sap modules integration case study co

SAP Modules Integration Case Study CO

IndexTERMS OF REFERENCE AND SCENARIO 3PREPARING THE MASTER DATA 4CREATING COST CENTERS 4Creating Cost Center for Canteen 4Creating Cost Center for Maintenance 4Creating Cost Center for Assembly 5CREATING STATISTICAL KEY FIGURE ldquoNUMBER OF EMPLOYEESrdquo 5CREATING SECONDARY COST ELEMENTS 6Creating Secondary Cost Element for Canteen Assessment 6Creating Secondary Cost Element for Activity Allocation of Maintenance Hours 6Creating Secondary Cost Element for Activity Allocation of Assembly Hours 6CREATING ACTIVITY TYPES 7Creating Activity Type for Maintenance Hours 7Creating Activity Type for Assembly Hours 7CREATING COST CENTER GROUP FOR THE CANTEEN ASSESSMENT 8COST CENTER PLANNING 9PLANNING THE NUMBER OF EMPLOYEES 9PLANNING ACTIVITY OUTPUT 9PLANNING PRIMARY COST INPUTS 10PLANNING INTERNAL ACTIVITY INPUTS 10CREATING ASSESSMENT FOR CANTEEN COSTS 11PERFORMING ASSESSMENT FOR CANTEEN COSTS 12AUTOMATIC PRICE CALCULATION OF TWO ACTIVITY TYPES 13INTEGRATION WITH THE PP MODULE 14CREATING NEW WORK CENTER FOR COST CENTER 14INTEGRATING NEW WORK CENTER IN ROUTING 15PERFORMING NEW PRODUCT COST ESTIMATE 15

Terms of Reference and ScenarioThis case study emphasizes the major master data and planning methods inCost Center Accounting During the exercises you will create three costcenter master records and model the internal activity links between themIn doing so you will use the principles direct activity allocation and

assessment In conclusion you will run an automatic price calculation for theactivity types offered by the cost centers The importance of these prices wasalready discussed in the framework of the case study involving PP masterdata their amount ndash assuming the activity types of a production cost center(for example) are involved ndash has a direct impact on product costingIn conclusion you will demonstrate the integration with the PP module bycreating a new work center with reference to one of the new cost centersYou will integrate this work center in the routing for manufacturing amotorcycle that you created in the PP case study and analyze its effects bystarting a new product costingBecause each participant is supposed to use his or her own master data andtransaction data each participantrsquos data has to have different namesAccordingly all master data objects end with You replace the with yourPC or group number Please follow these naming conventions as it willotherwise be impossible to differentiate between the different participantsrsquomaster dataBefore you start the case study you can display the transaction codes in theSAP Easy Access menu Select menu item Extras 1048774 Settingsand press ENTER or click to confirmChange your SAP GUI settings as follows Choose and then Options Goto the Expert tab Select the Show Keys in All Dropdown Lists indicator andchoose ENTER to confirm

Preparing the Master DataCreating Cost CentersA cost center represents an organizational unit within a controllingarea and specifies a uniquely definable instance where costs areincurred This definition can be based on functions settlement specificgeography or by cost responsibilityCreating Cost Center for CanteenIn the SAP Easy Access menu choose Accounting 1048774 Controlling 1048774 Cost

Center Accounting 1048774 Master Data 1048774 Cost Center 1048774 Individual Processing 1048774Create (transaction code KS01)If the system prompts you to enter the relevant controlling area enter [1000]Press ENTER to confirmEnter lsquoCC-CA-rsquo as the key for the cost center (substitute yourgroupcomputer number for ) The cost center should be valid from 0101 ofthe current fiscal year Press ENTER or click to confirmEnter lsquoCanteen rsquo as the cost center name and enter a name for the personresponsible Select cost center category Service cost center [2] and assignthe cost center to hierarchy area Internal services [H1120] In additionchoose company code IDES AG [1000] business area Corporate Other[9900] and profit center Motorcycles [1000]Click to save your cost centerCreating Cost Center for MaintenanceRepeat the above process with the following dataCost center CC-MA-Valid from 0101 of the current fiscal yearPress ENTER to confirmcopy SAP UCC Stefan Weidner May 2008 Page 5 of 16Name Maintenance Person responsible AnyCost center type [2] Service cost centerHierarchy area [H1430] Plant MaintenanceCompany code [1000] IDES AGBusiness area [9900] Corporate OtherProfit center [1000] MotorcyclesClick to saveCreating Cost Center for AssemblyPerform the transaction once again with the following valuesCost center CC-AS-Valid from 0101 of the current fiscal yearPress ENTER to confirmName Assembly Person responsible AnyCost center type [1] ProductionHierarchy area [H1420] ProductionCompany code [1000] IDES AG

Business area [1000] Mechanical engineeringProfit center [1000] MotorcyclesSave your cost centerCreating Statistical Key Figure ldquoNumber of EmployeesrdquoBecause the costs of the canteen are assessed for three cost centers(including itself) the number of employees in the cost centers is the allocationbase for cost apportionment You have to create a statistical key figure forthis purposeIn the SAP Easy Access menu starting from the Cost Center Accountingnode choose Master Data 1048774 Statistical Key Figures 1048774 Individual Processing1048774 Create (transaction code KK01)Enter lsquoEM-rsquo as the key for the key figure and press ENTER Enter the namelsquoNumber of employeesrsquo and choose Persons [PER] as the unit The key figurehas the category Fxd val Click Savecopy SAP UCC Stefan Weidner May 2008 Page 6 of 16Creating Secondary Cost ElementsInternal cost flows and activity flows are always allocated in R3 usingsecondary cost elements A cost element classifies the purposerelatedvaluated consumption of factors of production within acontrolling area In contrast to primary cost elements secondary costelements do not have any corresponding cost-relevant chart ofaccounts item (PampL account with the same number)Creating Secondary Cost Element for Canteen AssessmentIn the SAP Easy Access menu starting from the Cost Center Accountingnode choose Master Data 1048774 Cost Element 1048774 Individual Processing 1048774 CreateSecondary (transaction code KA06)Enter lsquoPLA-rsquo as the key for the cost element The cost element should bevalid from 0101 of the current fiscal year Press ENTEREnter the description lsquoPlan Ass CC-CA-rsquo and assign it cost elementcategory Assessment [42] Click SaveCreating Secondary Cost Element for Activity Allocation of Maintenance HoursRepeat the process for the allocation cost element for maintenanceCost element MAI-Valid from 0101 of the current fiscal yearName Allocation CC-MA-

Cost elem cat [43] Internal activity allocationSaveCreating Secondary Cost Element for Activity Allocation of Assembly HoursRepeat the process for the allocation cost element for assemblyCost element ASS-Valid from 0101 of the current fiscal yearName Allocation CC-AS-Cost elem cat [43] Internal activity allocationSavecopy SAP UCC Stefan Weidner May 2008 Page 7 of 16Creating Activity TypesActivity types are organizational units within the controlling area thatclassify the activities performed by a cost center As units of measurethey are used to allocate internal activities according to causeCreating Activity Type for Maintenance HoursThe first activity type is rendered by the maintenance cost center To create itstarting from the Cost Center Accounting node of the SAP Easy Accessmenu choose Master Data 1048774 Activity Type 1048774 Individual Processing 1048774 Create(transaction code KL01)Enter lsquoM-rsquo as the key for the activity type It should be valid from 0101 ofthe current fiscal year Press ENTEREnter lsquoMaintenance hours rsquo as the description The activity unit is Hour [H]the activity type should be valid for all cost center categories [] Chooseactivity type category Manual entry manual allocation [1] and assign it thecost element you just created [MAI-] as the allocation cost element Saveyour activity typeCreating Activity Type for Assembly HoursSimilarly create the activity type for the assembly cost centerActivity type A-Valid from 0101 of the current fiscal yearPress ENTERName Assembly hours Activity unit [H] HourCost center cat [] All Cost Center CateActivity type cat [1] manual entry manual allocationAlloc cost element [ASS-] Allocation CC-AS-Click to save your activity type

copy SAP UCC Stefan Weidner May 2008 Page 8 of 16Creating Cost Center Group for the Canteen AssessmentCost centers can be grouped together to form cost center groups byvarious perspectives to model the companyrsquos structure as costcenters in the SAP System You can use these groups to form costcenter hierarchies that summarize the areas for decision-makingresponsibility and control according to the companyrsquos specific needsTo assess the canteen costs you want to create a group with the costcenters CC-CA- CC-MA- and CC-AS- (as receiver of the canteencosts)From the Cost Center Accounting node of the SAP Easy Access menuchoose Master Data 1048774 Cost Center Group 1048774 Create (transaction codeKSH1)Name the group lsquoGROUP-rsquo and press ENTERName the displayed nodes lsquoCanteen cost receiversrsquo Then click(not )In the left-hand column enter the cost centers CC-CA- CC-MA- andCC-AS- in that sequence and press ENTER to confirm The names of thecost centers should then be displayed (see graphic)If you see instead it means you have misspelled oneof the cost centers Select the involved cost center click and then Enter the correct cost center and press ENTERClick Save Then return to the SAP Easy Access menuYou have now created all the master data you need for this case study Wewill continue with cost center planning and the integration with the PPmodulecopy SAP

copy SAP UCC Stefan Weidner May 2008 Page 9 of 16

Cost Center PlanningPlanning the Number of EmployeesAccording to company records 15 people work in assembly 5 work inmaintenance and 5 work in the canteenChoose Accounting 1048774 Controlling 1048774 Cost Center Accounting 1048774 Planning 1048774Statistical Key Figures 1048774 Change (transaction code KP46) The planninglayout Statistical key figures standard (1-301) appearsChoose the Planactual version [0] and periods 1 to 12 in the current fiscalyear Enter cost center CC-AS- and key figure EM- Make sure youleave all the other fields blank Click Form-Based at the bottom of the

screen Then click Overview Screen or press F5 Enter 15 as the currentplan value and saveRepeat the process for cost center CC-MA- and enter 5 as the current planvalue Save this plan as wellRepeat the process again for cost center CC-CA- Enter 5 as the currentplan value Save and choose Planning Activity OutputIn the following steps you will plan the total activities of maintenance (1800hours) and assembly (6000 hours)Choose menu item Accounting 1048774 Controlling 1048774 Cost Center Accounting 1048774Planning 1048774 Activity OutputPrices 1048774 Change (transaction code KP26) Thelayout Activity types with prices standard (1-201) appearsFill the fields Version Periods and Fiscal Year as in the previous exercise ifthey donrsquot already contain the correct default valuesEnter CC-MA- as the cost center and M- as the activity type Leave allthe other fields blank Then click Overview Screen or click F5 Enter1800 hours as the plan activity and saveRepeat the process for cost center CC-AS- and activity type A- Enter aplan activity of 6000 hours here Savecopy SAP UCC Stefan Weidner May 2008 0 of 16Planning Primary Cost InputsPrimary costs are incurred in all three cost centers each fiscal year Thesecosts are 60000 for salaries and 90000 for purchased services in thecanteen maintenance salaries in the amount of 60000 and assembly wagesin the amount of 150000Choose Accounting 1048774 Controlling 1048774 Cost Center Accounting 1048774 Planning 1048774CostsActivity Inputs 1048774 Change (transaction code KP06) The Cost elementsacty-indepacty-dependent (1-101) layout appearsFill the fields Version Periods and Fiscal Year as in the previous exercise ifthey donrsquot already contain the correct default valuesEnter CC-CA- as the cost center and Salaries [430000] as the costelement Leave all the other fields blank Click Overview Screen or F5Enter the plan fixed costs as 60000 Save

Repeat the process for cost center CC-CA- and cost element Purchasedservices [417000] Again leave all the other fields blank Click OverviewScreen or F5 Enter the plan fixed costs as 90000 and saveNow enter CC-MA- as the cost center and Salaries [430000] as the costelement Leave all the other fields blank Click Overview Screen or F5Enter the plan fixed costs as 60000 and saveNow enter cost center CC-AS- activity type A- and cost element Directlabor costs [420000] Now that you have added the activity type the primarycost input can now be planned activity specifically ndash that is with a fixed andvariable price Then click Overview Screen The Plan variable costs fieldshould now be ready for input Enter 150000 here and savePlanning Internal Activity InputsDuring the current fiscal year the assembly department plans to have theirequipment checked regularly by the companyrsquos internal maintenance teamThey estimate an effort of 600 maintenance hoursTo plan this from the Cost Center Accounting menu choose Planning 1048774CostsActivity Inputs 1048774 Change (transaction code KP06) The Cost elementsacty-indepacty-dependent (1-101) layout appears Because this screen isonly suitable for cost elements not activity types click to go to the nextlayout Activity input acty-indepacty-dep (1-102)copy SAP UCC Stefan Weidner May 2008 Page 11 of 16Fill the fields Version Periods and Fiscal Year as in the previous exercise ifthey donrsquot already contain the correct default valuesEnter CC-AS- as the cost center CC-MA- as the sender cost center andM- as the sender activity type Leave the other fields blank Go to theoverview screen and enter 600 hours as plan fixed consumption SaveTo check your planning so far from the Cost Center Accounting menuchoose Information System 1048774 Reports for Cost Center Accounting 1048774Planning Reports 1048774 Cost Centers Planning Overview (transaction codeKSBL) Then run this report for each of your three cost centers (clickExecute or press F8)You can see that your cost centers have been charged with primary costs Inaddition you can also see the total inputs and internal allocation quantities in

maintenance and assemblyCreating Assessment for Canteen CostsIn the Cost Center Accounting menu choose Planning 1048774 Allocations 1048774Assessment (transaction code KSUB) Then choose Extras 1048774 Cycle 1048774Create Chose your valid cycle lsquoC-rsquo which is valid from 0101 of the currentfiscal yearsbquo and press ENTER to confirm Enter lsquoCycle CC-CA-rsquo as textuncheck the Iterative field and click Enter lsquoSEG-rsquo as the segment name Enter PLA- as the assessment costcenter in the Segment Header tab pageEnter CC-CA- as the Sender Cost Center (from) and cost center groupGROUP- as the receiver in the SendersReceivers tab pagecopy SAP

copy SAP UCC Stefan Weidner May 2008 Page 12 of 16Choose the value Plan Stat Key Figures [6] in the ldquoVarportion typerdquo field inthe Receiver Tracing Factor tab page The message ldquoMaintain fields StatKey figrdquo indicates that new fields are displayed for maintenance Choose thePlanactual version [0] and statistical key figure EM- as the selectioncriteriaClick Save click to go back three times and confirm the subsequentconfirmation prompt with YESPerforming Assessment for Canteen CostsEnter C- in the Cycle field of the Execute Plan Assessment Initial Screenand press ENTER Uncheck the Test Run field and choose Execute (clickor press F8)The system should notify you that processing was completed without errorsThe number of senders should be 1 and the number of receivers 3 Go backto the SAP Easy Access menuExamine the results of the assessment in your three cost centers using thefamiliar report Cost Centers Planning Overview (transaction code KSBL)The maintenance and assembly cost centers should have been charged witha canteen assessment of 30000 and 90000 respectively and the canteencost center credited with 120000 30000 remain with CC-CA-You may have noticed that the activity inputs and activity allocations of cost

centers CC-AS- and CC-MA- are still valuated with zero even though allthe quantity information has been entered This is because no prices havebeen planned yet for the involved activity types We will do this nextcopy SAP

copy SAP UCC Stefan Weidner May 2008 Page 13 of 16Automatic Price Calculation of Two Activity TypesIn the Cost Center Accounting menu choose Planning 1048774 Allocations 1048774 PriceCalculation (transaction code KSPI)Choose the first radio button (Cost center group) in the Cost centers fieldgroup and enter your cost center group GROUP- Also choose NoBusiness Processes the Planactual version [0] and periods 1 to 12 in thecurrent fiscal yearUncheck the Test Run field again and press Execute If everything workedcorrectly the SAP System reports that the calculated prices have beenposted correctly (ldquoResults of iterative activity price calculation have beenpostedrdquo) Press ENTER to display the prices Write down the prices thesystem calculated for your activity typesTotal price for CC-AS- and activity type A- _______________Total price for CC-MA- and activity type M- _______________Examine the results of the price calculation in your three cost centers inreport Cost Centers Planning Overview (transaction code KSBL)Your assembly cost center report could look like the example belowAs you can see the canteen costs and assessment of the maintenance costcenter amount to 120000 Production wages in the amount of 150000 arealso incurred If the total input is 6000 hours this results in a price of 4500for an assembly hourcopy SAP


Integration with the PP ModuleThe integration between Cost Center Accounting and Production Planningand Control is the result of assigning work centers to cost centers You willimplement this below ndash based on the information you used in the PP casestudyCreating New Work Center for Cost CenterThe work center organizational unit (for example person machineryetc) defines where and by whom an operation is performed A workcenter has a specific available capacity The work performed there is

valuated using allocation rates that are determined by cost centers andactivity typesIn the SAP Easy Access menu select Logistics 1048774 Production 1048774 Master Data1048774 Work Centers 1048774 Work Center 1048774 Create (transaction code CR01)You want to create the work center in plant [1000] with the name lsquoCTR-rsquoAs usual you substitute with your groupcomputer number Choose workcenter type Labor [0003] and use work center Assembly IV [1420] in plant[1000] as a template Press ENTERIn the Copy fromhellip window choose all the selection areas aside fromCosting Then click Copy or press ENTER The Create Work Center CostCenter Assignment view appears Enter todayrsquos date as the start date Enterthe cost center you created CC-AS- as the cost center Then start theinput help (F4) in field Activity Type for Setup Only your activity type A-should be displayed Select it Then define key Prod Setup time [SAP001]as the formula keyProceed in a similar fashion for the Machine Time and Labor Time using thefollowing dataActivity type Formula keyMachine time A- [SAP002] Prod Machine timeLabor time A- [SAP003] Prod Labor timeThen click to savecopy SAP UCC Stefan Weidner May 2008 Page 15 of 16Integrating New Work Center in RoutingIn the SAP Easy Access menu select Logistics 1048774 Production 1048774 Master Data1048774 Routings 1048774 Routings 1048774 Standard Routings 1048774 Change (transaction codeCA02)Choose your routing for the material UCC-MOTORCYCLE- in plant [1000]select todayrsquos date as the key date and press ENTER Then double-click onthe description for operation 0020In the next screen first delete the default values and activity types in theSetup Machine and Labor lines Then press ENTERNow overwrite the value in the Work Center field 1420 with CTR- yournew work center Press ENTER to confirm Enter a time of 6 Minutes in the

line for the setup time and A- as the activity type Proceed accordingly withthe second line (machine time) enter a time of 60 Minutes and A- as theactivity type In the last line enter a labor time of 120 Minutes and A- asthe activity type Then press ENTER to confirmClick to return to the operation overview and then click to save changedroutingYou have now added a new work center valuated with your activity type tothe routing for assembling the motorcycle As a result the prices you justcalculated will become effective during the next product costing As youprobably noticed the new work center will be much more efficientPerforming New Product Cost EstimateIn the SAP Easy Access Menu choose path Accounting 1048774 Controlling 1048774Product Cost Controlling 1048774 Product Cost Planning 1048774 Material Costing 1048774 CostEstimate with Quantity Structure 1048774 Create (transaction code CK11N)Choose your material UCC-MOTORCYCLE- the plant [1000] Hamburgand ndash in the Costing Data tab page ndash costing variant [PPC1] costing version[1] and costing lot size [1] Press ENTER to confirmcopy SAP UCC Stefan Weidner May 2008 Page 16 of 16In the next tab page Dates press ENTER to save the default dates Thesystem will now cost the material based on the bill of materials and thechanged routingThe valuated BOM is displayed in the upper half of the screen Themanufacturing costs are estimated as 148240 When you choose Costs 1048774Itemization (or press F6) the itemization is displayed in the lower half of thescreenClick in the lower screen area and choose ldquoSelect Layoutrdquo Choosethe layout Operations (Grouped) [1SAP06]Items 6 7 and 8 in operation 0020 contain the costs of the second operationin the assembly routing with your activity type A- rendered by work centerCTR-You can see the allocation rates that have been charged for 6 minutes 1hour and 2 hours of assembly activityTo display the individual cost components choose menu path Costs 1048774Display Cost Components (or press F5) Click once again and chooseldquoSelect Layoutrdquo This time select the layout for Cost Component Groups

[1SAP02]Save your costing as an [Itemization] and a [Log] and press ENTER toconfirmYoursquore finishedSeveral of the ideas in this case study are based on materials developed by Mr Martin Voszlig (University ofPassau) and Mr Heino Schrader (SAP AG) whose work is acknowledged hereThis publication or parts thereof may only be disclosed to or reproduced by faculty members of institutionsconnected to SAP University Competence Centers for use in teaching Material may not be disclosed indigital form Any changes to the content of the case study or any changes made to the case study texts ndashminor or otherwise ndash must not distort the origin of the intellectual property as input in person by StefanWeidner (SAP UCC Magdeburg) Should you have any queries please contact the authorSAP the SAP logo the R3 System and any other SAP products and services mentioned in this textincluding the relevant logos are trademarks or registered trademarks of SAP AG in Germany andinternationally All other names of products and services are trademarks of the companies in question

assessment In conclusion you will run an automatic price calculation for theactivity types offered by the cost centers The importance of these prices wasalready discussed in the framework of the case study involving PP masterdata their amount ndash assuming the activity types of a production cost center(for example) are involved ndash has a direct impact on product costingIn conclusion you will demonstrate the integration with the PP module bycreating a new work center with reference to one of the new cost centersYou will integrate this work center in the routing for manufacturing amotorcycle that you created in the PP case study and analyze its effects bystarting a new product costingBecause each participant is supposed to use his or her own master data andtransaction data each participantrsquos data has to have different namesAccordingly all master data objects end with You replace the with yourPC or group number Please follow these naming conventions as it willotherwise be impossible to differentiate between the different participantsrsquomaster dataBefore you start the case study you can display the transaction codes in theSAP Easy Access menu Select menu item Extras 1048774 Settingsand press ENTER or click to confirmChange your SAP GUI settings as follows Choose and then Options Goto the Expert tab Select the Show Keys in All Dropdown Lists indicator andchoose ENTER to confirm

Preparing the Master DataCreating Cost CentersA cost center represents an organizational unit within a controllingarea and specifies a uniquely definable instance where costs areincurred This definition can be based on functions settlement specificgeography or by cost responsibilityCreating Cost Center for CanteenIn the SAP Easy Access menu choose Accounting 1048774 Controlling 1048774 Cost







screen Then click Overview Screen or press F5 Enter 15 as the currentplan value and saveRepeat the process for cost center CC-MA- and enter 5 as the current planvalue Save this plan as wellRepeat the process again for cost center CC-CA- Enter 5 as the currentplan value Save and choose Planning Activity OutputIn the following steps you will plan the total activities of maintenance (1800hours) and assembly (6000 hours)Choose menu item Accounting 1048774 Controlling 1048774 Cost Center Accounting 1048774Planning 1048774 Activity OutputPrices 1048774 Change (transaction code KP26) Thelayout Activity types with prices standard (1-201) appearsFill the fields Version Periods and Fiscal Year as in the previous exercise ifthey donrsquot already contain the correct default valuesEnter CC-MA- as the cost center and M- as the activity type Leave allthe other fields blank Then click Overview Screen or click F5 Enter1800 hours as the plan activity and saveRepeat the process for cost center CC-AS- and activity type A- Enter aplan activity of 6000 hours here Savecopy SAP UCC Stefan Weidner May 2008 Page 10 of 16Planning Primary Cost InputsPrimary costs are incurred in all three cost centers each fiscal year Thesecosts are 60000 for salaries and 90000 for purchased services in thecanteen maintenance salaries in the amount of 60000 and assembly wagesin the amount of 150000Choose Accounting 1048774 Controlling 1048774 Cost Center Accounting 1048774 Planning 1048774CostsActivity Inputs 1048774 Change (transaction code KP06) The Cost elementsacty-indepacty-dependent (1-101) layout appearsFill the fields Version Periods and Fiscal Year as in the previous exercise ifthey donrsquot already contain the correct default valuesEnter CC-CA- as the cost center and Salaries [430000] as the costelement Leave all the other fields blank Click Overview Screen or F5Enter the plan fixed costs as 60000 Save











sap modules integration case study co

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