enter to save in your request

Plant parameters:

Path :SPRO-Materials management –Inventories management –Physical inventory –Plant parameters

Select plant :1000


Select copy as button
Change the plant to BILP
Enter and save
Press enter to save in your request

Set tolerance limits for goods receipt

Path :Up to inventory management and physical inventory the path is same -Goods receipt-Set tolerance
limits

Select tolerance key B1,B2,VP for company code 1000


Select copy as button
Change the company code to BIL for B1
Enter
Change the company code BIL for B2
Enter
Change the company code to BIL for VP
Enter and save
Press enter to save in your request

Maintain default values for tax codes

Path: SPRO- Materials management –Logistics invoice verification-Incoming invoice maintain default values
for tax codes

Select new entries button


Company code :BIL
Save
Press enter to save in your request

Set tolerance units for invoice verification

Path:Up to logistics invoice verification the path is same – Invoice block-Set tolerance limits

select tolerance key BD, ST for company code 1000


select copy as button

76
change the company code to BIL for BD
enter
change the company code to BIL for ST
save

Define automatic status change

Path :Up to the logistic invoice verification the path is same – Invoice verification in back ground –Define
automatic status change

Select new entries button


Company code :BIL
Select save button or Ctrl+S
Press enter to save in your request

Group together valuation areas:

Path :SPRO-Material management –Valuation and account assignment-Account determination-Account


determination without wizard-Group togather valuation areas.

Select position button


Valuation :BILP
Enter
Give the valuation grouping code :X
Save
Press enter to save in your request

Define valuation classes:

Path :Same path – Select valuation class button

Select valuation class 3000 Raw materials local


Select valuation class 7920 Finished products
Select copy as button
Change valuation class 3000 to BIL1
Change the description to Raw materials local
Change valuation class 7920 to BIL2 – Finished product
Enter and save
Press enter to save in your request

FI consultants job:

77
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 BIL
Select with template button
Give the GL account no.200120 Inventory RM
Company code :BIL
Enter
Change the short text to Inventory RM local
Change the GL a/c long text also inventory RM local
Select control data tab
Tax category :select * (All tax allowed)
Select posting without tax allowed check box
Select create/Bank/Interest tab
Field status group change to G006 Material accounts
Save
Note :Before post select automatically only check box 200121
Ignore the warning message press enter
GL account no. :200122
Company code :BIL
Select with template button
Give the GL a/c no.200121
Company code :BIL
Enter
Select type/description tab
Change short text and GL a/c long text to inventory FG
Save
GL account :100520
Company code :BIL
Select with template button
GL account :100500 outstanding exp.
Company code :BIL
Enter
Change short text and GL account and long text to GR/IR clearing RM local
Select control data tab

78
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 :BIL
Select with template button
Give the GL account no.400100 Salaries a/c
Company code :BIL
Enter
Select type/description tab
Change the account group to RM consumption
Change short text and GL account long text to RM consumption local
Select create /bank /interest tab
Field status group to change to G003 Material consumption accounts
Save
Select edit cost element button
Valid from :01.04.2008
Enter
Cost element category :Select 01
Save

GL account :300200
Company code :BIL
Select with template button
Change the GL a/c no.300100 Exchange gain
Company code :BIL
Enter
Select type/Description tab
Change account group to Increase /Decrease stocks
Change short text and GL account long text to 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

79
Path :Up to account determination without wizard the path is same – Configure automatic postings (Tr code
is OBYC) (MM to FI Integration )

Select cancel button


Select account assignment button

Double click on transaction BSX inventory posting


Give your Chart of Accounts :BIL
enter
Select valuation modifier check box
Select valuation class check box
Save

Valuation modified Valuation class Account


X BIL1 RM local 200121 Inventory RM local
X BIL2 Finished products 200122 Inventory FG
Save

Press enter to save in your request


Select back arrow
Double click on transaction WRX GR/IR clearing account
Select valuation modifier check box
Select valuation class check box
Save
Valuation modifier :X
Valuation class :BIL1 RM local
Account no. :100520 GR/IR clearing local
Save
Press enter to save in your request
Select back arrow
Double click on GBB offsetting entry for Inventory posting
Select General modification check box
Valuation modifier check box
Valuation class check box
Save

Valuation General modification Valuation class Account


modifier
X VBR (consumption) BIL1 RM local 400000 RM
consumption local
80
X ZOF (Production receipt BIL2 Finished products 300200 Increase /
without production order) Decrease stocks FG
X AUF with production BIL2 300200
X VAY (Delivery where sales BIL2 300200
account is created as revenue
element
Co implemented)
X VAX Delivery where is sales BIL2 300200
account is not created as revenue
element
CO not implemented
Save
Press enter to save in your request

Document types and no.ranges (OBA7)


WE :Goods receipt
WA :Goods issue
RE :Grass invoice receipt

Tr code is OBA7

Select WE :Goods receipt


Select details button
Number rage :50
Select number range information button
Company code :BIL
Select change intervals button
Select interval button
No.range :50
Year :2008
From no. :800001
To no. :900000
Enter and save
Ignore the warning message press enter
Select back arrow 3 times
Select type WA Goods issue
Select details button
Number range :49
Select no.range information button
Company code :BIL
Select change intervals button
Select interval button

81
No.range :49
Year :2008
From no. :900001
To no. :1000000
Enter and save
Ignore the warning message press enter
Select back arrow three times
Select RE gross invoice receipt
Select details button
No. range :51
Select no.range information button
Company code :BIL
Select change intervals button
No.range :51
Year :2008
From no. :1000001
To no. :1100000
Enter and save
Ignore the warning message press enter

MM end user area


Creation of vendor master XK01

Give the company code :BIL


Purchasing organization :BILR
Account group :BIL2 MM vendors for BIL
Enter
Give the name :Nagarjuna Steels Limited
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
Select GR based invoice verification check box
Save
82
Creation of RM material master

Path :Logistics –Materials management –Material master-material-Create(Genral) –Immediately


(Transaction code MM01)

Material :BILRM1
Industry sector :Mechanical engineering
Material type :Raw material
Press select views button
Select basic data1, purchasing, general plant data/storage1/accounting1
Select organization levels button (bottom side)
Give the plant :BILP
Storage location :HYD
Enter
Give the description :Raw material 1
Basic unit of measurement :KG
Material group :BILC (Chemicals)
Division :BS (Steel)
Select purchasing tab
Purchasing group :BIL
Select accounting one tab
Valuation class :select BIL1 (RM local)
Price control :select V moving average price
Moving price :50
Select save button or Ctrl+S

To open material periods for November:

Up to material master the path is same –Other-Close period (Transaction code is MMPV)

From company code :BIL


Give the period :8 (November)
Fiscal year :2008
Select check and close period radio button
Execute

Purchase order creation

Path :Logistics – Material management –Purchasing –Purchase order-Create-Vendor/supplying plant known


(The transaction code is ME 21N)

Give the purchasing organization :BILR

83
Company code :BIL
Enter
Give the purchasing group :BIL
Item :10
Material :BILRM1
PO quantity :100 Kg
net price :75
Plant :BILP
Give the currency :INR
Vendor no. :2001
Save
Note the purchase order no.4500017092

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.4500017092
Enter
Storage location select :HYD
Select quantity tab
Quantity in delivery note :100
Select item ok check box
Select save button or Ctrl+S
Select display button
Enter
Select document information tab
Select FI documents button
BSX
200121 Inventory RM local 7500 BILRM1 BIL1

WRX
100520 GR/IR CLRG RM local -7500 BILRM1 BIL1
Qty .Received(GR) *Rate as per PO
100*75

Note: change USTAX to GTAX

Invoice verification:

Path :Logistics –Materials management –Logistics-Invoice verification –Document entry-Enter invoice


(Transaction code is MIRO)

84
Give the invoice date :Today’s date
Reference :Party bill no.1234
Text :Invoice verification
Purchase order :4500017092
Select payment tab
Payment terms :0001
Baseline date :today’s date
Select base data tab
Tax code :select V0
Enter
Business area :BILH
Select beside data tab
Amount :7500
Enter
Select save button or Ctrl+s
From the menu select invoice document –Display
Select follow on document button

2001 Nagarjuna Steels Limited 7500 –From party no is taken


100520 GR/IR CLRG RM local 7500 BILRM1 BIL1

Raw material consumption

Path :Logistics –Materials management –Inventory management –goods movement –goods issue
(Transaction code is MB1A)

Movement type :201


Plant :BILP
Storage location :HYD
Enter
Give the cost center :Dept A
Material :BILRM1
Quantity :30
Select save button or Ctrl+S
From the menu select goods –Issue display
Enter
Select accounting documents button
Select accounting document number
BSX

85
200121 Inventory RM local 2250-BILRM1 BIL1
GBB VBR
400000 RM consumption LCL 2250-BILRM1 BIL1
Qty consumed * moving average price
30*75

To view stock ledger

Path :Logistics –Materials management –Inventory management –Environment –Stock for posting date
(Transaction code is MB5B)

Material no. :BILRM1


Company code :BIL
Plant :BILP
Selection date :01.04.2008 to 31.03.2009
Select valuated stock radio button
Execute

SD CUSTOMIZATION
SD consultant’s job

1. Define region:(State)
Path :SPRO-SAP netweaver-General settings-Set countries –Insert regions

Select new entries button


Country :IN
Region :AP
Description :Andhra Pradesh
Save
Select create request button(F8)
Short description SD customization for BIL
Save in your request

Define sales organization

Path :SPRO-Enterprise structure –Definition –Sales and contribution –Define,copy,delete,check,-Sales


organization

Double click on define sales organization


Select new entries button
sales organization :BILS
Description :BIL HYD Sales organization
statistics currency :INR
save, Ignore the warning message press enter
86
Give the name :BIL HYD sales organization
country :IN
region :AP
press enter
To save in your request
Define distribution channel

Same path -Sales & distribution –Define,copy, delete,check distribution channel

Double click on define distribution channel


Select new entries button
Distribution channel :BD
Name :Direct sales
Save
Press enter to save in your request

Define shipping point

Path :SPRO-Enterprise structure –Definition-Logistic execution –Define, copy, delete, check shipping
point

Double click define shipping point


Select new entries button
Shipping point :BISH
Description :BIL HYD shipping point
Save
Name :BIL HYD shipping point
Country :IN
Enter
Press enter once again to save in the request

Assign sales organization to company code:

SPRO-Enterprise structure –Assignment-Sales & Distribution –Assign sales organization to company


code

Select position button


Sales organization :BILS
Enter
For sales organization :BILS
Assign company code :BIL
Save
Press enter to save in your request
87
Assign distribution channel to sales organization

Same path
Select new entries button
Sales organization :BILS
Distribution channel :BD
Save
Press enter to save in your request

Assign division to sales organization

Same path
Select new entries button
Sales organization :BILS
Division :BS
Save
Press enter to save in your request

Setup sales area:

Same path
Select new entries button
Sales organization :BILS
Distribution channel :BD
Division :BS
Save
Press enter to save in your request

Assign sales organization –distribution channel- plant:

Select new entries button


Sales organization :BILS
distribution channel :BD
Plant :BILP
Save
Press enter to save in your request

Define rules by sales area:

Path :Up to sales and distribution the path is same –Business area account assignment –Define rules by
sales area

88
Select position button
Sales organization :BILS
enter
For sales organization :BILS
Rule select :001 (Business area determination from plant / division )
Save, press enter to save in your request

Assign shipping point to plant:

Path :SPRO-Enterprise structure –Assignment-logistic execution –Assign shipping point to plant

Select find button


Enter :BILP
Press enter
Select :BILP
Select assign button
Select BISH check box
enter
Save
Press enter to save in your request

Define common distribution channels:

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

Select position button


Give the sales organization :BILS
Enter
Distribution channels for condition :BD
Distribution channels for customer master :select BD
Save
Press enter to save in your request

Define common divisions:

Same path

Select position button


Sales organization :BILS
Enter
Division for conditions :select BS
Division for customer master :select BS
Save
Press enter to save in your request
89
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
Condition type SKTV cash discount
Condition type MWST output tax
Deselect required check box
Save
Ignore the warning message press enter to save

Define pricing procedure determination:

Upto define and assign pricing procedures the path is same

Double click on define pricing procedure determination


Select new entries button
Sales organization :BILS
Distribution channel :BD
Division :BS
Document pricing procedure :select A standard
Customer pricing procedure :select 1 standard
Pricing procedure :select RVAA01 standard
Condition type :select PR00 price
Save
Press enter to save in your request

Define tax determination rules:

Path :SPRO-Sales and distribution –Basic functions- Taxes –Define tax determination rules

Select new entries button


Tax country :IN for India
Sequence :1
Tax category :UTXJ Tax Jursdict code
Save

Setup partner determination:

Partner functions
Customer No.
SP Sold to Party 1 1 Not modifiable
SH Ship to party 1 2 Modifiable
90
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

Path :Up to basic functions the path is same-Partner determination –Set up partner determination

Double click setup partner determination for customer master


Double click on partner functions folder
Select position button
Partner function :SP
Enter
Select partner function SP
Double click on account group function assignment folder
Select new entries button
Partner function :SP
Account group :BIL2
Partner function :SH
Account group :B1L2
Partner function :BP
Account group :BIL2
Partner function :PY
Account group :BIL2
Ignore the warning message press enter to save in your request
Double click on partner determination procedures folder
Select new entries button
Partner determination :BIL
Name :BIL partner determination procedure
Save
Ignore the warning message press enter

Select partner determination :BIL


Double click partner functions in processor folder
Select new entries button
Partner function :SP
Select not modifiable check box
Select mandatory check box
Select partner function :SH select mandatory function check box
Select partner function :BP select mandatory function check box
Select partner function :PY select mandatory function check box
91
Save
Press enter to save in your request
Double click on partner determination procedure assignment folder
Select position button
Account group :BIL2
Enter
For BIL2 Assign partner procedure BIL
Save

Assign shipping points

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

Select new entries button


Shipping conditions :select 01 as soon as possible
Loading group :0003 manual
Plant :BILP
Propose shipping point :BISH
Save
Press enter to save in your request

FI consultant job:

Creation of GL master sales local own goods under sales group –FS00

Give the GL a/c no. :300005


Company code :BIL
Select with template button
Give the GL a/c no. :300000 sales account
Company code :BIL
Enter
Change short text and GL a/c long text local own goods
Select control data tab
Tax category :*
Select posting without tax allowed check box
Select create /Bank /Interest tab
Field status group G029 revenue accounts
Save
Select edit cost element button
Valid from :01.04.2008
92
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


Select new entries button
Application area :Select V Sales & Distribution
Condition type :KOFI account data
Chart of accounts :BIL
Sales organization :BILS
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
Press enter to save in your request

SD end user area


Creation of customer master :XD01
Company code :BIL
Sales organization :BILS
distribution channel :BD
Division :BS
Account group :SD customer for BIL
Enter
Name :DLF Industries Ltd
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

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Customer pricing procedure :select 1 standard
Select shipping tab
Delivery priority :select 02 normal
Shipping conditions :select 01 as soon as possible
Delivery plant :BILP
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 :BILFG


Industry sector :Mechanical engineer
Material type :Finished product
Press select views button
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 organization levels button
Plant :BILP
Storage location :HYD
Sales organization :BILS
Distribution channel :BD
Enter
Description :Finished product
Base unit of measurement :KG
Division :BS
Gross weight :1 kg
Select sales :select 1
sales :Sales org.1 tab
Division :BS
94
Tax classification :select 1 (Taxable)
Select sales :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 BILL2 finished product
Price control :select S standard price
Standard price :400
Save
Creation 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
Sales organization BILS
Distribution channel :BD
Material :BILFG
Amount :600
Valid from :01.04.2008
Valid to :31.03.2009
Save
Select back arrow
Condition type :select UTXJ tax Jursdict 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 :01.04.2008
Valid to :31.03.2009

95
Tax code :A0 (0% output tax)
Save
Ignore the message press enter

CO –PROFITABILITY ANALYSIS (CO-PA)

Co for Controlling
PA for Profitability Analysis

This is used to view profitability for number of parameters at a time:

Eg: Customerwise /Productiwise /Sales order wise plant wise, Sales organization profitability.

Account based profitability /costing based profitability analysis / both (in India we use both)

PP Module
MM Module
FI Module  product costing  SD module  CO-PA
CO Module
Define an operating concert
Operating concern can be equal to controlling area or above controlling area
Controlling area can be equal to our company code or above company code
Company code =controlling area =operating concern

Data structure

Characteristics Value fields

Customer ------
Product |
Sales order |
Plant |- Sales cost of goods sold net profit
Sales organization |
Sales employee |
Country |
----

Profitability segment  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. Sales order –customer /product /plant sales organization /quantity /rate delivery terms payment terms.
3. Delivery with reference to sales order.
A) without posting goods issue (without PGI)
B) with post goods issue (with PG1)
4. Sales billing with reference to delivery

Data flow in Co-PA


96
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) CO - +FI
COGM Admin & SD Exp.
(Both –costing based and account based)
We are going to MAP:
PR00 =VV010
VPRS=W140
Product cost : BILFG1
Cost sheet: BILFG
Raw materials xxx
Raw material overheads xxx
Production costs xxx
----- Production valuation will be at COGM level or COGM+ admin exp. Level
Cost of goods manufactured xxx
(COGM)
Administration xxx
Sales & Distribution xxx
-----
Cost of goods sold (COGS) xxx

In client 800 –for company code 10001 controlling area -1000 operating concern IDEA
In IDEA –All SD condition types and equivalent CO-PA value fields

We check IDEA and do customization the same way for our operating concern also IDEA is a references to all the CO
consultants

CUSTOMIZATION :

Maintain operating concern

Path :SPRO-Controlling –Profitability analysis –Structures –Define operating concern –Maintain operating concern
(Tr code is KEA0)

Give the operating concern :BIL1 (It is a text field)


Select create button
Ignore the warning message press enter
Description :Operating concern for BIL
Select costing based check box
Select account based check box
select attributes tab
operating concern currency INR

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select company code currency check box
fiscal year variant :V3
save
select data structure tab
select create button under data structure
select KMVTNR sales employee
select left arrow
select value fields tab
select VV010 revenue
select VV140 cost of goods sold
select left arrow
select save button
from the menu select data structure save
from the menu select data structure activate
Select back arrow
Select yes button for the message to generate the operating concern environment.
Ignore the message press enter
Save
Define profitability segment characteristics (Segment –level characteristics)

Path: Up to structures the path is same -Define profitability segment Characteristics (Tr code is KEQ3)

Give the operating concern :BIL1


Enter
For product and customer
Select costing base and account base radio button
Save
Press enter to save in your request

Assign controlling area to operating concern:

Path :SPRO-Enterprise structure –Assignment –Controlling –Assign controlling area to operating concern.

Select position button


Give the controlling area :BIL
Enter
For controlling area :BIL
Assign operating concern :BIL1
Save
Press enter to save in your request

98
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 :BIL1


Select maintain groups button
Select generated groups check box
From the menu select interval maintain
Select interval button
From no. 1
To no. :9999999999 (10 times)
Save
Ignore the message press enter

Maintain assignment of SD conditions to CO-PA value fields:

Path :Up to flows of actual values the path is same –Transfer of billing documents –Assign value fields .(TR code is
KE4I)

Double click on maintain assignment of SD conditions to CO-PA value fields


Select new entries button

Open one more session with SPRO-Controlling-Profitability analysis –Structures –Set operating concern

Give the operating concern


Select operating concern :IDEA
Enter
User the Tr code is KE4I

Come to the first session


Condition type :PR00
Value field :VV010 (Revenues)
Condition type :VPRS (cost)
Value field :VV140 (Cost of goods/ Sold)
Save
Press enter to save in your request

Notes :Direct posting from FI/MM

PR00 price :VV010 Revenues


Scrap sales/waste sales –Posting only in FI, only FI-No Co account base , if we post manually in FI
If we post directly in FI-for account no.300000-399999 up date VV010 revenues

VPRS costs :VV140 cost of goods sold

If we post directly in FI for account no.400000-499999 up date VV140 cost of goods sold

99
Up to flows of actual value the path is same
(Through path )

Direct posting from FI/MM:Maintain PA transfer structure for direct postings


Tr code is KEI2

Select structure FI (Financial accounting  COPA)


Double click assignment lines folder
Give the controlling area :BIL
Enter
Enter once again
Select assignment :20 (Direct revenues from FI)
Double click on source folder
From :300000
To :399999
Double click on value fields folder
Select new entries button
Quality /value :Select value filed
Fixed /variable :Select 1 fixed amounts
Value field :select VV010
Save
Press enter to save in your request

Double click on assignment lines folder


Assignment select :10 Direct cost from FI
Double click on source folder
From :400000
To :499999
Double click on value fields folder
Select new entries button
Quantity /value :select value field
Fixed /variable :select 1 fixed amount
Value field :VV140
Save

Activate profitability analysis

Path :Up to flows of actual values the path is same  Activate profitability analysis (KEKE)

Select position button


Give the controlling area :BIL

100
Enter
For controlling area :BIL
Activate status :select 4 (component activate for both types of profitability analysis)
Save, press enter to save in your request

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)


Sales organization :BILS
Distribution Channel :BD
Division :BS
Enter
Sold to party :200101
P.O.No. :1
P.O.Date :To days date
Required delivery date :Today’s date
Delivery plant :BILP
Payment terms :0001
Item :10
Material :BILFG
Order quantity :10 kg
Enter
Ignore the message press enter
Select item :10
From the menu select Goto Item Conditions
Select shipping tab
From the menu select Edit in complication log
We get a message document is complete ,no errors
Select save button or Ctrl+S

Note the order no.11764

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

101
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 :BILP
Storage location :HYD
Enter
Give the material :BILFG
Quantity :50
Save
Ignore the warning message press enter
Note : Check it GL A/c 200122 Inventory, select automatic posting check box
From the menu select other goods receipts Display-Enter
Select accounting documents button
Select accounting document no.
BSX
200122 Inventory FG 20000 BILFG BIL2
GBB
300200 INC/DEC in stocks FG 20000-BILFG BIL2 ZOF
Qty *Standard Price
50*400

Delivery:
Path : Logistics –Sales & Distribution –Sales –Order –Sub request functions –Outbound delivery (Tr code is VL01N)
Shipping post :BILH
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
Select accounting documents button
Select accounting document no.
Double click on accounting document no.

102
200122 Inventory FG 4000-BILFG BSX is assign this A/c BIL2
300200 INC/DEC in stocks FG 4000 BILFG GBB VAY assigned to BIL2
Qty delivered *Standard price
10*400

Sales billing

Path :Up to sub sequent functions the path is same –Billing document(Tr code is VF01)
(Through path)

Select Delivery document no.


Execute
Save
From the menu select Billing document-Display-Select accounting button
Double click on accounting document no.
200100 DLF Industries Limited 6000 customer no.is taken from sales order

300005 Sales local own goods 6000-ERL


Qty sold *Sale price
10*600

REPORT PAINTER

Report to view customer wise/product wise /Sales organization wise /plant wise profitability

Define forms for profitability reports :

Path :SPRO-Controlling –Profitability analysis –Information system –report components –Define forms –Define
forms for profitability reports-(The Tr code is KE34)

Double click on creation Form


Give the operation concern form :AML
Form description : From AML profitability
Select two axes (matrix) radio button
Select create 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 confirm button
Double click on row 2
Select value field with characteristics radio button
Enter
Value field select VV140 –cost of goods sold

103
Select confirm button
Double click on row 3
Select formula radio button
Enter
Select Y001
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
Select plant /Actual indicator for available characteristics
Select left arrow
For plant /actual indicator
From :Select 0 actual data
Select confirm button
Save
From the menu select Edit-General data selection
Once again general data selection
From the available characteristics column
Select record type, period /year
Select left arrow
For record type
For form column :Select B direct posting from FI
For To column :Select F billing data
For period /year : For from column :Select variable on /off check box
Local variable :Enter 1
Press enter
For to column select variable on/off check box
Local variable :2
Enter
Select confirm button
From the select Extras –variables –variable definition
For name 1 : Give the description from period /year
For name 2 Description :To period /year
104
Enter & save

Create profitability report:

Same path
Double click on crate profitability report
Tr code is KE31

Give the report :BILREPORT ( This is a text field)


Description :BIL Profitability Report
Select report with from radio button
Give the form name :BIL1
Select create button
Select operating concert currency radio button
From the characteristics list :Select customer /plant /product ,Sales organization
Select left arrow
Select output type tab
Select classic drill down radio button
Select available on selection screen check box
Save
Ignore the message press enter
Select execute button
Form period/year :01.2008
To period /Year :12.2008
Execute
Ignore the message select press enter
To view product wise profitability from the menu select navigate-with drill down
Double click on product
This called date cube
PRODUCT COSTING

This is used for valuation of inventories i.e. Finished goods and Work in progress

PP Module
MM Module |
FI Module |  Product costing
CO Module |

Note: SAP lab :Product costing made easy BPB publication –Not covered product costing Crate a cost estimate with
quantity structure

Cost element with quantity structure


At standard cost In the month end we get actual cost

Variable will be settled to accounts

105
How standard cost will be arrived at :

Sales budget for next month Production budget Material requirement Planning
| |
(Make to orders (confirmed orders) (This is same men budget) +
And make to stock (expected orders)) Overhead planning =
Standard cost
Cost sheet for the product BILFG1
Raw materials xx
Raw material overheads xx
Production costs xx
Cost of goods manufactured (COGM) xx
Administration Expenses xx
Sales & Distribution exp. xx
----
Cost of goods sold (COGS) xx

To check with client at what level he wants to value stocks


At COGM level or At COGM +Admin level

Raw material standard cost


For each product –we find out materials required
For BILFG1 We required BILRM1
BILRM2
MM Module :Material Master
Accounting view –moving average price
BIL RM1 75
BILRM2 125

PP Module: Bill of Material (BOM)

To produce BILFG1 what materials are required and how much quantity
BILRM1 1Kg
BILRM2 1Kg
Raw material standard cost =Quantity
from BOM (PP)*Rate from Material Master (MM)
(1*75)+1*125)=200

Raw material overheads

Overheads like freight charges :At the time of receipt it will be added to material –At the time of consumption the
material cost includes freight also.

Overhead like loading and unloading normal amounts change directly to P & L account clients will tell us-how much
percentage can be taken on raw material cost (consumption.) 5% of raw material costs

Eg: 250*5%=12.5

Production costs:
Cost centers in PP Module :Work centers

Dept A Dept B Dept C Dept D

106
Dept A Dept B Dept C Dept D
Raw material Issue Issue Issue finished product

All products need not go through all the Departments

Process flow for each product in PP module we call as routing.

PP Module: Routing (Process flow)


Dept A Dept B Dept D
Raw material Issue Issue Finished product

Wages 300000
Salaries 100000
Power 320000
-------
Planned cost 720000
=====
Planned hours available
Machines 100 working for 3 shifts (24 Hours )
No.of days 30 Days
100*30*24=72000
Machine hour rate 720000/72000=10 Rs
(Activity type)
To Produce BILFG1
Hours required 5Hrs
Production cost 10*5=50

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)

Example :
Why can’t we allocate based on production

Production Qty Hrs Req Cost


BILFG1 999 Kgs 1
BILFG2 1 Kg 999
------ -----
1000 1000 720000

If we allocate cost based on production

BILFG1 720000*999/1000=719280
BILFG2 720000*1/1000= 720
--------
720000
======
If we allocate cost based on hours required

BILFG1 720000*1/1000 =720


BILFG2 720000*999/1000 =719280
-----------
720000
========
ACTIVITY BASED COSTING

Co –Consultants job:

107
1. Creation of 2 secondary cost elements (Use Tr.code is KA06)

A) RM overhead rate
B) Activity allocation

Give the cost element 1200000


Valid from 01.04.2008 to 31.12.9999
Enter
Give the name and description :RM Overhead rate
Cost element category : Select 41 overhead rates
Save
Cost element :1200001
Enter
Name and 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 :BIL


Valid from :01.04.2008 to 31.12.9999
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 :1200001
Save

Creation of cost centers: (Tr.code is KS01)

Give the cost center :Dept G


Valid from : 01.04.2008 to 31.12.9999
Reference cost center :Dept A
Controlling area :BIL
Enter
Change the name to Dept G
Change the description to cost center :Dept G
Person responsible :MrG
108
Other things are common
Select save button

Cost center :Dept H


Reference cost center :Dept A
Controlling area :BIL
Enter
Change the name to Dept H
Change the description to cost center:Dept H
Change person responsible to Mr.H
Cost center category :select 9( Allocation cost center)
Save

Create of cost center group (Tr code is KSH1)

Give the cost center group :BILPROD


Enter
Description :BIL Production cost center group
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 :BIL1
Description :BIL Overhead key
Save
Press enter to save in your request

Define overhead groups


Same path

Select new entries button


Valuation area :BILP
Overhead group :BIL1
Overhead key :BIL1
Name of overhead group :BIL over head group
Save
109
Press enter to save in your request
Note:
Overhead rate will be given to overhead key
Overhead key will be assigned to overhead group
Overhead group will be specified in material master

Define calculation basis

Path :SPRO-Controlling- Product cost controlling –Product cost planning-Basic setting for material costing –Over
head –costing sheet components –Define calculation bases

Select new entries button


Base :D1 (Text filed)
Name :Raw materials
Base :D2
Name :Production cost
Save
Press enter to save in your request

Select D1 double click on details folder


Controlling area :BIL
Enter
Select new entries button
From cost element :400000
To cost element :400099 RM consumption
Save
Select back arrow two times
Select base D2 Production cost
Double click on details folder
Controlling area :BIL
Enter
Select new entries button
From cost element :400100
To cost element :400299 Personnel & Manufacturing group

From cost element :400500


To cost element :400599 Depreciation a/c

From cost element :1200001 Activity allocation

110
To cost element :1200001
Save

Define percentage overhead rates:


Same path

Select new entries button


Overhead rate :D3
Name :RM overhead rate
Dependency :Select D010 Overhead type/Overhead key
Save
Press enter to save in your request

Select D3
Double click on details folder
Ignore the warning message press enter
Select new entries button

Valid from To Controlling area Overhead type Overhead key Percentage

01.04.2008 31.03.2009 BIL Select 2BIL1 5


(Planned overhead rate) RM key

01.04.2008 31.03.2009 BIL 1 (Actual overhead rate) BIL1 10

Select save button or Ctrl+S


Press enter to save in your request

Define Credits
Same path

Select new entries button


Credit :D4
Name :BIL RM credit key
Save
Press enter to save in your request
Select :D4
Double click on details folder
Controlling area :BIL
Enter
Select new entries button
Valid to :31.03.2009
Cost element :1200000 RM overhead rate

111
Fixed percentage :100%
Cost center :Dept H (Allocation cost center)
Save
Actual over head rate 10%
Credit key D4 -1100000 Cost Dept.

1. RM1 Purchase/Receipt (Freight including)

Inventory RM local DR 600000


To GR/IR clearing RM local 600000

2. Loading & Unloading charges

Loading & Unloading charges Dr 7000 Dept H


To Bank 7000

3. RM 2 Purchase

Inventory RM local DR 300000


To GR/IR clearing RM local 300000

4. Loading & Unloading charges for RM 2

Lodging & unloading charges DR 3000


To Bank 3000

5. RM Consumption for production Order 1-RM1 and RM2

RM consumption local DR 40000 Order 1


RM Consumption local DR 20000 Order 1
To Inventory RM local 40000
To Inventories RM local 20000

6. RM consumption for production order 2 RM-1 and RM2

RM consumption local DR 10000 Order 2


RM Consumption local DR 30000 Order 2
To inventory RM local 10000
To Inventory RM local 30000

In the month end

RM material consumption 100000


Lodging & Unloading charges 10000
% on consumption 10% actual overhead rate

Cost center Dept H


(Allocation cost center)

Loading & Unloading for RM1 7000 DR Order 1 6000 DR


Loading & Unloading for RM2 3000 DR Order 2 4000CR

112
H Value will be zero

Order 1 Order2
RM Consumption 60000 40000
RM overhead rate 6000 4000
(Actual 10%) ----- -----
66000 44000
===== =====

Indirectly we are allocating cost center Dept H values to production orders based on the consumption values.

Define costing sheets:

Path :Up to overhead the path is same- Define costing sheets

Select new entries button


Costing sheet :BIL
Description :BIL Costing Sheet
Save
Press enter to save in your request
Select :BIL
Double click on costing sheet rows folder
Select new entries button

Row Base Overhead Description

10 D1 Raw materials
20 400000-400099
D3 RM Overhead rate
From :10
To Row:10
Credit :D4

Row :30
Base :D2
Description :Product cost

Row :40
Description :Cost goods manufacturer
From :10
To row :30
Save

Assign costing sheet to plant :

Path :SPRO-Controlling –Product cost controlling –Product cost planning –Material cost estimate with quantity
structure- Define costing variants (TR code is OKKN)

Select position button

113
Cost variant :Select PPC1 standard cost estimate (Materials)
Enter
Select PPC1
Select details button
Select valuation variant button
Select create beside valuation variant /plant
Select new entries button
In plant :BILP
Save
Press enter to save in your request

Select back arrow


Select valuation variant :001 with plant BILP
Select details button
Select overhead tab
Give the costing sheet :BIL costing sheet both in the places
Save

Define cost component structure:

To know the break up of standard product cost


What is raw material cost?
What is RM overhead cost ?
What is production cost ?

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
Select new entries button
Cost competent structure :01
Chart of Accounts :BIL
From cost element :400000
To cost element :400099
Cost component :select 10 RM
Save
Ignore the warning message press enter
Press enter to save in your request

114
Select back arrow
Double click on cost components with attributes folder
Select cost component structure 01 with cost component 80 Material over head
Double click on assignment:Cost component cost element –Interval folder
Select new entries button
Cost component structure :01
Chat of Accounts :BIL
From cost element :1200000 RM overhead
Cost component :80 Material overhead
Save
Press enter to save in your request
Double click on cost components with attributes folder
Select cost component structure :01 with lost component 50 production machine
Double click on assignment cost component –cost element interval folder
Select new entries button
Cost component structure :01
Chat of Accounts :BIL
From cost element :400100
To cost element :400299
Cost component :select 50 production machine

One more
Cost component structure :01
Chat of Accounts :BIL
From cost center :400500
To cost center :400599
Cost component :50

One more

Cost component structure :01


Chat of Accounts :BIL
From cost element :1200001
Cost component :50
Save
Double click on cost component structure folder
For cost component structure 01 select active check box
Save
For cost component structure assignment structure 02 also for cost component
115
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

Select new entries button


Plant :BILP
MRP controller :Mr.A
Save
Press enter to save in your request

Notes:
Define floats (Scheduling margin key)

Floats –Buffer days or grace days


2 days grace days
Production order creation 08.12.2008 10.12.2008
Production order release 10.12.2008 12.12.2008
Production start date 11.12.2008 13.12.2008
Production end date 15.12.2008 17.12.2008

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

Select new entries button


Plant :BILP
Margin key :BIL
Opening period :2 days
Float before production :2 days
Float after production :2 days
Release period :2 days
Save
Press enter to save in your request

Define production scheduler

Path :SPRO-Production-Shop floor control- Master data-Define production scheduler

Select new entries button


Plant :BILP
Production scheduler :B
Description :Mr.B
Save
Press enter to save in your request

Determine person responsible for work center


116
Path :SPRO-Production –Basic data –Work center –General data –Determination person responsible

Select new entries button


Plant :BILP
Responsible person : Mr.C
Person responsible for work center :Mr.C
Save
Press enter to save in your request

CO END USER AREA:

Planning cost center wise (KP06)

Version :0
From period :9 (December)
To period :9 (December)
Fiscal year :2008
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)
For 400100 Plant fixed cost :720000
Save

Planning for machine hours

Path :Accounting –Controlling –Cost center accounting –Planning-Activity output /Prices-Change (KP26)

Version :0
From period :9
To period :9
Fiscal year :2008
Select next page or page down button
Cost center :Dept G
Activity type :BIL
Select form based radio button
Select overview screen button
Plant activity :72000
Save

calculation of Machine hour rate

117
Path :Up to planning the path is same – Allocations –Price calculation (KSPI)

Select cost center group radio button


Cost center group select :BILPROD
Execute
Select save button
Ignore the message press enter

MM END USER AREA

Creation of material master (MM01)

A) Raw material 2
B) Finished product 1

Give the material :BILRM2


Industry sector :Mechanical Engineering
Material type :Raw material
Press select view button
Select basic data1 :Select purchasing Select general plant data /storage /Accounting
Select organization levels button
Plant :BILP
Storage location :Hyderabad
Enter
Give the description :Raw material 2
Base unit of measurement :KG
Material group :BILC
Division :BS
Select purchasing tab
Purchasing group :BIL
Select accounting 1 tab
Valuation class :BIL1 RM Local
Price control :select V moving
Moving price :150
Save

One more material :BILFG1


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
Select organizational levels button /enter
118
Enter
Plant :BILP
Storage location :Hyderabad
Enter
Description :Finished product 1
Base unit measurement :KG
Division :BS
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 BIL
Select MPR 3 tab
Ignore the warning message press enter
Availability check :select KP (no check )
Select work scheduling tab
Production scheduler :B
Select accounting tab
Valuation class :BIL2 Finished products
Price control :S (Standard price)
Standard price :300
Select costing one tab
Overhead group :select BIL1
Save
Note :BOM=Bill of Material

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 :BILFG1


Plant :BILP
BOM usage :select 1 production
Enter
For item :10

119
Give the component :BILRM1
Quantity :1
Item :20
Give the plant :BILRM2
Quantity :1
Save

Creation of work center

Path :Up to mater data the path is same –Work centers –then work centers-create (CR01)

Plant :BILP
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 :01.04.2008
Cost center :Dept G
For machine activity :Give activity type BIL
Activity unit :H (Hour)
Formula key :SAP002 (Production machine time)
Save

Creation of routings

Path :Up to master data the path is same –Routings –Routings –Standard routings –Create (Tr code is CA01)

Give the material :BILFG1


Plant :BILP
Enter
Usage :select 1 production
Status ;select 4 (released (general))
Select operation button
For operation 10 give the work center :Dept G
Control key :select PP01 in hour production
Double click on operation :10

120
Machine standard value :5
Unit :H (Hour)
Save
Note: Routing is process flow as a department wise

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)

Give the material :BILFG1


Plant :BILP
Costing variant :select PPC1 (standard cost estimate for material )
Enter
Costing date from :Today’s date
Note :In live environment next month first day date, this is planning date, In training institution use today’s date
Costing date to :31.12.9999
Quantity structure date :08.12.2008
Valuation date :08.12.2008
Enter

Cost sheet
Raw materials

BIL RM1 1 Kg 75
BILRM2 1Kg 150 225

RM overhead cost -5% 11


Production costs 5*10 50
Machine hours 5 Hrs
Machine hour rate 10Rs -----
286

From the menu select Costs –>Display cost components


Select save button or Ctrl+S
Enter

Marking and releasing

Display material master

Path :Logistics –Materials management –Material master-Material –Display –Display current (MM03)

Material :BILFG1
Press select views button
Select costing 2 view
Enter
Plant :BILP
121
Enter

A) Marking and releasing

Display material master


1. Making updates future price in live environment on 21st February create estimate for March and store in the System.

2. Realizing updates current price on 1st of March release stock valuation will be at the new rate from 1st of March

B) Marking and releasing :

Path :Accounting –Controlling –Product cost controlling –Product cost planning –material costing –Price update
(CK24)

Posting period :9
Fiscal year :2008
Company code :BIL
Plant :BILP
Material :BILFG1
Select test run check box
Select marking allowance button
Select company code :BIL
Costing variant :select PPC1
(Standard cost estimate for materials)
Save

Select back arrow


Deselect test run check box
Execute
Select material :BILFG1
Select costing to tab
Select back arrow two times
Select release button
Execute
Select material :BILFG1
Select costing to tab

ACTUAL COSTING

CO consultant Job

Check costing variants for Manufacturing orders (PP)

122
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 details button
Select valuation variant button
Select create button beside valuation variant /plant
Select new entries button
In plant :BILP
Save
Press enter to save in your request
Select back arrow
Select valuation variant :006 with plant BILP
Select details button
Select overhead tab
Give the costing sheet :BIL costing sheet
Save
Select back arrow
Select costing variant PPP2 production Order Actual
Select details button
Select valuation variant button
Select create beside valuation variant/plant
Select new entries button
In plant :BILP
Save
Press enter to save in your request
Select back arrow
Select valuation variant 007 with plant :BILP
Select details button
Select overhead tab
Costing sheet :select BIL costing sheet
Save

Define goods received valuation for order delivery:


Same path

Select new entries button


Valuation area :BILP
Valuation variant :007 production order -Actual
Save
Press enter to save in your request

123
Work in process customization

Creation of 5 secondary cost elements (Tr code is KA06)

Give the cost element :1100000


Valid from :01.04.2008 to 31.12.9999
Enter
Name & Description :Order /Project result analysis
Cost element category :select 31 (order /project results analysis)
Save
Cost element :1100001
Reference cost element :1100000
Controlling area :BIL
Enter & Save

Cost element :1100002


Reference cost element :1100000
Controlling area :BIL
Enter & Save
Cost element :1100003
Reference cost element :1100000
Controlling area :BIL
Enter & Save
Cost element :1100004
Reference cost element :1100000
Controlling area :BIL
Enter
Save

Define results analysis keys

Path :SPRO-Controlling –Product cost controlling –Cost object controlling –Product cost by order –Period end
closing –Work in process –Define results-Analysis keys (Tr code is OKG1)

Result analysis key :FERT WIP calculation for production orders

Define results analysis versions(Tr code OKG9)


Same path

Select new entries button


Select controlling area :BIL
Technical result analysis cost element :select 1100000
Save
124
Press enter to save in your request

Define valuation method (Actual cost) ( Tr code is OKGC)


Same path
Select new entries button
Select actual cost button
Controlling area :BIL
Result analysis version :0
Result analysis key :FERT
Enter & Save
Press enter to save in your request

Define line Id’s


Same path
Purchase of to get the break up of WIP (Work In Progress)value
Select line ID EL (Revenues)
EK Direct cost
FK Production cost
ABR settled cost for controlling area 1000

Select copy as button (F6)


Change the controlling area to BIL for all line ID’s
Enter & Save
Press enter to save in your request

Define Assignment (OKGB)


Same path
Select line ID EL that is revenues for controlling area :1000
Select copy as button
Change the controlling area to BIL
Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999)
Enter & Save
Press enter to save in your request
Select line ID :EK Direct cost for controlling area 1000
Select copy as button
Change the controlling area to BIL
Change mass cost element to 00004000++
Enter and save
Select line ID FK that is production cost for controlling area 1000
Select copy as button

125
Change the controlling area to BIL

Production cost elements:


400100 -400199 Personnel 00004001++
400200-400299 Manufacturing 00004002++
400500-400599 Depreciation 00004005++
1200001 Activity allocation 00012+++++

Change master key cost element to 00004001


Enter & Save
Notes: for define assignment line ID brak up of WIP
Dept A Dept B ept C
Issue RM work in progress
RM over head
Production costs 100000 200000
Calculate internally WIP by using secondary cost elements and transfer to financial accounting require the break up of
WIP by using line ID’s and account assignments to line ID’s.

Select line ID FK production cost for controlling area BIL


Select copy as button
Change the mass cost element to 00004002++
Enter & Save
Select 2FK line ID’s for controlling area BIL
Select copy as button –Change masked cost element from first line ID 00004005++
Change to 00012+++++
Enter & save
Select bank arrow

Select line ID ABR Settled cost for controlling area 1000


Select copy as button
Change the controlling area to BIL
Change mass cost element to 0001000001 :(settlement cost element)
Enter & save

Define update; (Tr.code is OKGA)

Same path
Select new entries button
Controlling area :BIL
Version :0
Result analysis key :FERT

126
Line ID :select EL revenues
Category :select N (costs not to be included)
Controlling area :BIL
Version :0
Result analysis key :FERT
Line ID :Select EK (Direct cost)
Category :select K cost
WIP :1100001
Revenues :1100002
Controlling area:BIL
Version :0
Revenues analysis key :FERT
Line ID :FK production cost
Category :select K cost
WIP creation :1100003
Reserves creation :1100004
Select page down button
One more controlling area :BIL
Version :0
Result analysis key :FERT
Line ID :ABR settled cost
Category :select A (Settled cost )
Save
Press enter to save in your request

Creation of two GL Masters:

WIP entry

Work in process DR BS CA(Current assets, Loans &


Advances)
To Increase /Decrease in WIP P & L Credit INC/DEC in stocks

FS00

Give the GL Account no. :200123


Company code :BIL
Select with template button
Give the GL A/c No.200121 INV RM local
Company code :BIL
Enter
127
Change short text to and GL A/c long text to work in process
Other fields are common
Save

GL A/c No.300201
Company code :BIL
Select with template button
Give the GL A/c no.300200 Increase /Decrease stocks FG
Company code :BIL
Enter
Change short text and GL A/c loge text to INC/DEC stocks – WIP (Work in Progress)
Save

Define posting result for setting work in process

Path :Up to period end closing the path is same –Work in process –Define posting results for setting work in process
(OKG8)

Select new entries button


Controlling area :BIL
Company code :BIL
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
Press enter to save in your request

Define results analysis version (OKG9)


Same path

Select controlling area :BIL


select details button
Select transfer to Financial accounting check box
Save
Ignore the warning message press enter
Press enter to save in your request

RM issue overhead production costs Dept A Dept B Dept D


FG not received
Settle to accounts by using secondary costs elements break up WIP (BY using line IDs)

128
Define variance keys:

Path :Up to period end closing the path is same –Variance calculation :Define variance keys (OKV1)

Select variance key 00001 Production order


Select copy as button
Change the variance key to BIL1
Change the name also variance key for BIL
Enter & Save

Define default variance keys for plants (OKVW)


Same path

Select position button


Give the plant :BILP
Enter
For plant :BILP
Assign variance key :BIL1
Save
Press enter to save in your request

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 :Same path

Select controlling area 1000 with target cost version 0


Select copy as button
Change the controlling area to BIL
Change the description to target cost version for BIL
Enter & Save
Press enter to save in your request

Assign variance key in Material master

Path :Logistics –Material management-Material master –Material –Change –Immediately (MM02)

Give the material no.BILFG1


Press select views button
Select costing 1 view
Enter
129
Give the plant :BILP
Enter
Variance key :select BIL1
Save

Creation of cost element group (KAH1)

Give the cost element group :BILPRODN


Enter
Description :Production cost element for BIL
Select Edit-Cost element -Select insert cost element button
400100 400299 Personnel & Manufacturing
400500 400599 Depreciation
1200001 Activity allocation
Save

Create allocation structure:

Path :SPRO-Controlling –Product cost controlling- Cost object controlling –Product cost by order-Period end closing
–Settlement –create allocation structure

Select new entries button


Allocation structure :B2
Text :BIL Production differences allocation structure
Save
Press enter to save in your request

Select :B2
Double click on assignments folder
Select new entries button
Assignment Text
01 Direct costs(Raw materials)
02 Material overheads
03 Production costs
Save

Select assignment 01
Double click on source folder
From cost element :400000
To cost element :400099
Double click settlement cost elements folder
Select new entries button
Receiver category :select G/L, GL account
130
Select by cost element check box
Save

Double click on assignments folder


Select assignment 02 Material overheads
Double click on source folder
From cost element :1200000 RM overhead rate
Double click on settlement cost elements folder
Select new entries button
Receiver category :select G/L , GL Account
Select by cost element check box
Save
Double click on assignment folder
Select assignment 03 production cost
Double click on source folder
Give the cost element group :BILPRODN
save
Double click on settlements cost elements folder
Select new entries button
Receiver category :select G/L
Select by cost element check box
Save

Create settlement profile:


Same path

Select new entries button


Settlement profile :BIL
Description :BIL production order differences settlement profile
Select to be settled in full radio button
Allocation structure :B2
Default object type :select G/L
Select % settlement check box
Select equivalence number check box
Select amount settlement check box
Under valid receivers for GL account :Select settlement required
Document type :SA
Maximum no.of distribution rules :999
Residence time :12 months

131
Save
Press enter to save in your request

Define CO.No.range interval for the business transactions

RKL -Actual Activity Allocation


KZPI- Actual overhead (Periodic)

User transactions code :KANK


Give the controlling area :BIL
Select maintain groups button
Double click on RKL
Double click on KZPI
Select Co. No. range interval for BIL check box
From the menu select –Edit –Assign element group
Save
Ignore the warning message press enter

Define exchange rate for type P (Standard truncation for cost planning for INR to EURO

(Transactions code OB08)

Select new entries button


Exchange rate type :P
Valid from :01.12.2008
From currency :INR
To currency :EUR
Direct quotation :0.02
Save
Press enter to save in your request

FI Consultant job
BILRM2 receipt

Purchase order Opening stock


|
GR
|
IV

Inventory RM local DR BSX


To Stock taking GBB BSA Current liability & provision

Production order differences are to be settled to accounts


Production order differences manufacturing DR PRD
To INC/DEC in stocks FG GBB AUA

Creation of 2 GL masters (FS00)

132
Give the GL A/c No.400201
Company code :BIL
Select with template button
Give the GL A/c No. :400200 Conversion charges
Company code :BIL
Change short text and GL account long text to production order differences
Select create /bank/Interest tab
Field status group change to G014 MM adjustment account
Save
GL A/c No. :100599
Company code :BIL
Select with template button
Give the GL A/c No.100500 VAT payable
Company code :BIL
Enter
Select type /Description tab
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
Give the GL account no.300200 INC/DEC stock in FG
Company code :BIL
Select edit cost element button
Valid from :01.04.2008 to 31.12.9999
Enter
Cost element category :select 22 external settlement
Save

Assignment of account for automatic postings (OBYC)


(See the material )

Double click on transaction PRD Cost (Price) differences


Give the Chart of Accounts :BIL
Enter
Save
Give A/c No.400201 production order differences
Save
Press enter to save in your request
133
Select back arrow
Double click on GBB offsetting entry for inventory posting
Valuation modifier :X
General modification :BSA opening stock taking
Valuation class :BIL1
Account no. :100599 stock taking account
Valuation modifier :X
General modification :AUA production
Valuation class :BILL
Account :300200
Save
Press enter to save in your request

PP CONSULTANTS AREA

Define order type –Dependent parameters

Path :SPRO-Production –Shop floor control-Master data –Order-Define order type dependent parameters. (Tr code is
OPL8)

Select plant :1000 with order type PP01


Select copy as button
Change the pant to BILP
Enter and Save
Press enter to save in your request

Define scheduling parameters for production orders

Path :Up to Shop floor control the path is same- Operations-Scheduling –Define scheduling parameters for
production orders (Tr code is OPU3)

Select plant :1000 with order type PP01


Select copy as button
Change the plant to BILP
Enter and save
Press enter to save in your request

Define confirmation parameters

Path :Up to shop floor control the path is same –Operations-Confirmation-Define confirmation parameters (OPK4)

Select plant 1000 with order type PP01


Select copy as button
Change the plant to BILP
134
Enter and Save
Press enter to save in your request

Define checking control

Path :Up to shop floor control the path is same –Operations –Availability check –define checking control (OPJK)

Select business function :1 & 2 for order type PP01 for plant 1000
Select copy as button
Change the plant to BILP
Enter
Change the plant to BILP
Enter and save
Press enter to save in your request

END USER AREA

Creation of production order:

Path :Logistics –Production-Shop floor control-Order –Create –with material (Tr code is CO01)
Give the material :BILFG1
Production plant :BILP
Planning plant :BILP
Order type :select PP01 Production order
Enter
Give the total Qty under quantities :10
Start date & end 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
From the menu select order display note the order no.60003225
Enter
Select assignment tab
Not to the reservation no.66076

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

135
Plant :BILP
storage location :HYD
Enter
Give the material no. :BILRM2
Quantity :100 kgs
Select save button or Ctrl+S
From the menu select other goods receipts display
Enter
Select accounting documents button
200121 Inventory RM LCL 15000 BILRM2 BIL1 BSX
100599 Stock taking 15000 BILRM2 GBB BSA BIL1

100*150

Raw material issue to production order:(Tr code is MB1A)

Select to reservation button


Give the reservation no.66076
Enter
Qty
BIL RM1 :15
BIL RM2 :15
Save
From the menu select goods issue display
Enter
Select accounting documents button
Select accounting document no.

200121 Inventory RM local 1125 BILRM1 BSX BIL1

400000 RM consumption local 1125 BILRM1 GBB VBR BIL1


Quantity consumed * Avg rate ( 15 *75)

200121 Inventory RM local 2250 BILRM2 BSX BIL1

GBB VBR
400000 RM consumption local 2250 BILRM2 BIL1
Qty consumed * Avg. rate (15*150)

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)

Give the order no. :60003225


Period :9
Fiscal year :2008

136
Select text check box
Select dialog display check box
Execute
Select back arrow
Deselect text run check box
Execute

Work in process calculation

Path :up to single functions the path is same –Work in process –Individual processing –Calculate (Tr code is KKAX)

Give the over no. :60003225


WIP period :9
Fiscal year :2008
Result analysis version :select 0
Select test run check box
Execute
Select back arrow
Deselect test run check box
Execute
Settlement of work in process to accounts
(31.12.2008 (month end date)

Path :Up to single functions the path is same –Settlement of individual processing (Tr code is K088)

Give the order no. :60003225


Settlement period :9
Fiscal year :2008
Deselect text run check box
Select check transaction date check box
Execute
Select detail lists button
Select accounting documents button
Select accounting document no.

300201 INC/DEC in stock WIP 3713 P &L Account


200123 Work in Process 3713 Balance Sheet
(Actual RM +Actual RM overheads)

To view work in process report


137
Path :Accounting –Controlling –Product cost controlling –Cost 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 :BILP
Material number :BILFG1
From period :01 2008
To Period :9 2008
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)

Give the order no. :60003225


Operation /Activity :10 kg
Confirmation type :select final confirmation
Yield to confirm :10 kg
Fro activity 2 to confirm :60 Qty
Unit :H (Hour)
Save

Production receipt

Path :Logistics –Material management –Inventory management –Goods movement –Goods receipt for order (Tr code
is MB31)

Give document date :31.12.2008


Posting date :31.12.2008
Give the movement type :101 (Goods receipt for order into ware house)
Order :60003225
Plant :BILP
Storage location :HYD
Enter
Ignore the warning message press enter
Select save button or Ctrl+S
From the menu select goods receipt display
Document no.5000011861
Enter
Select accounting documents button
Select accounting document no.

200122 Inventory FG 2860 BILFG1 BSX BIL2

GBB AUF
300200 INC/DEC in stocks FG 2860 BILFG1 BIL2
138
Qty produced * standard rate
10*286
To make production order technically complete (TECO)

Path :Logistics –Production –shop floor control –Order –Change (Tr code is CO02)

Give the order no.60003225


Enter
From the menu select functions –Restrict processing –Technically complete
Save

Calculation of variances

Path :Accounting –Controlling-Product cost controlling –Cost object controlling –Product cost by order - period
ending closing –single functions- Variances –Individual processing (Tr code is KKS2)

Give the order no.60003225


Select execute button
Select back arrow
Deselect text run check box
Execute
Double click on variance amount

Open one more session for order display (CO03)


Give the order no.60003225
Enter
From the menu select go to cost analysis

Calculation of work in process (KKAX)

Path :Upto single functions same path –Work in Progress –Individual processing-Calculate

Work in process for Dec


Production for Dec
To calculate WIP once again work in process will be reserved and variances will be settled to accounts
Give the order no. :60003225
WIP to Period :9
Fiscal year :2008
Result analysis version:0
Deselect text run check box
Execute
Settlement of work in process to accounts :KO88
Give the order no. :60003225
Settlement period :9
Fiscal year :2008
139
Deselect test run check box
Select check transaction date check box
Execute
Select details list button
Select accounting documents button
Select accounting document no.
GBB AUA
300200 INC/DEC in stocks FG 853 BILFG1 BIL2
400201 Production order diff 853 period
300201 INC/DEC in stock WIP 3713 P & L debit
200123 work in process 3713 –Balance sheet credit

ASSET ACCOUNTING AREA

Capital work in progress line item settlement


Machine purchase Debit to CWIP Machine no.15
01.12.2008 Commission 13/12/2008

Freight charges 05.12.2008 settle from CWIP to respective asset


Commissioning charges 12/12/2008

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 button
Select to be settled in full radio button
Allocation structure :select A1( CO allocation structure)
Default object type :select FXA asset
Select % settlement check box
Select equivalence numbers check box
Select amount settlement 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
Select back arrow two times

140
Double click on assign settlement :Profile to company code
Select position button
Give the company code :BIL
Enter
For company code BIL assign settlement profile AI
Save
Press enter to save in your request

Creation of capital work in progress asset master (AS01)

Give the asset class :BIL4000 capital work in progress


Company code :BIL
Enter
Description :CWIP –General
Capitalized on :01.12.2008
Select time dependent tab
Business area :BILH
Select depreciation areas tab
Depreciation key :0000 (no depreciation)
Save
Note down the asset no.500001-0

Asset purchase posting (F-90)

Give the doc .Date & Posting date :01.12.2008


Type :KR
Company code :BIL
Posting key :31
Vendor account :2001
Give the amount :600000
Business area :BILH
Text :Machinery purchase posting
Posting key :70
Account no. :500001-0
Transaction type :100 External acquisition
Remove the TDS codes
Enter
Amount :*
Text :+
Document –Simulate & Save

141
Freight payment (F-02)

Give the Doc date & Posting date :15.12.2008


Type :SA
Company code :BIL
Posting key :70
Account :500001-0
Transaction type :100
Enter
Give the amount :10000
Text :Freight payment
Posting key :50
Account no. :200105 SBI current a/c
Enter
Amount :*
Business area :BILH
Text :+
Document –simulate & save

Creation of machinery master (AS01)

Give the asset class :BIL 2000 Dept A


Company code :BIL
Enter
Description :Machine no.15
Capitalized on to days date
Select time dependent tab
Business area :BILH
Select depreciation area tab
Depreciation key :BIL1
Useful life :15 years
Period :6 months
Ordinary depreciation start date :Today’s date
Save
Note: the asset no.200004-0

Settlement of CWIP to machine no.15

Path :Accounting –Financial accounting –Fixed assets –Posting-Capitalized asset under construction –distribute (Tr
code is A1AB)

142
Company code :BIL
Asset :500001
Sub number :0
Execute
From the menu select Edit –select –select all (F5)
Select enter button
Category :select FXA asset
Settlement receiver :200004-0
Give the percentage :100
Select back arrow
Save
Select settlement button (Shift +F8)
Give the asset value date :13.12.2008 (Today’s date)
Text :CWIP settlement
Deselect text run check box
Execute

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.

NEW GENERAL LEDGERS ( ECC 6 NEW FEATURES)

New general ledger (Multiple ledgers)

Accounting group V3 India group April –March B1 Leading ledger –0L


Accounting group K4 US Group Jan –Dec K4 Non leading ledger –M1
Accounting group V6 UK Group July-June V6 Non leading ledger 2 –M2

When we create ledgers automatically ledger group will be created

We can assign in ledger group number of legers for 0L we can assign all and M2

At the time of posting –If we don’t specify ledger group –It updates all legers.

FC (Foreign currency)Revaluation –Gain /Loss to charge to P & L account -For leading ledger 01 and non leading
ledger M1-For UK group purpose it is to be added to asset and calculate depreciation for ledger group 0L-Assign M1
( 0L is already assigned) –At the time posting it updates ledgers 0L and M1

Representative ledger and non-representative ledger

When we create legers ledger group will be created that ledger will be called representative ledger – we are assigning for
0L ledger group M1 –This is called non representative ledger.

143
At the of posting system checks representative ledger periods are open or not –we need not open non-representative
ledgers periods.

Eg: Ledger GRP (Group)-0L

Ledger 01 Representative ledger


(April 2008- March 2009)
January 2009 period should be open
Ledger M1 Non-representative ledger
January 2009 –December 2009
January 2009 period can be closed.

We are creating M1 ledger –Automatically M1 ledger GRP is created –we are assigning ledger 0L (0L=Leading ledger)
–Always leading ledger only should be the representative ledger.

Document types and no.ranges are required non-leading ledgers –All non-leading ledgers we specify all document types
and given only one number range –we give number range interval only for one number range.

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

Path :SPRO-Financial accounting (new) -Financial accounting global settings (new) –Legers –Ledger-Define
ledgers for general ledger accounting

Select new entries button


Ledger :M1 ( Text filed)
Ledger name :Non leading ledger for BIL
Totals table :FAGLFLEXT
Ledger :M2
Ledger name :Non leading ledger for BIL
Totals table :FAGLFLEXT
Save
Save in your request
Ignore the message press enter

Define and activate non-leading ledgers:


Same path

Give the ledger :M1


Enter

144
Select new entries button
Company code :BIL
Fiscal year variant :K4
Posting period variant :BIL
Save
Press enter to save in your request
Select back arrow

Give the ledger :M2


Enter
Select new entries button
Company code :BIL
Fiscal year variant :V6 (July to June)
Posting period variant :BIL
Save

Define ledger group:


Same path

Select ledger group :0L


Double click on ledger assignment folder
Select new entries button
Ledger :M1
Deselect representative ledger check box
Save
Ignore the warning message press enter
Press enter to save in your request

Define document types for entry view in a ledger

Path :SPRO-Financial accounting (new)-Financial accounting global settings (new) –Document –Document types –
Define document types for entry view in a ledger.

Give the ledger :M1


Enter
Select new entries button
Type Number range
SA 40 (give it any number range)
KR 40
DR 40
WE 40
WA 40
RE 40
RV 40
WI 40
AA 40
Save
Press enter to save in your request
145
Select back arrow

Give the ledger :M2


Enter
Select new entries button

Type Number range


SA 41
KR 41
DR 41
WI 41
WA 41
WE 41
WL 41
RE 41
RV 41
AA 41

Save

Define document types for general ledger view


Same path
Give the ledger :M1
Enter
Select new entries button
Type Number range
SA 45
KR 45
DR 45
WA 45
WI 45
WL 45
WE 45
RE 45
RV 45
AA 45
Save

Press enter to save in your request


Select back arrow

Ledger M2

Enter
Select new entries button

Type Number range


SA 46
KR 46
DR 46
WA 46
WE 46
WI 46
WL 46
RE 46
RV 46

146
AA 46
Save

Define document number ranges for entry view:

Path :Up to document the path is same – Document number rages –Documents in entry view –Define document
number ranges for entry view

Give the company code :BIL


Select change intervals button
Select interval button
No.range :40
Year :2009
From no. :1100001
To no. :1200000
Enter
Select interval button
No.range :41
Year :2008
From no. :1200001
To no. :1300000
Enter and save
Ignore the warning message press enter

Define document no.range for general ledger view:

Path :Up to document the path is same –Document no.rages –Documents in general ledger view –Define document
no.range for general ledger view

Give the company code :BIL


Select change intervals button
Select interval button
No.range :45
Year :2009
Form number :500001
To number :600000
Enter
Select interval button
No.range :46
Year ;2008
From number :600001
To number :700000

147
Enter & save
Ignore the warning message press enter

END USER AREA

Posting of transaction :

Path :Accounting –Financial accounting-General ledger –Posting –Enter general posting for ledger group (Tr code
is FB01L)

Give the document date :Today’s date


Type :SA
Ledger group :blank
Company code :BIL
Posting key :40
Account number :200100 Cash A/c
Enter
Give the amount :100000
Business area :BILH
Text :Equity share capital receipt
Posting key :50
Account no. :100000 Equity share capital
Enter
Amount :*
Business area :BILH
Text :+
Document –Simulate & Save
Document date :Todays date
Type :SA
Ledger group :0L
Company code :BIL
Posting key :40
Account no. :200100 Cash A/c
Enter
Amount :50000
Business area :BILH
Text :Equity share capital receipt
Posting key :50
Account no. :100000 Equity share capital
Enter
148
Amount :*
Business area :BILH
Text :+
Document –Simulate & Save

0L Leading ledger April 2008- March 2009 10th Period 105000 2008

M1 Non-leading ledger Jan 2009-Dec 2009 1st Period 105000 2009

M2 Nonleading ledger July 2008 –June 2009 7th Period 100000 2008

To view the ledger

Path :Accounting –Financial accounting –General ledger –Account –Display balances (new) (Tr cod is FAGLB03)

Account number :100000


Company code :BIL
Fiscal year :2008
Ledger :0L
Execute
Double click on balance 105000
To view the document
Select document no.check box
Select display document button
Select call up document overview button
Select back arrow 3 times
Select choose ledger button
Change the ledger to M1
Enter
Change the Fiscal year to 2009
Execute
Select back arrow
Select choose ledger button
Change the ledger to M2
Enter
Change the fiscal year 2008
Execute
Segments Creation

Scenario Future scenario


Company code :BIL Company code BIL

149
| |
Business area :HYD Segment HYD
| |
Profit centers :Cement, Steel Profit center Cement , Steel

In future there will not be any developments Segments will be assigned in the for Business areas
profit center

In case of automatic line items generation business


Area will not be picked up
Profit center –through derivation rules
Profit center is updated automatically segment also will be
updated.

Segment creation

Path :SPRO-Enterprise structure –Definition –Financial accounting -Define segment

Select new entries button

Segment Description
BGL Bangalore segment
HYD Hyderabad segment
Select save button or Ctrl+S
Press enter to save in your request

Assign segment in profit centers:

Path :Accounting –Controlling profit center accounting –Master data profit center –Individual processing change (Tr
code is KE52)

Profit center :select Steel


Enter
Segment :select HYD
Enter
Select activate button (Shift +F1)

One more profit center


Profit center :Cement
Enter
Segment :select HYD
Select activate button
DOCUMENT SPLITTING

In document splitting, line items are split according to selected dimensions –so that we can draw financial statements for
the selected dimensions at any time.

Eg: Profit Center wise, Segment wise

150
Sales
Party X Account Dr 100000
To Sales Steel 80000 Steel profit center
To Sales cement 20000 Cement profit center

Due to document splitting


Party X Account Dr 80000 Steel
Party X account Dr 20000 Cement
To Sales Steel 80000 Steel
To Sales Cement 20000 Cement

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 :BIL
Select with template button
Give the Gl A/c No. :300005 Sales local own goods
Company code :BIL
Enter
Change short text and GL account long text to sales Steel
Save
Select edit cot element button
Valid from 01.04.2008 to 31.03.9999
Enter
Cost element category :11 Revenues
Save

Second a/c
Give the GL A/c No. :300011
Company code :BIL
Select with template button
Give the GL A/c :300010
Company code :BIL
Enter
Change short text and GL a/c long text to sales Cement
Save

Select edit cost element button

151
Cost element category :11 Revenues
Save

GL A/c No. :100530


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

Classify G/L Accounts for document splitting:

Path :SPRO-Financial accounting (new)-General ledger accounts(new) –Business transactions –Document splitting-
Classify G/L accounts for document splitting

Give your chart of accounts :BIL


Enter
Select new entries button

Account from Account to Category Description


100000 299999 01000 Balance sheet account
300000 399999 30000 Revenue
400000 499999 20000 Expense
Save
Press enter to save in your request

Define Zero balance clearing account


Same path

Select account key :000


Double click on accounts folder
Chart of Accounts :BIL
Enter
Select new entries button
Give the G/L account :100530 Zero balance clearing A/c
Save
Press enter to save in your request

Activate documents splitting


Same path
Select document splitting check box

152
Save
Press enter to save in your request

END USER AREA

Posting of sales (F-22)

Give the document date :Todays date


Type :DR
Company code :BIL
Posting key :01
Customer Account :100000
Enter
Amount :80000
Business area :BILH
Text :Sales invoice posting
Posting key :50
Account :300010 Sales Steel
Enter
Business area :BILH
Text :+
Select profitability segment button (right arrow button profit center steel)
Ignore the warning message press enter
Give the profit center Steel
Select continue button

One more item

Posting key :50


Account no. :300011 Sales Cement
Enter
Amount :*
Business area :BILH
Text :+
Select profitability Segment right arrow button
Give the profit center :Cement
Select continue button
Document –Simulate
From the menu select Document –Simulate
General ledger button

153
Save
From the menu select Document –Display
Select general ledger View button

CENTRAL EXCISE AND SALES TAX

CIN: Country India Version

MM Consultant
SD consultant
FI consultant –Creation of accounts and assignment of accounts

Central excise is an Indirect Tax

This will be charged at the time of sales, sales men (Removal of goods)

Central excise registration :15 digits code

(10 digits will be income tax PAN + 5 digits central excise)

Central excise registration will be plant wise


Central excise rates are given in central excise tariff chapter IDs :8 digits code
Under chapter id we have material description and rate
Basic Excise Duty (BED) 14% maximum (now changed to 10%)
Additional excise duty (AED) –Products like textiles

15% of basic amount –Now no AED


Special Excise Duty (SED)- Tobacco related products
8% on invoice original value
Education cess 2% (on 8% excise duty)
Higher and secondary education cess 1% (on 2% ED)

CEN VAT (Central Excise Value Added Tax) –Earlier MODVAT

Where we pay excise duty at the time of purchase, the excise amount can be adjusted when we pay excise duty on sales
to excise dept.
(Though collected from customer)

RG23A Part 1 Quantity updation - Excise duty on consumable


Part 2 value updation - 100% CENVAT same year

RG23C Part 1 Quantity updation – Excise duty on Capita Goods


Part 2 value updation - 50% current year 50% next year

PLA Personal Ledger Account


Bank excise credits and debits

ER1 (Excise return 1) (Earlier it was RT12 monthly return)


To pay excise before 5th of next month
To file the return before 10th next month

154
RG1 Finished goods register

Purchase scenario:

Consumable purchase capita goods purchase (stores)

Basic price 100 200


Excise 8% 8 10% 20
---- ----
108 220
VAT 4% 4.32 8.8
----- ----
112.32 228.8

Goods receipt for consumables

A) Goods receipt entry

Inventory RM local DR 100


To GR/IR clearing RM LCL 100

B) Excise entry

RG 23 A BED DR 8
To CENVAT clearing 8

Invoice verification for consumables

GR/IR clearing RM LCL DR 100


CENVAT clearing A/c DR 8
VAT Receivable DR 4.32
To party 112.32

Goods receipt for capital goods

A) Goods receipt entry


Inventory stores local DR 200
To GR/IR clearing stores Local 200
B) Excise entry

RG 23C BED DR 10
CENVAT on hold DR 10
To CENVAT clearing a/c 20

Invoice verification for capital goods

GR/IR clearing stores LCL DR 200


CENVAT clearing a/c DR 20
VAT Receivable DR 8 .08
To party 228.08

Sales scenario
Basic price 1000
Excise rate 14% 140

155
-----
1140
VAT 12.50% 142.5
-------
1283

Sales billing :
Customer A/c Dr 1283
To Sales 1000
To CENVAT suspense 140
To VAT payable 142.50

Excise invoice creation


CENVAT suspense a/c Dr 140
To Excise duty payable 140

Excise Balances:

RG23A RG23C PLA


Purchase 8 10
Payable on sale 140
To pay 5 6 129

PLA Deposit
PLA A/c Dr 150
To Bank 150

Excise utilization
Excise duty payable DR 140
To RG23A BED 5
To RG23C BED 6
To PLA 129

10) Sales tax Payment to Dept

VAT Payable 143


VAT Receivable 13
To Bank 130

VAT Payable Dr 143


To VAT Receivable 13.10
To Bank 129

11) Final balances in excise registers

RG23A RG23C PLA


Purchase /Deposit 8 10 150
Utilized at the time of sale 5 6 129
-----------------------------------------------------------------
Closing balance 3 4 21
======================================
SAP:

156
Tax procedures TAXINJ: Formula based
TAXINN condition based

In new implementations –TAXINN


Client 000-SAP has given TAXINN and TAXINJ
Excise conditions /Service tax conditions / Education cess conditions /Sales tax conditions.

CENTRAL EXCISE CUSTOMIZATION

Activate Country Version India for specific fiscal year

Path :SPRO-Financial accounting –Financial accounting global settings –Tax on sales /purchases –Basic settings-
India-Activate country version India for specific fiscal years

Select position button


Component :select IND
Enter
For component IND select active check box
Save
Press enter to save in your request

Check and change settings for tax processing

Path :Up to tax on sales / purchases the path is same –Basic settings-Check and change settings for tax processing

Select new entries button


Process :B1
Description :A/P Basic Excise duty (A/P BED)
Tax type :select 2 (input tax)
Posting indicator :select 2 (separate line item)
Save
Press enter to save in your request
Select back arrow
Select process :B1
Select copy as button
Change the process to B2
Change the description :A/P CST
Posting indicator :select 3 (Distribute to relevant expense /revenue items)
Enter & Save
Select :B1,B2
Select copy as button
Change the process to B3
Change description to APVAT
Enter

157
Change the description to AR VAT
Other things are common
Press enter and Save
Change process to B5
Change description to AR CST
Change tax type to :1
Posting indicator :2 separate line item
Enter and Save
Select B5
Select copy as button
Change the process to B6
Change the description to AR VAT
Other things are common
Press enter & Save

Define condition types:

Path :Up to tax on sales /purchases the path is same -Basic settings-Check calculation procedure –Double click on
define condition types

Select new entries button


Condition type :BIL1
Description :AP Excise BED
Access sequence :select JTAX (IN: Excise Access)
Condition class :select D (Taxes)
Calculation type :select A (percentage)
Condition category :select D (Tax)
Select item condition check box
Save
Press enter to save in your request
Select back arrow
Select :BIL1
Select copy as button
Change the condition type change to :BIL2
Change the description to :APCST
Access sequence :Change to JST1 (India Sales tax access)
Enter & Save
Select :BIL2
Select copy as button

158
Change condition type to :BIL3
Change description :A/P VAT
Other things are common
Enter & Save

Define procedures

Path :Up to tax on sales /purchases the path is same –Basic settings –Check calculation procedure

Double click on define procedures


Select new entries button
Procedure :TAXINN
Description :Sales tax India
Save
Press enter to save in your request

Select :TAXINN
Double click on control data folder

Select new entries button

Step Condition Description From To Statistics Print Base Account


type type key
100 Select Base amount Select
BASB 362
110 Calculated 100 100 Select
cell static’s
check box
120 BIL1 AP Excise 100 100 Select B1
BED X
150 Basic 110 140 Select
+Excise static
check box

160 BIL2 A/P CST 150 150 Select B2


X
170 BIL3 A/P VAT 150 150 Select B3
X

Save

Assign country to calculation procedure

Path :Up to tax on Sales /Purchases the path is same –Basic settings –Assign country to calculation procedure

Select position button


Country :IN for India
159
Enter
For country IN assign procedure TAXINN
Save
Press enter to save in your request

Define tax codes for sales and purchases

Path :Up to tax on sales / purchases the path is same –Calculation –Define tax codes for sales and purchases (Tr code
is FTXP)

Give the country :IN


Enter
Tax code :V0
Enter
Give the description :0% Input tax
Tax type :V (input tax)
Enter
Save
Tax code :V1
Enter
Description :V1 Dummy tax code for purchases
Tax type :V for input tax
Tax percentage rate :0
Enter & Save
Tax code :A0
Enter
Description :0% output tax
Tax type :A ( out put tax)
Enter & Save
One more tax code
Tax code :A1
Enter
Description :Dummy tax code for sales
Tax type :A (Out put tax)
Enter & Save

Creation of GL masters (FS00)


To Copy

200156 RG23A BED A/c Current assets, Loans & Advances to copy 200155 VAT
receivable

200157 RG23C BED A/c Current Assets, Loans and Advances to copy 200155 VAT

160
receivable

200158 CENVAT on hold Current Assets, Loans and Advances to copy 200155
VAT receivable

200159 PLA Account Current Assets, Loans & Advances to copy 200155 VAT
Receivable

200155 VAT receivable already created

100506 CENVAT A/c clearing current liability provision copy 100505 VAT payable

100507 CENVAT A/c suspense current liability & provisions copy 100505 VAT payable

100508 Excise duty payable A/c current liability & provision copy 100505 VAT payable

100509 CST payable A/c current liabilities & provision X copy 100505

100505 VAT payable already created

Save

Note :In all accounts tax category * posting without check box

Define tax accounts

Path :Up to tax on sales /purchase the path is same posting –Define Tax accounts (Tr code is OB40)

Double click transaction B1 A/P Excise BED


Give the chat of accounts :BIL
Enter
Save
Select posting key button
Debit 40
Credit 50
Save
Press enter to save in your request
Select accounts button
Give the account no.100506 CENVAT clearing A/c
Save
Press enter to save in your request
Select back arrow
Double click on transaction B3 APVAT
Save
Select posting key button
Debit 40
161
Credit 50
Save
Press enter to save in your request
Select accounts button
Give the A/c no.200155 VAT receivable
Save
Press enter to save in your request

Maintain excise registration

Path :SPRO-Logistic general –Tax on goods movements –India –Basic settings –maintain excise registrations

Select new entries button


Excise registration :2
(ECC number means excise control code)
ECC no. 1234
Excise Registration no.(15 digits code)
(10 digits PAN other 5 Excise no.) :123456
Excise range :Kukatpally range
Excise division :Kukatpally division
Commissionerate :Hyderaba commissionerate
Excise invoice items(EI) :999
Select partial credit check box
Save
Press enter to save in your request

Maintain company code settings


Same path

Select new entries button


Select company code :BIL
Select details button
CENVAT document type :SA
Utilization FI document type :SA
Select debit account override check box
Select auto adjustment indicator check box
Select immediate credit on capital goods check box
First month “select April
Excise selection days :30 days
162
No.of excise invoice selection :999
Excise invoice selection procedure :FIFO
Save
Press enter to save in your request

Maintain plant settings:


Same path

Select new entries button


Plant :BILP
Excise registration :002 (This is plant level)
No.GRS per Excise invoice :select Multiple goods receipt multiple credits
Save

Maintain excise groups:


Same path

Select new entries button


Excise group :2
Description :Excise group for BILP
Plant :BILP
Excise registration :2
No.GRS per excise invoice multiple goods receipts, multiple credits
Select default challan quality in GR check box
Select EI capture check box under MIGO settings
Select post excise Invoice MIGO check box
Select duty different at GR check box
Select update RGI at MIGO check box
Save
Press enter to save in your request
Note :MRO –Invoice verification

Maintain series groups


Same path
Select new entries button
Series group :2
Series description :BILP series group
Excise registration :2
Save
Press enter to save in your request

Maintain excise duty indicators:


Same path
Select new entries button
Excise indicator 1 :100% Tax
Excise indicator 2 :50% Tax
Excise indicator 3 :Nil Tax
Save
163
Press enter to save in your request

Maintain excise defaults:

path :Up to India the path is same –Basic settings –Determination of excise duty –maintain excise defaults

select new entries button


Tax procedure :TAXINN
CVD condition JCV1:
A/P BED condition type :BIL1
A/R BED condition type :BILA
BED percentage :BIL 4
Save
Press enter to save in your request

Maintain chapter ID’s:(8Digists excise code)

Path :Up to India the path is same –Master data –Maintain chapter Id’s

Select new entries button


Chapter ID :50000001
Unit of measurement for excise kg
Description as per law :Chemicals
Save
Create request in your Work Bench Request for BIL
save
Select next entry (F8) button
Chapter ID :55000001
Unit of measurement for excise kg
Description as per law Steel
Save

Specify G/L Accounts per excise transaction

Path :Up to India the path is same –Account determination –specify GL accounts per excise transaction

Select new entries button


Excise group :select 2
Excise transaction type :GRPO (Excise Invoice for goods receipt against PO)
Company code :BIL
Chart of Accounts :BIL
RG23A BED :200156
RG23C BED :200157
MODVAT clearing :100506 (CENVAT clearing )
G/L account per PLA BED :200159
CENVAT on hold :200158
CENVAT suspense account :100507
PLA on hold :200159
164
Save
Press enter to save in your request
The same way the you send the accounts for all excise transaction types.
For excise transaction type DLFC same as above
Save
Note : PLA on Hold Dr
To Bank

PLA A/c Dr
To PLA on Hold A/c
(This is used for next year carry forward)

Specify SAP Script forms

Path :Up to India the path is same –Business transactions –Excise registers –Specify SAP script forms

Select all the registers of company Code :IN01


Select copy as button
Change the company code to BIL for Registers and returns
Save press enter to save in your request

Maintain number ranges


Path :Up to India the path is same –Tools-Number ranges

Object :Select J_1IINTNUM (Internally document number to be generated )


Select number rages button
Select change intervals button
Select interval button
Number rage :01
Year :2008
From no. :1
To no. :100000
Save
Ignore the message press enter
Select back arrow two times
Object :Select J_1IRG23A1 (RG23A part 1 no. range object)
Select number rages button
Excise group :select 2
Select change intervals button
Select interval button
No. range :01
Year :2008
From number :100001

165
To number :200000
Enter & save
Ignore the warning message press enter
Select back arrow two times
Object :J_1IRG23A2 This is (RG23A part II Number rage object)
Select number rage button
Excise group :2
Select change intervals button
Select interval button
No.range :01
Year :2008
From no. :200001
To no. :300000
Enter & save
Ignore the warning message press enter
Select back arrow two times
Select object J_1IEXCLOC (Local excise invoice number rage for sales)
Select number ranges button
Series group :2
Select change intervals button
Select interval button
No.range :01
Year :2008
From number :300001
To number :400000
Enter & Save
Ignore the warning message press enter
Select back arrow two times
Select object :J_1IINTPR2 despatch series number
Select number ranges button
Excise group :2
Select change intervals button
Select interval button
No.range :01
Year :2008
From no. :500001
To no. :600000
Enter & save
166
Ignore the warning message press enter

Excise rates maintenance

Use the Tr code is J1ILN (India local menu) (This have no path)

Path :Indirect taxes -Master data -Excise rate maintenance (Tr code is J1ID)

Select material & chapter ID combination radio button


Select maintain button(F5)
Select new entries button
Material :BILRM1
Plant :BILP
Chapter ID :5000001 Chemicals
Material type :Raw materials
GR with reference :select multiple goods receipt , multiple credits
Declared :1
Declaration date :29.02.2008

One more
Material :BILFG
Plant :BILP
Chapter ID :5500001 Steel
Material type :RG1
GR with reference :Multiple goods receipts, Multiple credits
Declared :1
Declaration date :29.02.2008
Save
Select back arrow
Select CENVAT determination radio button
Select maintain button
Select new entries button

Give the plant :BILP


Input material :BILRM
Output material :BILFG
Intimation date :01.04.2008
Save
Select back arrow
Select vendor excise details radio button

167
Select maintain button
Select new entries button
Vendor :2001
Excise indicator for vendor :1 ( 100% Tax)
Type of vendor :select manufacturer
Save
Select back arrow
Select customer excise details radio button
Select maintain button (F5)
Select new entries button
Give the customer no. :200101
Excise indicator for customer :select 1 (100% Tax)
Save
Select back arrow
Select excise indicator for plant radio button
Select maintain button
Select new entries button
Company code :BIL
Plant :BILP
First month :select April
Excise indicator for company :select 1 (100% Tax)
Save
Select back arrow
Select excise indicator for pant and vendor radio button
Select maintain button
Select new entries button
First column excise indicator :select 1
Second column excise tax indicator for vendor :select 1 (100% Tax)
Third column excise tax indicator for vendor :Select 1 (100% tax)
Save
Select back arrow
Select excise indicator for plant & customer radio button
Select maintain button
Select new entries button
First column excise tax indictor for company :select 1 (100% tax )

Second column Excise indicator for vendor :Select 1 (100% tax)


Third column excise tax indicator vendor :select 1 (100% tax)
168
Save

Creation of condition records


(FV11) (No path this one)

Condition type :select BIL1 AP Excise basic


Select key combination button
Select plant /vendor /material radio button
Enter
Plant :BILP
Vendor :2001
Material :BILRM1
Amount :8 (Excise rate & Tax rupees)
Valid from :01.04.2008
Valid to :31.03.2009
Tax code :V0
Save
Select back arrow
Condition type :BIL3 A/P VAT
Select key combination button
Select plant /vendor /Material radio button
Plant :BILP
Vendor :2001
Material :BILRM1
Amount :4
Valid from :01.04.2008
Valid to :31.03.2009
Tax code :V0
Save

SD Excise customization

SD consultant job

Define condition types

Path :SPRO-Sales & Distribution –basic functions –Pricing –Pricing control –Define condition types

Double click on maintain condition types


Select new entries button
Condition type :BIL4
Description :A/R Basic excise duty (AR BED)

169
Access sequence :JEXC (India Excise Access)
Plus/ Minus :Select A Positive
Condition class :select A discount or Surcharge
Calculation type :select A (Percentage )
Select Item condition check box
Select amount /percentage check box
Save
Press enter to save in your request
Select back arrow
Select :BIL4
Select copy as button
Change the condition type to BILA
Description A/R Excise BED (100% copy)
Access sequence :select JDUM (India 100 copy of other fields are values)
Enter & Save
Select BIL4 & BILA
Select copy as button
Change condition type to BIL5
Description :A/R CST
Access sequence :select JCST (India Central Sales Tax :Access)
Plus / Minus : Blank
Calculation type :A (Percentage)
Condition class :change to D (Taxes)
Condition category :select D (Tax)
Enter
Change the condition type to BIL6
Description :AR VAT
Access sequence :change to JLST (India Local sales tax access)
Plus or Minus :Blank
Calculate type : A (Percentage)
Condition class :select D taxes
Condition category :select D tax
Enter & save

Define account keys:

Path :SPRO-Sales & Distribution –Basic functions –Account assignment/costing –Revenue account determination –
Define and assign account keys –Double click define account key

Select new entries button

170
Account key :B4
Name :A/R Excise BED

Account key :B5


Name :AR CST

Account key :B6


Name :AR VAT
Save
Press enter to save in your request

Check and change settings for tax processing

Path :SPRO-Financial accounting –Financial accounting global settings –Tax on sales /Purchases –Basic settings –
Check and change settings for tax processing

Select B2 and B3
Select copy as button
Change the process to B5
Change the description to A/R CST
Tax type :select 1 (Output tax)
Posting indicator :select 2 (separate line item)
Enter
Change process to :B6
Change the description to A/R VAT
Tax type :change to 1 Output tax
Enter & save
Save in your request

Define tax accounts:

Path :up to Tax on sales /Purchases the path is same –Posting –Define tax accounts (Tr code is OB40)

Double click on truncation :B5 AR CST


Give your Chart of Accounts :BIL
Enter
Save
Select posting key button
Debit :40
Credit :50
Select save button
Press enter to save in your request

Select accounts button


Give the account no.100509 CST (payable)
Save
171
Press enter to save in your request
Select back arrow
Double click on transaction :B6 ARVAT
Save

Select posting key button


Debit :40
Credit :50
Save
Press enter to save in your request
Select accounts button
Give the account no.100505 VAT payable
Save
Press enter to save in your request

Maintain pricing procedures

Path :SPRO-Sales & Distribution –Basic functions –Pricing –pricing control –Define and assign pricing procedures

Double click on maintain pricing procedures


Select new entries button
Procedure :BIL
Description :BIL domestic Pricing procedure
Save
Press enter to save in your request

Select :BIL
double click on control data folder
Select new entries button

Step Condition Description From To Require Statistics Print Account


type key
100 PR00 Price Select X ERL
Check
box (√)
Subtotal 100 100 Select Select
Check Check
box (√) box (√)
200 BIL 4 A/R Basic 100 100 B4
excise duty

210 Basic 100 200 Select


+Excise Check
box (√)
172
400 Base value 100 -- Select
Check
box (√)
410 BILA A/R BED 200 200 Select X
(100% copy) Check
Basic box (√)
+Excise
420 400 410 Select
Check
box (√)
450 BIL5 AR CST 420 X B5
460 BIL6 AR VAT 420 X B6
500 Basic 420 460 Select
+Excise+ Check
Sales tax box (√)
Save

Define pricing procedure determination

Path :Up to pricing control the path is same –Define and assign pricing procedures ( Tr code is OVKK)

Double click on define pricing procedure determination


Select position button
Sales organization :BILS
enter
For BILS change the pricing procedure to BIL
Save
Press enter to save in your request

Define tax determination rules

Path :SPRO-Sales and Distribution –Basic functions –Taxes –Define tax determination rules

Select new entries button


Tax country :IN
Sequence :1
Tax category :BIL5

Tax country :IN for India


Sequence :2
Tax category :BIL6 Name:A/R VAT
Save
Press enter to save in your request

Define tax relevancy of mater records:


Same path
Double click on customer taxes
Select new entries button

Tax category Name Tax classification Description


BIL5 A/R CST 0 Nil Tax
BIL5 A/R CST 1 Taxable
BIL6 A/R VAT 0 Nil Tax
BIL6 A/R VAT 1 Taxable
173
Save
Press enter to save in your request

Select back arrow


Double click on material taxes
Select new entries button

Tax category Name Tax classification Description


BIL5 A/R CST 0 Nil Tax
BIL5 A/R CST 1 Taxable
BIL6 A/R VAT 0 Nil Tax
BIL6 A/R VAT 1 Taxable

Save
Press enter to save in your request

Assign delivering plants for tax determination (OX10)


Same path

Select position button


Plant :BILP
Enter
Select plant :BILP
Select details button
Select address button(Shift +F5)
Region :select AP (Andhra Pradesh)
Enter & Save
Press enter to save in your request

Assignment of accounts for automatic postings


Tr code is VKOA

Double click on Table 1


Select new entries button
Application area :V
Condition type :KOFI
Chart of Accounts :BIL
Sales organization :BILS
Account assignment group for customer :01 domestic revenues
Account assignment group for customer :03 finished goods

Account assign group for account key :B4 AR Excise duty


GL Account 100507 (Send VAT suspense account)
Save
Press enter to save in your request

SD END USER AREA

Assign tax classification material master (Tr code is MM02)

174
Give the material no.BILFG
Press select view button
Select sales :sales organization data 1
Select organization levels button
Plant :BILP
Sales organization :BILS
Distribution channel :BD
Enter
For tax classification tax category BIL5 0 taxable
For tax classification tax category BIL6 1 taxable
Save

Enter tax classification in customer master (Tr code is XD02)

Select the customer :200101


Company code :BIL
Division :BS
Select customer sales area button
Double click on sales organization :BILS
Enter
Select sales area data button
Select billing documents tab
For tax category :BIL6
Tax classification :1 (taxable)
Save

Creation of condition records (Tr code is VK11)

Condition type :select BIL4 A/R basic excise duty


Select key combination button
Select material radio button
Enter
Sales organization :BILS
distribution channel :BD
Material :BILFG
Amount :10
Valid from to :01.04.2008
Valid to :31.03.2009
Save

175
Select back arrow
Select condition type BILA (A/R BED 100% copy)
Select key combination button
Select sales organization radio button
Enter
Sales organization :BILS
Amount :100
Valid from :01.04.2008
Valid to :31.03.2009
Save
Select back arrow
Condition type :select BIL6 AR VAT
Select key combination button
Select country /Plant/Region /Material radio button
Enter
Country :IN
Plant :BILP
Region :AP
Material :BILFG
Amount :4 (Percentage)
Valid from :01.04.2008
Valid to :31.03.2009
Tax code :select A1 (Dummy tax code for sales)
Save

To check whether 0% input tax code and 0% output tax code assigned to company code to BIL

Path :SPRO-Financial accounting –Financial accounting global settings –Tax on sales /Purchases -posting -Assign
tax codes for non taxable transactions(OBCL)

Select position button


Company code :BIL
enter
For company code :BIL
Input tax code :V0
Output tax code :A0
Company code :BIL
enter
For company code :BIL
Input tax code :V1
176
Output tax code :A1
Save
Press enter to save in your request

Creation of Purchase order (ME21N)

Purchase org :BILR


Company code :BIL
Vendor :2001
Enter
Give the purchasing group :BIL
Item :10
Material :BILRM1
PO Quantity :100 Kgs
Net price :75
Currency :INR
Plant :BILP
Enter
Select invoice tab
Tax code :select V1 dummy tax code for purchases
Enter
Select Taxes button
Select back arrow
Save
Not the purchase order no.4500017094

To open material periods for January (MMPV)

From company code ;BIL


period :10
Fiscal year :2008
Select check and close period radio button
Execute
Ignore the warning message press enter

(Note : Use the Tr code J1EI for creation of Excise Invoice no’s following the other steps same above)
Give the Excise invoice no. and date

Goods receipt ( Tr code is MIGO)


Select goods receipt
Give the purchase order no.4500017094
177
Enter
Quantity in delivery note :100 kgs
Select item ok check box
Select where tab
Storage location :HYD
Press enter
Select excise invoice tab
Give the excise invoice no.1
Excise invoice Date :Today’s date
Save
Select display button
Enter
Select document information tab
Select FI documents button
Select back arrow
Select excise invoice tab
Select more data button
Select part 2 tab
Select accounting document no.

Invoice verification (MIRO)

Invoice date :05.01.2009


Posting date :11.01.2009
Reference :51
Select calculate tax check box
Text :Invoice verification
Tax code :V1 (Dummy tax code)
Purchase order no. :4500017094
Enter
Give the amount :8424
Enter
Business area :BILH
Select payment tab :Base line date (Today’s date)
Payment term :0001
Enter & Save
From the menu select invoice document display
Select follow on documents button
To print excise registers: (Tr Code is J1ILN)
178
Path :Indirect taxes –Registers –Excise tax –Extract (J2I5)

Excise group :2
Start date :01.01.2009
End date :31.01.2009
Select any register radio button
Select RG23A part I check box
Select RG23A part II check box
Execute
Enter
Select back arrow
Select print utility program (TR code is J2I6)
Select RG23A part 1 radio button
Execute

Excise group :2
Start date :01.01.2009
End date :31.01.2009
Execute
Output device :LP01
Select print preview button
Select back arrow two times
Select RG23A part II radio button
Execute
Excise group :2
Start date :01.01.2009
End date :31.01.2009
Execute
Output devise :LP01
Select print preview button

To view sales tax register (Tr code is J 1 I L N)

Indirect taxes –Registers –Sales tax –sales tax register (J1I2)

Company code :BIL


Tax code :V1
LST condition type :BIL3
Execute

179
SD EXCISE

Creation of sales order (VA01)

Order type :OR


Sales organization :BILS
Distribution channel :BD
Division :BS
Enter
Sold to party :200101
PO Number :2
PO date :Today’s date
Required delivery date :Today’s date
Delivery plant :BILP
Payment terms :0001
Item :10
Material :BILFG
Order quantity :10 Kgs
Enter
Ignore the message press enter
Select item :10
From the menu select GotoItem conditions
From the menu select Edit –In complication log (Ctrl +F8)
Select save button
Note the sales order no.11771

Delivery (Tr code is VL01N)

Give the shipping point :BILH


Order no. :1171
Enter
Actual goods inward received date :Today’s date
Select item :10
Select picking tab
Picked quantity :10 Kgs
Select post goods issue button
From menu select out bound delivery –Display
Enter
From the menu select Environment-Document flow

180
Keep the cursor on go goods delivery no.
Select display document button
Select accounts document button
Select account document no.

Post : Inventory FG 700


IN/DE Stock FG 700

Sales Billing (VF01)

Select the delivery no.


Select execute button
Save
From the menu select billing document –display
Select accounting button
Select accounting document no.

Excise invoice creation (Tr code is J1ILN)

Path :Indirect taxes –Sales /Out bond movements-Excise invoices –For sales order –Out going Excise invoice
create /Change /Display (Tr code is J1IIN)

Select from billing button (F5)


Enter
Excise group to :2
Serious group :2
Select utilization button (F6)
Save
Ignore the warning message press enter

CENVAT suspense A/c Dr


To Excise duty payable

Go and see sales billing display (VF03)

Give the billing document no.90036108


Select accounting button
Select accounting document no.

RG23A BED posting (F-02)

Give the document date :Today’s date


Type :SA
Company code :BIL

181
Posting key :40
Account no. :200156 (RG23A BED)
Enter
Amount :50000
Business area :BILH
Text :RG23A Debit
Posting key :50
Account no. :200105 Bank account
Enter
Amount :*
Business area :BILH
Text :+
Document –Simulate & Save

PLA Deposit (F-02)

Give the document date :Today’s date


Type :SA
Company code :BIL
Posting key :40
Account no. :200159 (RG23A BED)
Enter
Amount :100000
Business area :BILH
Text :PLA deposit
Posting key :50
Account no. :200105 Bank account
Enter
Amount :*
Business area :BILH
Text :+
Document –Simulate & Save

Excise duty payment: (Tr code is (J1ILN)

Path :Indirect taxes –Sales /Out bond movements –fortnightly payment (J2IUN)

Company code :BIL


182
Plant :BILP
Excise group :2
Period :01.03.2009 to Today’s date
Business area :BILH
Execute
RG23A Utilized :6.60
Select duty button
Select Simulate button (F7)
Select right mouse button
Select continue button
Save

Go and see the document (FB03)

Document no. :38


Company code :BIL
Fiscal year :2008
Enter

FINANCIAL STATEMENT VERSION

Balance Sheet and Profit & Loss account format creation

In India –Companies Act –Schedule VI format

Summary Schedules Amount

Share capital
Equity share capital 100000
Preference share capital 100001
Reserves & Surplus
General Reserves 100101
Capital Reserve 100102
Secured loans
Unsecured loans

By using 0-9 levels –we can get all 3 versions consultant creates 2 versions –Summary -Schedules

In 000 Client SAP has given for India Bain.

Path :SPRO-Financial Accounting –General ledger Accounting-Business transactions-Closing –Document-Define


financial statement versions.

Select new entries button


Financial statement version :BIL1
Name Balance Sheet and Profit & Loss account
183
Maintain Language :EN
Select item keys automatic check box
Chart of Accounts :BIL
Save
Press enter to save in your request
Select financial statement item button
Keep the cursor on AML1
Select create items button
Give the items :Balance Sheet
:Profit & Loss account
:Net profit /Loss transfer to Balance Sheet
Enter
Kept the cursor on profit and loss account
Double click on No text exists against Liability +Equity
Give item :Liabilities
Enter
Double click no text exists against Assets
Give the item Assets
Enter
Keep the cursor on Assets
Press select button (beside reassign button)
Keep the cursor on Balance sheet
Select resign (Shift+F6) button
Select subordinate radio button
Enter
Keep the on liabilities
Press select button (F9)
Keep the cursor on Balance Sheet
Select resign button (Shift+F6)
Select subordinate radio button
Enter
Keep the cursor on Profit & Loss account
Select create item button
Give the items :Income
Give the items :Expenditure
Enter
Save
Press enter to save in your request
184
Keep the cursor on Liabilities
Select create items button
Give the Share capital
Reserves & Surplus
Secured loans
Unsecured loans
Enter
Keep the cursor on Assets
Select create items button
Give the items :Net Fixed Assets
:Net Current Assets
:Misc. expenditure to the extent not written off Eg: Preliminary exp.
Enter
Keep the cursor on Income
Select create items button
Give the heads :Sales
:Other Income
:Inc/Dec in Stocks
Enter
Keep the cursor on expenditure
Select create item button

Expenditure :
Raw material consumption
Personnel expenses
Manufacturing expenses
Administration Expenses
Interest
Depreciation
Enter and Save
Double click no text existent against net result :Profit
Give the item :Net profit transferred from P & L Account
Enter
Keep the cursor on Net profit transfer from P & L Account
Press select button (F9)
Keep the cursor on reserves & Surplus
Select reassign button (shift +F6)
Select subordinate radio button
185
Enter
Double click on no text exists against net result loss
Item :Net loss transferred from P & L Account
Enter
Keep the cursor on net loss transferred from P & L Account
Press select button (F9)
Keep the cursor on Misc. Expense to extend not written off
Select reassign button
Select subordinate radio button
Enter
Save

Assignment of accounts are to be assigned to the last note

Keep the cursor on Share Capital


Select assign accounts button
Enter
From Account :100000
To Account :100099
Select debit check box
Select credit check box
From Account :100101
To :199999
Select debit check box
Select credit check box
Note :Expect 100000 all are same
Enter
Keep the cursor on net fixed assets
Select assign accounts button
From Account :200000
To Account :299999
Select debit check box
Select credit check box
Enter
Keep the cursor on sales
Select assign accounts button
From account :300000
To account :399999
186
Select debit and Credit check box
Enter
Keep the cursor on Raw material consumption
Select assign account button
From account :400000
To account :499999
Select Debit and Credit check box
Enter
Keep the cursor net profit/loss transferred to Balance Sheet
Select Assign account button
From account :100100
Select Debit & Credit Check box
Enter & Save
To check whether all accounts assigned or not
Select check button
Select non assigned account check box
Enter & Save

Liabilities Amount
Sources of Funds:
100000
100001
100002
Share capital 100003
------- X
100100
100101
Reserves & Surplus 100102
Secured loans X
Unsecured loans X
------
Total Liabilities X
=====
Double click on liabilities
Start of group Liabilities
End of group total liabilities

Select display total check box


Enter
Double click on share capital
Start of group :Source of funds
End of group :Share capital
Select display totals check box

187
Enter
Double click on Reserves & Surplus
End group :Reserves & Surplus
Select display total check box
Enter
Note :Same way secured and unsecured loans
Double click on assets
Start of group :Assets
End of group :Total Assets
Select display total check box
Enter
Double click on Net fixed Assets
Start of group :Application of funds
End of group :Net fixed Assets
Select display total check box
Enter
Double click on Misc. expenditure to extend not written off
End group Misc. expenditure to the expend not written off
Select display totals
Enter
Double click on Profit & Loss Account
End of Group :Net Profit /Loss for the year
Select display total check box
Enter
Double click on Income
Start of group :Income
End of Group :Total Income
Select display total check box
Enter
Double click on sales
End of Group :Sales
Select display total check box
Enter
Double click on Expenditure
Start of group :Total expenditure
Select display total check box
Enter
Double click on Raw material consumption
188
End of group :Raw material consumption
Select display total check box
Enter
Double click on net profit /Loss transferred to Balance sheet
Start of group :Net Profit /Loss transferred to balance Sheet
Select display total check box
Enter
Double click on No text exist against P & L result
Item :Net profit/Loss transferred to Balance Sheet
End of Group: Net profit/Loss transferred to Balance Sheet
Select display total check box
Enter & Save

Open one more session :

Path :Accounting-Financial Accounting –General Ledger-Information system—General Ledger reports-Balance


Sheet/Profit loss Statement /Cash flow-General –Actual/Actual comparisons- Balance sheet/Profit Loss Statement
(S_ALR_87012284)

Company code :BIL


Business area :BILH
Financial Statement version :BIL1
Reporting year :2008
Reporting period :1 to 16
Comparison year :2007
Comparison periods :1 to 16
Select classical list radio button
Select special evaluations tab
Balance sheet type :1 (Standard Financial Statement )
Select output control tab
Company code summarization :Select 1 (Balance sheet per company code)
Business area summarization :select 1(Balance Sheet per business area)
Summary report :3
Comparison type :1

Note :2 types of comparison in SAP


2008 2007
Sales 100 75
1) Percentage of Increase Current year –Previous year *100
----------------------------------
Previous year
100-75/75*100=33.3

189
2) Percentage of growth :Current year *100
--------------------
Previous year
100/75=133

Scaling :5/2

Scaling note :
A) Only Rupees without paise 0/0
B) Rupees with paise 0/2
C)Rupees in lakhs –without decimals 5/0
D)Rupees in mission without decimals 6/0
E)Rupees in crores without decimals 7/0
F)Rupees in laksh –Thousands in decimals 5/2

Sales 987654321.55
Rupees in lakhs (100000) 5 Decimals

2 decimals 2 decimals 9876.54

Select execute button


Select back arrow
Select special evaluations tab
Give the display currency dollar execute

ASSET ACCOUNTING REPORTS:

1.Depreciation forecast

Path :Accounting –Financial accounting –Fixed assets –Information system –Reports on asset accounting –
Depreciation for cost –Depreciation on capitalized assets (Depreciation simulation) (Tr code is S_ALR_87012936)

Give the company code :BIL


Report date :31.03.2011
Execute

2. Fixed asset schedule as per schedule VI of companies Act

Gross Addition Sales Gross Dep.for Acc.Dep.in Dep.for Dep on Acc.Dep Net Net block
block in s during /Transfer block the the the sales in the block in the
the the year s during in the year beginning year /Transfer year in the beginning
beginnin the year year end of year year
g year end end

Information systems –Accounting –Financial accounting –Fixed assets –Asset History sheet (Tr code is AR02
190
Give your company code :BIL
Report date :31.03.2009
Select group totals only radio button
Execute

(Note :Retirement mean sale of asset)

Select asset button


Double click on asset retirement

PROJECT

BIL group (to go for ERP)


Packages available Cost / Feature/Time

ERP Packages
SAP
Oracle Financials
JD Edwards
People soft

Decided to go for SAP –Consulting firms Cost/Support /Experience

1) WIPRO
2) Infosys
3) Satyam
4) Intell
5) Zensar

Buy SAP package from SAP-India –Bangalore with the support of WIPRO –Hyderabad vendors.

Implement all the modules at all locations (BIG Bang project) or in a phased manner

BIL WIPRO
A) Project Manager A) Project Manager
B) Accounts Manager B) FI Consultant
C)Cost Accountant C)Co Consultant
D) Purchase Manager D)MM Consultant
E) Sales Manager E)SD Consultant
F)IT Staff F) BASIS Consultant
G) ABAP Programmers

Kick of Date means Start date

Form a staring committee

BIL Senior people


WIPRO Senior people

191
Project Mangers BIL and WIPRO

BIL core team members –As is process existing process and requirements from SAP

WIPRO- Study the process and prepare to be process

GAP reports –Write to SAP the requirement /through programmer/work around /user exits.

WIPRO-Customization based clients requirement .


BIL core team –Testing
WIPRO –Customization document

Before going live


Training to the BIL company users will be given

Fix ago live date:


Customization will be transported from development client to production client.

Up load masters in production client

Upload balances in production client

Give the number ranges in production client.

On go live date :Enter transactions in production client.

Support: For the issues raised by BIL end users.

Rollouts : Implementing SAP in different locations afterwards

ASAP Methodology (ASAP –Accelerated SAP)


1. Project Preparation
2. Business blue print
3. Realization
4. Final preparation
5. Go and live and support

OSS mean Online Support Service

Land Scape
1. Development  Quality testing  Production
Send box –All scenarios  configuration selected scenario Testing

2. Development  Production

R/ 3 Structure
Presentation application data base SAP Package data stored in data base server

192