CO Integrated Training Program

(Version 16-1)

Trainer & Author:

Srinivas Kasireddy
91-9959765211
Skype : srinivas3d

Date printed

: 5 November 2016

File Name : 335926579.doc

Srinivas Kasireddy

Srinivasa

Kasireddy +91-9959765211

Book- 1 / 2

Srinivasa

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Table of Contents:
1.

CO -Basic Settings......................................................................................... 19

2.

1.

Copy comp code....................................................................................... 19

2.

Maintain Controlling Area............................................................................. 19

3.

Cost Centre Standard Hierarchy...................................................................22

4.

Maintain Versions....................................................................................... 22

Cost Centre Accounting................................................................................. 24

Relationship between Profit centre & Cost centre..................................................24
1.

Settings...................................................................................................... 25
1.

Maintain Number Ranges for Controlling Document........................................25

2.

Creation of Primary Cost Element.................................................................26

3.

Display Cost Elements................................................................................ 28

4.

Creation of FSG (Cost Centre required).........................................................28

5.

Assign New FSG in Expenses G/L Account....................................................28

6.

Creation of Cost Centre............................................................................... 29

7.

Creation CC Groups................................................................................... 30

8.

Creation of CE groups................................................................................. 31

2.

3.

End User:.................................................................................................... 31
1.

Posting of transaction in FI...........................................................................31

2.

Display CC Report...................................................................................... 32

3.

Display CO Document................................................................................. 34

4.

Repost CO Line item................................................................................... 34

5.

Display Cost Center Report.........................................................................35

6.

Creating Common Cost center.....................................................................35

7.

Posting to Common Cost center...................................................................36

8.

Repost Costs:............................................................................................ 36

9.

Display Cost Center Report.........................................................................37

10.

(Cross company code cost accoitng with difrent FYV from COrea).................38

11.

Period Lock............................................................................................ 38

12.

Planning Cost Centre wise........................................................................38

13.

Display Variance report............................................................................ 40

Allocations..................................................................................................... 41
1.

Cost Center relatioships:............................................................................. 42

2.

Assesment................................................................................................ 42

4.

3.

Periodic Reposting :.................................................................................... 42

4.

Distribution:............................................................................................... 43

5.

Indirect activity allocation:............................................................................ 43

6.

Direct activity allocation:.............................................................................. 43

Allocation by Assessment using SKF.............................................................45

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1.

Settings...................................................................................................... 46
1.

Create Cost Centre..................................................................................... 46

2.

Create No. Ranges interval for Business transaction RKS RKIU........................46

3.

Create SKF............................................................................................... 46

4.

Enter SKF................................................................................................. 47

5.

Allocation method (Assessment Method):......................................................47

1.

Creation of secondary cost element..............................................................47

2.

Creation of Assessment Cycle......................................................................47

1.

5.

Enduser...................................................................................................... 50
1.

Posting of Rent & Salary in CC 1004............................................................50

2.

Execution of Assessment cycle (Month end activity)........................................50

3.

Cost Centre Report..................................................................................... 51

Allocation by Distribution.............................................................................. 52
2.

Settings...................................................................................................... 52
1.

Create Cost Centre..................................................................................... 52

2.

Create GL account/cost element Vehicle maintenance.....................................53

3.

Create No. Ranges interval for Business transaction RKIV..............................53

4.

Create SKF (already done)..........................................................................53

5.

Enter SKF ((already done))..........................................................................54

6.

Allocation method (Distribution):...................................................................54

1.

Creation of Distribution Cycle.......................................................................54

2.

6.

Enduser...................................................................................................... 57
4.

Posting of Rent , Salary ,Veh maintanance in CC 1011...................................57

5.

Execution of Distribution cycle (Month end)..................................................57

6.

Cost Centre Report..................................................................................... 58

Allocation by Periodic Reposting....................................................................59

1.

Settings...................................................................................................... 59
1.

Create Cost Centre..................................................................................... 59

2.

Create GLa/c & cost element Elec Charges....................................................60

3.

Create No. Ranges interval for Business transaction RKIB..............................60

3

4.

Create SKF............................................................................................... 60

5.

Allocation method (Periodic Reposting):.........................................................60

1.

Creation of Periodic Reposting cycle.............................................................60

3.

Enduser...................................................................................................... 62
7.

Posting of Rent , Elc bills , in CC 1006..........................................................62

8.

Enter SKF (Month end)............................................................................... 62

9.

Execution of Periodic reposting cycle (month end).........................................63

10.
7.

Cost Centre Report.................................................................................. 63

Indirect Activity Allocation using SKF..........................................................64

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Splitting :......................................................................................................... 64
Actual activity valuation :.................................................................................... 64
Settings for price calculation ,revaluation and cost component structure :.................64
1.

Settings...................................................................................................... 66
1.

Create Cost Centre..................................................................................... 66

2.

Create No. Ranges interval for Business transaction RKL , RKN, KSI0,KSII........66

3.

Create SKF............................................................................................... 66

4.

Creation of secondary cost element..............................................................67

5.

Creating Activity Type Testing hours-Manual...................................................67

6.

Creation of secondary cost element..............................................................68

7.

Creating Activity Type Testing hours-Automated..............................................68

8.

Creating Cost Element Group.......................................................................69

9.

Creating Activity Type Group.......................................................................70

10.

Define Splitting Structure..........................................................................70

11.

Assign Splitting Structure to Cost Centers...................................................71

12.

Define Cost Component Structure.............................................................72

13.

Change Revaluation/Price calculation/Cost comp Structure settings in Version 0

73

14.

Allocation method (Indirect Activity Allocation):.............................................74

1.
2.

Creation of Indirect Activity Allocation Cycle...................................................74

Enduser...................................................................................................... 76

1.

CC Planning.............................................................................................. 76

2.

Activity planning for TSHRA/ TSHRM............................................................76

3.

Splitting (Planned cost)............................................................................... 77

4.

Calculating Activity Price(planned) for TSHRA................................................78

Display primary cost component split :................................................................78

Select a line Goto menuComponents...........................................................78
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8.

5.

Report to display Cost Component Split for Activity type...................................78

6.

Enter SKF................................................................................................. 79

7.

Posting of Rent & Salary in CC 1009............................................................79

8.

Sender activities for TSHRA.........................................................................79

9.

Indirect Activity Allocation............................................................................ 79

10.

Cost Centre Report.................................................................................. 81

11.

Splitting(Actual)....................................................................................... 81

12.

Price Calculation(Actual)..........................................................................82

13.

Cost Centre Report.................................................................................. 82

Direct Activity Allocation............................................................................... 84

1.

Settings...................................................................................................... 84
1.

Create Cost Centre..................................................................................... 84

2.

Creation of secondary cost element..............................................................85

3.

Creating Activity Type Maintenance hours......................................................85

4.

Create No. Ranges interval for Business transaction RKL................................86

2.

9.

Enduser...................................................................................................... 86
1.

Posting of Rent & Salary in CC 1008............................................................86

2.

Cost Centre Report..................................................................................... 86

3.

Set Activity price(planned) manually..............................................................86

4.

Direct Activity Allocation............................................................................... 87

5.

Cost Centre Report..................................................................................... 87

6.

Price Calculation........................................................................................ 88

7.

Cost Centre Report..................................................................................... 88

Template Allocation....................................................................................... 89
1.

Settings...................................................................................................... 89
1.

Srinivasa

10.

Define Environments and Function Trees.......................................................89

Internal Orders(I.O).................................................................................... 90

1.

Settings...................................................................................................... 91
1.

Creation of internal Order Types...................................................................91

2.

Creation of FS Group.................................................................................. 92

3.

Creation of Tel expenses A/C......................................................................92

4.

Creation of Internal order............................................................................. 93

5.

Creation of IO group................................................................................... 93

2.

End User..................................................................................................... 94
1.

Posting Telephone Expenses.......................................................................94

2.

Display IO Report....................................................................................... 94
5

3.

Planning order wise.................................................................................... 94

4.

Display Variance Reports............................................................................. 95

11.

Real IO with settlemtnt to CC.....................................................................96

12.

Schedule Manager...................................................................................... 97

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1.

Settings...................................................................................................... 97
1.

Defining Selection Variables.........................................................................97

2.

Maintain Standard Settings for workflow........................................................97

3.

Flow Definition........................................................................................... 98

4.

Specify selction variables in the program variants...........................................98

13.

Real Time Integration (New GL)................................................................100

1.

Settings :.................................................................................................. 100

1.

Create second company code ie LAC..........................................................100

2.

Assign Co-Area........................................................................................ 101

3.

Activate CoCd Validation in Co-Area...........................................................101

4.

Deactivate Reconcilition Ledger:.................................................................101

5.

Creation of Cost Center in Comapany code LAC:..........................................102

6.

Activate intercompany postings in doc type SA...........................................102

7.

Creation of GL accounts in LAP:.................................................................103

8.

Creation of GL accounts in LAC:.................................................................103

9.

Define Variants for Real time Integration:.....................................................104

10.

Assign Varaints for Real-Time Integration to Company Codes:.....................104

11.

Define Intercompany Clearing Accounts:...................................................104

12.

Define Account determination for Real-Time Integration:.............................106

2.

Enduser.................................................................................................... 107
1.

Posting expenses to common CC (1004).....................................................107

2.

Reposing of Costs:................................................................................... 107

3.

Displaying CO document:..........................................................................107

14.

Sales/Purchase Tax................................................................................... 109

3.

Settings.................................................................................................... 109
1.

Define Tax procedure:............................................................................... 109

2.

Assign Country to Calculation procedure :...................................................109

3.

Define Tax Codes for Sales and Purchases..................................................110

4.

Creation of 2 GL accounts.........................................................................111

5.

Change GL accounts Sales, Inventory RM...................................................112

6.

Define Tax acounts................................................................................... 112

7.

Define Tax Determination Rules..................................................................113

6

8.
4.

7.

Enduser.................................................................................................... 114
1.

Posting Pur Inv........................................................................................ 114

2.

Posting Sales Inv:..................................................................................... 114

MM Integration............................................................................................ 116

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1.

Srinivasa

Define Tax Relevancy Of Master Records....................................................113

MM configuration...................................................................................... 116
1.

Maintain Calendar:................................................................................... 116

2.

Define plant:............................................................................................ 117

3.

Define Division:........................................................................................ 118

4.

Maintain Storage Location:........................................................................118

5.

Maintain purchasing organisation:...............................................................119

6.

Assign plant to company code:...................................................................119

7.

Assign Business Area to Plant/Valuation Area and Division:............................120

8.

Assign Purchasing organization to company code:........................................120

9.

Assign purchase organisation to plant:........................................................120

10.

Create Purchasing Groups:.....................................................................121

11.

Define Material Group:...........................................................................121

12.

Maintain Company Code for Material Management:...................................121

13.

Define Attributes of Material Types:..........................................................121

14.

Set Tolerance Limits for Price variance ( purchasing order):.........................123

15.

Plant Parameters.................................................................................. 124

16.

Define Number Assignment for Material and Phys. Inv .Docs.......................124

17.

Set Tolerance Group (for GR):.................................................................125

18.

Maintain Default Values for Tax codes:.....................................................125

19.

Set Tolerance Limits (for invoice verification):............................................126

20.

Define Automatic status change:..............................................................126

21.

Group together Valuation areas:..............................................................126

22.

Define Valuation Classes:.......................................................................126

2.

FI Consultants Job.................................................................................... 127

1.

Changing GL account Inventory RM............................................................127

2.

Creating GL accounts............................................................................... 127

3.

Assignment of Accounts:...........................................................................130

4.

Creating No. ranges for Document types WE WA RE..................................132

3.

MM End User............................................................................................ 132

1.

Creation of RM master.............................................................................. 133

2.

Creation of Vendor Masters.......................................................................134

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8.

3.

Creation of Vendor Masters.......................................................................134

4.

Open Period for Current month...................................................................135

5.

Purchase Order Creation:..........................................................................135

6.

Goods Receipt......................................................................................... 136

7.

Displaying Material document.....................................................................136

8.

Invoice Verification for goods......................................................................137

9.

Inv Verification for Freight..........................................................................137

10.

RM Consumption.................................................................................. 138

11.

Display Stock Ledger............................................................................. 139

12.

Display Stock for posting date.................................................................139

SD Integration............................................................................................. 140
1.

SD consultant job..................................................................................... 140

1.

Define Sales Organisation:........................................................................140

2.

Define Distribution Channel:......................................................................140

3.

Define shipping points:.............................................................................. 141

4.

Assign Sales Organisation to Company code:..............................................141

5.

Assign Distribution channel to sales organisation:.........................................141

6.

Assign division to Sales Organization:.........................................................142

7.

Set up sales area:.................................................................................... 142

8.

Assign sales organisation- distribution channel - Plant:..................................142

9.

Define Rules by Sales area:.......................................................................143

10.

Assign Business Area to Plant And Division...............................................143

11.

Assign Shipping Point to Plant:................................................................143

12.

Assign Shipping Points:..........................................................................144

13.

Maintain Pricing Procedure:....................................................................144

14.

Define Pricing Procedure Determination:..................................................144

15.

Define Tax Determination Rules:.............................................................145

16.

Set up Partner Determination:.................................................................145

17.

Changing Schedule Line Category...........................................................146

2.

FI Consultants job..................................................................................... 146

1.

Changing GL account............................................................................... 146

2.

Assignment of Accounts for Automatic Posting:.............................................147

3.

SD End User............................................................................................. 147

1.

Creation of Customer................................................................................ 147

8

2.

Creation of Material FG............................................................................. 148

3.

Creation of Condition records.....................................................................149

4.

Creation of Sales order............................................................................. 150

5.

Production Receipts.................................................................................. 151

6.

Delivery.................................................................................................. 151

7.

Sales billing............................................................................................. 152

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Error: Account 400491 requires an assignment to a CO object..............................153

9.

8.

Creating Cr Memo request.........................................................................153

9.

Posting Cr Memo..................................................................................... 154

10.

Sales Return Order (RE)........................................................................154

11.

Return Delivery (VL02n)........................................................................155

12.

CR Memo with reference to Returns order...............................................155

Profitability Analysis.................................................................................... 156

1.

Settings.................................................................................................... 156
1.

Maintain Operating Concern......................................................................156

2.

Displaying Characteristic list......................................................................158

3.

Define Profitability Segment Characteristics(Segment-Lvl Characteristics).......158

4.

Assign Co-Area to Operating Concern.........................................................159

5.

Define No ranges for Actual Postings..........................................................159

6.

Activate Tranfer of Incoming Sales Orders...................................................160

7.

Maintain Assignment of SD Conditions to CO-PA Value Fields........................160

8.

Assign Quantity Fields.............................................................................. 161

9.

Create Revenue element for GL account Sales..........................................161

10.

Create Cost element for GL account Discount given.................................161

11.

Creating GL account Advertising..............................................................161

12.

Create Secondary Cost Element(Settlement)............................................162

13.

Maintain allocation Structure :.................................................................162

14.

Maintain PA Tranfer Structure..................................................................163

15.

Maintain Settlement Profile.....................................................................164

16.

Maintain Number Ranges for Settlement Documents..................................164

17.

Creation of internal Order Types..............................................................165

18.

Activate Profitability Analysis...................................................................165

19.

Create IO Adv Event.............................................................................. 165

20.

Create No. Range intervals for Bus Transactions KOAO.............................166

21.

Maintain PA Transfer Structure for Direct posting.......................................166

22.

Transfer of old SD data to PA.................................................................167

9

2.

SD End User............................................................................................. 168

1.

Creating Sales order................................................................................. 168

2.

Delivery of goods to customer....................................................................168

3.

Billing document....................................................................................... 168

4.

Display Billing document............................................................................168

3.

FI Enduser................................................................................................ 169
1.

Posting transaction in FI............................................................................ 169

2.

Posting Advertising expenses in IO.............................................................169

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4.

CO End User............................................................................................. 170

1.

Set Operating Concern.............................................................................. 170

2.

Executing the Profitability Report...............................................................170

3.

IO Settlement........................................................................................... 170

4.

Display COPA Line items:..........................................................................171

5.

Checking the flow of Billing Documents.......................................................171

6.

Displaying COPA tables(Costing Based)......................................................171

10.

5.

COPA-Valuation Overview........................................................................172
1.

Valuation using Conditions.........................................................................172

2.

Valuation using Mat. Cost Estimates...........................................................173

CO-PA Valuation-1....................................................................................... 175

1.

Settings.................................................................................................... 175
1.

Create Condition Types and Costing Sheets.................................................175

2.

Define and Assign Valuation Strategy:.........................................................175

3.

Assign Value Fields.................................................................................. 176

4.

Valuation Analysis.................................................................................... 176

2.

Enduser :.................................................................................................. 177

1.

Maintain condition record:..........................................................................177

2.

Creating Sales order................................................................................. 177

3.

Delivery of goods to customer....................................................................177

4.

Billing document....................................................................................... 178

5.

Display Billing document............................................................................178

6.

Valuation Simulation................................................................................. 178

6.

Characteristic Derivation............................................................................. 180

7.

CO-PA Manual Line Item Entry.....................................................................181

8.

Top-Down Distribution of Actual Data..........................................................182

1.

Settings.................................................................................................... 182
1.

Maintain Characteristic Groups...................................................................182

10

2.

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2.

9.

Assign Characteristic Groups for Assignment Screen.....................................183

Enduser.................................................................................................... 183

1.

Creation of Material FG(LAPFG9)...............................................................183

2.

Create Condition Record...........................................................................184

3.

Sales Order............................................................................................. 184

4.

GRfrom Production................................................................................... 185

5.

Delivery.................................................................................................. 185

6.

Billing..................................................................................................... 185

7.

Posting Freight charges in FI......................................................................185

8.

Display Actual line items............................................................................ 186

9.

Top-Down Distribution............................................................................... 186

10.

Display Actual Line items........................................................................188

11.

History................................................................................................. 189

Profit Centre Accounting.............................................................................. 190

1.

Set controlling area:.................................................................................. 190

2.

Maintain Controlling Area Settings:..............................................................190

3.

Create Dummy profit centre:......................................................................190

4.

Set Control Parameter for Actual Data:........................................................191

5.

Maintain Plan Versions.............................................................................. 191

6.

Define Number Ranges for Local Documents:..............................................191

7.

Creating Profit Centres............................................................................. 192

8.

Assign Profit Center in CostCenter :...........................................................193

Error : Changing profit center from to xxxx is not permitted...................................193

Create Sales Account As Revenue Element:................................................193

9.
10.
1.

10.

Maintain Automatic Account Assignment Revenue element:........................193

End User................................................................................................... 194

1.

Posting of Salaries.................................................................................... 194

2.

Posting Sales Invoice................................................................................ 194

3.

Transfer of values from one ProfitCenter To another ProfitCenter:....................195

4.

Display Profit Centre Report:......................................................................195

Product Cost Planning.............................................................................. 197

Moving Average Price/Standard price................................................................197

Costing Sequence.......................................................................................... 197
Automatic vs Unit Cost Estimate.......................................................................197
Cost Component Split..................................................................................... 198
11

1.

Reference and Simualtion Costing............................................................199

1.

CO Settings.............................................................................................. 200
1.

Creating Secondary Cost Elements.............................................................200

2.

Creating Activity Types Machine Hour/ Packing/ Asssembling/ Processing........201

2.

MM Enduser.............................................................................................. 203
1.

Creating Material master LAPRM1 in plant LAP1.........................................203

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Error : Tables TCURM and T001W inconsistent..................................................203

2.

Creating Material master LAPRM2 in plant LAP2.........................................204

3.

Creating Material master LAPPM1 in plant LAP1..........................................205

4.

Creating Purchase Info Record for External activity PCKG.............................205

1.

CO Enduser.............................................................................................. 206
1.

Create Cost Element Group.......................................................................206

2.

Create Activity type Group.........................................................................207

3.

CC Planning for CC 1001..........................................................................207

4.

Activity planning for MCH..........................................................................208

5.

CC Planning for CC 2001..........................................................................208

6.

Activity planning for PRCS.........................................................................209

7.

CC Planning for CC 1002..........................................................................209

8.

Activity planning for ASMB.........................................................................210

9.

Calculating planned Activity Price...............................................................210

10.
5.

Creating a Base Planning Object LAPSFG1_BPO in plant LAP1....................211

6.

Create single level unit cost estimate for LAPSFG1_BPO...............................212

7.

Creating a Base Planning Object LAPSFG2_BPO in plant LAP2....................212

8.

Create single level unit cost estimate for LAPSFG2_BPO...............................213

9.

Create multilevel unit cost estimate.............................................................213

10.

Srinivasa

Activity planning for PCKG......................................................................211

Exploding a material cost estimate/Base Planning Object............................216

2.

Creating a cost estimate w/o quantity structure......................................216

1.

CO Settings.............................................................................................. 216
1.

Creating Cost Center (Allocation)...............................................................216

2.

Define OH keys........................................................................................ 217

3.

Define OH Groups.................................................................................... 217

4.

Define Calculation Bases...........................................................................217

5.

Define Percentage OH Rates.....................................................................218

6.

Define Credits.......................................................................................... 219

7.

Define Costing Sheet............................................................................... 219

12

8.

Define Costing Variant............................................................................... 220

9.

Define Cost Component Structure...............................................................221

10.
2.

MM Enduser.............................................................................................. 224
1.

Creating Material master LAPFG1..............................................................224

2.

Creating Material master LAPSFG1...........................................................225

3.

Creating Material master LAPSFG2 in plant LAP1........................................226

4.

Creating Material master LAPSFG2 in plant LAP2........................................227

5.

Creating Purchase Info Record LAPRM1 / two vendors..................................227

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3.

Srinivasa

Check/Change price calculation settings in Version....................................223

CO Enduser.............................................................................................. 229
1.

Cost Estimate W/O Quantity Structure(Single level) for LAPSFG1...................229

2.

Price update :.......................................................................................... 230

3.

Multilevel Cost Estimate for LAPFG1...........................................................230

3.

Creating a cost estimate with quantity structure.....................................233

1.

FI Settings................................................................................................ 235
1.

Create GL Account Gain/Loss from Revaluation :..........................................235

2.

Automatic account assignment for transaction UMB......................................235

2.

PP settings................................................................................................ 235
1.

Define MRP Controller.............................................................................. 235

2.

Define Floats(Scheduling Margin Key).........................................................235

3.

Define Production Scheduler......................................................................235

4.

Determine Person Responsible for WorkCenter............................................236

5.

Define parameters.................................................................................... 236

6.

Define Standard value key.........................................................................237

7.

Check Formulas for Costing.......................................................................237

3.

PP Enduser............................................................................................... 238
1.

Creating BOM for LAPSFG1......................................................................238

2.

Creating BOM for LAPSFG2 in plant LAP2..................................................239

3.

Creating BOM for LAPFG1........................................................................239

4.

Material BOM Browser.............................................................................. 240

5.

Creating Work Center............................................................................... 240

6.

Creating Work Center............................................................................... 240

7.

Creating Work Center............................................................................... 241

8.

Creating Routing for LAPSFG1...................................................................242

9.

Creating Routing for LAPSFG2...................................................................242

10.

Creating Routing for LAPFG1..................................................................243

13

4.

CO settings............................................................................................... 244
1.

Creating Tranfer Control............................................................................ 244

2.

Assigning Transfer Control in Costing variant...............................................245

3.

Creating Special Procurement Types...........................................................245

4.

Update Additive Costs............................................................................... 245

5.

Check Settings (for Costing Variant)............................................................246

MM Enduser.............................................................................................. 247

1.

Enter Spl Proc type in Mat master LAPSFG2 in plant LAP1............................247

2.

Enter Spl Proc type in Mat master LAPSFG1 in plant LAP1............................248

3.

Maintain OH key in Material master.............................................................248

6.

CO Enduser.............................................................................................. 249
1.

Creating Procurement alternatives..............................................................249

2.

Creating /Changing Mixing Ratios...............................................................250

3.

Creating Unit cost estimate for Additive Costs...............................................251

4.

Creating Cost Estimate for plant LAP1 and LAP2.........................................252

1.

Costing Run............................................................................................ 252

Msg :No structure could be determined for internal activity ASMB (1002)................253
Delete Costing Run :....................................................................................... 255

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5.

14

Introduction
This book is vol-2 of 2 volumes
This book was initially a set of tutorials taught by me during class room training. After gradual
development over the years, now it has become a complete configuration guide/ end-user manual for
SAP FICO module. Obviously this book is more a practical guide than a reference book even though
some info stuff has been inserted at some places.
Having taught the SAP FICO course to hundreds of beginners and experienced at various institutions,
I know the kind of problems and questions you will have when learning this module.This book is full of
detailed step-by-step procedures with necessary screen shots and sample configurations.
Having worked as a SAP Consultant at various organizations, I know the kind of requirements that
may arise at clients. To this end, most of the business processes and underlying concepts have been
explained thoroughly through out the book.
By understanding the how and whys, you will start gaining basic knowledge which reaches to
advanced level with in no time.
As you go through the material, if you have problems or questions please do mail me. If you find an
error in this book, or suspect there may be an error, kindly notify .
I hope you will find using this book as enjoyable.

Conventions Used in This Book

indicates a next thing in navigation or next action
----- button means to hit the button . For example Position button means to hit Positon button.
: is followed by the value/text to be entered
Multiple inputs/input values in a single screen are shown in the form of table.

How to use the book

Just read line by line and follow the instructions. Refering to screen shots makes your job
easy . Please refer to Info boxes for additional info.

16

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Controlling
CO

FI

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CO is for internal Reporting FI is for Internal & external Reporting

17

1. CO -Basic Settings
Organizational Structure :
Controlling

FI Accounting
CoCd1
CO Area1
CoCd2

Operating Concern
(CO-PA)

CoCd3

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CO Area2
CoCd4

Plant1
Plant2
Plant3
Plant4
Plant5
Plant6
Plant7
Plant8

1. Copy comp code

TCode :EC01

2. Maintain Controlling Area

CO

FI

CO-Area

CoCd

Scenario:1 (1:1 relationship)

Company Code = Controlling Area
(Company code and Controlling area are in same levels or
One Company code under a Controlling area)
Scenario 2: (1:n relationship)
Company Code under the Co area (more than one CoCd under a Co-area)
This is also called cross company code cost accounting.
CO-area
Co Area1
Co Area2

Company Code
CoCd 1
CoCd 2
CoCd 3
CoCd4

We are going to follow scenario 2 .

SPROControllingGeneral Controlling OrganisationMaintain Controlling Area
Double click on Maintain Controlling Area
New Entries
18

Controlling Area :
Name

Co Area for LAP

Co Cd CO Area

Currency Type

10

Currency

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Chart of Accts

Srinivasa

LAP

Cross-company-code cost accounting

:
:

INR

LACA

Fiscal Year Variant

V3

CCtr Std. Hierarchy

Std_Hier

Save
Yes Button to create std hierarchy
Create Request Button
Short description :

CO Settings for LAP

Enter
Continue
Double click on Assignment of Company Code(s) folder

New Entries
CoCd Company Name
LAP

Lair p div

19

Save
Continue
Double click on Activate components/control indicators folder

Fiscal Year

: 2012

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Cost Centres

: Component Active

Srinivasa

New Entries

Save

AA: Activity type

OrderManagement : Component Active

Profit Centre Acctg

Enter to ignore the warning message

3. Cost Centre Standard Hierarchy

Up to Controlling Same path
Cost Centre AccountingMaster Data Cost CentresDefine standard Hierarchy
Controlling Area :

LAP

Enter
Group Name

: STD_HIER

Description

Standard hierarchy for LAP

20

Save
Info : Std hierarchy is top node in the cost centre hierarchy .

Kasireddy +91-9959765211

Std hierarchy represents all cost centres in the Co Area

4. Maintain Versions
SPROControllingGeneral Controlling OrganisationMaintain Versions
Select version 0 ie Plan/Actual version
Double click on Settings for Each Fiscal Year folder

``
Controlling Area :
Version

Enter
New entries
Fiscal Year :

2012

Exchange Rate Type

Srinivasa

LAP

Save
Continue

21

2. Cost Centre Accounting

Cost Centre

Profit Centre

Cost Centre Accounting(CCA) is used to

record costs at org units called Cost
centres.

Profit Centre Accounting(PCA) is used to record

costs and revenues at org units called Profit
centres.

Eg:Cost centre can be a department

Eg: Profit centre can be a plant.

Profit centre is an internal org. unit at which
you can analyze profitability independently.

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Eg: Plant wise profitability is possible

In FI module we can record expenses & revenues at GL account level.
Department level expenses can be captured in CCA .
Plant level expenses and revenues can be captured in PCA.

Relationship between Profit centre & Cost centre

A cost centre can be independent or assigned to a profit centre. For eg we have two plants
We can create each plant as a profit centre . We can create each department in the plant as
a cost centre.
Profit center
1000
(Mumbai plant)
2000
(Hyd Plant)

Cost centre
1001 (Body shop)
1002 (Assembling)
1003 (Paint shop)
2001 (Body shop)
2002 (Assembling)
2003 (Paint shop )

Independent

9000 (Sales)

Independent

9001 (Admin)

Cost Element

Primary Cost Element

Secondary Cost Element

Primary Cost Elements are nothing but Expenses GL accounts

Primary cost elements

Secondary cost elements

22

Used to transfer data from FI module to CO

Used to transfer data within CO module

For eg you post to Salary a/c in FI . It can be

transfered to CO with a cost element called
Salary

For eg allocations from one CO-object to

other(Cost center to Costcenter )

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Profit centre 1000

(Mumbai Plant)

Profit centre 2000

(HydPlant)

Cost/Revenue
element

1001

1002

1003

2001

2002

2003

Cost /
Revenue
element wise
Totals(FI)

400500(Salaries)

27000

18000

9000

9000

27000

18000

108000

400600(Rent)

45000

54000

27000

27000

9000

9000

171000

CC wise Total

72000

72000

36000

36000

36000

PC wise Total

180000

99000

300510 (Sales)

207000

135000

PC wise
Profitability

27000

36000

27000

279000
342000

63000

1. Settings
1. Maintain Number Ranges for Controlling Document
SPROControllingGeneral Controlling OrganisationMaintain Number Ranges for
Controlling Document
Tcode :KANK
CO Area

LAP

Maintan Groups button

Create button
Group

No. ranges for CO documents (LAP)

From number

To number

090000000

099999999

Save
Continue
Back buton
Non-Assigned Elements
Click on COIN
Element/Group button
23

 Double click on No. ranges for CO documents (LAP)

(Repeat the same procedure for , RKP1, RKU1, RKU3)
Save
Continue
Info:
FI

CO

Doument types

Business transactions

Eg: SA, KR, KZ Eg: COIN , RKU1 , RKU3

Eg: Bus.transaction COIN arises when a CO object like Cost centre is entered in FI

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document . In this case a CO document is generated apart from a FI document.

Bus.transaction RKU1 arises when reposting of costs from one CC to other CC . In this
case only CO document is generated.

2. Creation of Primary Cost Element

a.FI area
Tcode : FS00
Select 1st expenses Account
Change buttonEdit cost element button

Valid From :

1-4-2011

to

31-12-9999

Enter
CElem category :

1 (Primary cost/cost-reducing revenue)

Save
Note down the 2nd Expenses GL account
400409

Travelling Expenses

b. Co. Area:
24

SAP Easy AccessAccountingControllingCost element AccountingMaster

DataCost Element Individual processingCreate Primary
Tcode : KA01
Cost Element

400509 (2nd exp a/c)

Enter
CElem category :

Save
c. Automatic Creation:
SPROControllingCost Element AccountingMaster DataCost elementsAutomatic

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Creation of Primary and Secondary Cost ElementsMake Default settings

Chart of Accounts

LACA

Enter
NewEntries
Acct from

Account to

CECt

400403 (3rd Exp A/C)

400490

400491

400491

12

400492

499999

Save
Continue
Back button twice
Create Batch Input session:
Same path
Create Batch Input session
Controling Area :

LAP

Valid From

1.4.2011

Valid to

31.12.9999

Session

CE_CREATE_LA

Execute
Back button twice
Execute Batch Input session
Same path
Execute Batch Input session
Select Session name

CE_CREATE_LA

Process button
Process button again
Keep on pressing Enter until processing batch input session completed
25

Exit batch input session button

3. Display Cost Elements
Tcode :KA23
SAP Easy AccessAccountingControllingCost element AccountingMaster
DataCost elementCollective ProcessingDisplay

All Cost Elements

Execute
4. Creation of FSG (Cost Centre required)
Tcode : OBC4

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Select FS variant

LAFS

Double click on Field Status groups folder

Select FSG G004 (Cost Accounts)
Copy as button
Change Field status group to2 G002
Change the Text to Cost accounts (CC req)
Enter
Double click on Field Status Group G002
Double click on Additional account assignment
Req. Entry

Cost centre

Save
Continue

5. Assign New FSG in Expenses G/L Account

SAP Easy AccessAccountingFinancial AccountingGeneral LedgerMaster

Srinivasa

RecordsGL AccountsCollective ProcessingCompany Code Data

Enter to ignore the warning message
TCode:OB_GLACC12
Company Code :

LAP

G/L Account

400000

To

499999

Execute
Replace Field status group with G002 for all GL accounts

26

 Srinivasa

Kasireddy +91-9959765211

Save
Enter to ignore the warning message

6. Creation of Cost Centre

SAP Easy AccessAccountingControllingCost Center AccountingMaster DataCost
CenterIndividual ProcessingCreate
Tcode: KS01
Extras menuSet Controlling Area
Controlling Area :

LAP

Enter
Cost center:

1001

Valid From :

1.4.2011 to

31.12.9999

Enter
Name

Body shop

Description

Body shop

Person Responsible

Cost Center Category :

Mr. T
1

Hierarchy Area

STD_HIER

Business Area

LANZ

Currency

INR

Save
Enter to ignore the warning msg
Cost Center

1002

1001

Reference
Cost Center

Controlling Area :

LAP
27

Enter
Replace the Name & Description with Assembling
Person responsible

Mr. T

Save
Enter to ignore the warning message
Cost Center

1003

Reference
Cost center:

1001

Controlling Area :

LAP

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Enter
Replace the Name with Paint shop
Replace the Description with Paint shop
Person Responsible

MR. T

Save
Enter to ignore the warning message
Cost Center

2001

Reference
Cost center:

1001

Controlling Area :

LAP

Enter
Replace the Name with Processing
Replace the Description with Processing
Person Responsible

MR. T

Save
Enter to ignore the warning message

7. Creation CC Groups
Tcode : KSH1
Up to Master Data same path
CostCenter Group Create
Cost Center Group

PROD

Enter
Description :

Production cost

Insert Cost Center button

28

 Srinivasa

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PROD
1001

Body Shop

1002

Assembling

1003

Paint Shop

Save
8. Creation of CE groups
Tcode :KAH1
Up to Master Data same path
Cost Element GroupCreate
Cost element group

ADMIN

Enter
Description: Admn Cost
Insert Cost Element button
ADMIN
400591

Travelling Exp.

Save
Cost element group

PERSNL

Enter
Description :

Personal cost

Insert Cost Element button

PERSNL
400500

Salaries

(Enter GL accounts like Wages , Bonus etc)

save

2. End User:
1. Posting of transaction in FI
Tcode :F-02
Doc Date :

Type :

SA
29

Posting Key

40

Account

400500 (Salaries)

400600(Rent)

Enter
Amount

Cost Center

Text

Salaries Payment

Posting Key

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27000

1001
40

Account

Enter
Amount

18000

Cost Center

Text

Rent Payment

Posting Key

1001
50

Account

200691(Cash)

Srinivasa

Enter
Amount

Bus area

LANZ

Text

Expenses Payment

DocumentSimulatePost
Post one more document for Rent 9000.00 & Salaries 36000.00 for Cost Center 1002

2. Display CC Report
Tcode:KSB1
Up to Cost Centre Accounting same path

30

 Srinivasa

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Information SystemReports for CostCenter AccountingLine itemsCost Center: Actual

Line Items
Cost Center Group

PROD

Cost Element

400500, 400600

Execute
Change Layout button
Find button
Search term

Business

Enter
Select Business Transaction under Column Name
Left arrow button
Select Document Number under Column Name
Left arrow button
Select Ref Document Number under Column Name
Left arrow button
Enter

31

Make a note of Business Transaction , Doc no, Ref doc no.

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RefDoNo is Fi document
DocumentNo is CO document

3. Display CO Document
Tcode:KSB5
Same Path CO Documents: Actual Costs
Document Number

090000000

Execute

4. Repost CO Line item

Info : This function is used to rectify posting to wrong CO objects. For eg if during FI posting
it is been posted to wrong CC , you transfer to right CC without having impact on FI posting.
In this transaction only a CO document is generated.

Tcode:KB61
Up to Cost Centre Accounting same path
Actual postingsRepost Line ItemsEnter
Document Number

Company Code :

LAP

Fiscal year

2011

1000000024

Execute
Value Tran curr

Acct Assgt 1

11000

1003

7000

1003

32

Enter

Post

5. Display Cost Center Report

Tcode: KSB1
Extras menuSet Controlling Area
Controlling Area :

LAP

Enter
Cost Center Group

PROD

Execute

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(Screen is updated as shown in the following image)

6. Creating Common Cost center

33

Tcode:KS01
CostCenter

2000

Valid from :

1.4.2012

to

13.12.1999

Enter
Name

Common for CC 1001, 1002, 1003

Person responsible Mr. T

CostCenter Category :

1 (Prod)

Hierarchy area

STD_HIER

Busines area

LANZ

Currency

INR

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Save
Enter to ignore the warning message

7. Posting to Common Cost center

Tcode F-02
1.Post one document for Salary
Amount

Cost Centre

36000
:

2000

2. Post one document for Rent

Amount

Cost Centre

9000
:

2000

8. Repost Costs:
Info: This functionality is used to simplify FI postings. For eg FI user can post to common CC
if the amount belongs to multiple CCs. Later cost accountant can transfer the amount to
individual CCs without having impact on FI posting. In this transaction only a CO document
is generated.
Tcode: KB11N
Up to Cost Centre Accounting Same path
Actual posting
Manual Reposting of Costs
Enter
Extra menuSet Controlling area
Controlling Area :

LAP

Enter
34

Kasireddy +91-9959765211
Srinivasa

CCtr (old)

Cost Elem.

Amount

CCtr (new)

2000

400500

12000

1001

2000

400500

10000

1002

2000

400500

14000

1003

2000

400600

3000

1001

2000

400600

3000

1002

2000

400600

3000

1003

Post

9. Display Cost Center Report

Tcode: KSB1
CostCenter Group

PROD

Execute
Back button
Cost centre

2000

Multiple Entries button

Single value
1001
1002
1003
2000
Copy button
Execute

35

 Srinivasa

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10. Period Lock

At end of the month we lock the previous month
FI

CO

PPV

Period lock

Open and close Posting Period for Account

type & accounts

lock& unlock period for business transaction

Eg : (COIN, RKU1)

Tcode : OKP1
Path: AccountingControllingCostcenterAccountingEnvironmentPeriodlockChange
Controlling area :

LAP

Fiscal Year

2011

Actual button
Locking transaction for all period:
Keep the cursor on transaction CO through posting from FI
Lock transaction button
Lock period for all transactions :
select the period
Lock period button
Save

11. Planning Cost Centre wise

Tcode : KP06
Up to CostCenter Accounting same path
PlanningCost and Activity InputsChange
Version

From period

To period

12

Fiscal Year

2011

Cost centre

1001

Cost element

400500
36

 Srinivasa

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Form-Based

Overview screen button

Costelement

Plan fixed cost

Distribution key

400500

240000

1 (Equal distribution)

Select the cost element 400500

Period screen button

(Next image shows period wise planned costs)

37

Kasireddy +91-9959765211
Srinivasa

Post

12. Display Variance report

Tcode : S_ALR_87013611
Path: up to CostCenter Accounting Same path
Information systemReports for CostCenter AccountingPlan/Actual Comparisons Cost
Centers:Actual/Plan/ Variance
Controlling Area :
Fiscal Year :

2011

From Period

To Period :

Plan Version

Cost Center Group

Or Values :

LAP
5

(Current period)

0
:

PROD

400500

Execute

38

3. Allocations
Periodic allocations are done for planning data at the beginning of period (posting date will
be 1st day of the period).
Periodic allocations are done for actual data at the end of period (posting date will be last
day of the period).
.
The following periodic allocation methods are availble in SAP . They can be used for
allocating both planned and actual costs/activity quantities.

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Allocations
Distribution

Periodic
Reposting

Asessment

Indirect activity
allocation

Used for allocating

primary costs

Similar to
distribution

Used for
allocating primary
and secondary
costs

Used for allocating

activity type ( like Man
Hrs , Mach Hrs etc)
quanities

Primary cost
elements are used

Similar to
distribution

Secondary cost
elements
(category :
Assesment ) are
used

Secondary cost
elements(category :
Internal allocation) are
used

Detailed breakup at
cost element level is
available

Similar to
distribution

Data is
summerized on
assesment cost
element/s

Data is summerized on
allocation cost element/s

Used for plan and

actual costs

Used for actual

costs

Used for plan and

actual costs

Used for plan and actual

costs

Detailed analysis is
available at sender
and receiving cost
center

Analysis is available
at receiving cost
center only

Used if sender cost

center is important
for cost analysis

Used if sender is
just a cost collector
cost center

Eg : Cafetaria

Used just to
simplify account
assignments during
FI postings
eg : Comon CC

Creates more no of
line items,uses more
memory compared to
periodic reposting

Creates less no of
line items,uses less
memory compared
to distribution

39

Direct Activity allocation : is used for recording actual quantities of activity types
consumed by the receving CO object. This allocation happens as and when an activity type
is consumed by the receiving cost center . So this is not a periodc allocation. KB21N is the
TCode used .
1. Cost Center relatioships:
Cost Centers used :

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Cost Center Cost Center Name Costcenter category

1001

Bodyshop

A : Production

1002

Assembling

1003

Paintshop

1004

Cafetaria

K : Service

1006

Cost Collector

9 : Common

1008

Plant mainatance

B: Maintanance

1009

Quality control

N:Quality assurance

1011

Plant Admin

C: Administration

2. Assesment
Cost center cafeteria is used by other cost centers as shown in the following table
Allocation method used is assesment.
SKF (no of emplyees) is the allocation criteria.
Ie . Cafetaria charges are to be allocated based on the no of employees .
Note : Cost Center cafeteria itself has 5 employees
Sender CostCenter Reciving cost Center No of emplyees

1004(Cafetaria)

1001

75

1002

100

1003

75

1004(Cafetaria)

1008

20

1009

25

3. Periodic Reposting :
To simplify the FI postings we use cost collector cost center. We can post costs like rent ,
Electricity charges to cost collector cost center during the period. At period end we allocate
to 3 production cost centers using allocation method periodic reposting.
Rent is to be allocated based on percentage basis
Electricity charges is to be allocated based on no of units ie SKF : EU (Electric Units)
Sender CostCenter Reciving cost Center Rent Electricity charges
1006(Cost collector)

1001

50%
40

As recorded

1002

30%

As recorded

1003

20%

As recorded

4. Distribution:
Cost center plant admin takes care of 3 production cost centers. Costs like salaries of
administration department , stationery charges, vehicle maintanance , travelling expenses
are recorded in the cost center.
At period end we allocate all the costs to 3 production cost centers using allocation method
distribution.
Salaries is to be allocated based on number of employees in the receiver cost center

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Stationery charges , vehicle maintanance , travelling expenses are to be allocated based on

percentage basis.
Sender
CostCenter
1011(Plant Admin)

Reciving cost
Center

Salaries

Stat chrges

Vhcle maint

TrExp

1001

75

25%

30%

20%

1002

100

50%

60%

70%

1003

75

25%

10%

10%

5. Indirect activity allocation:

Cost center quality control gives quality check service to 3 production cost centers.
Activity type tesing hours(Tst Hrs) is to be allocated to 3 production cost centers
Quantity of Tst Hrs is allocated based on the number of tested items .
Allocated activity type is Tst Hrs and allocation basis is SKF (test items)Allocation method
used is indirect activity allocation.
Sender CostCenter

Reciving cost Center Tested items

1001

1009(Qulatity control) 1002

1003

6. Direct activity allocation:

Cost center plant maintenance gives maintenance service to 3 production cost centers.
Activity type maintenance hours(Mnt Hrs) is to be allocated to 3 production cost centers
Actual quantity of Mnt Hrs is recorded in the receiving cost center when the services are
consumed.
Allocated activity type is Mnt Hrs and Allocation method used is direct activity allocation.

41

Sender Cost Center

Reciving cost Center

1001

1008(Plant maintanance) 1002

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1003

42

4. Allocation by Assessment using SKF

SKF(Satistical Key Figures) is used as a basis to allocate costs from one cost centre to
other.If total number of employees in 3cost centers is 300. Cafetaria charges are to be
shared between 3 cost centers based on the number of employees.
Sender CostCenter Reciving cost Center No of emplyees

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1004(Cafetaria)

1001

75

1002

25

1003

200

Costs recorded in cost center Cafetaria by FI postings :

Cost Center

Primary Cost elements Costs incured

1004(Cafetaria) 400500 (Salaries)

45000.00

400600(Rent)

27000.00

Total cafeteria charges

72000.00

Formula used for allocation : (No of employees /Total no of employees)* Total amount
Eg : Cost allocation for cost center 1001 = (75/300)*72000.00 = 18000.00
Allocation of Cafetaria charges to 3 cost centers:
Sender
CostCenter

Sending
Amount

1004(Cafetaria) -18000.00
-6000.00

Sec.Cost element

Reciving cost
Center

Allocated
amount

10000000(Cafetari
a charges)

1001

18000.00

1002

6000.00

1003

48000.00

-48000.00
-72000.00

72000.00

Summary of the above transactions:

Sender
CostCenter

Posted/Allocated
amounts

Prim/Sec Cost
element

45000.00

400500 (Salaries)

27000.00

400600(Rent)

1004

-18000.00

(Cafetaria)

-6000.00
-48000.00

Balance

10000000(Cafetaria
charges)

0.00

43

Reciving
cost Center

Allocated
amount

1001

18000.00

1002

6000.00

1003

48000.00

Total
allocation

72000.00

1. Settings
1. Create Cost Centre
Tcode : KS01
Extras menuSet Controlling Area
Controlling Area :

LAP

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Enter
Cost Centre

1004

Valid From :

1.4.2012

Enter
Name

Descritpion :

Cafetaria

Person responsible

Cafetaria
:

MR. k

Cost Center Category :

Hierarchy area

Business Area
Currency

9 (Allocation cost ctr)

STD_HIER
:

LANZ

INR

Save
Enter to ignore the warning msg

2. Create No. Ranges interval for Business transaction RKS

RKIU
Tcode : KANK
CO Area

LAP

Maintain Groups Button

No. Range for CO Document (LAP)
Double click on Business Transactions RKS, RKIU,
Element/Group button
Save
Continue
3. Create SKF
Tcode : KK01
SAP Easy AccessAccountingControllingCost Center AccountingMasterData
44

Statistical Key FiguresIndividual ProcessingCreate (KK01)

Stat. key figure

EMP

Employee

Enter
Name

Stat. key fig. UnM.

EA

(Each)

(Unm = Units of Measure)

Fxd val

Save
4. Enter SKF

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Tcode : KB31N
Up to Cost Center Accounting same path
Actual PostingsStatistical Key FiguresEnter
Rec. CCtr

StatKF

Total Quantity

1001

EMP

75

1002

EMP

25

1003

EMP

200

Save
5. Allocation method (Assessment Method):

1. Creation of secondary cost element

Tcode :KA06
SAP Easy AccessAccountingControllingCost Element AccountingMaster Data
Cost ElementIndividual ProcessingCreate Secondary
Cost Element

10000000

Valid From :

1.4.2012

Enter
Name

Description :

Cafetaria charges

CElem category :

Cafetaria charges
42 (Assessment)

Save

2. Creation of Assessment Cycle

45

Scenario: Cafetaria charges are to be shared between 3 cost centers based on number of
employees
Option 1:

Option 2:

Option3:

Assesment cycle 1 for Salaries

and Rent

Assesment cycle 1 for

Salaries and Rent

Assesment cycle 1 for

Salaries

Segment 1 for Salaries

Segment 1 for

Segment 2 for Rent

Segment 1 for Salaries

Salaries& Rent

Assesment cycle 2 for Rent

Segment 1 for Rent

We are using option 1 for the following configuration scenario

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SPROControllingCost Center AccountingActual PostingsPeriod-End Closing

AssessmentMaintain Assessment
Double click on Create Actual Assessment
Cycle

Start Date :

LAP1
1.4.2012

Enter
Text :

Assesment of Cafertia Charges

Indicators

Iterative

Attach segment button

Segment Name :

SAL

Description

Salary Assessment

Assessment

CEle :

Sender Rule

1000000000
1 posted amounts

Share in %
:
100

Actual value origin

Receiver rule
:
Variable portions
Var . portion type :

Actual Statistical Key Figures

Senders/Receivers tab:
From

To

Group

Sender
Cost Centre
Cost Element

1004

400500

Receiver
Cost centre

46

PROD

Kasireddy +91-9959765211
Srinivasa

Receiver Tracing Factor tab:

From
Stat. key fig.

EMP

Attach segment button

Segment Name :

RENT

Description

Rent Assessment

Assessment CEle

Sender Rule

1 posted amounts

Share in %

100

Receiver rule

Variable portions

Var . portion type :

1000000000

Actual Statistical Key Figures

Sender/Receivers tab
From

To

Group

Sender
Cost Centre

1004

47

Cost Element

400600

Receiver

Srinivasa

Kasireddy +91-9959765211

Cost centre

PROD

Receiver Tracing Factor tab:

From
Stat. key fig.

EMP

Save
Continue

1. Enduser

1. Posting of Rent & Salary in CC 1004

Tcode : F-02
40

Salary

40

Rent

50

Cash

*
2. Execution of Assessment cycle (Month end activity)

T code : KSU5
Up to Cost Center Accounting same path
48

Period-End ClosingSingle FunctionsAllocationsAssessment

Period

Fiscal

Year :

Test Run

Details Lists

To

2012

Cycle
LAP1
Enter
Execute

Srinivasa

Kasireddy +91-9959765211

Double click on the item

Back button 2 twice
Yes button to leave the list
Test Run
Execute

3. Cost Centre Report

Tcode : KSB1
CostCenter :

1004

Costelement

10000000

Execute
Back button
CostCenter :

1001 To

Costelement

1003

1000000000Multiple selection button

Select Single values tab

Single values
1000000000
400500
400600
Copy button
Execute

49

5. Allocation by Distribution
Cost center plant admin takes care of 3 production cost centers. Costs like salaries of
administration department , stationery charges, vehicle maintanance , travelling expenses
are recorded in the cost center.
At period end we allocate all the costs to 3 production cost centers using allocation method
distribution.
Salaries is to be allocated based on number of employees in the receiver cost center
Vehicle maintanance are to be allocated based on percentage basis.

Srinivasa

Kasireddy +91-9959765211

Sender CostCenter Reciving cost

Center
1011(Plant Admin)

Salaries

Rent

Vhcle maint

1001

75

25%

30%

1002

25

50%

60%

1003

200

25%

10%

Costs recorded in cost center Plant admin by FI postings :

Cost Center
1011(Plant Admin)

Primary Cost elements

Costs incured

400500 (Salaries)

72000.00

400600(Rent)

18000.00

Vehicle maintenance

27000.00

Total Plant admin charges

81000.00

Sender
CostCenter

Sending
Amount

Cost element

Reciving cost
Center

Allocated
amount

1011(Plant
Admin)

-18000.00

400500 (Salaries)

1001

18000.00

-6000.00

1002

6000.00

-48000.00

1003

48000.00

-72000.00

72000.00
400600(Rent)

2. Settings
1. Create Cost Centre
50

Tcode : KS01
Extras menuSet Controlling Area
Controlling Area :

LAP

Enter
Cost Centre

1011

Valid From :

1.4.2012

Enter
Name

Descritpion :

Plant Admin

Srinivasa

Kasireddy +91-9959765211

Person responsible

Plant Admin
:

MR. k

Cost Center Category :

Hierarchy area

Business Area
Currency

C: Administration

STD_HIER
:

LANZ

INR

Save
Enter to ignore the warning msg

2. Create GL account/cost element Vehicle maintenance

G/L account 400203
3. Create No. Ranges interval for Business transaction RKIV
Tcode : KANK
CO Area

LAP

Maintain Groups Button

No. Range for CO Document (LAP)
Double click on Business Transactions RKIV (Actual Overhead Distribution)
Element/Group button
Save
Continue
4. Create SKF (already done)
Tcode : KK01
SAP Easy AccessAccountingControllingCost Center AccountingMasterData
Statistical Key FiguresIndividual ProcessingCreate (KK01)
Stat. key figure

EMP

Enter
51

Name

Stat. key fig. UnM.

Employee
:

EA

(Each)

(Unm = Units of Measure)

Fxd val

Save
5. Enter SKF ((already done))
Tcode : KB31N
Up to Cost Center Accounting same path

Srinivasa

Kasireddy +91-9959765211

Actual PostingsStatistical Key FiguresEnter

Rec. CCtr

StatKF

Total Quantity

1001

EMP

75

1002

EMP

25

1003

EMP

200

Save
6. Allocation method (Distribution):

1. Creation of Distribution Cycle

Scenario: Plant admin charges are to be shared between 3 cost centers based on different
criteria
Option 1:

Option 2:

Option3:

Cycle 1 for Salaries and Rent

Cycle 1 for Salaries and

Rent

Cycle 1 for Salaries

Segment 1 for Salaries

Segment 1 for

Segment 2 for Rent

Salaries, Rent

Segment 3 for Vehicle

maintenance

& Vehicle maintenance

Segment 1 for Salaries

Assesment cycle 2 for Rent
Segment 1 for Rent
Assesment cycle 3 for Vehicle
maintenance
Segment 1 for Vehicle
maintenance

We are using option 1 for the following configuration scenario

SPROControllingCost Center AccountingActual PostingsPeriod-End Closing
DistributionDefine Distribution
Double click on Create Actual Distribution
52

Cycle

Start Date :

LAP2
1.4.2012

Enter
Text :

Plant admin costs distribution

Indicators

Iterative

Attach segment button

Segment Name :

SAL

Description

Salary Distrbution

1 posted amounts

Share in %
:
100

Actual value origin

Receiver rule
:
Variable portions
Var . portion type :

Actual Statistical Key Figures

Senders/Receivers tab:
From

To

Group

Sender
Cost Centre
Cost Element

1011

400500

Receiver
Cost centre

Srinivasa

Kasireddy +91-9959765211

Sender Rule

Receiver Tracing Factor tab:

From
53

PROD

 Srinivasa

Kasireddy +91-9959765211

Stat. key fig.

EMP

Attach segment button

Segment Name :

RENT

Description

Rent Distribution

Sender Rule

1 posted amounts

Share in %

100

Receiver rule

Fixed percentages

Sender/Receivers tab
From

To

Group

Sender
Cost Centre
Cost Element

1011

400600

Receiver
Cost centre

Receiver Tracing Factor tab:

Cost Ctr

Portion/percent

1001

25%

1002

50%

1003

25%

Attach segment button

Segment Name :

Veh

Description

Vehcile maintance distribution

Sender Rule

1 posted amounts

Share in %

100

Receiver rule

Fixed percentages
54

PROD

Sender/Receivers tab
From

To

Group

Sender
Cost Centre
Cost Element

1011

400203

Receiver
Cost centre

PROD

Srinivasa

Kasireddy +91-9959765211

Receiver Tracing Factor tab:

Cost Ctr

Portion/percent

1001

30%

1002

60%

1003

10%

Save
Continue

2. Enduser

4. Posting of Rent , Salary ,Veh maintanance in CC 1011

Tcode : F-02
40

Salary

45000

40

Rent

40

Vehcile maintance

50

Cash

27000
18000

*
5. Execution of Distribution cycle (Month end)

T code : KSV5
Up to Cost Center Accounting same path
Period-End ClosingSingle FunctionsAllocationsDistribution
Period

Fiscal

Year :

Test Run

Details Lists

To

2012

Cycle
LAP2
55

Enter
Execute

Back button
Yes button to leave the list
Test Run
Execute

Tcode : KSB1
CostCenter :

1011

Costelement

400500, 400600,400203

Execute
Back button
CostCenter :

1001 To

Costelement

1003

400500, 400600,400xxx

Select Single values tab

Single values
400xxx
400500
400600
Copy button
Execute

Srinivasa

Kasireddy +91-9959765211

6. Cost Centre Report

56

6. Allocation by Periodic Reposting

To simplify the FI postings we use cost collector cost center. We can post costs like rent ,
Electricity charges to cost collector cost center during the period. At period end we allocate
to 3 production cost centers using allocation method periodic reposting.
Rent is to be allocated based on percentage basis
Electricity charges is to be allocated based on no of units ie SKF : EU (Electric Units)
Sender CostCenter Reciving cost Center Rent Electricity charges

Srinivasa

Kasireddy +91-9959765211

1006(Cost collector)

1001

50%

As recorded

1002

30%

As recorded

1003

20%

As recorded

1. Settings
1. Create Cost Centre
Tcode : KS01
Extras menuSet Controlling Area
Controlling Area :

LAP

Enter
Cost Centre

1006

Valid From :

1.4.2012

Enter
Name

Descritpion :

Cost collector

Person responsible

Cost collector
:

Cost Center Category :

Hierarchy area

Business Area
Currency

9 Allocation

STD_HIER
:

MR. k

LANZ

INR

Save
Enter to ignore the warning msg

57

2. Create GLa/c & cost element Elec Charges

G/L account : 400392
3. Create No. Ranges interval for Business transaction RKIB
Tcode : KANK
CO Area

LAP

Maintain Groups Button

No. Range for CO Document (LAP)
Double click on Business Transactions RKIB (Actual Periodic Repostings)

Kasireddy +91-9959765211

Element/Group button
Save
Continue
4. Create SKF
Tcode : KK01
SAP Easy AccessAccountingControllingCost Center AccountingMasterData
Statistical Key FiguresIndividual ProcessingCreate (KK01)
Stat. key figure

EU

Electrical Units

Enter
Name

Stat. key fig. UnM.

KWH

(Unm = Units of Measure)

Tot val

Save

Srinivasa

5. Allocation method (Periodic Reposting):

1. Creation of Periodic Reposting cycle

SPROControllingCost Center AccountingActual PostingsPeriod-End Closing
Periodic RepostingDefine Periodic Reposting
Double click on Create Actual Periodic Reposting
TCode : KSW1
Cycle

Start Date :

LAP3
1.4.2012
58

 Enter
Text :

Prim costs reposting

Indicators

Iterative

Attach segment button

Segment Name :

ELEC

Description

Elcricity bills reposting

Sender Rule

1 posted amounts

Srinivasa

Kasireddy +91-9959765211

Share in %
:
100

Actual value origin

Receiver rule
:
Variable portions
Var . portion type :

Actual Statistical Key Figures

Senders/Receivers tab:
From

To

Group

Sender
Cost Centre
Cost Element

1006

400392

Receiver
Cost centre

Receiver Tracing Factor tab:

From
Stat. key fig.

EU

Attach segment button

Segment Name :

RENT

Description

Rent reposting

59

PROD

Sender Rule

1 posted amounts

Share in %

100

Receiver rule

Fixed percentages

Sender/Receivers tab
From

To

Group

Sender
Cost Centre
Cost Element

1006

400600

Receiver

Srinivasa

Kasireddy +91-9959765211

Cost centre

PROD

Receiver Tracing Factor tab:

Cost Ctr

Portion/percent

1001

50%

1002

20%

1003

30%

Save

3. Enduser

7. Posting of Rent , Elc bills , in CC 1006

Tcode : F-02
40

Elc bills

45000

40

Rent

27000

50

Cash

*
8. Enter SKF (Month end)

Tcode : KB31N
Up to Cost Center Accounting same path
Actual PostingsStatistical Key FiguresEnter
Rec. CCtr

StatKF

Total Quantity

1001

EU

750

1002

EU

250

1003

EU

2000

Save
60

9. Execution of Periodic reposting cycle (month end)

T code : KSW5
Up to Cost Center Accounting same path
Period-End ClosingSingle FunctionsPeriodic Reposting
Period

Fiscal

Year :

Test Run

Details Lists

To

2012

Cycle

Srinivasa

Kasireddy +91-9959765211

LAP3
Enter
Execute
Back button
Yes button to leave the list
Test Run
Execute

10. Cost Centre Report

Tcode : KSB1
CostCenter :

1006

Execute
Back button
CostCenter :

1001 To

Costelement

1003

400600Multiple selection button

Select Single values tab

Single values
400600
400392
Copy button
Execute

61

7. Indirect Activity Allocation using SKF

Cost center quality control gives quality check service to 3 production cost centers.
Two activity types are used .
1.Testing hours-Manual (Act type category = 2 Indirect determination, indirect allocation)
2.Testing hours-Automated(Act type category =3 Manual entry, indirect allocation)
Both activity types are allocated on the basis of SKF (test items) . Allocation method used
is indirect activity allocation.

Costs that incured in the costcenter quality control are to be split between the two activity
types . For that we need to define Splitting Structure and assign to the cost center.
Actual activity valuation :
During allocation activity quantity is valuated with plan price or manually set price initially
when actual price calculation is not done. At the time of actual price calculation we can
optionally revaluate the allocated activity. Variance amount is posted .
After revaluation process sender balance will be zero .
Settings for price calculation ,revaluation and cost component structure :
During Version maintenance we can make settings for price calculation and revaluation on
fiscal year basis.
In the Activity type master data we maintain actual price indicator 5 or 6.

Srinivasa

Kasireddy +91-9959765211

Splitting :

62

Kasireddy +91-9959765211
Srinivasa

Sender CostCenter

Reciving cost Center Tested items

1001

300

1009(Qulatity control) 1002

200

1003

220

Costs recorded in cost center Quality control by FI postings :

Cost Center

Primary Cost elements Planned Costs

1009 (Quality control) 400500 (Salaries)

45000.00

400600(Rent)

27000.00

Total charges

72000.00

63

1. Settings
1. Create Cost Centre
Tcode : KS01
Extras menuSet Controlling Area
Controlling Area :

LAP

Enter
Cost Centre

1009

Valid From :

1.4.2012

Srinivasa

Kasireddy +91-9959765211

Enter
Name

Descritpion :

Quality control

Person responsible

Quality control
:

MR. k

Cost Center Category :

Hierarchy area

Business Area
Currency

N (Quality Assurance)

STD_HIER
:

LANZ

INR

Save
Enter to ignore the warning msg

2. Create No. Ranges interval for Business transaction RKL ,

RKN, KSI0,KSII
Tcode : KANK
CO Area

LAP

Maintain Groups Button

No. Range for CO Document (LAP)
Double click on Business Transactions RKL,RKN,RKIL, KSI0,KSII
Element/Group button
Save
Continue
3. Create SKF
Tcode : KK01
SAP Easy AccessAccountingControllingCost Center AccountingMasterData
Statistical Key FiguresIndividual ProcessingCreate (KK01)
Stat. key figure

ITEM

Enter
64

Name

Stat. key fig. UnM.

Testing items
:

EA

(Each)

(Unm = Units of Measure)

Tot Values

Save
4. Creation of secondary cost element
Tcode :KA06
SAP Easy AccessAccountingControllingCost Element AccountingMaster Data

Srinivasa

Kasireddy +91-9959765211

Cost ElementIndividual ProcessingCreate Secondary

Cost Element

1000000026

Valid From :

1.4.2012

Enter
Name

Description :

Testing charges Manual

CElem category :

Testing chrges-Manual
43 (Internal activity allocation)

Save

5. Creating Activity Type Testing hours-Manual

SAP Easy Access Accounting Controlling Cost Center Accounting Master Data
Activity type Individual Processing Create
Tcode: KL01
Activity Type

TSHRM

Valid From :

1.4.2011 to 31.12.9999

Enter
Name

: Testing Hours--Manual

Description :

Testing Hours-Manual

Activity Unit

CCtr categories :

H
*

(All Cost Centre Categories)

Allocation of default values

ATyp Category

Allocation Cost Element

Price indicator

1000000026

Variation Values for Actual Alloccation

Actl Acty Type Cat.

: Blank

Act. price indicator

As in planning
Actual price, automatically based on activity

Save
6. Creation of secondary cost element
65

Tcode :KA06
SAP Easy AccessAccountingControllingCost Element AccountingMaster Data
Cost ElementIndividual ProcessingCreate Secondary
Cost Element

1000000027

Valid From :

1.4.2012

Enter
Name

Description :

Testing charges- Automated

CElem category :

Testing charges-Automated

43 (Internal activity allocation)

Srinivasa

Kasireddy +91-9959765211

Save

7. Creating Activity Type Testing hours-Automated

SAP Easy Access Accounting Controlling Cost Center Accounting Master Data
Activity type Individual Processing Create
Tcode: KL01
Activity Type

TSHRA

Valid From :

1.4.2011 to 31.12.9999

Enter
Name

: Testing Hours- Automated

Description :

Testing Hours-Automated

Activity Unit

CCtr categories :

ATyp Category

(All Cost Centre Categories)

(Manual Entry & Indirect Allocation)

Allocation Cost Element

Price indicator

Actl Acty Type Cat.

: Blank

Act. price indicator

1000000027
Plan price, automatically based on activity
As in planning
Actual price, automatically based on activity

Save
8. Creating Cost Element Group
TCode :KAH1
CO Area

LAP

Cost element group

OH_COST

Enter
Description :

OH Cost
66

Cost Element button

400500
400600
Save

9. Creating Activity Type Group

TCode :KLH1
CO Area

LAP

Activity Type group

TEST

Srinivasa

Kasireddy +91-9959765211

Enter
Description :

Testing

Activity Type button

TSHRA
TSHRM
Save

10. Define Splitting Structure

TCode : OKES
SPROControllingCost Center AccountingActual PostingsPeriod-End Closing
Activity Allocation SplittingDefine Splitting Structure
Double click on Splitting rules folder
New Entries
Rule

Text

Meth Wt

LAP1

21

Enter
Select rule LAP1
Double click on Selection for rules folder
New Entries

Field Label From Value

Version

(Co area LAP/ version 0)

67

Double click on Splitting Structures folder

New Entries
Structure Text
L1

LAP Splitting Structure

Enter
Select structure L1
Double click on Assignments folder

Srinivasa

Kasireddy +91-9959765211

New Entries
Assignment

Text

LA1

Rule

Text

LAP1

Enter
Select assignment LA1
Double click on Selection for assignments folder
New Entries
Field Label

From Value

To Value

Group

Cost Element
Acivity Type

Save
Continue

11. Assign Splitting Structure to Cost Centers

Same Path

Cost centre

All versions
Fiscal Year

1009

201x

Change button

1009

Click on L1 under splitting Structures

68

Assign button(

Save
Continue

Category 3 Direct entry

Indirect Allocation

Category 2 Indirect entry Indirect Allocation

Srinivasa

Kasireddy +91-9959765211

Planning :
Activity planning allowed

Activity planning not allowed

Price can be calculated

Price cant be calculated because sender quantity is

unknown

Actual:
Enter Sender Activity

Enter Sender Activity not allowed

Price can be calculated

Price cant be calculated sender quantity is unknown

Quantity and cost can be

allocated

Only quantity can be allocated

Sender quantity is determined only after activity
allocation
Then only we can calculate the price

Sender Quantity : 720 hrs

Allocated Quantity :

Allocated quantity : 300*1hr +200*1hr+220*1hr = 720 hr

720 items *1hr = 720 hrs

300+200+220 hrs
Allocation Basis :
300:200:220 items

12. Define Cost Component Structure

SPROControllingCost Center AccountingActual PostingsPeriod-End Closing
Activity AllocationPrice CalculationSettings for Cost Component Split Define Cost
Component Structure
TCode:OKTZ
Double click on Define Cost Component Structure folder
Select Cost Comp Str 01
Copy As button
Cost Comp Str Active Prim.Cost Comp .Split Name
L2

LAP Actvity Cost Comp Str

Enter
69

Enter to confirm the message

Select Cost Comp Str L2
Double Click on Cost Components with Attributes folder
Change the name as shown in the table
Cost Comp Str Cost Com Name of Cost Comp
L2

10

L2

30

L2

50

L2

90

Srinivasa

Kasireddy +91-9959765211

Delete the remaining cost components

Save
Double Click on Assignment :Cost Component Cost Element Interval folder
New Entries button
Cost Comp Str Chart of Accts

From cost el. Cost Component

L2

LACA

30

L2

LACA

50

L2

LACA

90

Save
Double click on Define Cost Component Structure folder
Cost Comp Str Active Prim.Cost Comp .Split Name

L2

LAP Actvity Cost Comp Str

Save
13. Change Revaluation/Price calculation/Cost comp Structure
settings in Version 0
TCode : OKEQ
SPROControlling General ControllingOrganizationMaintain Versions
Select version 0
Double click on Settings for Each Fiscal Year folder
Controlling Area :

LAP

Version

Enter
Double click on the current fiscal year
Price calculation tab
70

Purely Iter. Price

Plan
Method

Periodic price

Periodic price

Actual
Method

Revaluation

Same line

Cost Comp. Str. :

Kasireddy +91-9959765211

Save
(Repeat the process for other fiscal years)
14. Allocation method (Indirect Activity Allocation):

1. Creation of Indirect Activity Allocation Cycle

TCode

KSC1

SPROControllingCost Center AccountingActual PostingsPeriod-End Closing

Activity Allocation Indirect Activity AllocationDefine Indirect Activity Allocation
Double click on Create actual indirect activity allocation
Cycle

Start Date :

LAP4
1.4.2012

Enter
Text :

Allocation of testing activity

Attach segment button

Segment Name :

TEST_A

Description

Tstng hr-Automate Allocation

Srinivasa

Sender Rule

1 posted quantities

Share in %
:
100

Actual value origin

Receiver rule
:
Variable portions
Var . portion type :

Actual Statistical Key Figures

Senders/Receivers tab:
From

To

Group

Sender
Cost Centre

1009

71

Activity Type

TSHRA

PROD

Receiver
Cost centre
Receiver Tracing Factor tab:
From
Stat. key fig.

ITEM

Srinivasa

Kasireddy +91-9959765211

Attach segment button

Segment Name :

TEST_M

Description

Tstng hr-Manual Allocation

Sender Rule

Quantities caulated inversly

Share in %

Actual values

Receiver rule
:

100

Var . portion type :

Actual Statistical Key Figures

Variable portions

Senders/Receivers tab:
From

To

Group

Sender
Cost Centre

1009

Activity Type

TSHRM

PROD

Receiver
Cost centre
Sender Values tab:
Sender
Cost Ctr ActTyp
1009

Factor per 100 AUn

TSHRM

100 H

Receiver Tracing Factor tab:

From
Stat. key fig.

ITEM

Save
72

2. Enduser

1. CC Planning
Tcode

KP06

Version

From

Period

Srinivasa

Kasireddy +91-9959765211

To

Perod

12

Fiscal Year

201

Cost centre

1009

Cost element
group:

Form based
Overview Screen button

OH_COST

Costelement Plan fixed cost Distribution

400500

1 (Equal distribution)

400600

Post
2. Activity planning for TSHRA/ TSHRM
SAP Easy AccessAccountingControllingCost Centre AccountingPlanningActivity
Ouput /PricesChange
Tcode : KP26
Version

From

Period

To

Perod

0
:

Fiscal Year

2011

Cost centre

1009

Activity Type
group:

Form based

Overview Screen button

Activity Type

TEST

Plan Activity

EquiNo

TSHRA

TSHRM

(EquNo is the basis for splitting)

Make sure the activity type category is correct before posting and going further.

73

3. Splitting (Planned cost)

TCode : KSS4
Same path
Controlling Area

Enter

Cost centre

Version

1009

Period

Fiscal Year

201x

Test Run

Details List

LAP

Execute

Srinivasa

Kasireddy +91-9959765211

Post

(Splitting should be in 2:1 ratio )

Cost Element button(to cost element wise splitting)
74

Back button
Yes button to leave the list
Test Run
Execute

4. Calculating Activity Price(planned) for TSHRA

Upto Cost Centre Accounting same path
PlanningAllocationsPrice Calculation

Srinivasa

Kasireddy +91-9959765211

Tcode
:
KSPI

All Cost Centres

Version
:
0
Period

Fiscal Year

Test Run

Details List

To

2011

Execute
Display primary cost component split :
Select a line Goto menuComponents

Save
Enter
Back button
(Activity price only calculated for TSHRA and should be 33.33 )

75

5. Enter SKF
Tcode : KB31N
Up to Cost Center Accounting same path
Actual PostingsStatistical Key FiguresEnter
Rec. CCtr

StatKF

Total Quantity

1001

ITEM

300

1002

ITEM

200

1003

ITEM

220

Srinivasa

Kasireddy +91-9959765211

Save
6. Posting of Rent & Salary in CC 1009
Tcode : F-02
40

Salary

40

Rent

50

Cash

7. Sender activities for TSHRA

TCode

:KB51N

Send. CCtr SAtyTyp

1009

Total Quantity

TSHRA

Save

8. Indirect Activity Allocation

T code : KSC5
Up to Cost Center Accounting same path
Period-End ClosingSingle FunctionsAllocations Indirect Activity Allocation
Period

Fiscal

Year :

Test Run

Details Lists

To

2012

Cycle
LAP4
Enter
76

Execute
Segments button
Select segment TEST_A
Line items button(

Unhide total quantity column.

(Quantity and costs are allocated . Actiivty type is valuated with planned price.)
Back button
Select segment TEST_M

Srinivasa

Kasireddy +91-9959765211

Line items button(

(Only quantity is allocated as planned price/manually set price is not availlable.)

Back button 2 twice
Yes button to leave the list
Test Run
Execute

9. Cost Centre Report

Tcode : KSB1
CostCenter :

1009

Execute
(Only quantity is allocated for activity type TSHRM .
Both quantity and cost both are allocated for activity type TSHRA )
77

Kasireddy +91-9959765211
Srinivasa

10. Price Calculation(Actual)

T code : KSII
Up to Cost Center Accounting same path
Period-End ClosingSingle FunctionsPrice Calculation

All Cost Centres

Period

Fiscal Year

Test Run

Details List

To

2011

Execute
(Activity price should be 37.00 For TSHRA 75 for TSHRM)
Save
Yes button
Back button

11. Cost Centre Report

Tcode : KSB1
CostCenter :

1009

Execute

78

For TSHRA diference amount is posted)

Srinivasa

Kasireddy +91-9959765211

(Apart from quantity allocated , costs allocated should be displayed for TSHRM.

79

8. Direct Activity Allocation

Cost center plant maintenance gives maintenance service to 3 production cost centers.
Activity type to be allocated is Maintenance hours(MNTHR) of category 1 ie Manual entry,
manual allocation
Sender Cost Center

Reciving cost Center

1001

1008(Plant maintanance) 1002

Kasireddy +91-9959765211

1003

Business transaction involved is RKL . Allocation method is called direct activity

allocation.
The allocated activity quantities are

(Eg :Sender can be OH cost center and receiver can be a production cost center )
or
Direct allocation happens automatically through production order confirmations (TCode :
CO11N)
(Eg : Sender is production cost center receiver is a cost object . Cost object can be a
production order or a product cost collector)
In this scenario activity type is valuated initially by planned price which is set
manually(plan price indicator 3 ). At the time of actual price calculation activity type is
revaluated and difference is allocated to receivers.

1. Settings
1. Create Cost Centre
Tcode : KS01
Extras menuSet Controlling Area
Controlling Area :

Srinivasa

entered directly using TCode KB21N .

LAP

Enter
Cost Centre

1008

Valid From :

1.4.2012

Enter
Name

Descritpion :

Plant maintanance

Person responsible

Plant maintanance
:

Cost Center Category :

MR. k
2
80

Hierarchy area

Business Area
Currency

STD_HIER
:

LANZ

INR

Save
Enter to ignore the warning msg

2. Creation of secondary cost element

Tcode :KA06
SAP Easy AccessAccountingControllingCost Element AccountingMaster Data

Srinivasa

Kasireddy +91-9959765211

Cost ElementIndividual ProcessingCreate Secondary

Cost Element

1000000029

Valid From :

1.4.2012

Enter
Name

Description :

Plant Maintenance Charges

CElem category :

Plant Maintenance Charges

43 (Internal activity allocation)

Save

3. Creating Activity Type Maintenance hours

SAP Easy Access Accounting Controlling Cost Center Accounting Master Data
Activity type Individual Processing Create
Tcode: KL01
Activity Type

MNTHR

Valid From :

1.4.2011 to 31.12.9999

Enter
Name

: Maintenance hours

Description :

Maintenance hours

Activity Unit

CCtr categories :
ATyp Category

H
*

(All Cost Centre Categories)

Allocation Cost Element

1000000029

Price indicator

Determined manually

Act. price indicator

Actual price, automatically based on activity

Save
81

4. Create No. Ranges interval for Business transaction RKL

Tcode : KANK
CO Area

LAP

Maintain Groups Button

No. Range for CO Document (LAP)
Double click on Business Transactions RKL,
Element/Group button
Save
Continue

Srinivasa

Kasireddy +91-9959765211

2. Enduser
1. Posting of Rent & Salary in CC 1008

2. Cost Centre Report

Tcode : KSB1
CostCenter :

1008

Execute
3. Set Activity price(planned) manually
SAP Easy AccessAccountingControllingCost Centre AccountingPlanningActivity
Ouput /PricesChange
Tcode : KP26
Version

From

Period

To

Perod

0
:

12

Fiscal Year

2011

Cost centre

1008

Activity Type
:

Form based

Overview Screen button

Activity Type

Fixed price

MNTHR

100

MNTHR

Make sure the activity type category, price indicator is correct before posting and going
further.
Post

82

4. Direct Activity Allocation

TCode

:KB21N

Up to Cost Center Accounting same path

Actual PostingsActivity AllocationEnter
Scrn var.: Cost center
Send. CCtr SAtyTyp

Input Type :

List Entry

Rec.CCtr Total Quantity

Post

Srinivasa

Kasireddy +91-9959765211

5. Cost Centre Report

Tcode : KSB1
CostCenter :

1008

Execute

6. Price Calculation
T code : KSII
Up to Cost Center Accounting same path
Period-End ClosingSingle FunctionsPrice Calculation

Cost Centre group

Period
:
2
To
Fiscal Year

Test Run

Details List

2011

Execute
(Activity price should be 112.50)
83

Save
Yes button
Back button

7. Cost Centre Report

Tcode : KSB1
CostCenter :

1008

(Balance should be 0 in the sender CC )

Srinivasa

Kasireddy +91-9959765211

Execute

84

9. Internal Orders(I.O)
Scenario1 : (Telephone wise expenses )
There is one GL account Telephone Expenses and there are 5 telephones
Problem

Solution

How to record telephone wise expenses ?

: Create an I.O for each telephone. While posting Tel phone expenses
in FI, TeI No can be entered in Internal order field.

Scenario 2 : (Vehicle wise expenses)

there are 10 vehicles.
Problem

How to display vehicle wise expenses.

Solution

Create an I.O for each vehicle

Scenario 3

: (Event wise expenses)

There is a cost centre for sales department. Several activities like promotional events
happen in the department. For every event certain expenses incur .
Problem

Event wise expenses are to be recorded.

Solution

Create an I.O for each event .

Cost Centre & Internal Orders :

Internal Orders are of two types Real and Statistical.
Statistical IO : are used merely for reporting purpose.
In the following two cases, CC is the real CO -object and IO is statistical object.
Case1 :
While posting in FI , CO-object like Cost centre should be entered apart from IO .

Srinivasa

Kasireddy +91-9959765211

There is one GL account Petrol Exp and one GL account Vehicle Maintenance and

Case2 :
85

IO can be assigned to a CC(as shown in the next image).

Srinivasa

Kasireddy +91-9959765211

While posting in FI, only IO need to be entered.

Real IO : are used for settlement purpose .While posting in FI , only IO should be entered.
Amount in the IO can be settled to Cost centre(s) later . Balance in the IO becomes zero
after complete settlement .

1. Settings
1. Creation of internal Order Types
SPROControllingInternal ordersOrder Master DataDefine Order types
New Entries
Order category

01

ie Internal Order (Controlling)

Enter
Order type :

TEL

Description :

Telephone

Planning profile :

000001

Object class

Overhead cost

Release immediately
Assign/change interval button (next to Number range interval)
Yes button
Continue
86

Not assigned
Click on TEL
Element/Group button
Double click on Motor pool A-zzzzzzzz(external)
Save
Continue

2. Creation of FS Group
Tcode:OBC4

Kasireddy +91-9959765211

Select FStV LAFS

Double click on Field status groups folder
Select Field status group G002
Copy as button
Change the Field Status group to G015
Change the Text to Cost accounts (CC req &IO Optinl)
Enter
Double click on FSG G015
Double click on Additional account assignment
CO/PP order
Save
Continue

3. Creation of Tel expenses A/C

Tcode : FS00
Select GL account 400500 Salaries
Copy button
GL account:

Srinivasa

Optional.Entry

400581

Enter
Change the Description to Telephone expenses
Create/Bank/interest tab
Change Field status group to G015
Save
Edit Cost element button
Valid from :

1.4.2.2012

Enter
Cost Elem Category

01
87

Save

4. Creation of Internal order

Tcode: KO01
SAP Easy AccessAccountingControllingInternal OrdersMaster DataSpecial
FunctionsOrderCreate
Order type :

TEL

Enter

Srinivasa

Kasireddy +91-9959765211

Order

Tel 040230900

Description :

Tel 040230900

Company Code :

LAP

Business area

LANZ

Control data Tab

Statistical order

Info:Select the check box to make it a statistical IO , else it will be a Real IO

Save
Order type :

TEL

Enter
Order

Description

Tel040230901
:

Tel040230901

(Other fields same as before)

Save

5. Creation of IO group
Tcode : KOH1
Same path upto Master DataOrder Group
Create
Order Group

: HYD_TEL

Enter
Description

Hyd telephones

Insert order button

HYD_TEL
Tel040230900
Tel040230901
Save

88

2. End User
1. Posting Telephone Expenses
Tcode :F-02
PstKy

40 Account

Amount

18000

Cost centre

1001

Text

Telephone expenses

PstKy

50

400581

TEL040230900

200691

Enter
Order

Account

Srinivasa

Kasireddy +91-9959765211

Enter
Amount
Business area
Text

:
:

LANZ

Document MenuSimulate
Post
Post one more document for IO TEL040230901

2. Display IO Report
Tcode :KOB1
Up to Internal Orders same pathInformation System Reports for Internal OrdersLine
itemsOrders: Actual Line Items
Order Group

HYD_TEL

Cost element

400581

Execute
3. Planning order wise
Tcode : KPF6
Up to Internal Orders same path
PlanningCosts & Activity inputsChange
Version

From period

To period

12

Fiscal Year

2012

Order group

HYD_TEL

Cost Element
:
400581

Form-Based

Overview Screen button

Total plan costs

Distribution key
89

240000

Next Combination button (Down arrow)

Total plan cost

Distribution key

120000

Save

Up to Internal Orders same path

Information SystemReports for Internal OrdersPlan/Actual Comparisons
Order: Actual/Plan /Variance
Controlling area :

LAP

Fiscal Year

2012

From Period
To Period

:
:

Plan version

Order group

HYD_TEL

Cost element group

Blank

Or value(s)

400581

Execute

Srinivasa

Kasireddy +91-9959765211

4. Display Variance Reports

90

10. Real IO with settlement to CC

Eg : Real IO : Promtional event
Real IO : are used for settlement purpose .While posting in FI , only IO should be entered.
Amount in the IO can be settled to Cost centre(s) later . Balance in the IO becomes zero
after complete settlement .
Requirement : Costs should be captured under a promotional event for the sake of
analysis.

Srinivasa

Kasireddy +91-9959765211

Also the costs should be recorded in CC Sales promotion.

1. Settings

1. Creation of FS Group
Tcode:OBC4
Select FStV LAFS
Double click on Field status groups folder
Select Field status group G002
Copy as button
Change the Field Status group to G016
Change the Text to Cost accounts (CC &IO Optinl)
Enter
Double click on FSG G016
Double click on Additional account assignment
Cost Center
CO/PP order
Save

Opt.Entry

Continue

2. Creation of G/L Promotional expenses

Tcode : FS00
91

Select GL account 400500 Salaries

Copy button
GL account:

400518

Enter
Change the Description to Promotional expenses
Create/Bank/interest tab
Change Field status group to G016
Save
Edit Cost element button
Valid from :

1.4.2.2012

Kasireddy +91-9959765211

Cost Elem Category

Srinivasa

Enter

Tcode : KS01

01

Save

3. Creation of secondary cost element

Tcode :KA06
SAP Easy AccessAccountingControllingCost Element AccountingMaster Data
Cost ElementIndividual ProcessingCreate Secondary
Cost Element

1000000036

Valid From :

1.4.2012

Enter
Name

Promotional Expenses

Description

Promotional Expenses

CElem category :

21 (Internal Settlment)

Save

4. Create Cost Center

Extras menuSet Controlling Area
Controlling Area :

LAP

Enter
Cost Centre

1017

Valid From :

1.4.2012

Enter
Name

Sales &Promotion
92

Descritpion :

Sales &Promotion

Person responsible

MR. k

Cost Center Category :

Hierarchy area

Business Area

P Sales & Marketing

STD_HIER
:

Currency

LANZ

INR

Save
Enter to ignore the warning msg

Kasireddy +91-9959765211

SPROControlling Internal ordersActual posting SettlementMaintain allocation

structures

Srinivasa

5. Maintain allocation structure:

Select

New Entries
Allocation structure

Text

L1
IO-->CC settlment LAP

Save
Continue
Select Allocation structure L1
Double click on Assignments folder
New entries
Assignment

: LA1

Text

Promotional Expenses

Save
LA1

Double click on Source folder

Controlling Area

LAP

Enter
From cost element : 400518 expenses
Save
Continue
93

Double click on Settlement cost elements folder

New entries button

Receiver cat By cost element Settlement cost elem Name

CTR

1000000036

Save

Srinivasa

Kasireddy +91-9959765211

6. Maintain settlement profiles:

Same path
Double click on Maintain settlement profiles
New entries
Settlement profiles

LAP1

Description

IOCC LAP

To be settled in full
Allocation structure

L1

Indicators
100%-validation
%-Settlement
Equivalence number
Amount settlement
Valid receivers
Cost center

: Settlement Required

Other Parameters
Document type

SA

Max.no. distribution rules : 999

Residence time

: 3 months

Save
94

Promotional Expense

Continue

7. Creation of internal Order Types

SPROControllingInternal ordersOrder Master DataDefine Order types
New Entries
Order category

01

ie Internal Order (Controlling)

Srinivasa

Kasireddy +91-9959765211

Enter
Order type :

PEVT

Description :

Promo Events

General parameters
Settlement prof.

LAP1

Planning profile :

000001

Object class

Overhead cost

Release immediately
Assign/change interval button (next to Number range interval)
Yes button
Continue
Not assigned
Click on PEVT
Element/Group button
Double clikc on Motor pool A - ZZZZZZZZZZZZ (external)
Save

8. Maintain number range for settlement documents:

Same path
TCode : SNUM
Maintain groups button
Create button
Group :
From No.

Settlemnt Docs LAP

To Number

95

090000000 0999999999
Save
Continue
Back button
Non-Assigned Elements
Click on LAP
Element/Group button

Srinivasa

Kasireddy +91-9959765211

Double click on Settlemnt Docs LAP

Save

9. Maintain Number Ranges for Bus transaction KOAO

Tcode :KANK
CO Area

LAP

Maintan Groups button

Non-Assigned Elements
Click on KOAO
Element/Group button
Double click on No. ranges for CO documents (LAP)
Save

2. End User
1. Creation of Internal order & Settlement rule
Tcode: KO01
SAP Easy AccessAccountingControllingInternal OrdersMaster DataSpecial
FunctionsOrderCreate
Order type :

PEVT

Enter
Order

Description :

EXHST_LAP
Exhibition stall

Company Code :

LAP

Business area

LANZ

Control data Tab

Statistical order
Info: Do not select the check box for a Real IO
96

Goto menuSettlement Rule

New rule button(

Settlement Reciever
Cost Center

1017

Percent

100 %

Valid from

1..201x

to Blank

Srinivasa

Kasireddy +91-9959765211

Save

2. Posting Expenses
Tcode :F-02
PstKy

40 Account

Amount

18000

Cost centre

Blank

Text

Ehibition stall rent

PstKy

50

400518

Enter
Order

Account

: EXHST_LAP
:

200691

Enter
Amount
Business area
Text

:
:

LANZ

Document MenuSimulate
Post

3. Display IO Report
Tcode :KOB1
Up to Internal Orders same pathInformation System Reports for Internal OrdersLine
itemsOrders: Actual Line Items
Order

EXHST_LAP

Cost element

Blank

Execute

4. Settlement :
TCode : K088
Accounting ControllingInternal orderPeriod end closingSingle
97

functionsSettlement Individual processing

Order
Settlement period

:
:

EXHST_LAP
Current month

Fiscal year

201x

Test run
Check transaction data
Execute
Details list button(

Srinivasa

Kasireddy +91-9959765211

Back button twice

Test run
Execute

5. Display IO Report
TCode :KOB1
Up to Internal Orders same pathInformation System Reports for Internal OrdersLine
itemsOrders: Actual Line Items
Order

EXHST_LAP

Cost element

Blank

Execute

6. Display CC Report
TCode :KSB1
Cost center

1017

Cost element

Blank

Execute

98

11. Real Time Integration (New GL)

Real Time Integration is a component of New-GL . Previously if users make any
cross company code postings in CO , these transactions do not reflect in FI. Users had to
process a job at month end to allow the system to reconcile the differences and post
corresponding entries in FI ledger. With the new GL, this reconciliation and posting of entry
in FI ledger has become an automatic process .
Scenario : Allocation of costs from CC1 to CC2 . CC1 and CC2 are two costcenters which
belongs to different company codes (Cross company code allocation) . FI posting should
happen automatically in two company codes .

Kasireddy +91-9959765211

Prerequisites :
1

The two company codes must belong to same CO-Area

The two company codes must have same Chart of accounts.

1. Settings :
1. Create second company code ie LAC
Company code LAC should be assigned with
1. same Chart of accounts that is assigned to LAP.
2. same Co-Area that is assigned to LAP
SPROEnterprise StructureDefinitionFinancial AccoutingEdit,Copy,Delete,Check
Company Code
Double click on Copy, delete, check company code
Copy Org Object button
From Company Code : LAP
To Company Code : LAC

Srinivasa

Enter
Yes button to create GL Account Data
No button for different local currency
Enter to ignore the msg
Enter
Yes button to transport number ranges
Continue
Keep on pressing Enter
99

Yes button to transport intervals

Continue
Enter

2. Assign Co-Area
Tcode : OKKP
Double Click on Co-area LAP

Srinivasa

Kasireddy +91-9959765211

CoCd->CO Area : Cross-companycode cost accounting

Double Click on Assignment of company code(s) folder
New Entries button
CoCd Company Name
LAC
Save
Continue
3. Activate CoCd Validation in Co-Area
TCode : OKKP
Double Click on Co-Area LAP
Double click on Activate component/control indicators folder
CoCd Validation
Save
Continue
Enter to Ignore wrn msg

4. Deactivate Reconcilition Ledger:

We have to deactivate the Reconcilition Ledger ,(if it is activated ) before using Realtime
Integration.We can use Tcode : OKKP to check the status.

100

We can skip this step in the lab.

Tcode : KALB
SPROControllingCost Element AccountingReconciliation
LedgerActivate/Deactivate Reconciliation Ledger
Deactivate Reconciliation ledger
Controlling Area

: LAP

Srinivasa

Kasireddy +91-9959765211

Execute

5. Creation of Cost Center in Comapany code LAC:

TCode : KS01
Extras menu Set Controlliong Area
Controlling Area

LAP

1010

Enter
Cost Center
Enter
Name
Description

Services
:

Services

Person Responsible

mrt

Cost Center Category

Hierarchy area

STD_HIER

Company Code

LAC

Business Area

LANZ

Currency

INR

Save
Enter to ignore the wrng msg

6. Activate intercompany postings in doc type SA.

TCode : OBA7
Double Click on Doc type SA
Inter-company posting
Save
Continue

101

7. Creation of GL accounts in LAP:

Tcode : FS00
Select GL account 400500
Copy button
G/L Account

400509

Enter
Short Text

FICO Recon account

Field status group :

ICCF

ie CO <-> FI reconciliation posting

Save

Srinivasa

Kasireddy +91-9959765211

Select GL account 200700

Copy button
G/L Account

200970

Enter
Short Text

LAC account

Field status group

G067

Save
8. Creation of GL accounts in LAC:
Tcode : FS00
Select GL account 400500
Copy button
G/L Account

400509

Enter
Field status group :

ICCF

ie CO <-> FI reconciliation posting

Save
Select GL account 200700
Copy button
G/L Account

200971

Enter
Short Text

Field status group

LAP account
:

G067

Save
Block GL account 200971 for creation in company code LAP
Block GL account 200970 for creation in company code LAC
102

9. Define Variants for Real time Integration:

SPROFinancial Accounting (New) Financial Accounting Global Settings (New)
Ledgers Real-Time Integration of Controlling with Financial Accounting Define
Variants for Real-Time Integration
New Entries
Var. for R-T Integ. : L1
R.-Time Integ:Active

Key Date:Active from : 1.4. 2012

Kasireddy +91-9959765211

Acct Deter. :Active

Document Type

SA

Ledger Group (FI)

0L

Text
:

Use Checkboxes

Cross-Company-Code

Varaint for LAP

Cross-Profit-Center
Cross-Business-Area
Save
Continue

10. Assign Varaints for Real-Time Integration to Company

Codes:
Same Path
Assign Variants for Real-Time Integration to Company Codes

Srinivasa

New Entries
Company Code

Variant for Real-Time Integration

LAP

L1

LAC

L1

Save
Continue

11. Define Intercompany Clearing Accounts:

Upto Real-Time Integration of Controlling with Financial Accounting same path
103

 Define Account Determination for Real-Time IntegrationDefine Intercompany Clearing

Accounts
Alterantive path1 :
SPROControllingCost Element AccountingReconciliation LedgerDefine Adjustment
Accounts for Reconciliation Posting
Double click on Maintain Clearing Accounts for Company Codes
Tcode : OBYA
Alterantive path2:

Company code 1

LAP

Company code 2

LAC

Enter
Posted in

LAP

Cleared against :

LAC

Debit posting key : 40

Account debit
Posted in

: 200970
:

LAC

Cleared against :

LAP

Debit posting key : 40

Account debit

: 200971

Credit posting key : 50

Account credit

: 200970

Credit posting key :

Account credit

Save
Continue

Srinivasa

Kasireddy +91-9959765211

SPROFinancial AcccoutningGeneral Ledger AccountingBusiness Transactions

Prepare cross company code transactions

104

: 200971

50

Kasireddy +91-9959765211

12. Define Account determination for Real-Time Integration:

Tcode:OK17
Upto Define Account Determination for Real-Time Integration same path
Define Account determination for Real-Time Integration
Alterantive path :
SPROControllingCost Element AccountingReconciliation LedgerDefine Adjustment
Accounts for Reconciliation Posting
Double click on Define Accounts for Automatic Postings
Tcode : OBYB
Controlling Area

LAP

Srinivasa

Enter
Change Account Determin. Button
Save
Account
400509
Save
Continue

2. Enduser
105

1. Posting expenses to common CC (1004)

Tcode F-02
Post one document for Salary in company code LAP
Amount

18000

Cost Centre

1004

2. Reposing of Costs:
Tcode: KB11N
Extra menuSet Controlling area
Controlling Area :

LAP

Kasireddy +91-9959765211

Enter
CCtr (old)

Cost Elem.

Amount

CCtr (new)

1004

400500

7000

1010

Post

3. Displaying CO document:
TCode : KSB5
Document Number

: 900000000X

Execute
Click on CO document
Enviroment menu-Accounting Documents
(Two FI documents are generated , one in company code LAP the other one in Company
code LAC)
Double click on the Accounting document to be displayed.

Srinivasa

Entry in LAP Should be :

Cr Salaries

7000.00-

Dr LAC account 7000.00

Entry in LAC Should be :
Dr Salaries

7000.00

Cr LAP account 7000.00-

106

12. Sales/Purchase Tax

Sales tax

Output tax

Purchase tax

Input tax

VAT : Value Added Tax

Srinivasa

Kasireddy +91-9959765211

VAT is a mode of collection of tax

Purchase of RM

Sale of FG

Pay purchase tax to Vendors

Collect Sales tax from Customers

5000 Rs

7000 Rs

The diff is 2000. This amount is to be remitted to tax authority.

3. Settings
1. Define Tax procedure:
SPROFinancial accounting Financial accounting Global settingsTax on
Sales/Purchases Basic settingsCheck Calculation Procedure
Double click on Define Procedures
New Entries
Procedu
re

Description

TAXIN

Ind Tax procedure(LAP)

Save
Create Request button
Short Description:

Sales/Pur Tax Settings (LAP)

Enter
Continue
Select Tax Procedure TAXIN
Double click on Control Data folder
New Entries
Step Ctyp

Description

100

BASB

Base amount

110

MWAS

Output Tax

120

MWVS Input tax

Fro

To

AccKey

100 100 MWS

100 100 VST

Save

107

2. Assign Country to Calculation procedure :

Same path
Position
Country

IN

Enter
Ct
y

Proc

IN

TAXIN

Save
Continue

Kasireddy +91-9959765211

Tax is configured at country level but not at Comp Code level. This setup is going to work
for all Comp Codes which belongs to India .

Srinivasa

Info:

InputTax

3. Define Tax Codes for Sales and Purchases

Upto Tax on Sales/Purchases same path
Calculation Define Tax Codes for Sales and Purchases
Country

IN

V0

Enter
Taxcode
Enter
Description :

0% input tax

Taxtype

Check ID

ie inputtax

Continue
Keep the cursor on Output tax(Click)
Deactivate line button
:

V1

Save
Taxcode
Enter
Description :

4% input tax

Taxtype

Check ID

ie inputtax

Continue
108

Keep the cursor on Output tax(Click)

Deactivate line button
InputTax

A0

Save
Taxcode
Enter
Description :

0% output tax

Taxtype

Check ID

ie outputtax

Srinivasa

Kasireddy +91-9959765211

Continue
Keep the cursor on Input tax(Click)
Deactivate line button
OutputTax :

Save
Taxcode

A1

Enter
Description :

14.5% output tax

Taxtype

Check ID

ie outputtax

Continue
Keep the cursor on Input tax(Click)
Deactivate line button
OutputTax :

14.5

Save

4. Creation of 2 GL accounts
a. VAT Payable
Tcode: FS00
Select GL account 100800 Expenses payable
Copy button
GL account

100530

Enter
Description :

VAT Payable

Control Data tab

Tax Category

>

ie Output Tax Account

109

Create/Bank/Interest tab
Field status group

G041

Save
b. VAT Recievable
Select GL account 100530 VAT Payable
Copy button
GL account

200530

Account Group

Assets

Description

VAT Receivable

<

Kasireddy +91-9959765211

Enter

Control Data tab

Tax category

ie Input Tax Account

Save

5. Change GL accounts Sales, Inventory RM

Tcode :FS00
Select GL account 300510 Sales
Change button
Control Data Tab
Tax category

ie Only output tax allowed

Posting without tax allowed

Save
Enter to Ignore the Wrng Msg
Select GL account 200700 RM inventory

Srinivasa

Change button
Control Data Tab
Tax category

ie Only input tax allowed

Posting without tax allowed

Save
Enter to Ignore the Wrng Msg

6. Define Tax acounts

Upto Tax on Sales/Purchases same path
110

Posting Define Tax accounts

Double click on transaction MWS
Chart of accounts

( Output tax)

LACA

Enter
Save
Account
100530
Save button
Continue

Srinivasa

Kasireddy +91-9959765211

Back button
Double click on transaction VST

( Input tax)

Save
Account
200530
Save
Continue
7. Define Tax Determination Rules
SPROSales and Distribution Basic FunctionsTaxes Define Tax Determination
Rules
New entries
Tax count

Name

IN

Seq

Tax Categ

Name

MWST

Taxble

Save

8. Define Tax Relevancy Of Master Records

SPROSales and Distribution Basic FunctionsTaxesDefine Tax Relevancy Of
Master Records
Double click on Customer Taxes
New entries
Tax categ

Tax class

Description

MWST

Taxable

MWST

No tax

Back button
Double click on Material Taxes
New entries
111

Tax categ

Tax class

Description

MWST

Taxable

MWST

No tax

Save

4. Enduser
1. Posting Pur Inv

Srinivasa

Kasireddy +91-9959765211

Tcode: F-43
PstKy

31 Account

LAPGNVNDR

200700

Enter
Amount

27000

Calculate Tax
Bus. Area :

LANZ

Text

Pur inv

PstKy

40 Account

Enter
Amount

Tax Code :
Busi Area :
Text

V1
LANZ
+

Document menuSimulate
Post

Entry should be:

31 LANZ LAPFIVNDR LAP vndr

27.000,00-

40 LANZ 0000200700 RM inventory

40

0000200530 VAT Recievable

25.714,29
1.285,71

2. Posting Sales Inv:

Tcode :F-22
PstKy

01 Account

LAPGNCUST

Enter
112

Amount

18000

Calculate Tax
Bus. Area :
Text
PstKy

LANZ
:

Sales inv
50 Account

300510

Enter
:

Tax Code :

A1

Bus Area :

LANZ

Text

Document menuSimulate
Post
Entry should be
01 LANZ LAPFICUST LAP fi customer

18.000,00

50 LANZ 0000300510 Sales

15.720,52-

50

2.279,48-

100631 VAT payable

Srinivasa

Kasireddy +91-9959765211

Amount

113

7. MM Integration
LIVE project
MM Configuration MM consultant
FI Configuration

FI consultant

FI-MM Integration FI Consultant

Srinivasa

Kasireddy +91-9959765211

Learning environment
MM Configuration

FI consultant

FI Configuration

FI consultant

FI-MM Integration

FI Consultant

1. MM configuration
1. Maintain Calendar:
SPROSAP Net weaverGeneral SettingsMaintain Calendar

Public holidays

Change button
Create Button

With fixed date

Enter
Day :

15

Month
:
8

Not Guaranteed

Short holiday name

Independence day

Long holiday name

Independence day

Enter
Continue
Back button

Holiday Calendar

Change button
Create button
Calendar ID

LC

Description : holiday calendar for LAP

Assign Holiday button
114

Select holidays to be included

Assign publ. holiday button
Save
Continue
Back button twice

Factory calendar

Change button
Create button
Factory calendar ID

Description

Factory calendar for LAP

Srinivasa

Kasireddy +91-9959765211

Holiday calendar ID

LF

LC

Workdays
Select Monday to Saturday
Save
Continue

2. Define plant:
SPROEnterprise StructureDefinitionLogistics-GeneralDefine, Copy, delete, check
plant
Double click on Define Plant
New Entries
Plant

LAP1

Name

Factory calendar :

LAP Hyd plant

LF

Save
Name

Country

IN

Region

01

City

Hyd

LAP Hyd plant

Enter
Create Request button
Short Description

MM configuration for LAP

Enter
Continue
Next entry button
Plant

LAP2

Name

LAP mum plant

115

Factory calendar :

LF

Save
Name

Country

IN

Region

13

City

Mum

LAP mum plant

Enter
Continue

Srinivasa

Kasireddy +91-9959765211

Next entry button

Plant

LAP3

Name

Factory calendar :

LAP Chennai plant

LF

Save
Name

LAP Chennai plant

Country

IN

Region

22

City

Chennai

Enter
Continue

3. Define Division:
Same path
Define, copy, delete, check division
Double click on Define Division
New Entries
Division Name
LS

Small Cars

Save
Continue

4. Maintain Storage Location:

Up to Definition same path
Materials Management Maintain storage location
Plant

LAP1

Enter
New Entries
116

SLoc Description
LAP1 Hyd Storage Location
Enter
Save
Continue
Plant

LAP2

Enter
New Entries

Srinivasa

Kasireddy +91-9959765211

SLoc Description
LAP2 Mum Storage Location
Enter
Save
Continue
Plant

LAP3

Enter
New Entries
SLoc Description
LAP3 Chennai Storage Location
Enter
Save
Continue

5. Maintain purchasing organisation:

Same path next line
New Entries
Purch. Organisation Purch. Org Descr
LAPO

LAP purchase org.

Save
Continue
117

6. Assign plant to company code:

Up to Enterprise Structure same path
AssignmentLogistics-General Assign plant to company code
New Entries
CoCd Plnt
LAP

LAP1

LAP

LAP2

LAP

LAP3

Save

Kasireddy +91-9959765211

Continue

7. Assign Business Area to Plant/Valuation Area and Division:

Same path next line
Valuation area - division button
New entries
ValA

Dv BusA

LAP1 (Valuation area is nothing but plant

LS

LANZ

LAP2

LS

LANZ

LAP3

LS

LANZ

Save
Continue

8. Assign Purchasing organization to company code:

Up to Assignment same path
Materials ManagementAssign purchasing organisation to company code
Position
Purchasing org

LAPO

Srinivasa

Enter
POrg

CoCd

LAPO LAP
Save
Continue

9. Assign purchase organisation to plant:

Same path next line
New Entries
POrg

Plnt

LAPO

LAP1
118

LAPO

LAP2

LAPO

LAP3

Save
Continue

10. Create Purchasing Groups:

SPROMaterials ManagementPurchasingCreate Purchasing Groups
New Entries
Purchasing Group Desc. Pur.Grp

Srinivasa

Kasireddy +91-9959765211

LPG

LAP purchasing group

Save
Continue

11. Define Material Group:

SPROLogistics-GeneralMaterial MasterSettings for Key FieldsDefine Material
Groups
New Entries
Matl Group Material Group Desc
LAPM

Metals

Save
Continue

12. Maintain Company Code for Material Management:

TCode :OMSY
Up to Material Master same path
Basic SettingsMaintain Company Codes for Material Management
Position
Company code

LAP

Enter
(CAUTION: Enter current period .If you enter wrong period it cant be changed)
Cocd Year
LAP

Period

2012 5(Current period)

ABp

Save
Continue
Note: Material posting starts from the above period . ABp is Allow Back posting .
If ABp is selected 2 periods(current and previous) are allowed , other wise only current
period is allowed.
119

13. Define Attributes of Material Types:

Up to Basic Settings same path
Material typesDefine Attributes of Material types
Position
Material type

FERT

Enter
Select Material Type FERT
Double click on Quantity/value updating folder
Position

Srinivasa

Kasireddy +91-9959765211

Enter
Valuatin area

LAP1

Enter
Valuation area

Materials Qty updating Value Update

LAP1

FERT

LAP2

FERT

LAP3

FERT

Save
Continue
Back button
Position
Material type

ROH

Enter
Select Material type ROH
Double click on Quantity/value updating folder
Postion
Valuation Area

LAP1

Enter
Val .area

Matl type Qty updating Value Update

LAP1

ROH

LAP2

ROH

LAP3

ROH

Save
Back button
Position
Material type

HALB

Enter
120

Select Material type HALB

Double click on Quantity/value updating folder
Postion
Enter
Valuation Area

LAP1

Enter
Val .area

Matl type Qty updating Value Update

LAP1

HALB

LAP2

HALB

LAP3

HALB

Srinivasa

Kasireddy +91-9959765211

Save
Back button
Position
Material type

VERP Packaging

Enter
Select Material type VERP
Double click on Quantity/value updating folder
Postion
Enter
Valuation Area

LAP1

Enter
Val .area

Matl type Qty updating Value Update

LAP1

VERP

LAP2

VERP

Save
Double click on Mtyp FERT
Int. purchase orders : 2

ie Int. purchase orders are allowed

Save

14. Set Tolerance Limits for Price variance ( purchasing order):

SPROMaterial ManagementPurchasingPurchase OrderSet Tolerance Limits for
Price Variance
121

Select TlKys PE, SE for Company code 1000

Copy as button
Change the Company Code to LAP
Enter
Again change the Company Code to LAP
Enter
Save
Continue

15. Plant Parameters

Srinivasa

Kasireddy +91-9959765211

Up to Materials Management same path

Inventory Management and Physical InventoryPlant Parameters
Select Plant 1000
Copy as button
Change the plant to LAP1
Enter
Select Plant 1000
Copy as button
Change the plant to LAP2
Enter
Select Plant 1000
Copy as button
Change the plant to LAP3
Enter
Save
Continue

16. Define Number Assignment for Material and Phys. Inv .Docs
(One time setting)
SPROMaterials ManagementInventory Management and Physical InventoryNumber
Assignment Define Number Assignment for Material and Phys. Inv .Docs
Maintain Groups button
Material documents for goods receipts
WE WF WO WW
Interval menuMaintain
Position the cursor on any interval
122

Edit menuInsert year

Year

From number To number

2013

4500000000

4599999999

(Calendar year)
Enter
Back button
Material documents for goods movements and inventory diffs
WA WH WI WL WQ WR WS WZ
Interval menuMaintain
Position the cursor on any interval

Srinivasa

Kasireddy +91-9959765211

Edit menuInsert year

Year

From number To number

2013

5000000000

5099999999

(Calendar year)
Enter
Save
Continue

17. Set Tolerance Group (for GR):

Same path up to Inventory Management and Physical Inventory
Goods ReceiptsSet Tolerance Limits
Select Tlky

B1, B2, VP for company code 1000

Copy as button
Change Company Code to LAP
Enter
Change Company Code to LAP
Enter
Change Company Code to LAP
Enter
Save
Continue

18. Maintain Default Values for Tax codes:

Up to Material Management same path
Logistics Invoice VerificationIncoming InvoiceMaintain Default Values for tax codes
123

New Entries
Company Code :

LAP

Save
Continue

19. Set Tolerance Limits (for invoice verification):

Up to Logistic Invoice Verification same path
Invoice BlockSet Tolerance Limits
Select Tolerance Keys PP, PS & ST for company code 1000
Copy as button

Srinivasa

Kasireddy +91-9959765211

Change Company Code to LAP (3times)

Enter (3 times)
Save
Continue

20. Define Automatic status change:

Up to Logistics Invoice Verification same path
Invoice Verification in Back groundDefine Automatic Status change
New Entries
CoCd Set correct invoice tocompleted
LAP

Blank

Save
Continue

21. Group together Valuation areas:

Up to Materials Management same path
Valuation and Account AssignmentAccount DeterminationAccount Determination
Without WizardGroup Together Valuation Areas
Position
Valuation area

LAP1

Enter
Valuation Area

Val. Grpg code

LAP1

LAP2

LAP3

Save
Continue

22. Define Valuation Classes:

124

Same path next lineDefine Valuation Classes

Valuation Class button
Select Valuation Class 3000 ( ie Raw material1) ,7900 (ie Semi-finished products) and
7920 ( ie FinishedGoods)
Copy as button
Change Valuation Class 3000 to LAP1
Change Valuation Class 7900 to LAP2
Change valuation class 7920 to LAP3
Enter

Srinivasa

Kasireddy +91-9959765211

Save
Continue

2. FI Consultants Job
1. Changing GL account Inventory RM
Tcode: FS00
Select GL account 200700 (RM Inventory)
Change button
Create /Bank/Interest tab
Field Status Group :

G006 (Material Accounts)

Post automatically only

Save
Enter to ignore the warning message
2. Creating GL accounts
Inventory FG :
Select 200700 (Inventory RM)
Copy button
GL account :

200702

Enter
Description

Inventory FG

Blank

Control Data tab

Tax category

Posting without tax allowed

Save
125

Enter to ignore the warning message

Inventory SemiFG :
Select 200702 (Inventory FG)
Copy button
GL account :

200701

Enter
Description

Inventory SemiFG

Save

Srinivasa

Kasireddy +91-9959765211

Enter to ignore the warning message

GR/INR account
Select 100800 Expenses payable account
Copy button
GL account

100520

GR/INR account

Enter
Description
Control data tab
Tax category

(Minus)

Posting without tax allowed

Sort key

010 (Purchase order No.)

(Make sure Open Item Management is on)

Create/Bank/Interest tab
Field Status Group :

G045 Goods/Invoice Received clearing account

Save
Freight Clrng account
Select G/L account 100520

(GR/INR account)

Copy button
GL account

100521

Enter
Description :

Freight Clrng account

Create/Bank/Interest tab
Field Status Group

G017 Freight/customs provisions/ clearing (MM)

Save
RM Consumption Account
Select 400500 (Salaries)
126

Copy Button
GL account

400599

RM Consumption

Enter
Description

Create/Bank/Interest tab
Field Status Group :

G003 (Material Consumption Account)

Save
Edit Cost Element button
Valid From

01.04.2012

Enter

Srinivasa

Kasireddy +91-9959765211

Cost Elem category

Save
SFG Consumption Account
Select 400599 RM Consumption
Copy Button
GL account

400950

SFG Consumption

Enter
Description
Save
Edit Cost Element button
Valid From

01.04.2012

Enter
Cost Elem category

Save
Cost Of Goods Sold a/c
Select 400500 (Salaries)
Copy Button
GL account

400204

Cost Of Goods Sold a/c

Enter
Description

Create/Bank/Interest tab
Field Status Group :

G030 ie Change in stock accounts

Save
Inc/Dec in stock account
Select 300510 (Sales account)
Copy Button
127

GL Account

300204

Inc/Dec in stock

Blank

Enter
Description
Control data tab
Tax category

Posting without tax allowed

Create/Bank/Interest tab
Field Status Group :

G030 (Change in stock account)

Save

Srinivasa

Kasireddy +91-9959765211

3. Assignment of Accounts:
Tcode: OBYC
SPROMaterial ManagementValuation and Account AssignmentAccount
Determination Account Determination without wizardConfigure Automatic Posting
Cancel button
Account Assignment button
Double click on transaction BSX
Chart of account :

(Inventory posting)

LACA

Enter
Valuation class
Save
Valuation class

Account

LAP1

200700(Inventory RM)

LAP2

200701(Inventory SemiFG)

LAP3

200702(Inventory FG)

Save
Continue
Back button
Double click on Transaction FR1 (Freight clearing)
Valuation modif
Valuation class
Save
Valuation modif

Valuation Class

Account

LAP1

100521

Save
Back button
128

Double click on Transaction WRX (GR/IR clearing account)

Valuation modif
Valuation class
Save
Valuation modif

Valuation Class

Account

LAP1

100520

Save
Back button

Kasireddy +91-9959765211

Double Click on transaction GBB

General modification
Valuation modif
Valuation class
Save
Valuation modif

General Modification Valuation Class

Account

VBR

LAP1

400591

VBR

LAP2(SemiFG)

400990

VAY

LAP3

400204

AUF

LAP3

300204

AUF

LAP2

300204

VAX

LAP3

400204

ZOF

LAP3

300249

ZOB

LAP1

100520

Note: GL account 400599 is RM consumption a/c

300204 is Inc/Dec in stock and
400204 is Cost of Goods Sold a/c

Srinivasa

100520 is GR/INR account

Save
Continue
VBR : RM consumption
VNG : Material Scrapping
ZOB : GR w/o purchase order (movement type 501)
FG Reciept from Production
AUF

ZOF

With Production Order Without Production Order

[PP implemented]

[PP not implemented]

129

FG Delivery to customer
VAY

VAX

Sales A/C as Revenue element

Sales A/C not as a Revenue element

[CO Implemented)

(CO not implemented)

4. Creating No. ranges for Document types WE WA RE

Tcode :OBA7

Srinivasa

Kasireddy +91-9959765211

Double Click on document type WA

Note down the No range 49
Back button
Doubl Click on document type WE
Note down the no range 50
Back button
Double Click on document type RE
Note down the no range 51
In the same screen Number range information button
Company Code :

LAP

Change Intervals button

Interval button
No Year
49

From Number To Number

2012 4900000000

4999999999

Enter
Interval button
No Year
50

From Number To Number

2012 5000000200

5099999999

Enter
Interval button
No Year
51

From Number To Number

2012 5100000000

5199999999

Enter
Save
Continue

130

3. MM End User
Planned delivery costs

Unplanned Delivery Costs

If you know the freight charges at the time of PO

If you dont know the freight charges at

creation, you can enter in PO. During the GR, the

the time of PO creation, you can enter

freight charges will be posted to Freight clrng

them during Inv Verification (MIRO)

account.
Freight charges will be posted to Inventory

There are two options as how to post

Srinivasa

Kasireddy +91-9959765211

account

unplanned delivery cost (This is a CoCd

During freight invoice verification they are

level setting).

transferred to vendor account.

1. Freight charges can be distributed

among invoice items
2. Freight charges can be posted to
Expenses account

Planned delivery costs:

Scenario1 : Goods inv and Freight inv are from single vendor
Solution : Goods inv and Freight inv can be entered in one step
Scenario2 : Freight inv is from a different vendor
Solution : Goods inv and Freight inv have to be entered in separate steps
(We are following scenario 2 ie Transport vendor is separate from goods vendor)

1. Creation of RM master
TCode :MM01
SAP Easy AccessLogisticsMaterials ManagementMaterial MasterMaterialCreate
(General) Immediately MM01
Material

LAPRM

Industry Sector

Mechanical Engineering

Material type

ROH Raw Material

Select View(s) button

Select views Basic data1, Purchasing , General Plant Data / Storage 1 , Accounting 1,
Costing1 and Costing2
Org. Levels button
Plant

LAP1
131

Stor. location

LAP1

Enter
Basic Data1 tab:
Material

LAP RM (Steel)

Basic unit of measures

Material Group

Division

LS

KG

LAPM

Net Weight :

KG

Gross Weight

KG

Purchasing Tab

Kasireddy +91-9959765211

Purchasing Group

LPG

Accounting 1 tab
Valuation class

LAP1

Price Control

Moving Price

200

(Moving Average Price)

Save

2. Creation of Vendor Masters

Tcode : XK01
Vendor

LAPRMVNDR

Company Code :

LAP

Purchase Organisation :
Account Group

LAPO

LARM

Enter
Name

LAP RM vendor

Country

IN

Region

01

Enter 4 times (or Next Screen button 4 times)

Recon. account :

Srinivasa

Sort Key

012

100980 (Sundry creditors)

(Vendor Number]

Cash Management Group

A1

Enter
Payt Terms

0001

Tolerance Group :

blank

Chk double inv

Save

3. Creation of Vendor Masters

Tcode : XK01
132

Vendor

LAPTRVNDR

Company Code :

LAP

Purchase Organisation :
Account Group

LAPO

LARM

Enter
Name

LAP Transport vendor

Country

IN

Region

01

Enter 4 times (or Next Screen button 4 times)

Recon. account :

Srinivasa

Kasireddy +91-9959765211

Sort Key

012

100980 (Sundry creditors)

(Vendor Number]

Cash Management Group

A1

Enter
Payt Terms

0001

Tolerance Group :

blank

Chk double inv

Save

4. Open Period for Current month

(Periodic activity)
Tcode : MMPV
Up to Material Master same path
OtherClose Period
From Company Code

LAP

To Company Code

LAP

Period

5 (Current period)

Fiscal Year
:

Check and close period

Execute

2012

Intialize the closed period : TCode : MMPI can be used to open the period which is closed
by mistake. But this is to be done very carefully. Any postings done in the new period will
have impact if we reopen the previous period and post to it.
User prifle ?

5. Purchase Order Creation:

Tcode : ME21N
Up to Materials Management same path
133

PurchasingPurchase OrderCreateVendor/Supplying Plant Known

Vendor

LAPRMVNDR

LAPO

Enter
Org.Data tab

Kasireddy +91-9959765211

Purch. Org
Purch. Group

Company Code :

LAP

Item Material PO
Quantity

Deliv. Date

Net
Price

Currency

Plnt

Stor.
Location

10

15.08.2012

200

INR

LAP1

LAP1

LAPRM

100

Enter
Expand Item Detail button
Conditions tab
Enter amount for condition type FRB1 as below
CnTy

Name

Amount

FRB1 Freight (Value)

45.00

Messages button to see any errors

Back button
Check button
Save
Note down the purchase order No. 4500017175

6. Goods Receipt
Tcode :MIGO
Up to Material Management same path
Inventory ManagementGoods MovementGoods ReceivedFor Purchase OrderPO
Number Known
Purchase order :

Srinivasa

LPG

4500017175

Enter
Where tab
Storage Location :
Text :

LAP1

GR

Quantity tab
Qty in Delivery Note

100 kg

Item OK
Check button (Document is 0K msg should come)
Post
134

(Note down the material document no 600000030)

7. Displaying Material document

Tcode: MB03
Up to Inventory Management same path
Material DocumentDisplay
Material Document

600000030

Material document year

2012

Enter

Srinivasa

Kasireddy +91-9959765211

Accounting Documents button

Dr. 89 Inventory RM

20,045.00

Cr. 96 GR/INR account

20,000.00

Cr 50 Freight clrng account

45.00

8. Invoice Verification for goods

Tcode : MIRO
Up to Material Management same path
Logistics Invoice VerificationDocument EntryEnter Invoice
Invoice date

Todays date

Calculate tax
Tax code

V1

4%Input tax

Text :

Inv Verifcation

PO Reference Tab
Purchase order/Scheduling agreement 4500017175 Goods/service items
Enter
Select Booking OK for item 1
Enter
Copy the amount in Balance field (red signal)
Paste to Amount field

(without ve sign)

Enter
(Red signal should turn into green signal)
Payment tab
Baseline date

Todays date

Payment term

0001

Simulate button
Close the window
Post
135

Invoice Document menu Display

Follow-On Documents button
LAP RMvendor

20,800.00

GR/INR clrng account

20,000.00

VAT Receivable

800.00

9. Inv Verification for Freight

Tcode: MIRO

Srinivasa

Kasireddy +91-9959765211

Invoice date

Todays date

Calculate tax
Tax code

V0

0%Input tax

Text :

Freight Inv verifcation

PO Reference Tab
Purchase order/Schedulin agreement 4500017175 Planned delivery costs
Enter
Select Booking OK for item 1
Enter
Details tab
Inv. Party

LAPTRVNDR

Enter
Enter to ignore the msg
Basic data tab
Copy the amount in Balance field (red signal)
Paste it to Amount field

(without ve sign)

Enter
(Red signal should turn into green signal)
Payment tab
Baseline date

Todays date

Payment term

0001

Simulate button
Entry should look like the following
Cr LAP TR vendor

45.00-

Dr Freight clrng account

45.00

Close the window

Post
136

10. RM Consumption
Tcode : MB1A
Up to Materials Management same path
Inventory ManagementGoods MovementGoods Issue
Movement type :
Plant

201 (Consumption for CC)

LAP1

Storage location :

LAP1

Kasireddy +91-9959765211

Enter
Cost Centre
Material

Qty

25

1001

LAPRM

Enter
Post
(Document 500000350 generated)
Goods Issue menuDisplay
Material Doc

100000350

Mat. Doc. Year

2012

Enter
Accounting Documents button
Double click on Accounting document
Entry should be :
Cr. Inventory RM

5011.25-

Dr. RM Consumption 5011.25

Srinivasa

11. Display Stock Ledger

Tcode : MMBE
up to Material Management same path
Inventory ManagementEnvironmentStockStock Overview
Material

LAPRM

Plant

LAP1

Storage location :

LAP1

Execute

12. Display Stock for posting date

Tcode :MB5B
137

Same path
Material No.

Company Code :

LAP

LAPRM

Srinivasa

Kasireddy +91-9959765211

Plant
:
LAP1

Valuated stock
Execute

138

8. SD Integration

1. SD consultant job
1. Define Sales Organisation:
SPROEnterprise StructureDefinitionSales and DistributionDefine, copy, delete,
check sales organization
Double click on Define Sales Organisation
Sales Organisation

Kasireddy +91-9959765211

Description

LAP North sales org

Srinivasa

New Entries

Country

Statistics currency

LANS

INR

Save
Enter to ignore the warning message
Name
Country

:
:

LAP North sales org

IN

Region

01

Enter
Create Request button
Short Description:

SD configuration for LAP

EnterContinue
Next Entry button
Sales Organisation

Description

LAP South sales org

Statistics currency

LASS
INR

Save
Enter to ignore the warning message
Name

:
:

IN

LAP South sales org

Region

01

Enter
Continue

2. Define Distribution Channel:

Same path Next line
Define ,copy , delete ,check distribution channel .
Double click on Define distribution channel .
139

New Entries
Distr. Channel
LD

Name
Direct Sales

Save
Continue

3. Define shipping points:

Up to Definition same path

Kasireddy +91-9959765211

Logistics Execution Define, copy, delete, check shipping Point.

Double click on Define shipping point.
New Entries
Shipping point
Description

LASH

LAP shipping point

LAP Shipping point.

Save
Name
Country

IN

Region

01

Enter
Continue.

4. Assign Sales Organisation to Company code:

SPROEnterprise StructureAssignmentSales and DistributionAssign Sales
Organisation to Company code
Position
Sales Org

LANS

LASS

Enter.
Sorg.

CoCd

Srinivasa

LANS LAP
Position
Sales Org
Enter.
Sorg. CoCd
LASS LAP

Save
Continue
140

5. Assign Distribution channel to sales organisation:

Same path (next line)
Assign distribution channel to Sales Organisation.
New entries
SOrg. Dchl
LANS

LD

LASS

LD

Save
Continue.

Srinivasa

Kasireddy +91-9959765211

6. Assign division to Sales Organization:

Same path next line
New Entries.
SOrg. Dv
LANS

LS

LASS

LS

Save
Continue.

7. Set up sales area:

Same path next line
New Entries
SOrg. DChl Dv
LANS

LD

LS

LASS

LD

LS

Save
Continue.

8. Assign sales organisation- distribution channel - Plant:

Same path
New Entries
SOrg. DChCust/Mt Plant
LANS

LD

LAP1

LASS

LD

LAP1

LANS

LD

LAP2

LASS

LD

LAP2

LANS

LD

LAP3

LASS

LD

LAP3
141

Save
Continue

9. Define Rules by Sales area:

Up to Sales and Distribution same path
Business Area Account AssignmentDefine Rules for Sales area
Position

Srinivasa

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Sales Org. :

LANS

Enter
SOrg. Rule
LANS

001 (Bus Area determination from plant & division)

LASS

001 (Bus Area determination from plant & division)

Save
Continue

10. Assign Business Area to Plant And Division

Same Path next line
New Entries
Plnt

Dv BusA

LAP1 LS

LANZ

LAP2 LS

LANZ

LAP3 LS

LANZ

Save
Continue
11. Assign Shipping Point to Plant:
Up to Assignment same path
Logistics ExecutionAssign Shipping point to Plant
Find Button
Find :

LAP1

Enter
Click on LAP1
Keep the cursor on LAP1
Assign Button
142

 LASH
Enter
Save
Continue

12. Assign Shipping Points:

SPROLogistics ExecutionShippingBasic Shipping FunctionsShipping point and
Goods receiving point DeterminationAssign shipping points

Srinivasa

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New Entries
SC LGrp Plnt

PrShP MShPt

01

LASH

0003

LAP1

LASH

Save
Continue

13. Maintain Pricing Procedure:

SPROSales and DistributionBasic FunctionsPricingPricing controlDefine and
Assign Pricing Procedures
Double click on Maintain pricing procedures
Select Procedure

RVAA01 ie Standard or RVAACA

Copy as button
Change Procedure with LAPPP
Change Description with

LAP Pricing Procedure

Enter
Copy all button
Enter to ignore the Wrng Msg
Select Procedure LAPPP
Double click on Control Data folder
For Condition types

SKTV (step 914), deselect Required

For Condition types

K007 (step 104) MWST (step 915) select Required

Make a note of AccKey for CTyps PR00 , MWST and K007 (ERL and ERS
respectively)
(Make sure CTyp VPRS(step 940) is copied )
Save
Enter to ignore the msg
Continue

14. Define Pricing Procedure Determination:

Same Path same lineDefine and Assign Pricing Procedure
143

Double click on Define Pricing Procedure Determination

New Entries
SOrg.

DChl Dv DoPr CuPP PriPr

CTyp

LANS

LD

LS

LAPPP PR00

LANS

LD

LS

LAPPP PR00

LASS

LD

LS

LAPPP PR00

LASS

LD

LS

LAPPP PR00

Save

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Continue

15. Define Tax Determination Rules:

Up to Basic Functions same path
TaxesDefine Determination Rules
New Entries
Tax Count.

IN

Seq

Tax categ. :

UTXJ

Save
Continue (skip this step lab)

16. Set up Partner Determination:

Customer

Partner role

CustomersH Office

Sold to party Sales to party

Payer

HO will settle the bill

CustomersPlant

Ship to party Send goods to plant

Customers Br office

Bill to party

Send bill to Br Office

Up to Basic Function same path

Partner DeterminationSet up Partner Determination
Double click on Set up Partner Determination for Customer Master
Double click on Account Groups- Function assignment folder
New Entries
Partn. Funct. Name

Account Grp

SP

Sold to party

LASD

SH

Ship to Party LASD

144

BP

Bill to Party

LASD

PY

Payer

LASD

Save
Enter 4times to ignore the msg
Continue
Double click on Partner Determination Procedures folder
New Entries
Part. Det .proc Name
LAPD

PDP for LAP

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Save
Enter to ignore wrng msg
Select Partner Determination

LAPD

Double click on Partner Functions in Procedure folder

New Entries
Part.Det. Proc Partn.Funct. Not Modifiable Mandat.Funct
LAPD

SP

LAPD

BP

LAPD

SH

LAPD

PY

Save
Double click on Partner Determination Procedure Assignment folder
Position
Account Group

LASD

Enter

Srinivasa

Group ParPr
LASD

LAPD

Save

17. Changing Schedule Line Category

Tcode : VOV6
Double cl ick on SLCa DN ie Returns
Movement Type :

653

ie GD returns unrestr.

Save
Continue
145

2. FI Consultants job
1. Changing GL account
Tcode

:FS00

Select GL account 300510 ie Sales

Change button
Create/Bank/Interest tab
Change the Field Status Group to G029

ie Revenue accounts

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Save
2. Assignment of Accounts for Automatic Posting:
SPROSales and DistributionBasic Functions Account Assignment/CostingRevenue
Account DeterminationAssign G/L accounts
Double Click on table 1
New Entries
App

CndTy

ChAc

SOrg. AAG

AAG

ActKy GL A/C

KOFI

LACA LANS

01

03

ERL

300510

KOFI

LACA LANS

01

03

ERS

400491

KOFI

LACA LASS

01

03

ERL

300510

KOFI

LACA LASS

01

03

ERS

400491

Save
Continue

3. SD End User
1. Creation of Customer
Tcode : XD01
Account Group

LASD (SD Customers)

Customer

LAPSDCUST

Company Code :

LAP

Sales Organisation

LANS

Distribution Channel

LD

Division

LS

LAP SD customer

Enter
Name
Country

IN

Region

01
146

Company Code Data button

Recon. account
Sort Key

200610 (Sundry Debtors)

031 (Customer Number)

Payment transactions tab

Terms of payment : 0001
Sales Area Data button
Sales tab
Cust. pric. proc

Kasireddy +91-9959765211

Shipping Tab
Delivery priority

02 (normal)

Shipping condition

01 (as soon as possible)

Delivering plant :

LAP1

Billing Documents tab

Price determine.
Inco terms :

EXW (customer will take care of goods from plant only)

Terms of payment

0001

Acct assgmt group

01

Tax classification :

1 (liable for tax) for UTXJ

1

for MWST

Save

2. Creation of Material FG
Tcode : MM01
Material

LAPFG

Industry Sector

Mechanical Engineering

Material Type

Finished products

Select View(s) button

Select Basic Data1, Sales: Sales Org. Data 1 , Sales: Sales Org. Data2 ,

Srinivasa

Sales: General/Plant Data , MRP 1 , Accounting 1 , Costing1 and Costing2

Org. Levels button
Plant :

LAP1

Stor. Location

LAP1

Sales Org.

LANS

Distr. Channel

LD

Enter
Description

: LAP FG

Base Unit of Measure :

Material Group

EA

LAPM
147

Division

LS

GenItemCatGroup

NORM

Sales: sales org .1 tab

Delivering plant :

LAP1

Tax Data
Tax Classification:

1 for UTXJ
1 for MWST

Sales: sales org. 2 tab

Acct assignment grp

03

ie Finished Goods

Item category group

NORM

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Sales: General/Plant tab

Gross Weight

Net Weight

Availability check

KP (no check)

Trans. Grp

0003

Loading Grp

0003

ND

Valuation class

LAP3

Price control

Standard price

600

ie Manual

MRP 1 Tab
MRP type

ie No plan

Accounting 1 tab
(Finished Product)
(std. price)

Save

3. Creation of Condition records

Tcode : VK11
SAP Easy AccessLogisticsSales and Distribution MasterData Conditions
Select Using Condition TypeCreate
Condition type

Srinivasa

PR00

Key Combination button

Material with release status

Enter
Sales Organization

LANS

Distribution Channel

LD

Material Amount Valid From

Valid to

LAPFG

31.03.2012

700

1.04.2011

Save
Back button
148

Condition type

K007

Key Combination button

Division/Customer

Enter
Sales Organization

LANS

Distribution Channel

LD

Division

LS

Customer

Amount Valid From

LAPSDCUST 1

Valid to

1.04.2011

31.03.2012

Save

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Back button
Condition type

MWST

Key Combination button

Domestic taxes

Enter
Country

IN

TaxCl1Cust

Tax cl. Mat

Amount Valid From

1.04.2011

Valid to

31.03.2012 A1

Save

4. Creation of Sales order

Tcode :VA01
Up to Sales and Distribution same path
SalesOrderCreate
Order type :

OR

Sales Organization

LANS

Distribution Channel

LD

Division

LS

Enter
Sold-to party

PO Number
PO date

LAPSDCUST
:

567 (customers Purchase order no)

Todays date

Req. deliv. date :

Todays date

Delivery plant

LAP1

Payment Terms :

0001

Complete dlv
Item Material Order Quantity Plant
149

TaxCode

10

LAPFG

10

LAP1

Enter
Select item 10
GoTo menuItemConditions
Enter CnTy MWST and Amount 5%
CnTy

Amount

MWST 5
Make a note of Discount amount ie 7 Rs
Make a note of profit margin 93 ( ie (700-7)-600)

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Back button
Edit menuIncompletion log
Save
Note down the order no

5. Production Receipts
Tcode :MB1C
Up to Logistics same pathMaterails ManagementInventory ManagementGoods
Movement Goods ReceiptsOthers
Document date :

Todays date

Movement type :

521 (receipt w/o production order into unrestricted use stock)

Plant

LAP1

Storage location :

LAP1

Enter
Material Qty.
LAPFG

150

Enter
Text

GR from production

Post
Enter to ignore the warning message
Post
Note down the material document no. 100000360
Other Goods Receipt menuDisplay
Material document

100000360

Mat. Doc year

2012

Enter
Accounting Documents button
150

Double click on Accounting Document

Dr Inventory FG .90000.00
Cr

To Inc/Dec. in stock

90000.00-

(=150*600)

6. Delivery
Tcode : VL01N
Up to Logistics same path

Srinivasa

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Sales and DistributionSalesOrderSubsequent FunctionsOut bound Delivery

Shipping point

LASH

Selection date

Sales order date (automatically come)

Order

12124 (sales order)

Enter
Actual GI date

Todays date

Picking tab
Picked qty.
10
Post Goods Issue button
Note down the delivery document 80015213
Outbound Delivery menuDisplay
Outbound delivery

80015213 (comes automatically)

Enter
Document flow button
Select GD goods issue
Display document button
Accounting Documents button
Dr Cost of Goods Sold
Cr

6000.00

Inventory FG

6000.00-

7. Sales billing
Tcode: VF01
Same pathBilling Document
Select the Delivery document
Execute button
Goto menu ItemItem Conditions
Enter CnTy MWST and Amount 5%
151

CnTy

Amount

MWST 5
Back button
Save
[Note down the billing document no)
Billing document menuDisplay
Billing document : xxxxxxxxxxxxx
Accounting button
Dr LAP SD Customer
Dr

Discount

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Sales

Cr

Srinivasa

Cr

Order type

7276.50
7000.0070.00

VAT Payable

346.50

In case of error Document xxxxxxxx saved (no accounting document generated) ,

for complete error analysis:
TCode: VF02
Billing document :
Billing document menu Release To Accounting
Double click on the error msg

Error: Account 400491 requires an assignment to a CO object

Solution : Delete cost element 400491 temprorarily and create again in the netx topic

8. Creating Cr Memo request

Tcode : VA01
SAPEasy AccessLogisticsSales and DistributionSalesOrderCreate
:

CR

Sales Organization

LANS

Distribution Channel

LD

Division

LS

Create with Reference button

Bill doc tab
Billing Document :

XXXXXXXXXXX

Copy button
Item overview tab
Billing block

Blank
152

Target quantity
2
Sales tab
Billing block

Blank

Order reason

Damaged in transit

Billing Date :

Todays date

Item detail tab

Billing block

Blank

Edit menu Incompletion log

Srinivasa

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Save

9. Posting Cr Memo
Tcode : VF01
Document
Enter Cr memo request
Execute button
Save
Billing document menuDisplay
Billing document 90036292
Accounting button
Double click on Accounting document
Entry should be :
Cr LAP SD Customer

1455.30-

Dr

To Sales

Cr

Discount given

Dr

1400.00

VAT Payable

14.0069.30

10. Sales Return Order (RE)

Tcode : VA01
Order Type

RE

Create with Reference button

Order tab
Order :

xxxxx

Copy button
Sales Tab :
Delivery block

Blank
153

Billing block

Blank

Order reason

Returns

Order Quantity
5
Select Item 10
Goto menu ItemConditions
Edit menuIncompletion log
Save

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11. Return Delivery (VL02n)

Tcode : VA02
Order : XXXX
Enter
Sales document menuDeliver
Actual GI date

Todays date

Picking Tab
Deliv .Qty SLoc
5

LAP1

Post goods Reciept button

12. CR Memo with reference to Returns order

TCode : VF01
Select Return sales order Execute
Save
Billing document menuDisplay
Billing document :

xxxxxxxxxxx

Accounting button

154

9. Profitability Analysis
In SAP we have two tools to analyse the Profitability
EC-PCA

CO-PA

Profit Centre Accounting

Profitability Analysis

To analyze the Profitability at organizational

units called Profit Centres.

To analyze the Profitability at Profitability

segments like Customer , Employee ,
Product etc

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Profit centres can be structured according to

Plants, Branch offices, Products or Product
ranges.

This is called Multidimensional Profitability

Eg: Customer wise profit, Employee wise
profit ,Product wise profit
PCA uses Period accounting and Cost-ofsales accounting

PA uses Cost-of-sales accounting method

PA is of two types Costing-Based and Account-Based . Both types can be used

simultaneously.
Costing-Based PA

Account-Based PA

Costing-Based PA uses Value fields to group cost and

revenue elements.

Account-Based PA uses cost

and revenue elements

Reconcilation issues : Reconciliation between FI and

COPA.

No reconciliation issues

SD: Delivery updates COGS in FI immediately but not

COPA. Billing updates FI with revenue.
Billing : During billing COPA is updated with COGS and
revenue
Reconcilation issues happens when delivery isdone in
one period and billing is done in a different period
COGS can be split in to cost components

Cost component split is not

possible

Varaince analysis is possible

Variance analysis not poosible

1. Settings
1. Maintain Operating Concern
Operating Concern is the highest node in CO. ie It is above the Controlling Area.
Op Concern 1 CoArea1

CoCd1
155

CoCd2
Co Area 2

CoCd3
CoCd4

Info : In Operating Concern we define the PA reporting data structure . Operating concern
contains a list of Characteristics and Value fileds.
Characteristic is the level at which you see the report and Value field is what figure you
want to see in the report .
Eg: You want to see customer wise revenue /cost of sales/ profit. Here customer is the
characteristic . and revenue /cost of sales/ profit are the value fields .

Srinivasa

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Path:SPROControllingProfitabilty AnalysisStructuresDefine Operating

ConcernMaintain Operating Concern
Operating Concern

LAP1

Create button
Enter to Ignore the msg
Description

LAP Operating concern

Costing-based

Account-based

Attributes tab
Operating concern currency

: INR

Company Code Currency

Fiscal year variant

V3

Save
Data Structure Tab
Create button
Select KMVTNR Sales employee and MATKL Material Group
Fixed Characteristics: In every opearing concern there are some fixed characteristics,
which are included into operating concern automatically.
Eg: Product ,Company code,Co-area, Sales order etc
Predefined Characteristics : Optionally we can include more characteristics . These are
predefined in the field catalogue and explicitly added to operating concern .
Eg : Sales employee , Material Group, Customer group etc
Customer defined Characteristics :
We can also define our own characteristics in field catalogue . From there you can include
them in your operatining concern.
Left arrow button
156

Value fields Tab

Select VV010 Revenue,
VV030 Customer discount,
VV100 Outgoing Freight
VV130 Internal sales comm
VV140 COGS,
VV150 Material Input,
VV250 Mat OH
VV400 Production costs
VV700 Sales Quantity

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VV713 Advertising,
VVIQT Invoiced Quantity ,
KWSGEK Other overhead

Info : Value fields are to be included in to the operating concern according to the requirement
from the field catalogue . Here we are including the above value fields.
A value field can be either an amount field or a quantity field. In the above value fields sales
quantity, invoiced quantity are quantity fields and others are amount fields.
Left arrow button
Save
Activate button
Back button
Yes button to generate Operating Concern environment
(Status should turn into green))
Enter to ignore the Msg
Save

2. Displaying Characteristic list

Upto Define Operating Concern Same path
Maintain Characteristics
Display button
Extras menuFixed fields

3. Define Profitability Segment Characteristics(Segment-Lvl

Characteristics)
157

Upto Structures same path

Define Profitability Segment Characteristics(Segment-Lvl Characteristics)
Operating concern

LAP1

Enter
Char

Description CostBased+AcctBased

ARTNR

Product

KNDNR

Customer

KAUFN

Sales Order

Save
Continue

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Info : Profitability segment is a unique combination of the above selected characteristics . ie

Only the characteristics selected for the above setting will be used in profitability segments.
Eg :
ProdA / Customer 1

= Proft seg 1

ProdB / Customer 1

= Proft seg 2

ProdA / Customer 2

= Proft seg 3

4. Assign Co-Area to Operating Concern

SPROEnterprise StructureAssignmentControllingAssign controlling area to
operating concern
Position button
CO Area

LAP

Enter
COAr OpCo
LAP

LAP1

Save
Continue
Error : Controlling area and op. concern have different fiscal year variants
Solution : Make sure if Op Concern and CoArea have same FYV. If they are different
change the FYV in Op Concern , logoff, re-login and peroform the above step .

5. Define No ranges for Actual Postings

Path: SPROControllingProfitability Analysis Flows of Actual Values Initial Steps
Define Number Ranges for Actual Postings
Operating concern

LAP1
158

Maintain Groups button

Create button
Group

COPA docs LAP

From No

To Number

9000000000

9999999999

Save
Continue
Back button
Click on F

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Element/Group button
Double click on COPA docs LAP
Repeat the process for A, B, C
Save
Continue
Info:
Data is generated in PA when documents are posted in SD , FI or MM components. For Eg
when a billing document is generated in SD , a PA document is generated as well.

6. Activate Tranfer of Incoming Sales Orders

Up to Flows of Actual Values same path
Transfer of Incoming Sales Orders Activate Transfer of Incoming Sales Orders
Position button
CO Area : LAP
Enter
COAr Inc.SO
LAP

1 ie Active with date of entry

Save
Continue

7. Maintain Assignment of SD Conditions to CO-PA Value

Fields
Up to Flows of Actual Values same path
Transfer of Billing Documents Assign Value Fields
159

Double click on Maintain Assignment of SD Conditions to CO-PA Value Fields

New Entries
CTyp

Val.fld

PR00

VV010

VPRS

VV140

K007

VV030

Save
Continue

8. Assign Quantity Fields

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Up to Flows of Actual Values same path

Transfer of Billing Documents Assign Quantity Fields
New Entries
SD qty field Name

CO-PA qty field

Name

FKIMG

Billed Quantity

VVIQT

Invoiced Quantity

KWMENG

Order Quantity VV700

Sales quantity

Save

9. Create Revenue element for GL account Sales

Tcode

: FS00

Select GL account 300510

Change button
Edit Cost element button
Valid From :

1.4.2011

Enter
CostElemCategory

11 i.e. Revenue

Srinivasa

Save

10. Create Cost element for GL account Discount given

Tcode

: FS00

Select GL account 400491

Change button
Edit Cost element button
Valid From :

1.4.2011

Enter
CostElemCategory

12 i.e. Sales deduction

Save
160

11. Creating GL account Advertising

Tcode : FS00
Select GL account 400500 Salaries
Copy button
GL account:

400707

Enter
Change the Description to Advertising
Save

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Edit Cost element button

Valid From :

1.4.2011

Enter
CostElemCategory

Save

12. Create Secondary Cost Element(Settlement)

Tcode : KA06
Cost Element

1000000008

Valid From

: 1.4.2011

to

31.12.9999

Enter
Name

Description :

IO settlemnt
IO Settement

CElem category :

21

Save

13. Maintain allocation Structure :

SPROControllingInternal OrdersActual PostingsSettlementMaintain Allocation
Structure
Select Allocation Structure A1
Double click on Assignments folder
New Entries
Assignment

Text

070

Advtising

Save
161

Continue
Select Assignment 070
Double click on Source folder
From cost el To cost elem
400707
Save
Double click on Settlment cost elements folder
New Entries

Srinivasa

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Receiver cat By cost element settlement cost elem

PSG

100000008

Save

14. Maintain PA Tranfer Structure

Same path
Maintain PA Transfer Structure
New Entries
Structure Text
L1

IO --> PA tranfer

Save
Continue
Select Structure L1
Double click on Assignment lines folder
New Entries
Assignment

Text

Q1

All cost

Save
Select Assignment L1
Double Click on Source folder
Cost Element
162

From : 400707
Costs/revenue
Save
Double click on Value fields folder
New Entries
Quantity/value

Fixed/Variable

Value fld

Value field

2 Variable

VV713

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Save

15. Maintain Settlement Profile

Same path
Maintain Settlment Profile
Double click on Maintain Settlement Profiles
New Entries
Settlement profile : LAP1 IO-->COPA
Actual Costs/Costs of Sales
To Be Settled in Full
Default Values
Allocation structure : A1
PA transfer str.

: L1

Default object type : PSG

Indicators
%-Settlement
Valid Recievers
Cost center : Settlement Optional
Profit. Segment : Settlement Optional
Other Parameters
Document type : SA
Max.no.dist.rls : 999
Residence time : 3
Save

16. Maintain Number Ranges for Settlement Documents

(Skip this step already done in topic IO->CC settlement)
163

Same menu path

Maintain groups button
Create button
Group

From No

Settlemnt DOcs LAP

To Number

070000000 0799999999
Save
Enter
Back button
Click on LAP

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Assign elemnt group button

Double click on Settlemnt Docs LAP
Save

17. Creation of internal Order Types

SPROControllingInternal ordersOrder Master DataDefine Order types
New Entries
Order category

01

ie Internal Order (Controlling)

Enter
Order type :

EVNT

Description :

Events

Settlement prof :

LAP1

Planning profile :

000001

Object class

Overhead cost

Release immediately
Assign/change interval button (next to Number range interval)
Yes button
Continue
Motor pool A-zzzzzzzz(external)
Not assigned
Double click on EVNT
Element/Group button
Save
Continue

18. Activate Profitability Analysis

Up to Flows of Actual Values same path
164

 Activate Profitability Analysis

Position
CO Area

LAP

COAr Name
LAP

FromFY Op.concern Active status

CO area for LAP 2012

LAP1

Save
Continue

19. Create IO Adv Event

Tcode: KO01

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Order type :

EVNT

Enter
Order

Description :

ADVEVNT_LAP
Adverstsing Event

Company Code :

LAP

Business area

LANZ

Control data Tab

Statistical order
Info:Select the check box to make it a statistical IO , else it will be a Real IO
Save
Settlement Rule button
Cat

Settlement Reciever

PSG
Enter
Product : LAPFG
Enter
Cat

Settlement Reciever %

PSG

Settlemnt type

100 FUL

Save

20. Create No. Range intervals for Bus Transactions KOAO

Tcode : KANK
CO Area

LAP

Maintain Groups Button

No. Range for CO Document (LAP)
Double click on Business Transaction KOAO
165

ie Actual settlemnt,

Element/Group button
Save
Continue

21. Maintain PA Transfer Structure for Direct posting

Up to Flows of Actual Values same path
Direct Posting from FI/MM Maintain PA Transfer Structure for Direct Postings
Select Structure FI ie Financial Accounting --> CO-PA
Double click on Assignment lines folder

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Controlling Area :

LAP

Enter
Select Assignment 10

ie Direct costs from FI

Double click on Source folder

Cost Element
From :
Group

To

Double click on Value fields folder

New Entries
Quantity/value

Fixed/variable Value fld

Value field

Double click on Assignment lines folder

Select Assignment 20

ie Direct revenues from FI

Double click on Source folder

Cost Element
From : 300510

To :

Double click on Value fields folder

New Entries
Quantity/value

Fixed/variable Value fld

Value field

VV010

Double click on Assignment lines folder

Select Assignment 30

ie Sales Deductions / Rebates

Double click on Source folder

Cost Element
From : 400491

To :
166

Double click on Value fields folder

New Entries
Quantity/value

Fixed/variable Value fld

Value field

VV030

Save
Continue

22. Transfer of old SD data to PA

We perform this activity in the following two scenarios

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Scenario 1 : In the lab if we post SD documents before configuring PA.

Scenario 2 : In the live project if SD module has been implemented before implementing
PA. After implementing the PA we can generate the PA documents for old SD documents.
Scenario 3 : Can also be used for corrective posting of documents in COPA. Existing COPA
docs are reversed and new documents are generated
Path: SPROControllingProfitability AnalysisToolsProduction Start upSubsequent
Posting of Documents Post Billing Documents Subsequently
TCode : KE4S
Billing Type

Company Code :

F2 ,G2
LAP

Test run

Create log
Check for existing records
Execute
Back button
Test run
Execute
Error : Document with unauthorized business transaction SD00

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Solution : Activate profitability analysis

2. SD End User
1. Creating Sales order
Tcode: VA01
Create a Sales order for Material LAPFG
Qty : 50
167

2. Delivery of goods to customer

Tcode : VL01N
Post goods issue for the above sales order
Picked Qty :

50

3. Billing document
Tcode : VF01
Post a billing document for above Delivery document
4. Display Billing document
Tcode : VF03
Billing document :

90036262

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Accounting button
Double click on Profitab. Analysis
Value fields Tab
Make a note of Value fields Cash discount, Cost of goods sold, Revenue
Invoiced quantity

50 EA

Cash discount

: 350.00

Cost of goods sold

: 30,000.00

Revenue

35,000.00

3. FI Enduser
1. Posting transaction in FI
Posting cash sales :
Tcode : F-02
Dr LANZ 0000200691 Cash

18.000,00

Cr LANZ 0000300510 Sales

18.000,00-

In the second Item

Profit ,segment button
Plant

: LAP1

Sales Org.

Division

: LS

LANS

Continue button
Post
2.

Posting Advertising expenses in IO

Tcode :F-02
168

PstKy

40 Account

Amount

18000

Cost centre

Text

Advertising expenses

PstKy

50

400707

Enter
Order

Account

ADVEVNT
:

200691

Enter
Amount
Business area
Text

:
:

LANZ

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Post

Srinivasa

Document MenuSimulate

Tcode : KO88

4. CO End User
1. Set Operating Concern
Tcode

KEBC

SAP Easy Access AccountingControllingProfitability AnalysisEnvironmentSet

Operating Concern
Operating concern

LAP1

Costing-based
Enter
2. IO Settlement
SAP Easy AccessAccountingControllingInternal OrdersPeriod End ClosingSingle
FunctionsSettlementIndividual Processing
Order

: ADVEVNT

Parameters
Settlement period

Fiscal Year

201

Processing type :

Full Settlement

Test Run

Check trans. Data

Execute
Details list button
169

Back button two times

Test Run
Execute

3. Display COPA Line items:

Upto Profitability Analysis Same path
Actual PostingsDipaly Line Items
Tcode :KE24
Currency type

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Company code

10

LAP

Execute
Enter

4. Checking the flow of Billing Documents

SAP Easy AccessAccountsControllingProfitability AnalysisToolsAnalyze Value
Flows Check Value Flow in Billing Document Transfer
Tcode: KEAT
Company Code :

LAP

Currency type

10

Sales Organization

LANS

Display FI values

Execute
5. Displaying COPA tables(Costing Based)
When we a create an operating concern a set of tables are created . The name of
COPA tables start with CE .
For eg :

CE1XXXX - Actual line items

CE2XXXX - Planned line items

CE3XXXX Segment level totals/Period

CE4XXXX- Segment definition
where XXXX stands for your Opearting concern name.

170

10.

COPA-Valuation Overview

Valuation is used to calculate/extract extra information which is not available at the time of
data transfer to CO-PA .
Eg : Sale deduction like commission, cash rebates which are not available in the invoice can
be calculated
Cost of sales can be extracted using standard cost estimates from Product cost planning
component or actual cost from Actual costing / ML component.

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Special direct costs like transporting ,packaging can be calculated

Data transfer to CO-PA without valuation function :

Information available based on SDCOPA mapping()

Product COGS Discount Revnue ?
Prod A

2700

100

3600

Prod B

3000

150

4000

Contbution margin(Gross profit) = 7600-(5700+250)= 1550

Profit from prod A = 3600-(2700+100) = 800
1. Valuation using Conditions
Condition technique can be used to calculate sales deductions like commsion, Cash
deductions, rebates which are unknown at the time of invoice generation. And also to
determine direct costs such as frieght, packaging or insurance which are not known at the
time of billing.
Requirment 1 : Calculate Sales Commsion, Freght charges
171

Solution : We can valuate Sales commission and freight in COPA using Condition tequniue
(We are going to configure this scenario in a dedicated topic CO-PA Valuation-1)
Sales commsion = 2% revenue

Product

COGS

Discount

Revnue

Quantity

Antcipated
Sales
commison

Anticipated
Freght

Prod A

2700

100

3600

10

72

50

Prod B

3000

150

4000

80

25

2. Valuation using Mat. Cost Estimates

To update Cost of sales with latest material cost estimate.
Requirement 2 : Component wise analysis for COGS
COGS is to be split into components like Mat cost, Mat OH ,Prod cost etc
Solution = Valuation with Mat cost estimate
(We are going to configure this scenario in a dedicated topic CO-PA Valuation-2)
Extra mapping to be done as shown in the following image
Image : Mapping Cost component structure-COPA value fields

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Freight = 5 Rs /Kg

Product COGS Discount Revnue Quantity Sales

Freght RM
commison
cost
172

RM
OH

Prod Cost

Prod A

2700

100

360

10

72

50

1500 150 1050

Prod B

3000

150

400

80

25

2000 200 800

Requirement3 : Revaluated prices should reflect in COPA at month end

Month end revaluation of stock using new standard price
During the month :
Standard price prod A = 270.00 Rs
Reciept of FG to inventory from Prod :

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Posting to inv a/c = 270X50 = 13,500.00

Delivery to customer :
Posting to inv a/c = 270X10 = - 2700.00.00
Current inventory = 40X270 = 10800.00
At month end
New standard price = 280.00 Rs
Revalution of stock with new standard price :
40X280 = 11200.00
Amount to be posted to Loss/gain from revaluation a/c = 400.00 Rs

Solution : Periodic Revaluation

(We are going to configure this scenario in a dedicated topic CO-PA Valuation-3)
For prod A the defference is posted as a delta item as shown in the 3rd row
Product COGS Discount Revnue Quantity Sales
Freght RM
commison
cost

RM
OH

Prod Cost

Prod A

2700

100

3600

10

7.2

50

1500 150 1050

Prod B

3000

150

4000

25

2000 200 800

Prod A

100

50

173

20

30

1. CO-PA Valuation-1
(In this Chapter we configure Valution using condtions)
Valuation using conditions : We use costing sheet and condition technique to calculate
anticipated freight charges based on the sale-quantity , anticipated commission based on
the revenue.

1. Settings

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1. Create Condition Types and Costing Sheets

SPROControllingProfitability AnalysisMaster Data ValuationSet UP Conditions
and Costing SheetsCreate Condition Types and Costing Sheets
Select ACT001 under pricing procedures
Copy button
Pricing procedure : LAP1

Actual: Commisions, Freight.. (LAP)

Save
Continue

2. Define and Assign Valuation Strategy:

Upto Valuation same path
Valuation Valuation StrategiesDefine and Assign Valuation Strategy
Operating concern : LAP1
Enter
Select Val.strat 001 Online Valuation Actual
Double click on Details folder
New Entries
sequence Appl

Costg sheet Mat.cstg Qty.field

LAP1

KE

VVIQT

Double click on Assignment of Valuation strategy folder

New Entries
PV Rec. Plan ver

Val .strat

Name
174

01

001

Save
3. Assign Value Fields
Upto Valuation same path
Set UP Conditions and Costing SheetsAssign Value Fields
Assign Value Fields
New Entries

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CTyp

Name

Value fld

Description

COGS Cost Price: CO-PA

VV140

Cost of goods sold

DISC

Customer discount

VV030

Customer discount

PROV

Int.Sales Commission

VV130

Internal sales Comm.

REVN

Revenue

VV010

Revenue

Save
Continue
4. Valuation Analysis
Upto Profitability Analysis same path
ToolsAnalysisCheck Customazing Settings
TCode : KECM
Select Overview of Valuation under Analysis Options folder
Point of valuation : 01

Realtime valuation of actual data

Billing Document

Srinivasa

Execute
The following image explains how values flow between CO-PA value fields and costing sheet
records.

175

Kasireddy +91-9959765211
Srinivasa

2. Enduser :
1. Maintain condition record:

SAP Easy AccessAccountsControllingProfitability AnalysisMaster DataCondition

Records/PricesCreate
TCode : KE41
Condition type

PROV

Enter
Access to Sales organization
Enter
Sales Org Amount Valid From

Valid to

LANS

31.3.2013

1.4.2012

Save
2. Creating Sales order
Tcode: VA01
Create a Sales order for Material LAPFG
Qty : 30
3. Delivery of goods to customer
Tcode : VL01N
Post goods issue for the above sales order
176

Picked Qty :

30
4. Billing document

Tcode : VF01
Post a billing document for above Delivery document
5. Display Billing document
Tcode : VF03
Billing document :

XXXXXXx

Accounting button
Double click on Profitab. Analysis

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Value fields Tab

Value fields Interanl sales comm should be filled with value

6. Valuation Simulation
SPROControllingProfitability AnalysisToolsAnalysisValuation Simulation
TCode : KE21S
Posting date

27.11.2013

Pt.of valuation : 01

Record Type :

Version : Blank

Legal View
Enter
Characterstics tab
Company Code :

LAP

Sales Org.

LANS

Value fields tab

Revenue

3000 (or any amount)

Valuation button(

( Calculated Internal sales Comm. should be 90.00 per a revenue of 3000.00 )

177

178

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 Srinivasa

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2. Characteristic Derivation

179

3. CO-PA Manual Line Item Entry

We can manually post entries in CO-PA in rare cases. If these postings are made without a
corresponding FI entry, then this can lead to a FI & CO-PA reconciliation issue. It should be
used in rare care cases like when it is too late to go back to the source module to make the
posting (e.g. when the period closing for that module has been carried out.)

TCode : KE21N

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SAP Easy AccessAccountsControllingProfitability AnalysisActual PostingsCreate

Line items

180

4. Top-Down Distribution of Actual Data

In CO-PA value fields like revenue , sales deductions and COGM are posted to detailed
level characteristics like Product/customer . Some transactions like freight charges,
insurance cost can not be attributed directly to detailed levels like product/customer . So
they are posted summarily to higher levels like division ,sale organization etc.
The Top-Down Distribution function can be used periodically to distribute the data from
higher summerised levels to lower detailed levels.

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Scenario : There are two products under one material group. When posting in FI, Freight
charges are transferred to material group in CO-PA . For the sake of analysis , product level
freight charges are to be calculated. Invoiced quantity is the basis for distribution.

1. Settings
1. Maintain Characteristic Groups
SPROControllingProfitability Analysis Flows of Actual Values
Initial StepsCharacteristic GroupsMaintain Characteristic Groups
Operating concern

LAP1

Enter
New Entries
Characteristic group Text
LAP1

Freight Charges posting

Save
Continue
Select Characteristic group LAP1
Double click on Characteristics folder
New Entries
Row number Field Name Field Description Entry Status
1

KNDNR

Customer

Field ready for input

ARTNR

Product

Field ready for input

WERKS

Plant

Required entry

VKORG

Sales Org.

Required entry

VTWEG

Distr. Channel

Required entry

SPART

Division

Required entry

MATKL

Material Group

Field ready for input

KOKRS

CO Area

Field not ready for input

Save
181

2. Assign Characteristic Groups for Assignment Screen

Same Path
New Entries
BusTran

Name

Charct.group Name

RFBU

FI: Postings LAP1

Click on the

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Plant

Entry aid

Freight charges posting

button in the Entry aid column

:

LAP1

Sales Org.

LANS

Distr. Channel

LD

Division

LS

Save new entry aid button (

Name : Mat Group

Continue
Continue

2. Enduser
1. Creation of Material FG(LAPFG9)
Tcode : MM01
Material

LAPFG9

Industry Sector

Mechanical Engineering

Material Type

Finished products

Select View(s) button

Select Basic Data1, Sales: Sales Org. Data 1 , Sales: Sales Org. Data2 ,
Sales: General/Plant Data , MRP 1 , and Accounting 1
Org. Levels button
Plant :

LAP1

Stor. Location

LAP1

Sales Org.

LANS

Distr. Channel

LD

Enter
Description

: LAP FG9

Base Unit of Measure :

Material Group

Division

LS

GenItemCatGroup

EA

LAPM
:

NORM

Sales: sales org .1 tab

Delivering plant :

LAP1
182

Tax Data
Tax Classification:

1 for UTXJ
1 for MWST

Sales: sales org. 2 tab

Acct assignment grp

03

ie Finished Goods

Item category group

NORM

Sales: General/Plant tab

Gross Weight

Net Weight

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Availability check

KP (no check)

Trans. Grp

0003

Loading Grp

0003

ND

Valuation class

LAP3

Price control

Standard price

900

ie Manual

MRP 1 Tab
MRP type

ie No plan

Accounting 1 tab
(Finished Product)
(std. price)

Save

2. Create Condition Record

TCode : VK11
Condition type

PR00

Key Combination button

Material with release status

Enter
Sales Organization

LANS

Distribution Channel

LD

Material

Amount Valid From

LAPFG9 1200

1.04.2011

Valid to
31.03.2012

Save

3. Sales Order
TCode : VA01
Material

Order quantity

LAPFG9 10

183

4. GRfrom Production
Tcode :MB1C
Up to Logistics same pathMaterails ManagementInventory ManagementGoods
Movement Goods ReceiptsOthers
Document date :

Todays date

Movement type :

521 (receipt w/o production order into unrestricted use stock)

Plant

LAP1

Storage location :

LAP1

Enter
Material

Qty.

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LAPFG9 50
Enter
Text

GR from production

Post
Enter to ignore the warning message
Post

5. Delivery
TCode : VL01N
6. Billing
TCode :VF01
7. Posting Freight charges in FI
Tcode : F-02
PstKy

40

Account

1000

400592 Freight Charges

Enter
Amount

9000

Cost Centre
Text :

Freight charges payment

Enter account assignment button(

) next to Profit.Segment

Double click on Mat Group under Central entry aids

Material Group

LAPM

(Plant , Sales Org. Distr. Channel, Division, filled automatically)

Continue
Pst Ky

50

Account

200691

Enter
184

Amount

Text

Document menu Simulate

Post

8. Display Actual line items

TCode : KE24
9. Top-Down Distribution

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SAP Easy Access AccountingControlling Profitability Analysis Actual Postings

Period-End Closing Periodic Adjustments Top-Down Distribution
TCode :KE28
Operating concern

LAP1

Enter
Actual Data
From Period

: 8.2013

Record Type

: B

to 8.2013

Dir.posting from FI

All Valuation Views

Reference Data
From Period
Version

: 8.2013

to 8.2013

Record Type

Actual data
: F

Cumulative Periods
Cumulate Record Type
Reference base

Srinivasa

Single Val. Fld

Value Field

Invoiced quantity

Test run
Selction Criteria button
Product
Material Group

*
:

LAPM

(All remaining charceristics value = *)

185

Processing Instructions button

Characteristic

Distibution Lvl

Copy Value

Summarize Value

Customer
Product
Sales Order
Company Code
CO Area
Plant

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Sales Org.

Srinivasa

Business Area

Save

Distr. Channel
Division
Profit Center
Sales employee
Material Group
Unit Sales qty
Unit Inv. qty

Value fields button

Deselct all button
Outgoing freight
( Other value fields should be deselected)
Save button(to save the variant)
Variant : LAP1_testmode

Back button
Execute
Messages tab
(Msg for successful distribution : Editing has been completed successfully)
Result tab

186

 Srinivasa

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Click in Receivers column (It should display number of receivers)

(Inv.qty is the basis for distribution of freight charges )

Back button
Test run
(Enter all other input parameters as before)
Save button(to save the variant)
Variant : LAP1_updatemode
Save
Back button
Execute

10. Display Actual Line items

TCode : KE24

187

(A new COPA document with 3 items is generated)

11. History
Same path
TCode : KE28L
:

LAP1

Enter
Variants
Variant

LAP1_updatemode

Status
Test Run

Update Run

Successful

Cancelled

with Warnings Errors Found

Execute
Expand subtree button(
Line Items button (

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Operating concern

188

5. Profit Centre Accounting

EC-PCA(Enterprise control PC
accounting)

CO-PA(Profitablity Analysis )

is used to analyse profits at

PA is multidimensional

organizational levels

Used to analyse profits in multiple dimensions

like customer, Products, Sales org
Sales employee etc

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1. Set controlling area:

Path: SPROControllingProfit Center AccountingBasic SettingsSet Controlling area
T Code

OKKS

Controlling area :

LAP

Enter
2. Maintain Controlling Area Settings:
Same path up to Basic settingsControlling Area SettingsMaintain Controlling area
Settings
Standard Hierarchy

STD_HIER

Elim. of Int. Business vol.

PCtr Local Currency Type

20

(CoArea currency)

Control indicators
From Yr.

Active Indicator

2012

Save

Srinivasa

Continue
3. Create Dummy profit centre:
Up to Profit Center accounting same path
Master DataProfit CentreCreate Dummy Profit Centre
Double click on EC-PCA:Create Dummy Profit Center
Dummy Profit Center :

LAP_DUMMY

Basic Data button

Name

Dummy PC for LAP

Description

Dummy PC for LAP

Porfit Center Group

STD_HIER
189

Save
Enter to ignore the warning message
4. Set Control Parameter for Actual Data:
Up to Profit Center Accounting same pathBasic settings Controlling area Settings
Activate Direct postingsSet Controls Parameters for Actual Data
New entries
From year

Line items

Online transfer

2012

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Save
Continue
5. Maintain Plan Versions
Same path up to Activate Direct postings
Plan VersionsMaintain Plan Versions
Select version 0

ie Plan/actual version

DoubleClick on Settings for Profit Center Accounting folder

New Entries
Year

Online Transfer

Line items

ExRate Type

2012

Save
Continue
6. Define Number Ranges for Local Documents:
Up to Prfit Center Accounting same path
Actual PostingsBasic Settings: ActualDefine Number Ranges for Local Documents
Maintain Groups button.
Act document from direct posting with GB01
Interval menuMaintain
Company code

LAP

Enter
Insert interval button
Year

From Number

To Number

2012

0100000000

0199999999

Enter
Save
190

Continue
Back button
Planned doc. from direct posting with GB01
Interval MenuMaintain
Company Code :

LAP

Enter
Interval Button
Year

From number

To number

2012

0700000000

0799999999

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Enter
Save
7. Creating Profit Centres
Tcode : KE51
SAP Easy AccessAccountingControllingProfitCenterAccountingMasterData
ProfitCenterIndividual
ProcessingCreate
Profit Centre

1001

Enter
Analysis Period
Name
Long text

01.04.2012
:

Hyd plant

Hyd Plant

Person responsible

Mr. T

Profit centre group

STD_HIER

Save
Enter to ignore the warning message
Enter to confirm the message
Activate button
Profit centre

1002

Mum plant

Enter
Name
Long text

Mum plant

Person Responsible

MR. M

Profit Centre group

STD_HIER

Save
Enter
191

Activate

8. Assign Profit Center in CostCenter :

Tcode

KS02

Cost Centre

1001

Enter
Profit Centre

1001

Save

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Yes button to ignore the warning message

Enter to ignore the warning message
Repeat the same procedure for CCs 1002 and 1003
Error : Changing profit center from to xxxx is not permitted
Solution : Change error msg to warning msg
Double click on the error msg
Note down the msg no (here it is FAGL_ORG_UNITS011 )
Path : Up to Prfit Center Accounting same path
ToolsChange Message control
Application Area

FAGL_ORG_UNITS

Enter
New Entries
MsgNo User Name Online Batchl
011

Save
Continue

9. Create Sales Account As Revenue Element:

Tcode : FS00
Select GL account 300510 (Sales)
Change buttonEdit cost element button
Valid From :

1.4.2012

Enter
Cost Elem category

11

ie Revenue

Save
(Already done in PA)
192

10. Maintain Automatic Account Assignment Revenue element:

SPROControllingProfitCenter Accounting Actual PostingsMaintain Automatic
Account Assignment of Revenue Element
New Entries
CoCd

Cost Elem.

Profit Ctr

Acct assignment detail

LAP

300510

1001

2 Business Area is mandatory

Save
Continue
Select Company code LAP with CostElement

300510

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Double click Details per business area/Valuation area

New Entries
ValA

Business Area

Blank

LANZ

Cost Center

Profit Center
1001

Save

1. End User
1. Posting of Salaries
Tcode : F-02
PstKy

40

Account

400500

200792

Enter
Amount

36000

Cost Centre

Text :

1001

Salaries payment

Pst Ky

50

Account

Enter
Amount

Text

Document menu Simulate

Post
2. Posting Sales Invoice
Tcode : F-22
Psky :

01

Account

LAPGNCUST

Enter
193

Amount

Business area

43000
:

LANZ

Text :

Sales invoice

Psky

50

Amount

Text

Account

300510

Enter

Profitability segment button

Profit Center

1001

Enter

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Document menu Simulate

Post
3. Transfer of values from one ProfitCenter To another
ProfitCenter:
Tcode: 9KE0
Up to ProfitCenter Accounting same path
Actual PostingsProfitCenter DocumentEnter
Layout

Document type

8A-001
:

A0

LAP

Execute
Company code

Entry Screen button

Profit center Account number In pctr local curr
1001

400500

-9000

1002

400500

9000

Save
4. Display Profit Centre Report:
Up to Profit Accounting same path
Information systemReports for ProfitCenter AccountingLine item Reports
ProfitCenter :Actual Line items
Tcode : KE5Z
Record type
Co Area

LAP

Company Code :

LAP

Posting Period

Fiscal Year

2012
194

Account

Profit Center

1001

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Execute

195

6. Product Cost Planning

Moving Average Price/Standard price
Moving Average Price

Standard Price

Price is updated on every goods receipt and

invoice reciept.

Price is fixed for at least over a period.

We calculte the std price periodically.

Variance arises rarely (for example GR price is

different and enough stock is not available to
adjust)

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Generally used for RM

Varaince is calculated and posted to

variance accounts .
Generally used for FG , Semi FG
Std price can be calculated with either
product cost planning or Actual costing

The following types of cost estimates can be created in the Product Cost Planning
component :
1 . Cost Estimate for Base planning object (Reference and Simualtion Costing)
2. Cost Estimate with Quantity Structure
3 . Cost Estimate with out Quantity Structure
Costing Sequence
Type of
Cost
Estimate

Reference and
Simualtion Costing

Time
Stage

New product
proposal / Master
data is not
available

Cost Estimate without

Quantity Structure

Cost Estimate with

Quantity Structure

First Prototype/ Material

master data is available /
PP master data not
available

Production stage /
Complete MM and PP
master data is availble

(Eg : BOM and routing

data not available

Cost
estimate
type

Unit Cost Estimate

Unit Cost Estimate

Automatic Cost Estimate

and Unit Cost
Estimate(only for Additive
cost)

Automatic vs Unit Cost Estimate

Automatic Cost Estimate

Unit Cost Estimates(Manual entry of

cost items)

Cost Esimate is created automatically

Unit Cost Estimate is prepared manually for various

196

based on the PP quantity Structure .

cost items or by copying from other cost objects.

BOM (Bill of Material provides

planned qty of RM)

Eg: Unit Costing is used for

Routing( Priovides number of Activity

uints required )

1. Materials without quantity structure

2. Materials with quantity structure to enter
additive costs
3. Base Planning objects

Cost Component Split

We can generate one or two types of the following cost component splits.
1. Cost of goods manufactured

We specify one of the above cost component splits as the Main cost component split and
one as the Auxiliary cost component split.
Main CCS and Auxiliary Aux CCS can be specified at the combination of company code ,
plant and costing variant level as in the following screen shot

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2. Primary cost component split

197

Main Cost Copmonent Split is used for updating the standard price in the material master.
An Itemization is avialble for only Main cost component split.
Auxiliary cost component split is used for comparision purpose.

1.

Reference and Simualtion Costing

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Reference and Simualtion Costing is used to create a cost estimate for a newly propsed
product/service for which no master data is available.
Scenario : A cost estimate is to be created for a product(LAPFG1) which is to be
manufactured in house . In the production process various components are used and
activities(internal and external ) are performed apart from subcontracting .
The components/subcomponents materials are given in the following table.
Component Material type

Procurement

Valuation

LAPRM1

Raw Material

External purchase from two

different vendors(Procurement
alternatives)

Price from purchase

info record

LAPRM2

Raw Material

External purchase

Price from material

master record

LAPSFG1

Semifinished
product

In-house production in the same

plant with two production versions

To be costed

LAPSFG2

Semifinished
product

In-house production/Different plant

Existing costing data

from supplying plant is
to be used

Packing
material

External purchase

LAPPM

(Special Procurement)

Price from material

master

Solution : We create a baseplanning objects for each of the two semifinished products .For
these two base planning objects we create single level unit cost estimates. The costing
items are to be entered manually in the list screen/detail screen of unit costing .
Then we perform multilevel unit costing We can create a worklist which facilitates access to
frequently used data.
The activity details are given in the following table
Activity

Internal or
external ?

Valuation

Machine
hour

Internal

Calculating actual cost using actual costs recorded in

cost centers

Assembling

Internal

Activity price is set manually

Processing

Internal

Activity price is set manually

198

Packing

External

Price from purchase info record

1. CO Settings
1. Creating Secondary Cost Elements
TCode

KA06

Extras menu Set Controlling area

Controlling Area :

LAP

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Enter
Cost element

1000000001

Valid From :

1.4.2011

to 31.12.9999

Enter
Name

Description

RM OH
:

CostElem Category

RM OH
:

41 (OH rate)

Save
Cost element

1000000002

Valid From :

1.4.2011

to 31.12.9999

Enter
Name

Description

Activity Allocation
:

CostElem Category

Activity Allocation
:

43 (Internal Activity Allocation)

Indicators tab

Record qty

Unit of Measure

Hour

Note : Record qty is very important setting. This can not be changed in the fiscal year if
already data is posted . This can only be changed in a new fiscal year before any data is
posted .
Save
Cost element

1000000003

Valid From :

1.4.2011

to 31.12.9999

Enter
Name
Description

Prod OH
:

CostElem Category

Prod OH
:

41 (OH rate)

Save
199

2. Creating Activity Types Machine Hour/ Packing/

Asssembling/ Processing
SAP Easy Access Accounting Controlling Cost Center Accounting Master Data
Activity type Individual Processing Create
Tcode: KL01
Activity Type

MCH

Valid From :

1.4.2011 to 31.12.9999

Enter
Name

: Machine Hours
:

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Machine Hours

Activity Unit

Allocation Cost Element

Srinivasa

Description :

Price indicator

Plan price, automatically based on activity

Act. price indicator

Actual price, automatically based on activity

CCtr categories :

ATyp Category

(All Cost Centre Categories)

(Manual Entry & Manual Allocation)

Allocation Cost Element

Price indicator

Act. price indicator

1000000002
Plan price, automatically based on activity
Actual price, automatically based on activity

Save
Activity Type

PCKG

Valid From :

1.4.2011 to 31.12.9999

Master Data button

Name

: Packing

Description :

Packing

Activity Unit

UN Unit

CCtr categories :

ATyp Category

(All Cost Centre Categories)

(Manual Entry & Manual Allocation)
1000000002

Save
Activity Type

ASMB

Valid From :

1.4.2011 to 31.12.9999

Master Data button

Name

: Assembling

Description :

Assembling

Activity Unit

UN Unit
200

CCtr categories :

ATyp Category

(All Cost Centre Categories)

(Manual Entry & Manual Allocation)

Allocation Cost Element

Price indicator

Act. price indicator

1000000002
Plan price, automatically based on activity
Actual price, automatically based on activity

Save
Activity Type

PRCS

Valid From :

1.4.2011 to 31.12.9999

Master Data button

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Name

: Processing hrs

Description :

Processing hours

Activity Unit

H Hours

CCtr categories :

ATyp Category

(All Cost Centre Categories)

(Manual Entry & Manual Allocation)

Allocation Cost Element

Price indicator

Act. price indicator

1000000002
Plan price, automatically based on activity
Actual price, automatically based on activity

Save

2. MM Enduser
1. Creating Material master LAPRM1
Error : Tables TCURM and T001W inconsistent
Reason : This problem arises when a plant is created by copying another plant. Plant
assignment to company code is also copied .
Solution : Assign the plant to company code using TCode : SM31, instead of through SPRO
customizing. Table/View to be maintained is V_T001K_ASSIGN.

TCode : MM01
Material

LAPRM1

Industry Sector

Mechanical Engineering

Material type

ROH Raw Material

Select View(s) button

Select views Basic data1, Purchasing , General Plant Data / Storage 1 , Accounting 1
Org. Levels button
201

Plant

Stor. location

LAP1
:

LAP1

Enter
Basic Data1 tab:
Material

LAP RM1 (Steel)

Basic unit of measures

Material Group

Division

LS

KG

LAPM

Net Weight :

KG

Gross Weight

KG

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Purchasing Group

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Purchasing Tab

Stor. location

LPG

Accounting 1 tab
Valuation class

LAP1

Price Control

Moving Price

270

(Moving Average Price)

Save

2. Creating Material master LAPRM2

TCode : MM01
Material

LAPRM2

Industry Sector

Mechanical Engineering

Material type

ROH Raw Material

Select View(s) button

Select views Basic data1, Purchasing , General Plant Data / Storage 1 , Accounting 1,
Costing1 and Costing2
Org. Levels button
Plant

LAP2
:

LAP2

Enter
Basic Data1 tab:
Material

LAP RM2 (Steel)

Basic unit of measures

Material Group

Division

LS

KG

LAPM

Net Weight :

KG

Gross Weight

KG

Purchasing Tab
202

Purchasing Group

LPG

Accounting 1 tab
Valuation class

LAP1

Price Control

Moving Price

360

(Moving Average Price)

Save
3. Creating Purchase Info Record for External activity PCKG
SAP Easy AccessLogisticsMaterail ManagementPurchasingMaster DataInfo
RecordCreate
Vendor

LAPTRVNDR

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Material

Blank

Purchasing Org. :

LAPO

Plant

LAP1

Info Record

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TCode : ME11

Conditions

Info category
Standard`
Enter
Description :

Packing

Material Group

Order Unit

Sort Term

0001
UN
SERVICES

Enter (or Purch .Org Data 1 button)

Control
Pl. Deliv. Time

1 Days

Purch Group

LPG

Standard Qty

Net Price

UN

10 INR / 1 UN

Conditions button
Double click on condition type PB00
Save

203

1. CO Enduser
1. Create Cost Element Group
Tcode :KAH1
Cost element group

RSE

Enter
Description: Rent , Salary , Elect
Insert Cost Element button

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RSE
400500
400600
400392
Save

2. Create Activity type Group

TCode :KLH1
CO Area

LAP

Activity Type group

Enter
Description :

Testing

Activity Type button

TSHRA
TSHRM
Save

204

3. CC Planning for CC 1001

Tcode

KP06

Version

From

Period

To

Perod

12

Fiscal Year

2011

Cost centre

1001

Cost element group

Form based
Overview Screen button

RSE

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Costelement Plan fixed cost Distribution

400500

1 (Equal distribution)

400600
400392
Total

Post

4. Activity planning for MCH

SAP Easy AccessAccountingControllingCost Centre AccountingPlanningActivity
Ouput /PricesChange
Tcode : KP26
Version

From

Period

To

Perod

0
:

12

Fiscal Year

2011

Cost centre

1001

Activity Type
:
MCH

Form based

Overview Screen button

Activity Type

Plan Activity

MCH
Post
5. CC Planning for CC 2001
Tcode

KP06

Version

0
205

From
To

Period
Perod

12

Fiscal Year

2011

Cost centre

2001

Cost element group

Form based
Overview Screen button

RSE

Costelement Plan fixed cost Distribution

400500

1 (Equal distribution)

400600

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400392
Total

Post

6. Activity planning for PRCS

SAP Easy AccessAccountingControllingCost Centre AccountingPlanningActivity
Ouput /PricesChange
Tcode : KP26
Version

From

Period

To

Perod

0
:

12

Fiscal Year

2011

Cost centre

2001

Activity Type
:
PRCS

Form based

Overview Screen button

Activity Type

Plan Activity

PRCS
Post
7. CC Planning for CC 1002
Tcode

KP06

Version

From

Period

To

Perod

12
206

Fiscal Year

2011

Cost centre

1002

Cost element
group:

Form based

Overview Screen button

RSE

Costelement Plan fixed cost Distribution

400500

1 (Equal distribution)

400600
400392

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Total

Post

8. Activity planning for ASMB

SAP Easy AccessAccountingControllingCost Centre AccountingPlanningActivity
Ouput /PricesChange
Tcode : KP26
Version

From

Period

To

Perod

0
:

12

Fiscal Year

2011

Cost centre

1002

Activity Type
:
ASMB

Form based

Overview Screen button

Activity Type

Plan Activity

ASMB
Post
9. Calculating planned Activity Price
Upto Cost Centre Accounting same path
PlanningAllocationsPrice Calculation
Tcode
:
KSPI

All Cost Centres

Version
:
0
From
To

Period
Perod

12
207

Fiscal Year

Test Run

Details List

2011

Execute
Messages button ( Messages button is available only in case of any errors)
Save
Enter
Back button

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10. Activity planning for PCKG

SAP Easy AccessAccountingControllingCost Centre AccountingPlanningActivity
Ouput /PricesChange
Tcode : KP26
Version

From

Period

To

Perod

0
:

Fiscal Year

2011

Cost centre

1002

Activity Type
:
PCKG

Form based

Overview Screen button

Activity Type

Capacity Fixed price Variable price

PCKG
Post

4. Creating a Base Planning Object LAPSFG1_BPO in plant

LAP1
SAP Easy Access AccountingControllingProduct Cost ControllingProduct Cost
Planning Reference and Simulation CostingCreate Base Planning Object
TCode :KKE1
Controlling Area

LAP

Enter
Base Planning Object :

LAPSFG1_BPO

Enter
208

Base Unit of Measure :

EA

Company Code

LAP

Plant

:
:

Name

LAP1

BPO for LAPSFG1

Save
5. Create single level unit cost estimate for LAPSFG1_BPO
Same path
Change Base Planning Object

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TCode : KKE2
Base Planning Object :

LAPSFG1_BPO

Enter
Create Cost Estimate button
Costing Variant :
Lot Size

PG

1 EA

Enter
Item Category Resource Pant/Activity Quantity Description CostElement Formula
1

LAPRM1

LAP1

400599

1001

MCH

1000000002

Mat OH

Save
Save
6. Creating a Base Planning Object LAPSFG2_BPO in plant
LAP2
SAP Easy Access AccountingControllingProduct Cost ControllingProduct Cost
Planning Reference and Simulation CostingCreate Base Planning Object
TCode :KKE1
Controlling Area

LAP

Enter
Base Planning Object :

LAPSFG2_BPO
209

=(('1')*5)/100

Enter
Base Unit of Measure :

EA

Company Code

LAP

Plant

:
:

Name

LAP2

BPO for LAPSFG2

Save
7. Create single level unit cost estimate for LAPSFG2_BPO
Same path

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Change Base Planning Object

TCode : KKE2
Base Planning Object :

LAPSFG2_BPO

Enter
Create Cost Estimate button
Costing Variant :
Lot Size

PG

1 EA

Copy from
Base Object

LAPSFG1_BPO

Enter
Item Category Resource Pant/Activity Quantity Description CostElement Formula
1

LAPRM2

LAP2

400599

2001

PRCS

1000000002

Mat OH

Save
Save

8. Create multilevel unit cost estimate

The component materials are given in the following table.
210

=(('1')*5)/100

Activity

Internal or
external ?

Valuation

Machine
hour

Internal

Calculating actual cost using actual costs recorded in

cost centers

Packing

External

Price from purchase info record

Material

BOM
LAPSFG1

LAPFG1

LAPSFG2

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LAPPM
LAPSFG1 LAPRM1
LAPSFG2 LAPRM2

Same path
Edit Base Planning Object-Multievel
TCode: CKUC
Right Click on the Costing StructureCreate Base Planning Object
Base Planning Object :

LAPFG1_BPO

Enter
Base Unit of Measure :

EA

Company Code

LAP

Plant

:
:

Name

LAP1

BPO for LAPFG1

Srinivasa

Save
Costing Variant :
Lot Size

PG

1 EA

Enter
Now we are creating a worklist in which we include the items that are used in the multilevel
cost estimate.

Worklist On button
211

Create Worklist button

Name : cost_estimate_LAP
Manually-configured container : LAPFG1
Item category-Independent
Enter
Right click on worklist LAPFG1 Select Base Planning Object
Base Planning Object

LAPSFG1_BPO

to

LAPSFG2_BPO

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Execute button
Select the two Base Planning Objects
Enter
Right click on worklist LAPFG1 Select Internal Activity
Controlling Area : LAP
Enter
Select ASMB
Enter
Now we can drap and drop the items from worklist into the costing structure.
Drag LAPSFG1_BPO from worklist and drop on LAPFG1_BPO
Drag LAPSFG2_BPO from worklist and drop on LAPFG1_BPO
Drag Assembling from worklist and drop on LAPFG1_BPO
Change the quantity as shown in the table below
Enter items of category F manually
Ite
m

Categor
y

Resource

Pant/Activ
ity

Pur
Org

Quantity

Description

CostElment

LAPSFG1_BP0

400599

LAPSFG2_BP0

1000000002

1002

ASMB

250(Pur Info
Rec)

LAP1

1000000002
LAPO

212

Packing

1000000002

Enter
Select the 4 items
Keep the curser in 5th line
Insert total(

) button

Save
Yes button

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While in the same screen

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9. Exploding a material cost estimate/Base Planning Object

Enter

Funtions menu Explode Base Planning Object

Select the two base planning objects
Explode button

2.
Creating a cost estimate w/o quantity
structure
Scenario : A cost estimate is to be created for the product for which we created a cost
estimate using Reference and Simulation costing . Material master has been created for the
material but not the PP master data(BOM and Routing) .
Solution : We create a multilevel unit cost estimate .

1. CO Settings
1. Creating Cost Center (Allocation)
Tcode

KS01

Extras menuSet Controlling Area

Controlling Area :

LAP

Cost center:

1005

Valid From :

1.4.2011 to

31.12.9999

Enter
Name

OH CC

Description

OH CC

Person Responsible

Cost Center Category :

Mr. A
9

Hierarchy Area

STD_HIER

Business Area

LANZ

(Allocation Cost Centre)

213

Currency

INR

Save
Enter to ignore the warning msg

2. Define OH keys
SPROControllingProduct Cost ControllingProduct Cost PlanningBasic Settings for
Material CostingOverheadDefine Overhead Keys
New Entries
Over Head Key Description

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LAP1

LAP OH key

Save
Continue
3. Define OH Groups
Same Path Next line
New Entries
Valuation Area

Over Head Group Over Head Key Name of the Over Head Key

LAP1

LAPOHG

LAP1

LAP OH group

LAP2

LAPOHG

LAP1

LAP OH group

Save
Continue
4. Define Calculation Bases
Upto Overhead same path
Costing Sheet:ComponentsDefine Calculation Bases
New Entries
Base Name
K1

RM cost

K2

Prod cost

Enter
Select Base K1
Double click on Details folder
Controlling Area :

LAP

Enter
New Entries
From Cost element
400599
214

Save
Continue
Double click on Calculation base folder
Select Base K2
Double click on Details folder
Controlling Area :

LAP

Enter
New Entries
From Cost element

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10000000002
Save

5. Define Percentage OH Rates

Same path Next line
New Entries
O/H Rate Name

Dependency Description

LAP3

RM OH

D010

LAP4

Prod OH D020

Save
Continue
Select OH rate LAP3
Double click on Details folder
New Entries
Valid from

Valid To

CO area OH Type

OH key Percentage

1.4.2011

31.12.9999 LAP

LAP1

1.4.2011

31.12.9999 LAP

LAP1

Save
Continue
Double click on Prcentage overhead folder
Select OH rate LAP4
Double click on Details folder
New Entries
Valid from

To

CO area OH Type

1.4.2011

31.12.9999 LAP

Plant Percentage
LAP1 5

215

1.4.2011

31.12.9999 LAP

LAP1 5

1.4.2011

31.12.9999 LAP

LAP2 5

1.4.2011

31.12.9999 LAP

LAP2 5

Save

6. Define Credits

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we are going to create 2 credit keys one for material overhead and other for the production
overhead. By defining the credit key you are crediting the cost centre and debiting the
product or the production order. The credit on the cost centre happens with the overhead
cost element which we created earlier 1000000001 (RM OH) and 1000000003 (Prod OH).
Here we specify the allocation cost centre which is to be credited. You can also define what
percentage of the overhead is to be allocated as fixed costs.
Same path
New Entries
Credit Name
K5

LAP RM OH credit

K6

LAP Prod OH credit

Enter
Select Credit K5
Double click on Details folder
Controlling Area :

LAP

Enter
New entries
Valid To

Cost element Fixed % Cost centre

31.3.9999 1000000001

100

1005

Save
Continue

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Double click on Credit folder

Select Credit K6
Double click on Details folder
Controlling Area :

LAP

Enter
New entries
Valid To

Cost element Fixed % Cost centre

31.3.9999 1000000003

100

1005

Save
Continue
216

7. Define Costing Sheet

Same path up to overhead
Define Costing Sheets
New Entries
Costing Sheet Description
LAP1

LAP costing Sheet

Save
Continue
Select Costing Sheet LAP1
Double click on Costing sheet rows folder

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New Entries
Row Base O/H Rate Description From To Row
10

K1

20
30

RM
K3

RM OH

K2

40

Credit

10

10

K5

Prod OH

30

30

K6

COGM

10

40

Prod
K4

50
Save
Continue

8. Define Costing Variant

Same path upto Product Cost Planning
Material Cost Estimate With Quantity StructureDefine Costing Varaint
Select Costing Variant PPC1
Copy as button
Costing Variant

LAP1 Standard Cost Est. LAP

Enter
Enter to ignore the warning msg
Select Costing Variant LAP1
Details button
Create button (Button next to Valuation Variant)
Select Valuation Variant 001
Details button
Create button ( Button next to Valuation Variant/Plant)
Select Valuation variant 001 for plant 1000
217

Copy As button
In plnt

LAP1

Enter
Select Valuation Variant 001 for plant LAP1
Details button
Overhead tab
Enter Costing Sheet 'LAP Costing Sheet in both places
Save
Continue
Back button

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Select Valuation Variant 001 for plant LAP1

Copy as button
in plnt

LAP1

Enter
Save

9. Define Cost Component Structure

Same path up to Product Cost Planning
Basic settings for Material CostingDefine Cost Component Structure
Select Cost Component Structure 01
Copy As button
Cost Component Structure Active Prim Cost Comp Split Name

L1

LAP COGM Cost comp str

Enter
Continue
Save

Srinivasa

Continue
Select Cost Component Structure L1
Double Click on Cost Components with Attributes
Delete all Cost Components except 10, 50, 70 and 80
Cost Comp Struct Cost Comp Name
L1

10

Raw Materials

L1

50

Production

L1

70

Production OH

L1

80

Material Overhead

218

Save
Select Cost Component structure L1 with Cost Component 10 (Raw Materials)
Double click on Assignment: Cost Components-Cost Element Interval
New Entries
Cost Comp Struct Chart of Acc

From cost el. Cost Comp

L1

LACA

010

L1

LACA

010

Double Click on Cost Components with Attributes

Select Cost Component structure L1 with Cost Component 50 (Prod machine)

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Double click on Assignment: Cost Components-Cost Element Interval

New Entries
Cost Comp Struct Chart of Acc
L1

LACA

From Cost Comp

050

Double Click on Cost Components with Attributes

Select Cost Component structure L1 with Cost Component 80 (Materials OH)
Double click on Assignment: Cost Components-Cost Element Interval
New Entries
Cost Comp Struct Chart of Acc
L1

LACA

From Cost Comp

080

Double Click on Cost Components with Attributes

Select Cost Component structure L1 with Cost Component 70
Double click on Assignment: Cost Components-Cost Element Interval
New Entries
Cost Comp Struct Chart of Acc
L1

LACA

From Cost Comp

070

Save
Continue
Double Click on Cost Components Structure folder
Double click on Assignment:Organiz.Units-Cost Component Struct folder
New Entries

219

Company
Code

Plant Costing
Variant

LAP

++++

Valid from Cost Comp Structure(Main

CCS)

++++

L1

Save
Double Click on Cost Components Structure folder
Cost Comp Struct Active Prim Cost Comp Split Name
L1

L2

LAP COGM Cost comp str

LAP Actvity Cost Comp Str

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Save

10. Check/Change price calculation settings in Version

(Already done in Cost Center Accounting)
TCode: OKEQ
Select Version 0 ie Plan/actual version
Double click on Settings for Each Fiscal Year folder
Controlling Area :
Version

Enter
Double click on top row
Price calculation tab
Plan
Method

Periodic price

Periodic price

Actual
Methods

Revaluation

Cost Comp. Str. :

Srinivasa

LAP

Own business transaction

L2 LAP Actvity Cost Comp Str

Back button repeat the procedure for all rows(ie for all years)
Save
Continue

220

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Srinivasa

2. MM Enduser
1. Creating Material master LAPFG1
Tcode : MM01
Material

LAPFG1

Industry Sector

Mechanical Engineering

Material Type

Finished products

Select View(s) button

Select Basic Data1, Sales: Sales Org. Data 1 , Sales: Sales Org. Data2 ,
Sales: General/Plant Data , MRP 1 , Accounting 1 , Costing1 and Costing2
Org. Levels button
Plant :

LAP1

Stor. Location

LAP1

Sales Org.

LANS

Distr. Channel

LD

Enter
Description

: LAP FG1
221

Base Unit of Measure :

Material Group

Division

LS

GenItemCatGroup

EA

LAPM
:

NORM

Sales: sales org .1 tab

Delivering plant :

LAP1

Tax Data
Tax Classification:

1 for UTXJ
1 for MWST

Sales: sales org. 2 tab

03

ie Finished Goods

NORM

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Item category group

Srinivasa

Acct assignment grp

Industry Sector

Mechanical Engineering

Material Type

Semi-finished products

Sales: General/Plant tab

Gross Weight

Net Weight

Trans. Grp

0003

Loading Grp

0003

ND

Valuation class

LAP3

Price control

Standard price

50000

ie Manual

MRP 1 Tab
MRP type

ie No plan

Accounting 1 tab
(Finished Product)
(std. price)

Save

2. Creating Material master LAPSFG1

Tcode : MM01
Material

LAPSFG1

Select View(s) button

Select Basic Data1, General Plant Data /Storage 1 ,Accounting 1 , Costing1 and
Costing2
Org. Levels button
Plant :

LAP1

Stor. Location

LAP1

Enter
Description

: LAP SFG1
222

Base Unit of Measure :

Material Group

Division

LS

EA

LAPM

GenItemCatGroup

NORM

Gross Weight

1 KG

Net Weight

Valuation class

LAP2

Price control

Standard price

3000

Accounting 1 tab
(Semi -finished products)
(std. price)

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Save

3. Creating Material master LAPSFG2

Tcode : MM01
Material

LAPSFG2

Industry Sector

Mechanical Engineering

Material Type

Semi-finished products

Select View(s) button

Select Basic Data1, General Plant Data /Storage 1 , Accounting 1 , Costing1 and
Costing2
Org. Levels button
Plant :

LAP1

Stor. Location

LAP1

Enter
Description

: LAP SFG2

Base Unit of Measure :

Material Group

Division

LS

EA

LAPM

GenItemCatGroup

Gross Weight

1 KG

Net Weight

Valuation class

LAP2

Price control

Standard price

6000

NORM

Accounting 1 tab
(Semi -finished products)
(std. price)

Save

223

4. Creating Material master LAPSFG2

Tcode : MM01
Material

LAPSFG2

Industry Sector

Mechanical Engineering

Material Type

Semi-finished products

Select View(s) button

Select General Plant Data /Storage 1 , MRP1 ,MRP2 ,Accounting 1 , Costing1 and
Costing2,
Org. Levels button
Plant :

LAP2

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Stor. Location

LAP2

Valuation class

LAP2

Price control

Standard price

6000

Enter
Accounting 1 tab
(Semi -finished products)
(std. price)

Save

5. Creating Purchase Info Record LAPRM1 / two vendors

We are creating pur info record for two vendors with different price

SAP Easy AccessLogisticsMaterail ManagementPurchasingMaster DataInfo

RecordCreate
TCode : ME11
Vendor

LAPRMVNDR

Material

LAPRM1

Purchasing Org. :

LAPO

Plant

LAP1

Info Record

Info category
Standard`
Enter
Purch.Org.Data 1 button
Control
Pl. Deliv. Time

1 Days

Purch. Group

LPG

Standard Qty

10

KG

Conditions
224

Net Price

INR / 1 KG

Conditions button
Double click on condition type PB00
Save

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TCode : ME11
Vendor

LAPTRVNDR

Material

LAPRM1

Purchasing Org. :

LAPO

Plant

LAP1

Info Record

Info category
Standard`
Enter
Purch.Org.Data 1 button
Control
Pl. Deliv. Time

1 Days

Purch. Group

LPG

Standard Qty

10

KG

Conditions
Net Price

INR / 1 KG

Conditions button
Double click on condition type PB00
Save

3. CO Enduser
1. Cost Estimate W/O Quantity Structure(Single level) for
LAPSFG1
Option1 : we can create single level unit cost estimate as shown in this step.
Option2: We can also create single level unit cost estimate in multilevel costing
screen(TCode :CKUC)
SAP Easy Access AccountingControllingProduct Cost ControllingProduct Cost
Planning Material CostingCost Estimate Without Quantity StructureCreate
TCode: KKPAN
225

Material

LAPSFG1

Plant

LAP1

Costing Data Tab

Costing Variant

LAP1

Costing Version :

Standard Cost Est. (Mat.)

Dates Tab
Default Values button

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(Date Fields filled automatically)

Enter
Enter the data as shown in the table
Item Category Resource Pant/Activity Quantity Description CostElement Formula
1

LAPRM1

LAP1

1001

MCH

Mat OH

1000000001

Enter ( if any warning messages)

Save
Save
2. Multilevel Cost Estimate for LAPFG1
SAP Easy Access AccountingControllingProduct Cost ControllingProduct Cost
Planning Material CostingCost Estimate Without Quantity StructureEdit Multilevel
TCode: CKUC
Right Click on the Costing StructureCreate Material Cost Estimate
Material

Plant

LAPFG1
:

LAP1

Costing Variant :

LAP1

Costing Version

Costing Data tab

Dates tab
Default Values button
226

=(('1')*5)/100

Enter
Now we are creating a worklist in which we include the items that are going to be used in
the multilevel cost estimate.

Worklist On button
Container button(

)Insert Container

Name of new container:

LAPFG1

Item category-Independent

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Enter
Right click on worklist LAPFG1 Select Material Cost Estimate
Material Number :
Plant :

Blank

LAP1

Std cost est

Future

Current

Previous

Execute button
Select the LAPSFG1
Enter
Right click on worklist LAPFG1 Select Internal Activity
Controlling Area : LAP
Enter
Select all the three activity types
Enter
Now we can drap and drop the items from worklist into the costing structure.
Drag LAPSFG1 from worklist and drop on LAPFG1 under Costing Structure
Copy
Enter
Right click on LAPFG1 under Costing StructureCreate Material Cost Estimate
Material

Plant

LAPSFG2
:

LAP2

Costing Data tab

227

Costing Variant :

LAP1

Costing Version

Dates tab
Default Values button
Enter
Change the quantity as shown in the table below

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Item Category Resource Pant/Activity Quantity Description CostElement

1

LAPRM2

LAP2

2001

PRCS

Formula

400599

Mat OH

100000000001 =(('1')*5)/100

Save
Enter
Include cost estimate LAPSFG2 to LAPFG1 by drag n drop
(Cost estimate for LAPFG1 will be updated)
Drag Assembling from worklist and drop on LAPFG1 under Costing Structure
Change the quantity column asshown in the table
Item Category Resource

Pant/Activity Pur
Org

LAPSFG1

LAP1

LAPSFG2

LAP2

1002

ASMB

250(Pur info
rec)

LAP1

400599

LAPO

Save
Yes button
Functions menuExplode Material Cost Estimates
All Levels
Material :

Quantity Description CostElement

LAPFG1
228

1000000002

Enter
Material Number :
Plant :

LAPFG1

blank

Execute

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Double click on material LAPFG1

3.
Creating a cost estimate with quantity
structure
Scenario: PP master data like BOM , routing is available for the material LAPFG1. The
below given tables gives information of various components, activities . Certain costs like
freight charges , additional components are to be added manually.
The components/subcomponents materials are given in the following table.
Component Material type

Procurement

Valuation

LAPRM1

Raw Material

External purchase from two

different vendors(Procurement
alternatives)

Price from purchase

info record

LAPRM2

Raw Material

External purchase

Price from material

master record

LAPSFG1

Semifinished
product

In-house production in the same

plant with two production versions

To be costed

LAPSFG2

Semifinished
product

In-house production/Different plant

Existing costing data

from supplying plant is
to be used

Packing
material

External purchase

LAPPM

(Special Procurement)

Price from material

master

The activity details are given in the following table

Activity

Internal or
external ?

Valuation

Machine
hour

Internal

Calculating actual cost using actual costs recorded in

cost centers
229

Assembling

Internal

Activity price is set manually

Processing

Internal

Activity price is set manually

Packing

External

Price from purchase info record

Solution : A cost estimate with quantity structure is to be created for the material. As
semifinshed products are involved in production process multilevel costing is to be done.
The cost estimate is a mixed cost estimate because one of the component has procurement
alternatives.

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Freight charges , additional components can be included into cost components manually
using the function Additive costs.

1. FI Settings
1. Create GL Account Gain/Loss from Revaluation :
GL Account : 400502
2. Automatic account assignment for transaction UMB
TCode : OBYC

2. PP settings
1. Define MRP Controller
SPROProductionMaterial Requirement Planning Master DataDefine MRP
controllers
New Entries
Plant MRP Controller
LAP1 MRP
LAP2 MRP
Save
Continue
2. Define Floats(Scheduling Margin Key)
Upto Material Requirement Planning same path
PlanningScheduling And Capacity parametersDefine Floats
New Entries
Plnt

Marg Op. Per FI Bef FI After

Rel.Per

LAP1 LAP

02

02

02

02

LAP2 LAP

02

02

02

02

Save
Continue
230

3. Define Production Scheduler

Upto Production Same path
Shop Floor ControlMaster DataDefine Production scheduler
New Entries
Plant ProdSched
LAP1 MrS
LAP2 Mrx
Save

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4. Determine Person Responsible for WorkCenter

SPROProductionBasic DataWork CentreGeneral DataDetermine Person
Responsible
New Entries
Plnt

Pers. respons

LAP1 MRw
LAP2 Mrx
LAP3 Mr3
Save
Continu
5. Define parameters
Upto General Data Same path
Standard Value Define parameters
Select parameter SAP_14 ie User field
Copy as button
Parameter

LAP_14

Origin

: 2 Standard value in the op

Parameter text

Assembling

Keyword

Assembling

Dimension

AAAADL

Standard Value

: 1

Standard value unit

: UN

Enter
Save
Select parameter SAP_14 ie User field
Copy as button
Parameter

LAP_15
231

Origin

: 2 Standard value in the op

Parameter text

Packing

Keyword

Packing

Dimension

AAAADL

Standard Value

: 1

Standard value unit

: UN

Enter
Save
Select parameter SAP_02 ie Machine

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Copy as button
Parameter

LAP_16

Origin

: 2 Standard value in the op

Parameter text

Processing

Keyword

Processing

Dimension

TIME

Standard Value

Standard value unit

: H

Enter
Save

6. Define Standard value key

Same path
Define Standard value key
Select Satndard SAP1 ie Normal Production
Copy as button
Std val. key

: LAP1

th

4 Parameter : LAP_14

Srinivasa

5th Parameter : LAP_15

6th Parameter : LAP_16
Enter
Save

7. Check Formulas for Costing

SPROControllingProduct Cost Controlling Product Cost Planning Material Cost
Estimate with Quantity StructureSettings for Quantity Structure ControlRouting
Selection Check Formulas for Costing
232

New Entries
Formula key

LAP_14 Assembling

Formula
LAP_14 * SAP_09 / SAP_08 / SAP_11

Indicators
Generate

PRT Allowed For Reqmts

Allowed for Calulation

Allowed for Scheduling

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Work Center for Capacity Reqmts

Save
Next Entry button(

Formula key

LAP_15 Packing

Formula
LAP_15 * SAP_09 / SAP_08 / SAP_11

Indicators
Generate

PRT Allowed For Reqmts

Allowed for Calulation

Allowed for Scheduling

Work Center for Capacity Reqmts

Save
Next Entry button(

Formula key

LAP_16 Processing

Formula
LAP_16 * SAP_09 / SAP_08 / SAP_11

Indicators
Generate
Allowed for Calulation

PRT Allowed For Reqmts

Allowed for Scheduling

Work Center for Capacity Reqmts

233

Save

3. PP Enduser
1. Creating BOM for LAPSFG1
SAP Easy Access LogisticsProductionMaster Data Bills of Material Bill of Material
Material BOMCreate
Tcode

CS01

Material

LAPSFG1

Plant

LAP1

Kasireddy +91-9959765211

BOM usage

(Costing)

Enter
Component Quantity
LAPRM1
Enter
Save

2. Creating BOM for LAPSFG2 in plant LAP2

SAP Easy Access LogisticsProductionMaster Data Bills of Material Bill of Material
Material BOMCreate
Tcode

CS01

Material

LAPSFG2

Plant

LAP2

BOM usage

(Costing)

Enter
Component Quantity
LAPRM2

Srinivasa

Enter
Save
3. Creating BOM for LAPFG1
SAP Easy Access LogisticsProductionMaster Data Bills of Material Bill of Material
Material BOMCreate
Tcode

CS01

Material

LAPFG1

Plant

LAP1

BOM usage

(Costing)

Enter
234

ICt Component Quantity

N

LAPSFG1

LAPSFG2

Enter
Save

4. Material BOM Browser

Same path upto Material BOM

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MultilevelMaterial BOM Browser

TCode

CSMB

Material

LAPFG1

Plant

LAP1

Alternative :
Application

: PC01

Enter
Goto menuExplode Material BOMMulti-level
Execute
5. Creating Work Center
Same path upto MasterData
WorkCentresWorkCentreCreate
Tcode

Plant :

LAP1

WorkCentre

CR01
:

WorkCentre Cat. :

1001

Machining

0001 Machine

Enter
Description :

Machining

Person Responsible

Usage

009

Standard Value Key

MRW
(All task list types)
LAP1

(Normal Production)

Activity Type

Activity Unit Formula

MCH

Enter
Costing Tab
Cost Centre

Alt Activity Descr

1001

No Activity
Machine

SAP002
235

No Activity
No Activity
No Activity
No Activity
Save
6. Creating Work Center
Tcode

Plant :

LAP2

WorkCentre

CR01
:

1002

WorkCentre Cat. :

Processing

0001 Machine

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Enter
Description :

Processing

Person Responsible

Usage

009

Standard Value Key

MRX

(All task list types)

LAP1

(Normal Production)

Activity Type

Activity Unit Formula

PRCS

Costing Tab
Cost Centre

Alt Activity Descr

2001

No Activity
No Activity
No Activity
No Activity
No Activity
Processing

LAP_16

Save
7. Creating Work Center
Tcode

Plant :

LAP1

WorkCentre

CR01
:

WorkCentre Cat. :

1003

Assembling

0001 Machine

Enter
Description :

Assembling

Person Responsible

Usage

009

Standard Value Key

MRW
(All task list types)
LAP1

Costing Tab
Cost Centre

1002
236

Alt Activity Descr

Activity Type

Activity Unit Formula

Asemmbling

ASMB

UN

LAP_14

Packing

PCKG

UN

LAP_15

No Activity
No Activity
No Activity

No Activity
Save

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8. Creating Routing for LAPSFG1

Upto Master Data same path
RoutingsRoutingsStandard RoutingsCreate
Tcode

CA01

Material

LAPSFG1

Plant

LAP1

Operations button
New entries button(
Usage

1 (Production)

Status

4 (Released general )

Planning Work Centre

1001

Save
Operations button
Operation WorkCentre

Plant Control Key

0010

LAP1 PP01

1001

Double Click on Operation 0010

Std Value

Srinivasa

Machine

Un Act. Type
H

MCH

Save
9. Creating Routing for LAPSFG2

Tcode

CA01

Material

LAPSFG2

Plant

LAP2

Operations button
237

New entries button(

Usage

1 (Production)

Status

4 (Released general )

Planning Work Centre

1002

Save
Operations button
Operation WorkCentre

Plant Control Key

0010

LAP2 PP01

1002

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Double Click on Operation 0010

Std Value

Un Act. Type

Processing

PRCS

Save
10. Creating Routing for LAPFG1
Tcode

CA01

Material

LAPFG1

Plant

LAP1

Operations button
New Entries button(

Usage

1 (Production)

Status

4 (Released general )

Planning Work Centre

1003

Save

Srinivasa

Operations button
Operation WorkCentre

Plant Control Key Units of Measure

0010

1003

LAP1 PP01

0020

1003

LAP1 PP02

UN

Double Click on Operation 0010

Std Value
Assembling

Un

Act. Type

UN ASMB

Back button
238

Double Click on Operation 0020

Std Value
Packing

Un

Act. Type

UN PCKG

External processing
(Scroll down)
Purchasing Info Rec.
Cost Element

250

Purch. Organization

LAPO

1000000002

Enter

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Save

4. CO settings
1. Creating Tranfer Control
We are using SFG from one plant as a component in FG of another plant(in the same COarea). SFG is costed in the supplying plant and cost estimate is tranfered to receiving plant .
For that we have to assign Transfer control in Costing variant. Transfer control determines
how Cost estimate is tranfered from one plant to other.
SPROControllingProduct Cost ControllingProduct Cost PlanningMaterial Cost
Estimate with Quantity StructureCosting Variant ComponentsDefine Transfer Control
Select PC01 Transfer w. Plant Change
Copy As button
Transfer Control

LAP1 Transfer w. Plant Change LAP

Single-Plant tab
Strategy .Seq Fiscal year
No Transfer
No Transfer
No Transfer

Cross-Plant tab
Strategy .Seq

Fiscal year

Period-Based Transfer
Current Standard Cost Estimate
Future Standard Cost Estimate

239

Enter
Save

2. Assigning Transfer Control in Costing variant

Same path upto Material Cost Estimate with Quantity Structure
Define Costing Variants

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Double click on LAP1

Tranfer Control

Trnsfr w. Plant Change LAP

Save
3. Creating Special Procurement Types
A link can be set up between supplying plant and recieving plant with help of special
procurement.
Material master data is maintained in both plants. In recieving plant
SPROControllingProduct Cost ControllingProduct Cost PlanningMaterial Cost
Estimate with Quantity StructureSettingsfor Quantity Structure ControlMaterial
DataCheck Special Procurement Types
New Entries
Plant

LAP1

Sp.Pr.Type

81 Stock transfer (proc.from plant LAP2)

Procurement type

In-house production

Srinivasa

Special Procurement
Special procurement :P
Plant

Prod. other plant

LAP2

Direct production
Save

4. Update Additive Costs

TCode : OKTZ
240

Double click on Cost Component Structure folder

Select Cost Comp .Str L1
Double click on Cost Components with Attributes folder
Select Cost Comp .Str L1 with Cost Component 50
Double click on Update of Additive Cost folder

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New Entries
Cost Comp .Str Cost Component Chart of Accts

Cost Element

L1

1000000002

50

LACA

Save
Double click on Cost Component Structure folder
Cost Comp Str Active

L1

Save
5. Check Settings (for Costing Variant)
Info : We can display all the applicable settings in one place for a combination of Costing
Variant CompanyCode/Plant using this transaction
SPROControllingProduct Cost ControllingProduct Cost PlanningBasic Settings for
Material CostingCheck Settings
TCode : CKC1
Costing Variant
Company Code
Plant

GAC1
:

LAP
: LAP1

Date
Version

:
:

Blank

Execute
(Scroll down to see all the settings that are applied)

5. MM Enduser
241

1. Enter Spl Proc type in Mat master LAPSFG2 in plant

LAP1
TCode : MM01
Material

LAPSFG2

Enter
Select Costing 1 MRP2 and MRP1views
Enter

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Plant

LAP1

Enter
MRP2 tab
Procurement type : E
Special procurement

81

Costing 1 tab
Quantity structure data
SpecProcurem Costing

81

Save

2. Maintain OH key in Material master

TCode : MM01
Material

LAPRM1

Enter
Select Costing 1 view
Enter
Plant

LAP1

Enter
Costing 1 tab
Overhead Group :

LAPOHG

Save
242

TCode : MM01
Material

LAPRM2

Enter
Select Costing 1 view
Enter
Plant

LAP2

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Enter
Costing 1 tab
Overhead Group :

LAPOHG

Save

6. CO Enduser
1. Creating Procurement alternatives

We can procure a material into a plant in different ways.

For example
Process
Category

Procurement
alternatives

Purchase
order

We can purchase the material from a vendor

Production

We can produce in house in the same plant

Vendor X
Vendor Y
Prod version1
Prod version2

Production in
other plant*

We can produce in-house in a different plant(an SFG

can be produced in a different plant )

Prod in PlantX

Stock
transfer*

We can purchase a RM in to one plant and tranfered to

other plant.

From Plant1

Prod in PlantY
From Plant2

*Production in other plant and Stock transfer are treated as special procurements. If we
procure a material in any of these two ways , we need to maintain Procuremetn type in
MRP/Costing views of the material master.
In our scenario we are creating two procurement alternatives of type purchasing. Ie we can
purchase the material from any of the two vendors .
243

SAP Easy AccessControlling Product Cost Controlling Product Cost Planning

Material Costing Master Data for Mixed Cost Estimate Edit Procurement Alternatives.
TCode : CK91N
Material

LAPRM1

Plant

LAP1

Purchase order

Create button

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Process Cat.

Purchasing Org. :

LAPO

Vendor

LAPRMVNDR

Cstg Lot Size

Purchase order

Confirm button
Create button
Process Cat.

Purchasing Org. :

LAPO

Vendor

LAPTRVNDR

Cstg Lot Size

Confirm button
Save

2. Creating /Changing Mixing Ratios

If Procurement Alternatives are available for a material , mixing ratio is used to determine
which alternative is used in what proportions . For example in this scenario LAPRM1
material has two vendors with different prices ie Rs 270.00 and Rs 280.00 (Please check
the Pur Info record in MM end user section ). If 50% is procured from each of the vendor,
final procurement price in the cost estimate will be Rs275.00

Same path upto Master Data for Mixed Cost Estimate

Mixing Ratios Create /Change
TCode :CK94
Material

Plant

LAPRM1
:

LAP1

Mixing Ratio
Period
Fiscal Yr

2015

QtyStruct. Type :

MIX

Enter

244

PCat Changeable name

QtyStrDate

MR Mixing Ratios

BB

Vendor:LAPRMVNDR PurchOrg.:LAPO

BB

Vendor:LAPTRVNDR PurchOrg.:LAPO

Save

3. Creating Unit cost estimate for Additive Costs

Any costs which can not be calculated using automatic cost estimate ,can be included
manually by using additive costs which is nothing but a unit cost estimate.

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SAP Easy Access AccountingControllingProduct Cost ControllingProduct Cost

Planning Material Costing Cost Estimate with Quantity StructureAdditive
CostsCreate
TCode :CK74N
Material

Plant

LAPFG1
:

LAP1

Costing Variant :

LAP1

Costing Version

Costing Data tab

Dates tab
Default Values button
Enter
Item

Category

Resource

Pant/Activity

2001

PRCS

Quantity

Description

CostElement

Formula

Enter
Save
Save

4. Creating Cost Estimate for plant LAP1 and LAP2

When Cost Estimate with Quantity Structure is used there are 2 options to calculate the cost
and update the price
Option 1 :

Option 2 :

Step 1.Create Cost Estimate with Quantity

Structure

Edit costing Run

Tcode : CK40N
245

Tcode : CK11N
Step 2. Price Update
Tcode : CK24
Materials already costed (but with errors) can be
recosted using this method

Multiple materials can be costed at a

time using this method

1. Costing Run
SAP Easy Access AccountingControllingProduct Cost ControllingProduct Cost
Planning Material CostingCosting RunEdit Costing Run
Tcode

CK40N

Kasireddy +91-9959765211

Create Costing Run button

Costing Run

Description :

LAP Costing Run

Costing Run Date

Costing Variant :

LAP1

Costing Version :

01

Controlling Area :

LAP

Company Code :

LAP

Todays date

Enter
Dates tab
Costing Date From

Todays date

Costing Date

31.9.2011 (Month End date)

To

Quantity Structure Date

Valuation Date

Todays Date

Todays Date

Save
Expand Processing
Change Parameter button(
Material Number

Srinivasa

LAP

Plant :

) In the Selection

Flowstep

LAPSFG1 , LAPSFG2, LAPFG1,

LAP1, LAP2

Background Processing
Print Log
Save
Back Button
Execute button in the Selection Flowstep
(Status should be green)
Change Parameter button In the Struct. Explosion
Background Processing
246

Flowstep

 Save
Back Button
Execute button in the Struct. Explosion Flowstep
(Status should be green)
Change Parameter button In the Costing

Flowstep

Log by Costing Level

Background Processing
Save
Back Button

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Execute button in the Costing Flowstep

(Status should be green)
(Costing Status should be KA ie Costed Without Errors , in all levels . If any level has
status KF ie Costed With Errors , double click on the level to see complete error message)
Msg :No structure could be determined for internal activity ASMB (1002)
Solution : (You can ignore this msg if it is of type warning or info )
Create a primary cost component structure in OKTZ
Assign cost elements to cost components
Assign the cost component structure in OKEQ
Change Parameter button In the Analysis

Flowstep

Double click on SAP&12

Plant :

blank

Cost Component View :

01

Background Processing
Save
Back Button
Execute button in the Analysis Flowstep
Double Click on LAPFG1
Materails only/All Items button (

(To display all items)

Right click on LAPFG1 Expand subtree

(The following image shows what costs arises at what level )

247

Kasireddy +91-9959765211
Srinivasa

Cost Comps button (

Choose Layout button(

)
)Choose Layout

Select layout 1SAP03 ie Total/Level/Lower level by clicking

Double click on a material under costing structure
(By selecting a material under the costing structure we can analyse costs at the level of the
material and its lower level )
Back button
Goto button (

)Itemization

Back to CK40N screen

Note :Do all the error corrections before going further for Marking and Releasing flow steps.
Configuartional changes/corrections may not reflect in costing even when the flow steps
( Selection, Struct. Explosion , Costing , Anlaysis ) are re-executed.
For Eg : If we make any changes in the costing variant , the changes will not have any effect
even if we execute costing flow step again. We may have to delete the costing run and
create a new costing run again.
Delete Costing Run :
SAP Easy Access AccountingControllingProduct Cost ControllingProduct Cost
Planning EnvironmentCosting RunDelete Costing Run
TCode : CK44
Costing Run

Costing Run Date

LAP
:
248

Background Processing

Execute
Delete
Note: Please check the period closed for the company code using TCode MMPV/MMRV
before marking/releasing.

Lock button for Marking Flowstep

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Double Click on Company code LAP

Costing Variant :

PPC1

Costing Version :

01

Issue Allowance for Marking button

( =Save button)

Back button
Change Parameter button In the Marking

Test Run

With List Output

Background Processing

Flowstep

Save
Back Button
Execute button in the Marking Flowstep
Back to CK40N screen
Change Parameter button In the Marking

Flowstep again

Test Run

Save
Back button
Execute button in the Marking Flowstep again
Double Click on LAPFG1
Costing 2 tab
Make note of change in Future Planned price
Back to CK40N screen
Change Parameter button In the Release

Test Run

With List Output

Background Processing
Save
249

Flowstep

Back Button
Execute button in the Release Flowstep
Back to CK40N screen
Change Parameter button In the Release

Flowstep again

Test Run

Save
Back button
Execute button in the Release Flowstep again
Double Click on LAPFG1
Make note of change in Current Planned Price and Standard Price
Marking : Marking updates the future price
Releasing : Releasing updates the current price
Intialize the closed period : TCode : MMPI or program RMMMINIT can be used to open
the period which is closed by mistake. But this is to be done very carefully. Any material
postings done in the new period will have impact if we reopen the previous period and post
to it.
Parameter ID MMPI_READ_NOTE with current date(YYYYMMDD) as parameter value is to
be maintained in user profile(SU2) before running MMPI.(Note 487381)
Error : Materials locked
Solution : Use Tcode SM12 to unlock.

Srinivasa

Kasireddy +91-9959765211

Costing 2 tab

250