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Period-End Closing

General Plant

SAP Best Practices Baseline Package

SAP Best Practices

Scenario Overview 1
Purpose and Benefits:
Purpose

Period-end closing in a plant insures that all costs incurred in production of


company activities (such as materials manufactured in-house) are assigned to
those activities / products. The costs are then allocated to the respective
products in profitability analysis.

Benefits

Transparent view of production costs for materials manufactured in-house.


Automated efficient processing.

Key process flows covered

Run assessment cycle for quality costs


Ensure goods movements and production transactions are complete
Open new MM period
Period-end closing for production orders (overheads, WIP calculation, variances
calculation, settlement of production orders)
Close completed production orders
Data collection for summarization hierarchy (reporting)
Run actual assessment of all cost center costs to profitability analysis (COPA)
Run profitability report

Scenario Overview 2
SAP Applications Required:
Required

SAP enhancement package 4 for SAP ERP 6.0

Company roles involved in process flows

Enterprise Controller
Product Cost Controller
Accounts Payable Accountant
Shop Floor Specialist
General Ledger Accountant
Production Planner

Scenario Overview 3
Detailed Process Description:
Period-End Closing General Plant

First, you allocate quality costs to production cost centers.

Then you have to ensure that all incoming invoices are registered for the
period (release blocked invoices).

The goods movements and production transactions have to be complete for


the period.

Open new MM period.

Then you start period-end closing activities for production orders: posting of
actual overheads, calculation of WIP (work in progress), variances
calculation, settlement of production orders. Completed production orders
are closed.

To facilitate reporting, you run a data collection for summarization


hierarchies. The data is registered at the different levels of the hierarchy, e.g.
company, plant, order type, product hierarchy. The data extracts are used for
reporting on production costs.

To complete the allocation of production costs to products in COPA, you run


the actual assessment of all cost center costs to profitability analysis
(COPA).

In profitability reports, you can analyze costs and revenues for your products.

Process Flow Diagram

Run
Assessment
Cycle for
Quality Costs

Record
PurchaseOrder-Related
AP Transactions

Shop Floor
Specialist

Enterprise
Controller

PO Invoices Need
to be Posted
before Month-End

Accounts Payable
Accountant

Event

Period-End Closing General Plant

Run Profitability
Report

Settle Variances

Analyze
Variances

Perform Actual
Assessment to
CO-PA

Release
Blocked
Invoices

General Ledger
Accountant

Ensure
Inventory
Movements are
Complete

Ensure
Production
Transactions
are Complete

Open New MM
Period

Post Actual
Overheads
Calculation
Prod. Order

Period-End Closing
with Partially
Delivered
Production Orders

Preliminary
Settlement for
Co-Products

Review WIP
Calculation

WIP Calculation

Production and
Process Order
Variance
Calculation

Product Order
Information
System
Data Collection
for
Summarization
Hierarchy

Production
Planner

Product Cost
Controller

Run
Assessment
Cycle for
Quality Costs

Close
Completed
Production
Orders

PO = Purchase Order; AP = Accounts Payable; MM = Mass Maintenance; WIP = Work in Progress

Legend

<Function>

Symbol

Description

Usage
Comments

Band: Identifies a user role, such as Accounts


Payable Clerk or Sales Representative. This band
can also identify an organization unit or group,
rather than a specific role.

Role band
contains tasks
common to that
role.

Symbol

Diagram
Connection

The other process flow symbols in this table go into


these rows. You have as many rows as required to
cover all of the roles in the scenario.

Hardcopy /
Document

External to
SAP

External Events: Contains events that start or end the


scenario, or influence the course of events in the
scenario.

Business
Activity / Event

Flow line (solid): Line indicates the normal sequence


of steps and direction of flow in the scenario.
Flow line (dashed): Line indicates flow to
infrequently-used or conditional tasks in a scenario.
Line can also lead to documents involved in the
process flow.

Connects two
tasks in a
scenario
process or a
non-step event

Business Activity / Event: Identifies an action that


either leads into or out of the scenario, or an outside
Process that happens during the scenario

Does not
correspond to a
task step in the
document

Unit Process: Identifies a task that is covered in a


step-by-step manner in the scenario

Corresponds to
a task step in
the document

Unit Process

Process
Reference

SubProcess
Reference

Process
Decision

Process Reference: If the scenario references another


scenario in total, put the scenario number and name
here.

Sub-Process Reference: If the scenario references


another scenario in part, put the scenario number,
name, and the step numbers from that scenario here

Process Decision: Identifies a decision / branching


point, signifying a choice to be made by the end
user. Lines represent different choices emerging
from different parts of the diamond.

Financial
Actuals

Does not
usually
correspond to a
task step in the
document;
Reflects a
choice to be
made after step
execution

Usage Comments

To next / From last Diagram: Leads


to the next / previous page of the
Diagram

Flow chart continues on the next /


previous page

Hardcopy / Document: Identifies a


printed document, report, or form

Does not correspond to a task


step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any
outgoing flow lines

Financial Actuals: Indicates a


financial posting document

Does not correspond to a task


step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any
outgoing flow lines

Budget Planning: Indicates a


budget planning document

Does not correspond to a task


step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any
outgoing flow lines

Manual Process: Covers a task


that is manually done

Does not generally correspond to


a task step in a document;
instead, it is used to reflect a task
that is manually performed, such
as unloading a truck in the
warehouse, which affects the
process flow.

Existing Version / Data: This block


covers data that feeds in from an
external process

Does not generally correspond to


a task step in a document;
instead, this shape reflects data
coming from an external source;
this step does not have any
incoming flow lines

System Pass / Fail Decision: This


block covers an automatic
decision made by the software

Does not generally correspond to


a task step in the document;
instead it is used to reflect an
automatic decision by the system
that is made after a step has been
executed.

Budget
Planning

Manual
Proces
s

Corresponds to
a task step in
the document

Corresponds to
a task step in
the document

Description

Existing
Version /
Data

System
Pass/Fail
Decision