Finance 10=2+8 (Free Defind Currency) Inventory Valuation /Material Ledger

AUD Co. Co Currency 10 Co. Co Currency

Group / Profit Center /

USD Group Currency 30 Controlling Area Currency
Hard Currency
AUD Index Currency
Global Co. Currency

OY01 Other Currency type setup

Hard Currency
Index Currency

Material Type Price Control Acct. Ref Valuation Class

Raw Material ROH V (PUP) 0001 RM0
Semi Finished Goods HALB S (SP) 0008 RM1
Finished Goods FERT 0009 RM2

Number Range
BP
RM RM0001 RM9999 0

Price Control "V" Price Control "S"

Inventory Dr BSX Inventory Dr BSX
GRIR Cr WRX Price Diff Dr PRD
GRIR Cr WRX

KOFI MTS
KOFA MTO

Material Cost
Conversion Cost
Overheads Cost

MTS (Make to Stock) MTO (Make to Order)

Discrete Mfg Repetative Mfg Discrete Mfg

Sales Area = Sales Org*Dis. Channel*Division

Material Ledger 3=2+1(Free Defind currency) Cost Object
4 IO,WBS, CC,etc
10 AUD Co. Co Currency

30 USD SCC4 Group Currency

40 EUR Transaction Currency
50 INR Target Currency / Reorting Currency
60 GBP (Company code currency)

GL Group Code (Plant+CC+COA)

RMA0

MM01
BS-A
BS-L
KSPI = KP06/KP26
MM01
BS-A
BS-L

MM01

P&L
BS-A
 BS-A
P&L

ETO (Engineering to Order)

Discrete Mfg
 RPC0
4 Currency RPP0

10 AUD RPo0

30 USD

MM Cycle

CO01

P&L
Purchase Order BS-L
100
Inventory Dr BSX MIGO-101 100 "F" - Indicator
GR/IR Cr WRX 100 BS-L

110 Price Control "V"

Inventory Dr BSX MIGO-101 110
GR/IR A/c WRX 110

110 Price Control "S"

Inventory A/c BSX 100
PRD A/c PRD 10
GR/IR A/c WRX 110

GI to Production
RM/SFG Consump GBB-VBR MIGO 261
Inventory Cr BSX
GR with respect to Production Order
Indicator V
Inventory Dr BSX MIGO 101
COGM /Factory CGBB-AUF

Price Contrl "S"

Price Diff A/c Dr PRD-PRF
COGM /Factory CGBB-AUF
Production Cycle

Production Order
FM/SFG issue to Prodcution order MIGO-261
RM/SFG Consumption DGBB-VBR
Inventory A/c BSX

GR with respect to Production Order MIGO-101

Inventory FG A/c BSX
COGM/ Factory/ ChangeGBB-AUF
 Sq Mains
1
Material Cost
2
3
4
Conversion Cost
5
6
7
8
9
10 OverHeads
11
12
13
14
15
16 Others
17
18

Primary Cost Component Split (PCC)

If the client doesn't want to add Indirect Material, Indirect Labour, Indirect Overheads in Costing sheet, T

Splitting Structure - OKES

used for 3 functionalities
1 Primary Cost Compnent Split
2 Activity Independent Planning
3 Activity Independent & Dependent Actual

Cost Center Planning

KP26 Cost Center with Activity Planning
KP06 Cost Center with Cost Element wise Planning - (wil be obsolete from 2023)
OKES Splitting Structure Configuration
OKEW Assignment of Splitting Structure to CC
KSS4 Splitting Structure Execution
KSPI Cost Center with Activity Type Rate Planning Execution
KP26 Cost Center with Activity Planning

Cost Center A.Type

RMA0-C01 FUEL
RMA0-C01 LAB
RMA0-C01 MACH
RMA0-C01 POWER
RMA0-C01 QC
RMA0-C01 RM

Quality Control Cost

Repairs and Maintenance

Material Overhead
Research & Development

Components

Material Ledger

If there's frequent changes in price of Material then use Price Control "S' in Material Master
If there's no changes in price of Material then use Price Control "V' in Material Master
 RM
RM2
FG

*For FG material under Accounting 1 tab,

**Valuation Class is for Mate to Stock scenario

***Vc: Sales ord. stk is for Make to Order scenario

**** Project Stock Vc is for Engineer to Order scenario

1 Material Creation

2 BOM Creation
3 Resource
4 Master Receipe
5 Production Version
 Simultaneous Cost
Goods Issue
Activity Confirmation
Goods Receipt

Planned Cost
Preliminary Cost
Simultaneous Cost
Target Cost (Planned Cost)
Applied Cost
Over/ Under Absorption Cost

Planned Activity Rate Calculation

1 Process Order
2 Good Issue RM
Material Consumption A/c
Inventory A/c
3 Activity Confirmation
4 Goods Receipt
Inventory A/c Dr
COGS A/c
5 Template Allocation / Costing
6 Overheads Calcualtion
7 Variance
8 Settlement

Material Cost
4,330.18

Actual Activity Rate Calcaulation

9 Actual Cost
10 Actual Cost Split to respective
11 Actual Activity Rate Cal
 12 Revaluation of Order
13 Overheads Calculation
14 Overheads Calcualtion
15 Variance
16 Settlement

Material Cost
4,330.18

By Order partially completed (WIP)

Product Cost by Order

RMA0O WIP Calculation At Actual Costs - By Order

RMA0P WIP Calculation At Target Costs - By Period
RMA0S WIP Calculation (for Sales Order) - By Sale Order
RMA0E WIP Calculation (For Engineer to Order) - ETO

*** WIP - Define Assignment of LINEID to CE

MIGO
Material Cost
12,885.52

1 Process Order
2 Goods Issue- RM-01
3 Goods Receipt - FG
4 Activity Confirmation
5 Template Allocation
6 WIP
7 Settlement
8 Actual Overheads Cal
8 Goods Issue- RM-02
ROH
Material Type Valuation Type
Rate Header
100 DOM-RMA0
MM - Split Valuation
150 IMP-RMA0
250

1 Valuation Type Creation OBYC

2 Valuation Class OBYC
3 GL Account Creation FS00
4 Transation Keys assignm OBYC
5 Cost Compnent Stc OKTZ
6 Define Quantity Structure Type
7 Costing Version
8 Edit Procurement Alter Ck91N
9 Create CK94
10 Creatio New PO ME21N

11 Creation of FG Material MM01

12 BOM CS01
13 Master Receipe C201
14 Production Version in MaMM02
15 Cost Estimate & Release CK11N & CK24
16 Process Order COR1
17 Goods Receipt MIGO
18 Process Order Confirmat COR6N
19 Template Allocation CPTA
20 Actual Overhead Cal KGI2
21 Variance KKS2
22 Settlment KO88

FERT
Material Type
Rate Header
MM - Split Valuation
 MM - Split Valuation

1 Valuation Type OMWC

2 Valuation Class OMWD
3 Creation of CE FS00
4 Assignment of CE OBYC
5 Assignment of CE to CCS OKTZ

Creation of Material for

Header and Valuation
6 types MM01
7 BOM CS01
8 Master Receipe C201
9 Production Version MM02
10 Procurement AlternativeCK91N
11 Mixing Ratio CK94
12 Cost Estimate & Release CK11N & CK24
13 Creation Proces Order COR1
14 Goods Issue - 261 MIGO
15 Process Order Confirmat COR6N
16 Template Allocation CPTA
17 Variance Calculation KKS2
18 Settlement KO88

HALB
Material Type
Header Header
RMA0-SFG-SV External Procurement
RMA0-SFG-SV1 In-House Procurement

1 Valuation Type OMWC

2 Valuation Class OMWD
3 Creation of CE FS00
4 Assignment of CE OBYC
5 Assignment of CE to CCS OKTZ

Creation of Material for

Header and Valuation
6 types MM01
7 BOM CS01
8 Master Recipe / Routing C201
 9 Production Version for MM02
10 Cost Estimate & Release CK11N & CK24
11 Proces Order Creation CR01
12 Good Issue - 261 MIGO
13 Activty Confirmation COR6N
14 Goods Receiptt - 101 MIGO
15 Overheads KGI2
16 Template Allocation CPTA
17 Settlement KO88

Movement Type 561 used for initial stock upload from Non-SAP to SAP system without Price Difference

RM RMA0-RM3
 Cost Component Structure - OKTZ
Heads in CCS Method
Raw Material Cost
BOM
Pack Cost
Man Power
Machine / Depreciation
Routing / Master Receipe
Power
Fuel
Material Overhead
Costing Sheet
Research & Development
Indirect Material
Indirect Labour Primary Cost Component
Indirect Overheads
Quality Control Cost
Template
Repairs and Maintenance
Sub Contracting Charges
External Prcess Charges
By Product / Scrap
Additve Cost
Other Exp

terial, Indirect Labour, Indirect Overheads in Costing sheet, Template allocation, Routing nor BOM then other way to book the expenses is

g - (wil be obsolete from 2023)

KP06 Dependent Planning - Expenses which

Independent Planning - Expenses whi
ctivity Planning KSPI - Cost Center with Activity Type Rate PlanninKP06
KSPI = KP06/KP26 Dependent Planning
Qty KSPI Cost Center
1000 6.20 RMA0-C01
720 6.94 RMA0-C01
720 4.03 RMA0-C01
400 3.75 RMA0-C01
30 6.67
20 5.00 Independent Planning
10 8 Cost Center
RMA0-C01
RMA0-C01
RMA0-C01
RMA0-C01
RMA0-C01

Based on business process template will keep changing wit different Environment
Template Allocation

Costing Sheet KZA1

Quantity Percentage
Material Overheads Research & Development

Material Consumption Mat+ Conversion Cost (Lab+Mach+Power+Fuel)

Credit

rial then use Price Control "S' in Material Master

en use Price Control "V' in Material Master
RMA0 - RM1 S/3
RMA0 - RM2 V/2
RMA0 - FG2

RMA0 - FG2 MM01

RMA0 - RM1 - S/3
RMA0 - RM2 - V/2
RMA0 - FG2 CS01
RAM0 CRC1
50000003 C201
MM02

FUEL USD 6.2 62

LAB USD 6.94 34.7
MACH USD 4.03 16.12
POWER USD 3.75 22.5
QC USD 6.67 6.67
RM USD 5 5
The planned costs on a costing object result from the preliminary cost estimate of the manufacturing order
Preliminary cost estimate is done in planning cost stage so as to know how much we need to produce the materials. This is as
It comes in the process after the calculation of the standard cost. Once we have calculated the Standard Cost, we will proceed

Target Cost - Goods Receipt with Material master standard price with Actual Quantity

COR1 1000049
MIGO - 261

COR6N Applied Cost - Only relevant for Activities

MIGO - 101
BSX
GBB-AUF
CPTA
KGI2
KKS2
KO88

Conversion Cost (Acivity) - Applied CosOverheads Cost Actual Cost Target Cost (GR)
1,501.90 556.01 6,388.09 4,860.20

F-02
KSS2
KSII
 MFN1/ CON2
KGI2
KGI2
KKS2
KO88

Conversion Cost (Acivity) - Applied CosOverheads Cost Actual Cost Target Cost (GR)
1,688.22 553.46 6,571.86 4,860.20

Product Cost by Period

Discrete Manf WIP or Variance
Repetative WIP+Variance

WIP Variance Only Concept

Actual Costs - By Order

Target Costs - By Period
r Sales Order) - By Sale Order
or Engineer to Order) - ETO

ssignment of LINEID to CE

Work in Process Calculation 1000058 1000059

Conversion Cost (Activity) - (Applied COverheads Cost Actual Cost Target Cost (GR)
4,410.00 1,616.73 18,912.25 14,580.60

COR1
MIGO
MIGO
COR6N
CPTA
KKAX
KO88
KGI2
MIGO

Mixed Costing
Mixed Costing with External Procurement / MFG
RMA0 - RM-SV
BSX GBB- VBR WRX
Valuation Class Inventory GL Consumption GRN -PO
RM0 200910 400100 100990
RM91 200901 400101 100990
RM92 200902 400102 100990

RMA0 -FG-FM-SV
RMA0 -FG-FM-SV
50000012
RMA0 -FG-FM-SV
RMA0 -FG-FM-SV Standard Cost
1000061 Priliminary Cost
4900000047
37

Mixed Costing with Internal Procurement / MFG

RMA0-FG-SV

BSX GBB- VBR

Valuation Type Valuation Class Inventory GL Consumption
RM2 200930 400300
MACH-01 RM31 200931 400301
MACH-02 RM32 200932 400302

50000013 & 50000014 10 1020.6

102.06

1000062

Mixed Costing - If one material has both procurement alternatives

In-House Procurement External Procurement

BSX WRX
Valuation Type Valuation Class Inventory GL GRN-PO
Header RM1 200910
PUR-RMA0 RM93 200911 100900
MFG-RMA0 RM94 200912

18 Creation of PO
19 Goods Receipt-101

MFG - Valuation type

50000015
 PUR - Valuation Type
1000063 MFG - Valuation type

pload from Non-SAP to SAP system without Price Difference only and it is used only during data migration only.

4500000041
 way to book the expenses is PCC.

nt Planning - Expenses which are booked through Conversion Cost.

dent Planning - Expenses which are booked through Overheads.
 Cost Center with Cost Element wise Planning
nt Planning
A.Type Cost Element Amount
FUEL 400404 6200
LAB 400405 5000
MACH 400403 2800
POWER 400406 1500
400409
dent Planning
Cost Element Amount Fixed Cost
400407 50 200
400408 30 100
400400 50 50
400401 30 30
400402 20 20
400409 80 80

it different Environment

on what basis
Co. Code
Plant
Material OH Group

Example
Material Cost Sales 100,000.00
Conversion Cost (-) Variable Cost 7,500.00
Labour (=) Contribution 92,500.00
Depreciation (-) Fixed Cost 6,500.00
Utilities (-)S&D & Admin 12,500.00
Factory OH EBDIT 73,500.00
COGM Standard Costing (-) Depreciation 6,850.00
Change in Stock + / - EBIT 66,650.00
COGS Actual Costing (-) Interest on Debentures 1,666.25
Admin Exp EBT (Earning Befor Tax) 64,983.75
Seslling Exp (-) Tax 1,169.71
Cost of Sales Marginal Costing EAT (Earning After Tax) 63,814.04
Profit (-) Preference / Debtures 3,190.70
Sales NI (Net Income) 60,623.34
Total 100.00
EPS 606.23

OPERATING CONCERN

DATA STRCTURE

TYPES COPA COSTING BASED COPA CHAR

ACCOUNT BASED COPA CHAR

COMBINED BASED
COPA (Extension of
Costing Based COPA) CHAR

RMA0-C01 RMA0 FUEL 943004 62

RMA0-C01 RMA0 LAB 943001 34.72
RMA0-C01 RMA0 MAC 943002 16.11
RMA0-C01 RMA0 PO 943003 22.5
RMA0-C01 QC 943005 6.67
RMA0-C01 RM 943006 5
Costing sheet
MAT_OH 941001 941001 20
RD_OH 941002 941002 21.64
 RMA0 RMA0 - RM1 400100 161.3
RMA0 RMA0 - RM2 400100 136.08

Overheads
Primary Cost Component Split
Costing Sheet
Template

duce the materials. This is as good as planned cost and once the production is finished, the Standard cost estimate is done periodically to u
andard Cost, we will proceed with the process of actual costs (Goods Receipt)

Difference (Variance)
-1,527.89
Difference (Variance)
-1,711.66

Diff (Var) - WIP / SETT

-4,331.65
PRD
Price Diff Mixing Ratio
400900
400901 0.4 40
400902 0.6 90
130

GBB-AUF PRD OKTZ -CCS

COGM Price Diff Consumption
400700 400920 400300
400701 400921 400301
 400702 400922 400302

GBB- VBR GBB-AUF PRD_PRF PRD

Consumption COGM Price Diff Pur Diff
400200 400704
400201 400911
400202 400703 400931

ME21N 4500000040 PUR - Valuation Type

MIGO SFG A/c-Dr (SP) GR/IR - Cr (1Qty*PO Price) PRD - Cr (Diff)
Price
400
321.32
Fixed Cost Variable Cost
5,000.00 1200
3,500.00 1500
2,500.00 300
1,000.00 500

OH Key
VALUE FIELDS

VALUE FIELDS

10.00 L
5.00 HR
4.00 HR
6.00 KWH
1.00 HR
1.00 HR

20.00 432.71 135.33 297.38

21.64
 2.00
2.00

mate is done periodically to update the finished material price in the materials master.
Qty
100.00 10000
120.00 18000
220.00 28000 127.2727273

Mixing Ratio Per Unit

538.75 235.39
184.41 70% 129.09
 354.34 30% 106.30

OKTZ -CCS
Consumption OKB9 Mixing Ratio Per Unit
400,200.00 0.00
400,201.00 70% 0.00
400,202.00 30% 0.00
 S

External Manufacturing

Sending Ma
GB-VBO Consumption A/c Dr
BSX To Inventory A/c

Expenses /FRL Sub-Contracting Charges A/c Dr

WRX To GR/IR A/c

FG receive BSX Inventory (FG) A/c Dr

BSV To COGM-SUB-Con

OBYC
Sub-
Consumpt
Contracting To COGM-SUB-Con
ion (GBB-
Charges A/c (BSV)
VBO)
(FRL)
400103 400410 400720

1 Creation of GL FS00
2 Assignment of OBYC GBB-VBO; FRL; BSV
3 Assignment of OKTZ GBB-VBO; FRL;
4 Creation of Co KS01
5 Assignment of OKB9
6 Creation of MatMM01 RMA0-SUB_CON01
7 BOM CS01
8 Purchase Info ME11 5300000042
9 Production VerMM02
10 CK11N & CK24
11 Creation of POME21N 4500000042
12 Transfer PostinMIGO
1. Goods Issue to SubC. Stock 4900000053
13 Goods Receipt MIGO 5000000083

Joint Production and By Production Costing

Co-Product
By Product
 *Certain manufacturing companies produce additional products related to their other products which
*Co-products can be sold independently or used in other manufacturing process while by by-products

Difference
Co-Product By Product
1 Standard Cost No Standard Cost Nor
2 Actual Cost Actual Cost
3- Net Realization Value
4 Material Master
Material Master With price Indicator S-2
5 Addition to C Deduction from Goods Issue (GI)
6 Equaliance Nu -
7 Co-Product Set-
Test
Co-Product

1 Create ReceiverKOK6 Equalianc N

2 Create MateriaMM01 RMA0-MAIN-CO-PRD 110
RMA0-MAIN-CO-PRD02 123
RMA0-MAIN-CO-PRD03 135
RMA0-MAIN-CO-PRD04 98
3 BOM Creation CS01 466
*CO-Product and By-Product will have always negative value qty.
4 Master ReceipeC201 50000019
5 Production VerMM02
6 Joint ProductioMM02
7 Standard Cost CK11N and CK24 / CK40N
8 Create ProcessCOR1 1000067
9 Production ordCOR6N
10 Template AllocCPTA
11 Overheads KGI2
12 Goods ReceipteMIGO
13 Co-Products SeCO88
14 Variance Cal KKS2
15 Settlement KO88

By Product
1 Creation of GL FS00 400726
2 Cost ComponenOKTZ GBB-ZOF (ZOF: for goods receipts without production orders
3 Acct DeterminaOBYC (mvt types 521 and 531))
4 Creation of MatMM01 RMA0-BY-PRDS-3
RMA0-BY-PRDS-2
5 Creation of B CS01
*with Negative qty system will determine it has By-product.
6 Master ReceipeC201 50000020
 7 Production VerMM02 Master Receipe & BOM
8 Update Rate foMR21
9 Cost Estimate CK11N & CK24
10 Create ProcessCOR1 1000068
11 Process Order COR6N
12 Template AllocCPTA
13 Overheads KGI2
14 Variance Cal KKS2
15 Settettlmenet KO88

Movement Type
Marginal / Actual Costing 101 GR
101E GR in case of MTS and MTO
Costing Cockpit Actual Costing 131 GR with Backflash with Rep
Application
Actual Costing CKMCLP Month wise (Periodic)
Alternative ValCKMCLPAVR Cumlative Wise

Input Screen - CKMCLP

ECC S/4 Steps

1 Selection Selection 1
2 Determinance Preparation 2
3 Single Price D 3
4 Multilevel Pri 4
Settlement
5 Revaluation of 5
6 WIP Revaluati
7 Post Closing Post Closing
8 Mark Prices Mark Prices
 Sub-Contracting

Partially Interna & External Manufacturing

1 Creation of GL (Sub Contract Ex. Process) FS00 400411

2 Creation of Material MM01 RMA0-SUB_CON02
3 BOM CS01
4 Purchase Info Record (without Material) ME11 5.5E+09
5 Create Master Receipe (Routing) C201 50000017
6 Production Version under MRP4 MM02
7 Cost Estimate and Price release CK11N & CK24
8 Create Process Order COR1 1000064
Purchase Requsition will be created automatically with help of 2nd Operation from Master Receipe.
10 Activity Confirmation - 1st Operation COR6N
11 Creation of PO with reference to PR from ProcessME21N 4.5E+09
12 Goods Receipt against PO MIGO 5E+09

13 Template Allocation CPTA

14 Actual Overheads KGI2
15 Goods Receipt against Process Order MIGO 5E+09
16 Variance Calculation KKS2
17 Actual Settlement KO88

Sale of FG to customer RMA0 - FG2

1 Creation of SO VA01 20
VPRS - Internal Price - Picks price from Material master (SP)
2 Outbound Delivery VL01N 80000012
3 Post Goods Issue (PGI) VL01N
4 Billing Doc VF01 90000005
5 Release to Accounting 9E+08
heir other products which have some financial value. These products are either co-products or by-products.
cess while by by-products have significantly reduced financial value.

Material Cost 403.25

CC, Cost / Activity/Template Alloc 147
COGM OH Cost 51.93
142.15 602.18 2,903.40 1025.28
158.94 1,029.01 1146.45
174.45 411.04 1258.30
126.64 4,343.45 913.43
4343.45

out production orders

GR in case of MTS and MTO
GR with Backflash with Repetative manf

Pending
Calculation of Periodic Unit Price (PUP)

Standard Price

Category Qty Preliminary Cost

Beginning Inv
Total Receipt
MIRO
MIGO
Master Receipe. 600 15 9000
800
400
10200
odic Unit Price (PUP)

Price Diff Ex. Rate Diff Actual Cost Price

0 #DIV/0!

0 #DIV/0!
 MTO (Make To Order) Scenario

MTS MTO

1 Demand of FG Customer Order

2 Standard Cost Estimate Sale Order Cost
3 Production Orders Sale Order
4 Condition Type VPRS – Stnd Cost Condition Type EK02 – Stnd Cost
COGS
5 VAR – Settlement Result Analysis – Sales Order Settlement
6 Costing Variant PPC1 Costing Variant PPC4
7 Mat+AC.Cost Mat+Ac.Cost
8 Overheads Overheads
Costing Sheet Costing Sheet
Template -001 Env Template – 008 Env
10 Strategy Group – MRP3 -10 Strategy Group – MRP3 -
11 WIP – RA Key – 0002 RA Key CAL -0004

*Product Cost by Order - MTS - Process Order and Production Orders are Controlling Objects
* Product Cost by Period - Product Cost Collect will be controlling Object
*Product Cost by Sales order - Sale order is Controlling object

Configuration
1 Create / Validate / Assign Costing OKY9
2 Create Template for 008 (Sales Or CPT3
3 Assign Template to Cost Object
4 Setup Requirement Class OVZG
*Requirement Class- primary purpose of a requirement class is to define the criteria for the typ
5 Assign Costing details to Requirement Class

*Costing ID - Product Costing - (With BOM and Routing)

6 Requirement Type OVZH
7 Planning Strategy OPPS
*Reqmts Type of Indep. Reqmts - MTS & Reqmts Type of Customer Reqmts - MTO
8 Strategy Group OPPT
9 Result Analysis OKG1
*RA - For MTO (Product Cost by Sales Order) & ETO the RA is used for calculating the profit.
10 Valuation Method of RA OKG3
11 Creation of Revenue acct, COS acctFS00
12 Assignment of Revenue and COS acOKG4
13 Allocation Structure OKO6
*for Settlement Cost Element the Receiver category should be PSG (Profitability Segment & Sa
 14 Assign Allocation structure to settl OKO7
15 Assignme RA and Settlement profilOVZG

Business Process
16 Material Master MM01
17 BOM - Production CS01
18 Routing CA01
19 Production Version MM02
20 Creation of Sales Order VA01
21 Sales Order Costing VA02
22 Production Order w/ sales order CO08
23 Production Order confirmation CO11N
24 Outbound Delivery VL01N

FG JE Inventory Dr - BSX
COGM Cr -GBB Video - 15
RM JE Inventory Dr - BSX Still need to complete
RM Consumption Cr - GBB
25 PGI Pending
ontrolling Objects

Sale Order Qty * KP26 Rate

Costing + Account Information

define the criteria for the types of costs that are considered during the cost estimate process.

er Reqmts - MTO

d for calculating the profit.

G (Profitability Segment & Sales Document item). At time Production order settlement receiver is Sales Order and at time of sale order settl
RMAO-MT01 RMAO-MT02
Sales 10000 100,000.00
50000003 50000005 EK02 297.11 304.46
Profit Marg 9702.89 99,695.54
28 29

1000080 1000082
0.08856481
at time of sale order settlement receiver is PSG (Prod. Order->SalesOrder->PSG)
 Repetative Manufacturing
With MTS scenario
Repetitive Manufacturing in SAP is a production process characterized by the repetitive production of the same or

It is typically used for items with stable demand and relatively simple manufacturing processes, such as consumer g
In SAP, Repetitive Manufacturing is supported by the SAP Production Planning (PP) module. Here are some key aspe
Master Data: Like any other manufacturing process in SAP, Repetitive Manufacturing requires appropriate
Planning: Repetitive Manufacturing uses a pull-based planning approach. It relies on a production version,
Execution: The production process in Repetitive Manufacturing is often highly automated and repetitive. It
KANBAN: SAP supports the use of KANBAN in Repetitive Manufacturing. KANBAN is a pull-based system th
Backflushing: In Repetitive Manufacturing, the consumption of materials and the production of finished go
Reporting and Analysis: SAP provides various reporting and analysis tools to monitor and analyze the perfor

Product Cost Collector (PCC)

PCC is a mechanism used in Product Cost by Order (CO-PC-OBJ) functionality and It's primarily employed in scenario

Cost Collection: The Product Cost Collector accumulates costs related to a specific product or batch. These
Assignment: Costs are assigned to the Product Cost Collector through various means, such as goods issues,
Analysis: Throughout the production process, managers can analyze the costs accumulated in the Product
Settlement: Once the production process is complete or at predefined intervals, the costs accumulated in t
Reporting: Detailed reports can be generated to provide insights into the costs incurred during the produc

1 Creation of Templates with 010 Environment

010 Product Cost collector (PCC)
2 Assign Templates to Cost Center
3 Costing Sheet remains same
4 Costing variant for PCC (PREM)
*Preliminary Cost Collector (PCC) is a temporary holding area for costs incurred during the production pr
5 Order Type RMA3
6 Assignment of Plant, Order type, RA key, Pre. Costg, Simul. Costing
To know the profit in case of MTO and ETO RA is used but in Case of MTS - By order and Period, RA key
7 Repetative Manf. Profile 0002

Busines Process Repetative Manafuturing - Without WIP

1 Create Material Master MM01 RMA0- PCC1
2 Create BOM CS01
3 Creat Routing CA01 50000013
4 Update Repetative Manf check both, REM profile MM02
5 Update Production version & REM check box MM02
6
roduction of the same or similar products over a defined period, often in large quantities.

esses, such as consumer goods, electronic components, or automotive parts.

e. Here are some key aspects of Repetitive Manufacturing in SAP:
ng requires appropriate master data. This includes bills of material (BOMs), routing or work center data, and material master re
n a production version, which contains the details of how a product is to be produced and the sequence of operations. The plan
mated and repetitive. It involves continuous production of the same or similar products without the need for frequent changes
s a pull-based system that helps control the flow of materials and production in a lean manufacturing environment. It ensures t
roduction of finished goods can be automatically recorded using a process called backflushing. This means that materials are au
r and analyze the performance of Repetitive Manufacturing processes. This includes key performance indicators (KPIs) such as t

arily employed in scenarios where costs need to be collected and settled at a more granular level, typically for specific products or batches

roduct or batch. These costs can include materials, labor, overhead, and any other relevant expenses.
ns, such as goods issues, confirmations, or overhead allocations. These costs are tracked against the collector until it's settled.
mulated in the Product Cost Collector. This analysis helps in monitoring and controlling the costs associated with the product o
e costs accumulated in the Product Cost Collector are settled. Settlement involves transferring the costs from the collector to th
rred during the production process. These reports help in evaluating the profitability of products or batches and in making info

during the production process before they are ultimately settled to their final cost objects.

order and Period, RA key is used for WIP

4800000 3
1015
4729.064
 ata, and material master records.
ence of operations. The planning process determines the production quantities based on the sales orders, forecasts, or historic
e need for frequent changes in setup or materials. Work orders are not typically used in Repetitive Manufacturing; instead, pro
ng environment. It ensures that materials are replenished only when needed, thus reducing inventory and lead times.
means that materials are automatically withdrawn from inventory and production quantities are updated as the production pro
ce indicators (KPIs) such as throughput, cycle time, and efficiency.

or specific products or batches.

collector until it's settled.

sociated with the product or batch.
osts from the collector to the relevant cost objects, such as cost centers, orders, or projects. This step is crucial for accurately r
r batches and in making informed decisions regarding pricing, production planning, and resource allocation.

2500000 2300000
187500
orders, forecasts, or historical demand.
Manufacturing; instead, production orders or planned orders are created to trigger production.
ry and lead times.
pdated as the production process progresses.

ep is crucial for accurately reflecting the costs in financial reporting and for further analysis.
 MTO- Non-Valuated Stock
SO is controlling Object

Configuration
1 Create / Validate / Assign Costing Variant to Plant (RAM0) for PPC4
2 Create Template for 008 (Sales order) Environment
3 Assign Templates to Cost object
4 Setup Requirement Class
*Requirement class - Primary purpose of a requirement class is to d
5 Assign Costing Details to Requirement class
* Costing ID - Product Costing (With BOM and Routing)
6 Requirement Type
7 Requirement type needs to assing Requirement Class
8 Planning Strategy
*Reqmts Type of Indep. Reqmts - MTS scenario & Reqmts Type of C
9 Strategy Group
10 Assign Planning Strategy to Strategy Group
11 Result Analysis
12 Creation of Valuation Method RA
11 Creation of Revenue acct, COS acct with CE category as 31
12 Assignment of Revenue and COS acct in Update
13 Allocation Structure
*for Settlement Cost Element the Receiver category should be PSG
14 Assign Allocation structure to settlement profile.
15 Assignme RA and Settlement profile in Requirement Class.

Business Process
1 Material Creation
2 BOM Creation -against Production order
3 Routing Creation
4 Production version and assignment
5 Sales Order creation
6 Sales Order Costing
7 SO - Production Order creation
8 Production Order confirmation
*for Valuated stock under MTO scenario ----- input RM under Production orde
*for Non-Valuated stock under MTO scenario ----- input RM under Production
9 Outbound Delivery
10 Check Result Analysis for Planned (Revenue, Costs)
Target Cost (GR)- Actual Cost = Variance
11 Settlment
12 Billing Doc Creation
13 Accounting Doc Creation
 14 Template Allocation
15 OH Calculation
16 Variance Cal
17 Review Result Analysis
18 Actual Settlement of Sales Order
19 Check Actual Cost Line Items of SO
20 Total Settlement List

COGS Cost of Goods Sold (COGS) Spli

400800 COGS
Variable Cost
400801
Variable Cost
400802 Variable Cost
400803 Fixed Cost
400804 Fixed Cost
400805 Fixed Cost
400806 Fixed Cost
400807 Fixed Cost
400808 Fixed Cost
Fixed Cost
400809 Fixed Cost
Fixed Cost
400811 Fixed Cost
400812 Fixed Cost
400813
COGS split is used only when Margin analysis / Account based COP
10 Raw Material-local
20 Raw Material- Import
30 Packing Cost
40 Manpower
50 Machine / Depreciati
60 Power / Electricity
70 Fuel
80 Fireight / C.Inward
90 Resarch & Dev
100 Indirect Material
110 Indirect Labour
120 Indirect OH
130 Quality Control
140 Repairs & Maintenanc
COGS split Offset

PRD-PRF

400951
400952
 400953
400954
400955
400956
400957
400958
400959

1 Create Process Order

2 Process Order Confirmation
3 Goods Receipt
4 Template Allocation
5 Overheads Allocation
6 Variance Cal
7 Actual Settlement
8 Create SO to check if valuse are able to
9 Outbound Delivery
10 Create Billing
osting Variant to Plant (RAM0) for PPC4
les order) Environment

y purpose of a requirement class is to define the criteria of the type of cost that are considered during the cost estimate process.
quirement class
ng (With BOM and Routing)

assing Requirement Class

mts - MTS scenario & Reqmts Type of Customer Reqmts - MTO scenario.

Strategy Group

OS acct with CE category as 31

COS acct in Update

t the Receiver category should be PSG (Profitability Segment & Sales Document item). At time Production order settlement receiver is Sales
o settlement profile.
t profile in Requirement Class.

MM01 RMAO-MT03 RMAO-MT04

CS01
CA01 50000006 50000006
MM02
VA01 30 31
VA02
CO08 1000084 1000085
CO11N
o ----- input RM under Production order the "Total Plan costs" will be calculated based on the General Account Modifier (VBR) under TT GB
enario ----- input RM under Production order the "Total Plan costs" will not appear due to General Account Modifier (VKA) under TT GBB (O
VL01N 4900000083 490000008
KKA3

KO88
VF01 9000000
VF02 Tables
 CPTA COSS - Secondary Cost
KGI2 900000002 COSP
KKS2 COSB
KKA3 COSBD
VA88
KVBI COOIS ACDOCA
KOC4

COGS Cost of Goods Sold (COGS) Split

Margin analysis / Account based COPA is used.
SPRO->FA->GL->Periodic Processing->Integration->Material Management-

Strategy Type
It determines how cost estimates are selected as the basis for splitting COGS.

Cost Component Split from Actual Costing (Material Ledger)

The cost component split is always taken from the material leger (actual costing).
This setting should be selected when the actual cost component split is active. Do not use this s
If you are using the option "Split Revalued Consumption with Actual Cost Component Split" you

Released Cost Estimates

With this strategy type, the system uses the released cost estimate that is valid at the point in ti
which is required during Delivery cost

Production Variance Split

Price Variance - only for production variance

Input Output
Goods Issue Manufacturing
Activity Confimration FG Material
Costing Sheet

Production Variance A/c Dr

To COGM A/c

Input Price Variance

Input Qty Variance
Remaining Input Variance
Resource Usage Variance
Output Price Variance
Mixed Price Variance
Fixed Cost / Lot size variance
Remaning Variance
Scrap Variance

COR1 1000088
COR6N 261
MIGO 101
CPTA
KGI2
KKS2
KO88 Check Price Diffs
VA01 33
VL01N 80000028
VF01 90000010
mate process.

ttlement receiver is Sales Order and at time of sale order settlement receiver is PSG (Prod. Order->SalesOrder->PSG)

difier (VBR) under TT GBB (Offsetting Entry of Inventory)

r (VKA) under TT GBB (Offsetting Entry of Inventory)

Material Cost 3,941.94

Conversion & Templat 1,953.45
OH Cost 345.59
 6,240.98

active. Do not use this strategy type if the actual cost component split is not active.
st Component Split" you should select this strategy type as the calculation of the delta that is posted is always based on the material ledge

is valid at the point in time when COGS is split. If no valid released cost estimate is available, COGS will not be split.
ys based on the material ledger.
 CE
Activity Ty
FG Cost Cente
Cost Cente

Steps for creating Cost estimate

1 Create ActiKL01 Test
2 Create CosKS01 RMA0-TEST
3 Create CE FS00 943007
4 Create CE FS00 400409
5 Create CC -OKTZ 943007
6 Cost CenterKP06 80
7 Cost CenteKSHI RMA0-TEST
8 Cost CenterKSPI
9 Check planKSBT
10 Create FG MM01 RMA0 -FG-FM01
11 Create BO CS01
12 Routing CA01 50000009
13 ProductionMM02
14 ProductionCo01 1000086
15 WorkcenteCR01 RMA01_T
 943007
TEST
RMA0-TEST
KP26
KSPI

RMA0 -FG-FM02

50000010