enterprizeerp - actual costing in sap
DESCRIPTION
Actual Costing in SAP is a functionality not used by many SAP customers. It can be used for Actual Costing of Materials, Use of Multiple Valuation-Group, Legal, Profit Center, Use of Multiple Currencies – Dollars, Euro and Vendor Price Performance Management, Gross Margin ManagementTRANSCRIPT
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SAP Business Process Improvement Series
Actual Costing in SAP
www.Enterprizeerp.com
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Why Would I Want To Use Actual Cost?
• Actual Costing of Materials
• Multiple Valuation-Group, Legal, Profit
Center
• Multiple Currencies – Dollars, Euro
• Vendor Price Performance
• Gross Margin Analysis – Standard and Actual Costing
• Cost Management
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What SAP Modules Supports Actual Costing?
• Material Ledger
• FI
• Cost Center Accounting
• Profitability Analysis
• Materials Management
• Production Planning
• Plant Maintenance
• Project Systems
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Key Integration Areas
Sr.No. Areas SAP Functionalities SAP Modules
1 Inventory Valuation General Ledger Posting FI
2 Capitalize Variances General Ledger Posting FI
3 Actual Price Determination Cost Estimate COPC
4 Cost Component Split Cost Estimate COPC
5 Material Master Maintenance Materials Management MM
6 Procurement Materials Management MM
7 Automatic Account Determination Materials Management MM
8 Product Quantities Sales & Distribution SD
9 Material Quantities Production Orders PP
10 Perodic Revaluation Cost of Goods Sold COPA
11 Actual Cost Component Split Cost of Goods Sold COPA
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What Is Required To Calculate Actual Costs?
•Material Ledger Activation
•Set-up & Master Data
• Standards
• Posting Actuals
• Month End Closing
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Set-up and Master Data
• Material Ledger Configuration
• Plant Set-up
• Material Master Creation
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Material Ledger Configuration
• Do You Really Want to Do This?
• Be Sure You Understand What You Want to Accomplish
• Configure the Material Ledger
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Plant (Valuation Area) Set-up
• Assign Material Ledger Types to Valuation Area
• Activate Valuation Areas for Material Ledger
• Set Valuation Area As Productive
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• Specification of Settlement Type
– 2 Immediate Settlement
– 3 Periodic Settlement
• Price Control = S
Material Master Creation
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Creation of Standards • During the
Month Everything Happens at Standard
• Standards Are Needed for Variance Based Reporting
• Allows for Cost Component Breakdown*
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Planning and Budgeting
• Considerable Use of Activity Types
• Primary and Secondary Cost Planning
• Target = Actual Activity Types
• Fixed and Variable Cost Planning
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Posting Actuals
• Logistics Invoice Verification
• Standard Material Movements
• Standard Cost Center Postings
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Month End Close Process
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Month End Closing - Target = Actual Activity Allocations
• Allocations Based on Operating Rate
• Receiver Based Fixed Quantity Allocations Can Be Used
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Month End Closing - Orders and Projects Preliminary Settlement
• Maintenance Orders
• Engineering Projects
• Critical for Actual Cost Flow
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Month End Closing - Cost Center Actual Activity Price Calculation
• Quick
• Handles Iterative Costs
• Supports Cost Component Breakdown - Even in Actuals
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Month End Closing - Order & Project Revaluation With Actual Activity Rates
• Gets Actual Costs in Overhead Order Reporting
• Allocates Actual Costs to Manufacturing Orders
• Can Allocate Directly to Material Ledger
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Month End Closing - Orders & Projects Final Settlement
• Brings Sender Cost Center and Receiving Order Into Balance
• Adjusts Cost Element in Receiving Cost Center
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Month End Closing - Material Ledger
• Materials Selection
• Costing Sequence Determination
• Single Level Price Determination
• Multi-level Price Determination
• Post Closing Entries
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Month End Closing - CKMLCP
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Month End Closing - CKMLCP
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Month End Closing - CKMLCP
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Month End Closing - Profitability Analysis Revaluation With Actual Cost
• Invoices Revalued Monthly
• Standard SAP Enhancement COPA0002
• Includes Results in CO-PA Value Field
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Actual Cost Reporting Material Ledger Display
• Procurement
• Production
• Transfers
• Consumption
• Subcontracting
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For more Information
2262, Petworth Court, Unit 202 C Phone : 1 (630) 649 9235, Fax : 1 (630) 689 9455
Ram Rishi Managing Partner