End User Manual-CO

SUNBEAM AUTO PVT LTD.
PROJECT SUNRISE- SAP IMPLEMENTATION

CO PERIOD END CLOSING (END USER TRAINING MANUAL)
2013
Every effort has been made to avoid errors or omissions in this user Manual. In spite of this errors may
creep in. Any Mistakes, errors or discrepancy noted may be brought to our notice which shall be taken
care in the next version.
Sr.No. Description
T Code
Page
2-3
01.
Features in CO Module
02.
PM Order Settlement
03.
Cost Center Closing

a) Review of Expenses Booked in Cost Center
b) Manual Reposting of Cost (CC to CC)
c) Reposting Cycle Run for COPA Element trfd.
d) Review of Activity Post
e) SKF Maintained for Cost Allocation
f) Distribution Cycle Change/ Run
g) Assessment Cycle Change/ Run
S_ALR_87013611
KB11N
KSW5
S_ALR_87013617
KB31N
KSV2/KSV5
KSU2/ KSU5
04.
Cost Splitting
KSS2
19-20
05.
Activity Rate Calculation
KSII
20-21
06.
Revaluation of activity at Production Order/Cost

Collector
CON2
22-23
07.
Settlement of Die Production Order for Tool Room

a) WIP Calculation
b) Variance Calculation
c) Settlement of Project/WBS Element
Settlement of Product Cost Collector (PCC)
a) Variance Calculation
b) Settlement of Product Cost Collectors
08.
09.
10.
4-5
KO8G/KO88
5-18
24-28
KKAX/KKAO
KKS2/KKS1
CJ88/CJ8G
28-29
KKS1/KKS2
CO88/KO88/
KK87
29
COPA Assessment Cycle

a) Cost Center Assessment
KEU5
Variance Analysis
COPA Analysis
KKO0
KE30
Note: No part of this book may be reproduced or copied in any form or by any means (Graphic, electronic or
mechanical and photocopying) or reproduced without the written permission from SAPL Breach of this condition
is liable for legal action.
All the logos used in this Manual are owned by the respective principles.
Prepared by: Himansu Sekhar

(CO- Core Team Member-SAP)
(SAP-CO) Sunbeam Auto Private Limited, Gurgaon
Version 1.0 Dt. 17.01.2013

Page 1 of 29

PROJECT SUNRISE
SUNRISE- SAP IMPLEMENTATION
CO PERIOD END CLOSING ((END
END USER TRAINING MANUAL)
MANUAL
2013
1. Features in CO Module:
Modul
In Controlling Module of SAP following aactivities are involved:
-
Cost Element Accounting

Cost Center Accounting
Activity Based Costing
Variance Analysis
Profitability Analysis
Fiscal Year
Usually a period of twelve months
months, for which a company regularly creates financial statements and
checks inventories, For SAPL year will be from Apr to Mar.
Controlling Area
The Controlling Area is an entity in Controlling. All CO transactions in R/3 (software was manageable on
multiple platforms
atforms and operating systems) system would be entered with respect to the controlling area. In
SAP ECC 6.0 300 server there will be one controlling area (1000) to which two company code will be
assigned (1000 Sunbeam Auto Pvt. Ltd & 2000- Munjal Castings).
ngs). All data based in CO is controlling
area level.
1000
SUNBEAM
1000
Sunbeam Auto
Pvt.Ltd.
2000
Munjal Castings
Cost Center
An organizational unit within a controlling area that represents a defined location of cost incurrence.
The requirement at SAPL is to capture the cost Department wise. There also cost ce
center like activity
cost center for differences actual cost. Cost center would be divided into two groupings:
a) Production Cost Center (Category F)
b) Social Cost Center (Category S)
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2013
Cost Center Hierarchy for Cost Allocation (Plant-1000)
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2013
2. PM Order Settlement:
Plant Maintenance Order Settlement
T Code: KO8G (Collective basis) / KO88 (Individual basis)
Actual cost booked on "Released" Maintenance Orders till month end need to be partially/ fully settle
on cost centers defined in settlement rule of the Order.
This ensures that the cost incurred on the maintenance orders are transferred to cost centers. Thus,
these maintenance costs are also considered in activity rate recalculation.
Release (REL), technically complete (TECO) & Closed (CLSD)
After entered selection variant of PM Order (ZPM-1000 Company-1000), settlement period and fiscal
year and F8 (execute) below screen displayed.
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Then detail of PM Order view, click on
2013
and details as under :
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2013
3. Cost Center Closing: :

Before Starting of CO Closing activities following activities must be completed:
1)
2)
3)
4)
All FI entries should be completed for the period.

Review of expenses booked in various cost centers
Reposting of Cost
Actual activities confirmation on production Order by PP
3.a - Review of Expenses booked in Cost Centers

Transaction code
S_ALR_87013611 - Cost Centers: Actual/Plan/Variance
S_ALR_87013612 - Range: Cost Centers
S_ALR_87013613 - Range: Cost Elements
S_ALR_87013614 - Cost Centers: Current Period/Cumulative
Functionality:
Review of Expenses booked in various Cost Centers: -- Path :
Entered Controlling area:

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2013
Entered:- Fiscal Year, Period from~ To, Plan version, Cost Center Group.
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After specifying selection criteria click on
2013
or press F8. Following screen will be displayed :
If we want to see line item wise detail of expenses booked under particular cost element, double click
on that cost element, following screen will be despalyed :
To see actual line item double click on cost center actual line item. Following screen will be displayed:
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2013
If we want to see the original document of any line, double click on that line item, original document
will be displayed as below :
3.b- Re Posting of Cost (T Code : KB11N)
Click on KB11N, following screen will be displayed:
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2013
Entered:- Doc. Date, Posting date, Ref.Doc (leave it blank), Doc. Text which we may want to
mentioned, CCtr Old -Sender CC, Cost element, Amount, CCtr (New)- Receiver CC, Text- Narration of
document.
After putting all field then click on save
(or, ctrl S), then document number generated.
3.c- Actual Periodic Re Posting Cycle Run (T Code : KSW5)

All expenses related to COPA which is allocated through COPA cycle on final product, those expenses
transfer to particular Cost Center (i.e Fettling, GDC Fettling)
Entered period, Year and Cycle DIS-01 then execute.
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2013
To verify the value which are to repost from Sender Cost Center, put cursor under column Sender
and click on
, Receiver
bar, following screen will be displayed:
and click on
above tool
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Sender Cost Center:
Receiver Cost Center:
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2013
3.d - Review of Activity Confirmation T Code : S_ALR_87013617
Entered:- Fiscal Year, Period, Plan version, Cost Center Group then click F8,
Then you can see activity Quantity booked as per production booked by PP.
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3.e - SKF Maintained for Cost Allocation

T Code: KB31N- Maintain Statistical Key Figures
Following SKF maintained for Cost allocation:
CONS1 : Production of all CC for Consumable cost allocation (Kg Basis)
DEP1 : Original Cost of Machine Cost Center wise for Depreciation and Insurance cost allocation
EMP01 : Nos of employee maintain for labor cost allocation
FUEL1 : HSD & Furnace Oil consumption in Melting section for (Power cost allocation of Alloy)
KWH1 : Electric Unit actual consumed in Cost Center for Power Cost allocation
SCM1 : Natural Gas actual unit consumed in Cost Center for Natural Gas consumption allocation
3.f - Distribution Cycle Change /Run:

After Maintaining SKF value we have change, If fixed value maintained in distribution cycle
(T Code KSV2).
Cycle ZD01 then entered.
Then following screen will be displayed:
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Then Click on
2013
or click first segment, then segment wise data displayed.
If receiver Rule Cost Center will be fixed amount then change that amount as per detail. If other % age
change according to period, then change that figure.
Then save the cycle and close.

After Change distribution cycle then Run (T Code KSV5) and entered. Following screen displayed:
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2013
Update period which we want to run distribution cycle, Year, processing first with test run and detail
lists of Cycle ZD01. After putting all field click F8.
Click on Segment then Segment wise data will displayed as under:
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2013
To verify the value which are to allocated from Sender Cost Center, put cursor under column Sender
and click on
above tool bar, following screen will be displayed:
To verify the value which are to allocated to receiver Cost Center, put cursor under column Receiver
and click on
be displayed.
above tool bar, then cost center wise and cost element data will
Then finally production run (Un tick the test run) then execute.
3.g Assessment Cycle Change /Run:

After Run Distribution Cycle Run then we have change assessment cycle, If fixed value maintained in
assessment cycle (T Code KSU2).
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Cycle Z1000 for Gurgaon Plant then entered.
Update period which we want to run assessment cycle run, Year, processing first with test run and
detail lists of Cycle Z1000. After putting all field click F8.
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2013
Then same as distribution cycle sender & receiver but only difference between KSV5 & KSW5 cost
element. In KSV5 there are primary Cost element and KSW5 only Secondary cost elements appear.
4. Cost Splitting:
T Code: KSS2
Before this transaction run Cost Center allocation Cycles must have been executed. This
transaction allocates costs collected in production cost centres to particular Activity Type.
This transaction allocates costs collected in production cost centres to particular Activity Type.
This is also used to carry out target/actual comparisons and to calculate actual prices.
If you have posted actual activity independent costs exclusively to cost centers, these costs
must be apportioned (split) on the activity types. It is only in this way that you can compare the
actual costs with the target costs of the activity types and display the variances by activity type.
Then execute (F8).
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If we satisfied with result, go back and remove tick from Test Run and again execute KSS2 for update
run.
5. Activity Rate Calculation:

T Code: KSII
This transaction calculates actual activity rate by dividing actual costs allocated to activity type per cost
centre divided by actual activity quantity booked for each cost centre.
During actual price calculation, the system calculates iterative prices for activity types based on actual
costs and actual activities. The calculation takes into account all activity exchanges between cost
centers.
Before Price calculation happens in Cost Centre Accounting, it should be ensured that all the allocation
cycles are completely executed.
It only runs through test Run, If price update then remove tick from test run.
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Actual activity rate calculated by the system can view through T Code KBK6 and Standard activity
rate and actual activity rate can see by using T Code KSBT.
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6. Revaluation of activity at Production Order/Cost Collector:

T Code: CON2
Revaluation revaluates Product Cost Collector & Production Orders with actual activity rate.
All under/over absorbed overheads on production cost centres are transferred from cost centres to
production orders / product cost collectors. After running revaluation cycle, balances of all production
cost centres should become zero.
After actual price calculation, we can revaluate the objects at actual prices if they have used the
activities from cost centers. We do this, using Revaluation at actual prices (revaluation). The system
always determines the variances between the costs posted up to this point and the costs that occur
under the new prices.
For example, system would pass an entry debiting Cost Centre and Crediting production order if the
Actual Price is lower than the Plan price.
Once this is done, there will not be any under / over absorbed on the Cost Centre and the balance on
Cost Centre becomes ZERO. This needs to be cross checked with report S_ALR_87013611 - Cost
Centers: Actual/Plan/Variance.
Then Execute (F8)..
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7. Settlement of Die Production Order for Tool Room:

Die Order create as Discrete (Which Production booked through individual Orders) and Project create
with WBS Element (Work Bench Structure).
7.a WIP Calculation:

T Code: KKAO (Collective) / KKAX (Individual)
If production orders are partly completed then WIP calculation function valuates the unfinished
products (work in process).
In the Product Cost by Order component, the work in process is valuated at actual cost. Work in
process is calculated as the difference between the debit and credit of an order that has not been fully
delivered.
The inventory change can be transferred to Financial Accounting (FI) during period-end closing.
Settlement to FI can capitalize the inventory of unfinished products inventory will not be posted in
financial accounting.
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2013
Entered Plant, tick with production Order, Process Order, Period, Fiscal Year and RA version.
Then Execute.
7.b Variance Calculation:

T Code: KKS1 (Collective) / KKS2(Individual)
Variance calculation provides us with detailed information on the variance in production orders.
It shows the amount of the variance between the actual costs debited to the object and the credit from
goods receipts (total variance). System assigns the variances to different variance categories depending
on the cause of the variance.
Putting Plant, Period, Fiscal Year and click on
. Following report will be displayed:
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2013
7.c Settlement of Project/ WBS Element:

Settlement will get executed for Projects & Production Orders assigned to projects. The variances
calculated in previous step will get posted to financial accounting. The variances computed on
production orders are transferred to COPA on running settlement. The settlement rule defined for the
production orders / projects determines how the variances are settled.
For Production orders the settlement is onto the final material of the order. For project, the settlement
will be on production order of final finished product.
For Sunbeam, in case of Tool Room, the SFG/FG materials are valuated with Price control indicator as
V (MAP), as actual cost of production of die is required.
Hence variance on production orders, output of which is already consumed, & stock of the item is zero,
will get settled on WBS element (project). For those projects, whose status is marked as TECO, cost on
the project will be settled on production order of final finished product. Thus, this will again leave
balance on production order of final finished product.
We will have to run T Code: CJ88 / CJ8G again to transfer this balance to final material of the project.
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After Putting all data then execute
Then detail of PM Order view, click on
and details as under:
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8. Settlement of Product Cost Collector:

8.a Variance Calculation:
T Code: KKS1 (collective) / KKS2 (individual)
In this process only calculation of Variance is done for individual Product. System assigns the variances
to different variance categories depending on the cause of the variance (i.e Production Variance, Price
Variance etc.)
Variances are computed for Product Cost Collectors. Rest procedure remains the same as that of
variance calculation explained under tool room.
8.b Settlement of Product Cost Collectors:

T Code: KO88 (individual) / CO88 (collective)
After calculation of variance in update run, we have to run settlement to post the values of variances
on product Cost Collectors.
Similar to settlement of production orders, variances computed on Product Cost Collectors are
transferred to COPA on running settlement.
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9. COPA Assessment Cycle:

9 COPA Assessment Cycle Run:
T Code: KEU2 (Change) and KEU5 (Run)
Direct Cost of Cost Center taken in distribution & assessment Cycle rest Cost settlement to product
directly on sales value/ Qty ratio. This function is used to transfer to Profitability Analysis any under
absorption / over absorption present on Cost centres.
After executing this, the balance on cost centres should become zero.
Page 29 of 29

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SUNBEAM AUTO PVT LTD.

PROJECT SUNRISE- SAP IMPLEMENTATION

Cost Center Closing

Activity Rate Calculation

Revaluation of activity at Production Order/Cost

Settlement of Die Production Order for Tool Room

COPA Assessment Cycle

Prepared by: Himansu Sekhar

Version 1.0 Dt. 17.01.2013

SUNBEAM AUTO PVT LTD.

Cost Element Accounting

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

Cost Center Hierarchy for Cost Allocation (Plant-1000)

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

Then detail of PM Order view, click on

and details as under :

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

3. Cost Center Closing: :

All FI entries should be completed for the period.

3.a - Review of Expenses booked in Cost Centers

Entered Controlling area:

SUNBEAM AUTO PVT LTD.

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

or press F8. Following screen will be displayed :

SUNBEAM AUTO PVT LTD.

3.b- Re Posting of Cost (T Code : KB11N)

Click on KB11N, following screen will be displayed:

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

(or, ctrl S), then document number generated.

3.c- Actual Periodic Re Posting Cycle Run (T Code : KSW5)

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

Sender Cost Center:

Receiver Cost Center:

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

3.d - Review of Activity Confirmation T Code : S_ALR_87013617

SUNBEAM AUTO PVT LTD.

3.e - SKF Maintained for Cost Allocation

3.f - Distribution Cycle Change /Run:

Then following screen will be displayed:

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

or click first segment, then segment wise data displayed.

Then save the cycle and close.

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

Click on Segment then Segment wise data will displayed as under:

(SAP-CO) Sunbeam Auto Private Limited, Gurgaon

SUNBEAM AUTO PVT LTD.

above tool bar, following screen will be displayed:

3.g Assessment Cycle Change /Run:

SUNBEAM AUTO PVT LTD.

Cycle Z1000 for Gurgaon Plant then entered.