1. 1. 1 SAP CO NOTES INDEX PARTICULARS Page No. CO Areas and Basic Settings for Controlling 3 Cost Center Accounting 11 Online Reconciliation Leger 23 1. Creation of GL Masters 2. CO Customization 3. FI Customization 25 27 28 Cross Company Code Postings 31 Maintain Overhead structure 34 Statically Key Figures (SKF) 38 Assessment 42 Internal Orders 46 Budgeting and Availability Control 60 Profit Center Accounting 64 Integration 76 1. Transaction Key /Process Key 2. Valuation Class 3. Assignment of accounts 4. MM Customization 5. FI Consultant job in MM 6. Assignment of Accounts for Automatic Postings(MM to FI) 7. FI Consultant job in SD 8. SD Steps 9. 77 78 89 90 97 100 115 Co-Profitability Analysis (CO-PA) 1. Data flow in CO-PA 2. Customization 3. SD End user area 120 120 122 126 Report Painter 129 Product Costing 132 1. Co Consultant Job (Activity based costing) 2. PP Consultant job 3. CO End User area 4. MM End User area 5. PP End user area 134 144 146 147 149 Actual Costing 153 1. CO Consultant job 2. PP consultant area 3. Asset Accounting area 153 167 174
2. 2. 2 New General Ledgers (ECC 6 New Features ) 1. Customization 2. Document Splitting 179 180 188 Central Excise and Sales Tax 1. Central Excise Customization (Purchase) 2. Central Excise customization (Sales) 3. SD End user area 192 195 211 217 Financial Statement Version 228 Asset Accounting Area 237 Project Report 238 CONTROLLING (CO) This is used for internal reporting in Co organizational Hierarchy Highest node is controlling area. In FI Highest node is company , Company code CO AREAS : 1. Cost Elements Accounting: To update Co records / sub modules cost elements are required. There are two types of cost elements 1. primary cost elements 2. Secondary cost Elements 2. Cost Center Accounting: This is used to view department wise costs. 3. Internal orders: This is used to view costs for specific task. Eg: Vehicle wise running expenses / Petrol expenses, Repairs to that Vehicle, Telephone wise expenses production order costs / Exhibition costs. Create each vehicle as n order and capture the costs Production order: Create production order as on internal order and capture the costs. Exhibition costs: Sales men salaries , Advertisement discounts to customers conveyance. Create a exhibition order 4. Profit center accounting : This is used to view profitability product wise / Division wise / Location wise if business area is not used in FI
3. 3. 3 5 Product Costing :This is used for valuation if inventories Eg: Finished goods and work in process. 6. Profitability analysis: This is used to view profitability for number of parameters at a time. Eg. Sales order wise / Customer wise / Product wise / Plant wise / Sales organization wise profitability this is reporting tool BASIC SETTINGS FOR CONTROLLING: Maintain controlling area FI Organization Structure CO. Organization Structure Company Controlling | | Company code | | | Business area Cost Center Scenario 1 Company | Company code = Controlling Area | | Business area --- Cost Center (a)Controlling area at company code level, b)Business area will be assigned in cost centers.) Scenario -2 Company = Controlling Area | | Company code | | | Business area --- Cost Center
4. 4. 4 (a )Controlling area at company (group) level no. of company codes will have one controlling area, b) Business area will be assigned in cost centers. 1) When management wants to view number of company codes cost centers data at a time It is not possible in 1st Scenario It is possible 2nd scenario. In report it will ask only one controlling area and not multiple controlling area. 2) When management wants to view number of cost centers data of company code Directly it is possible in 1st scenario. Also it is possible in 2nd Scenario By creating cost center groups. It means 2nd Scenario is more flexible. MAINTAIN CONTROLLING AREA: Path : SPRO Controlling General controlling Organization Maintain controlling area (Tr.Code is OKKP) If we go for 1st scenario company code should be the controlling area. If we go for 2nd scenario we can use any code for controlling area code. Double click maintain controlling area. Select new entries button Controlling area :BIL Name :controlling area forBIL Company code to controlling area : Select controlling area same as company code Currency type : select 10 company code currency. Once we select 10 company code currency , currency field, Chart of Accounts filed and Fiscal year variant filed will be updated automatically. Cost Center standard hierarchy : BILHIER Save Select yes button for the message system to create as a standard hierarchy Select create request button Short description : Co customization for BIL
5. 5. 5 Press enter Press enter once again to save in the request. COST CENTER STANDARD HIERARCHY: Cost center standard hierarchy : BILHIER | Cost centers Dept. A Dept.B Dept.C At the time of cost center creation It will ask under which hierarchy we are creating the cost centers. In the report when we give cost center Dept.A It gives only Dept.A date. When we give cost center Dept.B It gives only Dept.B date. When we give cost center hierarchy BILHIER It gives all the cost centers data. Double click on assignment of company codes folder Select new entries button Give the company code : BIL Select save button or Ctrl+S Press enter to save in your request Double click on a activate components / control indicators folder Select new entries button Fiscal year :2007 Cost center : Select component active Select active type check box Order management select component active. Select profit center accounting check box Save Ignore the warning message press enter MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS:
6. 6. 6 1. CO through posting from FI (Business transaction COIN CO No rang interval for the business transaction COIN FI Document type Co And no.ranges SA COIN | | 01 | | 1-100000 1-00000 Manual posting F-02 Automatic posting 1. Repost Co line items (Business transaction RKU3) Option 1 Posting in FI Wages A/c Dr 100000 Dept.A Wages A/c Dr 200000 Dept.B Wages A/ Dr 300000 Dept C To bank 600000 1 FI Document 1 Co Document COIN Note :Automatic posting is a business transaction Option 2 Posting in FI Posting in CO Wages A/c Dr 600000 Dept common Dept A 100000 Dept.common Dept B 200000 Dept. Common Dept C 300000 To Bank 600000 Post Co line item
7. 7. 7 2 Documents 1 FI Document No FI document 1 CO Document COIN 1 CO Document RKU3 Transfer document wise/line item wise Total documents generated 1. FI Document 2. CO Documents Wages A/c Dr 600000 Dept Common Dept A 300000 Dept Common Dept B 200000 Dept Common Dept C 300000 Rent A/c Dr 50000 Dept A To bank 650000 Repot CO line item Transfer line item wise Transfer document wise / Line item wise Report costs ( Business transactions RKU1) This is used when we split the cost center into number of cost centers or transfer for wrong cost center postings. No FI document will be generated CO document only will be generated Transfer cost element wise (GL Account wise) 01/07/2007 split into Dept A and Dept X Dept A Dept X 30/04/2008 400100 Salaries 200000 30/05/2008 400100 Salaries 250000 30/06/2008 400100 Salaries 275000 ---------- 400100 total 725000 400100 Salaries 200000 30/04/2008 400101 wages 100000 03/05/2008 400101 wages 150000
8. 8. 8 30/06/2008 400101 wages 125000 ---------- Total 400101 375000 400101 wages 125000 30/04/2008 400300 Rent 500000 31/05/2008 400300 Rent 50000 30/06/2008 400300 Rent 50000 -------- 400300 Total 150000 400300 Rent 40000 Planning primary costs ( Business transaction RKP1) Planning cost center wise or no. range interval for all the types , budgeting cost center wise for each cost element. Path: SPRO- Controlling General controlling Organization- Maintain number ranges for controlling document (T.Code is KANK) Controlling area : BIL Select maintain groups button From the menu select group Insert Text: Co doc no. range interval for BIL From number : 1 To number :100000 Enter Double click on business transactions COIN RKU3 RKU1 RKP1 Select Co.No.range interval for BIL check box From the menu select Edit Assignment element group Save Ignore the message press enter Note :Usage of Version locked authorized person only Eg; Cost Accountant MAINTAIN VERSIONS: Version are nothing but budgets Original budgets Version 0 Revised budget version 1
9. 9. 9 Re revised budget Version 2 We can compare actual with original budget, Revised budget and Re revised budget Path: SPRO Controlling General controlling Organization Maintain versions Select version 0 (Plant /actual version ) Double click on settings for each fiscal year folder Give the controlling area : BIL Enter Select new entries button Fiscal year :2008 Exchange rate type :select B (Bank selling rate) Once budgeting is completed at end user are a select version locked So that no body can change budget figures. Select save button or Ctrl+S Press enter to save in your request Select bank arrow Planning is made attend user area after plannings completed we select version locked check box , no body can change planned figures. COST ELEMENT ACCOUNTING: To update CO records / sub modules cost elements are required There are 2 types of cost elements 1. Primary cost element 2 Secondary cost elements A)Primary cost elements are our general ledger accounts A)Secondary cost elements are other than general ledger accounts
10. 10. 10 B) Posting to primary cost elements are possiable B) Postings to secondary cost elements are not possible. They are used to allocations / Settlements Dept C Dept A Dept B (Service Dept) (Production Depts) Salaries 100000 Wages 200000 Power 5000 In the month end, by using secondary cost element, we allocate costs from service to production Depts. COST ELEMENT CATEGORIES PRIMARY COST ELEMENT CATEGORIES: 1. Primary cost / costs redacting revenues. This used for expenditure accounts 3. Accrual / Deferral per surcharge :This is used for month end provisions only in CO 11. Revenues: This is used for income accounts 12. Sales Deduction: This is used for expenditure accounts like sales commission Trade discount where CO-Profitability analysis module is activated 22. External settlement( Settlement from CO FI): This is used for allocation of internal order settlement to GL Accounts / Assets. SECONDARY COST ELEMENT CATEGORIES: 21. Internal settlement (Settlement from CO to CO) This is used for allocation of internal order settlement cost to cost centers. 31. Order/ Project Results analysis: This is used for work in process calculations is product costing. 41. Overheads rates :This is used for calculation of raw material overhead rate / Production overhead rate in product costing . 42. Assessment: This is used for allocation of primary cost element posing and secondary cost postings from one cost center to other cost centers. 43. Internal Activity Allocation: This is used for calculation of activity types in production cost. Eg: Machine hours rate / labour hour rate in product costing. COST CENTER ACCOUNTING This is used to view department wise costs we use cost center accounting.
11. 11. 11 1. Creation of primary cost elements, we can create A) FI Area | B)CO Area |- Co Area C)Automatic creation | 2. Display cost elements created 3. Creation of filed status group by making cost center required entry field 4. Assign new filed status group in GL expenditure accounts 5. Creation of cost centers. 6. Creation of cost center groups. 7. Creation of cost element groups 8. To enter exchange rate for type M for INR to Euro 9. Posting of transaction in FI 10.To view cost center wise report. 11.To view CO documents 1. A) Creation of primary cost element at FI area Use to FS00 GL masters creation Give the GL account number : 400100 Salaries Account Company code : BIL Form the menu select GL Account display Now select edit cost element button Valid from date :01.04.2008 To date :31.12.9999 comes automatically Enter Cost element category : Select 1 (Primary cost / cost reducing revenues) Select save button or Ctrl+S 1. B) Creation of Primary cost element at CO area: Use transaction code FS00 Path: Accounting- Controlling- Cost element accounting-Master data-Cost element Individual processing-Create primary (Tr.code KA01 ) Cost element : 400300 Rent Account Valid from :01.04.2008 to 31.12.9999 Enter Cost element category :1 (primary cost /cost reducing revenue) Save 1. C) Automatic creation of primary cost elements: 1) Marked default settings (OKB2)
12. 12. 12 path : SPRO-Controlling-Cost element accounting-Master data Cost elements Automatic creation primary and secondary cost elements-Make default settings.(Tr.code is OKB2) Give the chart of Accounts : BIL Enter Account from :400301 Account to :499999 Cost element category select 1 Save Press enter to save in your request Create batch input session (OKB3) Same path as above Give the controlling area : BIL Valid from :01.04.2008 Valid to :31.12.1999 Session name :BIL (This is text field) Execute Execute batch input session (Tr code is SM35) Same path as above Select session name : BIL Select process button Select session :BIL Select display errors only radio button Select process button We get a message processing of batch input session completed. Ignore the message & select exit batch input button Display primary cost elements created (KA03) Path: Accounting-Controlling-Cost element accounting-Mater data-Cost element Individual processing Display- (Tr code is KA03)
13. 13. 13 Select drop down button beside cost element Give the Controlling area : BIL Enter Creation of field status group by making cost center required entry field: (Tr.Code is OBC4) Select field status variant: BIL Double click on filed status groups folder 100000 equity share capital G001 We cant make cost center required for balance sheet accounts 400100 Salaries Account G001 For G004 we make cost center required and assign in salaries account (i.e in expenditure accounts) Double click on field status group G004 cost accounts Double click on General data Text make it required entry field Select next group button Cost center select required entry filed Select next page or page down button two times. Business area make it option entry filed Save Press enter to save in your request Assign group new field group in GL expenditure accounts (FS00) Give the GL account 400100 salaries account Company code :BIL From the menu select GL account change select create / Bank / Interest tab Filed status group change to G004 Save Give the GL Account No.400300 Rent A/c Company code :BIL
14. 14. 14 From the menu select GL account change Change field status group to G004 Save Creation of cost centers: Path: Accounting-Controlling-Cost center accounting-Master data-Cost center- Individual processing-create (Tr.code is KS01) Cost center : Dept A Valid from :01.04.2008 to 31.12.9999 Enter Give the name : Dept A Give the description : Dept A Person responsible :Mr.A Cost center category : Select 1 production Hierarchy area : select BILHIER Business area :BILH Currency :INR Select save button or Ctrl+S Ignore the warning message press enter One more cost center : Dept B Valid from :01.04.2008 to 31.12.9999 Reference cost center : Dept A Controlling area : BIL Enter Change the name to Dept B Change the description to cost center Dept B Change the person responsible : Mr B Other fields are common Select save button Ignore the warning message press enter
15. 15. 15 Cost center : Dept C Valid from :01.04.2008 to 31.12.9999 Reference cost center : Dept A Controlling area : BIL Enter Change the name to : Dept C Change the description to cost center : Dept C Change person responsible to Mr.C Cost center category : Select to 2 (service cost center) Select save button or Ctrl+s Ignore the warning message press enter Creation cost center groups: Hierarchy : BILHIER Cost centers Dept A Dept B Dept C Dept X Dept Y Dept Z Category Production Prod Service Production Production Service Business Area HYD HYD HYD BGL BGL BGL If we want to see all cost centers data BILHIER If we want to see production cost centers data Create a cost center group and assign Dept A . Dept B, Dept X and Dept Y. If we want to see HYD cost centers data cost cost center group and assign Dept A, Dept b and Dept C If we want so settled production cost centers data create A cost center group and assign Dept A and Dept B Path : Accounting Controlling Cost center accounting Master data- Cost center group Create (Tr.code is KSH1) Give the cost center name : BILHYD PROD Enter Description Hyderabad production cost centers BIL Select Edit Cost Center Insert cost center button Select the cost centers Dept A
16. 16. 16 Dept B Save Creation of cost Element group: FI : Account groups Personnel cost CO:Dept wise personal cost or Administration 400100 salaries Create cost element group personnel and assign 400100 -400199 400101 Wages 400102 Bonus 400103 Staff welfare and Administration Create cost element group administration and assign 400300- 400399 400300 Rent 400301 Telephone exp 400302 Petrol exp In the report center Dept A Dept C Or Cost center GRP Cost element Or Cost element GRP personnel administration Path: Accounting Controlling-Cost center accounting-Master data-Cost element group Create (Transaction code: KAH1) Cost element group name : BILADMIN Enter Description : Administration expenses for BIL Select insert cost element button (Shift+F4) (Edit Cost element Insert cost element) From 400300 to 400399 Save To enter exchange rate for type M for INR to EURO (Tr.Code is OB08) Select new entries button
17. 17. 17 Exchange rate type : M (Average rate) Valid from :01.10.2008 From currency : INR To : EUR Direct quotation :0.02 Select save button or Ctrl+S Press enter to save in your request Posting of transaction in FI Transaction code:F-02 Give the document date : Todays date Type :SA Company code :BIL Posting key :40 Account :400100 salaries account Enter Give the amount :500000 Cost center : Dept A Text :Salaries posting One more expenditure Post key :40 Account :400300 Rent account Enter Amount :100000 Cost center : Dept A Text : Rent posting Posting key : 50 Account :200105 SBI current account Enter Amount :* Business area :BILH Text : Expenditure posting From the menu select Document Simulate Select save button or Ctrl+S To view cost center wise report: Path: Accounting Controlling-cost center accounting Information system-Report for cost center accounting-Line items Cost centers: Actual line items (Transaction :KSB1)
18. 18. 18 Cost center select Dept A (if you want change the posting dates) Select execute button Keep the cursor and the first line item Select document button Select back arrow Select change layout button (Ctrl+F8) Select Document no.under column set Select value in reporting currency under displayed columns Select left arrow or show selected filed button Select reference document no.under column set Select value in report current under displayed columns Select left arrow Select business transition under column set Select document no. under displayed columns Select left arrow Enter To view co documents: Path :Up to reports for costs center accounting path is same -Line items Co documents :Actual costs (transaction code is KSB5) Document no. :1 to 100000 Execute Select folder button for document no.1 Report co line items: Business transaction RKU3 FI doc.13 001 400100 Salaries 500000 Dept A 150000 Dept B 50000 Dept C Report co line item 002 400300 Rent 100000 Dept A 003 200105 SBI 600000
19. 19. 19 Report co line item Transfer document wise /line item wise , transfer line item wise No FI document will be generated Only document will be generated Path: Accounting Controlling-Cost center accounting Actual postings-Report line items-Enter (Transaction code is KB61) Select document no. :13 Company code :BIL Fiscal year :2008 Execute Double click on line item no.1 Amount under new account assignment 150000 Cost center :Dept B Select new item button Select next button Amount under new account assignment 50000 Cost center : Dept C Save Go and see the cost center report KSB1 Give the cost center Dept A Select execute button To view cost element wise to total Select cost element column Select sub totals button (Note:That is dues cost element wise total) Repot costs (Business transaction RKU1) This is used when we split a cost center in to number of cost centers or wrong cost center postings. No FI document will be generated Only CO document will be generated Transfer cost element wise (GL account wise) Path : Accounting-Controlling-cost center accounting Actual postings-manual reporting of costs Enter (Transaction code is KB11N) Cost center (old) : Dept A
20. 20. 20 Cost element 400100 Salaries Amount :100000 Cost center new : Dept C One more cost center (old) : Dept A Cost element :400300 Rent Amount :25000 Cost center (new) : Dept C Enter Select save button or Ctr+S Period lock: FI CO A) Transaction which effect FI and CO eg:COIN To open To open B) Transaction which effect only CO Eg.RKU3, RKU1 No check To open C) Transaction which effect only FI Eg.Debit balance sheet and credit balance sheet To open No check Sept .08 March Oct 2008 to March 2009 An expenditure posting in FI for September. We cant post since periods are not open. Path: Accounting Controlling-cost center accounting-Environment Period lock- chang (Tr.code is OKP1) Controlling area : BIL Fiscal year :2008 Select actual button Select period :01 Select lock period button Save
21. 21. 21 Set controlling area :(OKKS): Path :up to Environment the path is same Set controlling area Give the controlling area :BIL Enter Real time integration of controlling with FI on line reconciliation ledger This is used when we get for 2nd scenario (no.of company codes having one controlling area ) all the company codes should use same Char of Accounts. Planning cost center wise Path :Accounting Controlling cost center accounting Planning Cost and Activity inputs Change (KP06) Version :select 0 (Original budget) From period :1 To period :12 Fiscal year :2008 Select next page or page down button Cost center group :BILHIER Cost element From :400000 Cost element To :499999 Free Form Bsed If we select radio button If we select from based radio button We have to select cost element from the drop down list and plan against the Climents The cost element list in a available on screen plant against cost elements Select form based radio button Select overview screen button For cost element 400100 Plan Fixed cost 1500000 Distribution key 1 Equal distribution Select cost element 400100 From the menu select Goto Period screen Select back arrow
22. 22. 22 Fro cost element 400300 Plan fixed cost 960000 Distribution key 1 To plan for Dept B Select next combination button To go back to previous dept select previous combination button Save To view variance report cost center wise Path :Accounting Controlling-Cost center accounting Information system Reports for cost center accounting Plan /Actual comparisons Cost centers: Actual /Plan/Variance (Tr code is S_ALR_87013611) Controlling area :BIL Fiscal year :2008 From period :10 To period :10 Plan version :0 Cost center Value :Dept A Execute Keep the cursor on Salaries A/c actual costs amount Select call up report button Double click on cost centers : Actual line items keep the cursor on the first line item. Select document button ONLINE RECONCILIATION LEDGER Reconciliation used when when number of company codes having one controlling area 2nd Scenario]]] It can be at controlling area
23. 23. 23 All the company codes should use the same Chart of Accounts due to online reconciliation ledger, it generated in a document in FI BIL Controlling area | ------------------------------------------------------------------------ | | Company code BIL company code BSL | | ------------------------------------ ------------------------------------ | | | | | | Dept A Dept B Dept C Dept X Dept Y Dept Z If salaries paid and posted FI at (F-02) Salaries A/c ---------------------------------- 100000 | | Out of 100000 salaries 20000 belongs to company code BIL If we use the reconciliation account at cost center level and the 20000/- is transfer to company code BSL (Dept X) it passes the entry in financial automatically Here Reports at No FI records In BIL Books BSL Dr 20000 To Salaries a/c 20000 In BSL books Salaries account Dr 20000 To BIL a/c 20000 Customization at Finance: To copy company code BIL customization including accounting to BSL Path :SPRO-Enterprise structure Definition Financial accounting Edit, copy, Delete, Check company code(T.Code EC01) Double click on copy, delete, check company code From the menu select organization object copy organization object From Company code :BIL
24. 24. 24 To company code : BSL Enter Select Yes for the message (for copy the GL accounts) Select No button allocate a different local currency Ignore the message press enter Select create request button Short description :Customization for Birla Steel Limited Press enter Enter once again to saving the request Go on press enter till you got the message company code BIL copied to BSL with out 75 number range object Ignore the message press enter Select back arrow Double click on edit company code data Select position button Give the company code :BSL Enter Select company code : BSL Select address button change the company name to : Birla Steel limited Enter save and Save in your request button Assign company code to company Path :SPRO-Enterprise structure-Assignment Financial accounting-Assign company code to company Select position button Give the company code : BIL Enter For the company code :BSL assign BIL(group name) Select save button or Ctrl+S Press enter to save in your request
25. 25. 25 Document type SA should allow inter company postings: (OBA7) Select type : SA Select details button Select inter company postings check box Save Press enter to save in your request Creation of GL Masters FS00 BIL Books BSL Books 1) FI/CO reconciliation account under only expediter group which should not be a cost element 400150 Personnel group 1)FI/CO reconciliation account under any expenditure group which should not be a cost element 400150 personnel group 2) Birla Steels limited, current assets, Loans & Advances 200160 Birla Steel Limited 2)Birla Industries Limtied current Assets, Loans & Advances 200161 Birla Industries Limited Same chart of accounts BIL chart of accounts BIL BSL chat of accounts BIL When we use same chart of accounts, account description should be same in all the company codes. In BSL books If we create account No.200160 It takes Birla Steels Limited- we can not crate our account in our books. Creation of GL masters FS00 Give the GL account no. :400150 Company code :BIL Select with template button Give the GL account o. :400100 Salaries Company code : BIL Enter Change short text & GL account long text to FI/CO reconciliation account Select create / bank /interest tab
26. 26. 26 Field status group change to ICCF CO < -> FI reconciliation posting Save Give the GL Account No.200160 Company code : BIL Select with template button Give the GL Account No.200100 Cash A/c Company code :BIL Enter Select type/Description /tab Change short text GL account long text to BIRLA STEEL LIMITED Select create / Bank/Interest tab Filed status group change to G067 Deselect relevant to cash flow check box Save Give the GL account No.400150 Company code :BSL Select with template button Give the GL account 400150 Company code :BIL Enter & Save Give the GL account 200161 Company code :BSL Select with template button Give the GL account 200160 Company BIL Enter Select type / Description tab Change short text +GL long text to Bila Industries limited Save Prepare cross company code Transaction (Transaction code is OBYA)
27. 27. 27 Path :SPRO-Financial accounting-GL accounting Business transactions-Prepare cross company code transactions Company code 1 BIL Company code2 BSL Enter Posted in BIL cleared against BSL Debit posting key :40 Account debit :200160 ( Birla Steel Limited) Credit posting key :50 Account credit :200160 Posted in BSL Cleared against BIL Debit posting key :40 Account debit :200161 Bilra Industries Limited Credit posting key :50 Account credit :200161 Save Press enter to save in your request CO customization ( tr code is OKKP) Maintain controlling area Assign company BSL to controlling area BIL Select controlling area :BIL Select details button Company code to controlling area: Select cross company code cost accounting Reconciliation ledger document type :SA (GL accounts document) Double click on activate components / control indicators folder Select company code validation check box Double click on assignment of company codes folder Select company code :BIL Select copy as button Change the company code to BSL Enter & save Ignore the warning message press enter
28. 28. 28 Activate reconciliation ledger (Tr code KALA) Note: Follow through path Path:SPRO Controlling Cost element accounting-Reconciliation ledger-Activate deactivate reconciliation ledger Double click on activate reconciliation ledger Controlling area :BIL Select Execute button Ignore the warning message press enter Define adjustment accounts for reconciliation posting (Tr code is OK17) Same path Double click on define accounts for automatic postings Select change account determination button Save Reconciliation account: Give the account no.400150 FI/CO Save Press enter to save in your request FI CUSTOMIZATION Define variant for real time integration: Path :SPRO-Financial accounting (new) Financial accounting global setting (new) Ledger-Real time integration of controlling with financial accounting Define variants for real time integration Select new entries button Variant for real time integration B1 Select real time integration active check box Select account determination active check box Key date active from :01.04.2008 Document type :SA Ledger group (FI) :0L
29. 29. 29 Text variant for :BIL Select cross company code check box Select cross business area check box Select cross profit center check box Save Press enter to save in your request Assign variants for real time integration to company code: Same path. Select new entries button Company code :BIL Variant :B1 Company code :BSL Variant :B1 Save Press enter to save in your request Creation of cost center for company code BIL (KS01) Give the cost center department X Valid from :01.04.2008 To date :31.12.9999 Reference cost center :Dept A Controlling area :BIL Enter Change the name to :Dept X Change the description to cost center dept X Change company code to BSL Select save button or Ctrl+s Ignore the warning message press enter Repost costs (F-02)
30. 30. 30 Cost center old :Dept A Cost element :400100 Salaries Amount :20000 Cost center new Dept X Save To make text filed optional for field status group G004 cost accounts(Tr.code is OBC4) Select field status variant for BIL Double click on field status groups folder Double click field status G004 Double click on General data Text make it optional entry field Press enter to save in our request Go and see the FI documents (Tr.code is FB03) Select document list button Give the company code :BIL Enter the date :From date To Date Execute Double click on document no. Select back arrow Chang the company code to BSL Execute Double click on document no.
31. 31. 31 CROSS COMPANY CODE POSTINGS Company code :BIL BSL Outstanding expenses of BSL paid by BIL BSL Dr 25000 Outstanding 25000 To Bank 25000 To BIL25000 Paying company code : BIL Credit Bank :BIL 25000 Debit outstanding exp :BSL 25000 Use the Transaction code :F-02 Give the document date :Todays date Type :SA Company code :BIL Posting key :50 Account no. :200105 SBI CA Enter Amount :25000 Business area :BILH Text :outstanding expense payment on behalf of BSL Posting key :40 Account no :100500 out standing exp. New company code :BSL Enter Amount :* Business area :BILH Text :+ From the menu select document Simulate Double click third line item Business area :BILH Text :+ Select next item button Business area :BILH Text :+ Select save button or Ctr+S Posting by Company code :BIL
32. 32. 32 Cross company code no. :15 08 FI posted by Company code :BSL Cross company code no. :2 08 By viewing the cross company code document number We know which company code has initiated the posting. Select continue button Accrual orders (Imputed cost calculation) This is used for month end provision only in CO This is used for irregular expenses like Bonus Cost element category should be 3 Accrual/ Deferral per surcharge Define CO.No.range in interval for business Transaction :KAZ1 Actual cost center accrual FI Month end provision 1. Accrual / Deferral document A. Bonus provision for Nov 30.11.2008 Bonus A/c Dr.10000 To Out standing exp. 10000 Dept A B. Reverse next month 1st 01.12.2008 01.12.2008 Outstanding Exp. Dr.10000 To Bonus A/c 10000 Dept A C. Bonus provision for Dec. 31.12.2008 Bonus A/c Dr 20000 To Out standing exp 20000 Dept A 2. Open item management A). Bonus provision for Nov. 30.11.2008 Bonus A/c Dr10000 To Outstanding exp. 10000 Dept A B). Bonus provision for Dec. 31.12.2008 Bonus Dr.10000 To Outstanding exp 10000 Dept A
33. 33. 33 Month end provision Number of companies will not prepare profit & loss and Balance sheet every month, the will not make provision in the books every month in year end, companies follow accrual basis of accounting. They make provisions for the whole year. Expenditure for all the months Less (other than March) Expenditure for March More In SAP when we take production an accounting entry will be generated automatically Finished goods valuation will be based on costs for the month. Stock valuation will be accrual orders Lower in all month other than March Accrual orders Higher in March Create overhead structure Salaries 100000 Bonus -10% on salaries 1000 Debit cost center credit cost center Dep Dummy (No accounting entry) In the month end Dept A Bonus 1000 allocation to Dept A costs will be allocated to production orders There by Dept A will be zero- production valuation will be correct. Dept Dummy Bonus 1000 In the year end in FI when we make bonus provision for the whole year. 31.03.2009 Bonus A/c Dr 1200000 To Outstanding 1200000 Dept Dummy Dept dummy values in the year end 31.03.2009 Dept dummy 1200000 April to March 10000*12 = 120000 ====== =====
34. 34. 34 In the year end Dept dummy values will be zero. Creation of GL master bonus account personnel cost (FS00) group:- Give the GL Account No. :400105 Company code :BIL Select with template button Give the GL account no. :400100 (salaries) Company code :BIL Enter Change short and GL account long text to Bonus account Save Select edit cost element button (F8) Valid from date :01.04.2008 to 31.12.9999 Enter Cost element category :Select 3 accrual deferral per surcharge save Creation of cost center Dept dummy (KS01) Give the cost center : Dept dummy Reference cost center : Dept A Controlling area :BIL Enter Change name to Dept dummy Change description to cost center: Department dummy Select save button Ignore the warning message press enter Maintain overhead structure: Path:SPRO-Controlling Cost element accounting-Accrual calculation percentage method-maintain overhead structure (Transaction code is KSAZ) Select create over head structure button (F7) Over head structure :BIL1 Description :BIL overhead structure Select save button Row Base 10 B1
35. 35. 35 Enter Give the name salaries Select create button Row O/H rate (Over head rate) Description FR To CR 20 B2 Bonus 10 10 B3 Enter Give the name Bonus Dependency :KRS1(controlling area) Select create button Save Ignore the message press enter Keep the cursor on overhead structure BIL1 Select assignment button (F5) Controlling area :BIL Select actual accrual radio button Select continue button Valid from valid to overhead structure 1 2008 12 2008 BIL1 Save Double click on overhead structure BIL1 Keep the cursor on B1 From the menu select Goto calculation base From cost element 400100 Save Kept the cursor on B2 From the menu select Goto overhead rate Valid from Valid to Actual overhead 1 2008 12 2008 10% Save From 10 To 10 Crdit B3 Keep the cursor on B3 From the menu select go to credit Company code :BIL Business area :BILH Valid to :12 2008
36. 36. 36 Cost element :400105 Cost center :Dept Dummy Save Define CO.no range interval for the business transaction KAZ1-Actual cost Center accrual:(Transaction Code KANK) Give the controlling area :BIL Select maintain group button Double click on KAZ1- Actual cost center accrual Select CO.No range interval for BIL check box From the menu select Edit-Assigned element group Save Ignore the warning message press enter 1. Posting of salaries for the month of August F-02 Give the document date end posting date :03.08.2008 Date :03.08.2008 Type :SA Company code :BIL Posting key :40 Account no. :400100 Salaries A/c Enter Ignore the warning message press enter Amount :100000 Cost center Dept A Text :Salaries posting Posting key :50 Account no :200105 SBI current Account Enter Amount :* Business area :BILH
37. 37. 37 Text :+ From the menu select document Simulate and save Accrual calculation (KSA3) Accounting Controlling Cost element accounting-Actual postings Accrual calculation select cost center radio button give the cost center : Dept A period :5 fiscal year :2008 deselect test run check box select details list check box Execute Select next list level button Go and see the cost center report KSB1 Give the cost center :Dept A Posting date :01.08.2008 to 31.08.2008 Execute Select back arrow Give the cost center : Dept dummy Execute Bonus provision in the year end in FI Transaction F-02 Give the document date & Posting :31.03.2009 Type :SA Company code :BIL Posting key :40 Account no. :400105 bonus account Enter Ignore the warning message press enter Amount :10000 Cost center :Dept dummy Text :Bonus provision for the year 2008-09 Posting key :50 Account :100500 outstanding exp. Enter
38. 38. 38 Amount :* Business area :BILH Text :+ Document Simulate and save Go and see the cost center report KSB1 Give the cost center :Dept dummy Posting date :01.04.2008 to 31.03.2009 Execute STATICALLY KEY FIGURES (SKF) This is used as a basis for allocation of costs from one cost center to other cost centers. Eg. Employee / Area/ Telephone calls Dept C Dept A Dept B (service Dept) (Production departments) Salaries 500000 No.of employee of A and B Rent 100000 Sq.meter are of A & B Telephone Exp25000 No.of telephone calls of A & B Enter CO. No range interval for the business transaction. RKS (Enter statistical key figures) SKF category Fixed Total Fixed Total If we choose fixed, values If we choose total To SKF are common for all months in the year, if we dont make changes in between Eg: Employee / Area We have to enter values for SKF, for each and every month Eg: Telephone calls No.of Employees No.of Telephone calls April 2008 100 100 Aprl 2008 1000 May 2008 | | May 1500 June | | June 2000 July | | July Aug | | Aug
39. 39. 39 Sep | | Sep Oct | 150 Oct Dec | | Dec Jan.09 | | Jan 2009 Feb | | Feb March | | March Define co.no range interval for the business transaction RKS-Enter Statistical key figures Transaction Code is (KANK ) Give the controlling area : BIL Select maintain groups button Double click on RKS Select Co.No.range interval for BIL check box From the menu select Edit Assignment element group. Save Ignore the warning message press enter. Create Statistical key figures Path :Accounting Controlling cost center accounting master Data-Statistical key figures Individual processing Create (Tr.Code is KK01) Give the statistical key figure :EMP Enter Give the Name :Employee Statistical key figure unit of measurement : Select EA each Key figure category :Select fixed values under radio button Save Path : Accounting Controlling Cost Center accounting actual postings-statistical key figures-Enter (Tr.code is KB31N) Received cost center : Dept A Statistical KF : EMP Total quantity :500
40. 40. 40 Received cost center : Dept B Statistical KF :EMP Total quantity :250 Save Period end closing In the month end, we allocate costs from one cost center to other cost centers Dept C Dept A Dept B (Service department) (Production departments) Salaries 500000 no.of employee of A and B Wages 300000 No.of employee of A and B Rent 50000 Percentage basis Basis of allocation can be percentage method statistical key figures method /activity type (machine hour / labour rate) Allocation methods: 1. Assessment : A) Transfer primary cost postings and secondary cost postings. Dpt X Dept C Dept A Dept B Wages 100000 Salaries 500000 Salaries 400000 Salaries 300000 Wages 300000 Rent 50000 Add all 85500 Add all from C 95000 10% All from Dept X 100000 ---------- ----------- ----------- Less 950000 1255000 395000 ===== ======= ======= Allocation Primary cost postings Secondary cost postings B) Receiving cost centers cant track original cost element Dept A and B will not show the transfer value how much salaries wages and rent. C) Define Co.No.range interval for business transaction RKIU actual overhead assessment. 2. Distribution A) Transfer only primary cost postings B) Receiving cost center can track original cost elements.
41. 41. 41 C) Sender should be only cost center D) Define Co.No.range interval for the business transaction RKIV actual overhead distribution. 3. Periodic reposting: A) Transfer only primary cost postings B) Receiving cost center can track original cost elements. C) Sender can be a cost center or interval order. D) Define Co.No.range interval for the business truncation. RKIB periodic reposting. 4. Indirect activity allocation. A)Transfer only primary cost postings. B) Receiving cost ce nter can track original cost elements. C) Sender should be only cost center. D) Transfer quantities as well as values. E) Define Co.No.range interval for the business truncation. RKIL Indirect activity allocation . Which over method we follow, we have to create cycles. When the allocation basic is different for the cost elements in the cost center, we have to create number of cycles for number of segments for a cycle. Dept C Dept A Dept B (Service Department) (Production departments) Salaries 500000 No.of employees of A and B Wages 300000 No.of employees of A and B Rent 50000 Percentage basis Option 1: Cycle 1 Cycle 2 (Salaries and wages allocation) (Rent allocations) | | Segment 1 Segment 1 Option 2 Cycle 1 | ---------------------------------------------- | | Segment1 Segment2 (Salaries and wages allocation) (Rent allocation)
42. 42. 42 ASSESSEMENT 1. Creation secondary cost element : i.e (that is) assessment cost element : Path: Accounting Controlling Cost element accounting-Mater data-Cost element Individual processing Create secondary (KA06) Give the controlling area :BIL Enter Cost element :1000000 Valid from :01.04.2008 to 31.12.9999 Enter Name and description :Assessment cost element. Cost element category :42 (Assessment ) Save 2. Define Co.No.range interval for the business truncation- RKIU-Actual overhead assessment Use the Truncation code :KANK Give the controlling area :BIL Select maintain groups button
43. 43. 43 Double click on RKIU Select Co.No.range interval for BIL check box From the menu select Edit Assignment element group. Ignore the message press enter Creation of assessment cycle: Accounting Controlling Cost center accounting-Period and closing Current settingsDefine assessment (Tr.code S_ALR_87005742) Give the cycle :BIL1 Start date :01.04.2008 Enter Text : Assessment cycle Select iterative check box. Select save button or Ctrl+S Press enter to save in your request Select iterative check box Dept C Dept A 60% 300000 54000 Salaries 500000 Dept B 30% 150000 27000 Less :Allocation 500000 Dept Z 10% 50000 9000 -------- 0 Add: Allocation 90000 Less :Allocation 90000 ------- 0 Add: Allocation 1800 Dept Z Wages 400000 Dept X 50% 225000 4500 Add: Allocation 50000 Dept Y 30% 135000 2700 -------- 450000 Dept C 20% 90000 1800 Less : Allocation 450000 ------- 0 ==== We have to run number of items to make both cost center values zero. If we select interactive check box, system will run number of items automatically till both cost center values become zero.
44. 44. 44 Select attach segment button. Segment name : Segment 1 Description : Salaries allocation Assessment cost element :select 1000000 Sender rule :select posted amounts Share in % :100 Select actual value origin radio button Receiver rule :Select variable portions Variable portion type :Select actual statistical key figures Select sender / receivers tab Sender cost center :Dept C Under Cost element :400100 (Salaries a/c) Under Receiver cost center group :BILHYDPROD Select receiver tracing factor tab Statistical key figure :EMP Select receiver weight factors tab Select save button or Crl+S Press enter to save in your request Select attach segment button Segment name segment2 Description :Rent allocation Assessment cost element :1000000 Sender rules :Posted amount Sharing in % :100% Select actual value origin radio button Select receive rule :Fixed percentages Select senders/ receivers tab sender cost center :Dept C Cost element :400300 (Rent ) Receiver cost center group : BILHYDPROD
45. 45. 45 Select receiver tracing factor tab Dept A 70 Dept B 30 Save Press enter to save in your request Go and see the cost center Report (Tr code is KSB1) Give the cost center :Dept C Posting date :01.10.2008 to 31.10.2008 Execute Select cost element column Select sub totals button Dept C A B Salaries 1500000 No.of employees 500 250 100000 50000 Rent 25000 Percentage basis 70 30 17500 7500 Execution of assessment cycle: Path :Accounting Controlling Cost center accounting Period end closing-Single functions-Allocations Assessment (KSU5) Give the period :7 (October) Fiscal year :2008 Deselect text run check box Select details list check box Cycle select :BIL1 Execute Select receiver button
46. 46. 46 INTERNAL ORDERS This is used to view costs for a specific task. Eg. A) Vehicle wise running expenses Management has to task decision whether to sell the (or) keep the vehicle in company A) petrol expenses for the vehicle B) Repairs to the vehicle It we take GL accounts in FI we will not create each vehicle wise petrol expenses and repairs account. In cost center accounting vehicles will be under administration cost center and the petrol expenses repairs and administration expenses will be posted to administration cost center. By creating vehicle as an internal order we can get the costs. B) Telephone expenses: If we want to know telephone wise expenses in FI we will have one account for all telephones.
47. 47. 47 If we take cost center It will be entered in administration cost center - We can not get telephone wise expenses directly. By creating telephone as an order we can get telephone wise expenses. C) Production order costs In a month no. of production orders will be executed. Some production orders consume more raw material and same production orders consume less raw material. If FI we have only GL account raw material consumption We dont know order wise consumption. By crating production order, we can get order wise costs. D) Exhibition costs Company is conducting an exhibition Salesmen salaries One account Conveyance Different account Advertisement Different account Discounts Different account We don't know the exhibition costs by creating an order we can get exhibition costs Orders will be of 2 types 1)Real orders 2)Statistical orders Settlement is possible settlement not possible We can settle order statistical orders are used for decision making To Cost Center (Internal settlement) From Co to Co GL Accounts Assets (External settlement ) (From CO to FI) When we transfer from cost center To cost centers allocation by assessment / Distribution periodic reposting / Indirect activity allocation. When we transfer from Internal order settlement. Eg. Telephone expenses Dr 50000 Cost center Dept Order Tel no.66110883 To Bank 50000
48. 48. 48 The cost will be allocation to production orders from CO In the production order valuation we cant take.(50000+50000) We have to take only one time 50000 When we are posting to no. of cost objects are will be real and others will be statistical. At the time of order creation there is a statistical order check box. A) When we select statistical order is statistical order check box. Order is statistical (Automatically cost center will be real) B) If we dont select statistical order check box Order is real (Automatically cost center will be statistical ) Statistical order : Telephonewise expenses order we create as statistical order. Telephone expense Dr 50000 Cost center Dept A Order Telephone no.66611983 Statistical To Bank 50000 Cost Center Dept A Telephone expenses 50000 Allocation to paid order 50000 Cost center Dept A Zero In the month end we allocation costs from Dept A to production orders there by cost center Dept A will be zero. Order telephone no.66611983 Telephone expenses 50000 Management can see telephone wise expense at any point of time afterwards. Suppose we create order as real order Telephone expenses Dr 50000 Cost center Dept A To Bank 50000 order telephone no.66611983 Real Cost center c data Telephone Expenses 50000 Order Telephone no.6661987 Telephone expenses 50000 Allocation to production 50000 Order will be zero In the month end we allocate cost from order telephone no.66611983 to production order there by order will be zero. Afterwards management cant see telephone wise expense.
49. 49. 49 Creation of order types: Path : SPR O Controlling Internal orders order master data-Define order types (KOT2_OPA) Select new entries button Order category :Select 01 Internal order (Controlling) Enter Order type :BILT Description :Telephone orders for BIL Planning profile :select 000001 (General budget /plant profile) Object class :Select Over head cost Select release immediately check box Save We get message no.range not processed Ignore the message press enter Select assign /change interval button beside no.reage interval Double click order type :BILT Select motor pool A-ZZZZZZZZZZZZ(External) From the menu select Edit Assign element group Save Ignore the message press enter Creation of filed status group by making cost center and internal order required entry fields (OBC4) Select field status variant :BIL Double click on field status group folder Select field status group G004 cost accounts Select copy as button Change the filed status group to G002 Change the text to cost accounts (CC & IO required) IO =Internal order Enter
50. 50. 50 Save CC=Cost Center Press enter to save in your request Double click on G002 Double click on additional account assignment CO /PP order make it required entry field. Save Creation of GL master telephone expense (FS00) Give the GL account no.400305 Company code :BIL Select with template button GL account 400300 Rent account Company code :BIL Enter Change short text and GL a/c long text to Telephone expenses Select crate / Bank/Interest tab Change the filed status group to G002 Save Select edit cost element button Valid from date :01.04.2008 Enter Cost element category :Select 1 Save Creation of Internal orders: Path :Accounting Controlling-Internal orders-Master data-Special functions Order Create (Tr code is KO01) Order type :Select BILT Enter Order no. :BIL 66611983 (Telephone no.)
51. 51. 51 Description :Telephone order no.66611983 Company code :BIL Business area :BILH Select control data tab Select statistical order check box Save One more order Order type :BILT Enter Order :BIL66611984 Description :Telephone order no.66611984 Company code :BIL Business area :BILH Select control data tab Select statistical order check box Save Creation order group Up to master data the path is same Order group Create (Tr code is KOH1) Give the order group name :BILHYDTEL Enter Description :Hyderabad order group (GRP)for BIL Select insert order button(Select menu bar Edit Order Insert Order) Select to orders :BIL66611983 :BIL66611984 Save Posting of transaction in FI (F-02) Document date :Todays date Type :SA Company code :BIL Posting key :40 Account no. :400305 Telephone exp
52. 52. 52 Enter Give the amount :100000 Cost center :Dept A Order :BIL66611983 Text :Telephone expenses Posting key :50 Account no. :200105 (SBI current account ) Enter Amount :* Business area :BILH Text :+ From the menu select Document Simulate and save To view internal order wise report Path :Accounting Controlling-Internal order-Information system-Reports for Interval orders -Line items Order -Actual line items-(Tr. Code is KOBI Give the order no.BIL66611983 Remove the order group Execute Keep the cursor and telephone expense line item select document button Planning order wise Path :Accounting Controlling Internal orders Planning Cost and activity inputs Change (KPF6) Version :0 From period :8 (November) To period :8 Fiscal year :2008 Select next page or page down button Give the order no. :BIL66611983 Cost element :400305 Telephone expense Select from based radio button Select view screen button
53. 53. 53 Cost element :400305 Total plan cost :75000 Select save button or Ctrl+S To view variant report order wise Path :Accounting Controlling-Internal order Information system-Reports for internal order-Plant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993) Controlling area :BIL Fiscal year :2008 From period :8 (Current month) To period :8 Pant version :0 Order values :BIL66611983 Execute Real orders: They are used for vehiclewise expenses Petrol expenses Dr 50000 Order no.AP9Z1234 To Bank 50000 In the month end: Cost center Dept A Order no.AP9Z1234 Settle to Cost center Dept B Cost center Dept C Settlement can be percentage basis / ratio basis /Amount basis Order No AP9A1234 Petrol expenses 50000 Allocation Dept A 25000 Dept B 15000 Dept C 10000 ------- ------ 50000 50000 ==== ==== Order will be zero
54. 54. 54 Petrol expense Dr 50000 Cost center:Common Order No.AP9Z1234 Statistical To Bank 50000 In the month end from cost center common allocate to Dept A, Dept B and Dept C by assessment / Distribution / Periodic posting /Direct activity allocation. Cost center common Petrol Expenses 50000 Allocation to Dept A 25000 Dept B 15000 Dept C 10000 --------- ------- 50000 50000 ==== ===== Cost center will be zero Order no.AP9Z1234 Petrol expense 50000 ===== Management can see vehicle wise expenses at any point of item afterwards. Creation of filed status group by making only internal order required entry filed (OBC4) Select filed status variant :BIL Double click on filed status group folder Select field status group G002 Select copy as button Change field status group to G010 Change the text to cost accounts (IO required ) Enter and save Press enter to save in your request Double click on G010 Double cock additional account assignments Cost center make it optional entry field Save
55. 55. 55 Creation of GL master petrol expense under administration group (FS00) Give the GL Account no. :400310 Company code :BIL Select with template button Give the GL account no.400300 Rent account Company code :BIL Enter Change short text and long text to petrol expenses Select create/bank /interest tab Field status group :G010 Save Select edit cost element button Valid from date :01.04.2008 Enter Cost element category :01 Save Creation of secondary cost element i.e. Statement cost element (KA06): Give the cost element :1000001 Enter Name and description settlement cost element Cost element category :Select 21 internal settlement Save Maintain allocation structure: Path :SPRO-Controlling Internal orders-Actual posting- Settlement-Maintain allocation structures Select new entries button
56. 56. 56 Allocation structure :B1 Text :BIL allocation structure Save Press enter to save in your request Select :B1 Double click assignments folders Select new entries button Assignment :01 Text :Vehicle expenses settlement Save Select :01 Double click on source folder From cost element :400310 Petrol expenses Save Press enter to save in your request Double click on settlement cost elements folder Select new entries button Receiver category :Select CTR cost center Settlement cost element :1000001 Save Petrol expenses will be settled to cost center by using secondary cost element settlement cost element. Through orders. Maintain settlement profiles: Same path Double click on maintain settlement profiles Select new entries button Settlement profiles :BIL1 Description :BIL settlement profile Allocation structure :B1
57. 57. 57 Select to be settled in full radio button Double click on CTR cost center Select % settlement check box Select equivalence number check box Select amount settlement check box Under valid receivers For cost center :Select settlement required Max.no. distribution rules :999 Residence time :12 months Save Press enter to save in your request Rule 1: Order no.AP9Z1234 settle cost center Dept A 30000 Petrol expenses 50000 settle cost center Dept B 15000 Dept C 5000 Rule 2 Order No.AP9Z1234 Settle to cost center Dept A 85% Petrol expenses 50000 Settle to cost center Dept B 10% 5% Order no.AP9Z1234 settle to cost center Dept 4: Petrol exp 50000 Dept 3: Dept 1: Maintain number range for settlement documents: Go through Same path (Tr.code is SNUM) Select maintain groups button Double click on controlling area BIL Select Standard accounting document check box From the menu select EditAssign element group Save Ignore the message press enter Creation of order type (KOT2_OPA)
58. 58. 58 Select new entries button Order category :Select 01 Internal order (controlling) Enter Give the order type :BILV Vehicle order type BIL Settlement profile :BIL1 Budget profile :0000001 (General budget profile) Object class select :Overhead costs Select release immediately check box Save Ignore the message press enter save in your request Select assign /Change intervals button beside no.range interval Double click on BILV Select motor pool A-ZZZZZZZZZZZZZZ external check box From the menu select Edit Assign element group. Save Ignore the message press enter Define co.no.range interval for the business truncation K0A0-Actual settlement. Use the transactions code (KANK) Give the controlling area :BIL Select maintain groups button Double click on KOAO actual settlement Select co.no.range interval for BIL check box Form the menu select Edit Assign element group. Save Ignore the warning message press enter END USER AREA: Creation of internal order (KO01) Give the order type :BILV Enter
59. 59. 59 Give the order :AP9Z1234 Description :Vehicle no.AP9Z1234 Company code :BIL Business area :BILH Select control data tab Deselect statistical order check box Select settlement rule button Category :CTR cost center Settlement receiver :Dept A Give the percentage :70 One more Category :CTR Settlement receiver :Dept B Percentage :30 Save Ignore the warning message press enter Posting of petrol exp F-02 Give the document date :Todays date Type :SA Company cod :BIL Posting key :40 Account no. :400310 petrol exp. Enter Give the amount :100000 Give the order no. :AP9Z1234 Text :Petrol exp. Posting key :50 Account no. :200105 SBI current account Enter
60. 60. 60 Amount :* Business area :BILH Text :+ From the menu select menu document Simulate and save Actual settlement : Path :Accounting Controlling-Internal order-Period end closing-Single functions- Settlement Individual processing (K088) Give the order :AP9Z1234 Settlement period :8 (current month) Fiscal year :2008 Deselect test run check box Select check transaction date check box Select execute button Select details list button Note : Order means overall expenses Eg: Vehicle Expenses Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs, Driver salary etc BUDGETING AND AVAILABILITY CONTROL Planning Budgeting 1. We can plant cost element wise in 1.Budgeting will be done order wise
61. 61. 61 For budgeting SAP has given availability control Order no.AP9Z1234 Budget amount 500000 Option 1 Option2 Option 3 Give Give warningGive Warning To the user Error1 To the user And inform to Budget manager If actual amount exceeds 85% of budget 425000 Or If the variance is above 20000 i.e actual 5200000 Or Both Whichever activity comes first Or If a actual amount exceeds 70% of budget go for option1 If actual amount exceeds 85% of budget go for option 2 If actual amount exceed 100% of budget go for option 3 When we do budgeting it generate a document We have to give budgeting No. range interval only for 04 (Hard coded by SAP) This is given at client level and not at controlling area level it is not year specify. Note : Order Eg.Vehicle Expenses Cost element :Eg.Vehicle for petrol, repairs,Driver salary etc., Maintain no.range for budgeting: Path :SPRO-Controlling-Internal orders-Budgeting / availability control-Maintain no.ranges for budgeting (Tr code is OK11) Select change intervals button Define tolerance limits for availability control Same path Select new entries button Controlling area :BIL the order 2. We can do planning period wise in a year (Month wise) 2. Budgeting should be done year wise 3.Micro level (Lower level) 3. Marco level (High level)
62. 62. 62 Profile :select 000001 General budget profile Tr.group :++ all activity groups Action :select 2 waring with mail to person response Usage :85 Save Press enter to save in your request Specify exempt cost elements from availability control Same path Petrol expenses Repairs Drivers salary is Fixed cost We can specify when we post to drivers salary all with order AP9Z1234 Even if, it exceeds 85% of budget no. message need to be given. It is known expenditure Select new entries button Controlling area :BIL Cost element :400100 Salaries account Save Press enter to save in your request Maintain budget manager Same path Select new entries button Controlling area :BIL Order :BILV Object class :OCost (Overhead cost) User name :SAP user (budget manager) Save Press enter to save in your request Budgeting order wise (END USER AREA)
63. 63. 63 Path :Accounting-Controlling Internal order-Budgeting-Original budget Change (Tr code is K022) Order :AP9Z1234 Enter For the period :500000 (Budget amount) Over / budget also 500000 From the menu select Extras Availability: Control Activate Save Posting of petrol expenses (F-02) Give the document date :Todays date Type :SA Company code :BIL Posting key :40 Account no. :400310 Petrol expenses Enter Give the amount :350000 Order :AP9Z1234 Text :Petrol expense Posting key :50 Account no. :200105 SBI current account Enter Give the amount :* Business area :BILH Text :+ From the menu select Document Simulate and save Ignore the message press enter To view in box of the budget manager Path :SAP MenuOffice Work place (Tr code is SBWP)
64. 64. 64 Select inbox folder We get a message accounting document no.
65. 65. 65 PROFIT CENTER ACCOUNTING This is used to view profitability division wise /product wise /location wise if business area is not use in FI Idea scenario Company FI | Company code FI | Business area FI (Location) | ---------------------------------------------------------------------------------------- | | | | Steel Cement Pharma Co-profit center Division Division Division Accounting | | Product wise Co profitability Analysis Option 1 Option 2 Hyderabad location HYD BGL MOM | | | | Steel Cement Pharma Steel cement Pharma Profitability Profitability Balance sheet The advantage of profit center accounting is it derives profit center automatically though derivation rules. A) In case of expenditure Tough cost centers B) IN case revenues Automatic account assignment C) In case of balance Though business area Sheet it items (Applicable for option 2) Eg:a) At the time of creation of cost center assign profit center Dept A-Assign profit center steel b) At the time of posting wages a/c Dr 500000 Dept A To Bank 500000 It updates cost center Dept A as well as profit center steel.
66. 66. 66 We have to create dunning profit center. At the time of posting, when there is no derivation rules, system updates dummy profit center. Transfer form dummy profit center to respective center. Create derivation rule so that future transactions will not go to dummy profit center. They will go to respective profit centers. Set controlling area (OKKS) Path :SPRO-Controlling Profit center accounting-Basic settings-Set controlling area Give the controlling area :BIL Enter Maintain controlling area settings: (OKE5) (Follow through path ) Path :Up to base settings the path is same- Controlling area settings-Maintain controlling area settings Standard hierarchy :BIL Select elimination of business volume check box Profit center local currency type :Select 20 Controlling area currency Select confirm button Select store truncation currency check box Save Elimination of internal business volume Purchase Material no. 1 Profit center steel Order Vendor no. 1234 | Plant HYD | Profit center Steel | Qty 1 Kg | Rate 100 Goods Receipt It should no take in steel profit center 100+100 It should take only one time Create dummy profit center
67. 67. 67 Path :SPRO-Controlling-Profit center accounting-Master data-Profit center-Create dummy profit center(Tr code is KE59) Double click on dummy profit center Give the dummy profit center :BIL dummy Select basic data button Name :BIL dummy Description :Dummy profit center for BIL Profit center group :BIL Save Set control parameters for actual date Path : Up to basis settings the path is same Controlling area settings -Activate direct postings-Set control parameters for actual data (Tr code is 1KEF) Select new entries button From year :2008 Select Line items check box Select online transfer check box Save Maintain plan versions Up to activate the path is same Plan version Maintain plan version Select version :0 Plan /Actual Version Double click on settings for profit center accounting folder Select new entries button Year :2008 Select online transfer check box Select line items check box Exchange rate type :B (bank selling rate) Save Press enter to save in your request
68. 68. 68 Define no. ranges for local documents A) At the time of creation of cost center Assign profit center Dept A-Assign profit center B) At the time of posting Wages A/c 500000 Dept A To Bank 500000 When there is no derivation rule It updates dummy profit center Transfer from dummy profit center To Profit center steel No FI document will be generated No co document will be generated once profit center document will be generated (local) Path :SPRO-Controlling-Profit center Accounting-Actual postings-Basic settings: Actual Define number ranges for local documents (Tr code is GB02) Select maintain groups button Select actual document from direct posting with GB01 check box From the menu select interval Maintain Give the company code :BIL Enter Select interval button Year :2008 From no :1 To :100000 Enter and save Press enter to save in your request Select back arrow Select planned doc.with direct posting with GB01 check box Form the menu select interval maintain Give the company code :BIL Enter Select interval button Year :2008
69. 69. 69 From no. :100001 To no. :200000 Enter and save Creation of profit center: Path :Accounting-Controlling-Profit center accounting-Master data-Profit center-Individual processing-Create (Tr code is KE51) Give the profit center :Steel Select master data button Analysis period to :01.04.2008 to 31.12.9999 Name :Steel Long text :Profit center steel Person responsible :Mr A Profit center group :BIL select activate button (Shift+F1) One more profit center profit center cement select master data button name :Cement long text :Profit center cement person responsible :Mr B profit center group :BIL select activate button Create account groups up to master data the path is sameAccount group create (Tr code is KDH1) Give the account group name :PLITEMS ( Profit & Loss) Enter Description :P & L accounts for BIL Select insert account button From :300000
70. 70. 70 To :499999 Save Select Back Arrow Account groups :BSITEMS Enter Description :Balance sheet accounts for BIL Select insert account button Form A/c :100000 To A/c :299999 Save Assign profit center in cost center Path :Accounting-Controlling-Cost center accounting-Master data-Cost center- Individual processing-Change (KS02) Give the cost center :Dept A Select master data button Give the profit center :Steel Select save button or Ctrl+S Ignore the warning message press enter Cost center :Dept B Enter Profit center :Cement Save Ignore the warning message press enter Creation of sales account as revenue element (FS00) Give the GL account no. :300000 Sales A/c Company code :BIL Select edit cost element button Enter
71. 71. 71 Cost element category :Select 11 Revenues Save Maintain automatic account assignment of revenue elements Path :SPRO-Controlling Profit center accounting Actual postings-Maintain automatic account assignment of revenue elements (Tr code is OKB9) Select new entries button Company code :BIL Cost element :300000 Sales A/c Account assignment details :Select 2 Business area is mandatory Save Press enter to save in your request Select :BIL with cost element 300000 Double click on detail per business area /valuation area folder Select new entries button Option 1 Option 2 HYD location | Steel cement Pharma HYD BGL MUM 300000 | | | HYD Steel Steel Cement Pharma 300001 Sales cement 300000 Sales account HYD Cement 300002 Sales pharma HYD Steel HYD Pharma BGL Cement Mum Pharma Business area : BILH Profit center : Steel Business area : BILB Profit center : Cement Save
72. 72. 72 Choose addition balance sheet and p & L accounts Applicable for second scenario: Application for second option Same path Select choose accounts (Tr code is 3KEH) select new entries button Account from :100000 Account to :299999 Default profit center :Steel Save Press enter to save in your request Select profit center determination button Select crate step button Step description :Profit center derivation though business area for balance sheet items. Select drop down button under name column Select GSBER businesses area Save Select maintain rule values button Select source field intervals on /off button Account no.100000 To account no.299999 Business area :BILH Profit center :Steel Account no :100000 To account no. :299999 Business area :BILB profit center :Cement Save END USER AREA 1) Planning profit center wise for p & L items
73. 73. 73 Path :Accounting Controlling Profit center accounting Planning cost /Revenues-Change (Tr code is 7KE1) Version select :0 From period :8 To period :8 Fiscal year :2008 Company code :BIL Select next page or page down button Profit center :Steel Account group :PLITES Select from based radio button Select overview screen button Per account no.300000 Sales account Profit center reporting currency :600000 (Minus report currency) For account no.400100 salaries A/c without any sign Save Planning profit center wise for balance sheet items (Only for second scenario) Up to planning the path is same Balance sheet accounts change (Tr code is 7KE3) Version :0 From period :8 To period :8 Fiscal year :2008 Company code :BIL select next page or page down button Profit center steel Account group :BSITEMS Select form based radio button Select overview screen button
74. 74. 74 For account :100300 SBI rupee term loan Profit center reposting currency 20000- with minus sign For 200105 SBI current account profit centers reporting currency 200000 without any sign Save Posting of cash sales (F-02) Give the document date :Todays date Type :SA Company code :BIL Posting key :40 Account no. :200105 (SBI current account) Enter Amount :550000 Business area :BILH Text :sales posting Posting key :50 Account no. :300000 (Sales a/c) Enter Amount :* Business area :BILH Text :+ Form the menu select Document Simulate and save Posting of salaries (F-02) Document date :Todays date Type :SA Company code :BIL Posting key :40
75. 75. 75 Account no. :400100 Salaries a/c Enter Give the amount :475000 Cost center :Dept A Text :Salaries posting Posting key :50 Account no. :200105 SBI current account Enter Amount :* Business area :BILH Text :+ Document simulate and save To View variance report profit center wise for P & L items Path :Accounting Controlling Profit center accounting-Information system- Repost for profit center accounting-Interactive reporting Profit center group:Plan /actual /variance (Tr code is S_ALR_87013326) From period :8 (Current /Running month) To period :8 Fiscal year :2008 Plan version :0 Profit center values :steel Profit center accounts groups :PLITEMS Select execute button To view variance report profit center wise for balance sheet items: Up to interactive reporting the path is same Profit center group: Balance sheet accounts plant / Actual /Variance (Tr code S_ALR_87013336) From period :8 (Running month) To period :8 Fiscal year :2008
76. 76. 76 Plan version :0 Profit center values :Steel Balance sheet account group:BSITEMS Execute Transfer of values from one profit center to another profit center One cost center works for no.of profit centers we an assign only one profit center is cost center. In dept A Profit center steel From profit center steel transfer to cement Manual transfer through cycles No.FI document will be generated No.CO document will be generated Only profit center document will be generated. Path :Accounting Controlling-Profit center accounting-Actual postings-Profit center document Enter (Tr code is 9KE0) Layout select 8A-001 document :Profit center /account Select execute button Company code :BIL Select Enter screen button Profit center :Steel Account no. :400100 Salaries In profit center local currency 500000 (with minus sign) Profit center :Cement Account no. :400100 Salaries Amount :500000 (without minus sign) Save
77. 77. 77 INTEGRATION Organization structure : FI: Business area Company | Company code MM:- Structure SD: Structure Business area | Factory / Sales organization Company code level / | Plants Branch/Port | Regional location | | | Storage locations Raw material / Finished goods Distribution-> Direct sales through /Packing material Channel Agents | | Division Product groups/ products Why we create port as a plant: Keep the material on ship HYD Chennai Customer Factory Port Export sale Terms of delivery-FOB (Free on Board) ownership will be transferred once we kept the martial on ship.
78. 78. 78 Business area will be assigned to plants, plants will be assigned to sales organization business area will be assigned to sales organizations. In SD module, combination of sales organization, distribution channel and division One sales area. Sales Area 1 Sales Area 2 Hyd sales Org. Hyd Sales org | | Direct sales Through agents | | Steel Steel Movement types: Similar to posting keys in FI 101 Material receipt against purchase order /production order 102/122 Reversal of 101 201 Issue to cost centers 202 Reversal of 201 261 Issue to orders 262 Reversal of 261 521 Production receipt without production orders. 522 Reversal of 521 561 Opening stocks taking 562 Reversal of 561 601 Delivery (sales) 602 Reversal of 601 Difference between 201 and 261 Cost centers Dept A Dept B Dept C Issue material Production order 1 (Movement type 261) Stores items to issue Production order 2 (Mov.type 201) (cost center 201) Production order 3 Material issue is identifiable to production orders use movement type 261 Material issue is not identifiable to production orders use movement type 201 Transaction key /process key a) BSX Inventory postings b) WRX Goods receipt /Invoice receipt (GR/IR)
79. 79. 79 c) PRD Price difference /Production order differences d) GBB Offsetting entry for inventory postings (i) VBR consumption (ii) VNG Scrapping (iii) BSA Opening stocks (iv) ZOF Production receipt without production order (v) AUF Production receipt with production order (vi) VAY Delivery where sales account is created as revenue element (CO implemented) (vii) VAX Delivery where sales account is not created as revenue element (Co not implemented) (viii) AUA production order differences Eg: 400000 Raw material consumption 200121 Inventory raw material For consumption Raw material consumption Dr To Inventory raw material For GBB VBR Assign account no.400000 For BSX Assign account no.200121 Valuation class: Valuation class determines the GL accounts to be posted automatically. A) Raw materials Local Imported Inter unit purchases Inter company purchases 4 Valuation class B) Stores :Local 2 valuation class C) Finished goods own manufacturing 1 valuation class Valuation grouping code / valuation modifier /Valuation modification key: Company codes BIL BCL BSL Chart of accounts BIL Plants HYD-BGL BGL-MUM HYD-MUM Local raw materials RM1 RM2 RM3-RM1 RM2-RM3 Incase of purchases, 200121 Inventory raw material local
80. 80. 80 When we follow same chart of accounts for numbers of company codes, Instead of assigning accounts number of times, assign only one time by using valuation grouping code. Valuation Chat of accounts Company code Valuation Areas Plants Grouping HYD BIL BIL X BGL BIL BIL X BGL BIL BCL X MUM BIL BCL X HYD BIL BSL X MUM BIL BSL X For X in case of RM local purchases assign account number 200121, inventory Raw material local. This is similar to posting periods in FI A) Define posting period variant X B) Assign posting period variant to company codes X to BIL X to BCL X to BSL c) Define posting periods for variant X for X1, 2008 12,2008 Material types Price controls Raw materials ROH V-Moving average price purchase price Stores & spares ERSA V-Moving average price purchase price Packing & material VERP V-Moving average price purchase price Finishing goods FERT S-Standard price Raw materials + Semi finished goods HALB Overheads Purchased V-Moving average price Purchase price Produced S-Standard price Raw material+Overheads Trading goods HAWA V-Moving average price Purchase price Services DIEN Semi finished goods purchased Dept A Dept B Dept C Dept D 15 days FG Sales order To be delivered with in 2 days Purchase an item where with In 2 days purchase an item
81. 81. 81 Where processing of A,B and C is completed D processing of D Semi finished goods produced Dept A Dept B Dept C Dept D Issue RM 15 days time Sales Dept got an order for sale where the processing of A and B is completed Take production After completion Of B and sell Trading goods: Purchase FG and sell FG without doing any processing. Services: Plant is having operating capacity No sales orders Job work for others We get job work changes Material Does not belong to us - Material types are similar to account groups in FI - There we create GL masters here we create material masters. - GL master are created under account group where as material masters are created under material type. - Material master is created at plant level-when number of plants are using the same material it will be extended(copied) to other plants. - For materials we can open 2 periods at a time. Oct Nov. When we open Dec.-Automatically Oct will be closed. Where we crate material master We will have number of tabs (Views) Basic data Purchase view Sales view MRP view Quality Ware house management Accounting Costing MM Flow A) Material requisition By production Dept to Stores B) Purchases requisition By stores to purchases C) Call for enquiries, Get quotations and do price comparisons By purchase Dept. D) Create purchase order Vendor number, Material Quality, Rate, Plant, Company code Delivery terms, payment terms, Purchase organization E) Release It is optional
82. 82. 82 It will work through work flow If P.O value is less than Rs.10000 To be released by manager purchases If P.O value is Rs.10000 and above To be released by GM(Purchases) And less than 100000 if P.O value is 10000 and above To be released by Director Once we save the purchase order, based on the value it goes to the inbox of the command authorized person, till is releases we cant take goods receipt. F) Goods receipt With reference to P.O Inventory RM local DR 100 To GR/IR clearing RM local 100 Balance sheet current asset BSX Balance sheet current liability WRX (Qty in GR*Rate as per P.O) G) Invoice verification-Against PO/GR GR/IR clearing RM local DR 100 Balance sheet CL WRX To party 100 Balance sheet CL From PO, Party no. will be taken i) Raw material consumption RM Consumption Local DR 100 P & L Debit GBB VBR To inventory RM local 100 BS C/A(Current Asset) BSX J) Wages payment Wages A/c DR 20 P & L Debit To Bank 20 BS CA K) Production Receipt At product cost Inventory FG DR 120 BS C/A BSX (FG =Finished goods) To INC/DEC in stocks FG 120 P & L Credit GBB ZOF In case of on production order /CPP module not implement GBB AUF in case of production order (PP module implemented) SD steps L) Delivery At product cost INC /DEC in stocks FG DR 120 P & L Credit GBB VAX If sales account is not created as revenue element (Co not implemented /GBB VAY If sales account is created as revenue element (Co Implemented) To Inventory FG 120 BS C/A M) Sales billing
83. 83. 83 Customer A/c DR 150 BS C/A From sales order, customer number will be taken To Sales 150 P & L credit ERL LCL=Local Inventory FG=Raw material consumption local +wages GR=Goods receipt INC/DEC STK FG=Increase /Decrease stock finished goods P & L account H) RM can local 100 L)Sales 150 Wages 20 J)INC/DEC STKFG 120 Net profit 30 K)INC DEC STK FG -120 0 ------- ----- 150 150 === === Balance Sheet Surplus in P & L Account 30 F) INV RM LCL 100 F) GR/IR CLG RM LCL 100 H) INV RM LCL -100 E) GR/IR CLRG RM LCL -100 0 --------- 0 a) Sundry creditors RM 100 I) Bank -20 j) INV FG 120 K)INV FG -120 0 L)Sundry debtors 150 ---- -------- 130 130 === === Integration rules A) In material master we specify valuation class B) For valuation class we assign GL accounts based on the nature of transaction C) At the time of material receipt/Issue stores person enters movement type, material number and quantity. Our accounts will be up dated automatically based on accounts assignment to valuation class which is specified in material master Eg: Material no. Valuation Inventory postings GR/IR Consumption BSX Clearing (GBB VBR) (WRX) RM1 (local) 3000 RM local 200121-INV-RM 100520-GR/IR 40000-RM Local CLRG RM LOCAL Consumption-IMP
84. 84. 84 Local Raw Material 1. Purchase order Material RM1 Vendor -1234 Qty-100 Kgs Rate 5 Rs Save P.O.No.1 2. Goods receipt with reference to P.O-P.O No.1 Movement Type:101 Debit BSX 200121 Credit WRX Material RM1 Qty 60 kgs Save Material Doc no.200001 200121 Inventory RM local DR 300 100520 GR/IR CLR RM Local 300 (Qty IN GR *Rate as per P.O) 60*5 Raw material consumption Movement type 201 Debit GBB VBR Debit A/c No. 400000 Credit BSX 200121 Material RM1 3000 Qty 10 Kgs 400000 RM Consumption LCL DR 50 200121 Inventory RM Local 50 (Qty issued * Moving average rate) Imported raw material 1. Purchase order Material -RM2 Vendor -4567 Qty-1Kg Rate -100 PO No.2 2. Goods receipt- with reference to PO-PO No.2 Movement type:101 Debit BSX 200122 Credit WRX 100521 Martial RM2 3001 Qty 1 Kg Save Material Doc No.200003 200122- Inventory RM IMP DR 100 100521 GR/IR CLRG RM IMP 100 (Qty IN GR* Bate as per P.O) 1*100
85. 85. 85 Raw material returns Material doc no.200003 Movement Type 102 Debit WRX 100521 Credit BSX 100122 Material RM2 3001 Qty 1 Kg Save Material doc no.200004 100521 GR/IR CLR RM IMP DR 100 200122 Inventory RM IMP 100 Why SAP does not support purchase accounting why it supports inventory accounting: RM Local raw material 1 2 3 Not included in purchase Bill received Less stock reported Provision statement by stores RM consumption=Qty Value Opening stock 0 0 0 0 Add purchase 0 516.50 516.50 _____________________________ 516.50 516.50 Less :Closing stock 300 300 200 ------------------------------------------ Raw material consumption X X X ======================== Wrong wrong wrong 1. Purchase order material no. RM1 Vendor 1234 Qty 100 Kgs Rate 5 Rs Excise 10% CST 2% Other change 1% Material receipt: We get excise invoice to claim cenvat Final invoice many come or may not come. Only excise invoice received Basic price 500 Excise 50 Stores person updates his records with the above data. Issue: Not included in purchase provision statement: Account Dep gets a statement from stores in the month end material received bills not received to make purchase provision.
86. 86. 86 Stores person By mistake he has not included the above item in the purchase provision statement. Account Dept.gets closing stock statement from stores-in the statement he is showing 60 kgs stock at 5Rs.300 Issue2 Closing stock valuation wrong We have received invoice after words in invoice wrong Basic 500 500 Excise 50 50 CST2% 11 11 Other 1% 5.5 5.5 ------- -------- --- Bill amount 566.50 516.50 50 Purchase a/c cenvat receivable In the month end stores person sends closing stock statement 60 kgs at Rs.5 Should be value 516.5/100*60=309 *Issue less stock reported by stores If this month production is more, profitability will be more. If this month production is less, profitability will be less. Physical stock available -60 Kgs Reporting to accounts only 40 kgs 40*5=200 Inventory accounting 1. Purchase order Material no.RM1 Vendor 1234 Qty 100 Rate 5 Tax code A1 (10% Excise +2% CST) other charges 1% PO no.1 2. Goods receipt with reference to PO no.1 Movement type 101 Material RM1 Qty 100 Save Entry will be passed automatically Inventory RM local DR 516.50 To GR/IR CLR RM Local 516.50 Qty in GR*Rate as per PO
87. 87. 87 Store records : Material RM1 Qty :Value Receipt :100 Kgs 516.50 Account records 200121 Inventory RM local 516.50 DR 3. Raw material consumption Movement type 201 Material RM1 Qty 40 Kgs Save Accounting entry will be generated automatically RM consumption local DR 206.5 (516.5) 100*40 To Inventory RM local 206.6 Qty issued moving .AVG price Stores records: Material RM1 Qty Value Receipt 100 Kgs 516.50 Issue 40 Kgs 206.6 ------ ------ 60 Kgs 309.9 Accounts records 200121 Inventory RM local 516.50 DR 206.60 DR CL stock value 309.9 Price differences are two types 1)Batch method 2)Moving average method | ------------------------------------------------------- | | | Stock fully available Stock partly available Stock no available 1st method Batch method: RM1 PO PR 10 RS BILL for 12Rs 1.Material Receipt Batch Qty Rate Amount Inv RM local DR 1000 BSX 1 100 10 1000 To GR/IR CLR RM LCL/100 WRX 2 50 40 2000 2. Raw Material consumption
88. 88. 88 ----- ----- RM consumption local DR 100 GBB VBR 150 3000 To INV RM local 100 BSX 10 10 100 --- ---- 140 2900 3. Invoice verification 180 GR/IR CLRG RM LCR DR 100 WRX ----- ----- INV RM LOCAL DR 180 BSX 90*2 140 3080 Price diff RM LCL 20 PRD 100*2 To Vendor 1200 form PO vendor no. is taken Break up 1 90 12 1080 2 50 40 2000 Preparation in P & L account : Raw material consumption : Raw material consumption +/ price difference RM Eg: RMC 100 PD RM 20 ---- 120 === For the truncation key PRD We can assign raw material consumption account or price difference RM A/c Moving average method: stock fully available RM1 PO Price :10 Final Bill for Rs.12 Qty rate amount 1. Goods receipt Bill qty 100 10 1000 Inv.RM local DR 1000 BSX 50 40 2000 To GR/IR CLRG RM LCL 1000 ---- ------ 2. Raw material consumption 150 3000 RM consumption local DR 400 GBB VBR 20 20 400 To INV RM local 400 BSX ---- ----- Average bill 130 2600 3.Invoice verification
89. 89. 89 GR/IR CLRG RM LCL DR 1000 WRX 200 GR/IR CLRG RM LCL DR 1000 WRX ---- ----- 130 2800 INV RM Local DR 200 BSX 100*2 To Vendor 1200 form PO Vendor no.is taken Consumption rate: Value / Qty 3000/150=20 Next consumption rate Value / Qty 2800/130=21.54 3rd method moving average method: Stocks partly available RM1 PO Price 10Rs Bill for 12Rs 1.Material receipt Qty Rate Amount 1. Goods receipt Bill qty 100 10 1000 INV RM local DR 1000 BSX 50 40 2000 To GR/IR CLRG RM 1000 WRX --- ----- 150 3000 130 20 2600 2. Raw material consumption ----- ------ RM comp local DR 2600 GBB VBR AVBL QTY 20 400 40 TO inv RM local 2600 BSX ---- ---- 20 440 3.Invoice verification GR/IR CLR RM LCL DR 1000 WRX INV RM Local Dr 40 BSX 20 *2 Price diff RM DR 160 PDR To Vendor 1200 from PO vendor no.is taken Consumption rate Value / Qty 30000/150=20 Next consumption rate: Value qty 440/20=22.00 Incase of batch method It has checked batch wise for the material. In case of moving average method if has checked material wise. 4th Method-moving average method: Stocks not available safety socks RM1 PO Price 10 Rs Bill for Rs12 1. Material receipt
90. 90. 90 Qty Rate Amount Inv RM local DR 1000 BSX Bill Qty 100 10 1000 To GR/IR CLRG RM LCL 1000WRX 50 40 2000 2. Raw material consumption ---- ---- ------ RM Consume local DR 3000 GBB VBR 150 3000 150 20 3000 To INV RM Local ---- ----- 3. Invoice