SAP CO NOTES
INDEX PARTICULARS CO Areas and Basic Settings for Controlling
Cost Center Accounting Online Reconciliation Leger 1. Creation of
GL Masters 2. CO Customization 3. FI Customization Cross Company
Code Postings Maintain Overhead structure Statically Key Figures
(SKF) Assessment Internal Orders Budgeting and Availability Control
Profit Center Accounting Integration 1. Transaction Key /Process
Key 2. Valuation Class 3. Assignment of accounts 4. MM
Customization 5. FI Consultant job in MM 6. Assignment of Accounts
for Automatic Postings(MM to FI) 7. FI Consultant job in SD 8. SD
Steps 9. Co-Profitability Analysis (CO-PA) 1. Data flow in CO-PA 2.
Customization 3. SD End user area Report Painter Product Costing 1.
Co Consultant Job (Activity based costing) 2. PP Consultant job 3.
CO End User area 4. MM End User area 5. PP End user area Actual
Costing 1. CO Consultant job 2. PP consultant area 3. Asset
Accounting area New General Ledgers (ECC 6 New Features ) 1 Page
No. 3 11 23 25 27 28 31 34 38 42 46 60 64 76 77 78 89 90 97 100
115
120 120 122 126 129 132 134 144 146 147 149 153 153 167 174
179
1. Customization 2. Document Splitting Central Excise and Sales
Tax 1. Central Excise Customization (Purchase) 2. Central Excise
customization (Sales) 3. SD End user area Financial Statement
Version Asset Accounting Area Project Report
180 188 192 195 211 217 228 237 238
CONTROLLING (CO) This is used for internal reporting in Co
organizational Hierarchy Highest node is controlling area. In FI
Highest node is company , Company code CO AREAS : 1. Cost Elements
Accounting: To update Co records / sub modules cost elements are
required.
There are two types of cost elements 1. primary cost elements 2.
Secondary cost Elements 2. 3. Cost Center Accounting: This is used
to view department wise costs. Internal orders: This is used to
view costs for specific task. Eg: Vehicle wise running expenses /
Petrol expenses, Repairs to that Vehicle, Telephone wise expenses
production order costs / Exhibition costs. Create each vehicle as n
order and capture the costs Production order: Create production
order as on internal order and capture the costs. Exhibition costs:
Sales men salaries , Advertisement discounts to customers
conveyance. Create a exhibition order 4. Profit center accounting :
This is used to view profitability product wise / Division wise /
Location wise if business area is not used in FI Product Costing
:This is used for valuation if inventories
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2
6.
Eg: Finished goods and work in process. Profitability analysis:
This is used to view profitability for number of parameters at a
time. Eg. Sales order wise / Customer wise / Product wise / Plant
wise / Sales organization wise profitability this is reporting
tool
BASIC SETTINGS FOR CONTROLLING: Maintain controlling area FI
Organization Structure Company | Company code | Business area
Scenario 1 Company | Company code | Business area CO. Organization
Structure Controlling | | | Cost Center
= ---
Controlling Area | Cost Center
(a)Controlling area at company code level, b)Business area will
be assigned in cost centers.)
Scenario -2 Company | Company code | Business area = Controlling
Area | | | Cost Center
---
(a )Controlling area at company (group) level no. of company
codes will have one controlling area, b) Business area will be
assigned in cost centers.
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1) When management wants to view number of company codes cost
centers data at a time It is not possible in 1st Scenario It is
possible 2nd scenario. In report it will ask only one controlling
area and not multiple controlling area. 2) When management wants to
view number of cost centers data of company code Directly it is
possible in 1st scenario. Also it is possible in 2nd Scenario By
creating cost center groups. It means 2nd Scenario is more
flexible. MAINTAIN CONTROLLING AREA: Path : SPRO Controlling
General controlling Organization Maintain controlling area (Tr.Code
is OKKP) If we go for 1st scenario company code should be the
controlling area. If we go for 2nd scenario we can use any code for
controlling area code. Double click maintain controlling area.
Select new entries button Controlling area Name Company code to
controlling area Currency type :BIL :controlling area forBIL :
Select controlling area same as company code : select 10 company
code currency.
Once we select 10 company code currency , currency field, Chart
of Accounts filed and Fiscal year variant filed will be updated
automatically. Cost Center standard hierarchy : BILHIER Save Select
yes button for the message system to create as a standard hierarchy
Select create request button Short description : Co customization
for BIL Press enter Press enter once again to save in the request.
COST CENTER STANDARD HIERARCHY: Cost center standard hierarchy :
BILHIER | Cost centers Dept. A
Dept.B
Dept.C
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At the time of cost center creation It will ask under which
hierarchy we are creating the cost centers. In the report when we
give cost center Dept.A It gives only Dept.A date. When we give
cost center Dept.B It gives only Dept.B date. When we give cost
center hierarchy BILHIER It gives all the cost centers data.
Double click on assignment of company codes folder Select new
entries button Give the company code : BIL Select save button or
Ctrl+S Press enter to save in your request Double click on a
activate components / control indicators folder Select new entries
button Fiscal year Cost center :2007 : Select component active
Select active type check box Order management select component
active. Select profit center accounting check box Save Ignore the
warning message press enter MAINTAIN NUMBER RANGES FOR CONTROLLING
DOCUMENTS: 1. CO through posting from FI (Business transaction COIN
CO No rang interval for the business transaction COIN FI Document
type And no.ranges SA | 01 Co
COIN | |
5
| 1-100000 Manual posting F-02
1-00000 Automatic posting
1. Repost Co line items (Business transaction RKU3) Option 1
Posting in FI Wages A/c Wages A/c Wages A/ To bank 1 1 Dr Dr Dr
100000 200000 300000 600000 Dept.A Dept.B Dept C
FI Document Co Document COIN
Note :Automatic posting is a business transaction Option 2
Posting in FI Wages A/c Dr 600000 Posting in CO Dept common
Dept.common Dept. Common Post Co line item Dept A Dept B Dept C
100000 200000 300000
To Bank 2 1 1
600000
Documents FI Document CO Document COIN
No FI document 1 CO Document RKU3
Transfer document wise/line item wise Total documents generated
1. 2. Wages A/c FI Document CO Documents Dr 600000 Dept Common Dept
A 300000 Dept Common Dept B 200000 Dept Common Dept C 300000 Dept
A
Rent A/c
Dr
50000
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To bank Transfer line item wise
650000
Repot CO line item
Transfer document wise / Line item wise Report costs ( Business
transactions RKU1) This is used when we split the cost center into
number of cost centers or transfer for wrong cost center postings.
No FI document will be generated CO document only will be generated
Transfer cost element wise (GL Account wise) 01/07/2007 split into
Dept A and Dept X Dept A 30/04/2008 30/05/2008 30/06/2008 400100
Salaries 200000 400100 Salaries 250000 400100 Salaries 275000
---------400100 total 725000 400101 wages 400101 wages 400101 wages
100000 150000 125000 ---------375000 Rent Rent Rent 500000 50000
50000 -------150000 Dept X
400100 Salaries 200000
30/04/2008 03/05/2008 30/06/2008 Total 400101 30/04/2008
31/05/2008 30/06/2008
400101 wages 125000
400300 400300 400300 400300 Total
400300
Rent 40000
Planning primary costs ( Business transaction RKP1) Planning
cost center wise or no. range interval for all the types ,
budgeting cost center wise for each cost element. Path: SPRO-
Controlling General controlling Organization- Maintain number
ranges for controlling document (T.Code is KANK) Controlling area :
BIL
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Select maintain groups button From the menu select group Insert
Text: Co doc no. range interval for BIL From number :1 To number
:100000 Enter Double click on business transactions COIN RKU3 RKU1
RKP1 Select Co.No.range interval for BIL check box From the menu
select Edit Assignment element group Save Ignore the message press
enter Note :Usage of Version locked authorized person only Eg; Cost
Accountant MAINTAIN VERSIONS: Version are nothing but budgets
Original budgets Revised budget Re revised budget Version 0 version
1 Version 2
We can compare actual with original budget, Revised budget and
Re revised budget Path: SPRO Controlling General controlling
Organization Maintain versions Select version 0 (Plant /actual
version ) Double click on settings for each fiscal year folder Give
the controlling area Enter Select new entries button Fiscal year
Exchange rate type :2008 :select B (Bank selling rate) : BIL
Once budgeting is completed at end user are a select version
locked So that no body can change budget figures.
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Select save button or Ctrl+S
Press enter to save in your request Select bank arrow Planning
is made attend user area after plannings completed we select
version locked check box , no body can change planned figures.
COST ELEMENT ACCOUNTING: To update CO records / sub modules cost
elements are required There are 2 types of cost elements 1. Primary
cost element A)Primary cost elements are our general ledger
accounts B) Posting to primary cost elements are possiable 2
Secondary cost elements A)Secondary cost elements are other than
general ledger accounts B) Postings to secondary cost elements are
not possible. They are used to allocations / Settlements Dept C
Dept A Dept B (Service Dept) (Production Depts) Salaries 100000
Wages 200000 Power 5000 In the month end, by using secondary cost
element, we allocate costs from service to production Depts. COST
ELEMENT CATEGORIES
PRIMARY COST ELEMENT CATEGORIES: 1. Primary cost / costs
redacting revenues. This used for expenditure accounts 3. Accrual /
Deferral per surcharge :This is used for month end provisions only
in CO 11. Revenues: This is used for income accounts 12. Sales
Deduction: This is used for expenditure accounts like sales
commission Trade discount where CO-Profitability analysis module is
activated 22. External settlement( Settlement from CO FI): This is
used for allocation of internal order settlement to GL Accounts /
Assets.
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SECONDARY COST ELEMENT CATEGORIES: 21. 31. 41. 42. 43. Internal
settlement (Settlement from CO to CO) This is used for allocation
of internal order settlement cost to cost centers. Order/ Project
Results analysis: This is used for work in process calculations is
product costing. Overheads rates :This is used for calculation of
raw material overhead rate / Production overhead rate in product
costing . Assessment: This is used for allocation of primary cost
element posing and secondary cost postings from one cost center to
other cost centers. Internal Activity Allocation: This is used for
calculation of activity types in production cost. Eg: Machine hours
rate / labour hour rate in product costing.
COST CENTER ACCOUNTING This is used to view department wise
costs we use cost center accounting. 1. Creation of primary cost
elements, we can create A) FI Area | B)CO Area |- Co Area
C)Automatic creation | 2. Display cost elements created 3. Creation
of filed status group by making cost center required entry field 4.
Assign new filed status group in GL expenditure accounts 5.
Creation of cost centers. 6. Creation of cost center groups. 7.
Creation of cost element groups 8. To enter exchange rate for type
M for INR to Euro 9. Posting of transaction in FI 10. To view cost
center wise report. 11. To view CO documents 1. A) Creation of
primary cost element at FI area Use to FS00 GL masters creation
Give the GL account number : 400100 Salaries Account Company code :
BIL Form the menu select GL Account display Now select edit cost
element button Valid from date :01.04.2008 To date :31.12.9999
comes automatically Enter Cost element category : Select 1 (Primary
cost / cost reducing revenues) Select save button or Ctrl+S
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1. B) Creation of Primary cost element at CO area: Use
transaction code FS00 Path: Accounting- Controlling- Cost element
accounting-Master data-Cost element Individual processing-Create
primary (Tr.code KA01 ) Cost element : 400300 Rent Account Valid
from :01.04.2008 to 31.12.9999 Enter Cost element category :1
(primary cost /cost reducing revenue) Save 1. C) Automatic creation
of primary cost elements: 1) Marked default settings (OKB2) path :
SPRO-Controlling-Cost element accounting-Master data Cost elements
Automatic creation primary and secondary cost elements-Make default
settings.(Tr.code is OKB2) Give the chart of Accounts : BIL Enter
Account from :400301 Account to :499999 Cost element category
select 1 Save Press enter to save in your request Create batch
input session (OKB3) Same path as above Give the controlling area
Valid from Valid to Session name Execute Execute batch input
session (Tr code is SM35) Same path as above Select session name
Select process button Select session :BIL : BIL : BIL :01.04.2008
:31.12.1999 :BIL (This is text field)
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Select display errors only radio button Select process button We
get a message processing of batch input session completed. Ignore
the message & select exit batch input button
Display primary cost elements created (KA03) Path:
Accounting-Controlling-Cost element accounting-Mater data-Cost
element Individual processing Display- (Tr code is KA03) Select
drop down button beside cost element Give the Controlling area :
BIL Enter Creation of field status group by making cost center
required entry field: (Tr.Code is OBC4) Select field status
variant: BIL Double click on filed status groups folder 100000
equity share capital G001 We cant make cost center required for
balance sheet accounts G001 For G004 we make cost center required
and assign in salaries account (i.e in expenditure accounts)
400100 Salaries Account
Double click on field status group G004 cost accounts Double
click on General data Text make it required entry field Select next
group button Cost center select required entry filed Select next
page or page down button two times. Business area make it option
entry filed Save Press enter to save in your request
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Assign group new field group in GL expenditure accounts (FS00)
Give the GL account 400100 salaries account Company code :BIL
From the menu select GL account change select create / Bank /
Interest tab Filed status group change to G004 Save Give the GL
Account No.400300 Rent A/c Company code :BIL
From the menu select GL account change Change field status group
to G004 Save Creation of cost centers: Path:
Accounting-Controlling-Cost center accounting-Master data-Cost
centerIndividual processing-create (Tr.code is KS01) Cost center
Valid from Enter Give the name Give the description Person
responsible Cost center category Hierarchy area Business area
Currency Select save button or Ctrl+S Ignore the warning message
press enter One more cost center Valid from Reference cost center :
Dept B :01.04.2008 to 31.12.9999 : Dept A : Dept A : Dept A :Mr.A :
Select 1 production : select BILHIER :BILH :INR : Dept A
:01.04.2008 to 31.12.9999
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Controlling area Enter Change the name to Dept B
: BIL
Change the description to cost center Dept B Change the person
responsible Other fields are common Select save button Ignore the
warning message press enter Cost center Valid from Reference cost
center Controlling area Enter Change the name to : Dept C : Dept C
:01.04.2008 to 31.12.9999 : Dept A : BIL : Mr B
Change the description to cost center : Dept C Change person
responsible to Mr.C Cost center category Select save button or
Ctrl+s Ignore the warning message press enter Creation cost center
groups: Hierarchy : BILHIER Cost centers Dept A Dept B Dept C Dept
X Dept Y Dept Z Category Production Prod Service Production
Production Service Business Area HYD HYD HYD BGL BGL BGL If we want
to see all cost centers data BILHIER If we want to see production
cost centers data Create a cost center group and assign Dept A .
Dept B, Dept X and Dept Y. If we want to see HYD cost centers data
cost cost center group and assign Dept A, Dept b and Dept C If we
want so settled production cost centers data create A cost center
group and assign Dept A and Dept B : Select to 2 (service cost
center)
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Path : Accounting Controlling Cost center accounting Master
data- Cost center group Create (Tr.code is KSH1) Give the cost
center name Enter Description Hyderabad production cost centers BIL
Select Edit Cost Center Insert cost center button : BILHYD PROD
Select the cost centers Dept A Dept B Save Creation of cost
Element group: FI : Account groups Personnel cost CO:Dept wise
personal cost or Administration Create cost element group personnel
and assign 400100 -400199
400100 salaries 400101 Wages 400102 Bonus 400103 Staff welfare
and Administration 400300 Rent 400301 Telephone exp 400302 Petrol
exp
Create cost element group administration and assign
400300-400399
In the report center Dept A Dept C Or Cost center GRP Cost
element Or Cost element GRP personnel administration
Path: Accounting Controlling-Cost center accounting-Master
data-Cost element group Create (Transaction code: KAH1) Cost
element group name : BILADMIN Enter Description : Administration
expenses for BIL Select insert cost element button (Shift+F4) (Edit
Cost element Insert cost element) From 400300 to 400399 15
Save To enter exchange rate for type M for INR to EURO (Tr.Code
is OB08) Select new entries button Exchange rate type Valid from
From currency To Direct quotation Select save button or Ctrl+S
Press enter to save in your request Posting of transaction in FI
Transaction code:F-02 Give the document date Type Company code
Posting key Account Enter Give the amount Cost center Text One more
expenditure Post key :40 Account :400300 Rent account Enter Amount
:100000 Cost center : Dept A Text : Rent posting Posting key : 50
Account :200105 SBI current account Enter Amount :* Business area
:BILH Text : Expenditure posting From the menu select Document
Simulate Select save button or Ctrl+S : Todays date :SA :BIL :40
:400100 salaries account :500000 : Dept A :Salaries posting : M
(Average rate) :01.10.2008 : INR : EUR :0.02
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To view cost center wise report: Path: Accounting
Controlling-cost center accounting Information system-Report for
cost center accounting-Line items Cost centers: Actual line items
(Transaction :KSB1) Cost center select Dept A (if you want change
the posting dates) Select execute button Keep the cursor and the
first line item Select document button Select back arrow Select
change layout button (Ctrl+F8) Select Document no.under column set
Select value in reporting currency under displayed columns Select
left arrow or show selected filed button Select reference document
no.under column set Select value in report current under displayed
columns Select left arrow Select business transition under column
set Select document no. under displayed columns Select left arrow
Enter To view co documents: Path :Up to reports for costs center
accounting path is same -Line items Co documents :Actual costs
(transaction code is KSB5) Document no. :1 to 100000 Execute Select
folder button for document no.1
Report co line items: Business transaction RKU3 FI doc.13 001
400100 Salaries 500000 Dept A
150000 Dept B 50000 Dept C
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Report co line item 002 400300 Rent 003 200105 SBI
100000 Dept A 600000
Report co line item Transfer document wise /line item wise ,
transfer line item wise No FI document will be generated Only
document will be generated Path: Accounting Controlling-Cost center
accounting Actual postings-Report line items-Enter (Transaction
code is KB61) Select document no. :13 Company code :BIL Fiscal year
:2008 Execute Double click on line item no.1 Amount under new
account assignment 150000 Cost center :Dept B Select new item
button Select next button Amount under new account assignment 50000
Cost center : Dept C Save Go and see the cost center report KSB1
Give the cost center Select execute button To view cost element
wise to total Select cost element column Select sub totals button
(Note:That is dues cost element wise total) Repot costs (Business
transaction RKU1) This is used when we split a cost center in to
number of cost centers or wrong cost center postings. No FI
document will be generated Only CO document will be generated
Transfer cost element wise (GL account wise) Dept A
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Path : Accounting-Controlling-cost center accounting Actual
postings-manual reporting of costs Enter (Transaction code is
KB11N) Cost center (old) : Dept A
Cost element 400100 Salaries Amount Cost center new :100000 :
Dept C : Dept A
One more cost center (old) Cost element Amount Cost center (new)
Enter Select save button or Ctr+S Period lock:
:400300 Rent :25000 : Dept C
A) Transaction which effect FI and CO eg:COIN B) Transaction
which effect only CO Eg.RKU3, RKU1 C) Transaction which effect only
FI Eg.Debit balance sheet and credit balance sheet
FI To open No check To open
CO To open To open No check
Sept .08 March
Oct 2008 to March 2009
An expenditure posting in FI for September. We cant post since
periods are not open. Path: Accounting Controlling-cost center
accounting-Environment Period lockchang (Tr.code is OKP1)
Controlling area Fiscal year Select actual button Select period
Select lock period button Save 19 :01 : BIL :2008
Set controlling area :(OKKS): Path :up to Environment the path
is same Set controlling area
Give the controlling area :BIL Enter Real time integration of
controlling with FI on line reconciliation ledger This is used when
we get for 2nd scenario (no.of company codes having one controlling
area ) all the company codes should use same Char of Accounts.
Planning cost center wise Path :Accounting Controlling cost center
accounting Planning Cost and Activity inputs Change (KP06) Version
From period To period Fiscal year :select 0 (Original budget) :1
:12 :2008
Select next page or page down button Cost center group Cost
element From Cost element To :BILHIER :400000 :499999 Form Bsed If
we select from based radio button The cost element list in a
available on screen plant against cost elements
Free If we select radio button We have to select cost element
from the drop down list and plan against the Climents Select form
based radio button Select overview screen button
For cost element 400100 Plan Fixed cost 1500000 Distribution key
1 Equal distribution Select cost element From the menu select
Select back arrow Fro cost element 400300 Plan fixed cost 960000 20
400100 Goto Period screen
Distribution key 1 To plan for Dept B Select next combination
button To go back to previous dept select previous combination
button Save
To view variance report cost center wise Path :Accounting
Controlling-Cost center accounting Information system Reports for
cost center accounting Plan /Actual comparisons Cost centers:
Actual /Plan/Variance (Tr code is S_ALR_87013611) Controlling area
Fiscal year From period To period Plan version Cost center Value
Execute Keep the cursor on Salaries A/c actual costs amount Select
call up report button Double click on cost centers : Actual line
items keep the cursor on the first line item. Select document
button :BIL :2008 :10 :10 :0 :Dept A
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ONLINE RECONCILIATION LEDGER Reconciliation used when when
number of company codes having one controlling area 2nd Scenario It
can be at controlling area All the company codes should use the
same Chart of Accounts due to online reconciliation ledger, it
generated in a document in FI BIL Controlling area |
-----------------------------------------------------------------------|
| Company code BIL company code BSL | |
----------------------------------------------------------------------|
| | | | | Dept A Dept B Dept C Dept X Dept Y Dept Z
If salaries paid and posted FI at (F-02) Salaries A/c
---------------------------------100000 | | Out of 100000 salaries
20000 belongs to company code BIL If we use the reconciliation
account at cost center level and the 20000/- is transfer to company
code BSL (Dept X) it passes the entry in financial automatically
Here Reports at No FI records In BIL Books BSL Dr 20000 To Salaries
a/c 20000 In BSL books Salaries account Dr 20000
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To BIL a/c Customization at Finance:
20000
To copy company code BIL customization including accounting to
BSL Path :SPRO-Enterprise structure Definition Financial accounting
Edit, copy, Delete, Check company code(T.Code EC01) Double click on
copy, delete, check company code From the menu select organization
object copy organization object From Company code To company code
Enter Select Yes for the message (for copy the GL accounts) Select
No button allocate a different local currency Ignore the message
press enter Select create request button Short description
:Customization for Birla Steel Limited Press enter Enter once again
to saving the request Go on press enter till you got the message
company code BIL copied to BSL with out 75 number range object
Ignore the message press enter Select back arrow Double click on
edit company code data Select position button Give the company code
Enter Select company code Select address button change the company
name to : Birla Steel limited Enter save and Save in your request
button : BSL :BSL :BIL : BSL
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Assign company code to company Path :SPRO-Enterprise
structure-Assignment Financial accounting-Assign company code to
company Select position button Give the company code : BIL Enter
For the company code :BSL assign BIL(group name) Select save button
or Ctrl+S Press enter to save in your request Document type SA
should allow inter company postings: (OBA7) Select type : SA
Select details button Select inter company postings check box
Save Press enter to save in your request Creation of GL Masters
FS00 BIL Books 1) FI/CO reconciliation account under only expediter
group which should not be a cost element 400150 Personnel group 2)
Birla Steels limited, current assets, Loans & Advances 200160
Birla Steel Limited BSL Books 1)FI/CO reconciliation account under
any expenditure group which should not be a cost element 400150
personnel group 2)Birla Industries Limtied current Assets, Loans
& Advances 200161 Birla Industries Limited
Same chart of accounts BIL chart of accounts BIL BSL chat of
accounts BIL When we use same chart of accounts, account
description should be same in all the company codes. In BSL books
If we create account No.200160 It takes Birla Steels Limited- we
can not crate our account in our books. Creation of GL masters FS00
Give the GL account no. :400150
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Company code Select with template button Give the GL account o.
Company code Enter
:BIL
:400100 Salaries : BIL
Change short text & GL account long text to FI/CO
reconciliation account Select create / bank /interest tab Field
status group change to ICCF CO < -> FI reconciliation posting
Save Give the GL Account No.200160 Company code Select with
template button Give the GL Account No.200100 Cash A/c Company code
Enter Select type/Description /tab Change short text GL account
long text to BIRLA STEEL LIMITED Select create / Bank/Interest tab
Filed status group change to G067 Deselect relevant to cash flow
check box Save Give the GL account No.400150 Company code Select
with template button Give the GL account 400150 Company code Enter
& Save Give the GL account 200161 Company code Select with
template button Give the GL account 200160 :BSL :BIL :BSL :BIL :
BIL
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Company BIL Enter Select type / Description tab Change short
text +GL long text to Bila Industries limited Save Prepare cross
company code Transaction (Transaction code is OBYA) Path
:SPRO-Financial accounting-GL accounting Business
transactions-Prepare cross company code transactions Company code 1
BIL Company code2 BSL Enter Posted in BIL cleared against BSL Debit
posting key :40 Account debit :200160 ( Birla Steel Limited) Credit
posting key :50 Account credit :200160 Posted in BSL Cleared
against BIL Debit posting key :40 Account debit :200161 Bilra
Industries Limited Credit posting key :50 Account credit :200161
Save Press enter to save in your request CO customization ( tr code
is OKKP) Maintain controlling area Assign company BSL to
controlling area BIL Select controlling area Select details button
Company code to controlling area: Select cross company code cost
accounting Reconciliation ledger document type :SA (GL accounts
document) :BIL
Double click on activate components / control indicators folder
Select company code validation check box Double click on assignment
of company codes folder
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Select company code Select copy as button
:BIL
Change the company code to BSL Enter & save Ignore the
warning message press enter Activate reconciliation ledger (Tr code
KALA) Note: Follow through path Path:SPRO Controlling Cost element
accounting-Reconciliation ledger-Activate deactivate reconciliation
ledger Double click on activate reconciliation ledger Controlling
area Select Execute button Ignore the warning message press enter
Define adjustment accounts for reconciliation posting Same path
Double click on define accounts for automatic postings Select
change account determination button Save Reconciliation account:
Save Press enter to save in your request FI CUSTOMIZATION Define
variant for real time integration: Path :SPRO-Financial accounting
(new) Financial accounting global setting (new) Ledger-Real time
integration of controlling with financial accounting Define
variants for real time integration Select new entries button
Variant for real time integration B1 Select real time integration
active check box Give the account no.400150 FI/CO (Tr code is OK17)
:BIL
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Select account determination active check box Key date active
from :01.04.2008 Document type Ledger group (FI) Text variant for
:SA :0L :BIL
Select cross company code check box Select cross business area
check box Select cross profit center check box Save Press enter to
save in your request Assign variants for real time integration to
company code: Same path. Select new entries button Company code
Variant Company code Variant Save Press enter to save in your
request Creation of cost center for company code BIL (KS01) Give
the cost center department X Valid from To date :01.04.2008
:31.12.9999 :BIL :B1 :BSL :B1
Reference cost center :Dept A Controlling area Enter Change the
name to :Dept X :BIL
Change the description to cost center dept X Change company code
to BSL
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Select save button or Ctrl+s Ignore the warning message press
enter Repost costs (F-02) Cost center old Cost element Amount Cost
center new Dept Save :Dept A :400100 Salaries :20000 X
To make text filed optional for field status group G004 cost
accounts(Tr.code is OBC4) Select field status variant for BIL
Double click on field status groups folder Double click field
status G004 Double click on General data Text make it optional
entry field Press enter to save in our request Go and see the FI
documents (Tr.code is FB03) Select document list button Give the
company code Enter the date :From date Execute Double click on
document no. Select back arrow Chang the company code to BSL
Execute Double click on document no. :BIL To Date
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CROSS COMPANY CODE POSTINGS
Company code
:BIL
BSL
Outstanding expenses of BSL paid by BIL BSL Dr To Bank 25000
25000 Outstanding 25000 To BIL 25000
Paying company code : BIL Credit Bank Debit outstanding exp Use
the Transaction code :F-02 Give the document date Type Company code
Posting key Account no. Enter Amount Business area Text Posting key
Account no New company code Enter Amount Business area Text From
the menu select document Double click third line item Business area
Text Select next item button Business area Text
:BIL 25000 :BSL 25000
:Todays date :SA :BIL :50 :200105
SBI CA
:25000 :BILH :outstanding expense payment on behalf of BSL :40
:100500 out standing exp. :BSL :* :BILH :+ Simulate :BILH :+ :BILH
:+
30
Select save button or Ctr+S Posting by Company code Cross
company code no. FI posted by Company code Cross company code
no.
:BIL :15
08
:BSL :2 08
By viewing the cross company code document number We know which
company code has initiated the posting. Select continue button
Accrual orders (Imputed cost calculation) This is used for month
end provision only in CO This is used for irregular expenses like
Bonus Cost element category should be 3 Accrual/ Deferral per
surcharge Define CO.No.range in interval for business Transaction
:KAZ1 Actual cost center accrual
FI Month end provision 1. Accrual / Deferral document A. Bonus
provision for Nov 30.11.2008 Bonus A/c To Out standing exp. B.
Reverse next month 1st 01.12.2008 01.12.2008 Outstanding Exp. To
Bonus A/c C. Bonus provision for Dec. 31.12.2008 Bonus A/c To Out
standing exp 2. Open item management A). Bonus provision for Nov.
30.11.2008 Bonus A/c To Outstanding exp. B). Bonus provision for
Dec. 31.12.2008 Bonus To Outstanding exp
Dr.10000 10000 Dr.10000 10000 Dept A Dept A
Dr 20000 20000 Dept A
Dr10000 10000 Dr.10000 10000 Dept A Dept A
31
Month end provision Number of companies will not prepare profit
& loss and Balance sheet every month, the will not make
provision in the books every month in year end, companies follow
accrual basis of accounting. They make provisions for the whole
year. Expenditure for all the months Expenditure for March Less
(other than March) More
In SAP when we take production an accounting entry will be
generated automatically Finished goods valuation will be based on
costs for the month. Stock valuation will be accrual orders Accrual
orders Create overhead structure Salaries 100000 Bonus -10% on
salaries 1000 Lower in all month other than March Higher in
March
Debit cost center credit cost center Dep Dummy (No accounting
entry) Dept A 1000 allocation to Dept A costs will be allocated to
production orders There by Dept A will be zeroproduction valuation
will be correct.
In the month end Bonus
Dept Dummy Bonus
1000
In the year end in FI when we make bonus provision for the whole
year. 31.03.2009 Bonus A/c Dr To Outstanding 1200000 1200000
Dept Dummy
Dept dummy values in the year end
31.03.2009 Dept dummy
1200000 ======
April to March 10000*12 = 120000 =====
In the year end Dept dummy values will be zero. Creation of GL
master bonus account personnel cost (FS00) group:-
32
Give the GL Account No. :400105 Company code :BIL Select with
template button Give the GL account no. :400100 (salaries) Company
code :BIL Enter Change short and GL account long text to Bonus
account Save Select edit cost element button (F8) Valid from date
:01.04.2008 to 31.12.9999 Enter Cost element category :Select 3
accrual deferral per surcharge save Creation of cost center Dept
dummy (KS01) Give the cost center Reference cost center Controlling
area Enter Change name to Dept dummy Change description to cost
center: Department dummy Select save button Ignore the warning
message press enter Maintain overhead structure:
Path:SPRO-Controlling Cost element accounting-Accrual calculation
percentage method-maintain overhead structure (Transaction code is
KSAZ) Select create over head structure button (F7) Over head
structure :BIL1 Description :BIL overhead structure Select save
button Row Base 10 B1 Enter Give the name salaries Select create
button Row O/H rate (Over head rate) Description 20 B2 Bonus : Dept
dummy : Dept A :BIL
FR
To 10
CR 10
B3
33
Enter Give the name Bonus Dependency :KRS1(controlling area)
Select create button Save Ignore the message press enter Keep the
cursor on overhead structure BIL1 Select assignment button (F5)
Controlling area :BIL Select actual accrual radio button Select
continue button Valid from 1 2008 valid to 12 overhead structure
BIL1
2008
Save Double click on overhead structure BIL1 Keep the cursor on
B1 From the menu select Goto calculation base From cost element
400100 Save Kept the cursor on B2 From the menu select Goto
overhead rate Valid from 1 2008 Save From 10 Valid to 12 2008 To 10
Actual overhead 10% Crdit B3
Keep the cursor on B3 From the menu select go to credit Company
code Business area Valid to Cost element Cost center Save :BIL
:BILH :12 2008
:400105 :Dept Dummy
34
Define CO.no range interval for the business transaction
KAZ1-Actual cost Center accrual:(Transaction Code KANK) Give the
controlling area Select maintain group button Double click on KAZ1-
Actual cost center accrual Select CO.No range interval for BIL
check box From the menu select Edit-Assigned element group Save
Ignore the warning message press enter 1. Posting of salaries for
the month of August F-02 Give the document date end posting date
:03.08.2008 Date Type Company code Posting key Account no. Enter
Ignore the warning message press enter Amount Cost center Text
Posting key Account no Enter Amount Business area Text :* :BILH :+
:100000 Dept A :Salaries posting :50 :200105 SBI current Account
:03.08.2008 :SA :BIL :40 :400100 Salaries A/c :BIL
From the menu select document Simulate and save Accrual
calculation (KSA3)
35
Accounting Controlling Cost element accounting-Actual postings
Accrual calculation select cost center radio button give the cost
center : Dept A period :5 fiscal year :2008 deselect test run check
box select details list check box Execute Select next list level
button Go and see the cost center report KSB1 Give the cost center
Posting date Execute Select back arrow Give the cost center Execute
Bonus provision in the year end in FI Transaction F-02 Give the
document date & Posting :31.03.2009 Type :SA Company code :BIL
Posting key :40 Account no. :400105 bonus account Enter Ignore the
warning message press enter Amount :10000 Cost center :Dept dummy
Text :Bonus provision for the year 2008-09 Posting key :50 Account
:100500 outstanding exp. Enter Amount :* Business area :BILH Text
:+ Document Simulate and save Go and see the cost center report
KSB1 Give the cost center :Dept dummy Posting date :01.04.2008 to
31.03.2009 : Dept dummy :Dept A :01.08.2008 to 31.08.2008
36
Execute
STATICALLY KEY FIGURES (SKF) This is used as a basis for
allocation of costs from one cost center to other cost centers. Eg.
Employee / Area/ Telephone calls Dept C Dept A Dept B (service
Dept) (Production departments) Salaries 500000 No.of employee of A
and B Rent 100000 Sq.meter are of A & B Telephone Exp25000
No.of telephone calls of A & B Enter CO. No range interval for
the business transaction. RKS (Enter statistical key figures) SKF
category Fixed Total Fixed If we choose fixed, values To SKF are
common for all months in the year, if we dont make changes in
between Eg: Employee / Area Total If we choose total We have to
enter values for SKF, for each and every month Eg: Telephone
calls
No.of Employees April 2008 May 2008 June July Aug Sep Oct Dec
Jan.09 Feb March
100 | | | | | | | | | |
100 | | | | | 150 | | | |
Aprl 2008 May June July Aug Sep Oct Dec Jan 2009 Feb March
No.of Telephone calls 1000 1500 2000
37
Define co.no range interval for the business transaction
RKS-Enter Statistical key figures Transaction Code is (KANK ) Give
the controlling area Select maintain groups button Double click on
RKS Select Co.No.range interval for BIL check box From the menu
select Edit Save Ignore the warning message press enter. Create
Statistical key figures Path :Accounting Controlling cost center
accounting master Data-Statistical key figures Individual
processing Create (Tr.Code is KK01) Give the statistical key figure
Enter Give the Name :Employee :EMP Assignment element group. :
BIL
Statistical key figure unit of measurement : Select EA each Key
figure category :Select fixed values under radio button Save Path :
Accounting Controlling Cost Center accounting actual
postings-statistical key figures-Enter (Tr.code is KB31N) Received
cost center Statistical KF Total quantity Received cost center
Statistical KF Total quantity Save Period end closing In the month
end, we allocate costs from one cost center to other cost centers :
Dept A : EMP :500 : Dept B :EMP :250
38
Dept C (Service department) Salaries Wages Rent 500000 300000
50000
Dept A Dept B (Production departments) no.of employee of A and B
No.of employee of A and B Percentage basis
Basis of allocation can be percentage method statistical key
figures method /activity type (machine hour / labour rate)
Allocation methods: 1. Assessment : A) Transfer primary cost
postings and secondary cost postings. Dpt X Dept C Dept A Dept B
Wages 100000 Salaries 500000 Salaries 400000 Salaries 300000 Wages
300000 Rent 50000 Add all 85500 Add all from C 95000 10% All from
Dept X 100000 -----------------------------Less 950000 1255000
395000 ===== ======= ======= Allocation Primary cost postings
Secondary cost postings B) Receiving cost centers cant track
original cost element Dept A and B will not show the transfer value
how much salaries wages and rent. C) Define Co.No.range interval
for business transaction RKIU actual overhead assessment. 2.
Distribution A) Transfer only primary cost postings B) Receiving
cost center can track original cost elements. C) Sender should be
only cost center D) Define Co.No.range interval for the business
transaction RKIV actual overhead distribution. 3. Periodic
reposting: A) Transfer only primary cost postings B) Receiving cost
center can track original cost elements. C) Sender can be a cost
center or interval order. D) Define Co.No.range interval for the
business truncation. RKIB periodic reposting.
39
4. Indirect activity allocation. A)Transfer only primary cost
postings. B) Receiving cost center can track original cost
elements. C) Sender should be only cost center. D) Transfer
quantities as well as values. E) Define Co.No.range interval for
the business truncation. RKIL Indirect activity allocation . Which
over method we follow, we have to create cycles. When the
allocation basic is different for the cost elements in the cost
center, we have to create number of cycles for number of segments
for a cycle. Dept C (Service Department) Salaries Wages Rent Option
1: Cycle 1 (Salaries and wages allocation) | Segment 1 Option 2
Cycle 2 (Rent allocations) | Segment 1 500000 300000 50000 Dept A
Dept B (Production departments) No.of employees of A and B No.of
employees of A and B Percentage basis
Cycle 1 | ---------------------------------------------| |
Segment1 Segment2 (Salaries and wages allocation) (Rent
allocation)
40
ASSESSEMENT 1. Creation secondary cost element : i.e (that is)
assessment cost element : Path: Accounting Controlling Cost element
accounting-Mater data-Cost element Individual processing Create
secondary (KA06) Give the controlling area Enter Cost element Valid
from Enter Name and description Cost element category Save 2.
Define Co.No.range interval for the business truncation-
RKIU-Actual overhead assessment Use the Truncation code :KANK Give
the controlling area Select maintain groups button Double click on
RKIU Select Co.No.range interval for BIL check box From the menu
select Edit Assignment element group. Ignore the message press
enter Creation of assessment cycle: Accounting Controlling Cost
center accounting-Period and closing Current settingsDefine
assessment (Tr.code S_ALR_87005742) :BIL :Assessment cost element.
:42 (Assessment ) :1000000 :01.04.2008 to 31.12.9999 :BIL
41
Give the cycle :BIL1 Start date :01.04.2008 Enter Text :
Assessment cycle Select iterative check box. Select save button or
Ctrl+S Press enter to save in your request Select iterative check
box Dept C Dept A Salaries 500000 Dept B Less :Allocation 500000
Dept Z -------0 Add: Allocation 90000 Less :Allocation 90000
------0 Add: Allocation 1800 Dept Z Wages Add: Allocation
60% 300000 54000 30% 150000 27000 10% 50000 9000
Less : Allocation
400000 50000 -------450000 450000 ------0 ====
Dept X Dept Y Dept C
50% 30% 20%
225000 135000 90000
4500 2700 1800
We have to run number of items to make both cost center values
zero. If we select interactive check box, system will run number of
items automatically till both cost center values become zero.
Select attach segment button. Segment name Description Assessment
cost element Sender rule Share in % : Segment 1 : Salaries
allocation :select 1000000 :select posted amounts :100
Select actual value origin radio button Receiver rule Variable
portion type :Select variable portions :Select actual statistical
key figures
42
Select sender / receivers tab Sender cost center Under Cost
element Under Receiver cost center group Select receiver tracing
factor tab Statistical key figure :EMP :Dept C :400100 (Salaries
a/c) :BILHYDPROD
Select receiver weight factors tab Select save button or Crl+S
Press enter to save in your request Select attach segment button
Segment name segment2 Description Assessment cost element Sender
rules Sharing in % :Rent allocation :1000000 :Posted amount
:100%
Select actual value origin radio button Select receive rule
Select senders/ receivers tab sender cost center Cost element
Receiver cost center group :Dept C :400300 (Rent ) : BILHYDPROD
:Fixed percentages
Select receiver tracing factor tab Dept Dept Save Press enter to
save in your request Go and see the cost center Report (Tr code is
KSB1) Give the cost center Posting date Execute Select cost element
column Select sub totals button :Dept C :01.10.2008 to 31.10.2008 A
B 70 30
43
Dept C Salaries
Rent
A 1500000 500 100000 25000 70 17500
B No.of employees 250 50000 Percentage basis 30 7500
Execution of assessment cycle: Path :Accounting Controlling Cost
center accounting Period end closing-Single functions-Allocations
Assessment (KSU5) Give the period Fiscal year :7 (October)
:2008
Deselect text run check box Select details list check box Cycle
select Execute Select receiver button :BIL1
44
INTERNAL ORDERS This is used to view costs for a specific task.
Eg. A) Vehicle wise running expenses Management has to task
decision whether to sell the (or) keep the vehicle in company A)
petrol expenses for the vehicle B) Repairs to the vehicle
It we take GL accounts in FI we will not create each vehicle
wise petrol expenses and repairs account. In cost center accounting
vehicles will be under administration cost center and the petrol
expenses repairs and administration expenses will be posted to
administration cost center. By creating vehicle as an internal
order we can get the costs. B) Telephone expenses: If we want to
know telephone wise expenses in FI we will have one account for all
telephones. If we take cost center It will be entered in
administration cost center - We can not get telephone wise expenses
directly. By creating telephone as an order we can get telephone
wise expenses. C) Production order costs In a month no. of
production orders will be executed. Some production orders consume
more raw material and same production orders consume less raw
material. If FI we have only GL account raw material consumption We
dont know order wise consumption. By crating production order, we
can get order wise costs. Exhibition costs Company is conducting an
exhibition Salesmen salaries Conveyance Advertisement Discounts One
account Different account Different account Different account
D)
45
We don't know the exhibition costs by creating an order we can
get exhibition costs
Orders will be of 2 types 1)Real orders Settlement is possible
We can settle order
2)Statistical orders settlement not possible statistical orders
are used for decision making
Cost Center (Internal settlement) From Co to Co GL Accounts
Assets (External settlement ) (From CO to FI) When we transfer from
cost center To cost centers allocation by assessment / Distribution
periodic reposting / Indirect activity allocation. When we transfer
from Internal order settlement. Eg. Telephone expenses Dr 50000
Cost center Dept Order Tel no.66110883 To Bank 50000 The cost will
be allocation to production orders from CO In the production order
valuation we cant take.(50000+50000) We have to take only one time
50000 When we are posting to no. of cost objects are will be real
and others will be statistical. At the time of order creation there
is a statistical order check box. A) When we select statistical
order is statistical order check box. Order is statistical
(Automatically cost center will be real) B) If we dont select
statistical order check box Order is real (Automatically cost
center will be statistical ) Statistical order : Telephonewise
expenses order we create as statistical order. Telephone expense To
Bank Dr 50000 50000 Cost center Dept A Order Telephone no.66611983
Statistical
To
Cost Center Dept A Telephone expenses 50000 Allocation to paid
order 50000
46
Cost center Dept A Zero In the month end we allocation costs
from Dept A to production orders there by cost center Dept A will
be zero. Order telephone no.66611983 Telephone expenses 50000
Management can see telephone wise expense at any point of time
afterwards. Suppose we create order as real order Telephone
expenses Dr 50000 To Bank 50000 Cost center c data Telephone
Expenses Telephone expenses
Cost center Dept A order telephone no.66611983 Real
50000 50000
Order Telephone no.6661987 Allocation to production 50000
Order will be zero In the month end we allocate cost from order
telephone no.66611983 to production order there by order will be
zero. Afterwards management cant see telephone wise expense.
Creation of order types: Path : SPR O Controlling Internal orders
order master data-Define order types (KOT2_OPA) Select new entries
button Order category Enter Order type Description Planning profile
Object class :BILT :Telephone orders for BIL :select 000001
(General budget /plant profile) :Select Over head cost :Select 01
Internal order (Controlling)
Select release immediately check box Save We get message
no.range not processed Ignore the message press enter Select assign
/change interval button beside no.reage interval
47
Double click order type
:BILT
Select motor pool A-ZZZZZZZZZZZZ(External) From the menu select
Edit Save Ignore the message press enter Creation of filed status
group by making cost center and internal order required entry
fields (OBC4) Select field status variant Double click on field
status group folder Select field status group G004 cost accounts
Select copy as button Change the filed status group to G002 Change
the text to cost accounts (CC & IO required) Enter Save Press
enter to save in your request Double click on G002 Double click on
additional account assignment CO /PP order make it required entry
field. Save Creation of GL master telephone expense (FS00) Give the
GL account no.400305 Company code :BIL CC=Cost Center IO =Internal
order :BIL Assign element group
Select with template button GL account 400300 Rent account
Company code Enter Change short text and GL a/c long text to
Telephone expenses Select crate / Bank/Interest tab :BIL
48
Change the filed status group to G002 Save Select edit cost
element button Valid from date Enter Cost element category Save
Creation of Internal orders: Path :Accounting Controlling-Internal
orders-Master data-Special functions Order Create (Tr code is KO01)
Order type Enter Order no. Description Company code Business area
Select control data tab Select statistical order check box Save One
more order Order type Enter Order Description Company code Business
area Select control data tab Select statistical order check box
Save :BIL66611984 :Telephone order no.66611984 :BIL :BILH :BILT
:BIL 66611983 (Telephone no.) :Telephone order no.66611983 :BIL
:BILH :Select BILT :Select 1 :01.04.2008
49
Creation order group Up to master data the path is same Order
group Create (Tr code is KOH1) Give the order group name :BILHYDTEL
Enter Description :Hyderabad order group (GRP)for BIL Select insert
order button(Select menu bar Edit Order Insert Order) Select to
orders :BIL66611983 :66611984 Save Posting of transaction in FI
(F-02) Document date Type Company code Posting key Account no.
Enter Give the amount Cost center Order Text Posting key Account
no. Enter Amount Business area Text :* :BILH :+ :100000 :Dept A
:BIL66611983 :Telephone expenses :50 :200105 (SBI current account )
:Todays date :SA :BIL :40 :400305 Telephone exp
From the menu select Document Simulate and save To view internal
order wise report Path :Accounting Controlling-Internal
order-Information system-Reports for Interval orders -Line items
Order -Actual line items-(Tr. Code is KOBI Give the order
no.BIL66611983 Remove the order group
50
Execute Keep the cursor and telephone expense line item select
document button Planning order wise Path :Accounting Controlling
Internal orders Planning Cost and activity inputs Change (KPF6)
Version :0 From period :8 (November) To period Fiscal year :8
:2008
Select next page or page down button Give the order no. Cost
element :BIL66611983 :400305 Telephone expense
Select from based radio button Select view screen button Cost
element Total plan cost Select save button or Ctrl+S To view
variant report order wise Path :Accounting Controlling-Internal
order Information system-Reports for internal order-Plant /Actual
comparisons-Order :Actual / plan / Variance (S_ALR_87012993)
Controlling area Fiscal year From period To period Pant version
Order values Execute Real orders: They are used for vehiclewise
expenses Petrol expenses Dr 50000 Order no.AP9Z1234 :BIL :2008 :8
(Current month) :8 :0 :BIL66611983 :400305 :75000
51
To Bank In the month end:
50000
Cost center Dept A Cost center Dept B Cost center Dept C
Settlement can be percentage basis / ratio basis /Amount basis
Order no.AP9Z1234 Settle to
Petrol expenses
50000
Order No AP9A1234 Allocation Dept A Dept B Dept C
------50000 ==== Order will be zero Petrol expense To Bank Dr
50000 50000
25000 15000 10000 -----50000 ====
Cost center:Common Order No.AP9Z1234 Statistical
In the month end from cost center common allocate to Dept A,
Dept B and Dept C by assessment / Distribution / Periodic posting
/Direct activity allocation.
Petrol Expenses
Cost center common 50000 Allocation to Dept A 25000 Dept B 15000
Dept C 10000 --------------50000 50000 ==== =====
Cost center will be zero Order no.AP9Z1234 Petrol expense
50000 =====
Management can see vehicle wise expenses at any point of item
afterwards. Creation of filed status group by making only internal
order required entry filed (OBC4)
52
Select filed status variant
:BIL
Double click on filed status group folder Select field status
group G002 Select copy as button Change field status group to G010
Change the text to cost accounts (IO required ) Enter and save
Press enter to save in your request Double click on G010 Double
cock additional account assignments Cost center make it optional
entry field Save Creation of GL master petrol expense under
administration group (FS00) Give the GL Account no. Company code
Select with template button Give the GL account no.400300 Rent
account Company code Enter Change short text and long text to
petrol expenses Select create/bank /interest tab Field status group
Save Select edit cost element button Valid from date Enter Cost
element category Save Creation of secondary cost element i.e.
Statement cost element (KA06): :01 :01.04.2008 :G010 :BIL :400310
:BIL
53
Give the cost element :1000001 Enter Name and description
settlement cost element Cost element category :Select 21 internal
settlement Save
Maintain allocation structure: Path :SPRO-Controlling Internal
orders-Actual posting- Settlement-Maintain allocation structures
Select new entries button Allocation structure Text Save Press
enter to save in your request Select Double click assignments
folders Select new entries button Assignment Text Save Select
Double click on source folder From cost element Save Press enter to
save in your request Double click on settlement cost elements
folder Select new entries button Receiver category Settlement cost
element Save :Select CTR cost center :1000001 :400310 Petrol
expenses :01 :01 :Vehicle expenses settlement :B1 :B1 :BIL
allocation structure
54
Petrol expenses will be settled to cost center by using
secondary cost element settlement cost element. Through orders.
Maintain settlement profiles: Same path Double click on maintain
settlement profiles Select new entries button Settlement profiles
Description Allocation structure :BIL1 :BIL settlement profile
:B1
Select to be settled in full radio button Double click on CTR
cost center Select % settlement check box Select equivalence number
check box Select amount settlement check box Under valid receivers
For cost center Max.no. distribution rules Residence time Save
Press enter to save in your request Rule 1: Order no.AP9Z1234
settle cost center Dept A Petrol expenses 50000 settle cost center
Dept B Dept C :Select settlement required :999 :12 months
30000 15000 5000
Rule 2 Order No.AP9Z1234 Settle to cost center Dept A 85% Petrol
expenses 50000 Settle to cost center Dept B 10% 5% Order
no.AP9Z1234 settle to cost center Dept 4: Petrol exp 50000 Dept 3:
Dept 1:
55
Maintain number range for settlement documents: Go through Same
path (Tr.code is SNUM) Select maintain groups button Double click
on controlling area BIL Select Standard accounting document check
box From the menu select Edit Assign element group Save Ignore the
message press enter Creation of order type (KOT2_OPA) Select new
entries button Order category Enter Give the order type Settlement
profile Budget profile Object class select :BILV Vehicle order type
BIL :BIL1 :0000001 (General budget profile) :Overhead costs :Select
01 Internal order (controlling)
Select release immediately check box Save Ignore the message
press enter save in your request Select assign /Change intervals
button beside no.range interval Double click on BILV Select motor
pool A-ZZZZZZZZZZZZZZ external check box From the menu select Edit
Assign element group. Save Ignore the message press enter
Define co.no.range interval for the business truncation
K0A0-Actual settlement. Use the transactions code (KANK) Give the
controlling area Select maintain groups button :BIL
56
Double click on KOAO actual settlement Select co.no.range
interval for BIL check box Form the menu select Edit Assign element
group. Save Ignore the warning message press enter END USER AREA:
Creation of internal order (KO01) Give the order type :BILV Enter
Give the order Description Company code Business area Select
control data tab Deselect statistical order check box Select
settlement rule button Category Settlement receiver Give the
percentage One more Category Settlement receiver Percentage Save
Ignore the warning message press enter Posting of petrol exp F-02
Give the document date Type Company cod Posting key :Todays date
:SA :BIL :40 :CTR :Dept B :30 :CTR cost center :Dept A :70
:AP9Z1234 :Vehicle no.AP9Z1234 :BIL :BILH
57
Account no. Enter Give the amount Give the order no. Text
Posting key Account no. Enter Amount Business area Text
:400310 petrol exp.
:100000 :AP9Z1234 :Petrol exp. :50 :200105 SBI current
account
:* :BILH :+
From the menu select menu document Simulate and save Actual
settlement : Path :Accounting Controlling-Internal order-Period end
closing-Single functionsSettlement Individual processing (K088)
Give the order Settlement period Fiscal year Deselect test run
check box Select check transaction date check box Select execute
button Select details list button Note : Order means overall
expenses Eg: Vehicle Expenses Cost Element means each item wise
:Eg.Vehicle expenses for Petrol, Repairs, Driver salary etc
:AP9Z1234 :8 (current month) :2008
58
BUDGETING AND AVAILABILITY CONTROL Planning 1. We can plant cost
element wise in the order 2. We can do planning period wise in a
year (Month wise) 3.Micro level (Lower level) Budgeting 1.Budgeting
will be done order wise 2. Budgeting should be done year wise 3.
Marco level (High level) For budgeting SAP has given availability
control Order no.AP9Z1234 Budget amount 500000 Option 1 Give
Warning To the user If actual amount exceeds 85% of budget 425000
Or If the variance is above 20000 i.e actual 5200000 Or Both
Whichever activity comes first Or If a actual amount exceeds 70% of
budget go for option1 If actual amount exceeds 85% of budget go for
option 2 If actual amount exceed 100% of budget go for option 3
When we do budgeting it generate a document We have to give
budgeting No. range interval only for 04 (Hard coded by SAP) This
is given at client level and not at controlling area level it is
not year specify. Note : Order Eg.Vehicle Expenses Cost element
:Eg.Vehicle for petrol, repairs,Driver salary etc., Maintain
no.range for budgeting: Option2 Option 3 Give warning Give To the
user Error1 And inform to Budget manager
59
Path :SPRO-Controlling-Internal orders-Budgeting / availability
control-Maintain no.ranges for budgeting (Tr code is OK11) Select
change intervals button Define tolerance limits for availability
control Same path Select new entries button Controlling area
Profile Tr.group Action Usage Save Press enter to save in your
request Specify exempt cost elements from availability control Same
path Petrol expenses Repairs Drivers salary is Fixed cost We can
specify when we post to drivers salary all with order AP9Z1234 Even
if, it exceeds 85% of budget no. message need to be given. It is
known expenditure Select new entries button Controlling area :BIL
Cost element :400100 Salaries account Save Press enter to save in
your request Maintain budget manager Same path Select new entries
button Controlling area Order :BIL :BILV :BIL :select 000001
General budget profile :++ all activity groups :select 2 waring
with mail to person response :85
60
Object class User name Save
:OCost (Overhead cost) :SAP user (budget manager)
Press enter to save in your request Budgeting order wise (END
USER AREA) Path :Accounting-Controlling Internal
order-Budgeting-Original budget Change (Tr code is K022) Order
Enter For the period :500000 (Budget amount) Over / budget also
500000 From the menu select Extras Availability: Control Activate
Save :AP9Z1234
Posting of petrol expenses (F-02) Give the document date Type
Company code Posting key Account no. Enter Give the amount Order
Text Posting key Account no. Enter Give the amount Business area :*
:BILH :350000 :AP9Z1234 :Petrol expense :50 :200105 SBI current
account :Todays date :SA :BIL :40 :400310 Petrol expenses
61
Text
:+
From the menu select Document Simulate and save Ignore the
message press enter To view in box of the budget manager Path :SAP
Menu Office Work place (Tr code is SBWP) Select inbox folder We get
a message accounting document no.
62
PROFIT CENTER ACCOUNTING This is used to view profitability
division wise /product wise /location wise if business area is not
use in FI Idea scenario Company FI | Company code FI | Business
area FI (Location) |
---------------------------------------------------------------------------------------|
| | | Steel Cement Pharma Co-profit center Division Division
Division Accounting | | Product wise Co profitability Analysis
Option 1 Hyderabad location | Steel Cement Pharma Profitability
Option 2 HYD | Steel
BGL | cement
MOM | Pharma
Profitability Balance sheet
The advantage of profit center accounting is it derives profit
center automatically though derivation rules. A) In case of
expenditure Tough cost centers B) IN case revenues Automatic
account assignment C) In case of balance Though business area Sheet
it items (Applicable for option 2) Eg:a) At the time of creation of
cost center assign profit center Dept A-Assign profit center
steel
63
b) At the time of posting wages a/c Dr 500000 Dept A To Bank
500000 It updates cost center Dept A as well as profit center
steel. We have to create dunning profit center. At the time of
posting, when there is no derivation rules, system updates dummy
profit center. Transfer form dummy profit center to respective
center. Create derivation rule so that future transactions will not
go to dummy profit center. They will go to respective profit
centers. Set controlling area (OKKS) Path :SPRO-Controlling Profit
center accounting-Basic settings-Set controlling area Give the
controlling area :BIL Enter Maintain controlling area settings:
(OKE5) (Follow through path ) Path :Up to base settings the path is
same- Controlling area settings-Maintain controlling area settings
Standard hierarchy :BIL
Select elimination of business volume check box Profit center
local currency type Select confirm button Select store truncation
currency check box Save Elimination of internal business volume
Purchase Order | | | | Goods Receipt Material no. Vendor no. Plant
Profit center Qty Rate 1 Profit center steel 1234 HYD Steel 1 Kg
100 :Select 20 Controlling area currency
It should no take in steel profit center 100+100 It should take
only one time
64
Create dummy profit center Path :SPRO-Controlling-Profit center
accounting-Master data-Profit center-Create dummy profit center(Tr
code is KE59) Double click on dummy profit center Give the dummy
profit center Select basic data button Name Description Profit
center group Save Set control parameters for actual date Path : Up
to basis settings the path is same Controlling area settings
-Activate direct postings-Set control parameters for actual data
(Tr code is 1KEF) Select new entries button From year :2008 Select
Line items check box Select online transfer check box Save Maintain
plan versions Up to activate the path is same Plan version Select
version Maintain plan version :0 Plan /Actual Version :BIL dummy
:Dummy profit center for BIL :BIL :BIL dummy
Double click on settings for profit center accounting folder
Select new entries button Year :2008
Select online transfer check box Select line items check box
Exchange rate type Save :B (bank selling rate)
65
Press enter to save in your request Define no. ranges for local
documents A) At the time of creation of cost center Assign profit
center Dept A-Assign profit center B) At the time of posting Wages
A/c 500000 Dept A To Bank 500000 When there is no derivation rule
It updates dummy profit center Transfer from dummy profit center To
Profit center steel No FI document will be generated No co document
will be generated once profit center document will be generated
(local) Path :SPRO-Controlling-Profit center Accounting-Actual
postings-Basic settings: Actual Define number ranges for local
documents (Tr code is GB02) Select maintain groups button Select
actual document from direct posting with GB01 check box From the
menu select interval Give the company code Enter Select interval
button Year From no To Enter and save Press enter to save in your
request Select back arrow Select planned doc.with direct posting
with GB01 check box Form the menu select interval maintain Give the
company code Enter Select interval button :BIL :2008 :1 :100000
Maintain :BIL
66
Year From no. To no. Enter and save Creation of profit
center:
:2008 :100001 :200000
Path :Accounting-Controlling-Profit center accounting-Master
data-Profit center-Individual processing-Create (Tr code is KE51)
Give the profit center Select master data button Analysis period to
Name Long text Person responsible Profit center group select
activate button (Shift+F1) :01.04.2008 to 31.12.9999 :Steel :Profit
center steel :Mr A :BIL :Steel
One more profit center profit center cement select master data
button name :Cement long text :Profit center cement person
responsible :Mr B profit center group :BIL select activate button
Create account groups up to master data the path is same Account
group create (Tr code is KDH1) Give the account group name Enter
Description Select insert account button From :300000 :P & L
accounts for BIL :PLITEMS ( Profit & Loss)
67
To Save Select Back Arrow Account groups Enter Description
Select insert account button Form A/c To A/c Save Assign profit
center in cost center
:499999
:BSITEMS
:Balance sheet accounts for BIL
:100000 :299999
Path :Accounting-Controlling-Cost center accounting-Master
data-Cost centerIndividual processing-Change (KS02) Give the cost
center Select master data button Give the profit center Select save
button or Ctrl+S Ignore the warning message press enter Cost center
Enter Profit center Save Ignore the warning message press enter
Creation of sales account as revenue element (FS00) Give the GL
account no. Company code :300000 Sales A/c :BIL :Cement :Dept B
:Steel :Dept A
Select edit cost element button Enter Cost element category
:Select 11 Revenues
68
Save
Maintain automatic account assignment of revenue elements Path
:SPRO-Controlling Profit center accounting Actual postings-Maintain
automatic account assignment of revenue elements (Tr code is OKB9)
Select new entries button Company code Cost element Account
assignment details Save Press enter to save in your request Select
:BIL with cost element 300000 :BIL :300000 Sales A/c :Select 2
Business area is mandatory
Double click on detail per business area /valuation area folder
Select new entries button Option 1 HYD location | Steel cement
Pharma 300000 HYD Steel 300001 Sales cement HYD Cement 300002 Sales
pharma HYD Pharma Option 2
HYD | Steel
BGL | Cement 300000 HYD BGL Mum
MUM | Pharma Sales account Steel Cement Pharma
Business area Profit center Business area Profit center Save
: BILH : Steel : BILB : Cement
Choose addition balance sheet and p & L accounts Applicable
for second scenario: Application for second option
69
Same path
Select choose accounts (Tr code is 3KEH)
select new entries button Account from Account to :100000
:299999
Default profit center :Steel Save Press enter to save in your
request Select profit center determination button Select crate step
button Step description :Profit center derivation though business
area for balance sheet items. Select drop down button under name
column Select GSBER businesses area Save Select maintain rule
values button Select source field intervals on /off button Account
no.100000 To account no.299999 Business area Profit center Account
no To account no. Business area profit center Save END USER AREA 1)
Planning profit center wise for p & L items Path :Accounting
Controlling Profit center accounting Planning cost /Revenues-Change
(Tr code is 7KE1) :BILH :Steel :100000 :299999 :BILB :Cement
70
Version select From period To period Fiscal year Company
code
:0 :8 :8 :2008 :BIL
Select next page or page down button Profit center Account group
:Steel :PLITES
Select from based radio button Select overview screen button Per
account no.300000 Sales account Profit center reporting currency
:600000 (Minus report currency) For account no.400100 salaries A/c
without any sign Save Planning profit center wise for balance sheet
items (Only for second scenario) Up to planning the path is same
7KE3) Version From period To period Fiscal year Company code :0 :8
:8 :2008 :BIL Balance sheet accounts change (Tr code is
select next page or page down button Profit center steel Account
group :BSITEMS
Select form based radio button Select overview screen button For
account :100300 SBI rupee term loan
Profit center reposting currency 20000- with minus sign
71
For 200105 SBI current account profit centers reporting currency
200000 without any sign Save
Posting of cash sales (F-02) Give the document date Type Company
code Posting key Account no. Enter Amount Business area Text
Posting key Account no. Enter Amount Business area Text :* :BILH :+
:550000 :BILH :sales posting :50 :300000 (Sales a/c) :Todays date
:SA :BIL :40 :200105 (SBI current account)
Form the menu select Document Simulate and save Posting of
salaries (F-02) Document date Type Company code Posting key Account
no. Enter Give the amount :475000 :Todays date :SA :BIL :40 :400100
Salaries a/c
72
Cost center Text Posting key Account no. Enter Amount Business
area Text Document simulate and save
:Dept A :Salaries posting :50 :200105 SBI current account
:* :BILH :+
To View variance report profit center wise for P & L items
Path :Accounting Controlling Profit center accounting-Information
systemRepost for profit center accounting-Interactive reporting
Profit center group:Plan /actual /variance (Tr code is
S_ALR_87013326) From period To period Fiscal year Plan version
Profit center values Profit center accounts groups Select execute
button To view variance report profit center wise for balance sheet
items: Up to interactive reporting the path is same Profit center
group: Balance sheet accounts plant / Actual /Variance (Tr code
S_ALR_87013336) From period To period Fiscal year Plan version
Profit center values Balance sheet account group :8 (Running month)
:8 :2008 :0 :Steel :BSITEMS :8 (Current /Running month) :8 :2008 :0
:steel :PLITEMS
73
Execute Transfer of values from one profit center to another
profit center One cost center works for no.of profit centers we an
assign only one profit center is cost center. In dept A Profit
center steel From profit center steel transfer to cement Manual
transfer through cycles No.FI document will be generated No.CO
document will be generated Only profit center document will be
generated. Path :Accounting Controlling-Profit center
accounting-Actual postings-Profit center document Enter (Tr code is
9KE0) Layout select 8A-001 document :Profit center /account Select
execute button Company code Select Enter screen button Profit
center Account no. :Steel :400100 Salaries :BIL
In profit center local currency 500000 (with minus sign) Profit
center Account no. Amount Save :Cement :400100 Salaries :500000
(without minus sign)
74
INTEGRATION Organization structure : FI: Business area Company |
Company code MM:Structure Business area
SD:
Structure
| Factory / Sales organization Company code level / | Plants
Branch/Port | Regional location | | | Storage locations Raw
material / Finished goods Distribution-> Direct sales through
/Packing material Channel Agents | | Division Product groups/
products
Why we create port as a plant: Keep the material on ship HYD
Chennai Factory Port
Customer
Export sale Terms of delivery-FOB (Free on Board) ownership will
be transferred once we kept the martial on ship. Business area will
be assigned to plants, plants will be assigned to sales
organization business area will be assigned to sales organizations.
In SD module, combination of sales organization, distribution
channel and division One sales area. Sales Area 1 Hyd sales Org. |
Sales Area 2 Hyd Sales org |
75
Direct sales | Steel
Through agents | Steel
Movement types: Similar to posting keys in FI 101 Material
receipt against purchase order /production order 102/122 Reversal
of 101 201 Issue to cost centers 202 Reversal of 201 261 Issue to
orders 262 Reversal of 261 521 Production receipt without
production orders. 522 Reversal of 521 561 Opening stocks taking
562 Reversal of 561 601 Delivery (sales) 602 Reversal of 601
Difference between 201 and 261 Cost centers Issue material
(Movement type 261) Stores items to issue (Mov.type 201) (cost
center 201) Dept A Production order 1 Dept B Dept C
Production order 2 Production order 3
Material issue is identifiable to production orders use movement
type 261 Material issue is not identifiable to production orders
use movement type 201 Transaction key /process key a) BSX b) WRX c)
PRD d) GBB Inventory postings Goods receipt /Invoice receipt
(GR/IR) Price difference /Production order differences Offsetting
entry for inventory postings (i) VBR consumption (ii) VNG Scrapping
(iii) BSA Opening stocks (iv) ZOF Production receipt without
production order (v) AUF Production receipt with production order
(vi) VAY Delivery where sales account is created as revenue element
(CO implemented) (vii) VAX Delivery where sales account is not
created as revenue element (Co not implemented)
76
(viii) AUA production order differences Eg: 400000 Raw material
consumption 200121 Inventory raw material For consumption Raw
material consumption Dr To Inventory raw material For GBB For BSX
VBR Assign account no.400000 Assign account no.200121
Valuation class: Valuation class determines the GL accounts to
be posted automatically. A) Raw materials Local Imported Inter unit
purchases Inter company purchases 4 Valuation class B) Stores
:Local 2 valuation class C) Finished goods own manufacturing 1
valuation class Valuation grouping code / valuation modifier
/Valuation modification key: Company codes Chart of accounts Plants
Local raw materials BIL BIL HYD-BGL BGL-MUM RM1 RM2 RM3-RM1 HYD-MUM
RM2-RM3 BCL BSL
Incase of purchases, 200121 Inventory raw material local When we
follow same chart of accounts for numbers of company codes, Instead
of assigning accounts number of times, assign only one time by
using valuation grouping code. Valuation Areas Plants HYD BGL BGL
MUM HYD MUM Chat of accounts Company code Valuation Grouping X X X
X X X
BIL BIL BIL BIL BIL BIL
BIL BIL BCL BCL BSL BSL
77
For X in case of RM local purchases assign account number
200121, inventory Raw material local. This is similar to posting
periods in FI A) Define posting period variant B) Assign posting
period variant to company codes X X to BIL X to BCL X to BSL
c) Define posting periods for variant X for X1, 2008 12,2008
Material types Raw materials Stores & spares Packing &
material Finishing goods Semi finished goods Purchased Produced
Trading goods Services Price controls ROH V-Moving average price
ERSA V-Moving average price VERP V-Moving average price FERT
S-Standard price HALB V-Moving average price S-Standard price HAWA
V-Moving average price DIEN purchase price purchase price purchase
price Raw materials + Overheads Purchase price Raw
material+Overheads Purchase price
Semi finished goods purchased Dept A Dept B Dept C 15 days Sales
order To be delivered with in 2 days
Dept D FG Purchase an item where with In 2 days purchase an item
Where processing of A,B and C is completed D processing of D
Semi finished goods produced Dept A Dept B Dept C Dept D Issue
RM 15 days time Sales Dept got an order for sale where the
processing of A and B is completed Take production After completion
Of B and sell Trading goods: Purchase FG and sell FG without doing
any processing. Services: Plant is having operating capacity No
sales orders Job work for others
78
We get job work changes Material Does not belong to us -
Material types are similar to account groups in FI - There we
create GL masters here we create material masters. - GL master are
created under account group where as material masters are created
under material type. - Material master is created at plant
level-when number of plants are using the same material it will be
extended(copied) to other plants. - For materials we can open 2
periods at a time. Oct Nov. When we open Dec.-Automatically Oct
will be closed. Where we crate material master We will have number
of tabs (Views) Basic data Purchase view Sales view MRP view
Quality Ware house management Accounting Costing MM Flow A)
Material requisition By production Dept to Stores B) Purchases
requisition By stores to purchases C) Call for enquiries, Get
quotations and do price comparisons By purchase Dept. D) Create
purchase order Vendor number, Material Quality, Rate, Plant,
Company code Delivery terms, payment terms, Purchase organization
E) Release It is optional It will work through work flow If P.O
value is less than Rs.10000 To be released by manager purchases
If P.O value is Rs.10000 and above To be released by
GM(Purchases) And less than 100000 if P.O value is 10000 and above
To be released by Director Once we save the purchase order, based
on the value it goes to the inbox of the command authorized person,
till is releases we cant take goods receipt. F) Goods receipt With
reference to P.O Inventory RM local DR 100 To GR/IR clearing RM
local 100 Balance sheet current asset BSX Balance sheet current
liability WRX
79
(Qty in GR*Rate as per P.O) Invoice verification-Against PO/GR
GR/IR clearing RM local DR 100 Balance sheet CL WRX To party 100
Balance sheet CL From PO, Party no. will be taken i) Raw material
consumption RM Consumption Local DR 100 P & L Debit GBB VBR To
inventory RM local 100 BS C/A(Current Asset) BSX J) Wages payment
Wages A/c DR 20 P & L Debit To Bank 20 BS CA K) Production
Receipt At product cost Inventory FG DR 120 BS C/A BSX (FG
=Finished goods) To INC/DEC in stocks FG 120 P & L Credit GBB
ZOF In case of on production order /CPP module not implement GBB
AUF in case of production order (PP module implemented) SD steps L)
Delivery At product cost INC /DEC in stocks FG DR 120 P & L
Credit GBB VAX If sales account is not created as revenue element
(Co not implemented /GBB VAY If sales account is created as revenue
element (Co Implemented) To Inventory FG 120 BS C/A M) Sales
billing Customer A/c DR 150 BS C/A From sales order, customer
number will be taken To Sales 150 P & L credit ERL LCL=Local
Inventory FG=Raw material consumption local +wages GR=Goods receipt
INC/DEC STK FG=Increase /Decrease stock finished goods P & L
account H) RM can local Wages Net profit 100 L)Sales 20 J)INC/DEC
STKFG 120 30 K)INC DEC STK FG -120 ------150 === 150 0 ----150 ===
G)
80
Balance Sheet Surplus in P & L Account F) GR/IR CLG RM LCL
100 E) GR/IR CLRG RM LCL a) Sundry creditors RM 30 F) INV RM LCL
100 H) INV RM LCL -100 -100 0 --------0 100 I) Bank -20 j) INV FG
120 K)INV FG -120 0 L)Sundry debtors 150 ----------130 130 ===
===
Integration rules A) In material master we specify valuation
class B) For valuation class we assign GL accounts based on the
nature of transaction C) At the time of material receipt/Issue
stores person enters movement type, material number and quantity.
Our accounts will be up dated automatically based on accounts
assignment to valuation class which is specified in material master
Eg: Material no. Valuation Inventory postings BSX GR/IR Clearing
(WRX) 100520-GR/IR CLRG RM LOCAL Consumption (GBB VBR) 40000-RM
Consumption-
RM1 (local)
3000 RM local 200121-INV-RM Local
IMP Local Raw Material 1. Purchase order Material RM1 Vendor
-1234 Qty-100 Kgs Rate 5 Rs Save P.O.No.1 2. Goods receipt with
reference to P.O-P.O No.1 Movement Type:101 Debit BSX 200121 Credit
WRX Material RM1 Qty 60 kgs Save Material Doc no.200001 200121
Inventory RM local DR 100520 GR/IR CLR RM Local (Qty IN GR *Rate as
per P.O) 60*5
300 300
81
Raw material consumption Movement type 201 Debit GBB VBR Credit
BSX 200121 Material RM1 3000 Qty 10 Kgs 400000 RM Consumption LCL
DR 50 200121 Inventory RM Local 50 (Qty issued * Moving average
rate) Imported raw material 1. Purchase order Material -RM2 Vendor
-4567 Qty-1Kg Rate -100 PO No.2 2. Goods receipt- with reference to
PO-PO No.2 Movement type:101 Debit BSX 200122 Credit WRX 100521
Martial RM2 3001 Qty 1 Kg Save Material Doc No.200003
200122Inventory RM IMP DR 100 100521 GR/IR CLRG RM IMP 100 (Qty IN
GR* Bate as per P.O) 1*100 Raw material returns Material doc
no.200003 Movement Material Qty Save 100521 200122 Type 102 Debit
WRX Credit BSX 3001 100521 100122 Debit A/c No. 400000
RM2 1 Kg Material doc no.200004 GR/IR CLR RM IMP Inventory RM
IMP
DR
100 100
Why SAP does not support purchase accounting why it supports
inventory accounting: RM Local raw material 1 Not included in
purchase Provision statement RM consumption=Qty Value Opening stock
0 0 0 2 3 Bill received Less stock reported by stores 0
82
0 516.50 516.50 _____________________________ 516.50 516.50 Less
:Closing stock 300 300 200
-----------------------------------------Raw material consumption X
X X ======================== Wrong wrong wrong 1. Purchase order
material no. RM1 Vendor 1234 Qty 100 Kgs Rate 5 Rs Excise 10% CST
2% Other change 1% Material receipt: We get excise invoice to claim
cenvat Final invoice many come or may not come. Only excise invoice
received Basic price 500 Excise 50 Stores person updates his
records with the above data. Issue: Not included in purchase
provision statement: Account Dep gets a statement from stores in
the month end material received bills not received to make purchase
provision. Stores person By mistake he has not included the above
item in the purchase provision statement. Account Dept.gets closing
stock statement from stores-in the statement he is showing 60 kgs
stock at 5Rs.300 Issue2 Closing stock valuation wrong We have
received invoice after words in invoice wrong Basic Excise CST2%
Other 1% Bill amount 500 50 11 5.5 ------566.50 500 50 11 5.5
-------516.50
Add purchase
--50
Purchase a/c cenvat receivable In the month end stores person
sends closing stock statement 60 kgs at Rs.5 Should be value
516.5/100*60=309
83
*Issue less stock reported by stores If this month production is
more, profitability will be more. If this month production is less,
profitability will be less. Physical stock available -60 Kgs
Reporting to accounts only 40 kgs 40*5=200 Inventory accounting 1.
Purchase order Material no.RM1 Vendor 1234 Qty 100 Rate 5 Tax code
A1 (10% Excise +2% CST) other charges 1% PO no.1 with reference to
PO no.1 101 RM1 100
2. Goods receipt Movement type Material Qty Save
Entry will be passed automatically Inventory RM local DR To
GR/IR CLR RM Local GR*Rate as per PO
516.50 516.50 Qty in
Store records : Material RM1 Qty :Value Receipt :100 Kgs 516.50
Account records 200121 Inventory RM local 516.50 DR 3. Raw material
consumption Movement type 201 Material RM1 Qty 40 Kgs Save
Accounting entry will be generated automatically RM consumption
local DR 206.5 (516.5) 100*40 To Inventory RM local 206.6 Qty
issued moving .AVG price Stores records: Receipt Issue Material Qty
100 Kgs 40 Kgs RM1 Value 516.50 206.6
84
-----60 Kgs
-----309.9
Accounts records 200121 Inventory RM local 516.50 DR 206.60 DR
CL stock value 309.9
Price differences are two types 1)Batch method
2)Moving average method |
------------------------------------------------------| | | Stock
fully available Stock partly available Stock no available
1st method Batch method: RM1 PO PR
10 RS
BILL for 12Rs 1.Material Receipt Inv RM local DR 1000 BSX To
GR/IR CLR RM LCL/100 WRX 2. Raw Material consumption RM consumption
local DR 100 GBB VBR To INV RM local 100 BSX
Batch Qty 1 100 2 50 ----150 10 --140 ----140
Rate 10 40
10
Amount 1000 2000 ----3000 100 ---2900 180 ----3080
3. Invoice verification GR/IR CLRG RM LCR DR 100 WRX INV RM
LOCAL DR 180 BSX 90*2 Price diff RM LCL 20 PRD 100*2 To Vendor 1200
form PO vendor no. is taken
Break up 1 90 12 1080 2 50 40 2000 Preparation in P & L
account : Raw material consumption : Raw material consumption +/
price difference RM Eg: RMC 100 PD RM 20 ---120 === For the
truncation key PRD We can assign raw material consumption account
or price difference RM A/c
85
Moving average method: stock fully available RM1 PO Price :10
Qty rate amount Bill qty 100 50 ---150 20 ---Average bill 130 10 40
Final Bill for Rs.12 1. Goods receipt
20
---130
1000 Inv.RM local DR 1000 BSX 2000 To GR/IR CLRG RM LCL 1000
------ 2. Raw material consumption 3000 RM consumption local DR 400
GBB VBR 400 To INV RM local 400 BSX ----2600 3.Invoice verification
GR/IR CLRG RM LCL DR 1000 WRX 200 GR/IR CLRG RM LCL DR 1000 WRX
----2800 INV RM Local DR 200 BSX 100*2 To Vendor 1200 form PO
Vendor no.is taken
Consumption rate: Value / Qty 3000/150=20 Next consumption r
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