Product Cost Controlling with SAP (2nd Edition)

Product Cost Controlling with SAP (2nd Edition)

2012
978-1-59229-399-5
637

Product Details

• Learn how product costing works and integrates with other modules
• Master integrated planning, product cost planning, manufacturing methods, reporting, and more
• Reduce long run times during month-end processing and streamline controlling processes

Run your business more transparently and effectively: use this updated reference and configuration guide to learn about product cost planning, cost object controlling, and integrated planning. Easy-to-understand process overviews and configuration setup requirements will help you customize product cost controlling to your business needs. Find answers to your questions about the material ledger, transfer pricing, and reporting, learn how to address common problem areas, and much more. This is the one resource you need to learn how Product Cost Controlling works in SAP ERP Financials.

Breadth and Depth
This book both explains the business concepts of product costing and teaches you how to master and benefit from Product Cost Controlling with SAP.

A Lesson in Configuration
Learn to let Product Cost Controlling shine by integrating it smoothly into your business and configuring it based on your specific business requirements.

Examples Abound
This book features practical examples and case studies that will help you reinforce your understanding of the topics addressed.

Coverage of Special Topics
New content addresses special topics that will arise in your work, such as subcontracting, activity-based costing, sales order controlling, and mixed-cost estimates.

Updated and Expanded
This second edition expands coverage of integrated planning and master data, among other topics, and adds sections on information system, settlement, and more.

Highlights

• Master data
• Configuration settings
• Material ledger configuration
• Integration details
• Make-to-stock and make-to-order
• Lot size
• Repetitive manufacturing
• Long run times
• Message and variance analysis solutions
• Reporting

The Author

John Jordan has worked as an SAP consultant specializing in SAP Financials and Controlling for many years. He is the author of Production Variance Analysis for SAP Controlling and 100 Things You Should Know About Controlling with SAP.

Table of Contents

  • ... Acknowledgments ... 19
  • 1 ... Introduction ... 21
  • 1.1 ... Concept of this Book ... 21
  • 1.2 ... Target Audience ... 22
  • 1.3 ... Structure of this Book ... 23
  • 1.3.1 ... Part I: Integrated Planning ... 23
  • 1.3.2 ... Part II: Product Cost Planning ... 23
  • 1.3.3 ... Part III: Cost Object Controlling ... 26
  • 1.3.4 ... Part IV: Information System ... 27
  • 1.4 ... Looking Ahead ... 27
  • PART I ... Integrated Planning ... 29
  • 2 ... Integrated Planning ... 31
  • 2.1 ... Profitability Analysis ... 32
  • 2.2 ... Sales and Operations Planning ... 33
  • 2.3 ... Long-Term Planning ... 35
  • 2.3.1 ... Create Planning Scenario ... 37
  • 2.3.2 ... Long-Term Planning Run ... 38
  • 2.3.3 ... Transfer Requirements to Purchasing ... 41
  • 2.3.4 ... Transfer Activity Quantities to CCA ... 45
  • 2.4 ... Cost Center Planning ... 47
  • 2.4.1 ... Cost Element Planning ... 48
  • 2.4.2 ... Activity Price Planning ... 50
  • 2.5 ... Final Planning ... 54
  • 2.5.1 ... Calculate Standard Costs ... 54
  • 2.5.2 ... Transfer Standard Costs to CO-PA ... 55
  • 2.6 ... Summary ... 55
  • PART II ... Product Cost Planning ... 57
  • 3 ... Controlling Master Data ... 59
  • 3.1 ... Cost Element ... 60
  • 3.1.1 ... Primary Postings ... 60
  • 3.1.2 ... Secondary Postings ... 64
  • 3.1.3 ... Basic Data ... 65
  • 3.1.4 ... Indicators ... 68
  • 3.1.5 ... Default Account Assignment ... 69
  • 3.1.6 ... History ... 73
  • 3.2 ... Cost Center ... 73
  • 3.2.1 ... Standard Hierarchy ... 74
  • 3.2.2 ... Basic Data ... 78
  • 3.2.3 ... Control ... 82
  • 3.2.4 ... Templates ... 83
  • 3.2.5 ... Address and Communication ... 85
  • 3.2.6 ... History ... 85
  • 3.3 ... Activity Type ... 86
  • 3.3.1 ... Basic Data ... 86
  • 3.3.2 ... Indicators ... 93
  • 3.3.3 ... Output ... 95
  • 3.3.4 ... History ... 96
  • 3.3.5 ... Group ... 97
  • 3.4 ... Statistical Key Figure ... 99
  • 3.5 ... Summary ... 100
  • 4 ... Material Master Data ... 101
  • 4.1 ... MRP 1 View ... 102
  • 4.1.1 ... General Data ... 102
  • 4.1.2 ... Lot Size Data ... 104
  • 4.2 ... MRP 2 View ... 106
  • 4.3 ... MRP 4 View ... 110
  • 4.3.1 ... BOM Explosion and Dependent Requirements ... 110
  • 4.3.2 ... Discontinued Parts ... 114
  • 4.4 ... Costing 1 View ... 115
  • 4.4.1 ... General Data ... 116
  • 4.4.2 ... Quantity Structure Data ... 120
  • 4.5 ... Costing 2 View ... 128
  • 4.5.1 ... Standard Cost Estimate ... 128
  • 4.5.2 ... Planned Prices ... 130
  • 4.5.3 ... Valuation Data ... 132
  • 4.6 ... Accounting 1 View ... 138
  • 4.6.1 ... General Data ... 139
  • 4.6.2 ... Current Valuation ... 139
  • 4.6.3 ... Previous Period/Year ... 142
  • 4.6.4 ... Standard Cost Estimate ... 143
  • 4.7 ... Accounting 1 View—Material Ledger Activated ... 144
  • 4.7.1 ... General Valuation Data ... 146
  • 4.7.2 ... Prices and Values ... 149
  • 4.8 ... Accounting 2 View ... 152
  • 4.8.1 ... Populate Tax Price and Commercial Price ... 153
  • 4.8.2 ... Using the Tax and Commercial Price Fields ... 158
  • 4.9 ... Summary ... 160
  • 5 ... Logistics Master Data ... 161
  • 5.1 ... Bill of Material ... 161
  • 5.1.1 ... Basic Data ... 163
  • 5.1.2 ... Status/Long Text ... 166
  • 5.1.3 ... Administration ... 168
  • 5.1.4 ... Document Assignment ... 169
  • 5.2 ... Work Centers ... 170
  • 5.2.1 ... Basic Data ... 171
  • 5.2.2 ... Default Values ... 174
  • 5.2.3 ... Capacities ... 177
  • 5.2.4 ... Scheduling ... 179
  • 5.2.5 ... Costing ... 184
  • 5.3 ... Routing ... 186
  • 5.3.1 ... Header ... 187
  • 5.3.2 ... Operation Overview ... 190
  • 5.3.3 ... Operation Details ... 190
  • 5.4 ... Product Cost Collector ... 196
  • 5.4.1 ... Data ... 198
  • 5.4.2 ... Header ... 203
  • 5.4.3 ... Production Process ... 209
  • 5.4.4 ... List Product Cost Collectors ... 212
  • 5.5 ... Purchasing Info Record ... 214
  • 5.5.1 ... Purchasing Organization Data 1 ... 215
  • 5.5.2 ... Conditions ... 216
  • 5.5.3 ... Plant-Specific Purchasing Info Records ... 219
  • 5.6 ... Source List ... 221
  • 5.6.1 ... Fixed Source of Supply ... 223
  • 5.6.2 ... Blocked Source of Supply ... 223
  • 5.7 ... Summary ... 223
  • 6 ... Costing Sheets ... 225
  • 6.1 ... Overhead ... 225
  • 6.2 ... Calculation Base ... 227
  • 6.3 ... Overhead Rate ... 228
  • 6.3.1 ... Percentage Overhead ... 229
  • 6.3.2 ... Quantity-Based Overhead ... 235
  • 6.4 ... Credit Key ... 237
  • 6.5 ... Summary ... 238
  • 7 ... Cost Components ... 239
  • 7.1 ... Cost Component Terms ... 239
  • 7.2 ... Cost Components with Attributes ... 243
  • 7.2.1 ... Control ... 245
  • 7.2.2 ... Filter Criteria for Cost Component Views ... 247
  • 7.2.3 ... Delta Profit for Group Costing ... 249
  • 7.2.4 ... Cost Summarization ... 250
  • 7.2.5 ... Assign Cost Elements to Cost Components ... 251
  • 7.2.6 ... Update of Additive Costs ... 252
  • 7.2.7 ... Transfer Structure ... 253
  • 7.3 ... Cost Component View ... 255
  • 7.3.1 ... Cost Estimate Display ... 258
  • 7.3.2 ... Overhead Calculation ... 259
  • 7.3.3 ... Other Components ... 260
  • 7.4 ... Organizational Units of Cost Components ... 261
  • 7.4.1 ... Main Cost Component Structure ... 262
  • 7.4.2 ... Auxiliary Cost Component Structure ... 263
  • 7.4.3 ... Check Assignment to Organizational Units ... 263
  • 7.5 ... Cost Component Groups ... 265
  • 7.5.1 ... Create Cost Component Groups ... 266
  • 7.5.2 ... Assign Groups to Cost Components ... 267
  • 7.5.3 ... Assign Groups to Report Columns ... 268
  • 7.6 ... Summary ... 271
  • 8 ... Costing Variant Components ... 273
  • 8.1 ... Define Costing Variant ... 273
  • 8.2 ... Costing Type ... 275
  • 8.2.1 ... Price Update ... 277
  • 8.2.2 ... Save Parameters ... 280
  • 8.2.3 ... Miscellaneous ... 282
  • 8.3 ... Valuation Variant ... 285
  • 8.3.1 ... Material Valuation ... 286
  • 8.3.2 ... Activity Types and Processes ... 295
  • 8.3.3 ... Subcontracting ... 299
  • 8.3.4 ... External Processing ... 301
  • 8.3.5 ... Overhead ... 304
  • 8.3.6 ... Miscellaneous ... 305
  • 8.4 ... Date Control ... 308
  • 8.4.1 ... Costing Date From ... 309
  • 8.4.2 ... Costing Date To ... 310
  • 8.4.3 ... Quantity Structure Date ... 310
  • 8.4.4 ... Valuation Date ... 310
  • 8.5 ... Quantity Structure Control ... 311
  • 8.5.1 ... BOM ... 312
  • 8.5.2 ... Routing ... 319
  • 8.6 ... Transfer Control ... 322
  • 8.6.1 ... Single-Plant ... 323
  • 8.6.2 ... Cross-Plant ... 326
  • 8.7 ... Reference Variant ... 327
  • 8.8 ... Summary ... 330
  • 9 ... Costing Variant Tabs ... 333
  • 9.1 ... Control ... 333
  • 9.2 ... Quantity Structure ... 334
  • 9.2.1 ... Pass On Lot Size ... 335
  • 9.2.2 ... Ignore Product Cost Estimate without Quantity Structure ... 336
  • 9.2.3 ... Transfer Control Can Be Changed ... 337
  • 9.2.4 ... Transfer Active Standard Cost Estimate if Material Costed with Errors ... 340
  • 9.2.5 ... Transfer Cost Estimate of an Order BOM ... 341
  • 9.3 ... Additive Costs ... 342
  • 9.3.1 ... Additive Cost Components ... 342
  • 9.3.2 ... Include Additive Costs with Stock Transfers ... 343
  • 9.4 ... Update Tab ... 344
  • 9.4.1 ... Saving Allowed ... 344
  • 9.4.2 ... Save Error Log ... 345
  • 9.4.3 ... Defaults Can Be Changed by User ... 346
  • 9.4.4 ... Itemization ... 347
  • 9.5 ... Assignments ... 348
  • 9.5.1 ... Cost Component Structure ... 348
  • 9.5.2 ... Costing Version ... 348
  • 9.5.3 ... Cost Component Split in Controlling Area Currency ... 350
  • 9.5.4 ... Cross-Company Costing ... 351
  • 9.6 ... Miscellaneous ... 352
  • 9.6.1 ... Error Management ... 352
  • 9.6.2 ... Parameters for Error Management ... 353
  • 9.7 ... Summary ... 354
  • 10 ... Standard Cost Estimate ... 355
  • 10.1 ... Create Standard Cost Estimate ... 356
  • 10.1.1 ... Costing Data ... 356
  • 10.1.2 ... Dates ... 357
  • 10.1.3 ... Quantity Structure ... 359
  • 10.2 ... Mark and Release ... 361
  • 10.3 ... Costing Run ... 364
  • 10.3.1 ... Costing Data ... 364
  • 10.3.2 ... Dates ... 366
  • 10.3.3 ... Valuation ... 366
  • 10.3.4 ... Costing Run Steps ... 366
  • 10.4 ... Summary ... 378
  • 11 ... Preliminary Cost Estimate ... 379
  • 11.1 ... Create Preliminary Cost Estimate ... 379
  • 11.2 ... Production Process ... 382
  • 11.3 ... Transfer Control ... 382
  • 11.4 ... Mass Processing ... 385
  • 11.5 ... Summary ... 386
  • 12 ... Unit Cost Estimate ... 387
  • 12.1 ... Base Planning Object ... 387
  • 12.1.1 ... Item ... 388
  • 12.1.2 ... Category ... 389
  • 12.1.3 ... Resource ... 390
  • 12.1.4 ... Plant/Activity ... 390
  • 12.1.5 ... Quantity ... 390
  • 12.1.6 ... Value – Total ... 391
  • 12.1.7 ... Cost Element ... 391
  • 12.2 ... Material Cost Estimate Without Quantity Structure ... 391
  • 12.3 ... Summary ... 393
  • PART III ... Cost Object Controlling ... 395
  • 13 ... Preliminary Costing ... 397
  • 13.1 ... Production Order Control ... 398
  • 13.1.1 ... Costing Variant for Planned Costs ... 399
  • 13.1.2 ... Costing Variant for Actual Costs ... 400
  • 13.1.3 ... Costing Sheet ... 401
  • 13.1.4 ... Overhead Key ... 401
  • 13.1.5 ... Results Analysis Key ... 401
  • 13.1.6 ... Variance Key ... 401
  • 13.1.7 ... Determine Plan Costs ... 401
  • 13.2 ... Display Planned Costs ... 402
  • 13.3 ... Summary ... 404
  • 14 ... Simultaneous Costing ... 405
  • 14.1 ... Goods Movements ... 405
  • 14.1.1 ... Debits ... 405
  • 14.1.2 ... Credits ... 409
  • 14.2 ... Confirmations ... 412
  • 14.2.1 ... Secondary Postings ... 412
  • 14.2.2 ... Create Production Order ... 413
  • 14.2.3 ... Confirm Activities ... 417
  • 14.2.4 ... Default Activities ... 419
  • 14.2.5 ... Operation Sequence ... 420
  • 14.3 ... Report Costs ... 421
  • 14.4 ... Summary ... 423
  • 15 ... Overhead ... 425
  • 15.1 ... Configuration ... 425
  • 15.2 ... Overhead Period-End Processing ... 426
  • 15.3 ... Summary ... 428
  • 16 ... Work in Process ... 429
  • 16.1 ... WIP Configuration ... 430
  • 16.1.1 ... Define Results Analysis Keys ... 430
  • 16.1.2 ... Define Results Analysis Versions ... 431
  • 16.1.3 ... Define Valuation Method (Target Costs ... 434
  • 16.1.4 ... Define Valuation Variant for WIP and Scrap ... 436
  • 16.1.5 ... Assignment of Valuation Variant for WIP ... 437
  • 16.1.6 ... Define Line IDs ... 438
  • 16.1.7 ... Define Assignment ... 439
  • 16.1.8 ... Define Update ... 440
  • 16.1.9 ... Define Posting Rules for Settling WIP ... 442
  • 16.2 ... Results Analysis Configuration ... 443
  • 16.3 ... WIP Period-End ... 447
  • 16.3.1 ... Product Cost by Period ... 447
  • 16.3.2 ... Product Cost by Order ... 452
  • 16.4 ... Summary ... 452
  • 17 ... Variance Calculation ... 453
  • 17.1 ... Types of Variance Calculation ... 453
  • 17.1.1 ... Total Variance ... 453
  • 17.1.2 ... Production Variance ... 454
  • 17.1.3 ... Planning Variance ... 454
  • 17.2 ... Variance Configuration ... 455
  • 17.2.1 ... Define Variance Keys ... 455
  • 17.2.2 ... Define Default Variance Keys for Plants ... 457
  • 17.2.3 ... Define Variance Variants ... 457
  • 17.2.4 ... Define Valuation Variant for WIP and Scrap ... 459
  • 17.2.5 ... Define Target Cost Versions ... 460
  • 17.3 ... Variance Categories ... 463
  • 17.3.1 ... Input Variances ... 463
  • 17.3.2 ... Output Variances ... 464
  • 17.4 ... Variance Period End ... 466
  • 17.4.1 ... Product Cost by Period ... 466
  • 17.4.2 ... Product Cost by Order ... 471
  • 17.5 ... Summary ... 472
  • 18 ... Settlement ... 473
  • 18.1 ... Settlement Configuration ... 473
  • 18.1.1 ... Settlement Profile ... 473
  • 18.1.2 ... Allocation Structure ... 478
  • 18.1.3 ... Source Structure ... 485
  • 18.1.4 ... Profitability Analysis (CO-PA) Transfer Structure ... 487
  • 18.2 ... Settlement Period-End Process ... 492
  • 18.2.1 ... Parameters ... 493
  • 18.2.2 ... Processing Options ... 495
  • 18.3 ... Summary ... 497
  • 19 ... Special Topics ... 499
  • 19.1 ... Sales Order Controlling ... 499
  • 19.1.1 ... Configuration ... 500
  • 19.1.2 ... Period-End Processing ... 508
  • 19.2 ... Subcontracting ... 514
  • 19.2.1 ... MRP 2 View ... 514
  • 19.2.2 ... Purchase Order ... 515
  • 19.2.3 ... Monitoring Stocks Provided to Vendor ... 516
  • 19.2.4 ... Goods Receipt of End Product ... 518
  • 19.3 ... Material Ledger ... 518
  • 19.3.1 ... Multiple Currencies or Valuations ... 518
  • 19.3.2 ... Actual Costing ... 519
  • 19.3.3 ... Configuration ... 520
  • 19.3.4 ... Period-End Processing ... 527
  • 19.4 ... Delivery Costs ... 530
  • 19.4.1 ... Purchased Material Consumption Account ... 530
  • 19.4.2 ... Configure Costing Variant ... 531
  • 19.4.3 ... Assign Conditions to Origin Groups ... 532
  • 19.4.4 ... Assign Conditions to Purchasing Info Records ... 533
  • 19.4.5 ... Assign Origin Groups to Cost Components ... 533
  • 19.5 ... Templates ... 534
  • 19.5.1 ... Define Environment ... 535
  • 19.6 ... Mixed-Cost Estimate ... 536
  • 19.6.1 ... Quantity Structure and Costing Version ... 537
  • 19.6.2 ... Create Procurement Alternative ... 538
  • 19.6.3 ... Define Mixing Ratios ... 539
  • 19.6.4 ... Create a Mixed-Cost Estimate ... 540
  • 19.7 ... Cost Estimate User Exits ... 542
  • 19.7.1 ... Cross-Company Code Costing ... 543
  • 19.7.2 ... Production Resource/Tool Costing ... 544
  • 19.7.3 ... Bulk Material Costing ... 544
  • 19.7.4 ... Material Valuation ... 545
  • 19.7.5 ... Costing Reports ... 545
  • 19.8 ... Summary ... 546
  • PART IV ... Information System ... 549
  • 20 ... Information System ... 551
  • 20.1 ... Product Cost Planning ... 552
  • 20.1.1 ... Analyze Costing Runs ... 552
  • 20.1.2 ... List Material Cost Estimates ... 556
  • 20.1.3 ... Detailed Reports ... 557
  • 20.1.4 ... Object Comparisons ... 557
  • 20.2 ... Cost Object Controlling ... 561
  • 20.2.1 ... Product Drilldown Reports ... 562
  • 20.2.2 ... Summarization Hierarchy Reports ... 567
  • 20.2.3 ... Detailed Reports ... 574
  • 20.2.4 ... Line Item Reports ... 577
  • 20.3 ... Production Order Reports ... 578
  • 20.3.1 ... Order Information System ... 578
  • 20.3.2 ... Order Selection ... 581
  • 20.4 ... Cost Center Reports ... 583
  • 20.5 ... Summary ... 586
  • 20.6 ... Book Summary ... 587
  • 20.6.1 ... Integrated Planning ... 587
  • 20.6.2 ... Product Cost Planning ... 588
  • 20.6.3 ... Cost Object Controlling ... 589
  • 20.6.4 ... Information System ... 589
  • 20.7 ... Looking Ahead ... 590
  • ... Appendices ... 593
  • A ... Additional Resources ... 595
  • B ... Bibliography ... 599
  • C ... Glossary ... 601
  • D ... The Author ... 625
  • ... Index ... 627