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SAP Co note

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    SAP Co note SAP Co note Document Transcript

    • SAP CO NOTES INDEXPARTICULARS Page No.CO Areas and Basic Settings for Controlling 3Cost Center Accounting 11Online Reconciliation Leger 23 1. Creation of GL Masters 25 2. CO Customization 27 3. FI Customization 28Cross Company Code Postings 31Maintain Overhead structure 34Statically Key Figures (SKF) 38Assessment 42Internal Orders 46Budgeting and Availability Control 60Profit Center Accounting 64Integration 76 1. Transaction Key /Process Key 77 2. Valuation Class 78 3. Assignment of accounts 89 4. MM Customization 90 5. FI Consultant job in MM 97 6. Assignment of Accounts for Automatic Postings(MM 100 to FI) 7. FI Consultant job in SD 115 8. SD Steps 9.Co-Profitability Analysis (CO-PA) 120 1. Data flow in CO-PA 120 2. Customization 122 3. SD End user area 126Report Painter 129Product Costing 132 1. Co Consultant Job (Activity based costing) 134 2. PP Consultant job 144 3. CO End User area 146 4. MM End User area 147 5. PP End user area 149Actual Costing 153 1. CO Consultant job 153 2. PP consultant area 167 3. Asset Accounting area 174New General Ledgers (ECC 6 New Features ) 179 1
    • 1. Customization 180 2. Document Splitting 188Central Excise and Sales Tax 192 1. Central Excise Customization (Purchase) 195 2. Central Excise customization (Sales) 211 3. SD End user area 217Financial Statement Version 228Asset Accounting Area 237Project Report 238 CONTROLLING (CO)This is used for internal reporting in Co organizational Hierarchy – Highest node iscontrolling area. In FI Highest node is company , Company codeCO 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 Elements2. 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 order4. Profit center accounting : This is used to view profitability product wise / Division wise / Location wise if business area is not used in FI5 Product Costing :This is used for valuation if inventories 2
    • 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 (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. 3
    • 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 – Maintaincontrolling 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 buttonControlling area :BILName :controlling area forBILCompany code to controlling area : Select controlling area same as company codeCurrency type : select 10 company code currency.Once we select 10 company code currency , currency field, Chart of Accounts filed andFiscal year variant filed will be updated automatically.Cost Center standard hierarchy : BILHIERSaveSelect yes button for the message system to create as a standard hierarchySelect create request buttonShort description : Co customization for BILPress enterPress 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 4
    • At the time of cost center creation – It will ask under which hierarchy we are creating thecost centers.In the report – when we give cost center Dept.A – It gives only Dept.A date. When wegive 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 folderSelect new entries buttonGive the company code : BILSelect save button or Ctrl+SPress enter to save in your requestDouble click on a activate components / control indicators folderSelect new entries buttonFiscal year :2007Cost center : Select component activeSelect active type check boxOrder management select component active.Select profit center accounting check boxSaveIgnore the warning message press enterMAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS: 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 | 5
    • | 1-100000 1-00000Manual 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 2Posting in FI Posting in COWages 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 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 DocumentsWages A/c Dr 600000 Dept Common Dept A 300000 Dept Common Dept B 200000 Dept Common Dept C 300000Rent A/c Dr 50000 Dept A 6
    • To bank 650000 Repot CO line itemTransfer line item wiseTransfer document wise / Line item wiseReport costs ( Business transactions – RKU1)This is used when we split the cost center into number of cost centers or transfer forwrong cost center postings.No FI document will be generatedCO document only will be generatedTransfer cost element wise (GL Account wise) 01/07/2007 split into Dept A and Dept XDept A Dept X30/04/2008 400100 Salaries 20000030/05/2008 400100 Salaries 25000030/06/2008 400100 Salaries 275000 ---------- 400100 total 725000 400100 Salaries 20000030/04/2008 400101 wages 10000003/05/2008 400101 wages 15000030/06/2008 400101 wages 125000 ---------- Total 400101 375000 400101 wages 12500030/04/2008 400300 Rent 50000031/05/2008 400300 Rent 5000030/06/2008 400300 Rent 50000 -------- 400300 Total 150000 400300 Rent 40000Planning primary costs ( Business transaction RKP1)Planning cost center wise or no. range interval for all the types , budgeting cost centerwise for each cost element.Path: SPRO- Controlling – General controlling – Organization- Maintain numberranges for controlling document (T.Code is KANK) Controlling area : BIL 7
    • 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 AccountantMAINTAIN VERSIONS: Version are nothing but budgets Original budgets Version 0 Revised budget version 1 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. 8
    • Select save button or Ctrl+S Press enter to save in your request Select bank arrow Planning is made attend user area after planning’s 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 elements1. Primary cost element 2 Secondary cost elementsA)Primary cost elements are our general A)Secondary cost elements are other thanledger accounts general ledger accountsB) Posting to primary cost elements are B) Postings to secondary cost elements arepossiable 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 CATEGORIESPRIMARY 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 CO11. Revenues: This is used for income accounts12. Sales Deduction: This is used for expenditure accounts like sales commission Trade discount where CO-Profitability analysis module is activated22. External settlement( Settlement from CO – FI): This is used for allocation of internal order settlement to GL Accounts / Assets. 9
    • 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 ACCOUNTINGThis is used to view department wise costs we use cost center accounting. 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 10
    • 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)path : SPRO-Controlling-Cost element accounting-Master data – Cost elements –Automatic creation primary and secondary cost elements-Make defaultsettings.(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 11
    • Select display errors only radio buttonSelect process buttonWe get a message processing of batch input session completed.Ignore the message & select exit batch input buttonDisplay primary cost elements created (KA03)Path: Accounting-Controlling-Cost element accounting-Mater data-Costelement –Individual processing – Display- (Tr code is KA03)Select drop down button beside cost elementGive the Controlling area : BILEnterCreation of field status group by making cost center required entry field:(Tr.Code is OBC4)Select field status variant: BILDouble click on filed status groups folder100000 equity share capital G001 We can’t make cost center required for balance sheet accounts400100 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 accountsDouble click on General dataText make it required entry fieldSelect next group buttonCost center select required entry filedSelect next page or page down button two times.Business area make it option entry filedSavePress enter to save in your request 12
    • Assign group new field group in GL expenditure accounts (FS00)Give the GL account 400100 salaries accountCompany code :BILFrom the menu select GL account change select create / Bank / Interest tabFiled status group change to G004SaveGive the GL Account No.400300 Rent A/cCompany code :BILFrom the menu select GL account changeChange field status group to G004SaveCreation of cost centers:Path: Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual processing-create (Tr.code is KS01)Cost center : Dept AValid from :01.04.2008 to 31.12.9999EnterGive the name : Dept AGive the description : Dept APerson responsible :Mr.ACost center category : Select 1 productionHierarchy area : select BILHIERBusiness area :BILHCurrency :INRSelect save button or Ctrl+SIgnore the warning message press enterOne more cost center : Dept BValid from :01.04.2008 to 31.12.9999Reference cost center : Dept A 13
    • 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 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 – BILHIERIf we want to see production cost centers data – Create a cost center group and assignDept 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, Deptb and Dept CIf we want so settled production cost centers data – create A cost center group and assignDept A and Dept B 14
    • Path : Accounting – Controlling – Cost center accounting – Master data- Cost centergroup – Create (Tr.code is KSH1)Give the cost center name : BILHYD PRODEnterDescription Hyderabad production cost centers BILSelect Edit Cost Center Insert cost center buttonSelect the cost centers Dept A Dept BSaveCreation of cost Element group:FI : Account groups Personnel cost CO:Dept wise personal cost or Administration400100 salaries Create cost element group personnel and assign 400100 -400199400101 Wages400102 Bonus400103 Staff welfare and Administration Create cost element group administration and assign 400300-400399400300 Rent400301 Telephone exp400302 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 elementgroup –Create (Transaction code: KAH1)Cost element group name : BILADMINEnterDescription : Administration expenses for BILSelect insert cost element button (Shift+F4) (Edit –Cost element –Insert cost element)From 400300 to 400399 15
    • SaveTo enter exchange rate for type M for INR to EURO (Tr.Code is OB08)Select new entries buttonExchange rate type : M (Average rate)Valid from :01.10.2008From currency : INRTo : EURDirect quotation :0.02Select save button or Ctrl+SPress enter to save in your requestPosting of transaction in FI Transaction code:F-02Give the document date : Today’s dateType :SACompany code :BILPosting key :40Account :400100 salaries accountEnterGive the amount :500000Cost center : Dept AText :Salaries postingOne more expenditurePost key :40Account :400300 Rent accountEnterAmount :100000Cost center : Dept AText : Rent postingPosting key : 50Account :200105 SBI current accountEnterAmount :*Business area :BILHText : Expenditure postingFrom the menu select Document SimulateSelect save button or Ctrl+S 16
    • To view cost center wise report:Path: Accounting –Controlling-cost center accounting –Information system-Report forcost center accounting-Line items –Cost centers: Actual line items (Transaction:KSB1)Cost center select Dept A (if you want change the posting dates)Select execute buttonKeep the cursor and the first line itemSelect document buttonSelect back arrowSelect change layout button (Ctrl+F8)Select Document no.under column setSelect value in reporting currency under displayed columnsSelect left arrow or show selected filed buttonSelect reference document no.under column setSelect value in report current under displayed columnsSelect left arrowSelect business transition under column setSelect document no. under displayed columnsSelect left arrowEnterTo view co documents:Path :Up to reports for costs center accounting path is same -Line items – Codocuments :Actual costs (transaction code is KSB5)Document no. :1 to 100000ExecuteSelect folder button for document no.1Report co line items:Business transaction RKU3FI doc.13001 400100 Salaries 500000 Dept A 150000 Dept B 50000 Dept C 17
    • Report co line item002 400300 Rent 100000 Dept A003 200105 SBI 600000Report co line itemTransfer document wise /line item wise , transfer line item wiseNo FI document will be generatedOnly document will be generatedPath: Accounting – Controlling-Cost center accounting –Actual postings-Report lineitems-Enter (Transaction code is KB61)Select document no. :13Company code :BILFiscal year :2008ExecuteDouble click on line item no.1Amount under new account assignment 150000Cost center :Dept BSelect new item buttonSelect next buttonAmount under new account assignment 50000Cost center : Dept CSaveGo and see the cost center report KSB1Give the cost center Dept ASelect execute buttonTo view cost element wise to totalSelect cost element columnSelect 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 centerpostings.No FI document will be generatedOnly CO document will be generatedTransfer cost element wise (GL account wise) 18
    • Path : Accounting-Controlling-cost center accounting –Actual postings-manualreporting of costs – Enter (Transaction code is KB11N)Cost center (old) : Dept ACost element 400100 SalariesAmount :100000Cost center new : Dept COne more cost center (old) : Dept ACost element :400300 RentAmount :25000Cost center (new) : Dept CEnterSelect save button or Ctr+SPeriod lock: FI COA) Transaction which effect To open To openFI and CO eg:COINB) Transaction which effect No check To openonly CO Eg.RKU3, RKU1C) Transaction which effect To open No checkonly FI Eg.Debit balancesheet and credit balancesheet Sept .08 March Oct 2008 to March 2009An expenditure posting in FI for September. We can’t post since periods are not open.Path: Accounting – Controlling-cost center accounting-Environment –Period lock-chang (Tr.code is OKP1)Controlling area : BILFiscal year :2008Select actual buttonSelect period :01Select lock period buttonSave 19
    • Set controlling area :(OKKS):Path :up to Environment the path is same Set controlling areaGive the controlling area :BILEnterReal time integration of controlling with FI on line reconciliation ledgerThis is used when we get for 2nd scenario (no.of company codes having one controllingarea ) all the company codes should use same Char of Accounts.Planning cost center wisePath :Accounting –Controlling cost center accounting –Planning –Cost and Activityinputs –Change (KP06)Version :select 0 (Original budget)From period :1To period :12Fiscal year :2008Select next page or page down buttonCost center group :BILHIERCost element From :400000Cost element To :499999Free Form BsedIf we select radio button If we select from based radio buttonWe have to select cost element from the The cost element list in a available ondrop down list and plan against the screen plant against cost elementsClimentsSelect form based radio buttonSelect overview screen buttonFor cost element 400100 Plan Fixed cost 1500000Distribution key 1 Equal distributionSelect cost element 400100From the menu select Goto –Period screenSelect back arrowFro cost element 400300 Plan fixed cost 960000 20
    • Distribution key 1To plan for Dept B –Select next combination buttonTo go back to previous dept –select previous combination buttonSaveTo view variance report cost center wisePath :Accounting – Controlling-Cost center accounting –Information system –Reportsfor cost center accounting –Plan /Actual comparisons –Cost centers: Actual/Plan/Variance (Tr code is S_ALR_87013611)Controlling area :BILFiscal year :2008From period :10To period :10Plan version :0Cost center Value :Dept AExecuteKeep the cursor on Salaries A/c actual costs amountSelect call up report buttonDouble click on cost centers : Actual line items keep the cursor on the first line item.Select document button 21
    • ONLINE RECONCILIATION LEDGER Reconciliation used when when number of company codes having one controlling area – 2nd Scenario It can be at controlling area 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 ZIf salaries paid and posted FI at (F-02) Salaries A/c----------------------------------100000 | |Out of 100000 salaries 20000 belongs to company code BILIf we use the reconciliation account at cost center level and the 20000/- is transfer tocompany code BSL (Dept X) it passes the entry in financial automaticallyHere Reports at – No FI recordsIn BIL BooksBSL Dr 20000 To Salaries a/c 20000In BSL booksSalaries account Dr 20000 22
    • To BIL a/c 20000Customization at Finance:To copy company code BIL customization including accounting to BSLPath :SPRO-Enterprise structure – Definition –Financial accounting –Edit, copy,Delete, Check company code(T.Code EC01)Double click on copy, delete, check company codeFrom the menu select organization object – copy organization objectFrom Company code :BILTo company code : BSLEnterSelect Yes for the message (for copy the GL accounts)Select No button allocate a different local currencyIgnore the message press enterSelect create request buttonShort description :Customization for Birla Steel LimitedPress enterEnter once again to saving the requestGo on press enter till you got the message company code BIL copied to BSL with out 75number range objectIgnore the message press enterSelect back arrowDouble click on edit company code dataSelect position buttonGive the company code :BSLEnterSelect company code : BSLSelect address buttonchange the company name to : Birla Steel limitedEntersave and Save in your request button 23
    • Assign company code to companyPath :SPRO-Enterprise structure-Assignment –Financial accounting-Assigncompany code to companySelect position buttonGive the company code : BILEnterFor the company code :BSL assign BIL(group name)Select save button or Ctrl+SPress enter to save in your requestDocument type SA should allow inter company postings: (OBA7)Select type : SASelect details buttonSelect inter company postings check boxSavePress enter to save in your requestCreation of GL Masters FS00BIL Books BSL Books1) FI/CO reconciliation account under only 1)FI/CO reconciliation account under anyexpediter group which should not be a cost expenditure group which should not be aelement 400150 –Personnel group cost element 400150 personnel group2) Birla Steels limited, current assets, 2)Birla Industries Limtied current Assets,Loans & Advances 200160 Birla Steel Loans & Advances 200161 – BirlaLimited Industries LimitedSame chart of accountsBIL chart of accounts BILBSL chat of accounts BILWhen we use same chart of accounts, account description should be same in all thecompany codes.In BSL books – If we create account No.200160 – It takes Birla Steels Limited- we cannot crate our account in our books.Creation of GL masters FS00Give the GL account no. :400150 24
    • Company code :BILSelect with template buttonGive the GL account o. :400100 SalariesCompany code : BILEnterChange short text & GL account long text to FI/CO reconciliation accountSelect create / bank /interest tabField status group change to ‘ICCF’ CO < -> FI reconciliation postingSaveGive the GL Account No.200160Company code : BILSelect with template buttonGive the GL Account No.200100 Cash A/cCompany code :BILEnterSelect type/Description /tabChange short text GL account long text to BIRLA STEEL LIMITEDSelect create / Bank/Interest tabFiled status group change to G067Deselect relevant to cash flow check boxSaveGive the GL account No.400150Company code :BSLSelect with template buttonGive the GL account 400150Company code :BILEnter & SaveGive the GL account 200161Company code :BSLSelect with template buttonGive the GL account 200160 25
    • Company BILEnterSelect type / Description tabChange short text +GL long text to Bila Industries limitedSavePrepare cross company code Transaction (Transaction code is OBYA)Path :SPRO-Financial accounting-GL accounting –Business transactions-Preparecross company code transactionsCompany code 1 BILCompany code2 BSLEnterPosted in BILcleared against BSLDebit posting key :40Account debit :200160 ( Birla Steel Limited)Credit posting key :50Account credit :200160Posted in BSLCleared against BILDebit posting key :40Account debit :200161 Bilra Industries LimitedCredit posting key :50Account credit :200161SavePress enter to save in your requestCO customization ( tr code is OKKP)Maintain controlling areaAssign company BSL to controlling area BILSelect controlling area :BILSelect details buttonCompany code to controlling area: Select cross company code cost accountingReconciliation ledger document type :SA (GL accounts document)Double click on activate components / control indicators folderSelect company code validation check boxDouble click on assignment of company codes folder 26
    • Select company code :BILSelect copy as buttonChange the company code to BSLEnter & saveIgnore the warning message press enterActivate reconciliation ledger (Tr code KALA)Note: Follow through pathPath:SPRO –Controlling –Cost element accounting-Reconciliation ledger-Activatedeactivate reconciliation ledgerDouble click on activate reconciliation ledgerControlling area :BILSelect Execute buttonIgnore the warning message press enterDefine adjustment accounts for reconciliation posting (Tr code is OK17)Same pathDouble click on define accounts for automatic postingsSelect change account determination buttonSaveReconciliation account: Give the account no.400150 FI/COSavePress enter to save in your requestFI CUSTOMIZATIONDefine 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 variantsfor real time integrationSelect new entries buttonVariant for real time integration B1Select real time integration active check box 27
    • Select account determination active check boxKey date active from :01.04.2008Document type :SALedger group (FI) :0LText variant for :BILSelect cross company code check boxSelect cross business area check boxSelect cross profit center check boxSavePress enter to save in your requestAssign variants for real time integration to company code:Same path.Select new entries buttonCompany code :BILVariant :B1Company code :BSLVariant :B1SavePress enter to save in your requestCreation of cost center for company code BIL (KS01)Give the cost center department XValid from :01.04.2008To date :31.12.9999Reference cost center :Dept AControlling area :BILEnterChange the name to :Dept XChange the description to cost center dept XChange company code to BSL 28
    • Select save button or Ctrl+sIgnore the warning message press enterRepost costs (F-02)Cost center old :Dept ACost element :400100 SalariesAmount :20000Cost center new Dept XSaveTo make text filed optional for field status group G004 cost accounts(Tr.code isOBC4)Select field status variant for BILDouble click on field status groups folderDouble click field status G004Double click on General dataText make it optional entry fieldPress enter to save in our requestGo and see the FI documents (Tr.code is FB03)Select document list buttonGive the company code :BILEnter the date :From date To DateExecuteDouble click on document no.Select back arrowChang the company code to BSLExecuteDouble click on document no. 29
    • CROSS COMPANY CODE POSTINGSCompany code :BIL BSLOutstanding expenses of BSL paid by BILBSL Dr 25000 Outstanding 25000 To Bank 25000 To BIL 25000Paying company code : BILCredit Bank :BIL 25000Debit outstanding exp :BSL 25000Use the Transaction code :F-02Give the document date :Today’s dateType :SACompany code :BILPosting key :50Account no. :200105 SBI CAEnterAmount :25000Business area :BILHText :outstanding expense payment on behalf of BSLPosting key :40Account no :100500 out standing exp.New company code :BSLEnterAmount :*Business area :BILHText :+From the menu select document SimulateDouble click third line itemBusiness area :BILHText :+Select next item buttonBusiness area :BILHText :+ 30
    • Select save button or Ctr+SPosting byCompany code :BILCross company code no. :15 08FI posted byCompany code :BSLCross company code no. :2 08By viewing the cross company code document number – We know which company codehas initiated the posting.Select continue button Accrual orders (Imputed cost calculation)This is used for month end provision only in COThis is used for irregular expenses like BonusCost element category should be 3Accrual/ Deferral per surchargeDefine CO.No.range in interval for businessTransaction :KAZ1 – Actual cost center accrualFI 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 31
    • 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 1000In 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 DummyDept dummy values in the year end31.03.2009 Dept dummy 1200000 April to March 10000*12 = 120000 ====== =====In the year end Dept dummy values will be zero.Creation of GL master bonus account – personnel cost (FS00) group:- 32
    • Give the GL Account No. :400105Company code :BILSelect with template buttonGive the GL account no. :400100 (salaries)Company code :BILEnterChange short and GL account long text to Bonus accountSaveSelect edit cost element button (F8)Valid from date :01.04.2008 to 31.12.9999EnterCost element category :Select 3 accrual deferral per surchargesaveCreation of cost center – Dept dummy (KS01)Give the cost center : Dept dummyReference cost center : Dept AControlling area :BILEnterChange name to Dept dummyChange description to cost center: Department dummySelect save buttonIgnore the warning message press enterMaintain overhead structure:Path:SPRO-Controlling –Cost element accounting-Accrual calculation –percentagemethod-maintain overhead structure (Transaction code is KSAZ)Select create over head structure button (F7)Over head structure :BIL1Description :BIL overhead structureSelect save buttonRow Base 10 B1EnterGive the name salariesSelect create buttonRow O/H rate (Over head rate) Description FR To CR20 B2 Bonus 10 10 B3 33
    • EnterGive the name BonusDependency :KRS1(controlling area)Select create buttonSaveIgnore the message press enterKeep the cursor on overhead structure BIL1Select assignment button (F5)Controlling area :BILSelect actual accrual radio buttonSelect continue buttonValid from valid to overhead structure1 2008 12 2008 BIL1SaveDouble click on overhead structure BIL1Keep the cursor on B1From the menu select Goto calculation baseFrom cost element 400100SaveKept the cursor on B2From the menu select Goto overhead rateValid from Valid to Actual overhead1 2008 12 2008 10%SaveFrom 10 To 10 Crdit B3Keep the cursor on B3From the menu select go to creditCompany code :BILBusiness area :BILHValid to :12 2008Cost element :400105Cost center :Dept DummySave 34
    • Define CO.no range interval for the business transaction KAZ1-Actual cost Centeraccrual:(Transaction Code KANK)Give the controlling area :BILSelect maintain group buttonDouble click on KAZ1- Actual cost center accrualSelect CO.No range interval for BIL check boxFrom the menu select Edit-Assigned element groupSaveIgnore 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 Text :+ From the menu select document Simulate and save Accrual calculation (KSA3) 35
    • Accounting – Controlling –Cost element accounting-Actual postings –Accrualcalculationselect cost center radio buttongive the cost center : Dept Aperiod :5fiscal year :2008deselect test run check boxselect details list check boxExecuteSelect next list level buttonGo and see the cost center report KSB1Give the cost center :Dept APosting date :01.08.2008 to 31.08.2008ExecuteSelect back arrowGive the cost center : Dept dummyExecuteBonus provision in the year end in FI Transaction F-02Give the document date & Posting :31.03.2009Type :SACompany code :BILPosting key :40Account no. :400105 bonus accountEnterIgnore the warning message press enterAmount :10000Cost center :Dept dummyText :Bonus provision for the year 2008-09Posting key :50Account :100500 outstanding exp.EnterAmount :*Business area :BILHText :+Document – Simulate and saveGo and see the cost center report KSB1Give the cost center :Dept dummyPosting date :01.04.2008 to 31.03.2009 36
    • 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 TotalFixed TotalIf we choose fixed, values If we choose totalTo SKF are common for all months in the We have to enter values for SKF, for eachyear, if we don’t make changes in between and every monthEg: Employee / Area 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 Sep | | Sep Oct | 150 Oct Dec | | Dec Jan.’09 | | Jan 2009 Feb | | Feb March | | March 37
    • Define co.no range interval for the business transaction RKS-Enter Statistical keyfigures Transaction Code is (KANK )Give the controlling area : BILSelect maintain groups buttonDouble click on RKSSelect Co.No.range interval for BIL check boxFrom the menu select Edit Assignment element group.SaveIgnore the warning message press enter.Create Statistical key figuresPath :Accounting – Controlling –cost center accounting master Data-Statistical keyfigures – Individual processing – Create (Tr.Code is KK01)Give the statistical key figure :EMPEnterGive the Name :EmployeeStatistical key figure unit of measurement : Select EA eachKey figure category :Select fixed values under radio buttonSavePath : Accounting –Controlling – Cost Center accounting –actual postings-statisticalkey figures-Enter (Tr.code is KB31N)Received cost center : Dept AStatistical KF : EMPTotal quantity :500Received cost center : Dept BStatistical KF :EMPTotal quantity :250SavePeriod end closingIn the month end, we allocate costs from one cost center to other cost centers 38
    • Dept C Dept A Dept B(Service department) (Production departments)Salaries 500000 no.of employee of A and BWages 300000 No.of employee of A and BRent 50000 Percentage basisBasis 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 BWages 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 ===== ======= =======AllocationPrimary cost postingsSecondary cost postings B) Receiving cost centers can’t 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. 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. 39
    • 4. Indirect activity allocation. A)Transfer only primary cost postings. B) Receiving cost center 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 tocreate 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 BWages 300000 No.of employees of A and BRent 50000 Percentage basisOption 1: Cycle 1 Cycle 2 (Salaries and wages allocation) (Rent allocations) | | Segment 1 Segment 1Option 2 Cycle 1 | ---------------------------------------------- | | Segment1 Segment2 (Salaries and wages allocation) (Rent allocation) 40
    • ASSESSEMENT1. 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 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 settings–Define assessment (Tr.code S_ALR_87005742) 41
    • Give the cycle :BIL1Start date :01.04.2008EnterText : Assessment cycleSelect iterative check box.Select save button or Ctrl+SPress enter to save in your requestSelect iterative check boxDept C Dept A 60% 300000 54000Salaries 500000 Dept B 30% 150000 27000Less :Allocation 500000 Dept Z 10% 50000 9000 -------- 0Add: Allocation 90000Less :Allocation 90000 ------- 0Add: Allocation 1800Dept ZWages 400000 Dept X 50% 225000 4500Add: Allocation 50000 Dept Y 30% 135000 2700 -------- 450000 Dept C 20% 90000 1800Less : Allocation 450000 ------- 0 ====We have to run number of items to make both cost center values zero. If we selectinteractive check box, system will run number of items automatically till both cost centervalues become zero.Select attaché segment button.Segment name : Segment 1Description : Salaries allocationAssessment cost element :select 1000000Sender rule :select posted amountsShare in % :100Select actual value origin radio buttonReceiver rule :Select variable portionsVariable portion type :Select actual statistical key figures 42
    • Select sender / receivers tabSender cost center :Dept CUnder Cost element :400100 (Salaries a/c)Under Receiver cost center group :BILHYDPRODSelect receiver tracing factor tabStatistical key figure :EMPSelect receiver weight factors tabSelect save button or Crl+SPress enter to save in your requestSelect attaché segment buttonSegment name segment2Description :Rent allocationAssessment cost element :1000000Sender rules :Posted amountSharing in % :100%Select actual value origin radio buttonSelect receive rule :Fixed percentagesSelect senders/ receivers tabsender cost center :Dept CCost element :400300 (Rent )Receiver cost center group : BILHYDPRODSelect receiver tracing factor tabDept A 70Dept B 30SavePress enter to save in your requestGo and see the cost center Report (Tr code is KSB1)Give the cost center :Dept CPosting date :01.10.2008 to 31.10.2008ExecuteSelect cost element columnSelect sub totals button 43
    • Dept C A BSalaries 1500000 No.of employees 500 250 100000 50000Rent 25000 Percentage basis 70 30 17500 7500Execution of assessment cycle:Path :Accounting –Controlling –Cost center accounting –Period end closing-Singlefunctions-Allocations –Assessment (KSU5)Give the period :7 (October)Fiscal year :2008Deselect text run check boxSelect details list check boxCycle select :BIL1ExecuteSelect receiver button 44
    • INTERNAL ORDERSThis is used to view costs for a specific task.Eg. A) Vehicle wise running expensesManagement has to task decision whether to sell the (or) keep the vehicle in companyA) petrol expenses for the vehicle B) Repairs to the vehicleIt we take GL accounts in FI –we will not create each vehicle wise petrol expenses andrepairs account.In cost center accounting –vehicles will be under administration cost center and the petrolexpenses 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. 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 don’t 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 45
    • We dont know the exhibition costs by creating an order we can get exhibition costsOrders will be of 2 types1)Real orders 2)Statistical ordersSettlement is possible settlement not possibleWe 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 The cost will be allocation to production orders from COIn the production order valuation we can’t take.(50000+50000)We have to take only one time 50000When 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 don’t 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 ATelephone expenses 50000 Allocation to paid order 50000 46
    • Cost center Dept A – ZeroIn the month end we allocation costs from Dept A to production orders there by costcenter Dept A will be zero.Order telephone no.66611983Telephone expenses 50000Management can see telephone wise expense at any point of time afterwards.Suppose we create order as real orderTelephone expenses Dr 50000 Cost center Dept A To Bank 50000 order telephone no.66611983 RealCost center c dataTelephone Expenses 50000 Order Telephone no.6661987Telephone expenses 50000 Allocation to production 50000Order will be zeroIn the month end we allocate cost from order telephone no.66611983 to production orderthere by order will be zero.Afterwards management can’t see telephone wise expense.Creation of order types:Path : SPR O –Controlling –Internal orders – order master data-Define order types(KOT2_OPA)Select new entries buttonOrder category :Select 01 Internal order (Controlling)EnterOrder type :BILTDescription :Telephone orders for BILPlanning profile :select 000001 (General budget /plant profile)Object class :Select Over head costSelect release immediately check boxSaveWe get message no.range not processedIgnore the message press enterSelect assign /change interval button beside no.reage interval 47
    • Double click order type :BILTSelect motor pool A-ZZZZZZZZZZZZ(External)From the menu select Edit Assign element groupSaveIgnore the message press enterCreation of filed status group by making cost center and internal order requiredentry fields (OBC4)Select field status variant :BILDouble click on field status group folderSelect field status group G004 cost accountsSelect copy as buttonChange the filed status group to G002Change the text to cost accounts (CC & IO required) IO =Internal orderEnterSave CC=Cost CenterPress enter to save in your requestDouble click on G002Double click on additional account assignmentCO /PP order make it required entry field.SaveCreation of GL master telephone expense (FS00)Give the GL account no.400305Company code :BILSelect with template buttonGL account 400300 Rent accountCompany code :BILEnterChange short text and GL a/c long text to Telephone expensesSelect crate / Bank/Interest tab 48
    • Change the filed status group to G002SaveSelect edit cost element buttonValid from date :01.04.2008EnterCost element category :Select 1SaveCreation of Internal orders:Path :Accounting –Controlling-Internal orders-Master data-Special functions –Order–Create (Tr code is KO01)Order type :Select BILTEnterOrder no. :BIL 66611983 (Telephone no.)Description :Telephone order no.66611983Company code :BILBusiness area :BILHSelect control data tabSelect statistical order check boxSaveOne more orderOrder type :BILTEnterOrder :BIL66611984Description :Telephone order no.66611984Company code :BILBusiness area :BILHSelect control data tabSelect statistical order check boxSave 49
    • Creation order groupUp to master data the path is same Order group Create (Tr code is KOH1)Give the order group name :BILHYDTELEnterDescription :Hyderabad order group (GRP)for BILSelect insert order button(Select menu bar Edit Order Insert Order)Select to orders :BIL66611983 :66611984SavePosting of transaction in FI (F-02)Document date :Today’s dateType :SACompany code :BILPosting key :40Account no. :400305 Telephone expEnterGive the amount :100000Cost center :Dept AOrder :BIL66611983Text :Telephone expensesPosting key :50Account no. :200105 (SBI current account )EnterAmount :*Business area :BILHText :+From the menu select –Document –Simulate and saveTo view internal order wise reportPath :Accounting –Controlling-Internal order-Information system-Reports for Intervalorders -Line items –Order -Actual line items-(Tr. Code is KOBIGive the order no.BIL66611983Remove the order group 50
    • ExecuteKeep the cursor and telephone expense line item select document buttonPlanning order wisePath :Accounting –Controlling –Internal orders –Planning –Cost and activity inputs –Change (KPF6)Version :0From period :8 (November)To period :8Fiscal year :2008Select next page or page down buttonGive the order no. :BIL66611983Cost element :400305 Telephone expenseSelect from based radio buttonSelect view screen buttonCost element :400305Total plan cost :75000Select save button or Ctrl+STo view variant report order wisePath :Accounting Controlling-Internal order –Information system-Reports for internalorder-Plant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993)Controlling area :BILFiscal year :2008From period :8 (Current month)To period :8Pant version :0Order values :BIL66611983ExecuteReal orders:They are used for vehiclewise expensesPetrol expenses Dr 50000 Order no.AP9Z1234 51
    • To Bank 50000In the month end: Cost center Dept AOrder no.AP9Z1234 Settle to Cost center Dept B Cost center Dept CSettlement can be percentage basis / ratio basis /Amount basis Order No AP9A1234Petrol expenses 50000 Allocation Dept A 25000 Dept B 15000 Dept C 10000 ------- ------ 50000 50000 ==== ====Order will be zeroPetrol expense Dr 50000 Cost center:Common Order No.AP9Z1234 Statistical To Bank 50000In the month end from cost center common allocate to Dept A, Dept B and Dept C byassessment / Distribution / Periodic posting /Direct activity allocation. Cost center commonPetrol Expenses 50000 Allocation to Dept A 25000 Dept B 15000 Dept C 10000 --------- ------- 50000 50000 ==== =====Cost center will be zeroOrder no.AP9Z1234Petrol 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) 52
    • Select filed status variant :BILDouble click on filed status group folderSelect field status group G002Select copy as buttonChange field status group to G010Change the text to cost accounts (IO required )Enter and savePress enter to save in your requestDouble click on G010Double cock additional account assignmentsCost center make it optional entry fieldSaveCreation of GL master petrol expense under administration group (FS00)Give the GL Account no. :400310Company code :BILSelect with template buttonGive the GL account no.400300 Rent accountCompany code :BILEnterChange short text and long text to petrol expensesSelect create/bank /interest tabField status group :G010SaveSelect edit cost element buttonValid from date :01.04.2008EnterCost element category :01SaveCreation of secondary cost element i.e. Statement cost element (KA06): 53
    • Give the cost element :1000001EnterName and description settlement cost elementCost element category :Select 21 internal settlementSaveMaintain allocation structure:Path :SPRO-Controlling –Internal orders-Actual posting- Settlement-Maintainallocation structuresSelect new entries buttonAllocation structure :B1Text :BIL allocation structureSavePress enter to save in your requestSelect :B1Double click assignments foldersSelect new entries buttonAssignment :01Text :Vehicle expenses settlementSaveSelect :01Double click on source folderFrom cost element :400310 Petrol expensesSavePress enter to save in your requestDouble click on settlement cost elements folderSelect new entries buttonReceiver category :Select CTR cost centerSettlement cost element :1000001Save 54
    • Petrol expenses will be settled to cost center by using secondary cost element settlementcost element.Through orders.Maintain settlement profiles:Same pathDouble click on maintain settlement profilesSelect new entries buttonSettlement profiles :BIL1Description :BIL settlement profileAllocation structure :B1Select to be settled in full radio buttonDouble click on CTR cost centerSelect % settlement check boxSelect equivalence number check boxSelect amount settlement check boxUnder valid receiversFor cost center :Select settlement requiredMax.no. distribution rules :999Residence time :12 monthsSavePress enter to save in your requestRule 1:Order no.AP9Z1234 settle cost center Dept A 30000Petrol expenses 50000 settle cost center Dept B 15000 Dept C 5000Rule 2Order 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: 55
    • Maintain number range for settlement documents:Go through Same path (Tr.code is SNUM)Select maintain groups buttonDouble click on controlling area BILSelect Standard accounting document check boxFrom the menu select Edit Assign element groupSaveIgnore the message press enterCreation of order type (KOT2_OPA)Select new entries buttonOrder category :Select 01 Internal order (controlling)EnterGive the order type :BILV Vehicle order type BILSettlement profile :BIL1Budget profile :0000001 (General budget profile)Object class select :Overhead costsSelect release immediately check boxSaveIgnore the message press enter save in your requestSelect assign /Change intervals button beside no.range intervalDouble click on BILVSelect motor pool A-ZZZZZZZZZZZZZZ external check boxFrom the menu select Edit –Assign element group.SaveIgnore the message press enterDefine co.no.range interval for the business truncation K0A0-Actual settlement. Usethe transactions code (KANK)Give the controlling area :BILSelect maintain groups button 56
    • Double click on KOAO actual settlementSelect co.no.range interval for BIL check boxForm the menu select Edit –Assign element group.SaveIgnore the warning message press enterEND USER AREA:Creation of internal order (KO01)Give the order type :BILVEnterGive the order :AP9Z1234Description :Vehicle no.AP9Z1234Company code :BILBusiness area :BILHSelect control data tabDeselect statistical order check boxSelect settlement rule buttonCategory :CTR cost centerSettlement receiver :Dept AGive the percentage :70One moreCategory :CTRSettlement receiver :Dept BPercentage :30SaveIgnore the warning message press enterPosting of petrol exp F-02Give the document date :Today’s dateType :SACompany cod :BILPosting key :40 57
    • Account no. :400310 petrol exp.EnterGive the amount :100000Give the order no. :AP9Z1234Text :Petrol exp.Posting key :50Account no. :200105 SBI current accountEnterAmount :*Business area :BILHText :+From the menu select menu document –Simulate and saveActual settlement :Path :Accounting –Controlling-Internal order-Period end closing-Single functions-Settlement –Individual processing (K088)Give the order :AP9Z1234Settlement period :8 (current month)Fiscal year :2008Deselect test run check boxSelect check transaction date check boxSelect execute buttonSelect details list buttonNote : Order means overall expenses Eg: Vehicle Expenses Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs, Driver salary etc 58
    • BUDGETING AND AVAILABILITY CONTROLPlanning Budgeting1. We can plant cost element wise in the 1.Budgeting will be done order wiseorder2. We can do planning period wise in a 2. Budgeting should be done year wiseyear (Month wise)3.Micro level (Lower level) 3. Marco level (High level) For budgeting SAP has given availability control Order no.AP9Z1234 Budget amount 500000 Option 1 Option2 Option 3 Give Give warning Give Warning To the user Error1 To the user And inform to Budget managerIf actual amount exceeds 85% of budget 425000 OrIf the variance is above 20000 i.e actual 5200000 OrBoth Whichever activity comes first OrIf a actual amount exceeds 70% of budget go for option1If actual amount exceeds 85% of budget go for option 2If actual amount exceed 100% of budget go for option 3When we do budgeting it generate a document –We have to give budgeting –No. rangeinterval 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: 59
    • Path :SPRO-Controlling-Internal orders-Budgeting / availability control-Maintainno.ranges for budgeting (Tr code is OK11)Select change intervals buttonDefine tolerance limits for availability controlSame pathSelect new entries buttonControlling area :BILProfile :select 000001 General budget profileTr.group :++ all activity groupsAction :select 2 waring with mail to person responseUsage :85SavePress enter to save in your requestSpecify exempt cost elements from availability controlSame pathPetrol expensesRepairsDrivers salary is Fixed costWe can specify when we post to driver’s salary all with order AP9Z1234 –Even if, itexceeds 85% of budget no. message need to be given.It is known expenditureSelect new entries buttonControlling area :BILCost element :400100 Salaries accountSavePress enter to save in your requestMaintain budget managerSame pathSelect new entries buttonControlling area :BILOrder :BILV 60
    • Object class :OCost (Overhead cost)User name :SAP user (budget manager)SavePress enter to save in your requestBudgeting order wise (END USER AREA)Path :Accounting-Controlling –Internal order-Budgeting-Original budget –Change(Tr code is K022)Order :AP9Z1234EnterFor the period :500000 (Budget amount)Over / budget also 500000From the menu select Extras –Availability: Control –ActivateSavePosting of petrol expenses (F-02)Give the document date :Today’s dateType :SACompany code :BILPosting key :40Account no. :400310 Petrol expensesEnterGive the amount :350000Order :AP9Z1234Text :Petrol expensePosting key :50Account no. :200105 SBI current accountEnterGive the amount :*Business area :BILH 61
    • Text :+From the menu select –Document –Simulate and saveIgnore the message press enterTo view in box of the budget managerPath :SAP Menu Office –Work place (Tr code is SBWP)Select inbox folderWe get a message accounting document no. 62
    • PROFIT CENTER ACCOUNTINGThis is used to view profitability division wise /product wise /location wise if businessarea is not use in FIIdea scenario Company FI | Company code FI | Business area FI (Location) |----------------------------------------------------------------------------------------| | | |Steel Cement Pharma Co-profit centerDivision Division Division Accounting| |Product wise Co profitability AnalysisOption 1 Option 2Hyderabad location HYD BGL MOM | | | |Steel Cement Pharma Steel cement PharmaProfitability Profitability Balance sheetThe advantage of profit center accounting is it derives profit center automatically thoughderivation rules.A) In case of expenditure Tough cost centersB) IN case revenues Automatic account assignmentC) In case of balance Though business areaSheet 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 63
    • b) At the time of posting wages a/c Dr 500000 Dept A To Bank 500000It updates cost center Dept A as well as profit center steel.We have to create dunning profit center. At the time of posting, when there is noderivation rules, system updates dummy profit center. Transfer form dummy profit centerto respective center. Create derivation rule so that future transactions will not go todummy profit center. They will go to respective profit centers.Set controlling area (OKKS)Path :SPRO-Controlling –Profit center accounting-Basic settings-Set controlling areaGive the controlling area :BILEnterMaintain controlling area settings: (OKE5)(Follow through path )Path :Up to base settings the path is same- Controlling area settings-Maintaincontrolling area settingsStandard hierarchy :BILSelect elimination of business volume check boxProfit center local currency type :Select 20 Controlling area currencySelect confirm buttonSelect store truncation currency check boxSaveElimination of internal business volumePurchase Material no. 1 Profit center steelOrder Vendor no. 1234| Plant HYD| Profit center Steel| Qty 1 Kg| Rate 100GoodsReceiptIt should no take in steel profit center 100+100It should take only one time 64
    • Create dummy profit centerPath :SPRO-Controlling-Profit center accounting-Master data-Profit center-Createdummy profit center(Tr code is KE59)Double click on dummy profit centerGive the dummy profit center :BIL dummySelect basic data buttonName :BIL dummyDescription :Dummy profit center for BILProfit center group :BILSaveSet control parameters for actual datePath : Up to basis settings the path is same Controlling area settings -Activate directpostings-Set control parameters for actual data (Tr code is 1KEF)Select new entries buttonFrom year :2008Select Line items check boxSelect online transfer check boxSaveMaintain plan versionsUp to activate the path is samePlan version Maintain plan versionSelect version :0 Plan /Actual VersionDouble click on settings for profit center accounting folderSelect new entries buttonYear :2008Select online transfer check boxSelect line items check boxExchange rate type :B (bank selling rate)Save 65
    • Press enter to save in your requestDefine 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 66
    • Year :2008From no. :100001To no. :200000Enter and saveCreation of profit center:Path :Accounting-Controlling-Profit center accounting-Master data-Profitcenter-Individual processing-Create (Tr code is KE51)Give the profit center :SteelSelect master data buttonAnalysis period to :01.04.2008 to 31.12.9999Name :SteelLong text :Profit center steelPerson responsible :Mr AProfit center group :BILselect activate button (Shift+F1)One more profit centerprofit center cementselect master data buttonname :Cementlong text :Profit center cementperson responsible :Mr Bprofit center group :BILselect activate buttonCreate account groupsup to master data the path is same Account group create (Tr code is KDH1)Give the account group name :PLITEMS ( Profit & Loss)EnterDescription :P & L accounts for BILSelect insert account buttonFrom :300000 67
    • 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 SaveAssign profit center in cost centerPath :Accounting-Controlling-Cost center accounting-Master data-Cost center- Individual processing-Change (KS02)Give the cost center :Dept ASelect master data buttonGive the profit center :SteelSelect save button or Ctrl+SIgnore the warning message press enterCost center :Dept BEnterProfit center :CementSaveIgnore the warning message press enterCreation of sales account as revenue element (FS00)Give the GL account no. :300000 Sales A/cCompany code :BILSelect edit cost element buttonEnterCost element category :Select 11 Revenues 68
    • SaveMaintain automatic account assignment of revenue elementsPath :SPRO-Controlling –Profit center accounting –Actual postings-Maintain automatic account assignment of revenue elements (Tr code is OKB9)Select new entries buttonCompany code :BILCost element :300000 Sales A/cAccount assignment details :Select 2 Business area is mandatorySavePress enter to save in your requestSelect :BIL with cost element 300000Double click on detail per business area /valuation area folderSelect new entries buttonOption 1 Option 2HYD location |Steel cement Pharma HYD BGL MUM 300000 | | |HYD Steel Steel Cement Pharma 300001 Sales cement 300000 Sales accountHYD Cement 300002 Sales pharma HYD SteelHYD Pharma BGL Cement Mum PharmaBusiness area : BILHProfit center : SteelBusiness area : BILBProfit center : CementSaveChoose addition balance sheet and p & L accountsApplicable for second scenario: Application for second option 69
    • Same path Select choose accounts (Tr code is 3KEH)select new entries buttonAccount from :100000Account to :299999Default profit center :SteelSavePress enter to save in your requestSelect profit center determination buttonSelect crate step buttonStep description :Profit center derivation though business area for balance sheet items.Select drop down button under name columnSelect GSBER businesses areaSaveSelect maintain rule values buttonSelect source field intervals on /off buttonAccount no.100000To account no.299999Business area :BILHProfit center :SteelAccount no :100000To account no. :299999Business area :BILBprofit center :CementSaveEND USER AREA 1) Planning profit center wise for p & L items Path :Accounting –Controlling –Profit center accounting –Planning –cost /Revenues-Change (Tr code is 7KE1) 70
    • Version select :0From period :8To period :8Fiscal year :2008Company code :BILSelect next page or page down buttonProfit center :SteelAccount group :PLITESSelect from based radio buttonSelect overview screen buttonPer account no.300000 Sales accountProfit center reporting currency :600000 (Minus report currency)For account no.400100 salaries A/c without any signSavePlanning profit center wise for balance sheet items (Only for second scenario)Up to planning the path is same Balance sheet accounts change (Tr code is7KE3)Version :0From period :8To period :8Fiscal year :2008Company code :BILselect next page or page down buttonProfit center steelAccount group :BSITEMSSelect form based radio buttonSelect overview screen buttonFor account :100300 SBI rupee term loanProfit center reposting currency 20000- with minus sign 71
    • For 200105 SBI current account profit centers reporting currency 200000 without anysignSavePosting of cash sales (F-02)Give the document date :Today’s dateType :SACompany code :BILPosting key :40Account no. :200105 (SBI current account)EnterAmount :550000Business area :BILHText :sales postingPosting key :50Account no. :300000 (Sales a/c)EnterAmount :*Business area :BILHText :+Form the menu select Document –Simulate and savePosting of salaries (F-02)Document date :Today’s dateType :SACompany code :BILPosting key :40Account no. :400100 Salaries a/cEnterGive the amount :475000 72
    • Cost center :Dept AText :Salaries postingPosting key :50Account no. :200105 SBI current accountEnterAmount :*Business area :BILHText :+Document –simulate and saveTo View variance report profit center wise for P & L itemsPath :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 :8Fiscal year :2008Plan version :0Profit center values :steelProfit center accounts groups :PLITEMSSelect execute buttonTo view variance report profit center wise for balance sheet items:Up to interactive reporting the path is same Profit center group: Balance sheetaccounts plant / Actual /Variance (Tr code S_ALR_87013336)From period :8 (Running month)To period :8Fiscal year :2008Plan version :0Profit center values :SteelBalance sheet account group :BSITEMS 73
    • ExecuteTransfer of values from one profit center to another profit centerOne cost center works for no.of profit centers we an assign only one profit center iscost center.In dept A Profit center steelFrom profit center steel transfer to cementManual transfer through cyclesNo.FI document will be generatedNo.CO document will be generatedOnly profit center document will be generated.Path :Accounting –Controlling-Profit center accounting-Actual postings-Profitcenter document –Enter (Tr code is 9KE0)Layout select 8A-001 document :Profit center /accountSelect execute buttonCompany code :BILSelect Enter screen buttonProfit center :SteelAccount no. :400100 SalariesIn profit center local currency 500000 –(with minus sign)Profit center :CementAccount no. :400100 SalariesAmount :500000 (without minus sign)Save 74
    • 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/ productsWhy we create port as a plant:Keep the material on shipHYD Chennai CustomerFactory PortExport sale – Terms of delivery-FOB (Free on Board) ownership will be transferred oncewe kept the martial on ship.Business area will be assigned to plants, plants will be assigned to sales organizationbusiness area will be assigned to sales organizations.In SD module, combination of sales organization, distribution channel and division –Onesales area. Sales Area 1 Sales Area 2 Hyd sales Org. Hyd Sales org | | 75
    • Direct sales Through agents | | Steel SteelMovement types: Similar to posting keys in FI101 Material receipt against purchase order /production order102/122 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) 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) 76
    • (viii) AUA production order differencesEg: 400000 Raw material consumption 200121 Inventory raw materialFor consumptionRaw material consumption Dr To Inventory raw materialFor GBB VBR Assign account no.400000For BSX Assign account no.200121Valuation class:Valuation class determines the GL accounts to be posted automatically.A) Raw materials Local Imported Inter unit purchases Inter company purchases 4 Valuation classB) Stores :Local 2 valuation classC) Finished goods own manufacturing 1 valuation classValuation grouping code / valuation modifier /Valuation modification key:Company codes BIL BCL BSLChart of accounts BILPlants HYD-BGL BGL-MUM HYD-MUMLocal raw materials RM1 RM2 RM3-RM1 RM2-RM3Incase of purchases, 200121 –Inventory raw material localWhen we follow same chart of accounts for numbers of company codes, Instead ofassigning accounts number of times, assign only one time by using valuation groupingcode.Valuation Chat of accounts Company code ValuationAreas Plants GroupingHYD BIL BIL XBGL BIL BIL XBGL BIL BCL XMUM BIL BCL XHYD BIL BSL XMUM BIL BSL X 77
    • For X in case of RM local purchases assign account number 200121, inventory Rawmaterial local.This is similar to posting periods in FIA) Define posting period variant XB) Assign posting period variant to company codes X to BIL X to BCL X to BSLc) Define posting periods for variant X for X—1, 2008 –12,2008Material types Price controlsRaw materials ROH V-Moving average price purchase priceStores & spares ERSA V-Moving average price purchase pricePacking & material VERP V-Moving average price purchase priceFinishing goods FERT S-Standard price Raw materials +Semi finished goods HALB OverheadsPurchased V-Moving average price Purchase priceProduced S-Standard price Raw material+OverheadsTrading goods HAWA V-Moving average price Purchase priceServices DIENSemi 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 Where processing of A,B and C is completed D processing of DSemi finished goods produced Dept A Dept B Dept C Dept DIssue 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 sellTrading goods: Purchase FG and sell FG without doing any processing.Services: Plant is having operating capacity No sales orders Job work for others 78
    • 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 dataPurchase viewSales viewMRP viewQualityWare house managementAccountingCostingMM FlowA) Material requisition By production Dept to StoresB) Purchases requisition By stores to purchasesC) 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 organizationE) Release It is optional It will work through work flowIf P.O value is less than Rs.10000 To be released by manager purchasesIf P.O value is Rs.10000 and above To be released by GM(Purchases)And less than 100000 if P.O value is10000 and above To be released by DirectorOnce we save the purchase order, based on the value it goes to the inbox of the commandauthorized person, till is releases we can’t 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 79
    • (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) BSXJ) Wages paymentWages A/c DR 20 P & L Debit To Bank 20 BS CAK) Production Receipt At product costInventory 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 stepsL) Delivery –At product costINC /DEC in stocks FG DR 120 P & L CreditGBB 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/AM) Sales billingCustomer A/c DR 150 BS C/A From sales order, customer number will betaken To Sales 150 P & L credit ERLLCL=LocalInventory FG=Raw material consumption local +wagesGR=Goods receiptINC/DEC STK FG=Increase /Decrease stock finished goodsP & L accountH) 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 === === 80
    • Balance SheetSurplus 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 --------- 0a) 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 masterEg: 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-IMPLocal Raw Material1. Purchase order Material –RM1 Vendor -1234 Qty-100 Kgs Rate 5 Rs Save P.O.No.12. Goods receipt with reference to P.O-P.O No.1 Movement Type:101 Debit BSX 200121 Credit WRXMaterial RM1Qty 60 kgsSaveMaterial Doc no.200001200121 –Inventory RM local DR 300100520 GR/IR CLR RM Local 300(Qty IN GR *Rate as per P.O)60*5 81
    • Raw material consumptionMovement type 201 Debit GBB VBR Debit A/c No. 400000Credit BSX 200121Material RM1 3000Qty 10 Kgs400000 RM Consumption LCL DR 50200121 Inventory RM Local 50(Qty issued * Moving average rate)Imported raw material1. Purchase order Material -RM2 Vendor -4567 Qty-1Kg Rate -100 PO No.22. Goods receipt- with reference to PO-PO No.2 Movement type:101 Debit BSX 200122 Credit WRX 100521Martial RM2 3001Qty 1 KgSave Material Doc No.200003200122- Inventory RM IMP DR 100100521 GR/IR CLRG RM IMP 100(Qty IN GR* Bate as per P.O)1*100Raw material returnsMaterial doc no.200003Movement Type 102 Debit WRX 100521 Credit BSX 100122Material RM2 3001Qty 1 KgSave Material doc no.200004100521 GR/IR CLR RM IMP DR 100200122 Inventory RM IMP 100Why SAP does not support purchase accounting why it supports inventoryaccounting:RM –Local raw material 1 2 3 Not included in purchase Bill received Less stock reported Provision statement by storesRM consumption=Qty ValueOpening stock 0 0 0 0 82
    • Add purchase 0 516.50 516.50 _____________________________ 516.50 516.50Less :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 receivedBasic price 500Excise 50Stores 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 notreceived to make purchase provision.Stores person –By mistake he has not included the above item in the purchase provisionstatement.Account Dept.gets closing stock statement from stores-in the statement he is showing 60kgs stock at 5Rs.300Issue2 –Closing stock valuation wrongWe have received invoice after words in invoice wrongBasic 500 500Excise 50 50CST2% 11 11Other 1% 5.5 5.5 ------- -------- ---Bill amount 566.50 516.50 50 Purchase a/c cenvat receivableIn the month end stores person sends closing stock statement60 kgs at Rs.5Should be value 516.5/100*60=309 83
    • *Issue less stock reported by storesIf this month production is more, profitability will be more.If this month production is less, profitability will be less.Physical stock available -60 KgsReporting to accounts only 40 kgs40*5=200Inventory accounting1. Purchase order Material no.RM1 Vendor 1234 Qty 100 Rate 5 Tax code A1 (10% Excise +2% CST) other charges 1% PO no.12. Goods receipt with reference to PO no.1 Movement type 101 Material RM1 Qty 100 SaveEntry will be passed automaticallyInventory RM local DR 516.50 To GR/IR CLR RM Local 516.50 Qty inGR*Rate as per POStore records : Material RM1Qty :ValueReceipt :100 Kgs 516.50Account records 200121 Inventory RM local 516.50 DR3. Raw material consumptionMovement type 201Material RM1Qty 40 KgsSaveAccounting entry will be generated automatically RM consumption local DR206.5 (516.5) 100*40To Inventory RM local 206.6Qty issued moving .AVG priceStores records: Material RM1 Qty ValueReceipt 100 Kgs 516.50Issue 40 Kgs 206.6 84
    • ------ ------ 60 Kgs 309.9Accounts records 200121 Inventory RM local 516.50 DR 206.60 DRCL stock value 309.9Price differences are two types1)Batch method 2)Moving average method | ------------------------------------------------------- | | | Stock fully available Stock partly available Stock no available1st method –Batch method:RM1 PO PR 10 RS BILL for 12Rs 1.Material ReceiptBatch Qty Rate Amount Inv RM local DR 1000 BSX1 100 10 1000 To GR/IR CLR RM LCL/100 WRX2 50 40 2000 2. Raw Material consumption ----- ----- 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 takenBreak up1 90 12 10802 50 40 2000Preparation in P & L account :Raw material consumption :Raw material consumption +/ price difference RMEg: RMC 100 PD RM 20 ---- 120 ===For the truncation key PRD –We can assign raw material consumption account or pricedifference RM A/c 85
    • Moving average method: stock fully availableRM1 PO Price :10 Final Bill for Rs.12 Qty rate amount 1. Goods receiptBill 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 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 takenConsumption rate:Value / Qty 3000/150=20Next consumption rateValue / Qty 2800/130=21.543rd method moving average method: Stocks partly availableRM1 PO Price 10Rs Bill for 12Rs 1.Material receipt Qty Rate Amount 1. Goods receiptBill 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 86
    • 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 takenConsumption rateValue / Qty 30000/150=20Next consumption rate:Value qty 440/20=22.00Incase 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 socksRM1 PO Price 10 Rs Bill for Rs12 1. Material receipt Qty Rate Amount Inv RM local DR 1000 BSXBill 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 verificationAVBL Qty 0 0 GR/IR CLRG RM LCL DR 1000 WRX Price Diff RM DR 200 To Vendor 1200 form PO vendor no.is takenSales and Distribution Flow: 1. Inquiry and quotation: 2. Sales order : Product, Plant, Sales organization, customer no., quantity, rate delivery terms, payment terms. 3. Delivery :With reference to sales order A) Delivery without post goods issue (Delivery without PGI) ownership is not transferred. Eg. Export sales –Terms of delivery –FOB (Free on board) Hyderabad Factory Chennai Port Customer Delivery without PGI Delivery with PGI 87
    • No FI document only FI document material material document document FI document :At product cost Increase /Decrease in stocks FG DR GBB VAY-If sales account is created as revenue element (Co implemented)1 GBB VAX if sales account is not created as revenue element (Co not implemented) To inventory FG BSX B) Delivery with Post Goods Issue (Delivery with PGI) Eg. Local sales terms of delivery –Ex works Hyderabad factory Customer Delivery with PGISales Billing: With reference to deliveryCustomer account DR From sales orderTo Sales :ERLSD-Pricing procedureEg: 1 2 3 4From R egion Andhra Andhra Andhra AndhraTo Region Andhra Tamilnadu Andhra TamilnaduCustomer Taxable Taxable Non-taxable Non-taxableMaterial Taxable Taxable Non-taxable Non-taxableBasic priceExcise % on basicVAT % on Basic+Excise CST % on basic+ ExciseFrom H salesCondition type: KOFI (Account assignment-FI) KOFK (Account Assignment –CO)Assignment of accounts1 2 3 4 5 6 7 8Application Conditi Chat Sales Account Account Accouarea on type of originatio assignment assignment nt keys 88
    • accoun n group for group for ts customers materialsV-Sales & KOFI BIL HYD 01 03 ERL 300001 –Distribution Sales Local own goodsV-Sales & KOFI BIL HYD 02 03 ERL 300002-Distribution Sales exports own goodsV-Sales & KOFI BIL HYD 01 01 ERF 300003Distribution Sales local trading goodsV-Sales & KOFI BIL HYD 01 03 ERL 400350 –Distribution Sales Freight revenu Local own e goods 01- 01 Traded ERF Domestic goods Freight revenues Reven ues 02-Foreign 02 Services ERB- revenues Rebate s /Tradi ng Discou nts 03- 03 ERS Afflicated Finished Sales company goods Deduct revenues ionsNote :ERS :Sales commissionBank 5000 From customer 5000 Reimbursement of expenses MM CUSTOMIZATIONMM consultant job 1. Define Plants 89
    • Path: SPRO-Enterprise structure- Definition –Logistic general-Define copy,delete check plant.Double click on define plantSelect new entries buttonPlant :BILPName :BIL HYD Factory plantFactory calendar :Select B2 or 01 (B2=BIL HYD Factory Calendar)Save (01=Standard calendar)Give the name :BIL Hyderabad factory plantCountry :INEnterSelect create request buttonShort description :MM customization for BILPress enterEnter once again to save in the requestDefine division:Path :Up to logistic –General the path is same-Define copy, Delete, checkdivision.Double click on define divisionSelect new entries buttonDivision :BS (It is a text filed)Name :Steel DivisionSavePress enter to save in your requestMaintain storage locationPath :SPRO-Enterprise structure –Definition- materials management –Maintain storage location (OX09)Give the plant :BILPEnter 90
    • Select new entries buttonGive the storage location :HYDDescription :Hyderabad storage locationSavePress enter to save in your requestMaintain purchasing organizationSame pathSelect new entries buttonPurchase organization :BIRDescription :BIL Purchase organizationSavePress enter to save in your requestAssign plant to company code:Path : SPRO-Enterprise structure –Assignment- logistics General –Assignplant to company code ( Tr code is OX18)Select new entries buttonCompany code :BILPlant :BILPSavePress enter to save in your requestAssign business area to plant/valuation area and divisionPath :Same path -Select plant /valuation area –Division buttonSelect new entries buttonPlant :BILPDivision :BSBusiness area :BILHSave 91
    • Press enter to save in your requestAssign purchasing organization to company codePath :Up to assignment the path is same –Materials management –Assignpurchasing organization to company codeSelect position button :Give the purchase org:BILREnterFor BILR for assign company code BILSavePress enter to save in your requestAssign purchasing organization to plant:Same pathSelect new entries buttonPurchasing org :BILRPlant :BILPSavePress enter to save in your requestCreate purchasing groupsPath :SPRO-Materials management –Purchasing –Create purchasing groups.Select new entries buttonPurchasing group :BILDescription :BIL RM purchasing groupSavePress entr to save in your requestDefine material groups:( OMSF)Path :SPRO-Logistic general –Material master-Settings for key fields –DefineMaterial groups.Select new entries buttonMaterial group :BILCMaterial groups description :Chemicals 92
    • Press enter to save in your requestMaintain company code for material management:Path :SPRO-Logistic General –Material master-Basic settings-Maintaincompany code for materials managementSelect position buttonGive the comp code :BILEnterYear :2008Period :7 (October)Note : This period enter carefully, if you once enter not modifiedSelect ABP check box (ABP stands for Allow Back Period Posting)Note: September entries allowedSaveIgnore the warning message press enterPress enter to save in your requestDefine attributes of material types:Path:up to the material master the path is same – Basic settings –Material type-Define attributes of material types.Select position buttonSelect material type :ROH (Raw materials)EnterSelect ROHDouble click on quantity / Value updating folderSelect position buttonValuation area :BILP ( Nothing but plant)EnterFor BILP select quantity updating, value update check boxSavePress enter to save in your request 93
    • Select back arrowSelect material FERT for finished productDouble click quantity / value updating folderSelect position buttonValuation area :BILPEnterFor BILP select quantity updating check box value updating check boxSaveSet tolerance limits for price variance for purchase orderPath: SPRO-Material management –Purchasing –Purchase order –settolerance limits for price varianceSelect TIKY :PE & SE for company code 1000Select copy as buttonEnter the company code to BILFor tolerance key :PEEnterChange the company code to :BILFor tolerance key :SEEnter and savePress enter to save in your requestPlant parameters:Path :SPRO-Materials management –Inventories management –Physicalinventory –Plant parametersSelect plant :1000Select copy as buttonChange the plant to BILPEnter and savePress enter to save in your request 94
    • Set tolerance limits for goods receiptPath :Up to inventory management and physical inventory the path is same -Goods receipt-Set tolerance limitsSelect tolerance key B1,B2,VP for company code 1000Select copy as buttonChange the company code to BIL for B1EnterChange the company code BIL for B2EnterChange the company code to BIL for VPEnter and savePress enter to save in your requestMaintain default values for tax codesPath: SPRO- Materials management –Logistics invoice verification-Incominginvoice maintain default values for tax codesSelect new entries buttonCompany code :BILSavePress enter to save in your requestSet tolerance units for invoice verificationPath:Up to logistics invoice verification the path is same – Invoice block-Settolerance limitsselect tolerance key BD, ST for company code 1000select copy as buttonchange the company code to BIL for BDenterchange the company code to BIL for STsaveDefine automatic status change 95
    • Path :Up to the logistic invoice verification the path is same – Invoiceverification in back ground –Define automatic status changeSelect new entries buttonCompany code :BILSelect save button or Ctrl+SPress enter to save in your requestGroup together valuation areas:Path :SPRO-Material management –Valuation and account assignment-Account determination-Account determination without wizard-Grouptogather valuation areas.Select position buttonValuation :BILPEnterGive the valuation grouping code :XSavePress enter to save in your requestDefine valuation classes:Path :Same path – Select valuation class buttonSelect valuation class 3000 Raw materials localSelect valuation class 7920 Finished productsSelect copy as buttonChange valuation class 3000 to BIL1Change the description to Raw materials localChange valuation class 7920 to BIL2 – Finished productEnter and savePress enter to save in your request 96
    • FI consultants job:1. Creation of GL masters FS00 A) Inventory RM local Current assets loans & advances B) Inventory finished goods -do- C) GR/IR clearing RM local Current liabilities & Provisions D) RM consumption local RM Consumption E) INC/DEC in stocks FG Increase /Dec in stocksGive the GL account no. 200121Company code BILSelect with template buttonGive the GL account no.200120 Inventory RMCompany code :BILEnterChange the short text to Inventory RM localChange the GL a/c long text also inventory RM localSelect control data tabTax category :select * (All tax allowed)Select posting without tax allowed check boxSelect create/Bank/Interest tabField status group change to G006 Material accountsSaveNote :Before post select automatically only check box 200121Ignore the warning message press enterGL account no. :200122Company code :BILSelect with template buttonGive the GL a/c no.200121Company code :BILEnterSelect type/description tabChange short text and GL a/c long text to inventory FGSave 97
    • GL account :100520Company code :BILSelect with template buttonGL account :100500 outstanding exp.Company code :BILEnterChange short text and GL account and long text to GR/IR clearing RM localSelect control data tabTax category :*Select posting without tax allowed checkSort key :014 Purchase orderSelect create /bank /interest tabField status group change to G045 goods/Invoice received clearing accountsSaveG/L account :400000Company code :BILSelect with template buttonGive the GL account no.400100 Salaries a/cCompany code :BILEnterSelect type/description tabChange the account group to RM consumptionChange short text and GL account long text to RM consumption localSelect create /bank /interest tabField status group to change to G003 Material consumption accountsSaveSelect edit cost element buttonValid from :01.04.2008EnterCost element category :Select 01Save 98
    • GL account :300200Company code :BILSelect with template buttonChange the GL a/c no.300100 Exchange gainCompany code :BILEnterSelect type/Description tabChange account group to Increase /Decrease stocksChange short text and GL account long text to Increase/Decrease in stocks FGSelect create/Bank/Interest tabChange field status group to G030 change in stock accountsSave*Assignment of accounts for automatic postingsPath :Up to account determination without wizard the path is same – Configureautomatic postings (Tr code is OBYC) (MM to FI Integration )Select cancel buttonSelect account assignment buttonDouble click on transaction BSX inventory postingGive your Chart of Accounts :BILenterSelect valuation modifier check boxSelect valuation class check boxSaveValuation modified Valuation class AccountX BIL1 RM local 200121 Inventory RM localX BIL2 Finished products 200122 Inventory FGSave 99
    • Press enter to save in your request Select back arrow Double click on transaction WRX GR/IR clearing account Select valuation modifier check box Select valuation class check box Save Valuation modifier :X Valuation class :BIL1 RM local Account no. :100520 GR/IR clearing local Save Press enter to save in your request Select back arrow Double click on GBB offsetting entry for Inventory posting Select General modification check box Valuation modifier check box Valuation class check box SaveValuation General modification Valuation class AccountmodifierX VBR (consumption) BIL1 RM local 400000 RM consumption localX ZOF (Production receipt BIL2 Finished 300200 Increase / without production order) products Decrease stocks FGX AUF with production BIL2 300200X VAY (Delivery where BIL2 300200 sales account is created as revenue element Co implemented)X VAX Delivery where is BIL2 300200 sales account is not created as revenue element CO not implemented Save Press enter to save in your request 100
    • Document types and no.ranges (OBA7)WE :Goods receiptWA :Goods issueRE :Grass invoice receiptTr code is OBA7Select WE :Goods receiptSelect details buttonNumber rage :50Select number range information buttonCompany code :BILSelect change intervals buttonSelect interval buttonNo.range :50Year :2008From no. :800001To no. :900000Enter and saveIgnore the warning message press enterSelect back arrow 3 timesSelect type WA Goods issueSelect details buttonNumber range :49Select no.range information buttonCompany code :BILSelect change intervals buttonSelect interval buttonNo.range :49Year :2008From no. :900001 101
    • To no. :1000000Enter and saveIgnore the warning message press enterSelect back arrow three timesSelect RE gross invoice receiptSelect details buttonNo. range :51Select no.range information buttonCompany code :BILSelect change intervals buttonNo.range :51Year :2008From no. :1000001To no. :1100000Enter and saveIgnore the warning message press enterMM end user areaCreation of vendor master XK01Give the company code :BILPurchasing organization :BILRAccount group :BIL2 MM vendors for BILEnterGive the name :Nagarjuna Steels LimitedCountry :INSelect next screen button 3 timesReconciliation account :select 100501 Sundry credit RMSort key :012 vendorSelect next screen buttonPayment terms :0001 102
    • Select next screen button 2 timesOrder currency :INRSelect GR based invoice verification check boxSaveCreation of RM material masterPath :Logistics –Materials management –Material master-material-Create(Genral) –Immediately (Transaction code MM01)Material :BILRM1Industry sector :Mechanical engineeringMaterial type :Raw materialPress select views buttonSelect basic data1, purchasing, general plant data/storage1/accounting1Select organization levels button (bottom side)Give the plant :BILPStorage location :HYDEnterGive the description :Raw material 1Basic unit of measurement :KGMaterial group :BILC (Chemicals)Division :BS (Steel)Select purchasing tabPurchasing group :BILSelect accounting one tabValuation class :select BIL1 (RM local)Price control :select V moving average priceMoving price :50Select save button or Ctrl+STo open material periods for November: 103
    • Up to material master the path is same –Other-Close period (Transaction codeis MMPV)From company code :BILGive the period :8 (November)Fiscal year :2008Select check and close period radio buttonExecutePurchase order creationPath :Logistics – Material management –Purchasing –Purchase order-Create-Vendor/supplying plant known (The transaction code is ME 21N)Give the purchasing organization :BILRCompany code :BILEnterGive the purchasing group :BILItem :10Material :BILRM1PO quantity :100 Kgnet price :75Plant :BILPGive the currency :INRVendor no. :2001SaveNote the purchase order no.4500017092Goods receipt:Path :Logistics –Material management –Inventory management –Goodsmovement –Goods receipt- for purchase order –PO number known (Thetransaction code is MIGO)Select goods receiptGive purchase order no.4500017092Enter 104
    • Storage location select :HYDSelect quantity tabQuantity in delivery note :100Select item ok check boxSelect save button or Ctrl+SSelect display buttonEnterSelect document information tabSelect FI documents button BSX200121 Inventory RM local 7500 BILRM1 BIL1 WRX100520 GR/IR CLRG RM local -7500 BILRM1 BIL1 Qty .Received(GR) *Rate as per PO 100*75Note: change USTAX to GTAXInvoice verification:Path :Logistics –Materials management –Logistics-Invoice verification –Document entry-Enter invoice (Transaction code is MIRO)Give the invoice date :Today’s dateReference :Party bill no.1234Text :Invoice verificationPurchase order :4500017092Select payment tabPayment terms :0001Baseline date :today’s dateSelect base data tabTax code :select V0EnterBusiness area :BILHSelect beside data tab 105
    • Amount :7500EnterSelect save button or Ctrl+sFrom the menu select invoice document –DisplaySelect follow on document button2001 Nagarjuna Steels Limited 7500 –From party no is taken100520 GR/IR CLRG RM local 7500 BILRM1 BIL1Raw material consumptionPath :Logistics –Materials management –Inventory management –goodsmovement –goods issue (Transaction code is MB1A)Movement type :201Plant :BILPStorage location :HYDEnterGive the cost center :Dept AMaterial :BILRM1Quantity :30Select save button or Ctrl+SFrom the menu select goods –Issue displayEnterSelect accounting documents buttonSelect accounting document number BSX200121 Inventory RM local 2250-BILRM1 BIL1 GBB VBR400000 RM consumption LCL 2250-BILRM1 BIL1Qty consumed * moving average price 30*75 106
    • To view stock ledgerPath :Logistics –Materials management –Inventory management –Environment –Stock for posting date (Transaction code is MB5B)Material no. :BILRM1Company code :BILPlant :BILPSelection date :01.04.2008 to 31.03.2009Select valuated stock radio buttonExecute SD CUSTOMIZATIONSD consultant’s job1. Define region:(State) Path :SPRO-SAP netweaver-General settings-Set countries –Insert regions Select new entries button Country :IN Region :AP Description :Andhra Pradesh Save Select create request button(F8) Short description SD customization for BIL Save in your request Define sales organization Path :SPRO-Enterprise structure –Definition –Sales and contribution – Define,copy,delete,check,-Sales organization Double click on define sales organization Select new entries button sales organization :BILS Description :BIL HYD Sales organization statistics currency :INR 107
    • save, Ignore the warning message press enterGive the name :BIL HYD sales organizationcountry :INregion :APpress enterTo save in your requestDefine distribution channelSame path -Sales & distribution –Define,copy, delete,check distributionchannelDouble click on define distribution channelSelect new entries buttonDistribution channel :BDName :Direct salesSavePress enter to save in your requestDefine shipping pointPath :SPRO-Enterprise structure –Definition-Logistic execution –Define,copy, delete, check shipping pointDouble click define shipping pointSelect new entries buttonShipping point :BISHDescription :BIL HYD shipping pointSaveName :BIL HYD shipping pointCountry :INEnterPress enter once again to save in the requestAssign sales organization to company code: 108
    • SPRO-Enterprise structure –Assignment-Sales & Distribution –Assign salesorganization to company codeSelect position buttonSales organization :BILSEnterFor sales organization :BILSAssign company code :BILSavePress enter to save in your requestAssign distribution channel to sales organizationSame pathSelect new entries buttonSales organization :BILSDistribution channel :BDSavePress enter to save in your requestAssign division to sales organizationSame pathSelect new entries buttonSales organization :BILSDivision :BSSavePress enter to save in your requestSetup sales area:Same pathSelect new entries buttonSales organization :BILSDistribution channel :BD 109
    • Division :BSSavePress enter to save in your requestAssign sales organization –distribution channel- plant:Select new entries buttonSales organization :BILSdistribution channel :BDPlant :BILPSavePress enter to save in your requestDefine rules by sales area:Path :Up to sales and distribution the path is same –Business area accountassignment –Define rules by sales areaSelect position buttonSales organization :BILSenterFor sales organization :BILSRule select :001 (Business area determination from plant / division )Save, press enter to save in your requestAssign shipping point to plant:Path :SPRO-Enterprise structure –Assignment-logistic execution –Assignshipping point to plantSelect find buttonEnter :BILPPress enterSelect :BILPSelect assign button 110
    • Select BISH check boxenterSavePress enter to save in your requestDefine common distribution channels:Path :SPRO-Sales & Distribution –Master data –Define commondistribution channelsSelect position buttonGive the sales organization :BILSEnterDistribution channels for condition :BDDistribution channels for customer master :select BDSavePress enter to save in your requestDefine common divisions:Same pathSelect position buttonSales organization :BILSEnterDivision for conditions :select BSDivision for customer master :select BSSavePress enter to save in your requestMaintain pricing proceduresPath :SPRO-Sales and distribution –Basic functions –pricing –Pricingcontrol –Define and assign pricing proceduresDouble click on maintain pricing proceduresSelect pricing RVAA01 standardDouble click on control data folder 111
    • Condition type SKTV cash discountCondition type MWST output taxDeselect required check boxSaveIgnore the warning message press enter to saveDefine pricing procedure determination:Upto define and assign pricing procedures the path is sameDouble click on define pricing procedure determinationSelect new entries buttonSales organization :BILSDistribution channel :BDDivision :BSDocument pricing procedure :select A standardCustomer pricing procedure :select 1 standardPricing procedure :select RVAA01 standardCondition type :select PR00 priceSavePress enter to save in your requestDefine tax determination rules:Path :SPRO-Sales and distribution –Basic functions- Taxes –Define taxdetermination rulesSelect new entries buttonTax country :IN for IndiaSequence :1Tax category :UTXJ Tax Jursdict codeSaveSetup partner determination:Partner functions Customer No.SP Sold to Party 1 1 Not modifiable 112
    • SH Ship to party 1 2 ModifiableBP Bill to party 1 2. ModifiablePY Payer 1 2 ModifiableIf we don’t specify separately (SP,SH,BP and PY)all we be only customerPath :Up to basic functions the path is same-Partner determination –Set uppartner determinationDouble click setup partner determination for customer masterDouble click on partner functions folderSelect position buttonPartner function :SPEnterSelect partner function SPDouble click on account group function assignment folderSelect new entries buttonPartner function :SPAccount group :BIL2Partner function :SHAccount group :B1L2Partner function :BPAccount group :BIL2Partner function :PYAccount group :BIL2Ignore the warning message press enter to save in your requestDouble click on partner determination procedures folderSelect new entries buttonPartner determination :BILName :BIL partner determination procedureSaveIgnore the warning message press enterSelect partner determination :BIL 113
    • Double click partner functions in processor folderSelect new entries buttonPartner function :SPSelect not modifiable check boxSelect mandatory check boxSelect partner function :SH select mandatory function check boxSelect partner function :BP select mandatory function check boxSelect partner function :PY select mandatory function check boxSavePress enter to save in your requestDouble click on partner determination procedure assignment folderSelect position buttonAccount group :BIL2EnterFor BIL2 Assign partner procedure BILSaveAssign shipping pointsSPRO-Logistics execution-Shipping –Basic shipping functions –Shippingpoint and goods receiving point determination –Assign shipping pointSelect new entries buttonShipping conditions :select 01 as soon as possibleLoading group :0003 manualPlant :BILPPropose shipping point :BISHSavePress enter to save in your requestFI consultant job:Creation of GL master sales local own goods under sales group –FS00 114
    • Give the GL a/c no. :300005Company code :BILSelect with template buttonGive the GL a/c no. :300000 sales accountCompany code :BILEnterChange short text and GL a/c long text local own goodsSelect control data tabTax category :*Select posting without tax allowed check boxSelect create /Bank /Interest tabField status group G029 revenue accountsSaveSelect edit cost element buttonValid from :01.04.2008EnterCost element category :11 RevenuesSave* Assignment of account for automatic postings:Path :SPRO-Sales and Distribution –Basic function-Accountassignment/costing Revenue account determination –Assign GL accounts(Transaction code is VKOA)Note : This is Important Tr codeDouble click on table oneSelect new entries buttonApplication area :Select V Sales & DistributionCondition type :KOFI account dataChart of accounts :BILSales organization :BILSAccount assignment group of customer :Select 01 domestic revenues 115
    • Account assignment group of material :03 Finished goodsAccount key :Select ERL sales revenuesGL account :300005 sales local own groupSavePress enter to save in your requestSD end user areaCreation of customer master :XD01Company code :BILSales organization :BILSdistribution channel :BDDivision :BSAccount group :SD customer for BILEnterName :DLF Industries LtdCountry :INRegion :APSelect company code data buttonReconciliation account :200110 sundry debtorsSort key :031 customer no.Select payment transaction tabTerms of payment :0001Select sales area data buttonCustomer pricing procedure :select 1 standardSelect shipping tabDelivery priority :select 02 normalShipping conditions :select 01 as soon as possibleDelivery plant :BILPSelect billing documents tabSelect price determination check boxIn CO terms under delivery and payment terms :select EXW form plantTerms of payment :0001 116
    • Account assignment group :select 01 domestic revenuesFor Tax category UTXJ Tax classification :select 1 liable for taxSaveCreation of finished goods material master (MM01)Give the material :BILFGIndustry sector :Mechanical engineerMaterial type :Finished productPress select views buttonSelect basic data 1Select Sales :Sales organization data 1Select Sales :sales org.data 2Select Sales :General /plant dataSelect MRP1Select general plant data /storage 1Select accounting 1Select organization levels buttonPlant :BILPStorage location :HYDSales organization :BILSDistribution channel :BDEnterDescription :Finished productBase unit of measurement :KGDivision :BSGross weight :1 kgSelect sales :select 1sales :Sales org.1 tabDivision :BSTax classification :select 1 (Taxable)Select sales :sales, sales organization 2 tab 117
    • Account assignment group :select 03 finished goodsSelect sales :General /plant tabAvailable check :select KP no checkTransportation group :select 0003 containerLoading group :select 0003 manualSelect MRP1 tabMRP type :select ND no planningSelect accounting 1 tabValuation class :select BILL2 finished productPrice control :select S standard priceStandard price :400SaveCreation condition types:Path : Logistics –Sales & Distribution –Master data-Conditions –Selectusing conditions type-create (Transaction code is VK11)Condition type :PR00 priceSelect key combination button: Select material with release status radio buttonEnterSales organization BILSDistribution channel :BDMaterial :BILFGAmount :600Valid from :01.04.2008Valid to :31.03.2009SaveSelect back arrowCondition type :select UTXJ tax Jursdict codeSelect key combination buttonSelect domestic taxes radio buttonEnterCountry :IN for India 118
    • Tax classification for customer :1 Tax classification for material :1 Valid from :01.04.2008 Valid to :31.03.2009 Tax code :A0 (0% output tax) Save Ignore the message press enter CO –PROFITABILITY ANALYSIS (CO-PA)Co for ControllingPA for Profitability AnalysisThis is used to view profitability for number of parameters at a time:Eg: Customerwise /Productiwise /Sales order wise plant wise, Sales organizationprofitability.Account based profitability /costing based profitability analysis / both (in India we useboth)PP ModuleMM ModuleFI Module product costing SD module CO-PACO ModuleDefine an operating concertOperating concern can be equal to controlling area or above controlling areaControlling area can be equal to our company code or above company codeCompany code =controlling area =operating concernData structureCharacteristics Value fieldsCustomer ------Product |Sales order |Plant |- Sales cost of goods sold net profitSales organization |Sales employee |Country | 119
    • ----Profitability segment It consists of A) System defaulted characteristics Eg: customer / Product / Sales order /Plant /Sales organization B) Client required characteristics Eg: Sales employee / IndustryData flow in SD module: 1. Inquiry and quotation 2. Sales order –customer /product /plant sales organization /quantity /rate delivery terms payment terms. 3. Delivery with reference to sales order. A) without posting goods issue (without PGI) B) with post goods issue (with PG1) 4. Sales billing with reference to delivery Data flow in Co-PA SD condition types CO-PA value fields PR00 Price VV 010 – Revenues VPRS Costs VV 140 – Cost of goods sold (Product costs) (up to COGM level) CO - +FI COGM Admin & SD Exp. (Both –costing based and account based)We are going to MAP:PR00 =VV010VPRS=W140Product cost : BILFG1Cost sheet: BILFGRaw materials xxxRaw material overheads xxxProduction costs xxx ----- Production valuation will be at COGM level or COGM+ admin exp. LevelCost of goods manufactured xxx(COGM)Administration xxxSales & Distribution xxx -----Cost of goods sold (COGS) xxx 120
    • In client 800 –for company code 10001 controlling area -1000 operating concern IDEAIn IDEA –All SD condition types and equivalent CO-PA value fieldsWe check IDEA and do customization the same way for our operating concern alsoIDEA is a references to all the CO consultantsCUSTOMIZATION :Maintain operating concernPath :SPRO-Controlling –Profitability analysis –Structures –Define operating concern–Maintain operating concern (Tr code is KEA0)Give the operating concern :BIL1 (It is a text field)Select create buttonIgnore the warning message press enterDescription :Operating concern for BILSelect costing based check boxSelect account based check boxselect attributes taboperating concern currency INRselect company code currency check boxfiscal year variant :V3saveselect data structure tabselect create button under data structureselect KMVTNR sales employeeselect left arrowselect value fields tabselect VV010 revenueselect VV140 cost of goods sold 121
    • select left arrowselect save buttonfrom the menu select data structure savefrom the menu select data structure activateSelect back arrowSelect yes button for the message to generate the operating concern environment.Ignore the message press enterSaveDefine profitability segment characteristics (Segment –level characteristics)Path: Up to structures the path is same -Define profitability segment Characteristics(Tr code is KEQ3)Give the operating concern :BIL1EnterFor product and customerSelect costing base and account base radio buttonSavePress enter to save in your requestAssign controlling area to operating concern:Path :SPRO-Enterprise structure –Assignment –Controlling –Assign controlling areato operating concern.Select position buttonGive the controlling area :BILEnterFor controlling area :BILAssign operating concern :BIL1SavePress enter to save in your requestDefine no.range for actual postings 122
    • Path :SPRO-Controlling –Profitability analysis –Flows of actual values –Initial steps –Define no.range for actual postings (Tr code is KEN1)Operating concern :BIL1Select maintain groups buttonSelect generated groups check boxFrom the menu select interval maintainSelect interval buttonFrom no. 1To no. :9999999999 (10 times)SaveIgnore the message press enterMaintain assignment of SD conditions to CO-PA value fields:Path :Up to flows of actual values the path is same –Transfer of billing documents –Assign value fields .(TR code is KE4I)Double click on maintain assignment of SD conditions to CO-PA value fieldsSelect new entries buttonOpen one more session with SPRO-Controlling-Profitability analysis –Structures –Setoperating concernGive the operating concernSelect operating concern :IDEAEnterUser the Tr code is KE4ICome to the first sessionCondition type :PR00Value field :VV010 (Revenues)Condition type :VPRS (cost)Value field :VV140 (Cost of goods/ Sold)SavePress enter to save in your requestNotes :Direct posting from FI/MM 123
    • PR00 price :VV010 RevenuesScrap sales/waste sales –Posting only in FI, only FI-No Co account base , if we postmanually in FIIf we post directly in FI-for account no.300000-399999 up date VV010 revenuesVPRS costs :VV140 cost of goods soldIf we post directly in FI for account no.400000-499999 up date VV140 cost of goods soldUp to flows of actual value the path is same(Through path )Direct posting from FI/MM:Maintain PA transfer structure for direct postingsTr code is KEI2Select structure FI (Financial accounting COPA)Double click assignment lines folderGive the controlling area :BILEnterEnter once againSelect assignment :20 (Direct revenues from FI)Double click on source folderFrom :300000To :399999Double click on value fields folderSelect new entries buttonQuality /value :Select value filedFixed /variable :Select 1 fixed amountsValue field :select VV010SavePress enter to save in your requestDouble click on assignment lines folderAssignment select :10 Direct cost from FIDouble click on source folderFrom :400000 124
    • To :499999Double click on value fields folderSelect new entries buttonQuantity /value :select value fieldFixed /variable :select 1 fixed amountValue field :VV140SaveActivate profitability analysisPath :Up to flows of actual values the path is same Activate profitability analysis(KEKE)Select position buttonGive the controlling area :BILEnterFor controlling area :BILActivate status :select 4 (component activate for both types of profitability analysis)Save, press enter to save in your requestSD END USER AREA1. Creation of sales orderPath: Logistics –Sales and Distribution – Sales –Order –Create (Tr code is VA01)Order type :select OR (Standard Order)Sales organization :BILSDistribution Channel :BDDivision :BSEnterSold to party :200101P.O.No. :1P.O.Date :To days dateRequired delivery date :Today’s date 125
    • Delivery plant :BILPPayment terms :0001Item :10Material :BILFGOrder quantity :10 kgEnterIgnore the message press enterSelect item :10From the menu select Goto Item ConditionsSelect shipping tabFrom the menu select Edit in complication logWe get a message document is complete ,no errorsSelect save button or Ctrl+SNote the order no.11764Production receipt :There are two types of production receipt.1. Production receipt without production order 2. Production receipt with production orderMVT Type:521 MVT Type:101Path :Logistics –Materials Management –Inventory management –Goods movement –Goods -receipt –Other (Tr code is MB1C)Moment type :521 (Receipt w/o production order into unrest –use stock)Plant :BILPStorage location :HYDEnterGive the material :BILFGQuantity :50SaveIgnore the warning message press enterNote : Check it GL A/c 200122 Inventory, select automatic posting check box 126
    • From the menu select other goods receipts Display-EnterSelect accounting documents buttonSelect accounting document no. BSX200122 Inventory FG 20000 BILFG BIL2 GBB300200 INC/DEC in stocks FG 20000-BILFG BIL2 ZOFQty *Standard Price50*400Delivery:Path : Logistics –Sales & Distribution –Sales –Order –Sub request functions –Outbound delivery (Tr code is VL01N)Shipping post :BILHGive the order no. :11764EnterActual goods issue date :Today’s dateSelect item :10Select picking tabPicked quantity :10Select post goods issue buttonFrom the menu select outbound delivery displayEnterFrom the menu select Environment Document flow keep the cursor on goods issuedelivery document no. (down side in document column)Select display document buttonSelect accounting documents buttonSelect accounting document no.Double click on accounting document no.200122 Inventory FG 4000-BILFG BSX is assign this A/c BIL2300200 INC/DEC in stocks FG 4000 BILFG GBB VAY assigned to BIL2Qty delivered *Standard price10*400 127
    • Sales billingPath :Up to sub sequent functions the path is same –Billing document(Tr code isVF01)(Through path)Select Delivery document no.ExecuteSaveFrom the menu select Billing document-Display-Select accounting buttonDouble click on accounting document no.200100 DLF Industries Limited 6000 customer no.is taken from sales order300005 Sales local own goods 6000-ERLQty sold *Sale price10*600 REPORT PAINTERReport to view customer wise/product wise /Sales organization wise /plant wiseprofitabilityDefine forms for profitability reports :Path :SPRO-Controlling –Profitability analysis –Information system –reportcomponents –Define forms –Define forms for profitability reports-(The Tr code isKE34)Double click on creation FormGive the operation concern form :AMLForm description : From AML profitabilitySelect two axes (matrix) radio buttonSelect create buttonSelect operating concern currency radio buttonEnterDouble click on row 1Select value field with characteristics radio buttonEnterValue field select VV010 – RevenueSelect confirm button 128
    • Double click on row 2Select value field with characteristics radio buttonEnterValue field select VV140 –cost of goods soldSelect confirm buttonDouble click on row 3Select formula radio buttonEnterSelect Y001Select minus buttonSelect Y002 cost of goods soldEnterShort text Net profitSelect copy short text buttonEnterDouble click on column 1Select characteristics radio buttonEnterSelect plant /Actual indicator for available characteristicsSelect left arrowFor plant /actual indicatorFrom :Select 0 actual dataSelect confirm buttonSaveFrom the menu select Edit-General data selectionOnce again general data selectionFrom the available characteristics columnSelect record type, period /yearSelect left arrowFor record typeFor form column :Select B direct posting from FI 129
    • For To column :Select F billing dataFor period /year : For from column :Select variable on /off check boxLocal variable :Enter 1Press enterFor to column select variable on/off check boxLocal variable :2EnterSelect confirm buttonFrom the select Extras –variables –variable definitionFor name 1 : Give the description from period /yearFor name 2 Description :To period /yearEnter & saveCreate profitability report:Same pathDouble click on crate profitability reportTr code is KE31Give the report :BILREPORT ( This is a text field)Description :BIL Profitability ReportSelect report with from radio buttonGive the form name :BIL1Select create buttonSelect operating concert currency radio buttonFrom the characteristics list :Select customer /plant /product ,Sales organizationSelect left arrowSelect output type tabSelect classic drill down radio buttonSelect available on selection screen check boxSaveIgnore the message press enterSelect execute button 130
    • Form period/year :01.2008To period /Year :12.2008ExecuteIgnore the message select press enterTo view product wise profitability from the menu select navigate-with drill downDouble click on productThis called date cube PRODUCT COSTINGThis is used for valuation of inventories i.e. Finished goods and Work in progressPP ModuleMM Module |FI Module | Product costingCO Module |Note: SAP lab :Product costing made easy BPB publication –Not covered product costing Crate a cost estimate with quantity structureCost element with quantity structureAt standard cost In the month end we get actual cost Variable will be settled to accountsHow standard cost will be arrived at :Sales budget for next month Production budget Material requirement Planning | |(Make to orders (confirmed orders) (This is same men budget) +And make to stock (expected orders)) Overhead planning = Standard costCost sheet for the product BILFG1Raw materials xxRaw material overheads xxProduction costs xxCost of goods manufactured (COGM) xxAdministration Expenses xxSales & Distribution exp. xx ----Cost of goods sold (COGS) xxTo check with client at what level he wants to value stocks 131
    • At COGM level or At COGM +Admin levelRaw material standard costFor each product –we find out materials requiredFor BILFG1 We required BILRM1 BILRM2MM Module :Material MasterAccounting view –moving average priceBIL RM1 75BILRM2 125PP Module: Bill of Material (BOM)To produce BILFG1 what materials are required and how much quantityBILRM1 1KgBILRM2 1KgRaw material standard cost =Quantityfrom BOM (PP)*Rate from Material Master (MM)(1*75)+1*125)=200Raw material overheadsOverheads like freight charges :At the time of receipt it will be added to material –At thetime of consumption the material cost includes freight also.Overhead like loading and unloading normal amounts change directly to P & L accountclients will tell us-how much percentage can be taken on raw material cost(consumption.) 5% of raw material costsEg: 250*5%=12.5Production costs:Cost centers in PP Module :Work centers Dept A Dept B Dept C Dept D Dept A Dept B Dept C Dept DRaw material Issue Issue Issue finished productAll products need not go through all the DepartmentsProcess flow for each product in PP module we call as routing.PP Module: Routing (Process flow) Dept A Dept B Dept D 132
    • Raw material Issue Issue Finished productWages 300000Salaries 100000Power 320000 -------Planned cost 720000 =====Planned hours availableMachines 100 working for 3 shifts (24 Hours )No.of days 30 Days 100*30*24=72000Machine hour rate 720000/72000=10 Rs(Activity type)To Produce BILFG1Hours required 5HrsProduction cost 10*5=50Production cost : (Hours required in Dept A * Machine hour rate)+(Hours required inDept B* Machine hour rate )+ (Hours required in Dept D * Machine hour rate)Example :Why can’t we allocate based on production Production Qty Hrs Req CostBILFG1 999 Kgs 1BILFG2 1 Kg 999 ------ ----- 1000 1000 720000If we allocate cost based on productionBILFG1 720000*999/1000=719280BILFG2 720000*1/1000= 720 -------- 720000 ======If we allocate cost based on hours requiredBILFG1 720000*1/1000 =720BILFG2 720000*999/1000 =719280 ----------- 720000 ========ACTIVITY BASED COSTING 133
    • Co –Consultants job: 1. Creation of 2 secondary cost elements (Use Tr.code is KA06) A) RM overhead rate B) Activity allocationGive the cost element 1200000Valid from 01.04.2008 to 31.12.9999EnterGive the name and description :RM Overhead rateCost element category : Select 41 overhead ratesSaveCost element :1200001EnterName and description :Activity allocationCost element category :select 43 Interval activity allocationSaveCreation of activity type –Machine hour:Path :Accounting –Controlling –cost Center accounting –Master data –Activity type-Individual processing –create (Transaction code KL01)Activity type :BILValid from :01.04.2008 to 31.12.9999EnterGive the Name & Description :Machine hourActivity unit :select HCost center categories :Select * (All cost center categories)Active type category :select 1 (Manual entry , Manual allocation)Allocation cost element :1200001SaveCreation of cost centers: (Tr.code is KS01) 134
    • Give the cost center :Dept GValid from : 01.04.2008 to 31.12.9999Reference cost center :Dept AControlling area :BILEnterChange the name to Dept GChange the description to cost center :Dept GPerson responsible :MrGOther things are commonSelect save buttonCost center :Dept HReference cost center :Dept AControlling area :BILEnterChange the name to Dept HChange the description to cost center:Dept HChange person responsible to Mr.HCost center category :select 9( Allocation cost center)SaveCreate of cost center group (Tr code is KSH1)Give the cost center group :BILPRODEnterDescription :BIL Production cost center groupSelect insert cost center buttonSelect cost center Dept GSaveDefine overhead keys: 135
    • Path :SPRO-Controlling –Product cost controlling –Product cost planning basicsettings for material costing - overheads-Define overhead keysSelect new entriesOverhead key :BIL1Description :BIL Overhead keySavePress enter to save in your requestDefine overhead groupsSame pathSelect new entries buttonValuation area :BILPOverhead group :BIL1Overhead key :BIL1Name of overhead group :BIL over head groupSavePress enter to save in your requestNote:Overhead rate will be given to overhead keyOverhead key will be assigned to overhead groupOverhead group will be specified in material masterDefine calculation basisPath :SPRO-Controlling- Product cost controlling –Product cost planning-Basicsetting for material costing –Over head –costing sheet components –Define calculationbasesSelect new entries buttonBase :D1 (Text filed)Name :Raw materialsBase :D2Name :Production cost 136
    • SavePress enter to save in your requestSelect D1 double click on details folderControlling area :BILEnterSelect new entries buttonFrom cost element :400000To cost element :400099 RM consumptionSaveSelect back arrow two timesSelect base D2 Production costDouble click on details folderControlling area :BILEnterSelect new entries buttonFrom cost element :400100To cost element :400299 Personnel & Manufacturing groupFrom cost element :400500To cost element :400599 Depreciation a/cFrom cost element :1200001 Activity allocationTo cost element :1200001SaveDefine percentage overhead rates:Same pathSelect new entries buttonOverhead rate :D3Name :RM overhead rate 137
    • Dependency :Select D010 Overhead type/Overhead keySavePress enter to save in your requestSelect D3Double click on details folderIgnore the warning message press enterSelect new entries buttonValid from To Controlling area Overhead type Overhead key Percentage01.04.2008 31.03.2009 BIL Select 2 BIL1 5 (Planned overhead rate) RM key01.04.2008 31.03.2009 BIL 1 (Actual overhead rate) BIL1 10Select save button or Ctrl+SPress enter to save in your requestDefine CreditsSame pathSelect new entries buttonCredit :D4Name :BIL RM credit keySavePress enter to save in your requestSelect :D4Double click on details folderControlling area :BILEnterSelect new entries buttonValid to :31.03.2009Cost element :1200000 RM overhead rateFixed percentage :100% 138
    • Cost center :Dept H (Allocation cost center)SaveActual over head rate 10%Credit key D4 -1100000 Cost Dept. 1. RM1 Purchase/Receipt (Freight including) Inventory RM local DR 600000 To GR/IR clearing RM local 600000 2. Loading & Unloading charges Loading & Unloading charges Dr 7000 Dept H To Bank 7000 3. RM 2 Purchase Inventory RM local DR 300000 To GR/IR clearing RM local 300000 4. Loading & Unloading charges for RM 2 Lodging & unloading charges DR 3000 To Bank 3000 5. RM Consumption for production Order 1-RM1 and RM2 RM consumption local DR 40000 Order 1 RM Consumption local DR 20000 Order 1 To Inventory RM local 40000 To Inventories RM local 20000 6. RM consumption for production order 2 RM-1 and RM2 RM consumption local DR 10000 Order 2 RM Consumption local DR 30000 Order 2 To inventory RM local 10000 To Inventory RM local 30000 In the month end RM material consumption 100000 Lodging & Unloading charges 10000 139
    • % on consumption 10% actual overhead rate Cost center Dept H (Allocation cost center)Loading & Unloading for RM1 7000 DR Order 1 6000 DRLoading & Unloading for RM2 3000 DR Order 2 4000CR H Value will be zero Order 1 Order2RM Consumption 60000 40000RM overhead rate 6000 4000(Actual 10%) ----- ----- 66000 44000 ===== =====Indirectly we are allocating cost center Dept H values to production orders basedon the consumption values.Define costing sheets:Path :Up to overhead the path is same- Define costing sheetsSelect new entries buttonCosting sheet :BILDescription :BIL Costing SheetSavePress enter to save in your requestSelect :BILDouble click on costing sheet rows folderSelect new entries buttonRow Base Overhead Description10 D1 Raw materials20 400000-400099 D3 RM Overhead rateFrom :10To Row :10 140
    • Credit :D4 Row :30 Base :D2 Description :Product cost Row :40 Description :Cost goods manufacturer From :10 To row :30 SaveAssign costing sheet to plant :Path :SPRO-Controlling –Product cost controlling –Product cost planning –Materialcost estimate with quantity structure- Define costing variants (TR code is OKKN)Select position buttonCost variant :Select PPC1 standard cost estimate (Materials)EnterSelect PPC1Select details buttonSelect valuation variant buttonSelect create beside valuation variant /plantSelect new entries buttonIn plant :BILPSavePress enter to save in your requestSelect back arrowSelect valuation variant :001 with plant BILPSelect details buttonSelect overhead tabGive the costing sheet :BIL costing sheet both in the placesSave 141
    • Define cost component structure:To know the break up of standard product costWhat is raw material cost?What is RM overhead cost ?What is production cost ?Path :SPRO-Controlling –Product cost Controlling –Product cost planning –Basicsettings for material costing –Define cost component structure . (OKTZ)Select cost component structure :01Double click on cost components with attributes folderSelect component structure :01 with cost component 10 raw materialsDouble click on assignment:Cost component –cost element interval folderSelect new entries buttonCost competent structure :01Chart of Accounts :BILFrom cost element :400000To cost element :400099Cost component :select 10 RMSaveIgnore the warning message press enterPress enter to save in your requestSelect back arrowDouble click on cost components with attributes folderSelect cost component structure 01 with cost component 80 Material over headDouble click on assignment:Cost component cost element –Interval folderSelect new entries buttonCost component structure :01Chat of Accounts :BILFrom cost element :1200000 RM overheadCost component :80 Material overheadSavePress enter to save in your request 142
    • Double click on cost components with attributes folderSelect cost component structure :01 with lost component 50 production machineDouble click on assignment cost component –cost element interval folderSelect new entries buttonCost component structure :01Chat of Accounts :BILFrom cost element :400100To cost element :400299Cost component :select 50 production machineOne moreCost component structure :01Chat of Accounts :BILFrom cost center :400500To cost center :400599Cost component :50One moreCost component structure :01Chat of Accounts :BILFrom cost element :1200001Cost component :50SaveDouble click on cost component structure folderFor cost component structure 01 select active check boxSaveFor cost component structure assignment structure 02 also for cost componentNote: The above procedure is to be followed to 02 alsoPP CONSULTANT JOB:Define MRP controller 143
    • Path :SPRO-Production –material requirements Planning –Master data-Define –MRPcontrollersSelect new entries buttonPlant :BILPMRP controller :Mr.ASavePress enter to save in your requestNotes:Define floats (Scheduling margin key)Floats –Buffer days or grace days 2 days grace daysProduction order creation 08.12.2008 10.12.2008Production order release 10.12.2008 12.12.2008Production start date 11.12.2008 13.12.2008Production end date 15.12.2008 17.12.2008Path :SPRO-Production –Material requirements planning –Planning –Scheduling andcapacity parameters –Define floats (Scheduling margin key)Select new entries buttonPlant :BILPMargin key :BILOpening period :2 daysFloat before production :2 daysFloat after production :2 daysRelease period :2 daysSavePress enter to save in your requestDefine production schedulerPath :SPRO-Production-Shop floor control- Master data-Define production schedulerSelect new entries buttonPlant :BILPProduction scheduler :B 144
    • Description :Mr.BSavePress enter to save in your requestDetermine person responsible for work centerPath :SPRO-Production –Basic data –Work center –General data –Determinationperson responsibleSelect new entries buttonPlant :BILPResponsible person : Mr.CPerson responsible for work center :Mr.CSavePress enter to save in your requestCO END USER AREA:Planning cost center wise (KP06)Version :0From period :9 (December)To period :9 (December)Fiscal year :2008Give the cost center :Dept GSelect page down button or next page buttonCost element :400100 Salaries A/cSelect from based radio buttonSelect overview screen button (F5)For 400100 Plant fixed cost :720000SavePlanning for machine hoursPath :Accounting –Controlling –Cost center accounting –Planning-Activity output/Prices-Change (KP26)Version :0From period :9 145
    • To period :9Fiscal year :2008Select next page or page down buttonCost center :Dept GActivity type :BILSelect form based radio buttonSelect overview screen buttonPlant activity :72000Savecalculation of Machine hour ratePath :Up to planning the path is same – Allocations –Price calculation (KSPI)Select cost center group radio buttonCost center group select :BILPRODExecuteSelect save buttonIgnore the message press enterMM END USER AREACreation of material master (MM01)A) Raw material 2B) Finished product 1Give the material :BILRM2Industry sector :Mechanical EngineeringMaterial type :Raw materialPress select view buttonSelect basic data1 :Select purchasing Select general plant data /storage /AccountingSelect organization levels buttonPlant :BILPStorage location :HyderabadEnter 146
    • Give the description :Raw material 2Base unit of measurement :KGMaterial group :BILCDivision :BSSelect purchasing tabPurchasing group :BILSelect accounting 1 tabValuation class :BIL1 RM LocalPrice control :select V movingMoving price :150SaveOne more material :BILFG1Industry section :Mechanical engineeringMaterial type :Finished productPress select view buttonSelect basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1,accounting , Costing 1Select organizational levels button /enterEnterPlant :BILPStorage location :HyderabadEnterDescription :Finished product 1Base unit measurement :KGDivision :BSSelect MRP1 tabMRP type :select PD (MRP)MRP controller :ALot size :select EX lot for –lot order quantity 147
    • Select MRP 2 tabIn –house production :0 daysSchedule margin key :select BILSelect MPR 3 tabIgnore the warning message press enterAvailability check :select KP (no check )Select work scheduling tabProduction scheduler :BSelect accounting tabValuation class :BIL2 Finished productsPrice control :S (Standard price)Standard price :300Select costing one tabOverhead group :select BIL1SaveNote :BOM=Bill of MaterialPP END USER AREACreation of Bill of MaterialPath :Logistics –Production –Master data –Bills of material –Bill of material –Material BOM –Create (CS01)Give the material :BILFG1Plant :BILPBOM usage :select 1 productionEnterFor item :10Give the component :BILRM1Quantity :1Item :20Give the plant :BILRM2 148
    • Quantity :1SaveCreation of work centerPath :Up to mater data the path is same –Work centers –then work centers-create(CR01)Plant :BILPWork center :Dept GWork center category :select 0001 MachineSelect basic data buttonGive the description :Dept GPerson responsible :Mr.CUsage :009Under standard value maintenanceStandard value key :SAP1 Normal productionSelect costing tabStart date :01.04.2008Cost center :Dept GFor machine activity :Give activity type BILActivity unit :H (Hour)Formula key :SAP002 (Production machine time)SaveCreation of routingsPath :Up to master data the path is same –Routings –Routings –Standard routings –Create (Tr code is CA01)Give the material :BILFG1Plant :BILPEnterUsage :select 1 productionStatus ;select 4 (released (general)) 149
    • Select operation buttonFor operation 10 give the work center :Dept GControl key :select PP01 in hour productionDouble click on operation :10Machine standard value :5Unit :H (Hour)SaveNote: Routing is process flow as a department wiseCO –END USER AREACreation of cost estimate with quantity structure:Path :Accounting –Controlling –Product cost controlling –Product cost planning-Material costing –cost estimate with quantity structure –Create (Tr code is CK11N)Give the material :BILFG1Plant :BILPCosting variant :select PPC1 (standard cost estimate for material )EnterCosting date from :Today’s dateNote :In live environment next month first day date, this is planning date, In traininginstitution use today’s dateCosting date to :31.12.9999Quantity structure date :08.12.2008Valuation date :08.12.2008EnterCost sheetRaw materialsBIL RM1 1 Kg 75BILRM2 1Kg 150 225RM overhead cost -5% 11Production costs 5*10 50Machine hours 5 Hrs 150
    • Machine hour rate 10Rs ----- 286From the menu select Costs –>Display cost componentsSelect save button or Ctrl+SEnterMarking and releasingDisplay material masterPath :Logistics –Materials management –Material master-Material –Display –Displaycurrent (MM03)Material :BILFG1Press select views buttonSelect costing 2 viewEnterPlant :BILPEnterA) Marking and releasingDisplay material master1. Making updates future price in live environment on 21st February create estimate forMarch and store in the System.2. Realizing updates current price on 1st of March release stock valuation will be at thenew rate from 1st of MarchB) Marking and releasing :Path :Accounting –Controlling –Product cost controlling –Product cost planning –material costing –Price update (CK24)Posting period :9Fiscal year :2008Company code :BILPlant :BILPMaterial :BILFG1Select test run check boxSelect marking allowance button 151
    • Select company code :BILCosting variant :select PPC1 (Standard cost estimate for materials)SaveSelect back arrowDeselect test run check boxExecuteSelect material :BILFG1Select costing to tabSelect back arrow two timesSelect release buttonExecuteSelect material :BILFG1Select costing to tab ACTUAL COSTINGCO consultant JobCheck costing variants for Manufacturing orders (PP)Path :SPRO-Controlling –Product cost controlling -Cost object controlling –productcost by order –Manufacturing orders –Check costing variants for manufacturingorders(PP) (Tr.code is 0PL1)Select costing variant PPP1 Production order planSelect details buttonSelect valuation variant buttonSelect create button beside valuation variant /plantSelect new entries buttonIn plant :BILPSavePress enter to save in your request 152
    • Select back arrowSelect valuation variant :006 with plant BILPSelect details buttonSelect overhead tabGive the costing sheet :BIL costing sheetSaveSelect back arrowSelect costing variant PPP2 production Order ActualSelect details buttonSelect valuation variant buttonSelect create beside valuation variant/plantSelect new entries buttonIn plant :BILPSavePress enter to save in your requestSelect back arrowSelect valuation variant 007 with plant :BILPSelect details buttonSelect overhead tabCosting sheet :select BIL costing sheetSaveDefine goods received valuation for order delivery:Same pathSelect new entries buttonValuation area :BILPValuation variant :007 production order -ActualSavePress enter to save in your requestWork in process customizationCreation of 5 secondary cost elements (Tr code is KA06)Give the cost element :1100000 153
    • Valid from :01.04.2008 to 31.12.9999EnterName & Description :Order /Project result analysisCost element category :select 31 (order /project results analysis)SaveCost element :1100001Reference cost element :1100000Controlling area :BILEnter & SaveCost element :1100002Reference cost element :1100000Controlling area :BILEnter & SaveCost element :1100003Reference cost element :1100000Controlling area :BILEnter & SaveCost element :1100004Reference cost element :1100000Controlling area :BILEnterSaveDefine results analysis keysPath :SPRO-Controlling –Product cost controlling –Cost object controlling –Productcost by order –Period end closing –Work in process –Define results-Analysis keys (Trcode is OKG1)Result analysis key :FERT WIP calculation for production ordersDefine results analysis versions(Tr code OKG9)Same path 154
    • Select new entries buttonSelect controlling area :BILTechnical result analysis cost element :select 1100000SavePress enter to save in your requestDefine valuation method (Actual cost) ( Tr code is OKGC)Same pathSelect new entries buttonSelect actual cost buttonControlling area :BILResult analysis version :0Result analysis key :FERTEnter & SavePress enter to save in your requestDefine line Id’sSame pathPurchase of to get the break up of WIP (Work In Progress)valueSelect line ID EL (Revenues) EK Direct cost FK Production cost ABR settled cost for controlling area 1000Select copy as button (F6)Change the controlling area to BIL for all line ID’sEnter & SavePress enter to save in your requestDefine Assignment (OKGB)Same pathSelect line ID EL that is revenues for controlling area :1000Select copy as buttonChange the controlling area to BIL 155
    • Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999)Enter & SavePress enter to save in your requestSelect line ID :EK Direct cost for controlling area 1000Select copy as buttonChange the controlling area to BILChange mass cost element to 00004000++Enter and saveSelect line ID FK that is production cost for controlling area 1000Select copy as buttonChange the controlling area to BILProduction cost elements:400100 -400199 Personnel 00004001++400200-400299 Manufacturing 00004002++400500-400599 Depreciation 00004005++1200001 Activity allocation 00012+++++Change master key cost element to 00004001Enter & SaveNotes: for define assignment line ID brak up of WIP Dept A Dept B ept CIssue RM work in progressRM over headProduction costs 100000 200000Calculate internally WIP by using secondary cost elements and transfer to financialaccounting require the break up of WIP by using line ID’s and account assignments toline ID’s.Select line ID FK production cost for controlling area BILSelect copy as buttonChange the mass cost element to 00004002++Enter & Save 156
    • Select 2FK line ID’s for controlling area BILSelect copy as button –Change masked cost element from first line ID 00004005++ Change to 00012+++++Enter & saveSelect bank arrowSelect line ID ABR Settled cost for controlling area 1000Select copy as buttonChange the controlling area to BILChange mass cost element to 0001000001 :(settlement cost element)Enter & saveDefine update; (Tr.code is OKGA)Same pathSelect new entries buttonControlling area :BILVersion :0Result analysis key :FERTLine ID :select EL revenuesCategory :select N (costs not to be included)Controlling area :BILVersion :0Result analysis key :FERTLine ID :Select EK (Direct cost)Category :select K costWIP :1100001Revenues :1100002Controlling area :BILVersion :0Revenues analysis key :FERTLine ID :FK production cost 157
    • Category :select K costWIP creation :1100003Reserves creation :1100004Select page down buttonOne more controlling area :BILVersion :0Result analysis key :FERTLine ID :ABR settled costCategory :select A (Settled cost )SavePress enter to save in your requestCreation of two GL Masters:WIP entryWork in process DR BS CA(Current assets, Loans & Advances) To Increase /Decrease in WIP P&L Credit INC/DEC in stocksFS00Give the GL Account no. :200123Company code :BILSelect with template buttonGive the GL A/c No.200121 INV RM localCompany code :BILEnterChange short text to and GL A/c long text to work in processOther fields are commonSaveGL A/c No.300201Company code :BIL 158
    • Select with template buttonGive the GL A/c no.300200 Increase /Decrease stocks FGCompany code :BILEnterChange short text and GL A/c loge text to INC/DEC stocks – WIP (Work in Progress)SaveDefine posting result for setting work in processPath :Up to period end closing the path is same –Work in process –Define postingresults for setting work in process (OKG8)Select new entries buttonControlling area :BILCompany code :BILResult analysis version :select 0Result analysis category :WIPR (Work in Process with requirement to Capitalized)P & L A/c :300201Balance sheet :200123SavePress enter to save in your requestDefine results analysis version (OKG9)Same pathSelect controlling area :BILselect details buttonSelect transfer to Financial accounting check boxSaveIgnore the warning message press enterPress enter to save in your requestRM issue overhead production costs Dept A Dept B Dept D FG not receivedSettle to accounts by using secondary costs elements break up WIP (BY using line IDs) 159
    • Define variance keys:Path :Up to period end closing the path is same –Variance calculation :Definevariance keys (OKV1)Select variance key 00001 Production orderSelect copy as buttonChange the variance key to BIL1Change the name also variance key for BILEnter & SaveDefine default variance keys for plants (OKVW)Same pathSelect position buttonGive the plant :BILPEnterFor plant :BILPAssign variance key :BIL1SavePress enter to save in your requestDefine target cost version: (OKV6)Notes:Budgeted cost =Budgeted production Qty * Standard priceStandard cost =Standard quantity * Standard priceTarget cost =Actual production qty * standard priceActual cost =Actual Production * actual pricePath :Same pathSelect controlling area 1000 with target cost version 0Select copy as buttonChange the controlling area to BILChange the description to target cost version for BILEnter & Save 160
    • Press enter to save in your requestAssign variance key in Material masterPath :Logistics –Material management-Material master –Material –Change –Immediately (MM02)Give the material no.BILFG1Press select views buttonSelect costing 1 viewEnterGive the plant :BILPEnterVariance key :select BIL1SaveCreation of cost element group (KAH1)Give the cost element group :BILPRODNEnterDescription :Production cost element for BILSelect Edit-Cost element -Select insert cost element button400100 400299 Personnel & Manufacturing400500 400599 Depreciation1200001 Activity allocationSaveCreate allocation structure:Path :SPRO-Controlling –Product cost controlling- Cost object controlling –Productcost by order-Period end closing –Settlement –create allocation structureSelect new entries buttonAllocation structure :B2Text :BIL Production differences allocation structureSavePress enter to save in your request 161
    • Select :B2Double click on assignments folderSelect new entries buttonAssignment Text01 Direct costs(Raw materials)02 Material overheads03 Production costsSaveSelect assignment 01Double click on source folderFrom cost element :400000To cost element :400099Double click settlement cost elements folderSelect new entries buttonReceiver category :select G/L, GL accountSelect by cost element check boxSaveDouble click on assignments folderSelect assignment 02 Material overheadsDouble click on source folderFrom cost element :1200000 RM overhead rateDouble click on settlement cost elements folderSelect new entries buttonReceiver category :select G/L , GL AccountSelect by cost element check boxSaveDouble click on assignment folderSelect assignment 03 production costDouble click on source folder 162
    • Give the cost element group :BILPRODNsaveDouble click on settlements cost elements folderSelect new entries buttonReceiver category :select G/LSelect by cost element check boxSaveCreate settlement profile:Same pathSelect new entries buttonSettlement profile :BILDescription :BIL production order differences settlement profileSelect to be settled in full radio buttonAllocation structure :B2Default object type :select G/LSelect % settlement check boxSelect equivalence number check boxSelect amount settlement check boxUnder valid receivers for GL account :Select settlement requiredDocument type :SAMaximum no.of distribution rules :999Residence time :12 monthsSavePress enter to save in your requestDefine CO.No.range interval for the business transactionsRKL -Actual Activity AllocationKZPI- Actual overhead (Periodic)User transactions code :KANK 163
    • Give the controlling area :BILSelect maintain groups buttonDouble click on RKLDouble click on KZPISelect Co. No. range interval for BIL check boxFrom the menu select –Edit –Assign element groupSaveIgnore the warning message press enterDefine exchange rate for type P (Standard truncation for cost planning for INR toEURO(Transactions code OB08)Select new entries buttonExchange rate type :PValid from :01.12.2008From currency :INRTo currency :EURDirect quotation :0.02SavePress enter to save in your requestFI Consultant jobBILRM2 receiptPurchase order Opening stock|GR|IVInventory RM local DR BSX To Stock taking GBB BSA Current liability & provisionProduction order differences are to be settled to accountsProduction order differences manufacturing DR PRD To INC/DEC in stocks FG GBB AUACreation of 2 GL masters (FS00) 164
    • Give the GL A/c No.400201Company code :BILSelect with template buttonGive the GL A/c No. :400200 Conversion chargesCompany code :BILChange short text and GL account long text to production order differencesSelect create /bank/Interest tabField status group change to G014 MM adjustment accountSaveGL A/c No. :100599Company code :BILSelect with template buttonGive the GL A/c No.100500 VAT payableCompany code :BILEnterSelect type /Description tabChang short text and GL account long text to Stock takingSelect create /bank /interest tabChange the field status group G049 (manufacturing cost accounts)SaveGive the GL account no.300200 INC/DEC stock in FGCompany code :BILSelect edit cost element buttonValid from :01.04.2008 to 31.12.9999EnterCost element category :select 22 external settlementSaveAssignment of account for automatic postings (OBYC)(See the material )Double click on transaction PRD Cost (Price) differences 165
    • Give the Chart of Accounts :BILEnterSaveGive A/c No.400201 production order differencesSavePress enter to save in your requestSelect back arrowDouble click on GBB offsetting entry for inventory postingValuation modifier :XGeneral modification :BSA opening stock takingValuation class :BIL1Account no. :100599 stock taking accountValuation modifier :XGeneral modification :AUA productionValuation class :BILLAccount :300200SavePress enter to save in your requestPP CONSULTANTS AREADefine order type –Dependent parametersPath :SPRO-Production –Shop floor control-Master data –Order-Define order typedependent parameters. (Tr code is OPL8)Select plant :1000 with order type PP01Select copy as buttonChange the pant to BILPEnter and SavePress enter to save in your requestDefine scheduling parameters for production orders 166
    • Path :Up to Shop floor control the path is same- Operations-Scheduling –Definescheduling parameters for production orders (Tr code is OPU3)Select plant :1000 with order type PP01Select copy as buttonChange the plant to BILPEnter and savePress enter to save in your requestDefine confirmation parametersPath :Up to shop floor control the path is same –Operations-Confirmation-Defineconfirmation parameters (OPK4)Select plant 1000 with order type PP01Select copy as buttonChange the plant to BILPEnter and SavePress enter to save in your requestDefine checking controlPath :Up to shop floor control the path is same –Operations –Availability check –define checking control (OPJK)Select business function :1 & 2 for order type PP01 for plant 1000Select copy as buttonChange the plant to BILPEnterChange the plant to BILPEnter and savePress enter to save in your requestEND USER AREACreation of production order: 167
    • Path :Logistics –Production-Shop floor control-Order –Create –with material (Tr codeis CO01)Give the material :BILFG1Production plant :BILPPlanning plant :BILPOrder type :select PP01 Production orderEnterGive the total Qty under quantities :10Start date & end date :Today’s dateSelect cost order button (Ctrl+F7)From the menu select Goto Costs –AnalysisSelect back arrowSelect release order button (Ctrl+F1)SaveFrom the menu select order display note the order no.60003225EnterSelect assignment tabNot to the reservation no.66076Raw material receipt by way of opening stockPath :Logistics –Materials management –Inventory management –goods movement –Goods receipt –Other (Tr code is MBIC)Give the movement type :561Plant :BILPstorage location :HYDEnterGive the material no. :BILRM2Quantity :100 kgsSelect save button or Ctrl+SFrom the menu select other goods receipts displayEnterSelect accounting documents button 168
    • 200121 Inventory RM LCL 15000 BILRM2 BIL1 BSX100599 Stock taking 15000 BILRM2 GBB BSA BIL1 100*150Raw material issue to production order:(Tr code is MB1A)Select to reservation buttonGive the reservation no.66076Enter QtyBIL RM1 :15BIL RM2 :15SaveFrom the menu select goods issue displayEnterSelect accounting documents buttonSelect accounting document no.200121 Inventory RM local 1125 BILRM1 BSX BIL1400000 RM consumption local 1125 BILRM1 GBB VBR BIL1 Quantity consumed * Avg rate ( 15 *75)200121 Inventory RM local 2250 BILRM2 BSX BIL1 GBB VBR400000 RM consumption local 2250 BILRM2 BIL1 Qty consumed * Avg. rate (15*150)Actual overhead calculationPath :Accounting –Controlling –Product cost controlling –Cost object controlling –product cost by order –Period end closing –single functions –Overhead –Individualprocessing (Tr code is KGI2)Give the order no. :60003225Period :9Fiscal year :2008Select text check boxSelect dialog display check box 169
    • ExecuteSelect back arrowDeselect text run check boxExecuteWork in process calculationPath :up to single functions the path is same –Work in process –Individual processing–Calculate (Tr code is KKAX)Give the over no. :60003225WIP period :9Fiscal year :2008Result analysis version :select 0Select test run check boxExecuteSelect back arrowDeselect test run check boxExecuteSettlement of work in process to accounts(31.12.2008 (month end date)Path :Up to single functions the path is same –Settlement of individual processing (Trcode is K088)Give the order no. :60003225Settlement period :9Fiscal year :2008Deselect text run check boxSelect check transaction date check boxExecuteSelect detail lists buttonSelect accounting documents buttonSelect accounting document no. 170
    • 300201 INC/DEC in stock WIP 3713 P &L Account200123 Work in Process 3713 Balance Sheet(Actual RM +Actual RM overheads)To view work in process reportPath :Accounting –Controlling –Product cost controlling –Cost object controlling –Product cost by order –Information system –Reports for product cost by order –Objectlist –Order selection (Tr code is S_ALR_87013127)Plant :BILPMaterial number :BILFG1From period :01 2008To Period :9 2008ExecuteSelect report call buttonConfirmation of production orderPath :Logistics –Production –shop floor control –Confirmation –Enter-For operation –time ticket (Tr code is Co11N)Give the order no. :60003225Operation /Activity :10 kgConfirmation type :select final confirmationYield to confirm :10 kgFro activity 2 to confirm :60 QtyUnit :H (Hour)SaveProduction receiptPath :Logistics –Material management –Inventory management –Goods movement –Goods receipt for order (Tr code is MB31)Give document date :31.12.2008Posting date :31.12.2008Give the movement type :101 (Goods receipt for order into ware house) 171
    • Order :60003225Plant :BILPStorage location :HYDEnterIgnore the warning message press enterSelect save button or Ctrl+SFrom the menu select goods receipt displayDocument no.5000011861EnterSelect accounting documents buttonSelect accounting document no.200122 Inventory FG 2860 BILFG1 BSX BIL2 GBB AUF300200 INC/DEC in stocks FG 2860 BILFG1 BIL2 Qty produced * standard rate 10*286To make production order technically complete (TECO)Path :Logistics –Production –shop floor control –Order –Change (Tr code is CO02)Give the order no.60003225EnterFrom the menu select functions –Restrict processing –Technically completeSaveCalculation of variancesPath :Accounting –Controlling-Product cost controlling –Cost object controlling –Product cost by order - period ending closing –single functions- Variances –Individualprocessing (Tr code is KKS2)Give the order no.60003225Select execute buttonSelect back arrowDeselect text run check boxExecute 172
    • Double click on variance amountOpen one more session for order display (CO03)Give the order no.60003225EnterFrom the menu select go to cost analysisCalculation of work in process (KKAX)Path :Upto single functions same path –Work in Progress –Individual processing-CalculateWork in process for DecProduction for DecTo calculate WIP once again work in process will be reserved and variances will besettled to accountsGive the order no. :60003225WIP to Period :9Fiscal year :2008Result analysis version:0Deselect text run check boxExecuteSettlement of work in process to accounts :KO88Give the order no. :60003225Settlement period :9Fiscal year :2008Deselect test run check boxSelect check transaction date check boxExecuteSelect details list buttonSelect accounting documents buttonSelect accounting document no. GBB AUA 173
    • 300200 INC/DEC in stocks FG 853 BILFG1 BIL2400201 Production order diff 853 period300201 INC/DEC in stock WIP 3713 P & L debit200123 work in process 3713 –Balance sheet creditASSET ACCOUNTING AREACapital work in progress line item settlementMachine purchase Debit to CWIPMachine no.1501.12.2008 Commission 13/12/2008Freight charges 05.12.2008 settle from CWIP to respective assetCommissioning charges 12/12/2008Define settlement profile:Path :SPRO-Financial accounting –Asset accounting- Transactions-Capitalization ofassets under construction –Define /Assign settlement profiles (TR code is OKO7)Double click on define settlement profileSelect settlement profile AI Settlement assets under constructionSelect details buttonSelect to be settled in full radio buttonAllocation structure :select A1( CO allocation structure)Default object type :select FXA assetSelect % settlement check boxSelect equivalence numbers check boxSelect amount settlement check boxUnder valid reserves for fixed assets :Select settlement requiredDocument type :AA (Asset Posting)Max no. distribution rules :999Residence time :12 monthsSaveSelect back arrow two timesDouble click on assign settlement :Profile to company code 174
    • Select position buttonGive the company code :BILEnterFor company code BIL assign settlement profile AISavePress enter to save in your requestCreation of capital work in progress asset master (AS01)Give the asset class :BIL4000 capital work in progressCompany code :BILEnterDescription :CWIP –GeneralCapitalized on :01.12.2008Select time dependent tabBusiness area :BILHSelect depreciation areas tabDepreciation key :0000 (no depreciation)SaveNote down the asset no.500001-0Asset purchase posting (F-90)Give the doc .Date & Posting date :01.12.2008Type :KRCompany code :BILPosting key :31Vendor account :2001Give the amount :600000Business area :BILHText :Machinery purchase postingPosting key :70Account no. :500001-0 175
    • Transaction type :100 External acquisitionRemove the TDS codesEnterAmount :*Text :+Document –Simulate & SaveFreight payment (F-02)Give the Doc date & Posting date :15.12.2008Type :SACompany code :BILPosting key :70Account :500001-0Transaction type :100EnterGive the amount :10000Text :Freight paymentPosting key :50Account no. :200105 SBI current a/cEnterAmount :*Business area :BILHText :+Document –simulate & saveCreation of machinery master (AS01)Give the asset class :BIL 2000 Dept ACompany code :BILEnterDescription :Machine no.15Capitalized on to days date 176
    • Select time dependent tabBusiness area :BILHSelect depreciation area tabDepreciation key :BIL1Useful life :15 yearsPeriod :6 monthsOrdinary depreciation start date :Today’s dateSaveNote: the asset no.200004-0Settlement of CWIP to machine no.15Path :Accounting –Financial accounting –Fixed assets –Posting-Capitalized assetunder construction –distribute (Tr code is A1AB)Company code :BILAsset :500001Sub number :0ExecuteFrom the menu select Edit –select –select all (F5)Select enter buttonCategory :select FXA assetSettlement receiver :200004-0Give the percentage :100Select back arrowSaveSelect settlement button (Shift +F8)Give the asset value date :13.12.2008 (Today’s date)Text :CWIP settlementDeselect text run check boxExecuteGo and see the document (FB03)Enter 177
    • Note :In live environment you take a purchase of machinery don’t enter directly Assetaccount, first enter in Capital Work in Progress after commissioning added all chargedconvert to asset accounting. NEW GENERAL LEDGERS ( ECC 6 NEW FEATURES)New general ledger (Multiple ledgers)Accounting group V3 India group April –March B1 Leading ledger –0LAccounting group K4 US Group Jan –Dec K4 Non leading ledger –M1Accounting group V6 UK Group July-June V6 Non leading ledger 2 –M2When we create ledgers automatically ledger group will be createdWe can assign in ledger group number of legers for 0L we can assign all and M2At the time of posting –If we don’t specify ledger group –It updates all legers.FC (Foreign currency)Revaluation –Gain /Loss to charge to P & L account -For leadingledger 01 and non leading ledger M1-For UK group purpose it is to be added to asset andcalculate depreciation for ledger group 0L-Assign M1 ( 0L is already assigned) –At thetime posting it updates ledgers 0L and M1Representative ledger and non-representative ledgerWhen we create legers ledger group will be created that ledger will be calledrepresentative ledger – we are assigning for 0L ledger group M1 –This is called nonrepresentative ledger.At the of posting system checks representative ledger periods are open or not –we neednot open non-representative ledgers periods.Eg: Ledger GRP (Group)-0LLedger 01 Representative ledger (April 2008- March 2009)January 2009 period should be openLedger M1 Non-representative ledgerJanuary 2009 –December 2009January 2009 period can be closed.We are creating M1 ledger –Automatically M1 ledger GRP is created –we are assigningledger 0L (0L=Leading ledger) –Always leading ledger only should be the representativeledger. 178
    • Document types and no.ranges are required non-leading ledgers –All non-leading ledgerswe specify all document types and given only one number range –we give number rangeinterval only for one number range.CUSTOMIZATIONActivate new general ledger accounting:Path :SPRO-Financial accounting –Financial accounting global settings –Activatenew general ledger accountingSelect new general ledger active check boxSave(This is one time job work at client place)Define ledgers for general ledger accountingPath :SPRO-Financial accounting (new) -Financial accounting global settings (new) –Legers –Ledger-Define ledgers for general ledger accountingSelect new entries buttonLedger :M1 ( Text filed)Ledger name :Non leading ledger for BILTotals table :FAGLFLEXTLedger :M2Ledger name :Non leading ledger for BILTotals table :FAGLFLEXTSaveSave in your requestIgnore the message press enterDefine and activate non-leading ledgers:Same pathGive the ledger :M1EnterSelect new entries buttonCompany code :BIL 179
    • Fiscal year variant :K4Posting period variant :BILSavePress enter to save in your requestSelect back arrowGive the ledger :M2EnterSelect new entries buttonCompany code :BILFiscal year variant :V6 (July to June)Posting period variant :BILSaveDefine ledger group:Same pathSelect ledger group :0LDouble click on ledger assignment folderSelect new entries buttonLedger :M1Deselect representative ledger check boxSaveIgnore the warning message press enterPress enter to save in your requestDefine document types for entry view in a ledgerPath :SPRO-Financial accounting (new)-Financial accounting global settings (new) –Document –Document types –Define document types for entry view in a ledger.Give the ledger :M1EnterSelect new entries buttonType Number rangeSA 40 (give it any number range)KR 40DR 40WE 40 180
    • WA 40RE 40RV 40WI 40AA 40SavePress enter to save in your requestSelect back arrowGive the ledger :M2EnterSelect new entries buttonType Number rangeSA 41KR 41DR 41WI 41WA 41WE 41WL 41RE 41RV 41AA 41SaveDefine document types for general ledger viewSame pathGive the ledger :M1EnterSelect new entries buttonType Number rangeSA 45KR 45DR 45WA 45WI 45WL 45WE 45RE 45RV 45AA 45SavePress enter to save in your request 181
    • Select back arrowLedger M2EnterSelect new entries buttonType Number rangeSA 46KR 46DR 46WA 46WE 46WI 46WL 46RE 46RV 46AA 46SaveDefine document number ranges for entry view:Path :Up to document the path is same – Document number rages –Documents inentry view –Define document number ranges for entry viewGive the company code :BILSelect change intervals buttonSelect interval buttonNo.range :40Year :2009From no. :1100001To no. :1200000EnterSelect interval buttonNo.range :41Year :2008From no. :1200001To no. :1300000Enter and save 182
    • Ignore the warning message press enterDefine document no.range for general ledger view:Path :Up to document the path is same –Document no.rages –Documents in generalledger view –Define document no.range for general ledger viewGive the company code :BILSelect change intervals buttonSelect interval buttonNo.range :45Year :2009Form number :500001To number :600000EnterSelect interval buttonNo.range :46Year ;2008From number :600001To number :700000Enter & saveIgnore the warning message press enterEND USER AREAPosting of transaction :Path :Accounting –Financial accounting-General ledger –Posting –Enter generalposting for ledger group (Tr code is FB01L)Give the document date :Today’s dateType :SALedger group :blankCompany code :BILPosting key :40 183
    • Account number :200100 Cash A/cEnterGive the amount :100000Business area :BILHText :Equity share capital receiptPosting key :50Account no. :100000 Equity share capitalEnterAmount :*Business area :BILHText :+Document –Simulate & SaveDocument date :Todays dateType :SALedger group :0LCompany code :BILPosting key :40Account no. :200100 Cash A/cEnterAmount :50000Business area :BILHText :Equity share capital receiptPosting key :50Account no. :100000 Equity share capitalEnterAmount :*Business area :BILHText :+Document –Simulate & Save0L Leading ledger April 2008- March 2009 10th Period 105000 2008 184
    • M1 Non-leading ledger Jan 2009-Dec 2009 1st Period 105000 2009M2 Nonleading ledger July 2008 –June 2009 7th Period 100000 2008To view the ledgerPath :Accounting –Financial accounting –General ledger –Account –Display balances(new) (Tr cod is FAGLB03)Account number :100000Company code :BILFiscal year :2008Ledger :0LExecuteDouble click on balance 105000To view the documentSelect document no.check boxSelect display document buttonSelect call up document overview buttonSelect back arrow 3 timesSelect choose ledger buttonChange the ledger to M1EnterChange the Fiscal year to 2009ExecuteSelect back arrowSelect choose ledger buttonChange the ledger to M2EnterChange the fiscal year 2008ExecuteSegments Creation 185
    • Scenario Future scenarioCompany code :BIL Company code BIL | |Business area :HYD Segment HYD | |Profit centers :Cement, Steel Profit center Cement , SteelIn future there will not be any developments Segments will be assigned in the forBusiness areas profit centerIn case of automatic line items generation businessArea will not be picked up Profit center –through derivation rules Profit center is updated automatically segment also will be updated.Segment creationPath :SPRO-Enterprise structure –Definition –Financial accounting -Define segmentSelect new entries buttonSegment DescriptionBGL Bangalore segmentHYD Hyderabad segmentSelect save button or Ctrl+SPress enter to save in your requestAssign segment in profit centers:Path :Accounting –Controlling profit center accounting –Master data profit center –Individual processing change (Tr code is KE52)Profit center :select SteelEnterSegment :select HYDEnterSelect activate button (Shift +F1)One more profit center 186
    • Profit center :CementEnterSegment :select HYDSelect activate button DOCUMENT SPLITTINGIn document splitting, line items are split according to selected dimensions –so that wecan draw financial statements for the selected dimensions at any time.Eg: Profit Center wise, Segment wiseSales Party X Account Dr 100000 To Sales Steel 80000 Steel profit center To Sales cement 20000 Cement profit centerDue to document splitting Party X Account Dr 80000 Steel Party X account Dr 20000 Cement To Sales Steel 80000 Steel To Sales Cement 20000 CementCreation of 3GL masters :FS00A) Sales –Steel SalesB) Sales –Cement SalesC)Zero balance clearing a/c current liabilities & provisionsFS00GL Account no. :300010Company code :BILSelect with template buttonGive the Gl A/c No. :300005 Sales local own goodsCompany code :BILEnterChange short text and GL account long text to sales SteelSaveSelect edit cot element button 187
    • Valid from 01.04.2008 to 31.03.9999EnterCost element category :11 RevenuesSaveSecond a/cGive the GL A/c No. :300011Company code :BILSelect with template buttonGive the GL A/c :300010Company code :BILEnterChange short text and GL a/c long text to sales CementSaveSelect edit cost element buttonCost element category :11 RevenuesSaveGL A/c No. :100530Company code :BILSelect with template buttonGive the GL A/c No.100505 VAT payableCompany code :BILEnterChange short text and GL account long text to Zero balance clearingSelect create /Bank /Interest tabChange field status group to G067 (Reconciliation account)SaveClassify G/L Accounts for document splitting: 188
    • Path :SPRO-Financial accounting (new)-General ledger accounts(new) –Businesstransactions –Document splitting-Classify G/L accounts for document splittingGive your chart of accounts :BILEnterSelect new entries buttonAccount from Account to Category Description100000 299999 01000 Balance sheet account300000 399999 30000 Revenue400000 499999 20000 ExpenseSavePress enter to save in your requestDefine Zero balance clearing accountSame pathSelect account key :000Double click on accounts folderChart of Accounts :BILEnterSelect new entries buttonGive the G/L account :100530 Zero balance clearing A/cSavePress enter to save in your requestActivate documents splittingSame pathSelect document splitting check boxSavePress enter to save in your requestEND USER AREAPosting of sales (F-22)Give the document date :Todays dateType :DRCompany code :BIL 189
    • Posting key :01Customer Account :100000EnterAmount :80000Business area :BILHText :Sales invoice postingPosting key :50Account :300010 Sales SteelEnterBusiness area :BILHText :+Select profitability segment button (right arrow button profit center steel)Ignore the warning message press enterGive the profit center SteelSelect continue buttonOne more itemPosting key :50Account no. :300011 Sales CementEnterAmount :*Business area :BILHText :+Select profitability Segment right arrow buttonGive the profit center :CementSelect continue buttonDocument –SimulateFrom the menu select Document –SimulateGeneral ledger buttonSaveFrom the menu select Document –Display 190
    • Select general ledger View button CENTRAL EXCISE AND SALES TAXCIN: Country India VersionMM ConsultantSD consultantFI consultant –Creation of accounts and assignment of accountsCentral excise is an Indirect TaxThis will be charged at the time of sales, sales men (Removal of goods)Central excise registration :15 digits code(10 digits will be income tax PAN + 5 digits central excise)Central excise registration will be plant wiseCentral excise rates are given in central excise tariff chapter IDs :8 digits codeUnder chapter id we have material description and rateBasic Excise Duty (BED) 14% maximum (now changed to 10%)Additional excise duty (AED) –Products like textiles 15% of basic amount –Now no AEDSpecial Excise Duty (SED)- Tobacco related products 8% on invoice original valueEducation cess 2% (on 8% excise duty)Higher and secondary education cess 1% (on 2% ED)CEN VAT (Central Excise Value Added Tax) –Earlier MODVATWhere we pay excise duty at the time of purchase, the excise amount can be adjustedwhen we pay excise duty on sales to excise dept.(Though collected from customer)RG23A Part 1 Quantity updation - Excise duty on consumable Part 2 value updation - 100% CENVAT same yearRG23C Part 1 Quantity updation – Excise duty on Capita Goods Part 2 value updation - 50% current year 50% next year 191
    • PLA Personal Ledger Account Bank excise credits and debitsER1 (Excise return 1) (Earlier it was RT12 monthly return) To pay excise before 5th of next month To file the return before 10th next monthRG1 Finished goods registerPurchase scenario: Consumable purchase capita goods purchase (stores)Basic price 100 200Excise 8% 8 10% 20 ---- ---- 108 220VAT 4% 4.32 8.8 ----- ---- 112.32 228.8Goods receipt for consumables A) Goods receipt entry Inventory RM local DR 100 To GR/IR clearing RM LCL 100 B) Excise entry RG 23 A BED DR 8 To CENVAT clearing 8Invoice verification for consumablesGR/IR clearing RM LCL DR 100CENVAT clearing A/c DR 8VAT Receivable DR 4.32 To party 112.32Goods receipt for capital goods A) Goods receipt entry Inventory stores local DR 200 192
    • To GR/IR clearing stores Local 200 B) Excise entry RG 23C BED DR 10 CENVAT on hold DR 10 To CENVAT clearing a/c 20Invoice verification for capital goodsGR/IR clearing stores LCL DR 200CENVAT clearing a/c DR 20VAT Receivable DR 8 .08 To party 228.08Sales scenarioBasic price 1000Excise rate 14% 140 ----- 1140VAT 12.50% 142.5 ------- 1283Sales billing :Customer A/c Dr 1283 To Sales 1000 To CENVAT suspense 140 To VAT payable 142.50Excise invoice creationCENVAT suspense a/c Dr 140 To Excise duty payable 140Excise Balances: RG23A RG23C PLAPurchase 8 10Payable on sale 140 To pay 5 6 129PLA DepositPLA A/c Dr 150 To Bank 150Excise utilization 193
    • Excise duty payable DR 140 To RG23A BED 5 To RG23C BED 6 To PLA 12910) Sales tax Payment to Dept VAT Payable 143 VAT Receivable 13 To Bank 130 VAT Payable Dr 143 To VAT Receivable 13.10 To Bank 12911) Final balances in excise registers RG23A RG23C PLAPurchase /Deposit 8 10 150Utilized at the time of sale 5 6 129 -----------------------------------------------------------------Closing balance 3 4 21 ======================================SAP:Tax procedures TAXINJ: Formula based TAXINN condition basedIn new implementations –TAXINNClient 000-SAP has given TAXINN and TAXINJExcise conditions /Service tax conditions / Education cess conditions /Sales taxconditions.CENTRAL EXCISE CUSTOMIZATIONActivate Country Version India for specific fiscal yearPath :SPRO-Financial accounting –Financial accounting global settings –Tax onsales /purchases –Basic settings- India-Activate country version India for specific fiscalyearsSelect position buttonComponent :select IND 194
    • EnterFor component IND select active check boxSavePress enter to save in your requestCheck and change settings for tax processingPath :Up to tax on sales / purchases the path is same –Basic settings-Check andchange settings for tax processingSelect new entries buttonProcess :B1Description :A/P Basic Excise duty (A/P BED)Tax type :select 2 (input tax)Posting indicator :select 2 (separate line item)SavePress enter to save in your requestSelect back arrowSelect process :B1Select copy as buttonChange the process to B2Change the description :A/P CSTPosting indicator :select 3 (Distribute to relevant expense /revenue items)Enter & SaveSelect :B1,B2Select copy as buttonChange the process to B3Change description to APVATEnterChange the description to AR VATOther things are commonPress enter and SaveChange process to B5 195
    • Change description to AR CSTChange tax type to :1Posting indicator :2 separate line itemEnter and SaveSelect B5Select copy as buttonChange the process to B6Change the description to AR VATOther things are commonPress enter & SaveDefine condition types:Path :Up to tax on sales /purchases the path is same -Basic settings-Check calculationprocedure –Double click on define condition typesSelect new entries buttonCondition type :BIL1Description :AP Excise BEDAccess sequence :select JTAX (IN: Excise Access)Condition class :select D (Taxes)Calculation type :select A (percentage)Condition category :select D (Tax)Select item condition check boxSavePress enter to save in your requestSelect back arrowSelect :BIL1Select copy as buttonChange the condition type change to :BIL2Change the description to :APCSTAccess sequence :Change to JST1 (India Sales tax access)Enter & Save 196
    • Select :BIL2Select copy as buttonChange condition type to :BIL3Change description :A/P VATOther things are commonEnter & SaveDefine proceduresPath :Up to tax on sales /purchases the path is same –Basic settings –Checkcalculation procedureDouble click on define proceduresSelect new entries buttonProcedure :TAXINNDescription :Sales tax IndiaSavePress enter to save in your requestSelect :TAXINNDouble click on control data folderSelect new entries buttonStep Condition Description From To Statistics Print Base Account type type key100 Select Base Select BASB amount 362110 Calculated 100 100 Select cell static’s check box120 BIL1 AP Excise 100 100 Select B1 BED X150 Basic 110 140 Select +Excise static check box160 BIL2 A/P CST 150 150 Select B2 197
    • X170 BIL3 A/P VAT 150 150 Select B3 XSaveAssign country to calculation procedurePath :Up to tax on Sales /Purchases the path is same –Basic settings –Assign countryto calculation procedureSelect position buttonCountry :IN for IndiaEnterFor country IN assign procedure TAXINNSavePress enter to save in your requestDefine tax codes for sales and purchasesPath :Up to tax on sales / purchases the path is same –Calculation –Define tax codesfor sales and purchases (Tr code is FTXP)Give the country :INEnterTax code :V0EnterGive the description :0% Input taxTax type :V (input tax)EnterSaveTax code :V1EnterDescription :V1 Dummy tax code for purchasesTax type :V for input taxTax percentage rate :0Enter & Save 198
    • Tax code :A0EnterDescription :0% output taxTax type :A ( out put tax)Enter & SaveOne more tax codeTax code :A1EnterDescription :Dummy tax code for salesTax type :A (Out put tax)Enter & SaveCreation of GL masters (FS00) To Copy200156 RG23A BED A/c Current assets, Loans & Advances to copy 200155 VAT receivable200157 RG23C BED A/c Current Assets, Loans and Advances to copy 200155VAT receivable200158 CENVAT on hold Current Assets, Loans and Advances to copy 200155 VAT receivable200159 PLA Account Current Assets, Loans & Advances to copy 200155 VAT Receivable200155 VAT receivable already created100506 CENVAT A/c clearing current liability provision copy 100505 VATpayable100507 CENVAT A/c suspense current liability & provisions copy 100505 VAT payable100508 Excise duty payable A/c current liability & provision copy 100505 VAT payable 199
    • 100509 CST payable A/c current liabilities & provision X copy 100505100505 VAT payable already createdSaveNote :In all accounts tax category * posting without check boxDefine tax accountsPath :Up to tax on sales /purchase the path is same posting –Define Tax accounts (Trcode is OB40)Double click transaction B1 A/P Excise BEDGive the chat of accounts :BILEnterSaveSelect posting key buttonDebit 40Credit 50SavePress enter to save in your requestSelect accounts buttonGive the account no.100506 CENVAT clearing A/cSavePress enter to save in your requestSelect back arrowDouble click on transaction B3 APVATSaveSelect posting key buttonDebit 40Credit 50SavePress enter to save in your request 200
    • Select accounts buttonGive the A/c no.200155 VAT receivableSavePress enter to save in your requestMaintain excise registrationPath :SPRO-Logistic general –Tax on goods movements –India –Basic settings –maintain excise registrationsSelect new entries buttonExcise registration :2(ECC number means excise control code)ECC no. 1234Excise Registration no.(15 digits code)(10 digits PAN other 5 Excise no.) :123456Excise range :Kukatpally rangeExcise division :Kukatpally divisionCommissionerate :Hyderaba commissionerateExcise invoice items(EI) :999Select partial credit check boxSavePress enter to save in your requestMaintain company code settingsSame pathSelect new entries buttonSelect company code :BILSelect details buttonCENVAT document type :SAUtilization FI document type :SA 201
    • Select debit account override check boxSelect auto adjustment indicator check boxSelect immediate credit on capital goods check boxFirst month “select AprilExcise selection days :30 daysNo.of excise invoice selection :999Excise invoice selection procedure :FIFOSavePress enter to save in your requestMaintain plant settings:Same pathSelect new entries buttonPlant :BILPExcise registration :002 (This is plant level)No.GRS per Excise invoice :select Multiple goods receipt multiple creditsSaveMaintain excise groups:Same pathSelect new entries buttonExcise group :2Description :Excise group for BILPPlant :BILPExcise registration :2No.GRS per excise invoice multiple goods receipts, multiple creditsSelect default challan quality in GR check boxSelect EI capture check box under MIGO settingsSelect post excise Invoice MIGO check boxSelect duty different at GR check boxSelect update RGI at MIGO check boxSavePress enter to save in your request 202
    • Note :MRO –Invoice verificationMaintain series groupsSame pathSelect new entries buttonSeries group :2Series description :BILP series groupExcise registration :2SavePress enter to save in your requestMaintain excise duty indicators:Same pathSelect new entries buttonExcise indicator 1 :100% TaxExcise indicator 2 :50% TaxExcise indicator 3 :Nil TaxSavePress enter to save in your requestMaintain excise defaults:path :Up to India the path is same –Basic settings –Determination of excise duty –maintain excise defaultsselect new entries buttonTax procedure :TAXINNCVD condition JCV1:A/P BED condition type :BIL1A/R BED condition type :BILABED percentage :BIL 4SavePress enter to save in your requestMaintain chapter ID’s:(8Digists excise code)Path :Up to India the path is same –Master data –Maintain chapter Id’sSelect new entries buttonChapter ID :50000001Unit of measurement for excise kgDescription as per law :ChemicalsSaveCreate request in your Work Bench Request for BILsaveSelect next entry (F8) button 203
    • Chapter ID :55000001Unit of measurement for excise kgDescription as per law SteelSaveSpecify G/L Accounts per excise transactionPath :Up to India the path is same –Account determination –specify GL accounts perexcise transactionSelect new entries buttonExcise group :select 2Excise transaction type :GRPO (Excise Invoice for goods receipt against PO)Company code :BILChart of Accounts :BILRG23A BED :200156RG23C BED :200157MODVAT clearing :100506 (CENVAT clearing )G/L account per PLA BED :200159CENVAT on hold :200158CENVAT suspense account :100507PLA on hold :200159SavePress enter to save in your requestThe same way the you send the accounts for all excise transaction types.For excise transaction type DLFC same as aboveSaveNote : PLA on Hold Dr To Bank PLA A/c Dr To PLA on Hold A/c (This is used for next year carry forward) 204
    • Specify SAP Script formsPath :Up to India the path is same –Business transactions –Excise registers –SpecifySAP script formsSelect all the registers of company Code :IN01Select copy as buttonChange the company code to BIL for Registers and returnsSave press enter to save in your requestMaintain number rangesPath :Up to India the path is same –Tools-Number rangesObject :Select J_1IINTNUM (Internally document number to be generated )Select number rages buttonSelect change intervals buttonSelect interval buttonNumber rage :01Year :2008From no. :1To no. :100000SaveIgnore the message press enterSelect back arrow two timesObject :Select J_1IRG23A1 (RG23A part 1 no. range object)Select number rages buttonExcise group :select 2Select change intervals buttonSelect interval buttonNo. range :01Year :2008From number :100001To number :200000Enter & saveIgnore the warning message press enter 205
    • Select back arrow two timesObject :J_1IRG23A2 This is (RG23A part II Number rage object)Select number rage buttonExcise group :2Select change intervals buttonSelect interval buttonNo.range :01Year :2008From no. :200001To no. :300000Enter & saveIgnore the warning message press enterSelect back arrow two timesSelect object J_1IEXCLOC (Local excise invoice number rage for sales)Select number ranges buttonSeries group :2Select change intervals buttonSelect interval buttonNo.range :01Year :2008From number :300001To number :400000Enter & SaveIgnore the warning message press enterSelect back arrow two timesSelect object :J_1IINTPR2 despatch series numberSelect number ranges buttonExcise group :2Select change intervals buttonSelect interval buttonNo.range :01 206
    • Year :2008From no. :500001To no. :600000Enter & saveIgnore the warning message press enterExcise rates maintenanceUse the Tr code is J1ILN (India local menu) (This have no path)Path :Indirect taxes -Master data -Excise rate maintenance (Tr code is J1ID)Select material & chapter ID combination radio buttonSelect maintain button(F5)Select new entries buttonMaterial :BILRM1Plant :BILPChapter ID :5000001 ChemicalsMaterial type :Raw materialsGR with reference :select multiple goods receipt , multiple creditsDeclared :1Declaration date :29.02.2008One moreMaterial :BILFGPlant :BILPChapter ID :5500001 SteelMaterial type :RG1GR with reference :Multiple goods receipts, Multiple creditsDeclared :1Declaration date :29.02.2008SaveSelect back arrow 207
    • Select CENVAT determination radio buttonSelect maintain buttonSelect new entries buttonGive the plant :BILPInput material :BILRMOutput material :BILFGIntimation date :01.04.2008SaveSelect back arrowSelect vendor excise details radio buttonSelect maintain buttonSelect new entries buttonVendor :2001Excise indicator for vendor :1 ( 100% Tax)Type of vendor :select manufacturerSaveSelect back arrowSelect customer excise details radio buttonSelect maintain button (F5)Select new entries buttonGive the customer no. :200101Excise indicator for customer :select 1 (100% Tax)SaveSelect back arrowSelect excise indicator for plant radio buttonSelect maintain buttonSelect new entries buttonCompany code :BILPlant :BILPFirst month :select April 208
    • Excise indicator for company :select 1 (100% Tax)SaveSelect back arrowSelect excise indicator for pant and vendor radio buttonSelect maintain buttonSelect new entries buttonFirst column excise indicator :select 1Second column excise tax indicator for vendor :select 1 (100% Tax)Third column excise tax indicator for vendor :Select 1 (100% tax)SaveSelect back arrowSelect excise indicator for plant & customer radio buttonSelect maintain buttonSelect new entries buttonFirst column excise tax indictor for company :select 1 (100% tax )Second column Excise indicator for vendor :Select 1 (100% tax)Third column excise tax indicator vendor :select 1 (100% tax)SaveCreation of condition records(FV11) (No path this one)Condition type :select BIL1 AP Excise basicSelect key combination buttonSelect plant /vendor /material radio buttonEnterPlant :BILPVendor :2001Material :BILRM1Amount :8 (Excise rate & Tax rupees)Valid from :01.04.2008Valid to :31.03.2009 209
    • Tax code :V0SaveSelect back arrowCondition type :BIL3 A/P VATSelect key combination buttonSelect plant /vendor /Material radio buttonPlant :BILPVendor :2001Material :BILRM1Amount :4Valid from :01.04.2008Valid to :31.03.2009Tax code :V0SaveSD Excise customizationSD consultant jobDefine condition typesPath :SPRO-Sales & Distribution –basic functions –Pricing –Pricing control –Definecondition typesDouble click on maintain condition typesSelect new entries buttonCondition type :BIL4Description :A/R Basic excise duty (AR BED)Access sequence :JEXC (India Excise Access)Plus/ Minus :Select A PositiveCondition class :select A discount or SurchargeCalculation type :select A (Percentage )Select Item condition check boxSelect amount /percentage check box 210
    • SavePress enter to save in your requestSelect back arrowSelect :BIL4Select copy as buttonChange the condition type to BILADescription A/R Excise BED (100% copy)Access sequence :select JDUM (India 100 copy of other fields are values)Enter & SaveSelect BIL4 & BILASelect copy as buttonChange condition type to BIL5Description :A/R CSTAccess sequence :select JCST (India Central Sales Tax :Access)Plus / Minus : BlankCalculation type :A (Percentage)Condition class :change to D (Taxes)Condition category :select D (Tax)EnterChange the condition type to BIL6Description :AR VATAccess sequence :change to JLST (India Local sales tax access)Plus or Minus :BlankCalculate type : A (Percentage)Condition class :select D taxesCondition category :select D taxEnter & saveDefine account keys:Path :SPRO-Sales & Distribution –Basic functions –Account assignment/costing –Revenue account determination –Define and assign account keys –Double click defineaccount key 211
    • Select new entries buttonAccount key :B4Name :A/R Excise BEDAccount key :B5Name :AR CSTAccount key :B6Name :AR VATSavePress enter to save in your requestCheck and change settings for tax processingPath :SPRO-Financial accounting –Financial accounting global settings –Tax onsales /Purchases –Basic settings –Check and change settings for tax processingSelect B2 and B3Select copy as buttonChange the process to B5Change the description to A/R CSTTax type :select 1 (Output tax)Posting indicator :select 2 (separate line item)EnterChange process to :B6Change the description to A/R VATTax type :change to 1 Output taxEnter & saveSave in your requestDefine tax accounts:Path :up to Tax on sales /Purchases the path is same –Posting –Define tax accounts(Tr code is OB40)Double click on truncation :B5 AR CSTGive your Chart of Accounts :BILEnter 212
    • SaveSelect posting key buttonDebit :40Credit :50Select save buttonPress enter to save in your requestSelect accounts buttonGive the account no.100509 CST (payable)SavePress enter to save in your requestSelect back arrowDouble click on transaction :B6 ARVATSaveSelect posting key buttonDebit :40Credit :50SavePress enter to save in your requestSelect accounts buttonGive the account no.100505 VAT payableSavePress enter to save in your requestMaintain pricing proceduresPath :SPRO-Sales & Distribution –Basic functions –Pricing –pricing control –Defineand assign pricing proceduresDouble click on maintain pricing proceduresSelect new entries buttonProcedure :BILDescription :BIL domestic Pricing procedureSavePress enter to save in your request 213
    • Select :BILdouble click on control data folderSelect new entries buttonStep Condition Description From To Require Statistics Print Account type key100 PR00 Price Select X ERL Check box (√) Subtotal 100 100 Select Select Check Check box (√) box (√)200 BIL 4 A/R Basic 100 100 B4 excise duty210 Basic 100 200 Select +Excise Check box (√)400 Base value 100 -- Select Check box (√)410 BILA A/R BED 200 200 Select X (100% Check copy) Basic box (√) +Excise420 400 410 Select Check box (√)450 BIL5 AR CST 420 X B5460 BIL6 AR VAT 420 X B6500 Basic 420 460 Select +Excise+ Check Sales tax box (√)SaveDefine pricing procedure determination 214
    • Path :Up to pricing control the path is same –Define and assign pricing procedures (Tr code is OVKK)Double click on define pricing procedure determinationSelect position buttonSales organization :BILSenterFor BILS change the pricing procedure to BILSavePress enter to save in your requestDefine tax determination rulesPath :SPRO-Sales and Distribution –Basic functions –Taxes –Define taxdetermination rulesSelect new entries buttonTax country :INSequence :1Tax category :BIL5Tax country :IN for IndiaSequence :2Tax category :BIL6 Name:A/R VATSavePress enter to save in your requestDefine tax relevancy of mater records:Same pathDouble click on customer taxesSelect new entries buttonTax category Name Tax classification DescriptionBIL5 A/R CST 0 Nil TaxBIL5 A/R CST 1 TaxableBIL6 A/R VAT 0 Nil TaxBIL6 A/R VAT 1 TaxableSavePress enter to save in your requestSelect back arrowDouble click on material taxesSelect new entries buttonTax category Name Tax classification DescriptionBIL5 A/R CST 0 Nil Tax 215
    • BIL5 A/R CST 1 TaxableBIL6 A/R VAT 0 Nil TaxBIL6 A/R VAT 1 TaxableSavePress enter to save in your requestAssign delivering plants for tax determination (OX10)Same pathSelect position buttonPlant :BILPEnterSelect plant :BILPSelect details buttonSelect address button(Shift +F5)Region :select AP (Andhra Pradesh)Enter & SavePress enter to save in your requestAssignment of accounts for automatic postingsTr code is VKOADouble click on Table 1Select new entries buttonApplication area :VCondition type :KOFIChart of Accounts :BILSales organization :BILSAccount assignment group for customer :01 domestic revenuesAccount assignment group for customer :03 finished goodsAccount assign group for account key :B4 AR Excise dutyGL Account 100507 (Send VAT suspense account)SavePress enter to save in your requestSD END USER AREAAssign tax classification material master (Tr code is MM02) 216
    • Give the material no.BILFGPress select view buttonSelect sales :sales organization data 1Select organization levels buttonPlant :BILPSales organization :BILSDistribution channel :BDEnterFor tax classification tax category BIL5 0 taxableFor tax classification tax category BIL6 1 taxableSaveEnter tax classification in customer master (Tr code is XD02)Select the customer :200101Company code :BILDivision :BSSelect customer sales area buttonDouble click on sales organization :BILSEnterSelect sales area data buttonSelect billing documents tabFor tax category :BIL6Tax classification :1 (taxable)SaveCreation of condition records (Tr code is VK11)Condition type :select BIL4 A/R basic excise dutySelect key combination buttonSelect material radio buttonEnter 217
    • Sales organization :BILSdistribution channel :BDMaterial :BILFGAmount :10Valid from to :01.04.2008Valid to :31.03.2009SaveSelect back arrowSelect condition type BILA (A/R BED 100% copy)Select key combination buttonSelect sales organization radio buttonEnterSales organization :BILSAmount :100Valid from :01.04.2008Valid to :31.03.2009SaveSelect back arrowCondition type :select BIL6 AR VATSelect key combination buttonSelect country /Plant/Region /Material radio buttonEnterCountry :INPlant :BILPRegion :APMaterial :BILFGAmount :4 (Percentage)Valid from :01.04.2008Valid to :31.03.2009Tax code :select A1 (Dummy tax code for sales)Save 218
    • To check whether 0% input tax code and 0% output tax code assigned to company codeto BILPath :SPRO-Financial accounting –Financial accounting global settings –Tax onsales /Purchases -posting -Assign tax codes for non taxable transactions(OBCL)Select position buttonCompany code :BILenterFor company code :BILInput tax code :V0Output tax code :A0Company code :BILenterFor company code :BILInput tax code :V1Output tax code :A1SavePress enter to save in your requestCreation of Purchase order (ME21N)Purchase org :BILRCompany code :BILVendor :2001EnterGive the purchasing group :BILItem :10Material :BILRM1PO Quantity :100 KgsNet price :75Currency :INRPlant :BILPEnter 219
    • Select invoice tabTax code :select V1 dummy tax code for purchasesEnterSelect Taxes buttonSelect back arrowSaveNot the purchase order no.4500017094To open material periods for January (MMPV)From company code ;BILperiod :10Fiscal year :2008Select check and close period radio buttonExecuteIgnore the warning message press enter(Note : Use the Tr code J1EI for creation of Excise Invoice no’s following the othersteps same above)Give the Excise invoice no. and dateGoods receipt ( Tr code is MIGO)Select goods receiptGive the purchase order no.4500017094EnterQuantity in delivery note :100 kgsSelect item ok check boxSelect where tabStorage location :HYDPress enterSelect excise invoice tabGive the excise invoice no.1Excise invoice Date :Today’s date 220
    • SaveSelect display buttonEnterSelect document information tabSelect FI documents buttonSelect back arrowSelect excise invoice tabSelect more data buttonSelect part 2 tabSelect accounting document no.Invoice verification (MIRO)Invoice date :05.01.2009Posting date :11.01.2009Reference :51Select calculate tax check boxText :Invoice verificationTax code :V1 (Dummy tax code)Purchase order no. :4500017094EnterGive the amount :8424EnterBusiness area :BILHSelect payment tab :Base line date (Today’s date)Payment term :0001Enter & SaveFrom the menu select invoice document displaySelect follow on documents buttonTo print excise registers: (Tr Code is J1ILN)Path :Indirect taxes –Registers –Excise tax –Extract (J2I5) 221
    • Excise group :2Start date :01.01.2009End date :31.01.2009Select any register radio buttonSelect RG23A part I check boxSelect RG23A part II check boxExecuteEnterSelect back arrowSelect print utility program (TR code is J2I6)Select RG23A part 1 radio buttonExecuteExcise group :2Start date :01.01.2009End date :31.01.2009ExecuteOutput device :LP01Select print preview buttonSelect back arrow two timesSelect RG23A part II radio buttonExecuteExcise group :2Start date :01.01.2009End date :31.01.2009ExecuteOutput devise :LP01Select print preview buttonTo view sales tax register (Tr code is J 1 I L N)Indirect taxes –Registers –Sales tax –sales tax register (J1I2) 222
    • Company code :BILTax code :V1LST condition type :BIL3ExecuteSD EXCISECreation of sales order (VA01)Order type :ORSales organization :BILSDistribution channel :BDDivision :BSEnterSold to party :200101PO Number :2PO date :Today’s dateRequired delivery date :Today’s dateDelivery plant :BILPPayment terms :0001Item :10Material :BILFGOrder quantity :10 KgsEnterIgnore the message press enterSelect item :10From the menu select Goto Item conditionsFrom the menu select Edit –In complication log (Ctrl +F8)Select save buttonNote the sales order no.11771Delivery (Tr code is VL01N) 223
    • Give the shipping point :BILHOrder no. :1171EnterActual goods inward received date :Today’s dateSelect item :10Select picking tabPicked quantity :10 KgsSelect post goods issue buttonFrom menu select out bound delivery –DisplayEnterFrom the menu select Environment-Document flowKeep the cursor on go goods delivery no.Select display document buttonSelect accounts document buttonSelect account document no.Post : Inventory FG 700 IN/DE Stock FG 700Sales Billing (VF01)Select the delivery no.Select execute buttonSaveFrom the menu select billing document –displaySelect accounting buttonSelect accounting document no.Excise invoice creation (Tr code is J1ILN)Path :Indirect taxes –Sales /Out bond movements-Excise invoices –For sales order –Out going Excise invoice create /Change /Display (Tr code is J1IIN)Select from billing button (F5) 224
    • EnterExcise group to :2Serious group :2Select utilization button (F6)SaveIgnore the warning message press enterCENVAT suspense A/c Dr To Excise duty payableGo and see sales billing display (VF03)Give the billing document no.90036108Select accounting buttonSelect accounting document no.RG23A BED posting (F-02)Give the document date :Today’s dateType :SACompany code :BILPosting key :40Account no. :200156 (RG23A BED)EnterAmount :50000Business area :BILHText :RG23A DebitPosting key :50Account no. :200105 Bank accountEnterAmount :*Business area :BILHText :+Document –Simulate & Save 225
    • PLA Deposit (F-02)Give the document date :Today’s dateType :SACompany code :BILPosting key :40Account no. :200159 (RG23A BED)EnterAmount :100000Business area :BILHText :PLA depositPosting key :50Account no. :200105 Bank accountEnterAmount :*Business area :BILHText :+Document –Simulate & SaveExcise duty payment: (Tr code is (J1ILN)Path :Indirect taxes –Sales /Out bond movements –fortnightly payment (J2IUN)Company code :BILPlant :BILPExcise group :2Period :01.03.2009 to Today’s dateBusiness area :BILHExecuteRG23A Utilized :6.60Select duty button 226
    • Select Simulate button (F7)Select right mouse buttonSelect continue buttonSaveGo and see the document (FB03)Document no. :38Company code :BILFiscal year :2008Enter FINANCIAL STATEMENT VERSIONBalance Sheet and Profit & Loss account format creationIn India –Companies Act –Schedule VI formatSummary Schedules AmountShare capital Equity share capital 100000 Preference share capital 100001Reserves & Surplus General Reserves 100101 Capital Reserve 100102Secured loansUnsecured loansBy using 0-9 levels –we can get all 3 versions consultant creates 2 versions –Summary -SchedulesIn 000 Client SAP has given for India Bain.Path :SPRO-Financial Accounting –General ledger Accounting-Businesstransactions-Closing –Document-Define financial statement versions.Select new entries buttonFinancial statement version :BIL1 227
    • Name Balance Sheet and Profit & Loss accountMaintain Language :ENSelect item keys automatic check boxChart of Accounts :BILSavePress enter to save in your requestSelect financial statement item buttonKeep the cursor on AML1Select create items buttonGive the items :Balance Sheet :Profit & Loss account :Net profit /Loss transfer to Balance SheetEnterKept the cursor on profit and loss accountDouble click on No text exists against Liability +EquityGive item :LiabilitiesEnterDouble click no text exists against AssetsGive the item AssetsEnterKeep the cursor on AssetsPress select button (beside reassign button)Keep the cursor on Balance sheetSelect resign (Shift+F6) buttonSelect subordinate radio buttonEnterKeep the on liabilitiesPress select button (F9)Keep the cursor on Balance SheetSelect resign button (Shift+F6)Select subordinate radio button 228
    • EnterKeep the cursor on Profit & Loss accountSelect create item buttonGive the items :IncomeGive the items :ExpenditureEnterSavePress enter to save in your requestKeep the cursor on LiabilitiesSelect create items buttonGive the Share capital Reserves & Surplus Secured loans Unsecured loansEnterKeep the cursor on AssetsSelect create items buttonGive the items :Net Fixed Assets :Net Current Assets :Misc. expenditure to the extent not written off Eg: Preliminary exp.EnterKeep the cursor on IncomeSelect create items buttonGive the heads :Sales :Other Income :Inc/Dec in StocksEnterKeep the cursor on expenditureSelect create item button 229
    • Expenditure : Raw material consumption Personnel expenses Manufacturing expenses Administration Expenses Interest DepreciationEnter and SaveDouble click no text existent against net result :ProfitGive the item :Net profit transferred from P & L AccountEnterKeep the cursor on Net profit transfer from P & L AccountPress select button (F9)Keep the cursor on reserves & SurplusSelect reassign button (shift +F6)Select subordinate radio buttonEnterDouble click on no text exists against net result lossItem :Net loss transferred from P & L AccountEnterKeep the cursor on net loss transferred from P & L AccountPress select button (F9)Keep the cursor on Misc. Expense to extend not written offSelect reassign buttonSelect subordinate radio buttonEnterSaveAssignment of accounts are to be assigned to the last noteKeep the cursor on Share Capital 230
    • Select assign accounts buttonEnterFrom Account :100000To Account :100099Select debit check boxSelect credit check boxFrom Account :100101To :199999Select debit check boxSelect credit check boxNote :Expect 100000 all are sameEnterKeep the cursor on net fixed assetsSelect assign accounts buttonFrom Account :200000To Account :299999Select debit check boxSelect credit check boxEnterKeep the cursor on salesSelect assign accounts buttonFrom account :300000To account :399999Select debit and Credit check boxEnterKeep the cursor on Raw material consumptionSelect assign account buttonFrom account :400000To account :499999Select Debit and Credit check boxEnter 231
    • Keep the cursor net profit/loss transferred to Balance SheetSelect Assign account buttonFrom account :100100Select Debit & Credit Check boxEnter & SaveTo check whether all accounts assigned or notSelect check buttonSelect non assigned account check boxEnter & SaveLiabilities AmountSources of Funds: 100000 100001 100002Share capital 100003 ------- X 100100 100101Reserves & Surplus 100102Secured loans XUnsecured loans X ------Total Liabilities X =====Double click on liabilitiesStart of group LiabilitiesEnd of group total liabilitiesSelect display total check boxEnterDouble click on share capitalStart of group :Source of fundsEnd of group :Share capitalSelect display totals check boxEnter 232
    • Double click on Reserves & SurplusEnd group :Reserves & SurplusSelect display total check boxEnterNote :Same way secured and unsecured loansDouble click on assetsStart of group :AssetsEnd of group :Total AssetsSelect display total check boxEnterDouble click on Net fixed AssetsStart of group :Application of fundsEnd of group :Net fixed AssetsSelect display total check boxEnterDouble click on Misc. expenditure to extend not written offEnd group Misc. expenditure to the expend not written offSelect display totalsEnterDouble click on Profit & Loss AccountEnd of Group :Net Profit /Loss for the yearSelect display total check boxEnterDouble click on IncomeStart of group :IncomeEnd of Group :Total IncomeSelect display total check boxEnterDouble click on salesEnd of Group :SalesSelect display total check box 233
    • EnterDouble click on ExpenditureStart of group :Total expenditureSelect display total check boxEnterDouble click on Raw material consumptionEnd of group :Raw material consumptionSelect display total check boxEnterDouble click on net profit /Loss transferred to Balance sheetStart of group :Net Profit /Loss transferred to balance SheetSelect display total check boxEnterDouble click on No text exist against P & L resultItem :Net profit/Loss transferred to Balance SheetEnd of Group: Net profit/Loss transferred to Balance SheetSelect display total check boxEnter & SaveOpen one more session :Path :Accounting-Financial Accounting –General Ledger-Information system—General Ledger reports-Balance Sheet/Profit loss Statement /Cash flow-General –Actual/Actual comparisons- Balance sheet/Profit Loss Statement (S_ALR_87012284)Company code :BILBusiness area :BILHFinancial Statement version :BIL1Reporting year :2008Reporting period :1 to 16Comparison year :2007Comparison periods :1 to 16Select classical list radio button 234
    • Select special evaluations tabBalance sheet type :1 (Standard Financial Statement )Select output control tabCompany code summarization :Select 1 (Balance sheet per company code)Business area summarization :select 1(Balance Sheet per business area)Summary report :3Comparison type :1Note :2 types of comparison in SAP 2008 2007 Sales 100 751) Percentage of Increase Current year –Previous year *100 ---------------------------------- Previous year 100-75/75*100=33.32) Percentage of growth :Current year *100 -------------------- Previous year 100/75=133Scaling :5/2Scaling note :A) Only Rupees without paise 0/0B) Rupees with paise 0/2C)Rupees in lakhs –without decimals 5/0D)Rupees in mission without decimals 6/0E)Rupees in crores without decimals 7/0F)Rupees in laksh –Thousands in decimals 5/2Sales 987654321.55Rupees in lakhs (100000) 5 Decimals 2 decimals 2 decimals 9876.54 235
    • Select execute buttonSelect back arrowSelect special evaluations tabGive the display currency dollar execute ASSET ACCOUNTING REPORTS:1.Depreciation forecastPath :Accounting –Financial accounting –Fixed assets –Information system –Reportson asset accounting –Depreciation for cost –Depreciation on capitalized assets(Depreciation simulation) (Tr code is S_ALR_87012936)Give the company code :BILReport date :31.03.2011Execute2. Fixed asset schedule as per schedule VI of companies ActGross Additi Sales Gro Dep. Acc.De Dep. Dep Acc. Net Netblock ons /Trans ss for p.in the for on Dep blo blockin the during fers blo the beginni the sales in the ck in thebeginn the during ck year ng of year /Trans year in beginning year the in end year fer the ingyear year the yea yea r r end endInformation systems –Accounting –Financial accounting –Fixed assets –Asset Historysheet (Tr code is AR02Give your company code :BILReport date :31.03.2009Select group totals only radio buttonExecute(Note :Retirement mean sale of asset)Select asset buttonDouble click on asset retirement 236
    • PROJECTBIL group (to go for ERP)Packages available Cost / Feature/TimeERP PackagesSAPOracle FinancialsJD EdwardsPeople softDecided to go for SAP –Consulting firms Cost/Support /Experience 1) WIPRO 2) Infosys 3) Satyam 4) Intell 5) ZensarBuy SAP package from SAP-India –Bangalore with the support of WIPRO –Hyderabadvendors.Implement all the modules at all locations (BIG Bang project) or in a phased mannerBIL WIPROA) Project Manager A) Project ManagerB) Accounts Manager B) FI ConsultantC)Cost Accountant C)Co ConsultantD) Purchase Manager D)MM ConsultantE) Sales Manager E)SD ConsultantF)IT Staff F) BASIS Consultant G) ABAP ProgrammersKick of Date means Start dateForm a steering committeeBIL Senior peopleWIPRO Senior people 237
    • Project Mangers BIL and WIPROBIL core team members –As is process existing process and requirements from SAPWIPRO- Study the process and prepare to be processGAP reports –Write to SAP the requirement /through programmer/work around /userexits.WIPRO-Customization based clients requirement .BIL core team –TestingWIPRO –Customization documentBefore going liveTraining to the BIL company users will be givenFix ago live date:Customization will be transported from development client to production client.Up load masters in production clientUpload balances in production clientGive the number ranges in production client.On go live date :Enter transactions in production client.Support: For the issues raised by BIL end users.Rollouts : Implementing SAP in different locations afterwards ASAP Methodology (ASAP –Accelerated SAP) 1. Project Preparation 2. Business blue print 3. Realization 4. Final preparation 5. Go and live and supportOSS mean Online Support ServiceLand Scape1. Development Quality testing Production SAND box –All scenarios configuration selected scenario Testing2. Development Production 238
    • R/ 3 StructurePresentation application data base SAP Package data stored in data base server 239