Documentos de Académico
Documentos de Profesional
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Instructor
Guide
Level 02
Contents Page:
SAP Contact(s)............................................................................................................4
Walldorf:............................................................................................................................................. 4
Subsidiaries....................................................................................................................................... 4
Course Schedule:.....................................................................................................10
Day One........................................................................................................................................... 10
Day Two........................................................................................................................................... 10
Day Three......................................................................................................................................... 11
Day Four........................................................................................................................................... 11
Day Five........................................................................................................................................... 12
Additional notes:............................................................................................................................... 12
Unit: Introduction......................................................................................................13
Unit: Navigation 4.6..................................................................................................14
Unit: Overview of Controlling..................................................................................15
General Tasks of Controlling............................................................................................................ 15
The Components of CO Overhead Management.............................................................................16
The components of Product Cost Controlling...................................................................................18
The components of Profitability Management..................................................................................19
R/3 Integration.................................................................................................................................. 19
Describe the purpose of Transfer Prices.......................................................................................... 21
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Unit: ASAP.................................................................................................................98
Explain the benefits of ASAP........................................................................................................... 98
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SAP AG AC040 Cost Management and Controlling
SAP Contact(s)
Walldorf:
Thomas Zrker (mail: zuerker)
Uwe Lebefromm
Subsidiaries
US: Lawrence Fisher, Gary Fullmer
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SAP AG AC040 Cost Management and Controlling
Course Details
Duration:
This is a full five-day course
Country-Specific Units
None
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Work through the course exercises and/or instructor guide demos. About 70 percent of the scripts
follow the student exercises.
Attend the class at least once to get a feeling for the course flow, timing and student questions.
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Other Suggestions:
You can generate all standard reports used in this class this will make them run faster during your
demos.
In order to lesson the confusion in the planning unit change the distribution key in planning profile
SAPALL to DK = 1 and set the SAPALL planning profile as the default by assigning to the user
parameters (PPP = SAPALL).
Set your own user ID up as the budget manager for Order Type 0400.
Set the Date Control for costing variant PPC1, date control PC01 to default the FROM date to todays
date that will ensure that everyone can mark and release their standard cost estimate.
You may wish to perform goods receipt postings for materials T-B1XX T-B4XX ahead of time for
the cost object controlling exercise. But you dont need, since the exercise shows up the goods receipt
posting as prerequisite for the exercise. So you can leave the posting to the participants.
To run the reconciliation ledger successfully, you need to DELETE the Cross-system company code
from the global settings for company codes 1000 through 2300. This is done in the IMG for financial
accounting, Global settings.
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Example ABAPs
None
CATTs
Technical Hints
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Course Schedule:
Day One
Approximate Content: Units and Topics Activities: Instructor and Participant
Times
9:00 9:30 Student Introductions, Course Contents, class logistics, flow
Unit 1
9:30 10:15 Unit 2 Demo navigation, help, new 4.6 features, user
menus, favorites folders & screen settings
Unit 2 Exercises
Break
10:30 12:00 Unit 3 Overview of Controlling, Financial
Accounting, Reporting
Unit 3 Exercises
Lunch Break
1:00 4:30 Unit 4 Organizational Units, CO Master Data
Unit 4 Exercises
Day Two
Approximate Content: Units and Topics Activities: Instructor and Participant
Times
9:00 9:30 Review Day 1 Review key points from previous day
9:30 10:15 Unit 5 Reporting Tools, Overview of reporting tools
including Drilldown, List viewer, and Painter
Break
10:30 12:00 Unit 6 Unit 6 Begin Lecture Planning
Lunch Break
1:00 4:30 Unit 6 Planning and Plan Integrations, Introduction
to Cost Center Planning, Production Cost
Planning, also planning with ABC Process
Costs
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Day Three
Approximate Content: Units and Topics Activities: Instructor and Participant
Times
9:00 9:30 Review Day 2 Review key points from previous day
9:30 10:15 Unit 6 Contd Continue lecture and Demonstrations
Planning
Break
10:30 12:00 Unit 6 Push to complete Unit 6 by lunch. If
completed start introductory lecture on Unit 7
Lunch Break
1:00 2:15 Unit 7 Postings from other modules
Break
2:30 4:30 Unit 7 Try to complete all of unit 7 by the end of
day 3.
Day Four
Approximate Content: Units and Topics Activities: Instructor and Participant
Times
9:00 9:30 Review Day 3 Review key points from previous day
9:30 10:15 Unit 8 Event-Based Postings
Break
10:30 12:00 Unit 8 Unit 8 Finish Lecture and Exercises
Lunch Break
1:00 - 2:15 Unit 9 Period End Postings in CO: Overhead Cost
Controlling, Cost Object Controlling & other
period end topics
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Day Five
Approximate Content: Units and Topics Activities: Instructor and Participant
Times
9:00 9:30 Review Day 4 Review key points from previous day
9:30 10:15 Unit 9 Unit 9: Continue Lecture remaining topics
Break
10:30 12:00 Unit 9 Wrap up Lecture and remaining exercises
Unit 9
Lunch Break (Note: You may wish to shorten lunch break to 30 to 45 min)
1:00 2:00 Unit 9 Unit 9 Exercises: Students finish Unit 9
Exercises
Break
2:30 3:30 Unit 10 ASAP Overview
Additional notes:
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Unit: Introduction
30 minutes
In this unit you should explain the typical characteristics of the course:
No customizing
Process oriented
Overview of controlling using standardized processes like:
Creation of master data
Planning and plan integration
Producing a product to stock (Controlling by order)
Selling a product from stock
Selling (providing) a service to a customer (Controlling by sales order)
Period-end closing processes
Controlling and analyzing results
Ask the customers about their interests and expectations
Focus on integration within CO and with other modules of the R/3- system
Excursions to other modules to provide some additional knowledge for the participants. Beginners
should not get worried or frustrated about all the information of the non-CO modules.
The goal of the course is for the students to know about functionality, integration, tasks and
philosophy of CO. The goal is not, that the participants can do everything they have seen by
themselves after the course or that they are specialists now. The doing and customizing will be
learned in Level3- courses. We cannot teach everything of CO in detail in only five days.
We provide exercises and sample solutions in this course. However, not all exercises have to be
carried out. The participants should understand the instructor will select which exercises will be
completed and which exercises will be declared as optional. According to the rules for a level 2-
course, we have included more exercises than can normally be completed in the time allowed
during a 5 day course
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<Unit Objectives>
Topic: <Name>
<Slide Title>
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90 Minutes
Exercises allow 15 Minutes
Accounting Architecture
This slide depicts the different accounting and business processes found within SAP
Accounting. Discuss the slide in general terms reviewing the Enterprise Controlling
(PCA and EIS), move to Treasury, Financial Accounting and then Controlling review
what business processes are found in each module. Finally explain FI-IM provides a
base for the entire Accounting Structure.
Standards versus Flexibility
Depending on the country specific legal reporting requirements, customers may be
using the period accounting or cost of sales accounting method when analyzing their
financial data. Bother methods are available for profitability reporting in the
Controlling module. Should the question arise, cost of sales accounting is
accomplished with the use of Function Areas which are used to identify SG&A
type expenses.
Reporting Requirements
Highlight the different reporting requirements for companies. Good place to ask
overhead questions to the students. Let the students explain where and when their
companies will require both types of reporting.
Controlling Architecture use this slide to introduce the students to the different parts
of CO. Briefly explain the concepts of Cost Element Accounting, Overhead Cost
Controlling, Product Cost Controlling, and Profitability Management. Also, note the
cost flow arrows depicting cost flows into and out of CO.
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Demonstrate some of the Basic Reports which can be obtained in Controlling and
compare them to a Financial Statement obtained in FI (after page Providing
Flexibility to Suit)
10 Minutes
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The Components of CO
Explain the CO is broken into 4 different groups. These groups contain the various
CO tools. The remainder of this unit will review each of the CO groups and the
various found within each group.
CO Components
: This slide outlines some typical questions each CO component is designed to
address. Emphasize the role of cost elements in identifying various
expenses/revenues , OH cost review and control and finally how and where profits
are reported in CO
Overhead Management
The next series of slides reviews the Overhead Management component of CO.
Again point out OH Management uses the following CO tools: Cost Centers,
Internal Orders and ABC
Cost Center Accounting
Cost centers are controlling objects that can be used to monitor costs. They may
reflect the departments within a company and are organized in a hierarchical
structure for reporting, planning and allocation purposes. In a manufacturing
environment cost centers may be roughly divided into overhead and production cost
centers, in a service environment into service and administrative cost centers. Cost
Centers also require a formal structure called a hierarchy. This slide depicts the Std.
Hierarchy for the Cost Centers used in IDES.
Internal Orders
Internal orders are a new concept for many customers. Differentiate the Internal
Order from a cost center as an alternate way to monitor costs below the cost center
level. Using the trade fair example, explain that the cost for the trade fairs could be
monitored on the Sales cost center, but one would loose that transparency of costs of
each individual trade fair. Also, the costs of the trade fair would be intermingled with
recurring period costs, and it would become difficult to break out which expenses
where related to the trade fair. Eventually costs can be settled to the cost center
while preserving a record of the individual trade fair costs.
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5 Minutes
Demonstrate a plan/actual comparison report at the order level to illustrate a simple
plan/actual variance report.
ControllingProduct Cost ControllingCost Object ControllingProduct cost by
orderInformation SystemReports for Product Costing by Order Detailed
ReportsFor OrdersVariance AnalysisPlan Actual Comparison:
Order Number If you choose to demo this report use the search function to find
a current Production Order starting with 6000xxxx
Select: Cumulative
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5 10 Minutes
The intent is to give a brief preview of a drill-down report in profitability analysis. If
time allows, you may also want to show a profit center report to distinguish sales
oriented contribution margin reporting and P&L oriented profit center reporting.
AccountingControllingProfitability AnalysisInformation SystemExecute
Report: IDES-012
Operating Concern: IDEA
Plant: 1000
Fiscal Year: 2000
Periods: 1 to 12
Type of Report: Classical Drill Down or 4.6 view Graphical Report Output
This report was written for plant 1000 and sorts by division, product and customer.
Briefly tie the report back to the presentation around drill-down reporting.
For the drill down report view: Select the Overview icon, and product from the drill-
down list. This will show results for all products in plant 1000. Next, select product
P-100 and click on the magnifying class to demonstrate the Detailed List. Click on
Customer, and point out that you are now looking at customer results for product P-
100.
For the graphic report: Demonstrate the drag and drop functions of 4.6
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The following three slides discuss the need for companies to look at their business
from a global view, a legal definition and a local or Profit Center view. This includes
the measurement of profitability at several different levels or views. For example
the President of a Corporation has a need to view the results without the effect of
internal transfer pricing. Another view would be the legal view for balance sheet
reporting which would by law require the addition of goods movements between
different company codes. And finally another view would be required for the
various Profit Center managers, who require the addition of values for those goods
transferred within various Profit Centers. It is important to note that each view is
available at any given level of management within the corporation it just depends on
the managers current reporting requirements. Also, if your students ask how the
currency views are selected the currency view is tied to the planning version in the
planning version configuration in the IMG.
10 minutes
The exercises are a series of questions. You may elect to work through them with
the students by leading a discussion.
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240 Minutes
CO Organizational Structures
Define the relationships between the various organizational structures
Organizational Units
Point out that organizational units are used throughout the system to provide for the
highest reporting level of each R/3 application. In addition as each of the
organizational units are configured it is vital that the links between the various units
are considered in order to avoid severe problems. The controlling area therefore
represents the highest reporting level in an organization from a costing standpoint
(roll-up reporting). The operating concern allows for the combination of several
controlling areas and is only for required CO-PA. Most customers strive to have only
one controlling area; this makes good business sense since there is no tool to allocate
costs between controlling areas.
The controlling area in itself would not be very meaningful. Explain that one or
many company codes (legal balancing units) configured in FI must be linked to a
controlling area. They have to share the same operating chart of account and fiscal
year variant. Briefly explain what each term means. At the controlling area an overall
currency setting must be maintained. Other currency levels (legal, group & PCA)
are also tracked. Explain the links between organizational units as they are
configured in the IMG.
Multiple Assignment
Highlight the requirements for the company code link to the controlling area. Note
that Company Code 1000 uses the same COAs and the same currency as the
Controlling Area, however Company Code 2000 uses two COAs plus a different
currency. The settings within the Controlling Area configuration allow for the
conversion of data from Company Code 2000
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10 Minutes
You may elect to split up the class into two groups to work on the organizational
structure and then report out to the group. This is a good way for the class to find out
more about their classmates.
Putting the Topic in Context: Basic Data & Structures
Basic Data & Structures
Name the types of CO Master Data
Purpose of CO master data
List three ways Master Data groups are used in CO
10 Minutes
Note: Prior to the demonstration ensure Controlling area 1000 is set as the current
Controlling Area.
Before beginning the demonstration it may be helpful to outline the storyline of
what will happen with the master data later on. How t will be used for planning,
actual postings and allocations.
Primary Cost Element
R/3 MenuAccountingControlling Cost Element AccountingMaster
DataCost ElementInd. ProcessingCreate Primary
Enter: Cost Element 430100
Dates: Use default dates
Note: An error message will result reflecting need to set up G/L account first in the
FI ledger
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After the error message appears and you have explained the requirement to first set
up the FI G/L number first you may wish to demonstrate the FI configuration of a
G/L number. As part of the demonstration you should emphasize the new 4.6 button
which allows for the configuration of the CO Cost Element from within the FI
screen.
AccountingFinancial AccountingGeneral LedgerMaster RecordsIndividual
ProcessingCentrally
Note: Highlight Create Cost Element Button
Save the Cost Element - Note You will need this cost element for additional
instructor demonstrations in following units.
10 Minutes
Demo Standard Hierarchy:
Explain the purpose and importance of the standard hierarchy.
ControllingCost Center AccountingMater DataStandard HierarchyDisplay
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Copy basic data from Cost Center SERV-20 to new Cost Center Prod-20
Enter Data: Cost Center: Prod-20
Dates: Valid from 1/1/XX Current year
Valid to 12/31/XX Current year
Reference Cost Center: Serv-20
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10 Minutes
Position the use of activity types as the productive output of the cost center.
Activity Types
ControllingCost Center Accounting Master DataActivity TypeInd.
ProcessCreate
Enter Data: Activity Type: REP-20
Dates: Valid from 1/1/XX Current year
Valid to 12/31/XX Current year
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5 Minutes
Statistical Key Figures
Controlling Cost Center Accounting Master Data Statistical Key
Figures Ind. Process Create
10 Minutes
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Tie this demonstration back to the purpose of the order, in this case to capture costs
for the individual trade fairs, which later on will be settled to the service cost center.
Menu Path: R/3 Menu AccountingControllingInternal OrdersMaster
DataOrderCreate
Enter Data: Order Type: 0400 Trade Fair
Business Process
Position ABC as a relatively new costing tool. The difference to the traditional
approach of cost center accounting is a business process will collect overhead cost
from a cost center and then distribute those overhead costs more efficiently. Some
examples of business processes to collect the cost of Purchasing process, the Sales
Process, Presales etc. The goal of ABC is to collect total costs for each identified
process, and later allocate these costs (based on a cost driver) to various cost objects,
which is typically a product or customer record. Cost Centers are considered to be
process resources, and will contribute only those costs relating to a business
processes. Resource drivers will be established to allocate costs from the cost center
to the process.
Demonstration ABC Business Process
Since the students are not required to configure an ABC process in their exercises
you may wish to show them a configured process. You may pick ABC process
300900 for your review.
ControllingActivity-Based CostingBusiness ProcessInd.ProcessingDisplay
Master Data Groups
Emphasize the use of master data groups throughout the course, when talking about
planning, allocations and reporting. They can be created for any type of CO master
data.
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5 Minutes
Explain that this master data group will later on be used for allocations, reporting and
planning in the upcoming student exercises.
Explain the difference between adding values, or ranges, and adding a node. Save the
Cost Center Group
If time allows, create a cost element group as well.
30 Minutes
The master data set up here will be used later; so make sure students use their correct
group number and complete the exercise correctly.
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5 Minutes
Typically the BOM is part of a product cost estimate. It is configured in the Logistics
module. Point out that not all Booms are used for costing.
Show the BOM for material T-F100 in plant 1000.
LogisticsProductionMaster DataBills of MaterialBill of
MaterialMaterial BOMDisplay:
Material: T-F100
BOM Usage: 1
5 Minutes
Explain the link of work centers to cost centers and activities
Display work center 1310 which is linked to cost center 4230
LogisticsProductionMaster DataWork CentersWork CenterDisplay
Workcenter: 1310
GotoCosting or select costing tab
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5 Minutes
LogisticsProductionMaster DataRoutingsRoutingsStandard
RoutingsDisplay
Product: T-F100
Select Operations Tab
Show Operations View. Here the individual steps performed when manufacturing the
product are linked to work centers, which in turn will perform the activities required
for the operations step.
It may be helpful to draw the relationships between cost centers, work centers and
activities at this point:
Cost Center : Production Work Center: Production Operation
Activities: Set-up 100.00/hr 10 Minutes 10
Tooling 120.00/hr 5 Minutes 10
Machine Time 50.00/hr 15 Minutes 20
Product Cost Controlling by Order
The first production cost tracking option presented is using the individual production
order as the cost object. This is most often selected in those industries where the
number of production orders each month is low and the cost tracking is important for
each production orders. Another reason is each production order may be for a
slightly different product and it is not possible to group the production costs together
for summary review at month end. Note: This is the production cost tracking
method used in the following student exercises in later units.
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Master Data in Profitability Analysis differs from all other CO application, since
profit segments are dynamically created by the system.
Characteristics in PA represent the report dimensions, such as customers, products or
product groups. Value fields exist in costing-based PA based only, and represent the
key figures used in reporting, for example revenue, discounts. Values are
summarized by profit segment.
Profitability segments are created when the system encounters a unique combination
of characteristic values. For example, a sales order with two line items is posted for
customer 1000. The following profit segments are created:
Line item 1 Product A Customer 1000 = Segment 1
Line item 2 Product B Customer 1000 = Segment 2
The concept of derivation implies that certain characteristics are derived when a
transaction is posted. For example the customer group can be derived from the
customer number entered on the sales order.
Valuation refers to the concept that certain values cannot be found on the original
document and therefore can be estimated or found in CO-PA only. An example
would be estimated freight which is not known at time of sales order entry.
Discuss that profit centers are internally focused organizational units, which are
definable by the customer they could be product lines, business units, plants,
distribution centers, or department.
Profit centers can exist above the company code level, and one or many cost centers
can be linked to a profit center. A profit center needs to belong to a profit center
standard hierarchy.
Emphasize that the focus of profit center reporting first of all affords balance sheet
items not available in PA, but typically focuses on internally focused profit
accounting.
Types of Profitability Analysis
SAP offers two views of profitability: The cost based view (cost based CO-PA) and
the account based view (account based CO-PA & PCA) This slide highlights the
differences in the two views. Note that cost based can not be used for estimated
costs and its attraction is its ability to tie back to FI. The advantage of the cost based
view is the excellent reporting flexibility available.
Basic Concepts of CO-PA
Highlights the three components of CO-PA. The characteristic, the characteristic
values and the PA value fields. Without all three components in place CO-PA will
not be able to function, as all three are necessary for reporting in CO-PA. Use the
slide to highlight the CO-PA terms, as most students are not aware of the definitions
of characteristics and the link to values. Also, mention the role of the value fields as
the collectors of expenses and revenues that are mapped into CO-PA during PA
configuration.
Profit Center
Review the purpose of profit center accounting. In other words where it is used.
Answers the question: Did I make money last month at my location. Profit center
managers ask this type of question. A good example of a profit center mgr. would
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be a mfg. manager who would like to know the financial results at month end. Also,
note these financial results would include certain balance sheet items relating to
working capital issues.
10 Minutes
Show the profit center standard hierarchy:
AccountingEnterprise ControllingProfit Center AccountingStandard
HierarchyDisplay
Remind the students how similar the Profit Center and Cost Center hierarchies are
Create a profit center, Sales Pumps in Profit Center Accounting. Point out that
profit centers exist independently of the company code and that one or many cost
centers can be assigned to a profit center. Mention the profit center standard
hierarchy.
AccountingEnterprise ControllingProfit Center AccountingIndividual
ProcessingMaster dataCreate
Profit Center: AC04000
Valid from 1/1/20XX to
Name: Sales Pumps
Description: Sales Pumps
Person in Charge: Miller
Department: Sales
Profit Center Group H1020
Profit Center Assignments
Outlines the importance of mapping all cost objects into PCA. There are several
ways to accomplish this task. More detail is presented in the AC610 class. If there
is time you may want to discuss the role of the PCA monitor tool. It is found under
the PCA master data menu path and helps in the assignments of cost objects for the
proper Profit Center.
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45 Minutes
Topic Objectives:
Name the different reporting tools
Explain the purpose and capability of each reporting tool
10 minutes
Run a line item report from the report tree:
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Menu Path:
AccountingControllingCost Center AccountingInformation SystemReports
for Cost Center AccountingMaster Data Indexes
Select: Cost Centers
Enter the following:
Cost Center Group: HAC040
Valid dates: Current year.
Demonstrate the ABAP list viewer by changing the report format and displaying
different information about the master data of the students cost centers. As a
suggestion pull up the validity dates for the cost centers for review.
15 Minutes
In this exercise the students will first generate a FI balance sheet/P&L report. It will
be in summary format. Then the students will be ask to move into CO reporting in
order to compare the CO report capability with the FI reporting tool. They will run a
CO-PA report, a cost center report, and practice drill down reporting. Emphasize the
differences between the FI report tool and the CO tool in your introduction to the
exercises.
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360 Minutes
Introduction to Planning
Plan Versions
Copy Plan Data
Planning Layouts
Planning: Goals
Explains why planning is required. Also, you might discuss the fact planning
techniques within SAP vary according to the requirements of each cost center
manager. In other words the planning technique used by an Accounting Cost Center
Mgr. will be quite different for a Production Cost Center Mgr. who is required to
plan the quantity and cost of several Activities.
Versions
Versions are easily explained as what-if scenarios of a plan. Mention that SAP offers
an easy to use tool to revalue & copy plan data systematically, based on user-defined
parameters. Briefly review Planning Aids as a help tool for the cost center planners.
Copy planning
Highlight the fact actual values can be transferred into a new plan version. This will
serve as a base for the new plan.
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Planning Layouts
Remind the students that planning layouts are set up using Report Writer and Painter.
Layouts allow for certain planning requirements. One layout will allow from
planning cost elements and another will allow for activity type planning.
Organization of the Planning Screen
Review the role of the planner profile in linking the plan layouts to the plan areas.
Also discuss the SAPALL and SAPEASY profiles, as they are an aid to the planners.
10 Minutes
Select SAPALL planning profile and show the various planning activities available
and the various layouts that are used with this profile.
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10 Minutes
Start with this fairly basic demonstration of primary cost planning.
Note: Check your planner profile is set to SAPALL
AccountingControllingCost Centers AccountingPlanningCost and Activity
InputsChange
Plan some primary costs
Enter the following Data:
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Version: 0
Period: 1 12, 20XX (current year)
Cost Center: SERV-20
Cost Elements Range: 415000 to 420000 Select: the free and then form-based
buttons to show the students what each button does, and then click on the overview
icon (annual planning).
Plan Costs: Cost Element 417000 value 36,000 with a DK of 1
Post your plan entries
Run a Planning report for cost center SERV-20 to illustrate what has been planned so
far. You may also draw the attached map to pull all the pieces together.
Cost Center AccountingInformation SystemReport SelectionPlanning
Reports Cost Centers: Planning Overview
Explain the concept of plan over/under absorption.
15 Minutes
Remind the students that they have already manually planned activity costs for their
cost centers in the master data exercises.
Start with this fairly basic demonstration of activity rate planning.
First, plan activity in-dependent costs. Tie the demonstration back to the master data
created in the previous exercise. The two cost centers you will plan are the service
and production cost centers.
Explain the importance of setting planner profiles.
ControllingCost CentersPlanningSet Planner Profile: SAPALL, Layout 1-101
Plan activity-independent costs.
Cost CentersPlanning Cost elements/Act. input: Note: you may have already
planned costs on Serv-20 if so skip this step
Version: 0
Period: 1 12, 20XX (current year)
Cost Center: SERV-20
Cost Elements: 417000 36,000 DK = 1
Select form-based, and click on the overview icon (annual planning).
Post your plan entries and create the plan for the production cost center from the
same screen.
Version: 0
Period: 1 12, 20XX (current year)
Cost Center: PROD-20
Cost Elements: 420000 19,200 Fixed Cost DK = 1
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Version: 0
Period: 1 12, 20XX (current year)
Cost Center: SERV-20
Activity Type: REP-20
Select form-based, and click on the overview icon (annual planning).
Planned activity: 1000 hours DK 1
Fixed Activity Price: 60.00
15 Minutes
Demonstrate how the system can automatically calculate the activity rate based on
cost element and activity input planning.
Plan activity-dependent costs for the service cost center and explain what makes
them activity dependent.
Use Layout 1-101
Plan activity-dependent costs.
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30 Minutes
During the review you may want to emphasize why it may be beneficial to have the
system calculate the rate. .
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10 Minutes
AccountingControllingProfitability AnalysisPlanningEdit Planning Data
Operating concern: IDEA, select costing-based
Select planning level AC040, T-F100 (double-click on T-F100)
Select planning method AC040, enter planning data, T-F100 (double-click on T-
F100)
Alternative 1 (easy):
Enter the following data manually:
Revenue: 2.000.000
Quantity: 1200
Press push button valuate and save the plan data
Alternative 2 (advanced):
Derive the plan data by using the functionality forecast and ratio (x represents
the actual year):
Put the cursor on the field invoiced quantity for plan 200x and press push button
forecast. Enter the following data:
Forecast data: From period: 001.200x to 012.200x
Archive data: from period: 001.200y to 012.200z (previous two years)
Version 100, record type F
Mark plan data
Enter forecast profile: AC40 and press enter
In the next screen mark invoiced quantity (this is the field you want to forecast
for) and press enter
you will get a quantity of about 1200 pcs. Feel free to change the figure manually
to 1200.
Now put the cursor on the field revenue for plan 200x and
use menu path: Editplanning methodsratios
Enter ratio scheme AC040 from period 001.200z to 12.200z (previous year only)
Version 100, record type F and mark plan data. Press enter.
you will receive a planned revenue of about 2.000.000. Feel free to change the
figure manually to 2.000.000.
Press push button valuate and save the plan data
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Planning in PP
In this step, emphasize that the sales quantity plan can be transferred to Sales and
Operation Planning (SOP) in Production Planning. Here the sales plan is checked
against capacity. If the plan cannot be met, additional resources must be obtained or
the sales plan changed. Results are used as a basis for running LTP (Long Term
Planning) and/or MRP (Material Requirements Planning)
Demonstration of creating a SOP-Plan using the data of the prior planned sales
plan
15 Minutes
In order to not loosing participants, you should now explain material master
record, BOM, routing and work center, if you did not already earlier in this
course.
Show material master record for T-F100. It is sufficient to focus on the views
accounting 1 and costing 1.
Logistics production master data material master material
display display current
Material: T-F100, choose view accounting 1 and enter in the next screen plant
1000.
After you explained the most important fields (e.g. valuation class, price control,
standard price) show view costing 1, explaining e.g. overhead group, variance key,
profit center.
Show Bill of materials for T-F100.
Logisticsproductionmaster dataBills of materialbill of material material
BOMdisplay
Material: T-F100, plant 1000, BOM usage 1
Explain, that the four materials are semi-finished goods which are also produced in
our company.
Show Routing for T-F100.
Logisticsproductionmaster dataroutingsstandard routingdisplay
Material: T-F100, plant 1000 and press enter.
Doubleclick on operation 0010, explain the activity types and press push button
work center. Via the tab costing you can show the assigned cost center.
this is the integration between Cost Center Accounting and PP.
!! Hint: In order to be able to show the integration very well, assign the work center
T-M00 to cost center AC040, which is already available in the system !!
Logisticsproductionmaster datawork centerswork centerchange
Plant 1000, work center T-M00
Go to TAB costing and enter:
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15 Minutes
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now 50.
Look up the result in the report planning overview (look to your favorites).
in the second part of the screen you see, that about 400 hours of each activity are
scheduled. In the first part you see in addition the requesters of the activities.
After this planning step, the cost center responsible person sees, which quantities of
which activity types are requested by others. He should now decide to plan the
activity output of his cost center. In the ideal case, he will plan exactly the quantities,
which are already scheduled. This can also be done automatically:
AccountingControllingCost Center Accountingplanningplanning
aidsplan reconciliation
Select cost center group and enter HAC040
Select no business processes
Version 0, from period 1 to 12, fiscal year 200x
Deselect test run, select detailed list and execute
the planned activity quantities have been changed to meet the scheduled activity
quantities.
Look up the result in the report planning overview (look to your favorites).
Demonstration of transfer of planned personal costs from Human Resources
15 Minutes
Now its time for the cost center responsible person to think about the costs incurred
by providing the requested activity types.
However, using the integration, many cost types are not planned by the cost center
responsible person himself, but are transferred from other plans.
Lets do some examples.
Show the master data records for our staff and transfer the plan data from HR, where
already a plan version exists.
Human Resourcespersonnel ManagementadministrationHR Master
Datadisplay
Personnel number 40
Look to infotype personnel data: mark the item and press push button show.
Return.
Look to infotype organizational assignment: mark the item and press push button
show. Return.
Ms. Johnson is assigned to cost center AC040
Press TAB Gross/net payroll
Look to infotype basic pay: mark the item and press push button show. Return.
Ms. Johnson earns usually 4400 uni per month.
Leave the master data record.
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15 Minutes
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15 Minutes
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Receiver.
the plan data was settled to cost center AC040 by using settlement cost elements.
Look up the result in the report planning overview (look to your favorites).
After this planning by integration, the cost center responsible person may now plan
additional cost manually.
AccountingControllingcost center accountingplanningcost and activity
inputschange
Version 0, from period 1 to 12, fiscal year 200x, Cost center AC040, delete the value
for cost center group, cost element 400000 to 419000, entry free.
Cost element 400000, fixed plan costs 42000 (enter an appropriate value. The total
cost amount on AC040 should result in cost of about 125000).
Now lets assume, that all data on our cost center is planned. We will finish by
calculating the activity type prices. First check the equivalence numbers. They
should be 1 for each activity type.
AccountingControllingcost center accountingplanningactivity
outputchange
Version 0, from period 1 to 12, fiscal year 200x, Cost center AC040, activity type
1420 to 1422, form-based. Press icon overview.
AccountingControllingcost center accountingplanningallocationsprice
calculation
Select cost center group end enter HAC040, select no business processes, Version
0, from period 1 to 12, fiscal year 200x, deselect test run. Execute.
!!Hint: the price of 1421 is different (except in January), because we couldnt
transfer the SOP plan for the previous months. This results in a different activity
quantity per month and therefore in a different price per period. Put the cursor on
activity type 1421 and press icon periods !!
Look up the result in the report planning overview (look to your favorites).
the cost center has now a balance of zero.
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falls under COs responsibility. Once the quantity structure/recipe is combined with
the value structure CO-PC can generate a costing result. The costing results can be
reviewed in three views. The most detailed is the itemization view, which is then
summarized into the cost element view, and finally the most summarized view is the
cost component view. The costing information is then passed along for use in other
application components.
15 Minutes
Remind the participants to the material master record, the BOM and the routing they
have seen before we did the SOP plan.
Create a standard cost estimate for material T-F100:
ControllingProduct Cost ControllingProduct Cost PlanningMaterial
CostingCost Estimate with Quantity StructureCreate
Material T-F100, Plant 1000, Costing Variant PPC1, Costing Lot Size 500
Press enter.
Costing date from today.
Note: In order to mark and release this cost estimate later during the course, make
sure you change the costing date reflects todays date. Accept all other dates as
suggested.
The result should show costs of goods manufactured of about 1170. (Dont
worry, if you have less or more in a range of about plus/minus 5%).
Once the cost estimate is completed you may wish to demonstrate some of new 4.6
features available in CO-PC. For example: Show the three views of the costing
results (the itemization view can be selected by the icon found next to the box
showing the cost component view cost of goods mgfd, the cost component view
icon is next to the itemization icon). Switch back to the itemization view. The cost
element view can be found by changing the display variant to SAP109 on the icon
bar directly below)
You may wish to display the cost of the various components of the product T-F100.
By moving to the left section a double clicking on the calc icon each components
cost will be displayed in this item (perhaps you have to enlarge the left section) and
in the detail section of the screen. The left section shows in addition a fully cost
BOM with all costs displayed (Show/Hide all items, expand/collapse subtrees).
Save the cost estimate. Mark in the pop up Itemization and Log.
Product Cycle
Highlights the typical life cycle of any product. You may wish to discuss the use of
Unit Costing to track costs during the first three stages of the product cycle.
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Overhead
Briefly discuss what role a costing sheet will play in Product Costing. The ability to
add costs for material and production overheads plus costs based on an estimate for
Administrative and Sales overheads allows for the calculation of the COGS value.
The following example may illustrate the costing sheet configuration:
Production Order XYZ
DR: Material cost element 400000 10,000 (goods issue posting)
DR: Overhead cost element 655110 1,000 (Overhead calculation)
Cost Center 4130:
CR: Overhead cost element 655100 1,000
10 Minutes
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Return to the previous screen and leave the display list of marked materials.
10 Minutes
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20 Minutes
Emphasize to use todays date as the costing date. This part of the exercise has the
students review the integration of the activity price and the product cost estimate and
it has them create a product cost estimate. When the exercise is complete remind the
students that a NEW standard price was just set for their products. It is important
that controls are in place to prevent an inadvertent price update.
Planning with ABC
Product cost planning using ABC
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15 minutes
Make sure that students select the Cost of Goods sold cost component view.
Otherwise only process costs for material handling can be found.
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180 Minutes
Posting Logic
This slide demonstrates the posting entries that place with a simple FI posting.
Discuss the Debit/Credit posting in FI (required) and the single debit post in the CO.
This concept will be new to your students. Also highlight that the FI posing must
have a CO cost object included as a reference. Additionally, review the link between
the FI expense number and the CO primary cost element.
Real versus statistical Objects in CO
Again a new concept to most students. The fact that CO can accept multi postings
from only one FI transaction. Point out one posting will always be real and the
others will be statistical.
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20 minutes
Start your demonstration with a simple two-sided journal entry in FI and explain the
effect on CO.
AccountingFinancial AccountingGeneral LedgerDocument EntryGL
Account Posting
Note: if prompted by the system enter Company Code: 1000
Document Date: Todays date
Select Screen Variant: Cost Center
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Post the FI document. You may want to display the document after posting in FI and
show the accounting documents which were created with this transaction.
DocumentDisplayEnvironmentAccounting Documents
Display the posting in Cost Center Accounting by running a Plan/Actual
Comparison Report for Cost Center SERV-00
AccountingControllingCost Center AccountingInformation SystemReports
for Cost Center Accounting Plan/Act comparisonsCCtr: Actual/Plan/Variance
Drill down to the original document. Explain the sequence of first drilling down to
the CO line item, and then to the financial accounting document. Show the line item
detail screen to display the cost center assignment.
Issue materials to a cost center. A practical application here is the R & D cost
center requests materials stored in the warehouse for the development of a new
product prototype.
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15 minutes
LogisticsMaterial ManagementPurchasingPurchase OrderCreateVendor
supplying plant known.
Vendor: 1000
Open Header Data and Check the following info:
Purchasing Organization:1000
Purchasing Group: 000
Company Code: 1000
Open item overview if required:
Account Assignment Category: K (hint column headed with A)
Material: T-T200
PO Quantity: 10
Delivery Date: Today
Net Price: 50.00
ENTER KEY Item Screen
Enter Cost Center SERV20
SAVE Record the PO number
Run a cost center commitment line item report, and drill down to the purchase order.
Accounting ControllingCost Center AccountingInformation
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ENTER KEY
The details of your purchase order should be displayed.
OPEN the Item Details section:
Click the OK button at the bottom of the details section
Save the Goods Receipt, display it and show the accounting documents now created
.
20 minutes
Putting the Topic in Context:
Mktg. Cost Center 3200 Trade Fair Expense Cost Center Debits w/out
Recurring Expense Internal Order Stat. Post stat posting in IO
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15 minutes
Create a statistical order for a service truck which is operated by the Service cost
center:
AccountingControllingInternal OrdersMaster DataOrderCreate:
Order Type: 1000
Enter Key
Order Description: Truck-20
Change Business Area To: 9900
Enter Responsible Cost Center: SERV-20
Select Control Data tab and point out the Statistical Order switch. Explain that
statistical orders are never settled. Save your order and note the order number.
(should be Truck-20)
Next post a FI journal entry against the internal order, use account number 475000
for the debit side of the entry, account 113100 for the credit entry. When pressing
enter point out that the system issues an error message regarding an assignment to a
CO object. Now enter the service cost center number and complete your posting.
Note: You may have to change the screen variant to Standard 3 to see both
the cost center and IO posting options. Also, you will have to scroll the right to
see both options
Process the Order Actual/Plan/Variance report for the current period.
Accounting ControllingInternal OrdersInformation SystemsReports for
internal Orders Plan/Actual Comparisonsorders: actual/plan variance
Drill down on the IO posting and show the cost accounting doc.details to highlight
the double posting in CO.
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20 minutes
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Demonstration of Reposting
10 minutes
Enter a GL entry (you may want to do this ahead of time) and note the document
number. Use the service cost center SERV-20 and account number 403000. Run a
plan/actual comparison report for the cost center and drill down to the original
document. Suggest a FI posting of at least 500 to help illustrate the point more
completely.
Enter the reposting screen and repost some costs from cost center SERV-20 to cost
center PROD-20.
AccountingControllingCost Center AccountingActual PostingRepost Line
items Enter:
Enter you FI Doc. number:
Company Code: 1000
Fiscal Year: 20XX
Press: Execute button
You will see the original amount posted to cost center Serv-20
To redistribute the cost highlight the line and overwrite the original amount
with 100 Unis and Serv-20 cost center with the new cost center Prod-20
Press the enter key
The screen will change to show the new posting to Prod-20 and the remaining
balance in the Serv-20 cost center.
Note: If you have a real order and it is in release status you can repeat the process
and post an amount to the IO.
Run the plan/actual comparison report again, this time for cost center PROD-20 and
drill down to the actual line items for cost element 403000. In addition you may
want to show the original FI entry which has not changed.
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10 minutes
Note: Be sure you have an activity price assigned to SERV-20 and REP-20 prior
to this demonstration. the activity allocation:
AccountingControllingCost Center Accounting Actual PostingsActivity
AllocationEnter
Sender: Cost Center SERV-20
Receiver: Cost Center PROD-20
Activity: REP-20
Total Quantity : 50 hours
Run a plan/actual comparison report for each cost center.
Time Sheet
Instead of using the above process to allocate costs for services performed for
various departments, cross-application time sheets provide another way to charge
activities directly to controlling objects. The concept is that the employee who
performed the repair hours logs these directly into an electronic time sheet. The debit
to the cost center who received the service and the credit entry to the cost center who
provided the services are automatically performed in the background.
10 Minutes
AccountingControllingCost Center AccountingActual PostingsTime
SheetTime dataEnter Times
Data Entry Profile: CO
Personnel number: 1020
Select Enter Times
Sender Cost Center: SERV-20
Activity Type: REP-20
Receiving Cost Center: PROD-20
Enter 8 hours in todays date column and press the enter key.
Select the Release View button from the bottom of the screen, which changes the
screen to a different status.
Mark the row with the data you entered and select Release View (Icon looks like a
lock) from the top icon bar. Save.
To transfer the data to CO, move back the SAP Easy Access menu
AccountingControllingCost Center AccountingActual PostingsTime
SheetTransferAccounting
Enter Personnel Number: 1020
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30 Minutes
If you are running into time constraints you may want to make the time sheet
exercise optional.
10 minutes
The concept here is to use budgets for an order to control and manage the cost
incurred during the orders life. Each time a posting is made to the order the system
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First enter the order budget for your trade fair order:
Accounting Controlling Internal Orders Budgeting Original
Budget Change
Enter 20,000 in the current year column for your trade fair order (created in unit 3)
and save.
Accounting Financial Accounting General Ledger Document Entry GL
Account Posting:
Post a journal entry for account 400000 for 19,500 to your internal order and explain
the budget-warning message.
Post another journal for the same account number for 2,000, which will bring the
budget slightly over 100%. A warning message will appear saying that the budget
has been exhausted. Make sure you are listed and the budget manager for order type
0400. This will allow messages to flow into you mail box to highlight the messaging
feature of availability control.
After the students have completed their exercise, display the mail messages created
by displaying the Inbox for your ID.
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20 min.
Check: the assigned planner profile for order type 0400 is 000001. The
costing variant PC02 is assigned to that planner profile.
Enter execution profile 1300 in the appropriate field of the order type. You
can use the item maintain planner profile for overall planning maintain
planner profile for order type.
Call up the report Plan/actual/variances for the internal order by using the
menu path
Controlling internal orders information system reports for
internal orders plan/actual comparisons
You will see the planned data.
Note: depending on the costing variant it may be, that the plan data will show
up in the next period.
Execution services:
Select your order by clicking on the order number in your personal worklist.
If necessary change to the display mode.
Press costing.
Press show item view and show execution services.
Select Execution Service internal activity allocation.
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Call up the report Plan/actual/variances for the internal order by using the
menu path
Controlling internal orders information system reports for
internal orders plan/actual comparisons
You will see the plan data and the actuals posted.
Note: depending on the costing variant it may be, that the plan data will show
up in the next period.
Call up the report Plan/actual/commitments for the internal order by using the
menu path
Controlling internal orders information system reports for
internal orders plan/actual comparisons additional key figures
You will see the commitment for the purchase requisition.
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Delivery to Stock
Use this slide to introduce the students to the goods issues, confirmation postings
and the delivery to stock postings. You can describe the typical cost that are
posted with each posting activity. Since they will be doing these posting in the
upcoming exercise sets it is a good place to provide an overview of the upcoming
demonstration and exercises. Also, highlight the remaining balance on the order.
Point out this could be treated WIP or production variance depending on the
confirmation status of the order.
30 minutes
This part of the demonstration illustrates the concepts of cost object controlling and
simultaneous costing.
IMPORTANT: Prior to this demo you will need to add stock to inventory
for the following materials:
T-B100, T-B200, T-B300 & T-B400
Use movement-type 561 and add 300 each.
LogisticsMaterials ManagementInventory Managementgoods
movementgoods receiptother
Movement type 561, plant 1000, storage location 0001, then press enter
In the item overview, use menu path:
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MRP Planning
LogisticsProductionMRPPlanningsingle-item, multi-level
Material T-F100, plant 1000, press enter (2 times)
Look up the result via
LogisticsProductionMRPevaluationsstock/requirements list
Material T-F100, plant 1000
the system has created planned orders to cover the requirement.
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Reportsfor orders
Enter your order number and execute
Select layout 1SAP02 Cost trend.
In order to have this layout as default, save it as /AC040, select default setting and
enter.
you see the planned costs calculated when you saved the production order. The
planned quantities are valuated with the prices according to the valuation variant.
The goods receipt quantity is valuated with the standard price.
!! Hint: Since we will need this report more often, copy it to your favorites !!
Look up the result in the order report. Drill down to the line item and from there to
the accounting documents: environmentaccounting documents
Show the original document, the accounting document and the profit center
document.
Confirmation
Now confirm your order with a partial confirmation of 80 pieces. Operation 60 has
been set up as a milestone operation, which means if it is confirmed, all preceding
operations will be confirmed as well. The way the system has been configured, a
goods receipt posting will be executed at the same time (movement type 101).
ProductionProduction ControlConfirmationenterFor OperationTime
Ticket
Enter your Production Order number:
Oper:/activity: 60
Confirmation type: confirm partial flag set
Press enter
the planned quantity and the target activity type quantity show up
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Confirm 80 pieces
Press Enter
the target activity type quantity is adjusted.
Enter Time: 18 hours in labor block
Save
Note: There may be several warning messages by pass them by using the enter key
repeatedly. Also, you may not see a posting doc. number.
Look up the result in the order report. Drill down to the line item and from there to
the accounting documents: environmentaccounting documents
Show the original document, the accounting document and the profit center
document.
Direct posting in FI
Post a direct FI journal posting against the production order the example here may
be that an external service had to be purchased to produce the pumps on time.
AccountingFinancial AccountingGeneral LedgerDocument Entryenter GL
Account Document
Use account 415000 and post 1000.00 assigning it to your production order. Enter
the credit entry and post your document.
Look up the result in the order report. Drill down to the line item and from there to
the accounting documents: environmentaccounting documents
Show the accounting document and the profit center document.
30 Minutes (minimum)
Make sure all the students load the inventory of the components that make up their
pumps. i.e. T-BXXXs,
.
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20 Minutes
Create a sales order line item for the pumps manufactured in the previous exercise:
LogisticsS&DSalesOrderCreate:
Order Type: OR
Sales organization: 1000
Distribution channel: 10
Division: 00
Enter>
Sold-to-Party 1000 Ship-to Party 1000
PO Number 1000##
Material T-F100 for 80 pieces
Enter
Show the pricing for the item by selecting the item and the Item Condition button
at the bottom of the screen (looks like a coin).
Select the Schedule lines button to show when the item will be delivered. The
delivery date defaults from either customer master or material master settings.
Select Account Assignment. The profit center is driven (in this case) by the
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material assignment to a profit center. By selecting the PSG box you demonstrate
the profit segment this item will be posted to. Point out that a profit segment is a
unique combination of characteristics and characteristic values.
Process a delivery of the pumps to your customer:
LogisticsS&DSalesOrderSubsequent FunctionsDelivery
Shipping Point Enter: 1000
Date Field: Todays date + 2 weeks
Confirm you sales order number:
Enter
Select the Picking Tab
Confirm Delivery Quantity of: 80
Enter Picked Quantity of: 80
Select Post Goods Issue button: confirm SD document number
Now bill the order per the menu paths and instructions in the student exercise set.
Finally you may wish to go back into your sales order in display mode. Once there
move to the environment option and display the document flow option. This shows
all the documents created and ties back the first slide in this topic, Customer Order
Management
20 Minutes (minimum)
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300 Minutes
5 minutes
Associate this demo with the purpose of statistical key figures discussed in the
master data chapter.
AccountingControllingCost Center AccountingActual PostingsStatistical
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Key FiguresEnter
Enter: Dates: Doc. Date: Current Date
Posting Date: Current Date
Enter Data: Rec CCtr: PROD-20
StatKF: EMPL20
Quantity: 5
5 minutes
Enter a GL posting for cost center SERV-20, cost element 420000 for 10,000 for the
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current period.
Execute the Accrual cost calculation:
AccountingControllingCost Center Accounting Period-end ClosingSingle
FunctionsAllocationsActual Overhead
Cost Center: SERV-20
Period: Current
Fiscal Year: 20XX
Remove test run button, select Detailed List
Explain the cost center was debited, the credit entry went to an internal order. When
the actual FI expense has been incurred, that expense will be posted to the internal
order instead of the cost center. Any balances left on the internal order can then be
settled periodically.
10 minutes
You may want to re-iterate why to use assessment versus distribution or reposting
cost allocation options.
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Sender Values:
Rule: Posted Amounts
% Field: 100
Act. Values ON
Note you will get an information message at this point just key through it.
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Processing Table:
Background: OFF
Test Run: OFF
Det. Lists: ON
Cycle: AAC-20
Start Date: Default
Review the Results of the Assessment Cycle posting by use of the Cost Center
Reporting Tools
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10 minutes
Assign overhead costing sheet COGS to the trade fair order you created in the
previous unit. You may have to increase you order budget for this one to work.
Overhead calculation will be explained in more detail later.
AccountingControlling Internal Orders Master DataChange:
Access the Period-end Closing tab and assign costing sheet COGS to your trade
fair order.
Next run overhead calculation:
AccountingControllingInternal OrdersPeriod EndSingle
FunctionsOverhead RatesActuals-Individual processing :
Your order number:
Current Period and Year
Test run: OFF
Dialog display: ON
Execute
Order Settlement
First remind the students that only real orders can be settled.
The allocation technique used in conjunction with internal orders is called
settlement. The order will be periodically credited and a receiver will be debited with
cost. Internal orders are more flexible than cost centers as far a settlement receivers
go in fact settlement can be to balance sheets and P&L accounts if desired.
Parallel to distribution and assessment, internal orders offer settlement with primary
(original) cost elements as well as secondary cost elements. A settlement rule
establishes the sender and receiver relationships as well as how much each receiver
will receive during settlement (analog to tracing factors). Variable portions (i.e. Stat
Key Figures) are not available as tracing factors.
Explain the debits and credits to the senders and receivers using the figures on the
slide, or illustrate the settlement transactions using the trade fair order.
30 Minutes
There appears to be a problem with everyone executing his or her cycles at the same
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time, even with ENQUE OFF. The best way to proceed seems to be to have students
run cycles one after the other. Make sure students run settlement for the CURRENT
period only, take the test run off, and have a settlement rule set on their internal
order. Also, the students will set up cycle groups per their exercise instructions you
may want to review these steps prior to class.
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5 Minutes
You may want to calculate cost center variances for your services cost center if time
allows and drill down to one of the variance categories. Since variances are
explained again when talking about production orders you may decide to skip this
demonstration.
AccountingControllingSingle FunctionsVariances
Cost Center: SERV-20
Version: 0
Period/Year: Current
Detailed List: Yes
Drill down to the variance category for an explanation how a variance was calculated
the R/3 system provides a very detailed analysis tools which points to the root cause
of a variance.
First select the line items, then the cost element button. Select on of the variance line
items and the variance information button.
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10 Minutes
The purpose of this exercise/demo is to allocate process costs, in this case order
handling costs to actual product costs you may want to first display the product
cost estimate for product T-F100 and show the planned process consumption
quantity.
AccountingControlling Product Costing ControllingProduct Cost
PlanningMaterial CostingCost Estimate w. Quantity StructureDisplay:
Product T-F100
Costing Variant: PPC1
Plant: 1000
Select the screen variant SAP01 to group the costs which will highlight the process
costs
Next go to the Production Control menu and execute the process cost allocation.
NOTE: Inform the students that the month end menu path used in COC is
available in both the Logistics and CO applications.
LogisticsProductionProduction ControlPeriod-end closingTemplate
allocationIndividual processing:
Enter your Production Order number:
Version 0
Period/Year: Current
Test run: No
Detail list: Yes
Execute
Demonstration of Overhead Calculation
5 Minutes
LogisticsProductionProduction ControlPeriod-end closingOverhead
CalculationIndividual processing:
Enter your Production Order number
Period/Year: Current
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Test run: No
Detail list: Yes
After the overhead calculation has been run, show a report which reflects the actual
versus target costs on the production order up to this point:
ProductionProduction controlInformation SystemControlling
ReportsProduct Cost by Order Select: Detailed ReportsFor OrdersVariance
AnalysisPlan/Actual Comparison
Expand the detail for a cost element by double clicking on it (itemization view).
Review the costs posted by the process allocation and the overhead calculation
demonstrations.
15 Minutes
Make sure students run overhead calculation for the CURRENT period, and turn the
test run indicator off.
5 minutes
The assumption for this demonstration is that to-date only 80 pieces of our
production order have been delivered, it is the end of the accounting period and still.
20 pumps remain to be completed, and therefore the remaining order balance needs
to be valuated as WIP.
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Finally complete the period end closing demonstration by the settlement of your
production order. Explain to the students this is a vital step at month end as of yet
there have been no posting made to FI. In other words the order balance is recorded
in FI as expense and need to be reclassified as WIP balance to the FI balance sheet.
(Same with PCA)
To post the FI WIP entry, settle the production order.
LogisticsProductionProduction ControlPeriod-end
closingSettlementIndividual processing
Enter your Production order number:
Settlement Period: Current Period Fiscal Year: 20XX
Processing Type: Automatic
Log Information Message: Yes
Select the order number and then Receivers to illustrate the accounting documents
created by this entry specifically FI and PCA.
The credit is posted to P&L account 893000 Inventory in Process on the production
order
The debit is posted to account 793000 WIP on the balance sheet
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5 minutes
Since the order is now completed and it is period end once again, the same period
end closing steps are repeated. Explain to your students that you will not repeat all
the same steps in the interest of time. However, the new WIP balance will be
calculated, variances analyzed and finally the order will be settled to post the new
WIP balance and variances totals to FI, CO-PA and PCA.
LogisticsProductionProduction ControlConfirmationEnterFor
OperationTime Ticket:
Enter your Production Order number:
Oper/activity: 60
Confirm type: CHANGE TO FINAL
Yield: 20
Save the confirmation
Run a CO Report for the Production order to show the debits posted to the
production order:
ProductionProduction controlInformation SystemControlling
ReportsProduct Cost by OrderFor OrdersActual Costs
Note the remaining order balance and explain these costs will be treated as variance
since the order is now in a final confirmed status.
5 Minutes
Since the order in complete now the previously executed WIP balance must be
reversed. The WIP balance posting from the earlier exercise (period) is still in FI
and must be driven to 0 since the remaining balance on this order is all variance.
The calculation is executed the same way as earlier WIP calculation:
LogisticsProductionProduction ControlPeriod-end closingWork-in-
processIndividual processingDetermine
Enter your Production order number
WIP to Period: Current Period
Fiscal Year: 20XX
RA Version : 0
Test run: Off
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5 minutes
LogisticsProductionProduction ControlPeriod-end
closingVariancesIndividual Processing:
Enter your Production order number
Current Period:
Current Year: 20XX
All target cost versions
Test run: off
Select the order number and the cost elements button variances are now broken
down by cost elements.
Alternately, select the order number and the Detail button to view a break down
into the individual variance categories.
Select one of the cost elements and select the I Variances button. Scroll down to
the lower portion of the screen where a detailed explanation is found how the system
calculated the variance.
Demonstration of Settlement
5 minutes
Follow the same menu path and procedure used in the earlier order settlement.
When you have completed the final settlement run another cost report for your order
and discuss the fact that the order balance is now zero.
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LogisticsProductionProduction ControlPeriod-end
closingSettlementIndividual processing
Enter your Production order number:
Settlement Period: Current period Fiscal Year: 20XX
Processing Type: Automatic
Log Information Message: Yes
Select the order number and then Receivers to illustrate the accounting documents
created by this entry specifically FI and PCA and PA.
30 Minutes
NOTE : You may wish to have the students complete these two exercises at the same time
30 Minutes
This exercise takes the students back into SD sales order. They are asked to set up
another sales order this time for a service, the installation of the pumps at the
customer site.
Hint- Many students by this time in the class may choose to by pass this exercise.
Period-end postings in Actual Costing/ML
Note objectives indicate the students will have exercises, however there are none.
Keep the discussion of this topic very summarized and remind the students that more
detailed information is available in the level 3 classes
Review Actual Costing
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5 minutes
Optional demo:
You may show the result of actual costing, which was already carried out in the
system.
AccountingControllingProduct Cost ControllingActual Costing/Material
LedgerActual Costingedit costing run
Costing run AC530, period 1 2000, press enter.
Press icon costing results
Put the cursor on the node AC530 31.01.2000 and press icon display material
list. Select layout 1SAP02 Price analysis.
you see, that we have variances between the standard prices, e.g. for ACT-
DCD00 in plant 6000, and the periodic unit prices.
If you want to see, where they come from, just doubleclick on the material number
ACT-DCD00 and you branch down to the material price analysis. By expanding the
nodes receipts and production you can see, which portion of the variance was
caused by which procurement alternative.
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15 Minutes
The exercise takes the students back into reporting in CO-PA. You may wish to
work the exercise in front of the class to save time. Use the AC040 report that is
available in CO-PA. You can demonstrate the 3 views of this report.
Hint- Many students by this time in the class may choose to by pass this exercise.
Value Flow in EC-PCA ( 3 slides)
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Reconciliation Ledger
Explain the purpose of the Reconciliation Ledger.
Execute some reports to enable the reconciliation between FI and CO
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the CO external transaction, the costs may have been allocated across business areas
and company codes in CO. Since statutory reporting is compiled in FI, reconciliation
postings to FI may become necessary. You may want to draw the following example.
Original FI Posting: GL Account 400000 Company Code 3000 DR Amount $500
GL Account 113100 CR Amount $500
CO Allocation Posting Cost Element 400000 Company Code 3000 CR Amount $500
Cost Element 400000 Company Code 4000 DR Amount $500
5 Minutes
Unless you have made any postings across company code the only meaningful
demonstration of the recon ledger reports would show cross business area reports.
First, run the reconciliation ledger for company code 1000 in test mode.
COCost ElementsActual PostingsReconciliation with FI
On the detail list screen, point out the business area/partner business area logic, as
well as the amount to be reconciled. The GL account is the account number in FI the
posting will be made to.
Next run a reconciliation report to display cost flows across business areas in the
information system:
COCost ElementsInformation systemReport SelectionCost FlowCelem:
Business Area Allocation
Select the variation icon looks like a hierarchy graphic, and select Mechanical
Engineering for current settings.
From the same screen, select TR. Part BA ( the business area costs came from) and
select Corporate Other
The report now displays cost flows between these two business areas.
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10 minutes
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Unit: ASAP
Unit Objectives:
Explain the benefits of ASAP
Mapping
Blue paper
Documentation
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Unit Objectives:
What were the objectives of the course
Recommended follow up courses
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