Co

CONTROLLING (CO)
[Meghanath Reddy]
2011
CONTROLLING (CO)
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
Areas to be covered:
1) Basic settings for controlling area
2) Cost element accounting
To update Co records / sub modules cost elements are required. There are two types of cost
elements
1.
2.
primary cost elements

Secondary cost Elements
3.
Cost Center Accounting: This is used to view department wise costs. In organizations
we have no of cost centers.
Eg: Production cost center/ Service cost center / administrative cost centers
4.
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.
Sales men salaries, Advertisement discounts to customers
Exhibition costs:
conveyance. Create a exhibition order
5.
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

Eg: Finished goods and work in process.
Asreddy.ariga@gmail.com
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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
Material management (MM module to financial module integration
Sales & Distribution (SD) modules to financial module integration
Production module (PP) module to financial module integration
ECC6 new features
Capital work in progress line item wise settlement (Asset accounting)
Central Excise and sales tax
BASIC SETTINGS FOR CONTROLLING:
Maintain controlling area
FI Organization Structure
CO. Organization Structure
Company
|
Company code
|
Business area
Controlling
|
|
|
Cost Center
Scenario - 1
Company
|
Company code
|
Business area
=
---
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
Page 3
(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.
1) When management wants to view number of company codes cost centers data at a
time i)
It is not possible in 1st Scenario
ii)
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 i)
Directly it is possible in 1st scenario.
ii)
Also it is possible in 2nd Scenario - By creating cost center groups.
It means 2nd Scenario is more flexible.
3) When company codes activates are different it is better to go for 1st scenario
MAINTAIN CONTROLLING AREA:

Path: SPRO --------- > Controlling --------- > General controlling --------- > Organization --------- >
Maintain controlling area (Tr.Code is OKKP)
Double click maintain controlling area.

Select new entries button
When we go for 1st scenario
Company code
: FSL (Fenner steels ltd)
Controlling area code also should be only FSL
When we go for 2nd scenario:
Controlling area code can be any code
In the beginning we go for 1st scenario
Controlling area
Name
Company code to controlling area
Currency type
:
:
:
:
FSL
controlling area for FSL
Select controlling area same as company code
select 10 company code currencies.
Once we select currency type10 currency field / Chart of Accounts filed / Fiscal year variant filed
will be updated automatically.
Cost Center standard hierarchy
: FSLHIER
Page 4
Save
Select yes button for the message system to create as a standard hierarchy
Select create request button
Short description
: Co customization for FSL
Press enter
Press enter once again to save in the request.
Double click on assignment of company codes folder

Give the company code : FSL
Select save button or Ctrl+S
Press enter to save in your request
Double click on a activate components / control indicators folder
Fiscal year
: 2011
Cost center
: Select component active
Select A active type check box
Order management select component active.
Select profit center accounting check box
Save
Ignore the warning message press enter
COST CENTER STANDARD HIERARCHY:
When we create cost centers we have to specify under hierarchy we are creating cost centers
Cost center standard hierarchy
Cost centers
Dept. A
VSLHIER
|
Dept.B
Dept.C
In reports:
We want to see only cost enter dept a we give Dept A
We want to see only cost center dept B data we give dept B
We want to see all cost centers data we give FSLHIER
MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS: (KANK)
1. CO through posting from FI (Business transaction - COIN
In fi
Salaries a/c dr 200000
cost center dept A
To bank
200000
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1 fi document will be generated

1 Co document will be generated -COIN
INFI
IN Co
Document type
No range
No. range intervals
SA
|
01
|
1-100000
Business transaction COIN

|
|
1-00000
IN F-02 screen we post Manual posting
Automatic posting
1. Repost Co line items (Business transaction -RKU3)

Option 1
Transfer document wise
Posting in FI
Salaries A/c
Dept.A
Dr
500000
cost centers common
300000
150000 Dept.B
50000Dept C
To bank
500000
repost co line item
2 Documents will be generated

1 FI Document
1 Co Document
No Fi document
1 Co document - RKU3
Total documents generated

1.
2.
FI Document
CO Documents
Transfer Line item wise
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Salaries A/c
Dept.A
Dr
500000
cost centers common
300000
150000 Dept.B
50000Dept C
Rent A/c
Dr
To bank
100000
cost center Dept A
600000
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)
Eg: We have cost center Dept A we have posted expenditure from 31st April to 30th June to split
the cost center Dept A into Dept A and Dept X from 1st July
Dept A
30/04/2011
31/05/2011
30/06/2011
Dept X
400100 Salaries 100000
400100 Salaries 125000
400100 Salaries 150000
---------400100 total 375000
30-6-2011
400100
Salaries
400101 wages 200000

400101 wages 250000
400101 wages 225000
---------Total 400101 675000
30-6-2011
400101
wages
100000
30/04/2011
31/05/2011
30/06/2011
125000
30/04/2011
400300
Rent
150000
Page 7
31/05/2011
30/06/2011
400300
400300
Rent 150000
Rent 150000
-------400300 Total 450000
30/6/2011
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
: VSL
Select maintain groups button
From the menu select group -------- > Insert F6
Text
: Co doc no. range interval for VSL
From number
: 1
To number
: 100000
Enter
Double click on
Double click on
Double click on
Double click on
COIN
RKU3
RKU1
RKP1
Select Co.No.range interval for VSL 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:
Versions are nothing but budgets
We have planned for the whole year
version 0
After one month revise planned figure version 1
After 2 month revise planned figure
version 2
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After wards we can compare actual with
Path: SPRO
Organization
Original budgets
Revised budget
Re revised budget
--------- > Controlling

--------- > Maintain versions
Version 0
version 1
Version 2
--------- > General controlling
--------- >
Select version 0 (Plant /actual version)

Double click on settings for each fiscal year folder
Give the controlling area
: VSL
Enter
Save
Once budgeting is completed at end user are a select version locked - So that nobody can
change budget figures.
Select bank arrow
Planning is made attend user area after plannings completed we select version locked
check box , nobody 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 nothing but
GL expenditure accounts
Eg: 400100 salaries a/c
Created in Fi to be created as cost element
in co to update Co records
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
Eg: cost center dept C dept A dept B
Service dept
production dept
Salries
200000
Wages
300000
Power
100000
We allocate dept C cost to dept A and dept
B by using secondary cost elements
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COST ELEMENT CATEGORIES

When we create a cost element we have to specify to which category the cost element belongs
cost element categories are given by SAP along with package 2 types of 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 Trade discount / sales
commission where CO-Profitability analysis module is implemented
22.
External settlement (Settlement from CO - FI): This is used for allocation of internal
order costs to GL accounts / assets (from Co to Fi).
SECONDARY COST ELEMENT CATEGORIES:
21.
31.
41.
42.
43.
Internal settlement (Settlement from CO to CO) This is used for allocation of internal
costs to cost centers. (Co to Co)
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 allocations from one cost center to other cost centers.
Internal Activity Allocation: This is used for calculation of activity types rate in product
costing in production cost.
Eg: Machine hours rate / labor hour rate
21-7-2011
COST CENTER ACCOUNTING
This is used to view department wise costs we use cost center accounting.
In organizations there will be no.of cost centers
Eg: Production cost centers / service / administration cost centers
When we create cost centers we have to specify the cost center category i.e. whether it is a
production dept or service dept.
When we want to see no. of cost centers data at a time we create cost center group and assign
the respective cost centers
In the month end we allocate costs from one cost center to other cost centers the basis of
allocation may be amount basis / percentage basis / statistical key figures basis / activity type
basis
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SAP has given 4 allocation methods

i) Assignment
ii) Distribution
iii) Periodic reposting
iv) Indirect activity allocation
Steps for postings to cost centers:
1) Creation of primary cost elements
A) FI Area
B) CO Area
C) Automatic creation
|
|- Co Area
|
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. 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
In some companies Fi persons only creates GL accounts as well as cost elements, the
transaction code FS00
Eg: earlier we have created 400100 salaries account now to create 400100 as primary
cost element.
Use to FS00 - GL masters creation
Give the GL account number : 400100 (Salaries Account)
Company code
: FSL
Enter
Select edit cost element button
Valid from
: 1-4-2011 to 31-12-9999
Press enter
G/L shrot text = cost element name
GL long test = cost element description
Cost element category
: select 1 primary cost/ cost reducing revenues
Save
1. B) Creation of Primary cost element at CO area:
Fi person creates G/L accounts at FS00
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He will inform to Co person to create that account as cost element.

Eg: created a/c 400300 rent account
He will inform Co person to create cost element Co person will create cost element at Co
area
Path: Accounting --------- > Controlling --------- > Cost element accounting --------- > Master
data --------- > Cost element --------- > Individual processing --------- > Create primary (Tr.code
KA01 )
Cost element
: 400300 Rent Account
Valid from
: 01.04.2011 to 31.12.9999
Enter
: 1 (primary cost /cost reducing revenue)
Save
1C) Automatic creation of primary cost elements:
A company has gone for SAP FI in the year 2006 in this year they want to go for controlling
We have say 1000 accounts with data
To update controlling we have to create 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 : FSL
Enter
Account from
: 400301
Account to
: 499999
: select 1
Save
Press enter to save in your request.
Create batch input session (OKB3)
Path: SPRO --------- > Controlling --------- > Cost element accounting-Master data --------- >
Cost elements --------- > Automatic creation primary and secondary cost elements --------- >
Create batch input session (OKB3)
Give the controlling area : FSK
Valid from
: 01.04.2011
Valid to
: 31.12.1999
Session name
: FSL
Execute
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Execute batch input session (Tr code is SM35)

Path: SPRO --------- > Controlling --------- > Cost element accounting --------- > Master
data --------- > Cost elements --------- > Automatic creation primary and secondary
cost elements --------- > Execute batch input session
Select session name
: FSL
Select process button
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
: FSL
Enter
Creation of field status group by making cost center required entry field: (Tr.Code is
OBC4)
Earlier in Fi: we have created
400100 salaries account
Field status group
: G001
100000 Equity share capital
Field status group
: G001
Now if we make cost center required for field status group G001 for equity share capital
also it will ask what is the cost center
Now we use field status group G004 cost accounts make cost center field required
Transaction Code
: OBC4
Select field status variant
: FSL
Double click on filed status groups folder
Double click on field status group G004 cost accounts
Double click on General data
Text select 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 select option entry filed
Save
Page 13
Assign new field status group in GL expenditure accounts (FS00)

Give the GL account
: 400100 salaries account
Company code
: FSL
From the menu select GL account - --------- > change
Select create / Bank / Interest tab
Filed status group
: G004
Save
Give the GL Account
: 400300 Rent A/c
Company code
: FSL
From the menu select GL account -- --------- > change
Change field status group
: G004
Save
Creation of cost centers:
Path: Accounting --------- > Controlling --------- > Cost center accounting --------- >
Master data --------- > Cost center --------- > Individual processing --------- > create
(Tr.code is KS01)
Controlling area
: FSL
Enter
Cost center
: Dept A
Valid from
: 01.04.2011 to
31.12.9999
Enter
Give the name
: Dept A
Description
: Cost Center Dept A
Person responsible
: Mr. A
Cost center category
: Select 1 production
Hierarchy area
: select FSLHIER
Business area
: FSLH
Currency
: INR
One more cost center
Valid from
Reference cost center
Controlling area
Enter
Change the name
Description
: Dept B
: 01.04.2011
: Dept A
: FSL
to
31.12.9999
: Dept B
: Cost center Dept B
Page 14
Person responsible
: Mr. B
Other fields are common
Select save button
Cost center
: Dept C
Valid from
: 01.04.2011 to
31.12.9999
: Dept A
Controlling area
: FSL
Enter
Change the name to
: Dept C
Description
: Cost center Dept C
Person responsible
: Mr. C
: Select to 2 (service cost center)
Select save button or Ctrl+s
Creation cost center groups:
Cost center area:
Cost centers
Category
Business Area
Dept A
Pro
HYD
FSL
I
Dept B Dept C Dept X
Prod
Service Produ
HYD
HYD
BGL
Dept Y
Produ
BGL
Dept Z
Service
BGL
If we want to see all cost centers data at a time we give Hierarchy - FSLHIER
If we want to see only 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 only HYD cost centers data - create a cost center group and assign Dept A,
Dept b and Dept C
If we want see only HYD production cost centers data
assign Dept A and Dept B
- create A cost center group and
Path: Accounting
--------- > Cost center accounting
Master data --------- > Cost center group --------- > Create (Tr.code is KSH1)
--------- >
Give the cost center group

: FSLHYD PROD
Enter
Description
: Hyderabad production cost centers FSL
Select Edit Cost Center Insert cost center button F4
Select the cost centers Dept A Dept B
Save
Page 15
Creation of cost Element group:

In Fi we have account groups
In Co we want to see Dept A
Personnel cost 400100-400199
Admin cost or Dept B
400100 salaries
400101 Wages
Personnel cost
Create cost element group personnel and
assign cost elements
400100-400199 create cost element group
400102 Bonus
400103 Insentives
Administration and assign cost elements

400300-400399
Administration cost 400300-400399

400300 Rent
400301 Telephone exp
400302 Vehicle repair
400303 Petrol exp
In Co Report:
Cost center
Or
Cost center group
Cost element
Or
Cost element group
Dept A
ADMIN
Dept B
Personnel
FSLHIER
FSLHIER
ADMIN
Blank
Path: Accounting --------- > Controlling --------- > Cost center accounting --------- > Master
data --------- > Cost element group --------- > Create (Transaction code: KAH1)
Cost element group name : FSLADMIN
Enter
Description
: Administration cost for FSL
Select insert cost element button (Shift+F4) (Edit -Cost element -Insert cost element)
From cost element
: 400300
To
: 400399
Save
To enter exchange rate for type M for INR to EUR (Tr.Code is OB08)
Page 16
Exchange rate type

: M (Average rate)
Valid from
: 01.7.2011
From currency
: INR
To
: EUR
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
:
:
:
:
:
Todays date
SA
FSL
40
: 500000
: Dept A select
: Salaries posting
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
: FSLH
Text
: Expenditure posting
From the menu select Document - --------- > Simulate
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 execute button
: select Dept A
Page 17
Keep the cursor on salaries line item

Select document button
Select back arrow
Select change layout button (Ctrl+F8)
Active the fields Business transaction, Document number, Reference Document number
Enter
To view co documents:
Path: Accounting
--------- >
Information system --------- > Report for cost center accounting --------- > Line items -------- > Co documents: Actual costs (transaction code is KSB5)
Document no.
Execute
: 1 to 100000
Report co line items:

Business transaction RKU3
FI doc.42
001 400100 Salaries Dr
500000 Ctc Dept A
transfer
150000 Dept B
50000 Dept C
002 400300 Rent Dr

100000 Ctc. Dept A
003 200105 SBI
600000
1 Fi document
Repost Co line items
1 Co document
No Fi document
1 Co document --------- > RKU3
Transfer line item wise
Path: Accounting --------- > Controlling --------- > Cost center accounting --------- > Actual
postings --------- > Report line items --------- > Enter (Transaction code is KB61)
Select document no.
Company code
Fiscal year
Execute
Double click on line item no.1
Amount under new account assignment
Cost center
Select new item button
Select next button
Amount under new account assignment
Cost center
: 42
: FSL
: 2011
: 150000
: Dept B
: 50000
: Dept C
Page 18
Save
To view cost center report KSB1
Give the cost center
Select change layout button
Active business transactions
Enter
To cost center element wise total
Select cost element column
Select subtotal button
: Dept A
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.
Only CO document will be generated
Transfer cost element wise (GL account wise)
Path: Accounting --------- > Controlling --------- > cost center accounting
--------- > Actual
postings --------- > manual reporting of costs --------- > Enter (Transaction code is KB11N)
Cost center (old)
Cost element
Amount
Cost center new
One more cost center (old)
Cost element
Amount
Cost center (new)
Enter
Select save button or Ctr+S
Period lock:
:
:
:
:
:
:
:
:
Dept A
400100 Salaries
100000
Dept C
Dept A
400300 Rent
25000
Dept C
FI
A) Transaction which effect To open
FI and CO eg: Expenditure
posting COIN
B) Transaction which effect No check
only CO Eg: Repost co line
item RKU3, repost cost
RKU1
CO
To open
To open
Page 19
C) Transaction which effect To open

No check
only FI Eg: Balance sheet
posting,Debit cash and
credit Equity share capital
Eg: In Fi we have opened periods from June2011 to March 2012
In Co we have locked period for June2011
We want to post since co period is not open
Path: Accounting
Environment --------- > Period lock --------- > change (Tr.code is OKP1)
--------- >
Controlling area
: VSL
Fiscal year
: 2011
Select actual button
To lock April period Select period: 01
Select lock period button
Save
Out Set controlling area : (OKKS):
Path: Accounting
Environment --------- > Set controlling area
--------- > cost center accounting
--------- >

: FSL
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
: select 0 (Original budget)
From period
: 1
To period
: 12
Fiscal year
: 2011
Select next page or page down button
Cost center group
: FSLHIER
Cost element From : 400000
Cost element To
: 499999
Free
If we select free radio button
--------- >
Form Bsed
If we select form based radio button
Page 20
At the time of entry no cost element will On screen the cost element list is available
appear on screen we have to select from plant against cost elements
drop down list the cost element and plan
against the cost elements
Select form based radio button
Select overview screen button
For cost element 400100 Plan Fixed cost 3000000
Distribution key 1 Equal distribution
Select cost element 400100
From the menu select Goto -Period screen
Select back arrow
For 400300 Rent a/c Plan fixed cost 720000
Distribution key 1
To plan for Dept B
Select next combination button
To go back to Dept A 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
: FSL
Fiscal year
: 2011
From period
: 4
To period
: 4
Plan version
: 0
Cost center Value
: Dept A
Execute
Keep the cursor on Rent 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.
Page 21
ONLINE RECONCILIATION LEDGER or REAL TIME INTEGRATION OF CONTROLLING WITH

FINANCIAL ACCOUNTING:
This is used when we go for 2nd scenario number of company codes having one controlling area
all company codes should use the same chart of accounts due to online reconciliation ledger a
document will be generated in Fi
Cost centers:
Company code
Controlling area FSL

|
Dept B
Dept X
FSL
FSL
Dept A
FSL
Posting of salaries in company code FSL:

Company code FSL FI records:
If salaries paid and posted FI at (F-02)
Salaries account
To Bank a/c
Dr 200000
200000
Dept Y
FSL
Company code FCL FI records:
Dept A
To view company code FSL ledger

Salaries account
Dr 200000
To view company code FCL ledger

Salaries account
Nill
To view cost center report

Company code FSL cost center
Dept A
Salaries a/c Dr 200000
Company code FCL cost center

Dept X
Nill
Repost costs transfer 40000 from dept A to Dept X

No Fi document
Only Co document
To view Company code FSL
Salaries a/c 200000 dr
ledger
To view cost center report

Company code FSL cost center
Dept A
Less transfer 40000
160000 Dr

Salaries a/c Nill
Company code FCL cost center

Dept X
Salaries from A 40000 dr
40000 Dr
Due to online reconciliation ledger Fi entries will be generated automatically

FSL FI record
FCL Fi Record
Page 22
FCL a/c dr
40000
To salaries a/c 40000
To View company code FSL ledger
Salaries a/c
200000 Dr 40000 Cr
To view cost center report:
Company code FSL Cost center
Dept A
Salaries a/c
200000 Dr
Less transfer
40000 Cr
To x
160000 Dr

To FSL a/c
40000
Salaries a/c
40000 Dr
Company code FCL Cost center

Dept X
salaries from A
40000 Dr
40000 Dr
Fi Customization:
To copy company code FSL customization including accounts to company code FCL
Path: SPRO
accounting
--------- > Enterprise structure

--------- > Definition
--------- > Financial
--------- > 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
: FSL
To company code
: FCL
Enter
Select Yes button for the message to copy GL accounts Master.
Select No button for the message to allocate a different local currency
We get a message certain data want s to copied---Ignore the message press enter
Short description : Customization for FCL
Press enter
Enter once again to saving the request
Go on press enter till you got the message company code FSL copied to FCL without 93 number
range object
Select back arrow
Double click on edit company code data
Select position button
Give the company code
: FCL
Enter
Select company code
: FCL
Page 23
Select details button

Change the company name
: Fennar Cement limited
Select address button
Change the company name
: Fennar Cement limited
Enter
Save and Save in your request button
Assign company code to company
Path: SPRO --------- >Enterprise structure ----------- > Assignment
accounting --------- > Assign company code to company

: FSL
Enter
For the company code
: FCL assign company FGP (group name)
Document type SA should allow intercompany postings: (OBA7)
Select type
: SA
Select intercompany postings check box
Save
Creation of GL Masters FS00
Company code FSL Records
1) FI/CO reconciliation account it can
be under any expediter group but
is should not be a cost element
2) 400150 -Co/ Fi Reconciliation a/c
Personnel cost
Company code FCL Records

1)FI/CO reconciliation account it can be
under any expenditure group but it
should not be a cost element
400150 -Co/ Fi Reconciliation a/c
Personnel cost
2) Fennar cement limited, current assets, 2 Fennar cement limited, current assets,
Loans & Advances 200160 Fennar cement Loans & Advances 200160 Fennar cement
Limited
Limited
When we follow same chart of accounts, for number of company code account number and
description should be same if we create account 200160 in company code FCL it takes
description Fennar cemnts limited we cant create our account in our books if we create 200161
Page 24
in company code FSL it takes description Fennar steels ltd. We cant create our account in our
books.
Creation of GL masters FS00

Give the GL account no.
: 400150
Company code
: FSL
Select with template button
Give the GL account o.
: 400100 Salaries
Company code
: FSL
Enter
Change short text & GL account long text
: FI/CO reconciliation account
Select create / bank /interest tab
Field status group
: ICCF CO < -> FI reconciliation posting
Save
Give the GL Account
: 200160
Company code
: FSL
Give the GL Account
: 200120
Company code
: FSL
Enter
Select type/Description /tab
Change short text
: Fennar Cement Limited
GL account long text
Select create / Bank/Interest tab
Filed status group change to G067
Save
Give the GL account
: 400150
Company code
: FCL
Give the GL account
: 400150
Company code
: FSL
Enter & Save
Give the GL account
: 200161
Company code
: FCL
Give the GL account
: 200160
Company
: FSL
Enter
Select type / Description tab
Change short text
GL long text
Save
Page 25
Prepare cross company code Transaction (Transaction code is OBYA)

Path: SPRO --------- > Financial accounting --------- > GL accounting
transactions --------- > Prepare cross company code transactions
--------- > Business
Company code 1
: FSL
Company code2
: FCL
Enter
Postedin
:
cleared against
: FCL
Debit posting key
: 40
Account debit
: 200160 ( Birla Steel Limited)
Credit posting key
: 50
Account credit
: 200160
Posted in
: FCL
Cleared against
: FSL
Debit posting key
: 40
Account debit
: 200161 Bilra Industries Limited
Credit posting key
: 50
Account credit
: 200161
Save
FSL
CO customization ( tr code is OKKP)

Maintain controlling area
Assign company FCL to controlling area FSL
Select controlling area
: FSL
Company code to controlling area
: Select cross company code cost accounting
Reconciliation ledger document type
: SA (GL accounts document)
Save
Save in your request
Double click on activate components / control indicators folder
Select company code validation check box
Double click on assignment of company codes folder
Select company code
: FSL
Select copy as button
Change the company code
: FCL
Enter & save
Page 26

Activate/ Deactive reconciliation ledger (Tr code KALA)
Path: SPRO
--------- > Cost element accounting
Reconciliation ledger --------- > Activate / deactivate reconciliation ledger
Double click on activate reconciliation ledger
Controlling area
: FSL
Select Execute button
--------- >
Define adjustment accounts for reconciliation posting (Tr code is OK17)

Path: SPRO
--------- > Cost element accounting --------- >
Reconciliation ledger --------- > Define adjustment accounts for reconciliation posting
Double click on define accounts for automatic postings
Select change account determination button
Save
Reconciliation account
: 400150 FI/CO
Save
ECC6 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
Variant for real time integration
: F1
Select real time integration check box
Key date active from
: 01.04.2011
Select account determination active check box
Document type
: SA
Text variant for
: FSL
Select cross company code check box
Select cross business area check box
Select cross profit center check box
Select cross segment check box
Save
Page 27
Assign variants for real time integration to company code:

Path: SPRO
--------- > Financial accounting (new) --------- > Financial accounting global
setting (new)
--------- > Ledger --------- > Real time integration of controlling with financial
accounting --------- > Assign variants for real time integration to company code
Company code
: FSL
Variant
: F1
Company code
: FCL
Variant
: F1
Save
To make text filed optional for field status group G004 cost accounts (Tr.code is OBC4)
Select field status variant FSL
Double click on field status groups folder
Double click field status G004
Double click on General data
Text select optional entry field
Save
Press enter to save in our request
Creation of cost center for company code FCL (KS01)
Give the cost center : Detp X
Valid from
: 01.04.2011 to
31-12-9999
Reference cost center: Dept A
Controlling area
: FSL
Enter
Change the name to : Dept X
Description
: Cost center dept X
Person responsibility : MR X
Company code
: FCL
Repost costs (F-02)
Cost center old
Cost element
Amount
Cost center new
Save
:
:
:
:
Dept A
400100 Salaries
40000
Dept X
Page 28
To view FI documents (Tr.code is FB03)

Select document list button
Company code
: FSL
Enter the date
: todays date
Execute
Double click on document no.43
Select back arrow
Chang the company code : FCL
Execute
Double click on document no.
CROSS COMPANY CODE POSTINGS
Company code
: FSL
Outstanding expenses of FCL paid by FSL
FSL Books
FCL Books
FCL a/c Dr
Outstanding exp Dr
To bank
To FSL
FSL: Debit outstanding exp FCL
Credit bank
FSL
Save
FCL
50000
50000
Use the Transaction code : F-02

: Todays date
Type
: SA
Company code
: FSL
Posting key
: 50
Account no.
: 200105
SBI CA
Enter
Amount
: 5000
Business area
: FSLH
Text
: Outstanding expense payment on behalf of FCL
Posting key
: 40
Account no
: 100500 (outstanding exp)
New company code
: FCL
Enter
Amount
: *
Business area
: FSLH
Text
: +
From the menu select document - --------- > Simulate
Double click 3rd line item
Page 29
Business area
: FSLH
Text
: +
Save
Select continue buttons
FSL
44
FCL
2
If FSL posts the entry
Company code will be 000000000044 FSL11
If FCL posts the entry
Cross company code no. will be 0000000002 FCL11
Accrual orders (Imputed cost calculation)
This is used for irregular expenses like Bonus/Gratuity etc--This is used for month end provision only in CO
This Cost element category should be 3 Accrual/ Deferral per surcharge
Define CO.No.range interval for business Transaction: KAZ1 - Actual cost center accrual
FI Month end provision
1. Accrual / Deferral document
i) Bonus provision 30-4-2011
Bonus A/c
Dr. 10000 Cost center Dept A
To Outstanding exp.
10000
ii) Cost center Dept A expenditure will be allocated to production order stock valuation is
correct
iii) Reversal of provision on 1-5-2011
Outstanding Exp. Dr. 10000
To Bonus A/c
10000 Cost center Dept A
iv) Bonus provision on 31-5-2011
Bonus A/c
Dr
20000 cost center Dept A
To Outstanding exp
20000
2. Open item management
i) Bonus A/c
Dr. 10000 Cost center Dept A
To Outstanding exp.
10000
ii)Cost center Dept A expenditure will be allocated to production order- stock valuation is
correct
iii) Bonus provision on 31-5-2011
Bonus a/c Dr
To outstanding exp
10000
In Co: Accrual orders:
3rd Method:
Page 30
i)
Number of companies will not prepare profit and Loss account every month they will
not make provision in accounts every month
Expenditure from April to Feb will be less
ii) Companies follow accrual basis of accounting in the year end provision are to made in
accounts expenditure for March will be more.
iii) In SAP when we take production - production entry will be passed automatically based on
production cost for the month stock/production valuation from Apr to Feb will be less stock
/ production valuation for March will be heigh
iv) SAP has given accrual order it is similar to cost sheet create over head structure.
Salaries a/c
100000
Bonus 10%
10000 debit to cost center dept A
Credit to cost center dummy
No Fi document
Cost center Dept A
30-4-2011 bonus 10000
30-4-2011 allocation to production order 10000
Stock valuation is correct
Cost center dept dummy
30-4-2011 Bonus
10000
V) Every month end we follow the same procedure
30-4-2011
bonus
10000
31-5-2011
bonus
10000
I
I
31-3-2012
bonus
10000
120000
v) In the yearend bonus provision in accounts
31-3-2012
Bonus
a/c Dr
120000 Cost center dept dummy
To outstanding exp
120000
31-3-2012
120000
30-4-2011
bonus
10000
30-5-2011
bonus
10000
I
I
31-3-2012
bonus
10000
120000
120000
Dept dummy will be zero
3-8-2011
Creation of GL master bonus account - personnel cost (FS00) group: Give the GL Account No.
: 400105
Page 31
Company code
: FSL
: 400100 (salaries)
Company code
: FSL
Enter
Change short
: Bonus account
: Bonus account
Save
Select edit cost element button (F8)
Valid from date
: 01.04.2011 to 31.12.9999
Enter
: Select 3 accrual deferral per surcharge
Save
Creation of cost center - Dept dummy (KS01)
: Dept dummy
: Dept A
Controlling area
: FSL
Enter
Change name
: Dept dummy
Description
: Cost center Department dummy
Select save button
Define CO.no range interval
Transaction KAZ1-Actual cost Center accrual
Transaction Code KANK
: FSL
Select maintain group button
Double click on KAZ1- Actual cost center accrual
Select CO.No range interval for FSL check box
From the menu select Edit ------- > Assigned element group
Save
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)
Page 32
Over head structure : FSL1

Description
: Bonus calculation
Select save button
Row
: 10
Base
: F1
Enter
Give the name : salaries
Select create button
Row
: 20
O/H rate
: F2
Name
: Bonus
FR
: 10
To
: 10
Credit
: F3
Enter
Save
Keep the cursor on overhead structure FSL1
Select assignment button (F5)
Controlling area
: FSL
Select actual accrual radio button
Select continue button
Valid from
: 1/2011
To
: 12/2011
Overhead structure : FSL1
Save
Double click on overhead structure FSL1
Keep the cursor on Base F1
From the menu select Go to -------- > calculation base
From cost element : 400100
Save
Kept the cursor on over head rate F2
From the menu select Go to --------- > overhead rate
Valid from
: 1/2011
To
: 12/2011
Actual Overhead rate : 10
Save
Keep the cursor on F3
From the menu select Go to --------- > credit
Company code
: FSL
Business area
: FSLH
Valid to
: 12/2011
Page 33
Cost element
Cost center
Save
END USER AREA
: 400105
: Dept Dummy
1. Posting of salaries for the month of April F-02

Document date end posting date
: 30.04.2011
Type
: SA
Company code
: FSL
Posting key
: 40
Account no.
: 400100 Salaries A/c
Enter
Amount
: 100000
Cost center
: Dept A
Text
: Salaries payment
Posting key
: 50
Account no
: 200105 SBI current Account
Enter
Amount
: *
Business area
: FSLH
Text
: +
From the menu select document -------- > Simulate and save
2. Accrual calculation (KSA3)
Path: Accounting --------- > Controlling --------- > Cost element accounting --------> Actual postings --------- > Accrual calculation
Select cost center radio button
Cost center
: Dept A
Period
: 5
Fiscal year
: 2011
Deselect test run check box
Select details list check box
Execute
Select next list level button
3. To View cost center report KSB1
Posting date
Execute
: Dept A
: 01.04.2011 to 31.04.2011
Page 34
Select back arrow

Execute
: Dept dummy
4. Bonus provision in the year end in FI Transaction F-02

Give the document date & Posting : 31.03.2012
Type
: SA
Company code
: FSL
Posting key
: 40
Account no.
: 400105 bonus account
Enter
Amount
: 10000
Cost center
: Dept dummy
Text
: Bonus provision for the year 2011 - 12
Posting key
: 50
Account
: 100500 outstanding exp.
Enter
Amount
: *
Business area
: FSLH
Text
: +
Document --------> Simulate and save
To view cost center report KSB1
Posting date
Execute
: Dept dummy
: 01.04.2011 to 31.03.2012
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
Cost center Dept C
Dept A
Dept B
(service Dept)
(Production departments)
Salaries
200000
No.of employee
Wages
300000
Sq.meter area
Rent
100000
Page 35
No.of telephone calls
Telephone Exp 20000

620000
Define CO. No range interval for the business transaction.

RKS (Enter statistical key figures)
SKF category: Fixed values
Total values
Fixed values
If we select fixed value radio button the
values are common for all the months in
the year if we dont change in between
Eg: Employee / Area
No.of Employees
April
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
March
Dept A
200 200
|
|
|
|
|
|
|
|
|
|
|
I
I
I
200 250
|
|
|
|
|
|
Total values
If we select total values radio button every
month we have to enter values
Eg: Telephone calls
No.of Tele bills

Aprl
May
June
July
Aug
Sep
Oct
Nov
Dec
Jan
Feb
March
Dept A
1000
1500
800
Define co.no range interval for the business transaction RKS-Enter Statistical key figures
Transaction Code is (KANK )
: FSL
Double click on RKS
Select Co.No.range interval for FSL check box
From the menu select Edit ------- > Assignment element group.
Save
Ignore the warning message press enter.
Page 36
Create Statistical key figures

Path: Accounting
--------- > cost center accounting
master Data --------- > Statistical key figures
Create (Tr.Code is KK01)
Controlling area
: FSL
enter
Give the statistical key figure
: EMP
Enter
Give the Name
: Employee
Statistical key figure unit of measurement: Select EA each
Key figure category
: Select fixed values radio button
Save
Enter statistical key figures:
Path: Accounting
--------- > 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
:
:
:
:
:
:
--------- >
--------- >
--------- >
Dept A
EMP
200
Dept B
EMP
50
Period end closing

In the month end, we allocate costs from one cost center to other cost centers
Dept C
(Service department)
Salaries
Wages
Rent
Dept A
Dept B
200000
300000
100000
600000
No. of employee
Percentage basis
Basis of allocation can be percentage basis /amount /statistical key figures basis /activity type
basis
SAP has given 4 allocation methods
Allocation methods:
i) Assessment :
ii) We can transfer primary cost postings and secondary cost allocations
Dpt X
Dept C
Dept A
Dept B
Page 37
Wages 150000 Salaries

less
Wages
allcn -150000 Rent
Add:
Allcn X
200000 Salaries 400000

300000
100000
Add:
150000 Allcn C 670000
75000
wages
500000
Allcn
75000
Less:
Allcn A 90% -675000
Allcn B 10% -75000
0
0
1075000
575000
In dept C we have
Direct postings primary cost postings salaries / wages / rent transfer from X - secondary cost
allocation
iii) Receiving cost center cannot track the original cost elements
Dept A received from C 675000 it will not show how much is salaries portion of C/ allocation
to C from X portion
iv) Define Co no. Range interval for the business transaction RKIU actual overhead assessment
v) Sender should be only cost center
2. Distribution
i) We can Transfer only primary cost postings
ii) Receiving cost center can track original cost elements.
iii) Sender should be only cost center
iv) Define Co.No.range interval for the business transaction RKIV actual overhead
distribution.
3. Periodic reposting:
i) We can Transfer only primary cost postings
iii) Sender can be a cost center or order.
iv) Define Co.No.range interval for the business truncation.
RKIB periodic reposting.
4. Indirect activity allocation.
i) We can Transfer only primary cost postings.
iii) Sender should be only cost center.
iv) We can Transfer quantities as well as values.
v) Define Co.No.range interval for the business truncation.
RKIL Indirect activity allocation.
Whichever method we follow, we have to create cycles.
Page 38
Where the basis of allocation of cost elements in the cost center is different we have to create
number of cycles or number of segments under a cycle.
Create no. of segments under a cycle:
Eg:
Cost center Dept C
Dept A
Dept B
(Service Department)
Salaries
Wages
Rent
200000
300000
100000
600000
No.of employees (skf)

Percentage basis
Option 1:
Create no of cyles:
Cycle 1
(Assessment cycle)
|
Segment 1
(Salaries and wages allocation)
400101 wages
Option 2
Cycle 12
(Assessment cycle)
|
Segment 1
(Rent allocation)
400300 Rent
Option 2:
Create no.of segments under a cycle
Cycle 1
(Assessment cycle)
|
---------------------------------------------|
|
Segment1
Segment2
(Salaries and wages allocation)
(Rent allocation)
400300 Rent
400101 wages account
Page 39
ASSESSEMENT Method
1. Creation secondary cost element : i.e (that is) assessment cost element :
Path: Accounting
--------- > Cost element accounting --------- >
Mater data --------- > Cost element
--------- > Create
secondary (KA06)
Enter
Cost element
Valid from
Enter
Name and description
Save
: FSL
: 1000000
: 01.04.2011 to 31.12.9999
: Assessment cost element.
: 42 (Assessment )
2. Define Co.No.range interval for the business truncation- RKIU-Actual overhead

assessment
Use the Truncation code : KANK
: FSL
Double click on RKIU
Select Co.No.range interval for FSL check box
From the menu select Edit ------ > Assignment element group.
3. Creation of assessment cycle:
Accounting
--------- > Cost center accounting --------- > Period and
closing --------- > Current settings --------- > Define assessment (Tr.code S_ALR_87005742)
Give the cycle
: FSL1
Start date
: 01.04.2011
Enter
Text
: Assessment cycle for FSL
Select iterative check box.
Select iterative check box
Dept C
wages
200000
Dept A
50% 100000 7000

Page 40
Less : Allocation
200000
0
Add: Allocation
Less: Allocation
14000
14000
0
Dept X
Salaries
Add: Allocation
Less : Allocation
Add allocation
100000
40000
Dept B
Dept Z
30% 60000 4200

10% 40000 2800
Dept Y
Dept Z
Dept C
40%
50%
20%
56000
70000
14000
140000
140000
0
2800
We have to run number of items till both cost center values become zero. If we select
interactive check box, system will automatically no. of times till they become zero.
Select attach segment button.
Segment name
: Segment 1
Description
: Salaries allocation
Assessment cost element
: select 1000000
Sender rule
: select posted amounts
Share in %
: 100
Select actual value origin radio button
Receiver rule
: Select variable portions
Variable portion type
: Select actual statistical key figures
Select sender / receivers tab
Sender cost center
: Dept C
Cost element
: 400100 (Salaries a/c)
Under Receiver cost center group : BILHYDPRD
Select receiver tracing factor tab
Statistical key figure
: EMP
Select receiver weight factors tab
Select save button or Crl+S
Select attach segment button
Segment name
: Segment 2
Description
: Rent allocation
Assessment cost element
: 1000000
Sender rules
: Posted amount
Sharing in %
: 100%
Page 41
Select actual value origin radio button

Select receive rule
: Fixed percentages
Select senders/ receivers tab
Sender cost center
: Dept C
Cost element
: 400300 (Rent )
Receiver cost center group : BILHYDPRD
Select receiver tracing factor tab
Dept A
40
Dept B
60
Save
To view cost center Report (Tr code - KSB1)
: Dept C
Posting date
: 01.7.2011 to 31.7.2011
Execute
Select cost element column
Select sub totals button
Eg:
Dept C
Salaries
Rent
A
1500000
25000
B
No.of employees(skf)
200 EMP
120000
Percentage basis
40%
10000
50 EMP
30000
60%
15000
175000
Assessment Run:
Path: Accounting
--------- >
Period end closing --------- > Single functions --------- > Allocations
--------- > Assessment
(KSU5)
Give the period
: 4 (July)
Fiscal year
: 2011
Deselect text run check box
Select details list check box
Cycle select
: FSL1 (select)
Execute
Select receiver button
Page 42
INTERNAL ORDERS
This is used to view costs for a specific task.
Eg.1) Vehicle wise running expenses
In an organization they have 10 vehicles the Management has to decide whether to sell a
particular vehicle (or) keep the vehicle in company
A) petrol expenses for the vehicle
B) Repairs to the vehicle
In FI -we will not create each vehicle wise separate expenditure accounts we will not get
vehicle wise total running expenses.
In CO cost centers - all vehicles will be under administration cost center here also we will not
get vehicle wise total running expenses in administration cost center we get other
administration expenses along with vehicle expeses.
Creating vehicle order and get the costs.
2. Telephone expenses:
In a company they have 50 telephones they give reimbursement to some employees
management wants to know telephone wise expenses.
In Fi we will not create telephone wise separate expenditure accounts we will not get
telephone wise expenses
In Co cost centers: all telephones will be under administration cost center here also we will
not get telephone wise expenses.
Create telephone order and capture the cost.
3. Production order costs

In a month no. of production orders will be completed. Some production orders consume
more raw material and same production orders consume less raw material.
If FI we have only raw material consumption account - We dont get production order wise
cost .
By crating production order, we can get order wise costs.
4. Exhibition costs
Company is conducting in an exhibition
Salesmen salaries will go to salaries account
Conveyance to sales men will go to conveyance a/c
Advertisement for the exhibition will go to advertisement a/c
Discounts given to customers in exhibition will go to discount a/c
Now Management wants to know the exhibition costs we cant get in Fi
By create Exhibition order we can get exhibition costs
Page 43
Orders are of 2 types

1) Real orders
i) In case of real orders settlement
Is possible
2) Statistical orders
i) Incase of statistical orders settlement not possible
ii) Used for information / reporting purpose.
We can settle order

To Cost Center
From oreder to Co to Co
Internal settlement
GL Accounts / Assets
(From CO to FI)
(External settlement)
Allocation of costs In
Order is called settlement
At the time of posting when we give number of costs objects one will be real and others will be
statistical
Eg. Telephone expenses
Dr

Order Tel no.66611983
To Bank
20000
After wards costs will be allocate to production
Orders
We cant allocation to production order 20000+
20000 we have to allocate only Rs 20000
The cost will be allocation to production orders
from CO
At the time of order creation there is a statistical order check box.
A) When we select statistical order is statistical order check box.
i)
Order will be statistical
ii)
Cost center will be real expenditure will be allocated form cost center to
production order
B) When we dont select statistical order check box
i)
Order will be real from order expenditure will be allocated to production order
ii)
Cost center will be statistical
Statistical order:
Telephone order we create as statistical order.
Telephone expense
To Bank
Dr 20000
Cost center Dept A

Order Telephone no.66611983 Statistical
20000
Page 44
Cost Center Dept A

Telephone expenses 20000 Allocation to production order
Cost center value will be Zero
20000
Order telephone no.6661193

Telephone expenses 20000
Management can see telephone expense at any point of time
If it is cancelled as real order.
Telephone exp Dr
20000
cost center dept A
To bank
20000
order tell 66611983 real order
Cost center dept A

Telephone Expenses
20000
Order Telephone no.6661193
Telephone expenses
50000
Allocation to production 20000
Order value will be zero
Management cant see telephone wise expenses after wards
Define order types:
Path: SPRO --------- > Controlling --------- > Internal orders
--------- > Define order types (KOT2_OPA)
--------- > order master data

Order category
: Select 01 Internal order (Controlling)
Enter
Order type
: FSLT
Description
: Telephone orders for FSL
Planning profile
: select 000001 (General budget /plant profile)
Object class
: Select Over head cost
Select release immediately check box
Save
We get message no. range not processed
Ignore the message press enter save request
Select assign /change interval button beside no. range interval
Double click order type
: FSLT
Select motor pool A-ZZZZZZZZZZZZ(External check box)
From the menu select Edit Assign element group
Save
Page 45
Creation of filed status group by making cost center and order required entry fields (OBC4)
Select field status variant FSL
Double click on field status group folder
Select field status group G004 cost accounts
Change the field status group to G002
Change the text
: cost accounts (CC & IO required) IO =Internal order
Enter
Save
CC=Cost Center
Double click on G002
Double click on additional account assignment
CO / PP order select required entry field.
Save
Creation of GL master telephone expense (FS00)
Give the GL account no
: 400305
Company code
: FSL
GL account
Company code
: FSL
Enter
Change short text
: Telephone expenses
GL a/c long text
: Telephone expenses
Select crate / Bank/Interest tab
Change the field status group: G002
Save
Valid from date
: 01.04.2011
Enter
: Select 1
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
: FSLT
: FSL 66611983 (Telephone no.)
: Telephone order no.66611983
Page 46
Company code
: FSL
Business area
: FSLH
Select control data tab
Select statistical order check box
Save
Creation order group
Path: Accounting --------- > Controlling --------- > Internal orders --------- > master data the
path is same --------- > Order group --------- > Create (Tr code is KOH1)
Give the order group
: FSLHYDTEL
Enter
Description
: FSL Hyderabad order group
Select insert order button
Select to orders
: FSL66611983
: FSL66626246
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
From the menu select -Document
:
:
:
:
:
Todays date
SA
FSL
40
400305 Telephone exp
:
:
:
:
:
:
20000
Dept A
FSL66611983
Telephone expenses
50
200105 (SBI current account )
: *
: FSLH
: +
- ----- > 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 KOB1)
Page 47
Give the order no.BIL66611983

Execute
Keep the cursor and telephone expense
Planning order wise
Path: Accounting --------- > Controlling --------- > Internal orders
------- > Cost and activity inputs --------- > Change (KPF6)
Version
: 0
From period
: 5 (Auguest)
To period
: 5
Fiscal year
: 2011
Give the order no.
: FSL66611983
Cost element
: 400305 Telephone expense
Select over view screen button
Total plan cost
: 25000
--------- > Planning
--
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
Plan version
Order values
Execute
:
:
:
:
:
:
FSL
2011
5 (Current month)
5
0
FSL66611983
Real orders:
Vehicle order we create as real order
Petrol expenses
To Bank
Dr
10000 Order no.AP9Z1234

10000
In the month end settlement:

Order AP 9Z1234 costs
Page 48
Cost center Dept A

Order no.AP9Z1234 Settle to
Cost center Dept B
Cost center Dept C
Settlement can be percentage basis / ratio basis /Amount basis
Order No AP9Z1234
Petrol expenses
10000
settle to cost center
------10000
====
Dept A
Dept B
Dept C
5000
3000
2000
-----10000
====
Order AP9Z1234 value will be zero

Management cant see vehicle wise expenses after wards
Or
Petrol expense
To Bank
Cost center admin
Petrol Expenses
Dr 10000
Cost center: admin

Order No.AP9Z1234 Statistical order
10000
10000
--------10000
====
Allocation to Dept A 5000

Dept B 3000
Dept C 2000
------10000
=====
Cost center value will be zero

Order AP 9Z1234
Petrol exp
10000
Management can see at any point of time vehicle cost.
Creation of filed status group by making only order required entry filed (OBC4)
Select filed status variant
: FSL
Double click on filed status group folder
Select field status group
: G002
: G010
Change the text
: Cost accounts (IO required )
Enter and save
Page 49
Double click on G010

Double cock additional account assignments
Cost center select optional entry field
Save
Creation of GL master petrol expense under administration group (FS00)
Give the GL Account no.
Company code
Company code
Enter
Change short text
GL acct long text
Select create/bank /interest tab
Field status group
Save
Valid from date
Enter
Save
: 400310
: FSL
: FSL
: Petrol expenses
: Petrol expenses
: G010
: 01.04.2011
: 01
Creation of secondary cost element i.e. Statement cost element (KA06):

Give the cost element
Enter
Name and description
Save
: 1000001
: settlement cost element
: Select 21 internal settlement
Creation of allocation structure:

Path: SPRO-Controlling
--------- > Internal orders
Settlement --------- > Maintain allocation structures
--------- > Actual posting
--------- >

Allocation structure
: F1
Text
: FSL allocation structure
Save
Select
: F1
Double click assignments folders
Page 50

Assignment
: 01
Text
: Vehicle expenses allocation
Save
Select
: 01
Double click on source folder
From cost element
: 400310 Petrol expenses
Save
Double click on settlement cost elements folder
Receiver category
: Select CTR cost center
Settlement cost element
: 1000001
Save
Vehicle expenses i.e. 400310 petrol expenses to be allocated to cost element 1000001.
Maintain settlement profiles:
Path: SPRO --------- > Controlling --------- > Internal orders --------- > Actual posting --------> Settlement --------- > Maintain settlement profiles
Double click on maintain settlement profiles
Settlement profiles
: FSL1
Description
: FSL settlement profile
: F1
Select to be settled in full radio button
Default object type
: CTR cost center
Select % settlement check box
Select equivalence number check box
Select amount settlement check box
Under valid receivers
For cost center
: Select settlement required
Max.no. distribution rules : 999
Residence time
: 12 months
Save
Maximum no of distribution rules 999 in live environment cost account will prepare the
settlement rules before doing the settlement he will take Sr. person approval and execute the
settlement
Create rules in system up to 999 Max. Sr. person will not be available immediately store in the
system up to 12 months max.
Rule 1:
Page 51
Order no.AP9Z1234 cost 10000 settle center Dept A

B
C
Rule 2
B
C
Rule 3
B
C
5000
3000
2000
40%
50%
10%
3:
5:
2
Maintain number range for settlement documents:

Path: SPRO --------- > Controlling --------- > Internal orders --------- > Actual posting --------- >
Settlement --------- > Maintain number range for settlement documents (Tr.code is SNUM)
Double click on FSL
Select Standard accounting document check box
From the menu select Edit Assign element group
Save
Define order type (KOT2_OPA)
Order category
: Select 01 Internal order (controlling)
Enter
Give the order type
: FSLV
Description
: Vehicle order type FSL
Settlement profile
: FSL1
Budget profile
: 000001 (General budget profile)
Object class
: Overhead costs
Select release immediately check box
We get a message no. range not process e
enter
Save
Ignore the message press enter save in your request
Select assign /Change intervals button beside no. range interval
Double click on FSLV
Select motor pool A-ZZZZZZZZZZZZZZ external check box
From the menu select Edit ------ > Assign element group.
Save
Page 52
Define co.no.range interval for the business truncation K0A0-Actual settlement. Use the
transactions code (KANK)
: FSL
Double click on KOAO actual settlement
Select co.no.range interval for FSL check box
From the menu select Edit --- --------- > Assign element group.
Save
END USER AREA:
Creation of internal order (KO01)
Give the order type
: FSLV
Enter
Give the order
: AP9Z1234
Description
: Vehicle no.AP9Z1234
Company code
: FSL
Business area
: FSLH
Deselect statistical order check box
Select settlement rule button
Category
: CTR cost center
Settlement receiver
: Dept A
Give the percentage %
: 50
One more
Category
: CTR
Settlement receiver
: Dept B
Percentage
%
: 30
Category
: CTR
Settlement receiver
: Dept C
Percentage
%
: 20
Save
Posting of petrol exp F-02
Type
Company code
Posting key
Account no.
: Todays date
: SA
: FSL
: 40
: 400310 petrol exp.
Page 53
Enter
Give the amount
: 10000
Give the order no.
: AP9Z1234
Text
: Petrol exp.
Posting key
: 50
Account no.
Enter
Amount
:*
Business area
: FSLH
Text
:+
From the menu select menu document ------- > Simulate and save
Actual settlement :
Path: Accounting --------- > Controlling --------- > Internal order --------- > Period end closing
--------- > Single functions --------- > Settlement --------- > Individual processing (K088)
Give the order
: AP9Z1234
Settlement period
: 5 (current month)
Fiscal year
: 2011
Select check transaction date check box
Select details list button
We have posted to order AP9Z1234
I
Create order with FSKV and in the oreder
Specified
10000
to Dept A
B
C
50%
30%
20%
I
In order type FSLV given settlement profile FSL1
I
In settlement profile FSL1 kept the options open percentage/ Ratio / Amount specified receiver
will be cost center assigned allocation structure F1
I
In allocation structure F1 specified vehicle expenses 400310 cost to be allocated to cost centre
by using secondary cost element 1000001
Page 54
BUDGETING AND AVAILABILITY CONTROL

Planning
i) Planning will be made each cost
element wise in the order
ii) Planning will be made period wise in a
year
iii) Micro level
Budgeting
i) Budget will be made order wise
ii) Budget will be made year wise
iii) Macro level
For budgeting SAP has given
availability control
Order AP9Z1234
For year 2011 budget amount 100000
Option :1 Option: 2
Option: 3
Message
Message to Error
to user
user and
message
inform to
budget
manager
If actual amount exceeds 90% of budget i.e.90000

Or
If the variance is above 20000 i.e actual 120000
Or
Both
Whichever activity comes first i.e 90000
Some companies:
If actual amount exceeds 50% of budget go for option1
If actual amount exceeds 90% of budget go for option 2
If actual amount exceed 100% of budget go for option 3
When we do budgeting it generate a Co document -to give No. range interval only for 04 for
budgeting (Hard coded by SAP)
No. range interval is given at client level amt not controlling area level it is not year specific
Maintain no. range for budgeting:

Path: SPRO --------- > Controlling --------- > Internal orders --------- > Budgeting / availability
control --------- > Maintain no. ranges for budgeting (Tr code is OK11)
Select change intervals button
Page 55
Define tolerance limits for availability control

control --------- > Define tolerance limits for availability control
Controlling area
: FSL
Profile
: select 000001 General budget profile
Tr.group
: ++ all activity groups
Action
: select 2 warning with mail to person response
Usage
: 90
Save
Specify exempt cost elements from availability control
control --------- > Specify exempt cost elements from availability control
AP 9Z1234
Budget amount
100000
We have considered:
Drivers salary is fixed cost or known cost
Petrol expenses
Repairs
Insurance
Depreciation
We can give a condition if we post to a/c no 400100 drivers salary a/c it exceeds 90% of budget
dont give warning and message to budget manager.
Controlling area
: FSL
Cost element
: 400100 Salaries account
Save
Maintain budget manager
control --------- > Maintain budget manager
Controlling area
: FSL
Order
: FSLV
Object class
: OCOST (Overhead cost)
User name
: SAPUSER (budget manager)
Save
Page 56
END USER AREA

Budgeting order wise
Path: Accounting --------- > Controlling --------- > Internal order --------- > Budgeting --------> Original budget --------- > Change (Tr code is K022)
Controlling area
: FSL
Enter
Order
: AP9Z1234
Select original budget button
For the period 2011 budget amount
: 100000
Overall budget
: 100000
From the menu select Extras --------- > Availability Control --------- > Activate
Save
Posting of petrol expenses (F-02)

Budget amount 100000
If it excess 90%
Less: already posted for real order 1000/80000 then it gives message
If actual amount exceeds
: Todays date
Type
: SA
Company code
: FSL
Posting key
: 40
Account no.
: 400310 Petrol expenses
Enter
Give the amount
: 82000
Order
: AP9Z1234
Text
: Petrol expense
Posting key
: 50
Account no.
Enter
Give the amount
:*
Business area
: FSLH
Text
:+
From the menu select Document - --------- > Simulate and save
To view in box of the budget manager
Path: SAP Menu --------- > Office -------- > Work place (Tr code is SBWP)
Page 57
Select inbox folder

We get a message accounting document no.
PROFIT CENTER ACCOUNTING

This is used to view profitability division wise /product wise /location wise if business area is
not use in FI
2 scenarios
1st scenario
HYD Location
|
---------------------------------------------------|
|
|
Steel
Cement
Pharma
Division
Division
Division
Business area and

Profit centre
2nd scenario
HYD
|
Steel
Division
BGL
|
Cement
Division
MOM
|
Pharma
Division
Business area
or
profit center
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 sheet itmes
for sundry debtors and creditors balance sheet
adjustment to run other accounts at the time of
posting we can select.
Eg: cost centre dept A
Cost centre dept A is working for profit center steel assign steel profit center in cost center dept
A
At the time of posting to salaries in dept A
Salaries a/c Dr
200000
cost center dept A
To Bank
200000
Page 58
Once we save cost center dept A will be updated with 200000 also profit center steel will be
updated with 200000 due to derivation rule.
We have to create dunning profit center. At the time of posting, if there is no derivation rule for
any transaction, system automatically updates dummy profit center. Then we transfer form
dummy profit center to respective center also Create derivation rule so that future transactions
will go to respective profit center and not go to dummy profit center.
Set controlling area (OKKS)
Path: SPRO --------- > Controlling
--------- > Set controlling area
Enter
--------- > Profit center accounting --------- > Basic settings

: FSL
Maintain controlling area settings: (OKE5)

Path: SPRO --------- > Controlling --------- > Profit center accounting --------- > Basic settings
--------- > Controlling area settings --------- > Maintain controlling area settings
Standard hierarchy
: FSL
Select elimination of internal business volume check box
Profit center local currency type
: Select 20 Controlling area currency
Select confirm button
Select store truncation currency check box
Save
Elimination of internal business volume
Purchase
Material no.
1 Profit center steel
Order
Vendor no.
1234
|
Plant
HYD
|
Profit center
Steel
|
Qty
1 Kg
|
Rate
200
Goods
Receipt
When we receive 1kg material at Rs 200 our profit center steel should not up date with
200+200- it has to take only Rs 200.
Create dummy profit center
Path: SPRO --------- > Controlling --------- > Profit center accounting --------- > Master data -------- > Profit center --------- > Create dummy profit center(Tr code is KE59)
Page 59
Double click on dummy profit center

Give the dummy profit center
: FSL dummy
Select basic data button
Name
: FSL dummy
Description
: Dummy profit center for FSL
Profit center group
: FSL
Save
Set control parameters for actual date:
--------- > Controlling area settings --------- > Activate direct postings --------- > Set control
parameters for actual data (Tr code is 1KEF)
From year
: 2011
Select Line items check box
Select online transfer check box
Save
Maintain plan versions:
--------- > Controlling area settings --------- > Activate direct postings --------- > Plan version
--------- > Maintain plan version
Select version
: 0 Plan /Actual Version
Double click on settings for profit center accounting folder
Year
: 2011
Select online transfer check box
Select line items check box
Exchange rate type
: B (bank selling rate)
Save
Define no. ranges for local documents:
We have cost center dept A
Cost center dept A is working for profit center steel
We have not assigned profit center steel in cost center dept A
We have posted entry
Salaries a/c Dr
100000 cost center Dept A
To Bank
100000
Page 60
It updates cost center dept A

It updates profit center dept dummy
After wards we transfer values from dummy profit center to profit center steel
No co document will be generated
Only profit center document will be generated.
Path: SPRO --------- > Controlling --------- > Profit center Accounting --------- > Actual postings
--------- > Basic settings: Actual
--------- > Define number ranges for local documents (Tr
code is GB02)
Select actual document from direct posting with GB01 check box
From the menu select interval Maintain
: FSL
Enter
Select interval button
Year
: 2011
From no
:1
To
: 100000
Enter and save
Ignore the warning message
Press enter
Select back arrow
Select planned doc.with direct posting with GB01 check box
Form the menu select interval --------- > maintain
: FSL
Enter
Year
: 2011
From no.
: 100001
To no.
: 200000
Enter and save
Ignore the warning message
Creation of profit center:
Path: Accounting --------- > Controlling --------- > Profit center accounting --------- > Master
data --------- > Profit center --------- > Individual processing --------- > Create (Tr code is KE51)
Give the profit center
Enter
Analysis period to
: Steel
: 01.04.2011 to 31.12.9999
Page 61
Name
Long text
Person responsible
Profit center group
select activate button (Shift+F1)
: Steel
: Profit center steel
: Mr A
:FSL
One more profit center

Profit center
Enter
Name
Long text
Person responsible
Profit center group
Select activate button
: Cement
: Cement
: Profit center cement
: Mr B
: FSL
Create account groups

Path: Accounting --------- > Controlling --------- > Profit center accounting --------- > Master
data --------- > Account group --------- > create (Tr code is KDH1)
Give the account group name
Enter
Description
Select insert account button
From
To
Save
Select Back Arrow
Account groups
Enter
Description
Select insert account button
Form
To
Save
: PLITEMS ( Profit & Loss)

: P & L accounts for FSL
: 300000
: 499999
: BSITEMS
: Balance sheet accounts for FSL
: 100000
: 299999
Assign profit center in cost center

Path: Accounting --------- > Controlling --------- > Cost center accounting --------- > Master
data --------- > Cost center --------- > Individual processing --------- > Change (KS02)
Enter
: Dept A
Page 62

Cost center
Enter
Profit center
Save
: Steel
: Dept B
: Cement
Creation of sales account as revenue element (FS00)

: 300000 Sales A/c
Company code
: FSL
Enter
: Select 11 Revenues
Save
Maintain automatic account assignment of revenue elements
--------- > Profit center accounting
--------- > Actual
postings --------- > Maintain automatic account assignment of revenue elements (Tr code is
OKB9)
Company code
: FSL
Cost element
: 300000 Sales A/c
Account assignment details : Select 2 Business area is mandatory
Save
Select company code
: FSL
Double click on detail per business area /valuation area folder
2 scenarios:
1st scenario:
HYD Location
I
Steel
Cement
Pharma
Division
Division
Division
300000 Sales steel
HYD - --------- > Steel
business area and

profit center
Page 63
300001 Sales cement

HYD -- --------- > Cement
300002 Sales pharma
HYD -- --------- > Pharma
Scenario 2:
HYD
BGL
MUM
|
|
|
Steel
Cement
Pharma
Division
Division
Division
Business area
or
Profit center
300000
Sales account
HYD - --------- > Steel
BGL - --------- > Cement
Mum - --------- > Pharma
Business area
Profit center
Business area
Profit center
Save
:
:
:
:
FSLH
Steel
FSLB
Cement
Choose addition balance sheet and p & L accounts

Applicable for second scenario: Application for second option
Same path Select choose accounts (Tr code is 3KEH)
Account from
: 100000
Account to
: 299999
Default profit center : Steel
Save
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
Page 64
Business area
Profit center
Account no
To account no.
Business area
profit center
Save
: FSLH
: Steel
: 100000
: 299999
: FSLB
: Cement
END USER AREA

1) Planning profit center wise for p & L items
Path: Accounting
Planning --------- > cost /Revenues --------- > Change (Tr code is 7KE1)
Version select
:0
From period
:5
To period
:5
Fiscal year
: 2011
Company code
: FSL
Profit center
: Steel
Account group
: PLITES
Text
For Account no.
Sales a/c
300000
Salaries a/c
400100
Save
Document 100001 was saved
--------- >
Profit center
Reporting currency
500000 - (minus sign)
400000
Planning profit center wise for balance sheet items (Only for second scenario)
Path: Accounting
Planning --------- > Balance sheet accounts change (Tr code is 7KE3)
Version
From period
To period
Fiscal year
Company code
--------- >
:0
:5
:5
: 2011
:FSL
Page 65
Profit center
:steel
select next page or page down button
Account group
: BSITEMS
Text
For Account no.
SBI RT/loan
100300
SBI ca a/c
200105
Save
Profit center
Reporting currency
200000 - (minus sign)
200000
RECEIVABLES
Sales invoice Posting (F-22)
: Todays date
Type
: DR
Company code
: FSL
Posting key
: 01
Account no.
: 3000401
Enter
Amount
: 475000
Business area
: FSLH
Text
: sales invoice posting
Posting key
: 50
Account no.
: 300000 (Sales a/c)
Enter
Amount
:*
Business area
: FSLH
Text
:+
Form the menu selects Document -Simulate and saves
01 customer account dr 470000
50 to sales account
475000
If we post to 300000 sales a/c with B.area FSLH
It updates profit center steel
Calculate balance sheet adjustment in the month end
Path: Accounting --------- > Financial Accounting -------- > General Ledger --------- > Periodic
processing --------- > Closing --------- > Reclassify --------- > Balance sheet adjustment --------> Calculate TR.code F.5D
Company code
: FSL
It takes first line item of 3(i) customer profit center steel based on 2nd line item sales a/c
Page 66
01 customer debit 475000 FSLH steel profit center

3(iii) Transferring payables/ Receivables
Path: Accounting --------- > Controlling --------- > Profit center accounting --------- > Actual
postings -------- > Period end closing -------- > Transferring payables / Receivables TR.code
1KEK
Controlling area
: FSL
Period
:5
Fiscal year
: 2011
Company code
: FSL
Select line item check box
Degree of detail in log: select detail log
Salaries posting (F-02)

Document date
: Todays date
Type
: SA
Company code
: FSL
Posting key
: 40
Account no.
: 400100 Salaries a/c
Enter
Give the amount
: 325000
Cost center
: Dept A
Text
: Salaries posting
Posting key
: 50
Account no.
Enter
Amount
:*
Business area
: FSLH
Profit center
: Steel
Text
:+
Document -simulate and save
Salaries a/c Dr
325000
(cost center dept A)
To SBI c.a
325000
(profit center steel)
In dept A assigned profit center steel automatically It updates profit center steel
To View profit center wise variance report for P & L items
Page 67
Path: Accounting
--------- > Profit center accounting --------- >
Information system --------- > Repost 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 / loss account groups
: 5 (Current /Running month)

:5
: 2011
:0
: steel
: PLITEMS
To view variance report profit center wise for balance sheet items:
Path: Accounting
--------- > Profit center accounting --------- >
Information system --------- > Repost for profit center accounting --------- > Interactive
reporting --------- > 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
Execute
: 5 (Running month)
:5
: 2011
:0
: Steel
: BSITEMS
Transferring values from one profit center to another profit center

Cost center dept A is works for profit center steel and profit center Cement
We can assign only one profit center in cost center
Assigned profit center steel in the month end
Transfer values from steel profit center to cement profit center
Manual transfer through cycles
No.FI document will be generated
No.CO document will be generated
Only profit center (loacal) 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
Page 68

Company code
Select Enter screen button
Profit center
Account no.
In profit center local currency
Profit center
Account no.
Amount
Save
: FSL
: Steel
: 400100 Salaries
: 100000 -(with minus sign)
: Cement
: 400100 Salaries
: 100000 (without minus sign)
INTEGRATION
Organization structure:
FI: Business area
Company
|
Company code
MM: Business area Plant
: Factory
I
: Branch
I
: Port
Storage locations: Raw material
: Packing material
: Finished goods
: Stores
SD:
Sales organization
|
|
Distribution->
Channel
|
Divisions - >
Company code level /

Regional/ locations
|
Direct sales /sales
through Agents
|
Steel division,
Cement division.
Why we create port as a plant:

Export sale - Terms of delivery-FOB (Free on Board) ownership will be transferred once we
kept the martial on ship.
HYD
Chennai
Customer
Factory
Port
If the material damaged in transit FSL is responsible since owner ship is not transferred.
Business area will be assigned to plants
Plants will be assigned to sales organization
Business area will be assigned to sales organizations.
Page 69
In SD module, combination of sales organization, distribution channel and division they call it as
One sales area.
Sales Area 1
Hyd location (sales Org)
|
Direct sales
|
Steel
Sales Area 2
Hyd location (Sales org)
|
Through agents
|
Steel
Movement types: There are Similar to posting keys in FI

Movement type
MM
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)
Dept A
Production order 1
Production order 2
Stores items to issue:

(Mov.type 201)
(cost center 201)
Production order 3
Dept B
Dept C
Material issue is identifiable to production orders we use movement type 261

Material issue is not identifiable to production orders we use movement type 201
Transaction key /process key
a) BSX
Inventory postings
Page 70
b) WRX
c) PRD
d) GBB
Goods receipt /Invoice receipt (GR/IR clearing)

Price difference /Production order differences
Offsetting entry for inventory postings
(i) VBR: consumption
(ii) BSA: Opening stocks
(iii) VNG: Scrapping
(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)
(viii) AUA: production order differences
Eg: Raw material consumption
Entry:
Raw material consumption Dr
400000
To Inventory raw material
200121
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: 4 valuation classes
Local purchase
Imported purchase
Inter unit transfer
Inter company purchases
B) Stores
: 2 valuation class
Local purchase
Imported purchase
c) Finished goods: 1 valuation class

Own manufacturing
Valuation grouping code / valuation modifier /Valuation modification key:
Company codes
Chart of accounts
Plants
Local raw materials
FSL
FCL
FIL
FSL (all co. Codes are using same chart of accounts)
HYD-BGL
HYD-MUM
BGL-MUM
RM1- RM2
RM2-RM1
RM3-RM1
When we purchase raw material we use only one a/c 200121 -Inventory raw material local
Page 71
When we use 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
Chat of accounts
HYD
BGL
BGL
MUM
HYD
MUM
FSL
FSL
FSL
FSL
FSL
FSL
Company code
Valuation
Grouping
FSL
FSL
FCL
FCL
FIL
FIL
X
X
X
X
X
X
For X we assign accounts.

Interview question:
Can we have plant wise separate accounts it is possible to create pant wise accounts by using
valuation modifier or valuation grouping code or valuation modifier key
Valuation
Areas Plants
Chat of accounts
HYD
BGL
HYD
MUM
BGL
MUM
FSL
FSL
FSL
FSL
FSL
FSL
Company code
Valuation
Grouping
FSL
FSL
FCL
FCL
FIL
FIL
X
Y
X
Y
X
Y
For inventory raw material local for plant HYD X -200121 inventory RM. Local
For plant BGL Y - 200121 Inventory RM Local
Price controls
Material types
Raw materials
Stores & spares
Packing & material
Finishing goods
Semi finished goods
Purchased
Produced
Trading goods
ROH
ERSA
VERP
FERT
V-Moving average price

S-Standard price
purchase cost
purchase cost
purchase cost
RM cost + Overheads
HALB
HALB
S-Standard price
HAWA V-Moving average price
Purchase cost
RM cost + Overheads
Purchase cost
Page 72
Services
DIEN
Differences between semi finished goods, purchased and produced
Issue RM cycle time 15 days finished goods
1 semi finished goods purchased:
marketing dept got an order, customer wants material with in 3 days
purchase a material where processing of A,B,C completed do only dept B processing
and take finished goods
2 Semi finished goods produced:
Dept A
Semi finished goods purchased
Dept A
Dept B
Dept C
Dept D
Marketing dept got an order customer wants material after B processing
Take production after B processing and sell
Trading goods:
Marketing dept got an order customer wants material today it self
Buy finished goods in the market and sell the finished goods to customer without doing any
processing
Services:
Plant is having operating capacity

No sales orders
Do Job work for others
We get job work charges or 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 groups 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.
We can open 2 periods at a time.
Open material periods June July.
When we open Aug-Automatically June will be closed.
When we crate material master -We will have number of tabs (Views)
1
Basic data
2
Purchase view
3
Sales data
4
MRP data
5
Quality
6
Ware house management
7
Accounting
8
Costing
Page 73
Material management:
MM Flow
A) Material requisition
By production Dept inform Stores dept
B) Purchases requisition
By stores to purchases
C) Purchase dept Call for enquiries, By purchase Dept.
Get quotations and do price comparisons
D) Create purchase order
Vendor number, Material
Quality, Rate, Plant, Company code
Delivery terms, payment terms,
Purchase organization
E) Release purchase ordre
It is optional
It will work through work flow
Eg:
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
100000 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: against purchase order
Automatic entry
Inventory RM local DR
100 Balance sheet current asset
To GR/IR clearing RM local 100 Balance sheet current liability
(Qty in GR*Rate as per P.O) 1kg x 100
G) Invoice verification: Against PO

Automatic entry
GR/IR clearing RM local DR
To vendor a/c
100 Balance sheet CL

100 Balance sheet CL
BSX
WRX
WRX
party no is taken From PO,
H) Raw material consumption:

Automatic entry
RM Consumption Local DR 100
P & L Debit GBB VBR
To inventory RM local
100
BS C/A(Current Asset) BSX
(Qty consumption*Material average price) 1kg x 100rs
I) Wages payment :
Wages A/c
To Bank
DR
20
20
P & L Debit
BS CA
Page 74
K) Production Receipt:
At product cost
Inventory FG
DR
To INC/DEC in stocks FG
120
120
BS C/A BSX
P & L Credit GBB
ZOF - In case of on production order /GBB

AUF -in case of production order (PP module implemented)
(Qty produced * product cost) 1kg *120 Rs
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
BSX
(Qty delivered * product cost) 1kg *120 Rs
M) Sales billing:
Customer A/c DR
150 BS
C/A
customer number is taken from sales order
To Sales
150
P & L credit ERL
( Qty sold * selling price) kg * 150 Rs
Profit & Loss account
H) RM consmn local
Wages
Net profit
100 L)Sales
20
J)INC/DEC STK FG 120
30
K)INC DEC STK FG -120
------150
===
150
0
----150
===
Balance Sheet
Surplus in P & L Account
Sundry creditors RM
GR/IR CLRG RM LCL 100
GR/IR CLG RM LCL - 100
0
30
100
0
130
Bank
Sundry debtors
INV RM LCL 100
INV RM LCL -100
INV FG
120
INV FG
-120
-20
150
0
0
130
Page 75
Integration steps:
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 types/ material
number / 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
RM1 (local)
200121-INV-RM
3000 RM
local
3001 RM
imported
RM 2
GR/IR
Clearing
100520-GR/IR
200122 Inv.rm.imp 100521 -GR/IR
Consumption
400000-RM
(GBB VBR)
400001 RM con IMP
Local purchase:
1. Purchase order:
Save
Vendor -1234
Material -RM1
Qty-1000 Kgs
Rate 5 Rs
P.O.No.1
2. Goods receipt:
against-P.O No.1
Movement Type: 101
Debit BSX
Credit WRX
Material
RM1
3000
Qty
400 kgs
Save
Debit 200121 Inv RM LCL
2000
Credit 100520 GR/IR CLRG RM LCL 2000
(Qty IN GR *Rate as per P.O)
(400kgs * 5 Rs = 2000)
Here generated 2 documents
Material document 500001
FI document
100001
3.Raw material consumption:
Movement type
Material
Qty
201/261
RM1
100 Kgs
Debit GBB
Credit BSX
VBR
3000
Page 76
save
400000
RM Consumption LCL
200121
Inventory RM Local
(Qty issued * Moving average rate)
(100kgs * 5 Rs)
FI document
100002
4. Purchase order cration:
DR
500
500
Vendor -5678
Material -RM2
Qty-1Kg
Rate -200
Save PO No.2
5. Goods receipt: against PO No.2

Movement type: 101
Debit BSX
Credit WRX
Martial
RM2
3001
Qty
1 Kg
Save
Material Doc No.200003
200122
Inventory
RM
IMP
100521
GR/IR CLRG RM
IMP
(Qty IN GR* P.O price)
1*200
FI document
100003
DR
200
200
Material returns:
Material doc no.500003
Movement
Type
102/122
Debit WRX
Credit BSX
3001
Material
RM2
Qty
1 Kg
Save
100521
GR/IR CLRG RM
IMP
200122
Inventory RM
IMP
(Qty returned * Moving AVG price)
1kg * 200 Rs
FI document
100004
DR
200
200
Page 77
Price differences
Batch method: moving AVG Method
1 stocks full available
2 stocks partly available
3 stocks not available
1 batch method: purchase order price 10 rs
Material RM 1
Lot Qty Rate Amount
1 Rawmaterial receipt
1
100 10
1000
Dr INV RM LCL
To GR/IR/CLRG RM LCL
2 Rawmaterial receipt
2
50
40
2000
Dr INV RM LCL
150
3000
To GR/IR/CLRG RM LCL
10
300
3
30
120
2700
3 Material consumption
RM consmn LCL Dr
____
140
120
2840
To INV.RM.LCL
Break up:
1
70
2
50
12
40
840
2000
4 Invoice verification
GR/IR/CLRG RM LCL Dr
Inv RM LCL Dr
Price difference RM LCL Dr
To Party a/c
1000 BSX
1000 WRX
2000 BSX
2000 WRX
300
300
GBB VBR
BSX
1000 WRX
140 BSX (70x2)
60 PRD (30x2)
1200 (vendor no.is take
From P.O)
Presentation in accounts
RM consumption
RM consumption Local
+/- price difference RM LCL
300
60
360
Some consultants for PRD assign a/c price difference RM LCL others assign for PRD RM
consumption Local a/c
Moving average method: stock fully available
Material - RM1
Bill qty
PO Price : 10
Invoice price Rs.12
Qty rate amount

1. material receipt
100 10
1000
Inv.RM local DR
50
40
2000
To GR/IR CLRG RM LCL
--------- 2. Material receipt
1000 BSX
1000 WRX
Page 78
150
30
---Average bill 120
qty
---120
20
3000
Inv RM local DR
2000 BSX
600
2000 WRX
----2400 3. Raw material consumption
200
RM consumption LCL Dr 600 GBB VBR
----To Inventory RM LCL
600 BSX
2600 4. Invoice verification
GR/IR CLRG RM LCL DR
1000 WRX
Inv RM LCL Dr
200 BSX
To Party
1200 vendor is taken from PO
Consumption rate:
Value / Qty 3000/150=20
Next consumption Avg
Value / Qty 2800/120=21.67
method moving average method Stocks partly available
Material - RM1
PO Price : 10
Qty rate amount
Bill qty
100 10
1000
50
40
2000
--------150
3000
110
20
2200
-------Average bill 40
800
qty
80
-------40
880
Invoice price Rs.12

1. material receipt
Inv.RM local DR
2. Material receipt
Inv RM local DR
1000 BSX
1000 WRX
2000 BSX
2000 WRX
3. Raw material consumption

To Inventory RM LCL
2200 BSX
4. Invoice verification
1000 WRX
Inv RM LCL Dr
80 BSX
Price difference
120 PRD
To Party
Consumption rate
Value / Qty 3000/150=20
Next consumption rate:
Value qty 880/40=22.00
In batch method -It has checked batch wise for the material.
In this method -it has checked material wise.
Page 79
4. Method-moving average method Stocks not available safety stocks

Material - RM1
PO Price : 10
Qty rate amount
Bill qty
100 10
1000
50
40
2000
--------150
3000
150
20
3000
-------Average bill
0
0
qty
80
-------40
880
Invoice price Rs.12

1. material receipt
Inv.RM local DR
2. Material receipt
Inv RM local DR
1000 BSX
1000 WRX
2000 BSX
2000 WRX
3. Raw material consumption

To Inventory RM LCL
3000 BSX
4. Invoice verification
1000 WRX
Price difference
200 PRD
To Party
Consumption rate
Value / Qty 3000/150=20
Other options available:
1.along with material receipt bill comes, before taking GR change price in purchase order when
we take goods receipt at new price it takes no price difference
2.in the latest version SAP has given the facility when we do invoice verification we have the
option to add to material or change to accounts the price difference.
Sales and Distribution

Flow:
1. Inquiry and quotation:
Sales dept get inquires from different customers sales dept will send quotations
2. Customer raises purchase order
3. Sales dept raises sales order : Customer no/Material no./ plant/ sales organization/ Qty/
price/ Delivery terms / Payment terms
4. Delivery against sales order
Page 80
A) Delivery without post goods issue (Delivery without PGI) ownership is not
transferred.
Eg. Export sales -Terms of delivery -FOB (Free on board)
Hyderabad Factory
Delivery without PGI
Chennai Port
No FI document
Only material document
Customer
Delivery with PGI
FI document
Material document
FI document : At product cost

Increase /Decrease in stocks FG DR GBB VAY-If sales account is created as revenue
element (Co implemented)1
GBB VAX if sales account is not created as
revenue element (Co not implemented)
To inventory FG
BSX
B) Delivery with Post Goods Issue (Delivery with PGI)
Eg. Local sales terms of delivery -Ex works
Hyderabad factory
Customer
Delivery with PGI
Sales Billing: against delivery
entry
Customer account DR
To Sales
customer no is taken from sales order

ERL
IN SD Module-Pricing procedure
Eg: local billing
Basic price (A)
X
Excise (B)
% on A
Basic+Excise(A+B)=C
X
Sale tax (D)
% on C
Customer Debit (C+D)`
X
Eg: Export billing
Basic price (A)
X
FI consultant job: Assignment of accounts
Condition type:
KOFI (Account assignment-FI)

KOFK (Account Assignment -CO)
Page 81
Assignment of accounts
1
Application
area
2
3
Conditio Chat
n type
of
accou
nts
V-Sales & KOFI
FSL
Distribution
4
Sales
originatio
n
HYD
5
Account
assignment
group for
customers
01
V-Sales & KOFI

Distribution
FSL
HYD
01
V-Sales & KOFI

Distribution
FSL
HYD
02
V-Sales & KOFI

Distribution
FSL
HYD
01
01Domestic
revenues
02-Foreign
revenues
03Affliated
company
revenues
6
Account
assignment
group for
materials
03
7
8
Accou GL account
nt keys
ERL
300005
Sales Local
own goods
01
ERL
300006Sales local
trade goods
03
ERF
300007
Sales export
goods
03
ERL
400320
Sales
Freight
revenu Local own
e
goods
01 Traded ERF
goods
Freight
Reven
ues
02 Services ERBRebate
s
/Tradi
ng
Discou
nts
03 Finished ERS
goods
Sales
Deduct
ions
Note : ERS : Sales commission

400320 freight local own goods
Bank
1000 From customer 1000
Reimbursement of expenses
Page 82
MM CUSTOMIZATION
MM consultant job
1. Define Plants
Path: SPRO --------- > Enterprise structure --------- > Definition
general --------- > Define copy, delete check plant.
--------- > Logistic
Double click on define plant

Plant
: FSLP
Name
: FSL HYD Factory plant
Factory calendar
: Select F1 or 01 (F1= FSL HYD Factory Calendar)
Save
(01=Standard calendar)
Give the name
: FSL Hyderabad factory plant
Country
: IN
Enter
Short description
: MM customization for FSL
Press enter
Enter once again to save in the request
Define division:
Path: SPRO --------- > Enterprise structure --------- > Definition
general --------- > Define copy, Delete, check division.
--------- > Logistic
Double click on define division

Division
: FS (It is a text filed)
Name
: Steel Division
Save
Maintain storage location
Path: SPRO --------- > Enterprise structure
--------- > Definition --------- > materials
management --------- > Maintain storage location (OX09)
Give the plant
Enter
: FSLP
Page 83
Give the storage location

: HYD
Description
: Hyderabad storage location
Save
Maintain purchasing organization

--------- > Definition --------- > materials
management --------- > Maintain purchasing organization
Purchase organization
: FSLR
Description
: FSL Purchase organization
Save
Assign plant to company code:
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > logistics
General --------- > Assign plant to company code ( Tr code is OX18)
Company code
: FSL
Plant
: FSLP
Save
Assign business area to plant/valuation area and division
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > logistics
General --------- > Assign business area to plant/valuation area and division
Select plant /valuation area -Division button
Plant
: FSLP
Division
: FS
Business area
: FSLH
Save
Assign purchasing organization to company code
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > Materials
management --------- > Assign purchasing organization to company code
Page 84

Give the purchase org
: FSLR
Enter
For FSLR assign company code FSL
Save
Assign purchasing organization to plant:
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > Materials
management --------- > Assign purchasing organization to plant
Purchasing org
: FSLR
Plant
: FSLP
Save
Define material groups: ( OMSF)

Path: SPRO --------- > Logistic general
--------- > Material master --------- > Settings
for key fields --------- > Define Material groups.
Material group
: FSLC
Material groups description
: Chemicals
Maintain compafny code for material management:
Path: SPRO --------- > Logistic General
--------- > Material master --------- > Basic
settings --------- > Maintain company code for materials management
Give the comp code
Enter
Year
Period
: FSL
: 2011
: 4 (July)
Note: This period enter carefully, if you once enter not modified
Select ABP check box (ABP stands for Allow Back Period Posting)
Save
Page 85
Define attributes of material types:

Path: SPRO --------- > Logistic General
--------- > Material master --------- > Basic
settings --------- > Material type --------- > Define attributes of material types.
Select material type
: ROH (Raw materials)
Enter
Select ROH
Double click on quantity / Value updating folder
Valuation area
: FSLP (Nothing but plant)
Enter
Select Qty updating check box
Select value updating check box
Save
Select back arrow
Select material type FERT for finished product
Double click quantity / value updating folder
Valuation area
: FSLP
Enter
For valuation area FSLP select quantity updating check box value updating check box
Save
Create purchasing groups:
Path: SPRO --------- > Materials management
Create purchasing groups.
--------- > Purchasing
--------- >

Purchasing group
: FSL
Description
: FSL RM purchasing group
Save
Press entr to save in your request
Set tolerance limits for price variance for purchase order
Path: SPRO --------- > Material management
Purchase order --------- > set tolerance limits for price variance
--------- >
Select Tolerance key PE & SE for company code 1000

Page 86
For PE Company code FSL

Enter
For SE company code FSL
Enter and save
Plant parameters:
--------- > Inventories management
and Physical inventory --------- > Plant parameters
Select plant 1000
Plant
: FSLP
Enter and save
Set tolerance limits for goods receipt
--------- > Inventories management
and Physical inventory --------- > Goods receipt --------- > Set tolerance limits
Select tolerance key B1, B2 & VP for company code 1000
Change the company code FSL for B1
Enter
Change the company code FSL for B2
Enter
Change the company code FSL for VP
Enter and save
Maintain default values for tax codes
Path: SPRO --------- > Materials management --------- > Logistics invoice verification
--------- > Incoming invoice maintain default values for tax codes
Company code
: FSL
Save
Set tolerance limits for Invoice verification:
Path: SPRO --------- > Materials management --------- > Logistics invoice verification
--------- > Invoice Block --------- > Set tolerance limits
Select tolerance key (TIKY) BD and ST for company code 1000
Page 87

Company code FSL for BD
Enter
Company code FSL for ST
Enter
Press enter save in your request
Define automatic status change:
--------- > Invoice verification in back ground
change
Company code
: FSL
Group together valuation areas:
--------- > Logistics invoice verification

--------- > Define automatic status

--------- > Valuation and account
assignment --------- > Account determination --------- > Account determination
without wizard --------- > Group together valuation areas.
Valuation area
: FSLP
Enter
For valuation area FSLP assign valuation grouping code for X
Save
Define valuation classes:
assignment --------- > Account determination
without wizard --------- > Define valuation classes

--------- > Account determination
Select valuation class button

Select valuation class 3000 Raw materials local
Select valuation class 7920 finished products
Change the valuation class 3000 to FSL1
Change the description to Raw materials local
Change valuation class 7920 to FSL2
Change the description to Finished product
Enter and save
Page 88

Define No.range interval for material document:
Path: SPRO --------- > Material management --------- > Inventory management and
physical inventory --------- > Number assignment --------- > Define number assignment
for material and physical inventory document
Select material document for goods receipts check box
From the menu bar select interval --------- > Maintain
Keep the cursor on the year
From the menu bar select Edit -------- > Insert year
Year
: 2009
From number : 3000001
To number
: 3100000
Enter
Save
Select back arrow
Select material document for goods movement and inventory difference check box
From the menu bar select interval --------- > Maintain
Keep the cursor on the year
From the menu bar select Edit -------- > Insert year
Year
: 2011
From number : 3100001
To number
: 3200000
Enter
Save
FI consultants job:
1. Creation of GL masters FS00
A) Inventory RM local
B) Inventory finished goods
C) GR/IR clearing RM local
D) RM consumption local
E) INC/DEC in stocks FG
Company code
Company code
Current assets loans & advances

-doCurrent liabilities & Provisions
RM Consumption
Increase /Dec in stocks
: 200121
: FSL
: 200120 Inventory RM
: FSL
Page 89
Enter
Change the short text
: Inventory RM local
Change the GL a/c long text : Inventory RM local
Tax category
: select * (All tax allowed)
Select posting without tax allowed check box
Select create/Bank/Interest tab
Field status group change
: G006 Material accounts
Select post automatically only check box
Save
All BSX account assignments we have to select post automatically only check box
GL account no.
: 200122
Company code
: FSL
Give the GL a/c
: 200121
Company code
: FSL
Enter
Change short text
: Inventory FG
GL a/c long text
: Inventory FG
Save
GL account
: 100520
Company code
: FSL
GL account
: 100500 outstanding exp.
Company code
: FSL
Enter
Change short text
: GR/IR clearing RM local
GL account and long text
: GR/IR clearing RM local
Tax category
:*
Select posting without tax allowed check
Sort key
: 014 Purchase order
Select create /bank /interest tab
Field status group change to G045 (goods/Invoice received clearing accounts)
Save
G/L account
: 400000
Company code
: FSL
Give the GL account
: 400100 Salaries a/c
Company code
: FSL
Enter
Select type/description tab
Change the account group to RM consumption
Change short text
: RM consumption local
Page 90

: RM consumption local
Field status group to change to G003 (Material consumption accounts)
Save
Valid from
: 01.04.2011
Enter
: Select 01
Save
GL account
: 300200
Company code
: FSL
Change the GL a/c
: 300100 Exchange gain
Company code
: FSL
Enter
Select type/Description tab
Change account group
: Increase /Decrease stocks
Change short text
: Increase/Decrease in stocks FG
: Increase/Decrease in stocks FG
Select create/Bank/Interest tab
Change field status group to G030 change in stock accounts
Save
*Assignment of accounts for automatic postings

assignment --------- > Account determination --------- > Account determination
without wizard --------- > Configure automatic postings (Tr code is OBYC) (MM to FI
Integration)
Select cancel button
Select account assignment button
Double click on BSX inventory posting
Give your Chart of Accounts
: FSL
enter
Select valuation modifier check box
Select valuation class check box
Save
Valuation modified
Valuation class
Account
Page 91
X
FSL1 RM local
200121 Inventory RM local
X
FSL2 Finished products
200122 Inventory FG
Save
Select back arrow
Double click on transaction WRX GR/IR clearing account
Save
Valuation modifier
:X
Valuation class
: FSL1 RM local
Account no.
: 100520 GR/IR clearing local
Save
Select back arrow
Double click on transaction GBB offsetting entry for Inventory posting
Select General modification check box
Select Valuation modifier check box
Select Valuation class check box
Save
Valuation General modification
modifier
X
VBR (consumption)
X
X
X
ZOF (Production
receipt
without production order)
AUF production receipt with
production order
VAY (Delivery where sales
account is created as revenue
element
Co implemented)
VAX Delivery where is sales
account is not created as
revenue element
CO not implemented
Save
Valuation class
FSL1 RM local
FSL2
products
FSL2
Account
400000
RM
consumption local
Finished 300200 Increase /
Decrease stocks FG
300200
FSL2
300200
FSL2
300200
Document types and no.ranges (OBA7)

Page 92
Type
WE
WA
RE
: Goods receipt
: Goods issue
: Grass invoice receipt
No.Range
50
49
51
Select type
WE
Select number range information button
Company code
: FSL
No. range
: 50
Year
: 2011
From no.
: 900001
To no.
: 1000000
Enter and save
Select back arrow 3 times
Select type WA Goods issue
Number range
: 49
Select no.range information button
Company code
: FSL
No.range
: 49
Year
: 2011
From no.
: 1000001
To no.
: 1100000
Enter and save
Select RE gross invoice receipt
Select no.range information button
Company code
: FSL
No.range
: 51
Year
: 2011
From no.
: 1100001
To no.
: 1200000
Page 93
Enter and save

MM end user area

Creation of vendor master XK01:
: FSL
Purchasing organization
: FSLR
Account group
: FSL2 MM vendors for FSL
Enter
Give the name
: FSLMM Vendor
Country
: IN
Select next screen button 3 times
: select 100501 Sundry credit RM
Sort key
: 012 vendor
Select next screen button
Payment terms
: 0001
Select next screen button 2 times
Order currency
: INR
Payment terms
: 0001
Select GR based invoice verification check box
Save
Creation of RM material master
Path: Logistics --------- > Materials management --------- > Material master --------> material --------- > Create (Genral)
--------- > Immediately (Transaction code
MM01)
Material
: FSLRM1
Industry sector
: Mechanical engineering
Material type
: Raw material
Press select views button
Select basic data1, purchasing, general plant data/storage1/accounting1 and costing1
Select organization levels button (bottom side)
Give the plant
: FSLP
Storage location
: HYD
Enter
Give the description
: Raw material 1
Basic unit of measurement : KG
Material group
: FSLC (Chemicals)
Division
: FS (Steel)
Page 94
Select purchasing tab

Purchasing group
: FSL
Select accounting one tab
Valuation class
: select BIL1 (RM local)
Price control
: select V moving average price
Moving price
: 75
Select costing 1 tab
Select material origin check box
To open material periods for August :
Path: Logistics --------- > Materials management --------- > Material master --------> Other --------- > Close period (Transaction code is MMPV)
From company code
: FSL
Give the period
: 5 (Aug)
Fiscal year
: 2011
Select check and close period radio button
Execute
Creation of Purchase order:
Path: Logistics
--------- > Material management
--------- >
Purchase order --------- > Create --------- > Vendor/supplying plant known (The
transaction code is ME 21N)
Vendor
: 4000101
Enter
Give the purchasing organization
: FSLR
Company code
: FSL
Give the purchasing group
: FSL
Item
: 10
Material
: FSLRM1
PO quantity
: 100 Kg
Net price
: 100
Plant
: FSLP
Give the currency
: INR
Save
Note the purchase order no.4500017094
Goods receipt:
Path: Logistics
--------- > Material management
--------- > Inventory management
--------- > Goods movement --------- > Goods receipt --------- > for purchase order -------- > PO number known (The transaction code is MIGO)
Page 95
Select goods receipt

Give purchase order no.4500017094
Enter
Quantity in delivery note
: 1000
Select item ok check box
Select where tab
Storage location select
: HYD
Select display button
Enter
Select document information tab
Select FI documents button
200121 Inventory RM local
100000
100520 GR/IR CLRG RM local

-100000
Qty .in (GR) *Rate as per PO
1000*100 Rs
FSLRM1
BSX
FSL1
FSLRM1
WRX
FSL1
Invoice verification:
To assign FSL tax to country India
Path: SPRO -------- > Financial Accounting --------- > Financial accounting global settings -------- > Tax on sales/ purchase --------- > Basic settings --------- > Assign country to
calculation procedure
For country IN assign FSL TAX
Save
Save in your request.
Invoice verification:
Path: Logistics
--------- > Materials management
--------- > Logistics --------- >
Invoice verification
--------- > Document entry --------- > Enter invoice (Transaction
code is MIRO)
Compay code
: FSL
enter
Give the invoice date
: Todays date
Reference
: Party bill no. 2345
Text
: Invoice verification
Purchase order
: 4500017094
Enter
Select calculate tax check box
Tax code
: VO (0% input tax)
Page 96
Enter
Amount
: 100000
Enter
From the menu select invoice document - --------- > Display
Select follow on document button
4000101 FSL MM Vendor
100000 From purchase order party no is taken

WRX
100520 GR/IR CLRG RM local100000 FSLRM1 FSL1
Raw material consumption :
Path: Logistics
--------- > goods movement --------- > goods issue (Transaction code is MB1A)
Movement type
: 201
Plant
: FSLP
Storage location
: HYD
Enter
Give the cost center : Dept A
Material
: FSLRM1
Quantity
: 60
From the menu select goods Issue - --------- > display
Enter
Select accounting documents button
Select accounting document number
WRX
200121 Inventory RM local 6000- FSLRM1
FSL1
GBB VBR
400000 RM consumption LCL 6000 FSLRM1
FSL1
Qty consumed * moving average price
60kg *100Rs
To view stock Register:
Path: Logistics
--------- > Environment --------- > Stock for posting date (Transaction code is MB5B)
Material no
Company code
Plant
Selection date
: FSLRM1
: FSL
: FSLP
: 01.04.2011 to 31.03.2012
Page 97
Select valuated stock radio button

Execute
Interview question:
Automatic clearing or how to see materials received and bills not received
Path: Accounting --------- > Financial Accounting --------- > General ledger ---------- >
Periodic processing --------- > Automatic clearing --------- > without specification of
clearing currency F.13
Company code
: FSL
Select select GL accounts check box
GL account
: 100520
Error message for material document numbers:
Path: SPRO -------- > Material Management ---------- > Inventory management and
physical inventory --------- > Number assignment --------- > Define number assignment
for material and physical inventory documents (tr. Code OMBT)
Select the check box having WE doc.Receipt
From the menu bar select Interval -- --------- > Maintain
Keep the cursor on year
From the menu bar select Edit --- --------- > Insert year
Year
: 2011
From number : Select drop down button select xxxx
To
: xxxx
Enter and save
Select back arrow
Select check box having doc.type WA
Other steps are as above.
SD INTEGRATION
SD consultants job
1. Define region: (State)
Path: SPRO --------- > SAP net weaver
countries --------- > Insert regions
--------- > General settings --------- > Set

Country
: IN
Region
: AP
Page 98
Description
: Andhra Pradesh
Save
Select create request button(F8)
Short description SD customization for FSL
Enter
Define sales organization:
--------- > Sales
and distribution --------- > Define, Copy, Delete, Check, Sales organization
Double click on sales organization
Sales organization
: FSLS
Description
: FSL HYD
Sales organization
Statistics currency
: INR
Save,
Give the name
: FSL HYD sales organization
country
: IN
Enter
To save in your request
Define distribution channel :
--------- > Sales
& distribution --------- > Define, copy, delete, check distribution channel
Double click on define distribution channel
Distribution channel
: FD
Name
: Direct sales
Save
Define shipping point:
Path: SPRO --------- > Enterprise structure --------- > Definition --------- > Logistic
execution --------- > Define, copy, delete, check shipping point
Double click define shipping point
Shipping point
: FSSH
Page 99
Description
: FSL HYD shipping point
Save
Name
: FSL HYD shipping point
Country
: IN
Enter
Press enter once again to save in the request
Assign sales organization to company code:
Path: SPRO --------- > Enterprise structure --------- > Assignment --------- > Sales
& Distribution --------- > Assign sales organization to company code
Sales organization
: FSLS
Enter
For FSLS assign company code FSLS
Save
Assign distribution channel to sales organization :
& Distribution --------- > Assign distribution channel to sales organization
Sales organization
: FSLS
: FD
Save
Assign division to sales organization
Path: SPRO --------- > Enterprise structure --------- > Assignment
& Distribution --------- > Assign division to sales organization
--------- > Sales

Sales organization
: FSLS
Division
: FS
Save
Setup sales area:
& Distribution --------- > Setup sales area
--------- > Assignment
--------- > Sales
Page 100

Sales organization
: FSLS
: FD
Division
: FS
Save
Assign sales organization
- distribution channel- plant:
& Distribution
--------- > Assign sales organization
--------- > distribution
channel --------- > plant
Sales organization
: FSLS
distribution channel
: FD
Plant
: FSLP
Save
Define rules by sales area:
& Distribution
--------- > Business area account assignment
--------- > Define
rules by sales area
Sales organization
: FSLS
enter
For FSL select rule
: 001 (Business area determination from plant / division)
Save
Assign shipping point to plant:
--------- > Assignment
logistic execution --------- > Assign shipping point to plant
--------- >
Select find button

Find
: FSLP
Press enter
Select
: FSLP
Select assign button
Select FSSH check box
Enter
Page 101
Save
Define common distribution channels:
Path: SPRO --------- > Sales & Distribution
Define common distribution channels
Give the sales organization
: FSLS
Enter
For FSLS Distribution channels for condition
Distribution channels customer master
Save
--------- > Master data
--------- >
: FD
: select FD
Define common divisions:

Path: SPRO --------- > Sales & Distribution
Define common divisions
--------- > Master data
--------- >

Sales organization
: FSLS
Enter
Division for conditions : select FS
Division for customer master: select FS
Save
Maintain pricing procedures
Path: SPRO --------- > Sales and distribution --------- > Basic functions --------- >
pricing --------- > Pricing control --------- > Define and assign pricing procedures
Double click on maintain pricing procedures
Select pricing RVAA01 standard
Double click on control data folder
For step 915 for condition type MWST output tax
Deselect required check box
Save
Ignore the warning message press enter to save
Define pricing procedure determination:
Page 102
Path: SPRO --------- > Sales and distribution --------- > Basic functions --------- >
pricing
--------- > Pricing control
--------- >
Define pricing procedure
determination
Double click on define pricing procedure determination
Sales organization
: FSLS
: FD
Division
: FS
Document pricing procedure
: select A standard
Customer pricing procedure
: select 1 standard
Pricing procedure
: select RVAA01 standard
Condition type
: select PR00 price
Save
Define tax determination rules:
Path: SPRO --------- > Sales and distribution
--------- > Basic functions --------- >
Taxes --------- > Define tax determination rules
Tax country
: IN for India
Enter
For tax country In for sequence 1 tax category UTXJ
Select tax country IN sequence 2
From the menu bar select Edit -- --------- > Delete
Save
Save in your request.
Setup partner determination:
Partner functions
SP Sold to Party
SH Ship to party
BP Bill to party
PY Payer
Customer No.
1
1
1
1
Customer No.
1 Not modifiable
2 Modifiable
2. Modifiable
2 Modifiable
If we dont specify separately (SP,SH,BP and PY)all we be only customer

Path: SPRO --------- > Sales and distribution
--------- > Basic functions --------- >
Partner determination --------- > Set up partner determination
Page 103
Double click setup partner determination for customer master

Double click on partner functions folder
Partner function : SP
Enter
Select partner function SP
Double click on account group function assignment folder
Partner function
: SP
Account group
: FSL2
Partner function
: SH
Account group
: FSL2
Partner function
: BP
Account group
: FSL2
Partner function
: PY
Account group
: FSL2
Save
Ignore the warning message press enter to save in your request
Double click on partner determination procedures folder
Partner determination : FSL
Name
: FSL partner determination procedure
Save
Select partner determination FSL
Double click partner functions in processor folder
Partner function
Not Modifiable
Mandatory
SP
X
X
SH
X
BP
X
PY
X
Save
Double click on partner determination procedure assignment folder
Account group
: FSL2
Enter
For FSL2 Assign partner procedure FSL
Save
Page 104
Assign shipping points

SPRO --------- > Logistics execution --------- > Shipping
--------- > Basic shipping
functions --------- > Shipping point and goods receiving point determination -------- > Assign shipping point
Shipping conditions
: Select 01 as soon as possible
Loading group
: 0003 manual
Plant
: FSLP
Propose shipping point : FSSH
Save
FI consultant job:
Creation of GL master sales local own goods -FS00
Give the GL a/c no.
: 300005
Company code
: FSL
Give the GL a/c no.
: 300000 sales account
Company code
: FSL
Enter
Change short text
: Sales local own goods
GL a/c long text
: Sales local own goods
Select create /Bank /Interest tab
Field status group
: G029 revenue accounts
Save
Valid from
: 01.04.2011
Enter
Cost element category : 11 Revenues
Save
Assignment of account for automatic postings:
Path: SPRO --------- > Sales and Distribution
--------- > Basic function --------- >
Account assignment/costing --------- > Revenue account determination
--------> Assign GL accounts (Transaction code is VKOA)
Note: This is Important Tr code
Page 105
Double click on table one

Application area
Condition type
Chart of accounts
Sales organization
Account assignment group of customer
Account assignment group of material
Account key
GL account
Save
:
:
:
:
:
:
:
:
Select V Sales & Distribution

KOFI account data
FSL
FSLS
Select 01 domestic revenues
03 finished goods
Select ERL sales revenues
300005 sales local own group
SD end user area

Creation of customer master: XD01
Company code
: FSL
Sales organization
: FSLS
distribution channel
: FD
Division
: FS
Account group
: SD customer for FSL
Enter
Name
: FSL SD Customer
Country
: IN
Region
: AP
Select company code data button
: 200110 sundry debtors
Sort key
: 031 customer no.
Select payment transaction tab
Terms of payment
: 0001
Select sales area data button
Customer pricing procedure
: select 1 standard
Select shipping tab
Delivery priority
: select 02 normal
Shipping conditions
: select 01 as soon as possible
Delivery plant
: FSLP
Select billing documents tab
Select price determination check box
In CO terms under delivery and payment terms : select EXW form plant
Terms of payment
: 0001
Account assignment group
: select 01 domestic revenues
For Tax category UTXJ Tax classification
: select 1 liable for tax
Save
Creation of finished goods material master (MM01)
Page 106
Give the material

: FSLFG
Industry sector
: Mechanical engineer
Material type
: Finished product
Select basic data 1,
Select Sales: Sales organization data 1,
Select Sales: sales org.data 2,
Select Sales: General /plant data,
Select MRP1,
Select general plant data /storage 1,
Select accounting 1,
Select costing 1,
Select organization levels button
Plant
: FSLP
Storage location
: HYD
Sales organization
: FSLS
: FD
Enter
Description
: Finished product
Base unit of measurement
: KG
Division
: FS
Gross weight
: 0.99 kg
Select sales: Sales Organization 1 tab
Tax classification
: 1
Select sales: Sales Organization 2 tab
Account assignment group
: select 03 finished goods
Select sales : General /plant tab
Available check
: select KP no check
Transportation group
: select 0003 container
Loading group
: select 0003 manual
Select MRP1 tab
MRP type
: select ND no planning
Select accounting 1 tab
Valuation class
: select FSL2 finished product
Price control
: select S standard price
Standard price
: 300
Save
Define condition types:
Page 107
Path: Logistics --------- > Sales & Distribution --------- > Master data --------- >
Conditions
--------- > Select using conditions type --------- > create (Transaction
code is VK11)
Condition type
: PR00 price
Select key combination button: Select material with release status radio button
Enter
Sales organization
: FSLS
: FD
Material
: FSLFG
Amount
: 400
Valid from
: 01.04.2011
Valid to
: 31.12.9999
Save
Select back arrow
Condition type
: select UTXJ tax Jurisdiction code
Select key combination button
Select domestic taxes radio button
Enter
Country
: IN for India
Tax classification for customer : 1
Tax classification for material
: 1
Valid from
: 01.04.2011
Valid to
: 31.12.9999
Tax code
: A0 (0% output tax)
Save
PROFITABILITY ANALYSIS (CO-PA)

Co stands for Controlling
PA stands for Profitability Analysis
This is used to view profitability for number of parameters at a time:
Eg: Customer wise, Product wise, Sales order wise, plant wise, Sales organization wise
profitability.
Account based profitability analysis /costing based profitability analysis or both (in India we use
both)
Page 108
Flow
From MM Module
PP Module product costing SD module CO-PA
CO Module
FI Module
Define an operating concern
Operating concern can be equal to controlling area or above controlling area
Controlling area can be equal to company code or above company code
Company code =controlling area =operating concern
Data structure - It consists of

Characteristics
Customer
Sales order
Plant
Sales organization
Product
Sales employee
Industry
Value fields
-----|
|
|-
|
|
|
----
Sales cost of goods sold net profit
Profitability segment It consists of

A) System defaulted characteristics
Eg: customer / Product / Sales order /Plant /Sales organization
B) Client required characteristics
Eg: Sales employee / Industry
Data flow in SD module:
1. Inquiry and quotation
2. Customer rises purchase order
3. FSL raises Sales order -customer no /product /plant / sales organization /quantity /rate
delivery terms /payment terms.
4. Delivery with reference to sales order.
A) Delivery without posting goods issue (without PGI)
B) Delivery with post goods issue (with PG1)
5. Sales billing with reference to delivery
Data flow in Co-PA
Page 109
SD condition types
PR00
Price
VPRS
Costs
(Product costs)
(up to COGM level)
CO-PA value fields

VV 010 - Revenues
VV 140 - Cost of goods sold
from CO
Up toCOGM level
from FI
Admin & SD Exp.
We are going to MAP:

PR00 =VV010
VPRS=VV140
We are not SD Consultants we dont know SD condition types
In Client 800 for company code 1000 - controlling area -1000 - operating area - IDEA
All SD condition types and equivalent to COPA value fields it is a reference to all CO consultants
In product costing for material FSLFG
Raw materials
xxx
accounting standards 2 (AS2)
Raw material overheads
xxx
for stock valuation
Production costs
xxx
stock valuation will be at COGM level or COGM+Admn
----- level
Cost of goods manufactured xxx
(COGM)
Administration
xxx
Sales & Distribution Exp
xxx
----Cost of goods sold (COGS) xxx
CUSTOMIZATION :
Maintain operating concern
Path: SPRO --------- > Controlling --------- > Profitability analysis --------- > Structures -------- > Define operating concern --------- > Maintain operating concern (Tr code is KEA0)
Give the operating concern

: FSL1 (It is a text field)
Description
: Operating concern for FSL
Select costing based check box
Select account based check box
Select attributes tab
Operating concern currency
: INR
Select company code currency check box
Fiscal year variant
: V3
Page 110
Save
Select data structure tab
Select create button under data structure
Select characteristic BRSCH Industry
Select left arrow
Select value fields tab
Select value fields VV010 revenue
Select VV140 cost of goods sold
Select left arrow
Select save button
From the menu select data structure ----- > Activate
Select back arrow
Select yes button for the message to generate the operating concern environment.
Save
Assign controlling area to operating concern:
Path: SPRO --------- > Enterprise structure --------- > Assignment
-------- > Assign controlling area to operating concern.

: FSL
Enter
For controlling area FSL Operating concern : FSL1
Save
Define profitability segment characteristics (Segment -level characteristics)

Path: SPRO ------ > Controlling --------- > Profitability analysis -------- > Structures --------- >
Define profitability segment Characteristics (Tr code is KEQ3)
Give the operating concern : FSL1
Enter
For sales order select costing based account based radio button
For product customer select costing base and account base radio button
Save
Page 111
Define no.range for actual postings

values
--------- > Initial steps
KEN1)
--------- > Profitability analysis --------- > Flows of actual

--------- > Define no. range for actual postings (Tr code is
Operating concern
: FSL1
Select generated groups check box
From the menu select interval ------- > Maintain
From no.
: 1
To no.
: 9999999999 (10 times)
Save
Maintain assignment of SD conditions to CO-PA value fields:
Path: SPRO --------- > Controlling --------- > Profitability analysis --------- > Flows of actual
values
--------- >
--------- > Transfer of billing documents
--------- > Assign value fields.
(TR code is KE4I)
Double click on maintain assignment of SD conditions to CO-PA value fields
Condition type
: PR00
price
Value field
: VV010 (Revenues)
Condition type
: VPRS (cost)
Value field
: VV140 (Cost of goods/ Sold)
Save
Direct posting from FI/MM
If we post to account numbers 300000-399999 directly up date value field VV010 revenues
If we post to account numbers 400000-499999 directly up date value field VV140 cost of goods
sold
Path: SPRO --------- > Controlling --------- > Profitability analysis --------- > Flows of actual
values ------- > Direct posting from Fi/MM --------- > Maintain PA transfer structure for direct
postings (tr- code KEI2)
Select structure FI (Financial accounting CO - PA)
Double click assignment lines folder
Page 112

: FSL
Enter
Enter once again
Select assignment 20 (Direct revenues from FI)
From
: 300000
To
: 399999
Double click on value fields folder
Quality /value
: Select value filed
Fixed /variable
: Select 1 fixed amounts
Value field
: select VV010
Save
Double click on assignment lines folder
Select Assignment 10 Direct cost from FI
From
: 400000
To
: 499999
Quantity /value
: select value field
Fixed /variable
: select 1 fixed amount
Value field
: VV140
Save
Activate profitability analysis

Path: SPRO --------- > Controlling --------- > Profitability analysis
values --------- > Activate profitability analysis (KEKE)
--------- > Flows of actual

: FSL
Enter
For controlling area FSL Activate status: select 4 (component activate for both types of
profitability analysis)
Save
SD END USER AREA
1. Creation of sales order
Page 113
Path: Logistics --------- > Sales and Distribution

- > Create (Tr code is VA01)
--------- > Sales
--------- > Order
--------
Order type
: select OR (Standard Order)
Sales organization
: FSLS
Distribution Channel : FD
Division
: FS
Enter
Sold to party
: 3000501
P.O.No.
: 1
P.O.Date
: To days date
Required delivery date: Todays date
Delivery plant
: FSLP
Item
: 10
Material
: FSLFG
Order quantity
: 10 kg
Enter
Select item
: 10
From the menu select Go to Item - --------- > Conditions
Select shipping tab
From the menu select Edit -------- > In complication log
We get a message document is complete, no errors
Note the order no.11764
To open Material period for September(MMPV)
From co. code
: FSL
Period
: 6
Fiscal year
: 2011
Select check and close period radio button
Execute.
Production receipt :
There are two types of production receipt.
1. Production receipt without production order
MVT Type: 521
2. Production receipt with production order

MVT Type: 101
Production receipt without production order
Page 114
Path: Logistics --------- > Materials Management --------- > Inventory management -------- > Goods movement
--------- > Goods --------- > receipt
--------- > other (Tr code is
MB1C)
Moment type
: 521 (Receipt w/o production order into unrest -use stock)
Plant
: FSLP
Storage location
: HYD
Enter
Give the material
: FSLFG
Quantity
: 2000
Save
Note: Check it GL A/c 200122 Inventory, select automatic posting check box
From the menu select other goods receipts --------- > Display
Enter
Select accounting document no.
BSX
200122 Inventory FG 100000 FSLFG
FSL2
GBB ZOF
300200 INC/DEC in stocks FG 100000-FSLFG
FSL2
Qty produced * Standard Price
2000 Kgs*500 Rs
Delivery with reference to sales oreder:
Path: Logistics --------- > Sales & Distribution --------- > Sales --------- > Order
Sub request functions --------- > Outbound delivery (Tr code is VL01N)
--------- >
Shipping post
: FSSH
Give the order no.
: 11764
Enter
Actual goods issue date
: Todays date
Select item 10
Select picking tab
Picked quantity
: 10
Select post goods issue button
From the menu select outbound delivery - --------- > display
Enter
From the menu select Environment --- --------- > Document flow
keep the cursor on goods issue delivery document no. (Down side in document column)
Select display document button
Page 115

200122 Inventory FG 5000 FSLFG
BSX
FSL2
GBB VAY
300200 INC/DEC in stocks FG 5000 FSLFG FSL2
Qty delivered *Standard price
10kgs * 500
Sales billing
Path: Logistics --------- > Sales & Distribution --------- > Sales --------- > Order
Sub request functions --------- > Billing document (Tr code is VF01)
--------- >
Select Delivery document no.

Execute
Save
From the menu select Billing document --------- > Display
Select accounting button
Double click on accounting document no.
3000501 SD customer for FSL 6000 customer no.is taken from sales order
300005 Sales local own goods 6000-ERL
Qty sold *Sale price
10kg * 600 Rs.
REPORT PAINTER
Report to view customer wise/product wise /Sales organization wise /plant wise profitability
Create form:
--------- > Profitability analysis
system --------- > report components --------- > Define forms --------- > Define forms for
profitability reports-(The Tr code is KE34)
Double click on create Form
Operation concern f
: FSL 1
Enter
From
: FSL Form des: FSL Form
Select two axes (matrix) radio button
Select operating concern currency radio button
Enter
Double click on row 1
Page 116
Select value field with characteristics radio button

Enter
Value field
: select VV010 - Revenue
Select value field with characteristics radio button
Enter
Value field
: select VV140 -cost of goods sold
Select formula radio button
Enter
Select Y001 revenue
Select minus button
Select Y002 cost of goods sold
Enter
Short text
: Net profit
Select copy short text button
Enter
Double click on column 1
Select characteristics radio button
Enter
From available characteristics Select plant /Actual indicator
Select left arrow
For plant /actual indicator From : Select 0 actual data
Save
From the menu select Edit --------- > General data selection ---------------> General data selection
From the available characteristics column
Select record type, period /year
Select left arrow
For record type
From column
: Select B direct posting from FI
To column
: Select F billing data
For period /year Select variable on /off check box
For from column
Local variable
: 1
Press enter
For to column select variable on/off check box
Local variable
: 2
Enter
Save
From the select Extras --------- > variables --------- > variable definition
Page 117
For name 1 description

For name 2 Description
Enter & save
: From period /year

: To period /year
Create profitability report:

--------- > Profitability analysis
system
--------- > report components
--------- > Define forms
--------- > Create
profitability report
Double click on crate profitability report
Report name
: FSL report
Description
: FSL profitability report
Tr code is KE31
Select report with form radio button
Description
: FSL form
From characteristics list
Select customer, plant, product, sales organization and sales order
Select left arrow
Select output type tab
Select classic drill down radio button
Select available on selection screen check box
Save
Form period/year
: 01.2011
To period /Year
: 12.2011
Execute
Ignore the message select press yes button
To view sales order wise profitability
From the menu select navigate --------- > with drill down
Double click on Sales order
This called date cube
Page 118
NEW GENERAL LEDGERS ( ECC 6 NEW FEATURES)

New General ledger (Multiple ledgers)
Company code FSL assigned fiscal year variant V3 OL- Leading ledger
For Jan - Dec fiscal year variant K4 Fi Non leading ledger
FSL group in UK July - June fiscal year Variant V6 - F2 Non leading ledger
When we create ledger F1 ledger group F1 will be created and ledger F1 will be assigned
automatically
When we create ledger F2 ledger group F2 will be created and ledger F2 will be assigned
automatically
At the time of posting we have to specify ledger group
At the time of posting if we dont specify any ledger group
All ledgers will be update automatically
At the time of posting we want to update only ledgers OL and F1
Create a ledger group called F3 and assigned ledger OL and F1
If we want to update only ledger F1 and F2 create a ledger
Group called F4 and assigned ledger F1 and F2
If we want to update only ledger F1 at the time of posting we give ledger group F1
When the ledger group consists of OL and other ledgers
OL should be the representative ledger at the time of posting
System checks weather representative ledger periods are open or not
When the ledger group consists of F1 and F2 the representative ledger can be F1 and F2
At the time of posting it generates document numbers in non leading ledger also
In live environment we use only one number range for all non leading ledger document types
If we give no. range interval only for that no. range it applies for all the document types
CUSTOMIZATION
Activate new general ledger accounting:
Path: SPRO --------- > Financial accounting
--------- > Financial accounting global settings
--------- > Activate new general ledger accounting
Select new general ledger active check box
Save
(This is one time job work at client place)
Define ledgers for general ledger accounting
Page 119

settings (new)
--------- > Legers
--------- > Ledger --------- > Define ledgers for general
ledger accounting
Ledger
: F1 ( Text filed)
Ledger name : Non leading ledger F1for FSL
Totals table : FAGLFLEXT
Ledger
: F2
Ledger name : Non leading ledger F2 for FSL
Totals table : FAGLFLEXT
Save
Define and activate non-leading ledgers:
settings (new) --------- > Legers --------- > Ledger --------- > Define and activate non -------- > leading ledgers
Give the ledger
: F1
Enter
Company code
: FSL
Fiscal year variant
: K4
Posting period variant : FSL
Save
Select back arrow
Give the ledger
: F2
Enter
Company code
: FSL
Fiscal year variant
: V6 (July to June)
Posting period variant : FSL
Save
Define ledger group:
settings (new) --------- > Legers --------- > Ledger --------- > Define ledger group
Page 120
Ledger group
: F3
Description
: Ledger group F3 for FSL
Save
Save request
Double click on ledger assignment folder
Select Ledger
: OL
Deselect representative ledger check box
Ledger
: F1
Deselect representative ledger check box
Save
Define document types for entry view in a ledger
Path: SPRO --------- > Financial accounting (new) --------- > Financial accounting global
settings (new)
--------- > Document
--------- > Document types
--------- > Define
document types for entry view in a ledger.
Give the ledger
: F1
Enter
Type
Number range
SA
70 (give it any number range)
KR
70
DR
70
AA
70
WE
70
WA
70
WL
70
RE
70
RV
70
Save
Select back arrow
Give the ledger
: F2
Enter
Type
SA
KR
DR
AA
Number range
71
71
71
Page 121
WE
WA
WL
RE
RV
71
71
71
71
71
Save
Define document types for general ledger view
settings (new)
--------- > Document types
--------- > Define
document types for general ledger view
Give the ledger
: F1
Enter
Type
Number range
SA
KR
72
DR
72
AA
72
WE
72
WA
72
WL
72
RE
72
RV
72
Save
Select back arrow
Ledger
: F2
Enter
Type
SA
KR
DR
AA
WE
WA
WL
Number range
73
73
73
73
73
73
Page 122
RE
RV
73
73
Save
Define document number ranges for entry view:
settings (new)
--------- > Document number rages
--------- >
Documents in entry view --------- > Define document number ranges for entry view
: FSL
No.range
: 70
Year
: 2011
From no.
: 800001
To no.
: 900000
Enter
No.range
: 71
Year
: 2011
From no.
: 900001
To no.
: 1000000
Enter and save
Define document no.range for general ledger view:
settings (new) --------- > Document --------- > Document no.rages --------- > Documents in
general ledger view --------- > Define document no.range for general ledger view
: FSL
No.range
: 72
Year
: 2011
Form number
: 1000001
To number
: 1100000
Enter
No.range
: 73
Year
: 2011
Page 123
From number
: 1100001
To number
: 1200000
Enter & save
END USER AREA

Posting of transaction :
Path: Accounting
--------- > Financial accounting --------- > General ledger
Posting --------- > Enter general posting for ledger group (Tr code is FB01L)
--------- >

: Todays date
Type
: SA
Ledger group
: blank
Company code
: FSL
Posting key
: 40
Account number
: 200105
Enter
Give the amount
: 100000
Business area
: FSLH
Text
: Equity share capital receipt
Posting key
: 50
Account no.
: 100000 Equity share capital
Enter
Amount
: *
Business area
: FSLH
Text
: +
Document ---- --------- > Simulate & Save
Document date
: Todays date
Type
: SA
Ledger group
: F3 (OL, F1)
Company code
: FSL
Posting key
: 40
Account no.
: 200105
Enter
Amount
: 25000
Business area
: FSLH
Text
: Equity share capital receipt
Posting key
: 50
Account no.
: 100000 Equity share capital
Page 124
Enter
Amount
: *
Business area
: FSLH
Text
: +
Document --------- > Simulate & Save
To view the ledger

Path: Accounting
--------- > Financial accounting
--------- > General ledger
Account --------- > Display balances (new) (Tr cod is FAGLB03)
--------- >
Account number
: 100000
Company code
: FSL
Fiscal year
: 2011
Ledger
: 0L
Execute
Double click on cumulative balance 125000
Double click on document no
Select document no.check box
Select display document button
Select call up document overview button
Select choose ledger button
Change the ledger
: F1
Enter
Execute
Select back arrow
Select choose ledger button
Change the ledger
: F2
Enter
Execute
Segments Creation
In profit centre accounting
1st Scenario
HYD Location
I
I
Steel
Cement
Pharma
business
1st scenario
HYD Location
I
I
Steel
Cement
Segment
and
Pharma
Profit
Page 125
Division
Division
Division
area and
Profit
center
2nd Scenario
HYD
BGL
LOC
LOC
I
I
Steel Cement
Division Division
Division
Division
Division
center
2nd scenario
MUM
LOC
I
Pharma
Division
Business
area
or
Profit
Center
HYD
BGL
LOC
LOC
I
I
Steel Cement
Division Division
MUM
LOC
I
Pharma
Division
Segment
or
Profit
Centre
The disadvantage in business area is it will not pick up business area for automatically
generated line items
Eg: central excise and sales tax business area
Trail balance will not match we have to run business area clearing
Instead of business area go for segments
In profit center segment will be assigned once we update profit centre automatically segment
will be updated
SAP Note: no future developments for business area
Define segment:
accounting --------- > Define segment

Segment
Description
HYD
Hyderabad segment
BGL
Bangalore segment
Assign segment in profit centers:
Path: Accounting --------- > Controlling profit center accounting --------- > Master data
-------- > profit center --------- > Individual processing change (Tr code is KE52)
Controlling area
enter
Profit center
Enter
Segment
: FSL
: select Steel
: select HYD
Page 126
Enter
Select activate button (Shift +F1)
One more profit centre
Profit center
Enter
Segment
Select activate button
: Cement
: select HYD
DOCUMENT SPLITTING
In document splitting, the line items are split according to selected dimensions Eg: Profit Center wise, Segment wise
We can prepare Balance sheet and profit and loss account for the selected dimensions.
Eg: Sales of steel and cement to one customer
Sales
Customre X Account Dr
To Sales Steel
To Sales cement
200000
150000 Steel profit center
50000 Cement profit center
HYD segment
HYD segment
Due to document splitting

Customre X Account Dr
To Sales Steel
To Sales cement
200000
150000 Steel profit center
50000 Cement profit center
HYD segment
HYD segment
General Ledger view:

Sundry debtors
Dr
150000
Sundry debtors
Dr
50000
To Sales Steel
150000
To Sales cement
50000
Creation of 3GL masters : FS00
Steel profit center

Cement profit center
Steel profit center
Cement profit center
A) Sales -Steel
B) Sales -Cement
C) Zero balance clearing a/c
Sales
HYD segment
HYD segment
HYD segment
HYD segment
Sales
Current liabilities & provisions
FS00
GL Account no.
: 300010
Page 127
Company code
: FSL
Give the Gl A/c No. : 300005 Sales local own goods
Company code
: FSL
Enter
Change short text
: sales Steel
: sales Steel
Select Create/Bank/Interest tab
Field status group
: G029 (revenue)
Save
Valid from
: 01.04.2011
Enter
: 11 Revenues
Save
Give the GL A/c No.
Company code
Give the GL A/c
Company code
Enter
Change short text
Save
: 300011
: FSL
: 300010
: FSL
: sales Cement
: sales Cement

: 11 Revenues
Save
GL A/c No.
: 100550
Company code
: FSL
Give the GL A/c No
: 100505 VAT payable
Company code
: FSL
Enter
Change short text
: Zero balance clearing
: Zero balance clearing
Select create /Bank /Interest tab
: G067 (Reconciliation account)
Save
Page 128
Classify G/L Accounts for document splitting:

Path: SPRO --------- > Financial accounting (new) --------- > General ledger accounting (new)
--------- > Business transactions --------- > Document splitting --------- > Classify G/L accounts
for document splitting
Give your chart of accounts : FSL
Enter
Account from
Account to
100000
299999
300000
399999
400000
499999
Save
Category
01000
30000
20000
Description
Balance sheet account
Revenue
Expense
Define Zero balance clearing account

--------- > Business transactions
--------- > Document splitting --------- > Define Zero balance
clearing account
Select account key : 000
Double click on accounts folder
Chart of Accounts
: FSL
Enter
Give the G/L account : 100550 Zero balance clearing A/c
Save
Activate documents splitting

--------- > Business transactions
--------- > Document splitting --------- > Activate documents
splitting
Select document splitting check box
Save
Page 129
END USER AREA

Posting of sales invoice: (F-22)
: Todays date
Type
: DR
Company code
: FSL
Posting key
: 01
Customer Account
: 3000501
Enter
Amount
: 200000
Business area
: FSLH
Text
: Sales invoice posting
Posting key
: 50
Account
: 300010 Sales Steel
Enter
Amount
: 150000
Text
: +
Select right arrow button for profitability segment
: Steel
Posting key
: 50
Account no.
: 300011 Sales Cement
Enter
Amount
: *
Text
: +
Select right arrow button for profitability Segment
: Cement
Document - --------- > Simulate
From the menu select Document ----- --------- > Simulate General ledger
Select back arrow
Save
Page 130
CAPITAL WORK IN PROGRESS - LINE ITEM SETTELMENT

(ASSET ACCOUNTING AREA)
Capital work in progress line item settlement

Machine purchase
Debit to CWIP Machine no.5
01.09.2011
Freight charges 03.09.2011 On 6-9-2011 the asset commissioned as machine no 5
Commissioning charges
Settle capital work in progress line item wise to machine no 5
6-9-2011
Define settlement profile:
Path: SPRO --------- > Financial accounting
--------- > Asset accounting --------- >
Transactions --------- > Capitalization of assets under construction
--------- > Define /Assign
settlement profiles (TR code is OKO7)
Double click on define settlement profile
Select settlement profile AI( Settlement assets under construction )
Select details folder
: select A1( CO allocation structure)
Default object type
: select FXA asset
Select equivalence numbers check box
Under valid reserves
For fixed assets
: Select settlement required
Document type
: AA (Asset Posting)
Max no. distribution rules
: 999
Residence time
: 12 months
Save
Double click on assign settlement Profile to company code
: FSL
Enter
For company code FSL assign settlement profile AI
Save
Page 131
ENDUSER AREA
Creation of capital work in progress asset master (AS01):
Give the asset class FSL4000 capital work in progress general
Company code
: FSL
Enter
Description
: CWIP -General
Capitalized on
: 01.09.2011
Select time dependent tab
Business area
: FSLH
Select depreciation areas tab
Depreciation key
: 0000 (no depreciation)
Select no depreciation and no entries
Save
Note down the asset no.500001-0
Machinery purchase posting (F-90)
Give the doc .Date & Posting date : 01.09.2011
Type
: KR
Company code
: FSL
Posting key
: 31
Vendor account
: 3900501
Give the amount
: 400000
Business area
: FSLH
Text
: Machinery purchase posting
Posting key
: 70
Account no.
: 500001-0
Transaction type
: 100 External acquisition
Enter
Amount
:*
Text
:+
Freight payment (F-02)
Give the Doc date
Posting date
Type
Company code
Posting key
Account
: 5-9-2011
: 5.09.2011
: SA
: FSL
: 70
: 500001-0
Page 132
Transaction type
: 100
Enter
Give the amount
: 25000
Text
: Freight payment
Posting key
: 50
Account no.
: 200105 SBI current a/c
Enter
Amount
:*
Business area
: FSLH
Text
:+
Creation of machinery master (AS01):
Give the asset class
: FSL 2000 Dept A
Company code
: FSL
Enter
Description
: Machine no.5
Capitalized on
: To days date
Select time dependent tab
Business area
: FSLH
Select depreciation area tab
Depreciation key
: FSL1 5%SLM
Useful life
: 15 years
Period
: 6 months
Ordinary depreciation start date : Todays date
Save
Note: the asset no.200002-0
Settlement of CWIP to machine no.5
Path: Accounting --------- > Financial accounting --------- > Fixed assets --------- > Posting
--------- > Capitalized asset under construction --------- > distribute (Tr code is A1AB)
Company code
: FSL
Asset
: 500001
Sub number
:0
Execute
From the menu select Edit --------- > select --------- > select all (F5)
Select enter button
Category
: select FXA asset
Settlement receiver
: 200002-0
Give the percentage
: 100
Select back arrow
Page 133
Save
Select settlement button (Shift +F8)
Give the asset value date
: 07.09.2011 (Todays date)
Text
: CWIP settlement
Execute
Select simulate button
Go and see the document (FB03)
Enter
Note : In live environment you take a purchase of machinery dont enter directly Asset account,
first enter in Capital Work in Progress after commissioning added all charged convert to asset
accounting.
PRODUCT COSTING
This is used for valuation of inventories i.e. finished goods and Work in progress
PP Module
MM Module
FI Module
CO Module
|
|
|
Product costing
Note: SAP lab : Product costing made easy BPB publication

Create a cost estimate with quantity structure
-Not covered product costing
Product costing
I
Cost element with
Quantity structure
(PP Module is implemented)
Product cost
By order
Cost element with out

Quantity structure
(PP Module is not implemented)
Product costing
I
Product cost
By sales order
Product cost
By period
Page 134
Product cost by order

I
Standard costing (primary costing)
Actual cost (simultaneous costing)
Production valuation will be
In the month end we get actual cost
At standard cost
variances will be settled at accounts
How standard cost will be arrived at :

Sales budget for next month
Production budget
(Make to orders (confirmed orders)

And make to stock (expected orders))
Cost sheet for FSLFG1

Raw materials
Production costs
Cost of goods manufactured (COGM)
Administration Expenses
Salling & Distribution exp.
Cost of goods sold (COGS)
Raw Material requirement

Planning
+
Overhead planning =
Standard cost
xx
xx
xx
xx
xx
xx
---xx
AS2 stock valuation

At COGM level or
COGM + Admin Exp
How Raw material standard cost will be arrived at:

To produce 1kg of FSLFG1
we required FSLRM1
1kg and FSLRM2 - 1kg
PP Module: Bill of Material (BOM)

To produce 1kg of FSLFG1
FSLRM1
1Kg
FSLRM2
1Kg
MM Module : Material Master- accounting view
FSL RM1
Moving AVG price
75.27
FSLRM2
,,
100
Page 135
Raw material standard cost =(Quantity in BOM - PP Module) * (Price from material master MM module)
(1kg * 75.27) + (1kg * 100)= 175.27
Freight charges - where the cost is high when we receive the material it will be added to
material - when we consume automatically proportionate cost is charged.
Expenses like loading and unloading charges where the cost is normal charge to P&L account
and It will be added to material.
Clients will tell us take 5% raw material cost as RM over heads
RM over heads cost =175.25 x 5%=8.76
Production costs:
In co module we have cost centers - in PP module we have work centers - in cost centers we
have planned the costs.
PP work centers
Dept A
Dept B
Dept C
Dept D
Work centers
Dept A
Dept B
Issue RM 1
routing
Issue RM 2
(process flow)
In co cost centers Dept A Dept B Dept C Dept D
Dept D
FSLFG1
Salaries
Wages
Power
400000
200000
120000
------Planned cost
720000
=====
Machineries
100
Working for 3 shifts for 30 days
Machines hours
100 machines * 30 days * 3 shifts (24 Hours )
(activity type)
72000 Hrs.
Machine hour rate 720000/72000=10 Rs
To Produce FSLFG1
5Hrs.
Hours required
Production cost : (Hours required in Dept A * Machine hour rate)+(Hours required in Dept B*
Machine hour rate )+ (Hours required in Dept D * Machine hour rate)
5Hrs * 10 Rs=50 Rs
Eg: allocation of over heads.
Page 136
FSLFG1
FSLFG2
Production Qty
71999Kgs
1 Kg
---------72000
Hrs Req
1
71999
--------72000
Cost
---------720000
If we allocate cost based on production

FSLFG1
FSLFG2
720000*71999/72000=71999
720000*1/72000=
10
-------720000
=====
If we allocate cost based on hours
FSLFG1
FSLFG 2
720000*1/72000
=
10
720000*71999/72000=71999
----------720000
========
Active based costing.
Stock expected
cost
Raw material over heads
175527
8.76
Co -Consultants job:
Standard cost (preliminary costing)
1. Creation of 2 secondary cost elements (Use Tr.code is KA06)
A) RM overhead rate
B) Activity allocation
Controlling area
Enter
Valid from
Enter
Give the name
Description
Save
Cost element
: FSL
: 1100000
: 01.04.2011 to 31.12.9999
: RM Overhead rate
: RM Overhead rate
: Select 41 overhead rates
: 1100001
Page 137
Enter
Name and
Description
Save
: Activity allocation
: Activity allocation
: select 43 Interval activity allocation
Creation of activity type -Machine hour:

Path: Accounting
--------- > cost Center accounting
--------- >
Master data
--------- > Activity type --------- > Individual processing
--------- > create
(Transaction code KL01)
Activity type
: FSL
Enter
Give the Name & Description: Machine hour
Activity unit
: select H
Cost center categories
: Select * (All cost center categories)
Active type category
: select 1 (Manual entry, Manual allocation)
Allocation cost element
: 1100001
Activity price indicator
: 5(actual price, automatically base on activity)
Save
Creation of 2 cost centers: (Tr.code is KS01)
Controlling area
Enter
Name
Description
Save
: Dept G
: Dept A
: FSL
Cost center
Controlling area
Enter
Name
Description
Save
: Dept H
: Dept A
: FSL
: Dept G
: Dept G
: Dept H
: Dept H
: select 9(Allocation cost center)
Create of cost center group (Tr code is KSH1)

Give the cost center group
: FSLPRODN
Page 138
Enter
Description
Select insert cost center button
Select cost center Dept G
Save
: FSL Production cost center group for FSL
Define overhead keys:

Path: SPRO --------- > Controlling --------- > Product cost controlling --------- > Product cost
planning --------- > Basic settings for material costing --------- > overheads --------- > Define
overhead keys
Select new entries
Overhead key
: FSL1
Description
: FSL Overhead key
Save
Define overhead groups
planning --------- > Basic settings for material costing --------- > Define overhead groups
Valuation area
: FSLP
Overhead group
: FSL1
Overhead key
: FSL1
Name of overhead group
: FSL over head group
Save
Define calculation basis
Path: SPRO --------- > Controlling --------- > Product cost controlling
--------- > Product cost
planning --------- > Basic setting for material costing --------- > Over head --------- > costing
sheet components --------- > Define calculation bases
Base
: F1 (Text filed)
Name
: Raw materials
Base
: F2
Name
: Production cost
Save
Page 139
Select Base F1
Double click on details folder
Controlling area
: FSL
Enter
To cost element
: 400099 RM consumption
Save
Select back arrow
Select base F2 Production cost
Controlling area
: FSL
Enter
To cost element
: 400199 Personnel & Manufacturing group
From cost element
To cost element
: 400200
: 400299 manufacturing cost
From cost element

To cost element
: 400500
: 400599 Depreciation a/c
From cost element

Save
: 1100001 Activity allocation
Define percentage overhead rates:

sheet components --------- > Define percentage overhead rates
Overhead rate
: F3
Name
: FSL RM overhead rate
Dependency
: Select D010 Overhead type/Overhead key
Save
Select F3
Page 140

Valid from
To
Controlling area
Overhead type Overhead key
Percentage
01.04.2011 31.03.2011
FSL
Select 2
FSL1
01.04.2011 31.03.2011
FSL
FSL1
10

Define Credits
sheet components --------- > Define Credits
Credit
: F4
Name
: FSL RM credit key
Save
Select
: F4
Controlling area
: FSL
Enter
Valid to
: 31.03.2012
Cost element
: 1100000
RM overhead rate
Fixed percentage
: 100%
Cost center
: Dept H (Allocation cost center)
Save
How Actual over head rate is calculated

1. FSL RM receipt
Inventory RM Local
Dr
500000
500000
2. Loading & Unloading charges

Page 141
Loading & Unloading charges Dr

To Bank
4000 Dept H
4000
3. FSLRM 2 Receipt
Inventory RM local DR
To GR/IR clearing RM local
800000
800000
4. Loading & Unloading charges payment

Lodging & unloading charges DR
To Bank
6000
6000
5. RM Consumption for production Order 1

RM consumption local DR FSLRM1
RM Consumption local DR FSLRM2
To Inventory RM local
To Inventories RM local
6.
40000 Order 1
30000 Order 1
40000
30000
RM consumption for production order 2

RM consumption local DR FSLRM 1
RM Consumption local DR FSLRM2
To inventory RM local
To Inventory RM local
10000 Order 2
20000 Order 2
10000
20000
RM consumption for the month

RM consumption for the month
Lodging & Unloading charges
% on consumption
100000
10000
10% actual overhead rate
Cost center Dept H

Loading & Unloading
Loading & Unloading
RM cost
4000 from Order 1

6000 from Order 2
7000
3000
FSLRM1
FSLRM2
RM over head rate 10%
(Actual 10%)
40000
30000
10000
20000
70000
7000
30000
3000
Page 142
Indirectly we are allocating loading and unloading charges to production orders based on
Raw material consumption values.
Define costing sheets:

--------- > Product
cost planning --------- > Basic setting for material costing --------- > Over head --------- >
Define costing sheets
Costing sheet
: FSL
Description
: FSL Costing Sheet
Save
Select costing sheet FSL
Double click on costing sheet rows folder
Row
Base
10
20
30
40
Save
F1
Overhead
F3
F2
Description
Raw materials
FSLRM over head rate
Product cost
Cost of goods Mfg
From To Row
Credit
10
10
F4
10
30
Assign costing sheet to plant :

planning
--------- > Material cost estimate with quantity structure --------- > Define costing
variants (TR code is OKKN)
Select costing variant PPC1 standard cost
Select valuation variant button
Select create beside valuation variant /plant
In plant
: FSLP
Save
Select back arrow
Select valuation variant
: 001 with plant BILP

Page 143

Select overhead tab
1 Give the costing sheet
2 Give the costing sheet
Save
: FSL costing sheet

: FSL costing sheet
Define cost component structure:

To get the breakup of standard cost we create cost component structure
Path: SPRO --------- > Controlling --------- > Product cost Controlling --------- > Product cost
planning
--------- > Basic settings for material costing
--------- > Define cost component
structure. (OKTZ)
Select cost component structure
: 01
Double click on cost components with attributes folder
Select component structure
: 01 with cost component 10 raw materials
Double click on assignment: Cost component -cost element interval folder
Cost competent structure
: 01
Chart of Accounts
: FSL
From cost element
: 400000
To cost element
: 400099
Cost component
: select 10 RM
Save
Select back arrow
Select cost component structure 01 with cost component 80 Material over head
Double click on assignment: Cost component cost element -Interval folder
Cost component structure
: 01
Chat of Accounts
: FSL
From cost element
: 1100000 RM overhead
Cost component
: 80 Material overhead
Save
Select cost component structure
: 01 with cost component 50 production machine
Double click on assignment: cost component -cost element interval folder
: 01
Chat of Accounts
: FSL
Page 144
From cost element

To cost element
Cost component
: 400100
: 400299
: select 50 production machine
One more
Chat of Accounts
From cost center
To cost center
Cost component
: 01
: FSL
: 400500
: 400599
: 50
One more
: 01
Chat of Accounts
: FSL
From cost element
: 1100001
Cost component
: 50
Save
Double click on cost component structure folder
For cost component structure 01 select active check box
Save
Note: The above procedure is to be followed to 02 also
PP CONSULTANT JOB:
Define MRP controller:
Path: SPRO --------- > Production
--------- > material requirements Planning
Master data --------- > Define MRP controllers
--------- >

Plant
: FSLP
MRP controller
: Mr.A
Save
Define floats (Scheduling margin key)
Floats -Buffer days or grace days
Production order creation
Production order release
Production start date
Production end date
12.09.2011
13.09.2011
14.09.2011
24.09.2011
2 days
2 days
2 days
2 days
Page 145

--------- > Material requirements planning
--------- >
Planning
--------- > Scheduling and capacity parameters
--------- > Define floats
(Scheduling margin key)
Plant
Margin key
Opening period
Float before production
Float after production
Release period
Save
: FSLP
: FSL
: 2 days
: 2 days
: 2 days
: 2 days
Define production scheduler

Path: SPRO --------- > Production --------- > Shop floor control --------- > Master data --------> Define production scheduler
Plant
: FSLP
Production scheduler : B
Description
: Mr.B
Save
Determine person responsible for work center
--------- > Basic data
--------- > Work center
General data --------- > Determination person responsible
Plant
: FSLP
Responsible person : Mr.C
Person responsible for work center : Mr.C
Save
--------- >
CO END USER AREA:

Planning cost center wise (KP06)
Version
From period
To period
Fiscal year
:0
: 6 (September)
: 6 (September)
: 2011
Page 146

: Dept G
Select page down button or next page button
Cost element
: 400100 Salaries A/c
Select from based radio button
Select overview screen button (F5)
Plant fixed cost
: 720000
Save
Planning for machine hours

Path: Accounting
Planning --------- > Activity output /Prices --------- > Change (KP26)
--------- >
Version
:0
From period
:6
To period
:6
Fiscal year
: 2011
Cost center
: Dept G
Activity type
: FSL
Plant activity
: 72000
Save
Calculation of Machine hour rate

Path: Accounting
Planning --------- > Allocations --------- > Price calculation (KSPI)
--------- >
Select cost center group radio button

Cost center group select
: FSLPROD
Execute
Select save button
MM END USER AREA
Creation of material master (MM01)
Give the material
: FSLRM2
Page 147
Industry sector
: Mechanical Engineering
Material type
: Raw material
Press select view button
Select basic data1, Select purchasing Select general plant data /storage1/Accounting1,Costing1
Select organization levels button
Plant
: FSLP
Storage location
: Hyderabad
Enter
Give the description : Raw material 2
Base unit of measurement : KG
Division
: FS
Material group
: FSLC
Select purchasing tab
Purchasing group
: FSL
Select accounting 1 tab
Valuation class
: FSL1
Price control
: select V moving
Moving price
: 100
Save
One more material : FSLFG1
Industry section
: Mechanical engineering
Material type
: Finished product
Press select view button
Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1,
accounting , Costing 1
Enter
Plant
: FSLP
Storage location
: Hyderabad
Enter
Description
: Finished product 1
Base unit measurement : KG
Division
: FS
Select MRP1 tab
MRP type
: select PD (MRP)
MRP controller
:A
Lot size
: select EX lot for - lot order quantity
Select MRP 2 tab
In -house production : 0 days
Page 148
Schedule margin key : select FSL

Select MPR 3 tab
Availability check
: select KP (no check )
Select work scheduling tab
Production scheduler : B
Select accounting tab
Valuation class
: FSL2 Finished products
Price control
: S (Standard price)
Standard price
: 350
Overhead group
: select FSL1
Save
PP END USER AREA
Creation of Bill of Material
Path: Logistics --------- > Production --------- > Master data --------- > Bills of material
-------- > Bill of material --------- > Material BOM --------- > Create (CS01)
Give the material

: FSLFG1
Plant
: FSLP
BOM usage
: select 1 production
Enter
For item 10 give the component FSLRM1
Quantity
:1
Item 20 FSLRM2
: 1kg
Save
Creation of work center
Path: Logistics --------- > Production --------- > Master data
----- > Work centers --------- > create (CR01)
--------- > Work centers
----
Plant
: FSLP
Work center
: Dept G
Work center category
: select 0001 Machine
Select basic data button
Give the description
: Dept G
Person responsible
: Mr.C
Usage
: 009
Under standard value maintenance
Page 149
Standard value key

Select costing tab
Start date
Cost center
For activity
Activity type
Activity unit
Formula key
Save
: SAP1 Normal production

: 01.04.2011
: Dept G
: Machine
: FSL
: H (Hour)
: SAP002 (Production machine time)
Create routings
Path: Logistics --------- > Production --------- > Master data --------- > Routings
> Routings --------- > Standard routings --------- > Create (Tr code is CA01)
Give the material
Plant
Enter
Usage
Status
Select operation button
For operation tab work center
Control key
Double click on operation 10
Machine standard value
Unit
Save
---------
: FSLFG1
: FSLP
: select 1 production
: select 4 (released (general))
: Dept G
: select PP01 in hour production
:5
: H (Hour)
CO -END USER AREA

Creation of cost estimate with quantity structure:
Path: Accounting
--------- > Product cost controlling
--------- >
Product cost planning --------- > Material costing
--------- > cost estimate with quantity
structure -Create (Tr code is CK11N)
Give the material
Plant
Costing variant
Enter
Costing date from
Costing date to
: FSLFG1
: FSLP
: select PPC1 (standard cost estimate for material )
: Todays date
: 30.09.2011(month end)
Page 150
Quantity structure date

: 10.09.2011
Valuation date
: 10.09.2011
Enter
From the menu select Costs ->Display cost components
Enter
Marking and releasing
Marking updates future price
In live environment we do estimate for Oct and store in the system for Oct
Releasing updates current price
On 1st of Oct - release - from that day onwards our production value will be taken with new
rates in training institute we do marking and releasing today i.e. from 10th of Sep
Path: Accounting
--------- >
Product cost planning --------- > material costing --------- > Price update (CK24)
Posting period
:6
Fiscal year
: 2011
Company code
: FSL
Plant
: FSLP
Material
: FSLFG1
Select test run check box
Select marking allowance button
Select company code
: FSL
Costing variant
: select PPC1
(Standard cost estimate for materials)
Save
Select back arrow
Execute
Select material FSLFG1
Select costing to tab
Select release button
Execute
Select material
: FSLFG1
Select costing to tab
ACTUAL COSTING
CO consultant Job
Maintain version:
Page 151
Path: SPRO --------- > Controlling --- --------- > General controlling -- --------- > Organization ------ --------- > Maintain version
Select version 0
Double click on settings for each fiscal year
Controlling area
: FSL
Enter
Select year 2011
Exchange rate type
:M
Select price calculation tab
Plan method
: Periodic price
Actual methods
: Periodic Price
Revaluation
: Original business transactions
Cost component structure : 01 product costing
Save
Assign costing sheet to plan order and actual order:
--------- > Product cost controlling --------- > Cost object
controlling
--------- > product cost by order
--------- > Manufacturing orders
--------- >
Check costing variants for manufacturing orders (PP) (Tr.code is 0PL1)
Select costing variant PPP1 Production order plan
Select create button beside valuation variant /plant
In plant
: FSLP
Save
Select back arrow
Select valuation variant
: 006 with plant FSLP
Select overhead tab
Give the costing sheet
: FSL costing sheet
Save
Select back arrow
Select costing variant PPP2 production Order Actual
Select create button beside valuation variant/plant
Page 152
In plant
: FSLP
Save
Select back arrow
Select valuation variant 007 with plant : FSLP
Select overhead tab
Costing sheet
: select FSL costing sheet
Save
Define goods received valuation for order delivery:
controlling
--------- > product cost by order
--------- > Manufacturing orders
--------- >
Define goods received valuation for order delivery
Valuation area
: FSLP
Valuation variant
: 007 production order -Actual
Save
Work in process customization
Dept A Dept B Dept D
Issue RM1
Issue RM2
issue Rm incurred
Over heads
we get FGFSLFG1
production not received during the month
Profit & Loss a/c

RM consumption
Debit
Nor credit for P&L a/c
Expenditure
Debit
Expenditure in all the work centers will be taken as work in process actual costs
Entry
Work in process
Dr
Balance sheet a/c
To Inc/ Dec in WIP
P&L a/c
RM consumption
Expenditure
P&L a/c
Debit
Debit
Inc/Dec in WIP credit
No Profit / No Loss
Creation of GL Masters (FS00):
GL account
: 200123
Page 153

GL account
: 200121 (Inv RMLCL)
Enter
Short text
: INC/DEC in stock WIP
GL Long text
: INC/DEC in stock WIP
Save
GL account
: 300201
GL account
: 300200
Enter
Short text
: Work in process
GL Long text
: Work in process
Save
Creation of 7 secondary cost elements (Tr code is KA06)
Valid from
Enter
Name & Description
Save
Cost element
Reference cost element
Controlling area
Enter & Save
Cost element
Controlling area
Enter & Save
Cost element
Controlling area
Enter & Save
Cost element
Controlling area
Enter
Save
Cost element
Controlling area
Enter
: 1200000
: 01.04.2011
: Order /Project result analysis
: select 31 (order /project results analysis)
: 1200001
: 1200000
: FSL
: 1200002
: 1200000
: FSL
: 1200003
: 1200000
: FSL
: 1200004
: 1200000
: FSL
: 1200005
: 1200000
: FSL
Page 154
Save
Cost element
Controlling area
Enter
Save
: 1200006
: 1200000
: FSL
Define results analysis keys:

--------- > Cost object
controlling --------- > Product cost by order --------- > Period end closing --------- > Work
in process --------- > Define results --------- > Analysis keys (Tr code is OKG1)
Result analysis key
Description
: FERT
: WIP calculation for production orders
Define results analysis versions(Tr code OKG9)

in process --------- > Define results analysis versions(Tr code OKG9)
Select controlling area FSL
Technical result analysis cost element: select 1200000
Save
Define valuation method (Actual cost) ( Tr code is OKGC)
in process --------- > Define valuation method (Actual cost) ( Tr code is OKGC)
Select actual cost button
Controlling area
: FSL
Result analysis version: 0
Result analysis key : FERT
Enter & Save
Define line Ids
To get the breakup of WIP (Work In Progress)value line Ids are required.
Page 155

in process --------- > Define line Ids
Select line ID EL (Revenues)
EK
Direct cost
GK
Over head
FK
Production cost and
ABR settled cost for controlling area 1000
Select copy as button (F6)
Change the controlling area 1000to FSL for all line IDs
Enter & Save
Define Assignment (OKGB)
in process --------- > Define Assignment
For EL i.e Revenues
300000 - 399999
For EK i.e. Direct costs
400000 - 400099
For GK i.e. Overhead rate
1100000
For FK i.e. Production costs
assign 00003+++++
assign 00004000++
assign 0001100000
Personnel
400100 - 400199
assign 00004001++
Manufacturing
400200 - 400299
assign 00004002++
Depreciation
400500 - 400599
assign 00004005++
Activity allocation
1100001
assign 0001100001
For ABR i.e. Settled cost 1000001
assign 0001000001
Select line ID EL i.e. Revenues for Co.area 1000
Change the Co.area to FSL
Change masked cost element to 00003+++++ (5 times plus)
Enter & Save
The same procedure is to be followed by copying all IDs
Define update; (Tr.code is OKGA)
in process --------- > Define update
Controlling area
: FSL
Page 156
Version
:0
Line ID
: select EL revenues
Category
: select N (costs not to be included)
Controlling area
: FSL
Version
:0
Line ID
: Select EK (Direct cost)
Category
: select K cost
WIP
: 1200001
Revenues
: 1200002
Controlling area
: FSL
Version
:0
Revenues analysis key : FERT
Line ID
: GK over head
Category
: select K cost
WIP creation
: 1200003
Reserves creation
: 1200004
Select page down button
One more controlling area : FSL
Version
:0
Line ID
: FK
Category
: select A (Settled cost )
WIP creation
: 1200005
Reserves creation
: 1200006
Controlling area
: FSL
Version
:0
RA Key
: FERT
LID
: ABR
Category
: A settled cost
Save
Define posting result for setting work in process:
in process --------- > Define posting results for setting work in process (OKG8)
Controlling area
: FSL
Company code
: FSL
Result analysis version
: select 0
Result analysis category
: WIPR (Work in Process with requirement to Capitalized)
Page 157
P & L A/c
: 300201
Balance sheet
: 200123
Save
Define results analysis version (OKG9)
in process --------- > Define results analysis version
Select controlling area FSL
select details button
Select transfer to Financial accounting check box
Save
Variance calculation
Define variance keys:
controlling
--------- > Product cost by order
--------- > Period end closing
--------- >
Variance calculation --------- > Define variance keys (OKV1)
Select variance key 00001 Production order
Change the variance key to FSL1
Change the name also variance key for FSL
Enter & Save
Define default variance keys for plants (OKVW)
controlling
--------- > Product cost by order
--------- > Period end closing
--------- >
Variance calculation --------- > Define default variance keys for plants
Give the plant
: FSLP
Enter
Assign variance key : FSL1
Save
Define target cost version: (OKV6)
Page 158
Notes:
Budgeted cost =Budgeted production Qty
Standard price
Standard cost =Standard quantity * Standard price

Target cost =Actual production qty *
Actual cost =Actual Production *
standard price
actual price
Path: SPRO-Controlling --------- > Product cost controlling --------- > Cost object controlling
--------- > Product cost by order --------- > Period end closing --------- > Variance calculation
--------- > Define target cost version
Select controlling area 1000 with target cost version 0
Change the controlling area to FSL
Change the description to target cost version for FSL
Enter & Save
Assign variance key in Material master:
Path: Logistics
--------- > Material management --------- > Material master
Material --------- > Change --------- > Immediately (MM02)
Give the material no
Select costing 1 view
Enter
Give the plant
Enter
Variance key
Save
--------- >
: FSLFG1
: FSLP
: select FSL1
Settlement customization:
Creation of cost element group (KAH1)
Give the cost element group : FSLPRODN
Enter
Description
: Production cost element for FSL
Select Edit-Cost element -Select insert cost element button
From C.E
To C.E
400000
400099
Page 159
400100
400500
1100000
Save
400199
400599
1100001
Create allocation structure:

controlling
--------- > Product cost by order --------- > Period end closing
--------- >
Settlement --------- > Create PA transfer structure
Select structure E1 PA settlement, production variances
Double click on assignment line folder
Enter
Select assignment 20 price variance
Cost element group
: FSLPRODN
Select variance on production orders radio button
Variance category
: PRIV (Input price variance)
Quantity / Values
: select Value field
Fixed / Variable
: Select 1
Value field
: VV140
Save
Press enter save in your request
Select assignment 30 quantity variance material
Cost element group
: FSLPRODN
Variance category
: QTYV (Input price variance)
Quantity / Values
Fixed / Variable
: Select 3
Value field
: VV140
Save
Select assignment 50 quantity variance material
Cost element group
: FSLPRODN
Page 160

Variance category
: INPV (remaining input variances)
Quantity / Values
Fixed / Variable
: Select 3
Value field
: VV140
Save
Create settlement profile:

controlling
--------- > Product cost by order --------- > Period end closing
--------- >
Settlement --------- > Create settlement profile
Select settlement profile PP)1 production order
: A1
PA transfer structure
: E1
Select equivalence number check box
Select variance to costing - based Pro.a check box
Under valid receivers for
GL account
: Select settlement optional
Document type
: SA
Maximum no.of distribution rules : 3
Residence time
:3
Save
Define CO.No.range interval for the business transactions :
RKL
Actual Activity Allocation
KZP Actual overhead (Periodic)
KSII
Actual Price calculation
User transactions code : KANK
: FSL
Double click on KZPI, KSII and RKL
Select Co. No. range interval for FSL check box
From the menu select Edit -Assign element group
Save
Page 161

Define exchange rate for type P (Standard truncation for cost planning for INR to EURO
(Transactions code OB08)
Exchange rate type
:P
Valid from
: 01.12.2011
From currency
: INR
To currency
: EUR
Direct quotation
: 0.02
Save
FI Consultant job
Raw material FSLRM2 receipt
I
Purchase order
By way of Opening stock
Creation
Inventory RM Local Dr
|
To Stock taking
Goods Receipt
|
Invoice verification
Production order variance to settle to accounts
Production order differences Dr
To INC/DEC in stocks FG
Creation of GL masters (FS00)

Give the GL A/c No : 100599
Company code
: FSL
Company code
: FSL
Enter
Chang short text and GL account long text to Stock taking
Select create /bank/Interest tab
Change the field status group G049 (manufacturing cost accounts)
Save
GL A/c No.
: 400201
Page 162
Company code
: FSL
Company code
: FSL
Enter
Account group
: Manufacturing cost
Select type /Description tab
Change short text and GL account long text to production order differences
Field status group change to G014 MM adjustment account
Save
: 300200 INC/DEC stock in FG
Company code
: FSL
: select 22 external settlement
Save
Assignment of account for automatic postings (OBYC)
Double click on transaction PRD Cost (Price) differences
Give the Chart of Accounts : FSL
Enter
Save
Valuation modifier : X
Valuation class
: FSL2
Account no.
: 400201
Save
Select back arrow
Double click on transaction GBB offsetting entry for Inventory posting
General modification : AUA production
Valuation class
: FSL2
Account
: 300200
General modification : BSA
Account no.
: 100599
Save
Page 163
PP CONSULTANTS AREA
To check order type
Path: SPRO --------- > Production --------- > Shop floor control --------- > Master data
--- > Order --------- > Define order type
Select order type PP01 standard production order
Settlement profile
: PP01
Save
Define order type dependent parameters:
Path: SPRO --------- > Production --------- > Shop floor control --------- > Master data
--- > Order --------- > Define order type dependent parameters (Tr code is OPL8)
------
------
Select order type PP01 for plant 1000

Plant
: FSLP
Enter and save
Save request
Define scheduling parameters for production orders:
Path: SPRO --------- > Production --------- > Shop floor control --------- > Operations --------> Scheduling
--------- > Define scheduling parameters for production orders (Tr code is
OPU3)
Plant
: FSLP
Enter and save
Define confirmation parameters

Path: SPRO --------- > Production --------- > Shop floor control --------- > Operations -------- > Confirmation --------- > Define confirmation parameters (OPK4)
Plant
: FSLP
Enter and save
Page 164
Define checking control

Path: SPRO --------- > Production --------- > Shop floor control --------- > Operations
--- > Availability check --------- > define checking control (OPJK)
------
Select business function

: 1 & 2 for order type PP01 for plant 1000
Plant
: FSLP
Enter
Plant
: FSLP
Enter and save
END USER AREA
Creation of production order:
Path: Logistics
--------- > Production --------- > Shop floor control --------- > Order
> Create --------- > with material (Tr code is CO01)
Give the material
: FSLFG1
Production plant
: FSLP
Planning plant
: FSLP
Order type
: select PP01 Production order
Enter
Total Qty
: 10
Start
: Todays date
Finished date
: todays date
Select cost order button (Ctrl+F7)
From the menu select Goto - --------- > Costs -------- > Analysis
Select back arrow
Select release order button (Ctrl+F1)
Save
Order no.60003245
---------
Raw material receipt by way of opening stock

Path: Logistics --------- > Materials management --------- > Inventory management
-- > goods movement --------- > Goods receipt --------- > other (Tr code is MBIC)
Give the movement type
Plant
storage location
-------
: 561
: FSLP
: HYD
Page 165
Enter
Give the material no.
: FSLRM2
Quantity
: 1000 kgs
From the menu select other goods receipts - --------- > display
Enter
Inventory RM LCL 100000 FSLRM2
FSL1 BSX
Stock taking
100000 FSLRM2
FSL1 GBB BSA
Qty * material
1000*100 rs
Raw material issue to production order: (Tr code is MB1A)
Select to order button
Order
: 60003245
Enter
FSL RM1
Qty
: 15
FSL RM2
Qty
: 15
Save
From the menu select goods issue - --------- > display
Double click on accounting document no.
200121
Inventory RM local
400000
RM consumption local 1129.03 FSLRM1
200121
Inventory RM local 1500 FSLRM2
400000
1129.03 FSLRM1
RM consumption local 1500 FSLRM2

Qty consumed * Moving Avg. rate
Actual RM over head rate calculation Co end user
RM cost
2629.03
RM over head rate 10%
262.90
BSX
FSL1
GBB
FSL1
BSX
FSL1
GBB
FSL1
VBR
VBR
Actual overhead calculation

Path: Accounting --------- > Controlling --------- > Product cost controlling --------- > Cost
object controlling --------- > product cost by order --------- > Period end closing --------- >
single functions --------- > Overhead --------- > Individual processing (Tr code is KGI2)
Page 166
Give the order no.

: 60003245
Period
:6
Fiscal year
: 2011
Select text check box
Select dialog display check box
Execute
Select back arrow
Execute
Work in process calculation
single functions
--------- > Work in process
--------- >
Calculate (Tr code is KKAX)
Give the over no.
: 60003245
WIP period
:6
Fiscal year
: 2011
Result analysis version: select 0
Execute
Settlement of work in process to accounts (co enduser area)
single functions --------- > Settlement of individual processing (Tr code is K088)
Give the order no.
: 60003245
Settlement period
:6
Fiscal year
: 2011
Select check transaction date check box
Execute
Select detail lists button
To view work in process report
Path: Accounting
object controlling
--------- > Controlling --------- > Product cost controlling --------- > Cost
--------- > Product cost by order --------- > Information system ---------
Page 167
> Reports for product cost by order

is S_ALR_87013127)
Plant
Material number
From period
To Period
Execute
Select report call button
--------- > Object list
: FSLP
: FSLFG1
: 01
2011
:6
2011
Confirmation of production order

Path: Logistics --------- > Production
--------- > Enter --------- > For operation
Give the order no.
Operation /Activity
Confirmation type
Yield to confirm
Activity 2
Unit
Save
--------- > Order selection (Tr code
--------- > shop floor control --------- > Confirmation

--------- > time ticket (Tr code is Co11N)
: 60003245
: 10 kg
: select final confirmation
: 10 kg
: 60 Qty
: H (Hour)
Production receipt
Path: Logistics
--------- > Production
--------- > shop floor control
movement --------- > Goods receipt (Tr code is MB31)
--------- > Goods
Give document date

: 30.09.2011
Posting date
: 30.09.2011
Give the movement type
: 101 (Goods receipt for order into ware house)
Order
: 60003245
Plant
: FSLP
Storage location
: HYD
Enter
From the menu select Goods receipt - --------- > Display
Enter
BSX
Page 168
200122
Inventory FG
2337.50
FSLFG1
FSL2
300200
INC/DEC in stocks FG 2337.50

Qty produced * standard rate
10*233.75
FSLFG1
GBB
FSL2
AUF
Fi enduser area
Salaries posting(F-02):
Document date
: 30-9-2011
Posting date
: 30-9-2011
Type
: SA
Company code
: FSL
Account
: 400100
Enter
Amount
: 9000
Cost center
: Dept G
Text
: Salaries posting
PSTKY
: 50
Account
: 200105
Enter
Amount
:*
Business area
: FSLH
Text
:+
Document --------- > Simulate and Save.
Acutual activity price calculation: (co end user area)
Path: Accounting --------- > Controlling --------- > Cost Center accounting --------- > Period end
closing -------- > Single functions --------- > Price calculations (KSII)
Cost center group
: FSLPRODN
Execute
Save
Revaluation at actual price: (co end user area)
Path: SPRO ------- > Controlling --------- > Product cost controlling --------- > Cost object
controlling --------- > Product cost by order ---------- > Period --------- > End closing --------- >
single functions ----------- > Revaluation at actual prices --------- > Individual processing (MFN1)
Order
: 60003245
Period
:6
Page 169
Year
: 2011
Execute
Select next list level button
To make order technically complete: (PP end user area) (TECO)
Tr code C002
Order
: 60003245
Enter
From the menu bar select Functions ---------- > Restrict processing ---------- > Technically
complete
Save
Calculation of variances
Path: Accounting
--------- > Controlling --------- > Product cost controlling
--------- > Cost
object controlling --------- > Product cost by order --------- > period ending closing --------> single functions --------- > Variances --------- > Individual processing (Tr code is KKS2)
Give the order no
: 60003245
Period
:6
Fiscal year
: 2011
Double click on variance amount
Open one more session with (CO03)
Give the order no
: 60003245
Enter
From the menu select go to - --------- > cost --------- > analysis
Press select layout button
Select layout 1 SAP02 cost trend
Settlement of variance to accounts: (co end user area)
In SEP we have taken WIP
In SEP also we have taken production
i) Calculation work in process once again KKAX work in process will be zero
ii) Settlement of work in process to accounts KO88
a) Work in process entry will be reversed
b) Variance will be settled to accounts
Page 170
Calculation of work in process (KKAX)

Path: Upto single functions same path
processing --------- > Calculate
--------- > Work in Progress
--------- > Individual
Give the order no.

: 60003245
WIP to Period
:6
Fiscal year
: 2011
Result analysis version: 0
Execute
Settlement of work in process to accounts : KO88
Give the order no.
: 60003245
Settlement period
:6
Fiscal year
: 2011
Execute
Select details list button
300200
INC/DEC in stocks FG 9554.43 FSLFG1
400201
300201
200123
Production order diff 9554.43 FSLFG1

INC/DEC in stock WIP 2891.93 P & L debit
work in process 2891.93 -Balance sheet credit
GBB
FSL2
PRD
FSL2
AUA
Page 171

Co

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CONTROLLING (CO)

primary cost elements

Internal orders: This is used to view costs for specific task.

Product Costing: This is used for valuation if inventories

Profitability analysis: This is used to view profitability for number of parameters at a

CO. Organization Structure

MAINTAIN CONTROLLING AREA:

Double click maintain controlling area.

Double click on assignment of company codes folder

1 fi document will be generated

Business transaction COIN

IN F-02 screen we post Manual posting

1. Repost Co line items (Business transaction -RKU3)

cost centers common

repost co line item

2 Documents will be generated

Total documents generated

Transfer Line item wise

cost centers common

cost center Dept A

Report costs (Business transactions - RKU1)

400101 wages 200000

Planning primary costs (Business transaction RKP1)

Select Co.No.range interval for VSL check box

After wards we can compare actual with

--------- > Controlling

--------- > General controlling

Select version 0 (Plant /actual version)

1. Primary cost element

2 Secondary cost elements

B) Postings to secondary cost elements are

COST ELEMENT CATEGORIES

PRIMARY COST ELEMENT CATEGORIES:

SAP has given 4 allocation methods

2. Display cost elements created

He will inform to Co person to create that account as cost element.

Execute batch input session (Tr code is SM35)

Assign new field status group in GL expenditure accounts (FS00)

- create A cost center group and

Give the cost center group

Creation of cost Element group:

In Co we want to see Dept A

Personnel cost 400100-400199

Admin cost or Dept B

Administration and assign cost elements

Administration cost 400300-400399

Exchange rate type

One more expenditure

Keep the cursor on salaries line item

Report co line items:

500000 Ctc Dept A

002 400300 Rent Dr

Repot costs (Business transaction RKU1)

C) Transaction which effect To open

--------- > cost center accounting

Give the controlling area

To view variance report cost center wise

ONLINE RECONCILIATION LEDGER or REAL TIME INTEGRATION OF CONTROLLING WITH

Controlling area FSL

Posting of salaries in company code FSL:

Company code FCL FI records:

To view company code FSL ledger

To view company code FCL ledger