SAP CO step by step config guide & user manual part 1

CO Integrated Training Program
Book- 1 / 2
(Version 16-1)
Trainer & Author:
© Srinivas Kasireddy
91-9959765211
Skype : srinivas3d
Date printed : 5 November 2016
File Name : costepbystepconfigusermanualpart1-161105073908.doc
© Srinivas Kasireddy

©SrinivasaKasireddy©+91-9959765211
2

Table of Contents:
1.CO -Basic Settings.........................................................................................................8
2.Cost Centre Accounting...........................................................................................13
3.Allocations...................................................................................................................31
4.Allocation by Assessment using SKF ........................................................................35
5.Allocation by Distribution .........................................................................................43
6.Allocation by Periodic Reposting ...........................................................................51
7.Indirect Activity Allocation using SKF.....................................................................57
8.Direct Activity Allocation...........................................................................................76
9.Internal Orders(I.O).....................................................................................................81
10.Real IO with settlement to CC................................................................................87
11.Real Time Integration (New GL)..............................................................................96
12.Sales/Purchase Tax.................................................................................................105
7.MM Integration..........................................................................................................112
8.SD Integration............................................................................................................138
9.Profitability Analysis...................................................................................................155
10.COPA-Valuation Overview..................................................................................172
1.CO-PA Valuation-1...................................................................................................176
2.Characteristic Derivation.........................................................................................181
3.CO-PA Manual Line Item Entry...............................................................................182
4.Top-Down Distribution of Actual Data...................................................................183
5.Profit Centre Accounting........................................................................................191
6.Product Cost Planning ............................................................................................198

4

Introduction
This book is vol-2 of 2 volumes
This book was initially a set of tutorials taught by me during class room training. After gradual
development over the years, now it has become a complete configuration guide/ end-user
manual for SAP FICO module. Obviously this book is more a practical guide than a reference
book even though some info stuff has been inserted at some places.
Having taught the SAP FICO course to hundreds of beginners and experienced at various
institutions, I know the kind of problems and questions you will have when learning this
module.This book is full of detailed step-by-step procedures with necessary screen shots and
sample configurations.
Having worked as a SAP Consultant at various organizations, I know the kind of requirements
that may arise at clients. To this end, most of the business processes and underlying concepts
have been explained thoroughly through out the book.
By understanding the how and whys, you will start gaining basic knowledge which reaches to
advanced level with in no time.
As you go through the material, if you have problems or questions please do mail me. If you find
an error in this book, or suspect there may be an error, kindly notify .
I hope you will find using this book as enjoyable.
Conventions Used in This Book
‘’ indicates a next thing in navigation or next action
‘----- button’ means to hit the button . For example ‘ Position button’ means ‘to hit Positon
button’.
‘:’ is followed by the value/text to be entered
Multiple inputs/input values in a single screen are shown in the form of table.
How to use the book
Just read line by line and follow the instructions. Refering to screen shots makes your job
easy . Please refer to Info boxes for additional info.

6

Controlling
CO FI
CO is for internal Reporting FI is for Internal & external Reporting
7

1. CO -Basic Settings
Organizational Structure :
Controlling FI Accounting
Operating Concern
(CO-PA)
CO Area1
CoCd1
Plant1
Plant2
CoCd2
Plant3
Plant4
CO Area2
CoCd3
Plant5
Plant6
CoCd4
Plant7
Plant8
1. Copy comp code
TCode :EC01
2. Maintain Controlling Area
CO FI
CO-Area CoCd
Scenario:1 (1:1 relationship)
Company Code = Controlling Area
(Company code and Controlling area are in same levels or
One Company code under a Controlling area)
Scenario 2: (1:n relationship)
Company Code under the Co area (more than one CoCd under a Co-area)
This is also called cross company code cost accounting.
CO-area Company Code
Co Area1
CoCd 1
CoCd 2
Co Area2
CoCd 3
CoCd4
We are going to follow scenario 2 .
SPROControllingGeneral Controlling OrganisationMaintain Controlling Area
Double click on Maintain Controlling Area
8

New Entries
Controlling Area : LAP
Name : Co Area for LAP
Co Cd  CO Area : Cross-company-code cost accounting
Currency Type : 10
Currency : INR
Chart of Accts : LACA
Fiscal Year Variant : V3
CCtr Std. Hierarchy : Std_Hier
Save
’Yes’ Button to create std hierarchy
Create Request Button
Short description : CO Settings for LAP
Enter
Continue
Double click on ‘Assignment of Company Code(s)’ folder
New Entries
CoCd Company Name
LAP Lair p div
9

Save
Continue
Double click on ‘Activate components/control indicators’ folder
New Entries
Fiscal Year : 2012
Cost Centres : Component Active
AA: Activity type
OrderManagement : Component Active
Profit Centre Acctg
√
√
10

Save
Enter to ignore the warning message
3. Cost Centre Standard Hierarchy
Up to Controlling Same path
Cost Centre AccountingMaster Data Cost CentresDefine standard Hierarchy
 Enter
Group Name : STD_HIER
Description : Standard hierarchy for LAP
Save
Info : Std hierarchy is top node in the cost centre hierarchy .
Std hierarchy represents all cost centres in the Co Area
4. Maintain Versions
SPROControllingGeneral Controlling OrganisationMaintain Versions
Select version ‘0’ iePlan/Actual version
Double click on ‘Settings for Each Fiscal Year ‘ folder
``
Version : 0
Enter
New entries
Fiscal Year : 2012
11

Exchange Rate Type : M
Save
Continue
12

2. Cost Centre Accounting
Cost Centre Profit Centre
Cost Centre Accounting(CCA) is used to
record costs at org units called Cost
centres.
Eg:Cost centre can be a department
Profit Centre Accounting(PCA) is used to record
costs and revenues at org units called Profit
centres.
Eg: Profit centre can be a plant.
Profit centre is an internal org. unit at which
you can analyze profitability independently.
Eg: Plant wise profitability is possible
In FI module we can record expenses & revenues at GL account level.
Department level expenses can be captured in CCA .
Plant level expenses and revenues can be captured in PCA.
Relationship between Profit centre & Cost centre
A cost centre can be independent or assigned to a profit centre. For eg we have two
plants
We can create each plant as a profit centre . We can create each department in the
plant as
a cost centre.
Profit center Cost centre
1000
(Mumbai plant)
1001 (Body shop)
1002 (Assembling)
1003 (Paint shop)
2000
(Hyd Plant)
2001 (Body shop)
2002 (Assembling)
2003 (Paint shop )
Independent 9000 (Sales)
Independent 9001 (Admin)
Cost Element
Primary Cost Element
Secondary Cost Element
Primary Cost Elements are nothing but ‘Expenses’ GL accounts
13

Primary cost elements Secondary cost elements
Used to transfer data from FI module to CO Used to transfer data within CO module
For eg you post to Salary a/c in FI . It can be
transfered to CO with a cost element called
Salary
For eg allocations from one CO-object to
other(Cost center to Costcenter )
Profit centre 1000
(Mumbai Plant)
Profit centre 2000
(HydPlant)
Cost/Revenue
element
1001 1002 1003 2001 2002 2003 Cost /
Revenue
element wise
Totals(FI)
400500(Salaries) 27000 18000 9000 9000 27000 18000 108000
400600(Rent) 45000 54000 27000 27000 9000 9000 171000
CC wise Total 72000 72000 36000 36000 36000 27000
279000
PC wise Total 180000 99000
300510 (Sales) 207000 135000  342000
PC wise
Profitability
27000 36000  63000
1. Settings
1. Maintain Number Ranges for Controlling Document
SPROControllingGeneral Controlling OrganisationMaintain Number Ranges
for Controlling Document
Tcode :KANK
CO Area : LAP
 Maintan Groups button
Create button
Group : No. ranges for CO documents (LAP)
From number To number
090000000 099999999
Save
Continue
Back buton
14

Non-Assigned Elements
Click on COIN
Element/Group button
 Double click on ‘No. ranges for CO documents (LAP)’
(Repeat the same procedure for , RKP1, RKU1, RKU3)
 Save
Continue
Info:
FI CO
Doument types
Eg: SA, KR, KZ
Business transactions
Eg: COIN , RKU1 , RKU3
Eg: Bus.transaction ‘COIN’ arises when a CO object like Cost centre is entered in FI
document . In this case a CO document is generated apart from a FI document.
Bus.transaction ‘RKU1’ arises when reposting of costs from one CC to other CC . In
this
case only CO document is generated.
2. Creation of Primary Cost Element
a.FI area
Tcode : FS00
Select 1st expenses Account
Change button’Edit cost element’ button
Valid From : 1-4-2011 to : 31-12-9999
Enter
CElem category : 1 (Primary cost/cost-reducing revenue)
15

Save
Note down the 2nd Expenses GL account
400409 Travelling Expenses
b. Co. Area:
SAP Easy AccessAccountingControllingCost element AccountingMaster
DataCost Element Individual processingCreate Primary
Tcode : KA01
Cost Element : 400509 (2nd exp a/c)
Enter
CElem category : 1
Save
c. Automatic Creation:
SPROControllingCost Element AccountingMaster DataCost
elementsAutomatic
Creation of Primary and Secondary Cost ElementsMake Default settings
Chart of Accounts : LACA
Enter
NewEntries
Acct from Account to CECt
400403 (3rd Exp A/C) 400490 1
400491 400491 12
400492 499999 1
Save
Continue
Back button twice
Create Batch Input session:
Same path
Create Batch Input session
Controling Area : LAP
Valid From : 1.4.2011
Valid to : 31.12.9999
Session : CE_CREATE_LA
Execute
Execute Batch Input session
16

Same path
 Execute Batch Input session
Select Session name : CE_CREATE_LA
Process button
Process button again
Keep on pressing Enter until processing batch input session completed
Exit batch input session button
3. Display Cost Elements
Tcode :KA23
SAP Easy AccessAccountingControllingCost element AccountingMaster
DataCost elementCollective ProcessingDisplay
All Cost Elements
Execute
4. Creation of FSG (Cost Centre required)
Tcode : OBC4
Select FS variant ‘LAFS’
Double click on ‘Field Status groups’ folder
Select FSG ‘G004’ (Cost Accounts)
Copy as button
Change Field status group to2 ‘G002’
Change the Text to ‘Cost accounts (CC req)’
Enter
Double click on Field Status Group ‘G002’
Double click on ‘Additional account assignment’
Req. Entry
Cost centre
Save
Continue
5. Assign New FSG in Expenses G/L Account
SAP Easy AccessAccountingFinancial AccountingGeneral LedgerMaster
RecordsGL AccountsCollective ProcessingCompany Code Data
TCode:OB_GLACC12
…
…
…
…
…
…
…
…
17

Company Code : LAP
G/L Account : 400000 To 499999
Execute
Replace Field status group with ‘G002’ for all GL accounts
Save
6. Creation of Cost Centre
SAP Easy AccessAccountingControllingCost Center AccountingMaster
DataCost
CenterIndividual ProcessingCreate
Tcode: KS01
Extras menuSet Controlling Area
Enter
Cost center: 1001
Valid From : 1.4.2011 to : 31.12.9999
Enter
Name : Body shop
Description : Body shop
Person Responsible : Mr. T
Cost Center Category : 1
Hierarchy Area : STD_HIER
Business Area : LANZ
Currency : INR
Save
18

Enter to ignore the warning msg
Cost Center : 1002
Reference
Cost Center : 1001
Enter
Replace the Name & Description with ‘ Assembling’
Person responsible : Mr. T
Save
Cost Center : 1003
Reference
Cost center: 1001
 Enter
Replace the Name with ‘Paint shop’
Replace the Description with ‘Paint shop’
Person Responsible : MR. T
Save
Cost Center : 2001
Reference
Cost center: 1001
 Enter
Replace the Name with ‘Processing’
Replace the Description with ‘Processing’
Person Responsible : MR. T
Save
7. Creation CC Groups
Tcode : KSH1
19

Up to Master Data same path
CostCenter Group Create
Cost Center Group : PROD
Enter
Description : Production cost
Insert Cost Center button
PROD
1001 Body Shop
1002 Assembling
1003 Paint Shop
Save
8. Creation of CE groups
Tcode :KAH1
Up to Master Data same path
Cost Element GroupCreate
Cost element group : ADMIN
Enter
Description: Admn Cost
Insert Cost Element button
ADMIN
400591 Travelling Exp.
Save
Cost element group : PERSNL
Enter
Description : Personal cost
PERSNL
20

400500 Salaries
(Enter GL accounts like Wages , Bonus etc)
save
2. End User:
1. Posting of transaction in FI
Tcode :F-02
Doc Date : Type : SA
Posting Key : 40 Account : 400500 (Salaries)
Enter
Amount : 27000
Cost Center : 1001
Text : Salaries Payment
Posting Key : 40 Account : 400600(Rent)
Enter
Amount : 18000
Cost Center : 1001
Text : Rent Payment
Posting Key : 50 Account : 200691(Cash)
Enter
21

Amount : *
Bus area : LANZ
Text : Expenses Payment
DocumentSimulatePost
Post one more document for Rent 9000.00 & Salaries 36000.00 for Cost Center ‘ 1002’
2. Display CC Report
Tcode:KSB1
Up to Cost Centre Accounting same path
Information SystemReports for CostCenter AccountingLine itemsCost Center:
Actual Line Items
Cost Element : 400500, 400600
Execute
Change Layout button
Find button
Search term : ‘Business’
Enter
Select ‘Business Transaction’ under Column Name
Left arrow button
Select ‘Document Number’ under Column Name
22

Select ‘Ref Document Number ‘ under Column Name
Enter
Make a note of Business Transaction , Doc no, Ref doc no.
RefDoNo is Fi document
DocumentNo is CO document
3. Display CO Document
Tcode:KSB5
Same Path CO Documents: Actual Costs
Document Number : 090000000
Execute
4. Repost CO Line item
Info : This function is used to rectify posting to wrong CO objects. For eg if during FI posting
it is been posted to wrong CC , you transfer to right CC without having impact on FI posting.
In this transaction only a CO document is generated.
Tcode:KB61
Up to Cost Centre Accounting same path
Actual postingsRepost Line ItemsEnter
Document Number : 1000000024
Company Code : LAP
Fiscal year : 2011
Execute
Value Tran curr Acct Assgt 1
11000 1003
7000 1003
23

Enter
(Screen is updated as shown in the following image)
Post
5. Display Cost Center Report
Tcode: KSB1
Enter
Execute
24

6. Creating Common Cost center
Tcode:KS01
CostCenter : 2000
Valid from : 1.4.2012 to : 13.12.1999
Enter
Name : Common for CC 1001, 1002, 1003
Person responsible Mr. T
CostCenter Category : 1 (Prod)
Hierarchy area : STD_HIER
Busines area : LANZ
Currency : INR
Save
7. Posting to Common Cost center
Tcode F-02
1.Post one document for Salary
Amount : 36000
Cost Centre : 2000
2. Post one document for Rent
Amount : 9000
25

Cost Centre : 2000
8. Repost Costs:
Info: This functionality is used to simplify FI postings. For eg FI user can post to common CC
if the amount belongs to multiple CCs. Later cost accountant can transfer the amount to
individual CCs without having impact on FI posting. In this transaction only a CO document
is generated.
Tcode: KB11N
Up to Cost Centre Accounting Same path
Actual posting
Manual Reposting of Costs
 Enter
Extra menuSet Controlling area
Enter
CCtr (old) Cost Elem. Amount CCtr (new)
2000 400500 12000 1001
2000 400500 10000 1002
2000 400500 14000 1003
2000 400600 3000 1001
2000 400600 3000 1002
2000 400600 3000 1003
Post
9. Display Cost Center Report
26

Tcode: KSB1
CostCenter Group : PROD
Execute
Back button
Cost centre : 2000
Multiple Entries button
Single value
1001
1002
1003
2000
Copy button
Execute
10. Period Lock
At end of the month we lock the previous month
FI CO
PPV Period lock
Open and close Posting Period for Account
type & accounts
lock& unlock period for business transaction
Eg : (COIN, RKU1)
Tcode : OKP1
Path:
AccountingControllingCostcenterAccountingEnvironmentPeriodlockChange
Controlling area : LAP
Fiscal Year : 2011
Actual button
Locking transaction for all period:
27

Keep the cursor on transaction ‘CO through posting from FI’
Lock transaction button
Lock period for all transactions :
select the period
Lock period button
Save
11. Planning Cost Centre wise
Tcode : KP06
Up to CostCenter Accounting same path
PlanningCost and Activity InputsChange
Version : 0
From period : 1
To period : 12
Fiscal Year : 2011
Cost centre : 1001
Cost element : 400500
Form-Based
Overview screen button
Costelement Plan fixed cost Distribution key
400500 240000 1 (Equal distribution)
…
…
…
…
28

Select the cost element 400500
Period screen button
(Next image shows period wise planned costs)
Post
12. Display Variance report
Tcode : S_ALR_87013611
Path: up to CostCenter Accounting Same path
Information systemReports for CostCenter AccountingPlan/Actual Comparisons
Cost
Centers:Actual/Plan/ Variance
Fiscal Year : 2011
From Period : 5 (Current period)
To Period : 5
29

Plan Version : 0
Or Values : 400500
Execute
30

3. Allocations
Periodic allocations are done for planning data at the beginning of period (posting date
will be 1st
day of the period).
Periodic allocations are done for actual data at the end of period (posting date will be
last day of the period).
.
The following periodic allocation methods are availble in SAP . They can be used for
allocating both planned and actual costs/activity quantities.
Allocations
Distribution Periodic
Reposting
Asessment Indirect activity
allocation
Used for allocating
primary costs
Similar to
distribution
Used for
allocating primary
and secondary
costs
Used for allocating
activity type ( like Man
Hrs , Mach Hrs etc)
quanities
Primary cost
elements are used
Similar to
distribution
Secondary cost
elements
(category :
Assesment ) are
used
Secondary cost
elements(category :
Internal allocation) are
used
Detailed breakup at
cost element level is
available
Similar to
distribution
Data is
summerized on
assesment cost
element/s
Data is summerized on
allocation cost element/s
Used for plan and
actual costs
Used for actual
costs
Used for plan and
actual costs
Used for plan and actual
costs
Detailed analysis is
available at sender
and receiving cost
center
Analysis is available
at receiving cost
center only
Used if sender cost
center is important
for cost analysis
Eg : Cafetaria
Used if sender is
just a cost collector
cost center
Used just to
simplify account
assignments during
FI postings
eg : Comon CC
Creates more no of
line items,uses more
memory compared to
periodic reposting
Creates less no of
line items,uses less
memory compared
to distribution
31

Direct Activity allocation : is used for recording actual quantities of activity types
consumed by the receving CO object. This allocation happens as and when an activity
type is consumed by the receiving cost center . So this is not a periodc allocation.
KB21N is the TCode used .
1. Cost Center relatioships:
Cost Centers used :
Cost Center Cost Center Name Costcenter category
1001 Bodyshop A : Production
1002 Assembling
1003 Paintshop
1004 Cafetaria K : Service
1006 Cost Collector 9 : Common
1008 Plant mainatance B: Maintanance
1009 Quality control N:Quality assurance
1011 Plant Admin C: Administration
2. Assesment
Cost center cafeteria is used by other cost centers as shown in the following table
Allocation method used is assesment.
SKF (no of emplyees) is the allocation criteria.
Ie . Cafetaria charges are to be allocated based on the no of employees .
Note : Cost Center cafeteria itself has 5 employees
Sender CostCenter Reciving cost Center No of emplyees
1004(Cafetaria)
1001 75
1002 100
1003 75
1004(Cafetaria) 5
1008 20
1009 25
3. Periodic Reposting :
To simplify the FI postings we use cost collector cost center. We can post costs like
rent , Electricity charges to cost collector cost center during the period. At period end
we allocate to 3 production cost centers using allocation method periodic reposting.
Rent is to be allocated based on percentage basis
32

Electricity charges is to be allocated based on no of units ie SKF : EU (Electric Units)
Sender CostCenter Reciving cost Center Rent Electricity charges
1006(Cost collector)
1001 50% As recorded
4. Distribution:
Cost center plant admin takes care of 3 production cost centers. Costs like salaries of
administration department , stationery charges, vehicle maintanance , travelling
expenses are recorded in the cost center.
At period end we allocate all the costs to 3 production cost centers using allocation
method distribution.
Salaries is to be allocated based on number of employees in the receiver cost center
Stationery charges , vehicle maintanance , travelling expenses are to be allocated
based on percentage basis.
Sender
CostCenter
Reciving cost
Center
Salaries Stat chrges Vhcle maint TrExp
1011(Plant Admin)
1001 75 25% 30% 20%
1002 100 50% 60% 70%
1003 75 25% 10% 10%
5. Indirect activity allocation:
Cost center quality control gives quality check service to 3 production cost centers.
Activity type tesing hours(Tst Hrs) is to be allocated to 3 production cost centers
Quantity of Tst Hrs is allocated based on the number of tested items .
Allocated activity type is Tst Hrs and allocation basis is SKF (test items)Allocation
method used is indirect activity allocation.
Sender CostCenter Reciving cost Center Tested items
1009(Qulatity control)
1001
1002
1003
6. Direct activity allocation:
Cost center plant maintenance gives maintenance service to 3 production cost centers.
Activity type maintenance hours(Mnt Hrs) is to be allocated to 3 production cost centers
33

Actual quantity of Mnt Hrs is recorded in the receiving cost center when the services
are consumed.
Allocated activity type is Mnt Hrs and Allocation method used is direct activity
allocation.
Sender Cost Center Reciving cost Center
1008(Plant maintanance)
1001
1002
1003
34

4. Allocation by Assessment using SKF
SKF(Satistical Key Figures) is used as a basis to allocate costs from one cost centre to
other.If total number of employees in 3cost centers is 300. Cafetaria charges are to be
shared between 3 cost centers based on the number of employees.
Sender CostCenter Reciving cost Center No of emplyees
1004(Cafetaria) 1001 75
1002 25
1003 200
Costs recorded in cost center Cafetaria by FI postings :
Cost Center Primary Cost elements Costs incured
1004(Cafetaria) 400500 (Salaries)
400600(Rent)
45000.00
27000.00
Total cafeteria charges 72000.00
Formula used for allocation : (No of employees /Total no of employees)* Total amount
Eg : Cost allocation for cost center 1001 = (75/300)*72000.00 = 18000.00
Allocation of Cafetaria charges to 3 cost centers:
Sender
CostCenter
Sending
Amount
Sec.Cost element Reciving cost
Center
Allocated
amount
1004(Cafetaria) -18000.00 10000000(Cafetari
a charges)
1001 18000.00
-6000.00 1002 6000.00
-48000.00 1003 48000.00
-72000.00 72000.00
Summary of the above transactions:
Sender
CostCenter
Posted/Allocated
amounts
Prim/Sec Cost
element
Reciving
cost Center
Allocated
amount
1004
(Cafetaria)
45000.00 400500 (Salaries)
27000.00 400600(Rent)
-18000.00 10000000(Cafetaria
charges)
1001 18000.00
-6000.00 1002 6000.00
-48000.00 1003 48000.00
Balance 0.00 Total 72000.00
35

allocation
1. Settings
1. Create Cost Centre
Tcode : KS01
Enter
Cost Centre : 1004
Enter
Name : Cafetaria
Descritpion : Cafetaria
Person responsible : MR. k
Cost Center Category : 9 (Allocation cost ctr)
Currency : INR
Save
2. Create No. Ranges interval for Business transaction
RKS RKIU
Tcode : KANK
CO Area : LAP
Maintain Groups Button
√ No. Range for CO Document (LAP)
Double click on Business Transactions RKS, RKIU,
Save
Continue
3. Create SKF
36

Tcode : KK01
SAP Easy AccessAccountingControllingCost Center AccountingMasterData
Statistical Key FiguresIndividual ProcessingCreate (KK01)
Stat. key figure : EMP
Enter
Name : Employee
Stat. key fig. UnM. : EA (Each)
(Unm = Units of Measure)
Fxd val
Save
4. Enter SKF
Tcode : KB31N
Up to Cost Center Accounting same path
Actual PostingsStatistical Key FiguresEnter
Rec. CCtr StatKF Total Quantity
1001 EMP 75
1002 EMP 25
1003 EMP 200
Save
5. Allocation method (Assessment Method):
1. Creation of secondary cost element
Tcode :KA06
SAP Easy AccessAccountingControllingCost Element AccountingMaster Data
Cost ElementIndividual ProcessingCreate Secondary
Cost Element : 10000000
Enter
Name : Cafetaria charges
Description : Cafetaria charges
CElem category : 42 (Assessment)
Save
…
…
…
…
37

2. Creation of Assessment Cycle
Scenario: Cafetaria charges are to be shared between 3 cost centers based on number of
employees
Option 1:
Assesment cycle 1 for Salaries
and Rent
Segment 1 for Salaries
Segment 2 for Rent
Option 2:
Assesment cycle 1 for
Salaries and Rent
Segment 1 for
Salaries& Rent
Option3:
Assesment cycle 1 for
Salaries
Assesment cycle 2 for Rent
Segment 1 for Rent
We are using option 1 for the following configuration scenario
SPROControllingCost Center AccountingActual PostingsPeriod-End Closing
AssessmentMaintain Assessment
Double click on Create Actual Assessment
Cycle : LAP1
Start Date : 1.4.2012
 Enter
Text : Assesment of Cafertia Charges
Indicators
√ Iterative
Attach segment button
Segment Name : SAL
Description : Salary Assessment
Assessment CEle : 1000000000
Sender Rule : 1 posted amounts
Share in % : 100
Actual value origin
Receiver rule : Variable portions
Var . portion type: Actual Statistical Key Figures
Senders/Receivers tab:
From To Group
Sender
Cost Centre 1004 - -
Cost Element 400500 - -
…
…
…
…
38

Receiver
Cost centre - - PROD
Receiver Tracing Factor tab:
From
Stat. key fig. EMP
Segment Name : RENT
Description : Rent Assessment
Assessment CEle : 1000000000
Share in % : 100
39

Sender/Receivers tab
From To Group
Sender
Receiver
From
Stat. key fig. EMP
 Save
Continue
1. Enduser
1. Posting of Rent & Salary in CC 1004
Tcode : F-02
40

40 Salary
40 Rent
50 Cash *
2. Execution of Assessment cycle (Month end activity)
T code : KSU5
Period-End ClosingSingle FunctionsAllocationsAssessment
Period : 5 To 5
Fiscal Year : 2012
√ Test Run
√ Details Lists
Cycle
LAP1
Enter
Execute
Double click on the item
Back button 2 twice
Yes button to leave the list
Test Run
Execute
3. Cost Centre Report
Tcode : KSB1
CostCenter: 1004
Costelement : 10000000
Execute
Back button
CostCenter: 1001 To 1003
Costelement : 1000000000Multiple selection button
Select Single values tab
Single values
1000000000
400500
41

400600
Copy button
Execute
42

5. Allocation by Distribution
Cost center plant admin takes care of 3 production cost centers. Costs like salaries of
administration department , stationery charges, vehicle maintanance , travelling
expenses are recorded in the cost center.
At period end we allocate all the costs to 3 production cost centers using allocation
method distribution.
Salaries is to be allocated based on number of employees in the receiver cost center
Vehicle maintanance are to be allocated based on percentage basis.
Sender CostCenter Reciving cost
Center
Salaries Rent Vhcle maint
1011(Plant Admin)
1001 75 25% 30%
1002 25 50% 60%
1003 200 25% 10%
Costs recorded in cost center Plant admin by FI postings :
Cost Center Primary Cost elements Costs incured
1011(Plant Admin)
400500 (Salaries)
400600(Rent)
Vehicle maintenance
72000.00
18000.00
27000.00
Total Plant admin
charges
81000.00
Sender
CostCenter
Sending
Amount
Cost element Reciving cost
Center
Allocated
amount
1011(Plant
Admin)
-18000.00 400500 (Salaries) 1001 18000.00
-6000.00 1002 6000.00
-48000.00 1003 48000.00
-72000.00 72000.00
400600(Rent)
43

2. Settings
Tcode : KS01
Enter
Cost Centre : 1011
Enter
Name : Plant Admin
Descritpion : Plant Admin
Cost Center Category : C: Administration
Currency : INR
Save
2. Create GL account/cost element Vehicle maintenance
G/L account 400203
RKIV
Tcode : KANK
CO Area : LAP
Double click on Business Transactions RKIV (Actual Overhead Distribution)
Save
Continue
4. Create SKF (already done)
Tcode : KK01
44

Stat. key figure : EMP
Enter
Name : Employee
Fxd val
Save
5. Enter SKF ((already done))
Tcode : KB31N
1001 EMP 75
1002 EMP 25
1003 EMP 200
Save
6. Allocation method (Distribution):
1. Creation of Distribution Cycle
Scenario: Plant admin charges are to be shared between 3 cost centers based on different
criteria
Option 1:
Cycle 1 for Salaries and Rent
Segment 2 for Rent
Segment 3 for Vehicle
maintenance
Option 2:
Cycle 1 for Salaries and
Rent
Segment 1 for
Salaries, Rent
& Vehicle maintenance
Option3:
Cycle 1 for Salaries
Assesment cycle 2 for Rent
Segment 1 for Rent
Assesment cycle 3 for Vehicle
maintenance
Segment 1 for Vehicle
…
…
…
…
45

maintenance
We are using option 1 for the following configuration scenario
DistributionDefine Distribution
Double click on Create Actual Distribution
Cycle : LAP2
 Enter
Text : Plant admin costs distribution
Indicators
√ Iterative
Segment Name : SAL
Description : Salary Distrbution
Share in % : 100
Actual value origin
From To Group
Sender
Receiver
…
…
…
…
46

From
Stat. key fig. EMP
Segment Name : RENT
Description : Rent Distribution
Share in % : 100
Receiver rule : Fixed percentages
From To Group
Sender
47

Receiver
Cost Ctr Portion/percent
1001 25%
1002 50%
1003 25%
Segment Name : Veh
Description : Vehcile maintance distribution
Share in % : 100
From To Group
Sender
Receiver
1001 30%
1002 60%
1003 10%
 Save
Continue
2. Enduser
48

4. Posting of Rent , Salary ,Veh maintanance in CC 1011
Tcode : F-02
40 Salary 45000
40 Rent 27000
40 Vehcile maintance 18000
50 Cash *
5. Execution of Distribution cycle (Month end)
T code : KSV5
Period-End ClosingSingle FunctionsAllocationsDistribution
Period : 5 To 5
Fiscal Year : 2012
√ Test Run
√ Details Lists
Cycle
LAP2
Enter
Execute
Back button
Test Run
Execute
Tcode : KSB1
CostCenter: 1011
Costelement : 400500, 400600,400203
Execute
Back button
Costelement : 400500, 400600,400xxx
Single values
49

400xxx
400500
400600
Copy button
Execute
50

6. Allocation by Periodic Reposting
To simplify the FI postings we use cost collector cost center. We can post costs like
rent , Electricity charges to cost collector cost center during the period. At period end
we allocate to 3 production cost centers using allocation method periodic reposting.
Rent is to be allocated based on percentage basis
Electricity charges is to be allocated based on no of units ie SKF : EU (Electric Units)
Sender CostCenter Reciving cost Center Rent Electricity charges
1006(Cost collector)
1. Settings
Tcode : KS01
Enter
Cost Centre : 1006
Enter
Name : Cost collector
Descritpion : Cost collector
Cost Center Category : 9 Allocation
Currency : INR
Save
51

2. Create GLa/c & cost element Elec Charges
G/L account : 400392
RKIB
Tcode : KANK
CO Area : LAP
Double click on Business Transactions RKIB (Actual Periodic Repostings)
Save
Continue
4. Create SKF
Tcode : KK01
Stat. key figure : EU
Enter
Name : Electrical Units
Stat. key fig. UnM. : KWH
Tot val
Save
5. Allocation method (Periodic Reposting):
1. Creation of Periodic Reposting cycle
Periodic RepostingDefine Periodic Reposting
Double click on Create Actual Periodic Reposting
…
…
…
…
52

TCode : KSW1
Cycle : LAP3
 Enter
Text : Prim costs reposting
Indicators
√ Iterative
Segment Name : ELEC
Description : Elcricity bills reposting
Share in % : 100
Actual value origin
From To Group
Sender
Receiver
From
Stat. key fig. EU
…
…
…
…
53

Segment Name : RENT
Description : Rent reposting
Share in % : 100
From To Group
Sender
Receiver
1001 50%
1002 20%
1003 30%
Save
3. Enduser
7. Posting of Rent , Elc bills , in CC 1006
Tcode : F-02
54

40 Elc bills 45000
40 Rent 27000
50 Cash *
8. Enter SKF (Month end)
Tcode : KB31N
1001 EU 750
1002 EU 250
1003 EU 2000
Save
9. Execution of Periodic reposting cycle (month end)
T code : KSW5
Period-End ClosingSingle FunctionsPeriodic Reposting
Period : 5 To 5
Fiscal Year : 2012
√ Test Run
√ Details Lists
Cycle
LAP3
Enter
Execute
Back button
Test Run
Execute
55

Tcode : KSB1
CostCenter: 1006
Execute
Back button
Costelement : 400600Multiple selection button
Single values
400600
400392
Copy button
Execute
56

7. Indirect Activity Allocation using SKF
Cost center quality control gives quality check service to 3 production cost centers.
Two activity types are used .
1.Testing hours-Manual (Act type category = 2 Indirect determination, indirect
allocation)
2.Testing hours-Automated(Act type category =3 Manual entry, indirect allocation)
Both activity types are allocated on the basis of SKF (test items) . Allocation method
used is indirect activity allocation.
Splitting :
Costs that incured in the costcenter quality control are to be split between the two
activity types . For that we need to define Splitting Structure and assign to the cost
center.
Actual activity valuation :
During allocation activity quantity is valuated with plan price or manually set price
initially when actual price calculation is not done. At the time of actual price calculation
we can optionally revaluate the allocated activity. Variance amount is posted .
After revaluation process sender balance will be zero .
Settings for price calculation ,revaluation and cost component structure :
During Version maintenance we can make settings for price calculation and revaluation
on fiscal year basis.
In the Activity type master data we maintain actual price indicator 5 or 6.
57

Sender CostCenter Reciving cost Center Tested items
1009(Qulatity control)
1001 300
1002 200
1003 220
Costs recorded in cost center Quality control by FI postings :
Cost Center Primary Cost elements Planned Costs
1009 (Quality control) 400500 (Salaries)
400600(Rent)
45000.00
27000.00
Total charges 72000.00
58

1. Settings
Tcode : KS01
Enter
Cost Centre : 1009
Enter
Name : Quality control
Descritpion : Quality control
Cost Center Category : N (Quality Assurance)
Currency : INR
Save
RKL , RKN, KSI0,KSII
Tcode : KANK
CO Area : LAP
Double click on Business Transactions RKL,RKN,RKIL, KSI0,KSII
Save
Continue
3. Create SKF
Tcode : KK01
59

Stat. key figure : ITEM
Enter
Name : Testing items
Tot Values
Save
Tcode :KA06
Enter
Name : Testing chrges-Manual
Description : Testing charges Manual
CElem category : 43 (Internal activity allocation)
Save
5. Creating Activity Type Testing hours-Manual
SAP Easy Access Accounting  Controlling  Cost Center Accounting Master
Data 
Activity type Individual Processing Create
Tcode: KL01
Activity Type : TSHRM
Valid From : 1.4.2011 to 31.12.9999
Enter
Name : Testing Hours--Manual
Description : Testing Hours-Manual
Activity Unit : H
CCtr categories : * (All Cost Centre Categories)
Allocation of default values
ATyp Category :
Allocation Cost Element : 1000000026
Price indicator : 1
…
…
…
…
60

Variation Values for Actual Alloccation
Actl Acty Type Cat. : Blank As in planning
Act. price indicator : 5 Actual price, automatically based on activity
Save
Tcode :KA06
Enter
Name : Testing charges-Automated
Description : Testing charges- Automated
Save
7. Creating Activity Type Testing hours-Automated
Data 
Tcode: KL01
Activity Type : TSHRA
Valid From : 1.4.2011 to 31.12.9999
Enter
Name : Testing Hours- Automated
Description : Testing Hours-Automated
Activity Unit : H
ATyp Category : 3 (Manual Entry & Indirect Allocation)
Price indicator : 1 Plan price, automatically based on activity
Actl Acty Type Cat. : Blank As in planning
61

Save
8. Creating Cost Element Group
TCode :KAH1
CO Area : LAP
Cost element group : OH_COST
Enter
Description : OH Cost
Cost Element button
400500
400600
Save
9. Creating Activity Type Group
TCode :KLH1
CO Area : LAP
Activity Type group : TEST
Enter
Description : Testing
Activity Type button
TSHRA
TSHRM
Save
10. Define Splitting Structure
TCode : OKES
 Activity Allocation SplittingDefine Splitting Structure
Double click on ‘Splitting rules’ folder
New Entries
Rule Text Meth Wt
LAP1 21 .
Enter
Select rule ‘LAP1’
62

Double click on ‘Selection for rules’ folder
New Entries
Field Label From Value
Version 0 (Co area LAP/ version 0)
Double click on ‘Splitting Structures’ folder
New Entries
Structur
e
Text
L1 LAP Splitting Structure
Enter
Select structure ‘L1’
Double click on ‘Assignments’ folder
New Entries
Assignment Text Rule Text
LA1 LAP1
Enter
Select assignment ‘LA1’
Double click on ‘Selection for assignments’ folder
New Entries
Field Label From Value To Value Group
Cost Element
Acivity Type
Save
Continue
63

11. Assign Splitting Structure to Cost Centers
Same Path
Cost centre : 1009
All versions
Fiscal Year : 201x
Change button
√ 1009
Click on ‘L1’ under splitting Structures
Assign button( )
Save
Continue
Category 3 Direct entry
Indirect Allocation
Category 2 Indirect entry Indirect Allocation
Planning :
Activity planning allowed Activity planning not allowed
Price can be calculated Price cant be calculated because sender quantity is
unknown
Actual:
Enter Sender Activity Enter Sender Activity not allowed
Price can be calculated Price cant be calculated sender quantity is unknown
Quantity and cost can be
allocated
Only quantity can be allocated
Sender quantity is determined only after activity
allocation
Then only we can calculate the price
Sender Quantity : 720 hrs
Allocated Quantity :
300+200+220 hrs
Allocation Basis :
300:200:220 items
Allocated quantity : 300*1hr +200*1hr+220*1hr = 720 hr
720 items *1hr = 720 hrs
…
…
…
…
…
…
…
…
64

12. Define Cost Component Structure
 Activity AllocationPrice CalculationSettings for Cost Component Split Define
Cost Component Structure
TCode:OKTZ
 Double click on Define Cost Component Structure folder
Select Cost Comp Str ‘01’
Copy As button
Cost Comp
Str
Active Prim.Cost Comp .Split Name
L2 √ √ LAP Actvity Cost Comp Str
Enter
Enter to confirm the message
Select Cost Comp Str ‘L2’
Double Click on ‘Cost Components with Attributes’ folder
Change the name as shown in the table
Cost Comp
Str
Cost Com Name of Cost Comp
L2 10
L2 30
L2 50
L2 90
Delete the remaining cost components
Save
Double Click on ‘Assignment :Cost Component – Cost Element Interval’ folder
New Entries button
Cost Comp
Str
Chart of Accts From cost el. Cost Component
L2 LACA 30
L2 LACA 50
L2 LACA 90
Save
 Double click on Define Cost Component Structure folder
Cost Comp
Str
Active Prim.Cost Comp .Split Name
65

Save
13. Change Revaluation/Price calculation/Cost comp
Structure settings in Version 0
TCode : OKEQ
SPROControlling General ControllingOrganizationMaintain Versions
Select version ‘0’
Double click on ‘Settings for Each Fiscal Year ’ folder
Version : 0
Enter
Double click on the current fiscal year
Price calculation tab
Purely Iter. Price
Plan
Method : Periodic price
Actual
Revaluation : Same line
Cost Comp. Str. :
Save
(Repeat the process for other fiscal years)
14. Allocation method (Indirect Activity Allocation):
1. Creation of Indirect Activity Allocation Cycle
TCode : KSC1
 Activity Allocation  Indirect Activity AllocationDefine Indirect Activity Allocation
Double click on Create actual indirect activity allocation
Cycle : LAP4
66

 Enter
Text : Allocation of testing activity
Segment Name : TEST_A
Description : Tstng hr-Automate Allocation
Sender Rule : 1 posted quantities
Share in % : 100
Actual value origin
From To Group
Sender
Activity Type TSHRA - -
Receiver
From
Stat. key fig. ITEM
Segment Name : TEST_M
Description : Tstng hr-Manual Allocation
Sender Rule : Quantities caulated inversly
Share in % : 100
Actual values
From To Group
…
…
…
…
…
…
…
…
67

Sender
Activity Type TSHRM - -
Receiver
Sender Values tab:
Sender
Cost Ctr ActTyp Factor per 100 AUn
1009 TSHRM 100 H
From
Stat. key fig. ITEM
Save
2. Enduser
1. CC Planning
Tcode : KP06
Version : 0
From Period : 1
To Perod : 12
Fiscal Year : 201
Cost centre : 1009
Cost element group: OH_COST
Form based
Overview Screen button
Costelement Plan fixed cost Distribution
400500 1 (Equal distribution)
400600 1
Post
2. Activity planning for TSHRA/ TSHRM
…
…
…
…
68

SAP Easy AccessAccountingControllingCost Centre
AccountingPlanningActivity
Ouput /PricesChange
Tcode : KP26
Version : 0
From Period : 2
To Perod : 2
Fiscal Year : 2011
Cost centre : 1009
Activity Type group: TEST
Form based
Activity Type Plan Activity EquiNo
TSHRA 1
TSHRM 2
(EquNo is the basis for splitting)
Make sure the activity type category is correct before posting and going further.
Post
3. Splitting (Planned cost)
TCode : KSS4
Same path
Enter
Cost centre : 1009
…
…
…
…
…
…
…
…
69

Version : 0
Period : 3
Fiscal Year : 201x
√ Test Run
√ Details List
Execute
(Splitting should be in 2:1 ratio )
Cost Element button(to cost element wise splitting)
Back button
Test Run
Execute
4. Calculating Activity Price(planned) for TSHRA
Upto Cost Centre Accounting same path
PlanningAllocationsPrice Calculation
Tcode : KSPI
All Cost Centres
Version : 0
Period : 2 To 2
Fiscal Year : 2011
√ Test Run
√ Details List
Execute
Display primary cost component split :
…
…
…
…
70

Select a line Goto menuComponents
Save
Enter
Back button
(Activity price only calculated for TSHRA and should be 33.33 )
5. Enter SKF
Tcode : KB31N
1001 ITEM 300
1002 ITEM 200
1003 ITEM 220
Save
Tcode : F-02
40 Salary
40 Rent
50 Cash *
71

7. Sender activities for TSHRA
TCode :KB51N
Send. CCtr SAtyTyp Total Quantity
1009 TSHRA
Save
8. Indirect Activity Allocation
T code : KSC5
Period-End ClosingSingle FunctionsAllocations Indirect Activity Allocation
Period : 5 To 5
Fiscal Year : 2012
√ Test Run
√ Details Lists
Cycle
LAP4
Enter
Execute
Segments button
Select segment ‘TEST_A’
Line items button( )
Unhide total quantity column.
(Quantity and costs are allocated . Actiivty type is valuated with planned price.)
Back button
Select segment ‘TEST_M’
Line items button( )
72

(Only quantity is allocated as planned price/manually set price is not availlable.)
Back button 2 twice
Test Run
Execute
Tcode : KSB1
CostCenter: 1009
Execute
(Only quantity is allocated for activity type TSHRM .
Both quantity and cost both are allocated for activity type TSHRA )
73

10. Price Calculation(Actual)
T code : KSII
Period-End ClosingSingle FunctionsPrice Calculation
All Cost Centres
Period : 2 To 2
Fiscal Year : 2011
√ Test Run
√ Details List
Execute
(Activity price should be 37.00 For TSHRA 75 for TSHRM)
Save
Yes button
Back button
Tcode : KSB1
CostCenter: 1009
Execute
…
…
…
…
74

(Apart from quantity allocated , costs allocated should be displayed for TSHRM.
For TSHRA diference amount is posted)
75

8. Direct Activity Allocation
Cost center plant maintenance gives maintenance service to 3 production cost centers.
Activity type to be allocated is Maintenance hours(MNTHR) of category 1 ie Manual
entry, manual allocation
Sender Cost Center Reciving cost Center
1008(Plant maintanance)
1001
1002
1003
Business transaction involved is RKL . Allocation method is called direct activity
allocation.
The allocated activity quantities are entered directly using TCode KB21N .
(Eg :Sender can be OH cost center and receiver can be a production cost center )
or
Direct allocation happens automatically through production order confirmations (TCode
: CO11N)
(Eg : Sender is production cost center receiver is a cost object . Cost object can be a
production order or a product cost collector)
In this scenario activity type is valuated initially by planned price which is set
manually(plan price indicator 3 ). At the time of actual price calculation activity type is
revaluated and difference is allocated to receivers.
1. Settings
Tcode : KS01
Enter
Cost Centre : 1008
Enter
Name : Plant maintanance
Descritpion : Plant maintanance
76

Currency : INR
Save
Tcode :KA06
Enter
Name : Plant Maintenance Charges
Description : Plant Maintenance Charges
Save
3. Creating Activity Type Maintenance hours
Data 
Tcode: KL01
Activity Type : MNTHR
Valid From : 1.4.2011 to 31.12.9999
Enter
Name : Maintenance hours
Description : Maintenance hours
Activity Unit : H
ATyp Category :
77

Price indicator : 3 Determined manually
Save
RKL
Tcode : KANK
CO Area : LAP
Double click on Business Transactions RKL,
Save
Continue
2. Enduser
Tcode : KSB1
CostCenter: 1008
Execute
3. Set Activity price(planned) manually
Tcode : KP26
Version : 0
From Period : 1
To Perod : 12
Fiscal Year : 2011
Cost centre : 1008
Activity Type : MNTHR
Form based
…
…
…
…
78

Activity Type Fixed price
MNTHR 100
Make sure the activity type category, price indicator is correct before posting and
going further.
Post
4. Direct Activity Allocation
TCode :KB21N
Actual PostingsActivity AllocationEnter
Scrn var.: Cost center Input Type : List Entry
Send. CCtr SAtyTyp Rec.CCtr Total Quantity
Post
Tcode : KSB1
CostCenter: 1008
Execute
6. Price Calculation
T code : KSII
Period-End ClosingSingle FunctionsPrice Calculation
79

Cost Centre group
Period : 2 To 2
Fiscal Year : 2011
√ Test Run
√ Details List
Execute
(Activity price should be 112.50)
Save
Yes button
Back button
Tcode : KSB1
CostCenter: 1008
Execute
(Balance should be 0 in the sender CC )
…
…
…
…
80

9. Internal Orders(I.O)
Scenario1 : (Telephone wise expenses )
There is one GL account ‘Telephone Expenses’ and there are 5 telephones
Problem : How to record telephone wise expenses ?
Solution : Create an I.O for each telephone. While posting Tel phone expenses
in FI, TeI No can be entered in Internal order field.
Scenario 2 : (Vehicle wise expenses)
There is one GL account ‘Petrol Exp’ and one GL account ‘Vehicle Maintenance’ and
there are 10 vehicles.
Problem : How to display vehicle wise expenses.
Solution : Create an I.O for each vehicle
Scenario 3 : (Event wise expenses)
There is a cost centre for ‘sales department’. Several activities like promotional events
happen in the department. For every event certain expenses incur .
Problem : Event wise expenses are to be recorded.
Solution : Create an I.O for each event .
Cost Centre & Internal Orders :
Internal Orders are of two types Real and Statistical.
Statistical IO : are used merely for reporting purpose.
In the following two cases, CC is the real CO -object and IO is statistical object.
Case1 :
While posting in FI , CO-object like Cost centre should be entered apart from IO .
81

Case2 :
IO can be assigned to a CC(as shown in the next image).
While posting in FI, only IO need to be entered.
Real IO : are used for settlement purpose .While posting in FI , only IO should be
entered. Amount in the IO can be settled to Cost centre(s) later . Balance in the IO
becomes zero after complete settlement .
1. Settings
1. Creation of internal Order Types
SPROControllingInternal ordersOrder Master DataDefine Order types
New Entries
Order category : 01 ie Internal Order (Controlling)
Enter
Order type : TEL
Description : Telephone
Planning profile : 000001
Object class : Overhead cost
√ Release immediately
Assign/change interval button (next to Number range interval)
82

Yes button
Continue
Not assigned
Click on TEL
Double click on ‘Motor pool A-zzzzzzzz(external)’
Save
Continue
2. Creation of FS Group
Tcode:OBC4
Select FStV ‘LAFS’
Double click on Field status groups folder
 Select Field status group ‘G002’
Copy as button
Change the Field Status group to ‘G015’
Change the Text to ‘Cost accounts (CC req &IO Optinl) ‘
Enter
Double click on FSG ‘G015’
Optional.Entry
CO/PP order
Save
Continue
3. Creation of Tel expenses A/C
Tcode : FS00
Select GL account 400500 Salaries
Copy button
GL account: 400581
Enter
Change the Description to ‘Telephone expenses’
Create/Bank/interest tab
Change Field status group to ‘G015’
Save
…
…
…
…
83

Edit Cost element button
Valid from : 1.4.2.2012
Enter
Cost Elem Category : 01
Save
4. Creation of Internal order
Tcode: KO01
SAP Easy AccessAccountingControllingInternal OrdersMaster DataSpecial
FunctionsOrderCreate
Order type : TEL
Enter
Order : Tel 040230900
Description : Tel 040230900
Company Code : LAP
Business area : LANZ
Control data Tab
√ Statistical order
Info:Select the check box to make it a statistical IO , else it will be a Real IO
Save
Order type : TEL
Enter
Order : Tel040230901
Description : Tel040230901
(Other fields same as before)
Save
5. Creation of IO group
Tcode : KOH1
Same path upto Master DataOrder Group
Create
Order Group : HYD_TEL
Enter
Description : Hyd telephones
Insert order button
84

HYD_TEL
Tel040230900
Tel040230901
Save
2. End User
1. Posting Telephone Expenses
Tcode :F-02
PstKy : 40 Account : 400581
Enter
Amount : 18000
Cost centre : 1001 Order : TEL040230900
Text : Telephone expenses
Enter
Amount : *
Text : +
Document MenuSimulate
Post
Post one more document for IO TEL040230901
2. Display IO Report
Tcode :KOB1
Up to Internal Orders same pathInformation System Reports for Internal
OrdersLine
itemsOrders: Actual Line Items
Order Group : HYD_TEL
Execute
3. Planning order wise
Tcode : KPF6
Up to Internal Orders same path
PlanningCosts & Activity inputsChange
Version : 0
85

From period : 1
To period : 12
Fiscal Year : 2012
Order group : HYD_TEL
Form-Based
Total plan costs Distribution key
240000 1
Next Combination button (Down arrow)
Total plan cost Distribution key
120000 1
Save
4. Display Variance Reports
Up to Internal Orders same path
Information SystemReports for Internal OrdersPlan/Actual Comparisons
Order: Actual/Plan /Variance
Fiscal Year : 2012
From Period : 5
To Period : 5
Plan version : 0
Order group : HYD_TEL
Cost element group : Blank
Or value(s) : 400581
Execute
…
…
…
…
86

10. Real IO with settlement to CC
Eg : Real IO : Promtional event
Real IO : are used for settlement purpose .While posting in FI , only IO should be
entered. Amount in the IO can be settled to Cost centre(s) later . Balance in the IO
becomes zero after complete settlement .
Requirement : Costs should be captured under a promotional event for the sake of
analysis.
Also the costs should be recorded in CC ‘Sales promotion’.
1. Settings
1. Creation of FS Group
Tcode:OBC4
Select FStV ‘LAFS’
Double click on Field status groups folder
 Select Field status group ‘G002’
Copy as button
Change the Field Status group to ‘G016’
Change the Text to ‘Cost accounts (CC &IO Optinl) ‘
Enter
Double click on FSG ‘G016’
Opt.Entry
Cost Center
CO/PP order
Save
Continue
2. Creation of G/L Promotional expenses
…
…
…
…
…
…
…
…
87

Tcode : FS00
Copy button
GL account: 400518
Enter
Change the Description to ‘Promotional expenses’
Create/Bank/interest tab
Change Field status group to ‘G016’
Save
Valid from : 1.4.2.2012
Enter
Cost Elem Category : 01
Save
Tcode :KA06
Enter
Name : Promotional Expenses
Description : Promotional Expenses
CElem category : 21 (Internal Settlment)
Save
4. Create Cost Center
Tcode : KS01
Enter
Cost Centre : 1017
Enter
88

Name : Sales &Promotion
Descritpion : Sales &Promotion
Cost Center Category : P Sales & Marketing
Currency : INR
Save
5. Maintain allocation structure:
SPROControlling Internal ordersActual posting SettlementMaintain
allocation structures
New Entries
Allocation structure : L1
Text : IO-->CC settlment LAP
Save
Continue
Select Allocation structure ‘L1’
Double click on Assignments folder
New entries
Assignment : LA1
Text : Promotional Expenses
Save
Select ‘LA1’
Double click on Source folder
Enter
89

From cost element : 400518 expenses
Save
Continue
Double click on Settlement cost elements folder
New entries button
Receiver cat By cost element Settlement cost
elem
Name
CTR . 1000000036 Promotional Expense
Save
6. Maintain settlement profiles:
Same path
Double click on Maintain settlement profiles
New entries
Settlement profiles : LAP1
Description : IOCC LAP
To be settled in full
Allocation structure : L1
Indicators
√ 100%-validation
√ %-Settlement
√ Equivalence number
√ Amount settlement
Valid receivers
Cost center : Settlement Required
…
…
…
…
90

Other Parameters
Document type : SA
Max.no. distribution rules : 999
Residence time : 3 months
Save
Continue
New Entries
Enter
Order type : PEVT
Description : Promo Events
General parameters
Settlement prof. : LAP1
Yes button
Continue
Not assigned
Click on PEVT
Double clikc on ‘Motor pool A - ZZZZZZZZZZZZ (external)’
Save
8. Maintain number range for settlement documents:
Same path
91

TCode : SNUM
Maintain groups button
Create button
Group : Settlemnt Docs LAP
From No. To Number
090000000 0999999999
Save
Continue
Back button
Click on LAP
Double click on Settlemnt Docs LAP
Save
9. Maintain Number Ranges for Bus transaction KOAO
Tcode :KANK
CO Area : LAP
 Maintan Groups button
Click on KOAO
 Double click on ‘No. ranges for CO documents (LAP)’
Save
2. End User
1. Creation of Internal order & Settlement rule
Tcode: KO01
SAP Easy AccessAccountingControllingInternal OrdersMaster DataSpecial
FunctionsOrderCreate
Order type : PEVT
92

Enter
Order : EXHST_LAP
Description : Exhibition stall
Company Code : LAP
Control data Tab
Statistical order
Info: Do not select the check box for a Real IO
Goto menuSettlement Rule
New rule button( )
Settlement Reciever
Cost Center : 1017
Percent : 100 %
Valid from : 1..201x to Blank
Save
2. Posting Expenses
Tcode :F-02
Enter
Amount : 18000
Cost centre : Blank Order : EXHST_LAP
Text : Ehibition stall rent
Enter
Amount : *
Text : +
Post
Tcode :KOB1
93

OrdersLine
Order : EXHST_LAP
Cost element : Blank
Execute
4. Settlement :
TCode : K088
Accounting ControllingInternal orderPeriod end closingSingle
functionsSettlement Individual processing
Order : EXHST_LAP
Settlement period : Current month
Fiscal year : 201x
√ Test run
√ Check transaction data
Execute
 Details list button( )
Test run
Execute
TCode :KOB1
OrdersLine
Order : EXHST_LAP
Execute
6. Display CC Report
TCode :KSB1
Cost center : 1017
94

Execute
95

11. Real Time Integration (New GL)
Real Time Integration is a component of New-GL . Previously if users make
any cross company code postings in CO , these transactions do not reflect in FI.
Users had to process a job at month end to allow the system to reconcile the
differences and post corresponding entries in FI ledger. With the new GL, this
reconciliation and posting of entry in FI ledger has become an automatic process .
Scenario : Allocation of costs from CC1 to CC2 . CC1 and CC2 are two costcenters
which belongs to different company codes (Cross company code allocation) . FI posting
should happen automatically in two company codes .
Prerequisites :
1 The two company codes must belong to same CO-Area
2 The two company codes must have same Chart of accounts.
1. Settings :
1. Create second company code ie LAC
Company code LAC should be assigned with
1. same Chart of accounts that is assigned to LAP.
2. same Co-Area that is assigned to LAP
SPROEnterprise StructureDefinitionFinancial
AccoutingEdit,Copy,Delete,Check Company Code
Double click on ‘Copy, delete, check company code’
Copy Org Object button
From Company Code : LAP
To Company Code : LAC
Enter
’Yes’ button to create GL Account Data
’No’ button for different local currency
Enter to ignore the msg
Enter
’Yes’ button to transport number ranges
Continue
96

Keep on pressing Enter
’Yes’ button to transport intervals
Continue
Enter
2. Assign Co-Area
Tcode : OKKP
Double Click on Co-area ‘LAP’
CoCd->CO Area : Cross-companycode cost accounting
 Double Click on Assignment of company code(s) folder
New Entries button
CoCd Company Name
LAC
Save
Continue
3. Activate CoCd Validation in Co-Area
TCode : OKKP
Double Click on Co-Area ‘LAP’
Double click on Activate component/control indicators folder
√ CoCd Validation
Save
Continue
Enter to Ignore wrn msg
4. Deactivate Reconcilition Ledger:
We have to deactivate the Reconcilition Ledger ,(if it is activated ) before using Realtime
Integration.We can use Tcode : OKKP to check the status.
97

We can skip this step in the lab.
Tcode : KALB
SPROControllingCost Element AccountingReconciliation
LedgerActivate/Deactivate Reconciliation Ledger
Deactivate Reconciliation ledger
Execute
5. Creation of Cost Center in Comapany code LAC:
TCode : KS01
Extras menu Set Controlliong Area
Enter
Cost Center : 1010
Enter
Name : Services
Description : Services
Person Responsible : mrt
Company Code : LAC
Currency : INR
Save
Enter to ignore the wrng msg
6. Activate intercompany postings in doc type SA.
98

TCode : OBA7
Double Click on Doc type ‘SA’
√ Inter-company posting
Save
Continue
7. Creation of GL accounts in LAP:
Tcode : FS00
Select GL account ‘400500’
Copy button
G/L Account 400509
Enter
Short Text : FICO Recon account
Field status group : ICCF ie CO <-> FI reconciliation posting
Save
Copy button
G/L Account 200970
Enter
Short Text : LAC account
Field status group : G067
Save
8. Creation of GL accounts in LAC:
Tcode : FS00
Copy button
G/L Account 400509
Enter
Field status group : ICCF ie CO <-> FI reconciliation posting
Save
Copy button
99

G/L Account : 200971
Enter
Short Text : LAP account
Save
Block GL account 200971 for creation in company code LAP
Block GL account 200970 for creation in company code LAC
9. Define Variants for Real time Integration:
SPROFinancial Accounting (New)  Financial Accounting Global Settings (New)
Ledgers Real-Time Integration of Controlling with Financial Accounting  Define
Variants for Real-Time Integration
New Entries
Var. for R-T Integ. : L1
√ R.-Time Integ:Active Key Date:Active from : 1.4. 2012
√ Acct Deter. :Active
Document Type : SA
Ledger Group (FI) : 0L
Text : Varaint for LAP
Use Checkboxes
√ Cross-Company-Code
√ Cross-Profit-Center
√ Cross-Business-Area
Save
Continue
10. Assign Varaints for Real-Time Integration to Company
Codes:
Same Path
 Assign Variants for Real-Time Integration to Company Codes
New Entries
…
…
…
…
100

Company Code Variant for Real-Time Integration
LAP L1
LAC L1
Save
Continue
11. Define Intercompany Clearing Accounts:
Upto Real-Time Integration of Controlling with Financial Accounting same path
 Define Account Determination for Real-Time IntegrationDefine Intercompany
Clearing Accounts
Alterantive path1 :
SPROControllingCost Element AccountingReconciliation LedgerDefine Adjustment
Accounts for Reconciliation Posting
Double click on ‘Maintain Clearing Accounts for Company Codes’
Tcode : OBYA
Alterantive path2:
SPROFinancial AcccoutningGeneral Ledger AccountingBusiness Transactions
Prepare cross company code transactions
Company code 1 : LAP
Company code 2 : LAC
Enter
Posted in : LAP
Cleared against : LAC
Debit posting key : 40 Credit posting key : 50
Account debit : 200970 Account credit : 200970
Posted in : LAC
Cleared against : LAP
Debit posting key : 40 Credit posting key : 50
Account debit : 200971 Account credit : 200971
Save
Continue
101

12. Define Account determination for Real-Time
Integration:
Tcode:OK17
Upto Define Account Determination for Real-Time Integration same path
Define Account determination for Real-Time Integration
Alterantive path :
SPROControllingCost Element AccountingReconciliation LedgerDefine Adjustment
Accounts for Reconciliation Posting
Double click on ‘Define Accounts for Automatic Postings’
Tcode : OBYB
Enter
Change Account Determin. Button
Save
Account
400509
Save
Continue
102

2. Enduser
1. Posting expenses to common CC (1004)
Tcode F-02
Post one document for Salary in company code LAP
Amount : 18000
Cost Centre : 1004
2. Reposing of Costs:
Tcode: KB11N
Extra menuSet Controlling area
Enter
CCtr (old) Cost Elem. Amount CCtr (new)
1004 400500 7000 1010
Post
3. Displaying CO document:
TCode : KSB5
Document Number : 900000000X
Execute
Click on CO document
Enviroment menu-Accounting Documents
(Two FI documents are generated , one in company code LAP the other one in
Company code LAC)
Double click on the Accounting document to be displayed.
Entry in LAP Should be :
Cr Salaries 7000.00-
Dr LAC account 7000.00
Entry in LAC Should be :
Dr Salaries 7000.00
103

Cr LAP account 7000.00-
104

12. Sales/Purchase Tax
Sales tax = Output tax
Purchase tax = Input tax
VAT : Value Added Tax
VAT is a mode of collection of tax
Purchase of RM Sale of FG
Pay purchase tax to Vendors Collect Sales tax from Customers
5000 Rs 7000 Rs
The diff is 2000. This amount is to be remitted to tax authority.
3. Settings
1. Define Tax procedure:
SPROFinancial accounting Financial accounting Global settingsTax on
Sales/Purchases Basic settingsCheck Calculation Procedure
Double click on Define Procedures
New Entries
Procedure Description
TAXIN Ind Tax procedure(LAP)
Save
Create Request button
Short Description: Sales/Pur Tax Settings (LAP)
Enter
Continue
Select Tax Procedure ‘TAXIN’
Double click on Control Data folder
New Entries
Step Ctyp Description Fro To AccKey
100 BASB Base amount
110 MWAS Output Tax 100 100 MWS
120 MWVS Input tax 100 100 VST
Save
105

2. Assign Country to Calculation procedure :
Same path
Position
Country : IN
Enter
Cty Proc
IN TAXIN
Save
Continue
Info:
Tax is configured at country level but not at Comp Code level. This setup is going to
work for all Comp Codes which belongs to India .
3. Define Tax Codes for Sales and Purchases
Upto Tax on Sales/Purchases same path
Calculation Define Tax Codes for Sales and Purchases
Country : IN
Enter
Taxcode : V0
Enter
Description : 0% input tax
Taxtype : V ie inputtax
Check ID √
Continue
Keep the cursor on Output tax(Click)
Deactivate line button
InputTax : 0
Save
Taxcode : V1
Enter
Description : 4% input tax
Taxtype : V ie inputtax
Check ID √
Continue
106

Keep the cursor on Output tax(Click)
InputTax : 4
Save
Taxcode : A0
Enter
Description : 0% output tax
Taxtype : A ie outputtax
Check ID √
Continue
Keep the cursor on Input tax(Click)
OutputTax : 0
Save
Taxcode : A1
Enter
Description : 14.5% output tax
Taxtype : A ie outputtax
Check ID √
Continue
Keep the cursor on Input tax(Click)
OutputTax : 14.5
Save
4. Creation of 2 GL accounts
a. VAT Payable
Tcode: FS00
Select GL account 100800 Expenses payable
Copy button
GL account : 100530
Enter
Description : VAT Payable
Control Data tab
107

Tax Category : > ie Output Tax Account
Create/Bank/Interest tab
Save
b. VAT Recievable
Select GL account 100530 VAT Payable
Copy button
GL account : 200530
Enter
Account Group : Assets
Description : VAT Receivable
Control Data tab
Tax category : < ie Input Tax Account
Save
5. Change GL accounts Sales, Inventory RM
Tcode :FS00
Select GL account 300510 Sales
Change button
Control Data Tab
Tax category : + ie Only output tax allowed
√ Posting without tax allowed
Save
Enter to Ignore the Wrng Msg
Select GL account 200700 RM inventory
Change button
Control Data Tab
Tax category : - ie Only input tax allowed
Save
Enter to Ignore the Wrng Msg
108

6. Define Tax acounts
Upto Tax on Sales/Purchases same path
Posting Define Tax accounts
Double click on transaction MWS ( Output tax)
Chart of accounts : LACA
Enter
Save
Account
100530
 Save button
Continue
Back button
Double click on transaction VST ( Input tax)
Save
Account
200530
Save
Continue
7. Define Tax Determination Rules
SPROSales and Distribution  Basic FunctionsTaxes Define Tax Determination
Rules
New entries
Tax count Name Seq Tax Categ Name
IN 5 MWST Taxble
Save
8. Define Tax Relevancy Of Master Records
SPROSales and Distribution  Basic FunctionsTaxesDefine Tax Relevancy Of
Master Records
Double click on ‘Customer Taxes’
New entries
Tax categ Tax class Description
MWST 1 Taxable
MWST 0 No tax
109

Back button
Double click on ‘Material Taxes’
New entries
Tax categ Tax class Description
MWST 1 Taxable
MWST 0 No tax
Save
4. Enduser
1. Posting Pur Inv
Tcode: F-43
PstKy : 31 Account : LAPGNVNDR
Enter
Amount : 27000
√ Calculate Tax
Bus. Area : LANZ
Text : Pur inv
Enter
Amount : *
Tax Code : V1
Busi Area : LANZ
Text : +
Document menuSimulate
Post
Entry should be:
31 LANZ LAPFIVNDR LAP vndr 27.000,00-
40 LANZ 0000200700 RM inventory 25.714,29
40 0000200530 VAT Recievable 1.285,71
110

2. Posting Sales Inv:
Tcode :F-22
PstKy : 01 Account : LAPGNCUST
Enter
Amount : 18000
√ Calculate Tax
Bus. Area : LANZ
Text : Sales inv
Enter
Amount : *
Tax Code : A1
Bus Area : LANZ
Text : +
Document menuSimulate
Post
Entry should be
01 LANZ LAPFICUST LAP fi customer 18.000,00
50 LANZ 0000300510 Sales 15.720,52-
50 100631 VAT payable 2.279,48-
111

7. MM Integration
LIVE project
MM Configuration MM consultant
FI Configuration FI consultant
FI-MM Integration FI Consultant
Learning environment
MM Configuration FI consultant
FI Configuration FI consultant
FI-MM Integration FI Consultant
1. MM configuration
1. Maintain Calendar:
SPROSAP Net weaverGeneral SettingsMaintain Calendar
Public holidays
Change button
Create Button
With fixed date
Enter
Day : 15
Month : 8
Not Guaranteed
Short holiday name : Independence day
Long holiday name : Independence day
Enter
Continue
Back button
Holiday Calendar
Change button
Create button
Calendar ID : LC
Description : holiday calendar for LAP
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
112

Assign Holiday button
Select holidays to be included
Assign publ. holiday button
Save
Continue
Factory calendar
Change button
Create button
Factory calendar ID : LF
Description : Factory calendar for LAP
Holiday calendar ID : LC
Workdays
Select Monday to Saturday
Save
Continue
2. Define plant:
SPROEnterprise StructureDefinitionLogistics-GeneralDefine, Copy, delete,
check
plant
Double click on Define Plant
New Entries
Plant : LAP1
Name 1 : LAP Hyd plant
Factory calendar : LF
Save
Name : LAP Hyd plant
Country : IN
Region : 01
City : Hyd
Enter
Short Description : MM configuration for LAP
Enter
Continue
…
…
…
…
113

Next entry button
Plant : LAP2
Name 1 : LAP mum plant
Save
Name : LAP mum plant
Country : IN
Region : 13
City : Mum
Enter
Continue
Next entry button
Plant : LAP3
Name 1 : LAP Chennai plant
Save
Name : LAP Chennai plant
Country : IN
Region : 22
City : Chennai
Enter
Continue
3. Define Division:
Same path
Define, copy, delete, check division
Double click on Define Division
New Entries
Division Name
LS Small Cars
Save
Continue
4. Maintain Storage Location:
114

Up to Definition same path
Materials Management Maintain storage location
Plant : LAP1
Enter
New Entries
SLoc Description
LAP1 Hyd Storage Location
Enter
Save
Continue
Plant : LAP2
Enter
New Entries
SLoc Description
LAP2 Mum Storage Location
Enter
Save
Continue
Plant : LAP3
Enter
New Entries
SLoc Description
LAP3 Chennai Storage Location
Enter
Save
Continue
5. Maintain purchasing organisation:
Same path next line
115

New Entries
Purch. Organisation Purch. Org Descr
LAPO LAP purchase org.
Save
 Continue
6. Assign plant to company code:
Up to Enterprise Structure same path
AssignmentLogistics-General Assign plant to company code
New Entries
CoCd Plnt
LAP LAP1
LAP LAP2
LAP LAP3
Save
Continue
7. Assign Business Area to Plant/Valuation Area and
Division:
Same path next line
Valuation area - division button
New entries
ValA Dv BusA
LAP1 (Valuation area is nothing but plant LS LANZ
LAP2 LS LANZ
LAP3 LS LANZ
Save
Continue
8. Assign Purchasing organization to company code:
Up to Assignment same path
Materials ManagementAssign purchasing organisation to company code
Position
Purchasing org : LAPO
Enter
POrg CoCd
116

LAPO LAP
Save
Continue
9. Assign purchase organisation to plant:
Same path next line
New Entries
POrg Plnt
LAPO LAP1
LAPO LAP2
LAPO LAP3
Save
Continue
10. Create Purchasing Groups:
SPROMaterials ManagementPurchasingCreate Purchasing Groups
New Entries
Purchasing Group Desc. Pur.Grp
LPG LAP purchasing group
Save
Continue
11. Define Material Group:
SPROLogistics-GeneralMaterial MasterSettings for Key FieldsDefine Material
Groups
New Entries
Matl Group Material Group Desc
LAPM Metals
Save
Continue
12. Maintain Company Code for Material Management:
TCode :OMSY
Up to Material Master same path
Basic SettingsMaintain Company Codes for Material Management
Position
Company code : LAP
Enter
(CAUTION: Enter current period .If you enter wrong period it can’t be changed)
117

Cocd Year Period ABp
LAP 2012 5(Current period) √
Save
Continue
Note: Material posting starts from the above period . ABp is Allow Back posting .
If ABp is selected 2 periods(current and previous) are allowed , other wise only current
period is allowed.
13. Define Attributes of Material Types:
Up to Basic Settings same path
Material typesDefine Attributes of Material types
Position
Material type : FERT
Enter
Select Material Type ‘FERT’
Double click on ‘Quantity/value updating’ folder
Position
Enter
Valuatin area : LAP1
Enter
Valuation area Material
s
Qty updating Value Update
LAP1 FERT √ √
LAP2 FERT √ √
LAP3 FERT √ √
Save
Continue
Back button
Position
Material type : ROH
Enter
Select Material type ‘ROH’
Double click on Quantity/value updating folder
Postion
Valuation Area : LAP1
118

Enter
Val .area Matl type Qty updating Value Update
LAP1 ROH √ √
LAP2 ROH √ √
LAP3 ROH √ √
Save
Back button
Position
Material type : HALB
Enter
Select Material type ‘HALB’
Postion
Enter
Enter
LAP1 HALB √ √
LAP2 HALB √ √
LAP3 HALB √ √
Save
Back button
Position
Material type : VERP Packaging
Enter
Select Material type ‘VERP’
Postion
Enter
Enter
LAP1 VERP √ √
LAP2 VERP √ √
Save
119

Double click on Mtyp ‘FERT’
Int. purchase orders : 2 ie Int. purchase orders are allowed
Save
14. Set Tolerance Limits for Price variance ( purchasing
order):
SPROMaterial ManagementPurchasingPurchase OrderSet Tolerance Limits
for
Price Variance
Select ‘TlKy’s PE, SE for Company code ‘1000’
Copy as button
Change the Company Code to ‘LAP’
 Enter
Again change the Company Code to LAP
Enter
 Save
Continue
15. Plant Parameters
Up to Materials Management same path
Inventory Management and Physical InventoryPlant Parameters
Select Plant ‘1000’
Copy as button
Change the plant to ‘LAP1’
Enter
Copy as button
Enter
Copy as button
120

Enter
Save
Continue
16. Define Number Assignment for Material and Phys.
Inv .Docs
(One time setting)
SPROMaterials ManagementInventory Management and Physical
InventoryNumber
Assignment Define Number Assignment for Material and Phys. Inv .Docs
Maintain Groups button
√ Material documents for goods receipts
WE WF WO WW
Interval menuMaintain
Position the cursor on any interval
Edit menuInsert year
Year From number To number
2013
(Calendar year)
4500000000 4599999999
Enter
Back button
√ Material documents for goods movements and inventory diffs
WA WH WI WL WQ WR WS WZ
Position the cursor on any interval
Edit menuInsert year
2013
(Calendar year)
5000000000 5099999999
Enter
Save
Continue
17. Set Tolerance Group (for GR):
Same path up to Inventory Management and Physical Inventory
Goods ReceiptsSet Tolerance Limits
121

Select Tlky B1, B2, VP for company code ‘1000’
Copy as button
Change Company Code to ‘LAP’
Enter
Enter
Enter
Save
Continue
18. Maintain Default Values for Tax codes:
Up to Material Management same path
Logistics Invoice VerificationIncoming InvoiceMaintain Default Values for tax codes
New Entries
Company Code : LAP
Save
Continue
19. Set Tolerance Limits (for invoice verification):
Up to Logistic Invoice Verification same path
Invoice BlockSet Tolerance Limits
Select Tolerance Keys PP, PS & ST for company code ‘1000’
Copy as button
Change Company Code to ‘LAP’ (3times)
Enter (3 times)
Save
Continue
20. Define Automatic status change:
Up to Logistics Invoice Verification same path
Invoice Verification in Back groundDefine Automatic Status change
New Entries
CoCd Set correct invoice to’’completed’’
LAP Blank
122

Save
Continue
21. Group together Valuation areas:
Valuation and Account AssignmentAccount DeterminationAccount Determination
Without WizardGroup Together Valuation Areas
Position
Valuation area : LAP1
Enter
Valuation Area Val. Grpg code
LAP1 X
LAP2 X
LAP3 X
Save
Continue
22. Define Valuation Classes:
Same path next lineDefine Valuation Classes
Valuation Class button
Select Valuation Class 3000 ( ie Raw material1) ,7900 (ie Semi-finished products)
and
7920 ( ie FinishedGoods)
Copy as button
Change Valuation Class 3000 to ‘LAP1’
Change Valuation Class 7900 to ‘LAP2’
Change valuation class 7920 to ‘LAP3’
Enter
Save
Continue
2. FI Consultant’s Job
123

1. Changing GL account Inventory RM
Tcode: FS00
Select GL account 200700 (RM Inventory)
Change button
Create /Bank/Interest tab
Field Status Group : G006 (Material Accounts)
√ Post automatically only
Save
2. Creating GL accounts
Inventory FG :
Select 200700 (Inventory RM)
Copy button
GL account : 200702
Enter
Description : Inventory FG
Control Data tab
Tax category : Blank
Save
Inventory SemiFG :
Select 200702 (Inventory FG)
Copy button
GL account : 200701
Enter
Description : Inventory SemiFG
Save
GR/INR account
Select 100800 Expenses payable account
Copy button
GL account : 100520
124

Enter
Description : GR/INR account’
Control data tab
Tax category : - (Minus)
Sort key : 010 (Purchase order No.)
(Make sure Open Item Management is on)
Field Status Group : G045 Goods/Invoice Received clearing account
Save
Freight Clrng account
Select G/L account 100520 (GR/INR account)
Copy button
GL account : 100521
Enter
Description : Freight Clrng account
Field Status Group : G017 Freight/customs provisions/ clearing (MM)
Save
RM Consumption Account
Select 400500 (Salaries)
Copy Button
GL account : 400599
Enter
Description : RM Consumption
Field Status Group : G003 (Material Consumption Account)
Save
Edit Cost Element button
Valid From : 01.04.2012
Enter
Cost Elem category : 1
Save
SFG Consumption Account
Select 400599 RM Consumption
125

Copy Button
GL account : 400950
Enter
Description : SFG Consumption
Save
Edit Cost Element button
Valid From : 01.04.2012
Enter
Cost Elem category : 1
Save
Cost Of Goods Sold a/c
Select 400500 (Salaries)
Copy Button
GL account : 400204
Enter
Description : Cost Of Goods Sold a/c
Field Status Group : G030 ie Change in stock accounts
Save
Inc/Dec in stock account
Select 300510 (Sales account)
Copy Button
GL Account : 300204
Enter
Description : Inc/Dec in stock
Control data tab
Tax category : Blank
Field Status Group : G030 (Change in stock account)
Save
3. Assignment of Accounts:
Tcode: OBYC
SPROMaterial ManagementValuation and Account AssignmentAccount
126

Determination Account Determination without wizardConfigure Automatic Posting
Cancel button
Account Assignment button
Double click on transaction ‘BSX’ (Inventory posting)
Chart of account : LACA
Enter
Valuation class √
 Save
Valuation class Account
LAP1 200700(Inventory RM)
LAP2 200701(Inventory SemiFG)
LAP3 200702(Inventory FG)
Save
Continue
 Back button
Double click on Transaction ‘FR1’ (Freight clearing)
Valuation modif √
Valuation class √
Save
Valuation
modif
Valuation Class Account
X LAP1 100521
Save
Back button
Double click on Transaction ‘WRX’ (GR/IR clearing account)
Valuation modif √
Valuation class √
Save
Valuation
modif
X LAP1 100520
Save
Back button
127

Double Click on transaction ‘GBB’
General modification √
Valuation modif √
Valuation class √
Save
Valuation
modif
General
Modification
X VBR LAP1 400591
X VBR LAP2(SemiFG) 400990
X VAY LAP3 400204
X AUF LAP3 300204
X AUF LAP2 300204
X VAX LAP3 400204
X ZOF LAP3 300249
X ZOB LAP1 100520
Note: GL account 400599 is RM consumption a/c
300204 is Inc/Dec in stock and
400204 is Cost of Goods Sold a/c
100520 is GR/INR account
Save
Continue
VBR : RM consumption
VNG : Material Scrapping
ZOB : GR w/o purchase order (movement type 501)
FG Reciept from Production
AUF ZOF
With Production Order
[PP implemented]
Without Production Order
[PP not implemented]
FG Delivery to customer
VAY VAX
Sales A/C as Revenue element
[CO Implemented)
Sales A/C not as a Revenue element
(CO not implemented)
4. Creating No. ranges for Document types WE WA RE
128

Tcode :OBA7
Double Click on document type ‘WA’
Note down the No range ‘49’
Back button
Doubl Click on document type ‘WE’
Note down the no range ‘50’
Back button
Double Click on document type ‘RE’
Note down the no range ‘51’
In the same screen ‘Number range information’ button
Company Code : LAP
Change Intervals button
Interval button
No Year From Number To Number
49 2012 4900000000 4999999999
Enter
Interval button
50 2012 5000000200 5099999999
Enter
Interval button
51 2012 5100000000 5199999999
Enter
Save
Continue
3. MM End User
Planned delivery costs Unplanned Delivery Costs
If you know the freight charges at the time of PO
creation, you can enter in PO. During the GR, the
freight charges will be posted to Freight clrng
If you don’t know the freight charges at
the time of PO creation, you can enter
them during Inv Verification (MIRO)
129

account.
Freight charges will be posted to Inventory
account
During freight invoice verification they are
transferred to vendor account.
There are two options as how to post
unplanned delivery cost (This is a CoCd
level setting).
1. Freight charges can be distributed
among invoice items
2. Freight charges can be posted to
Expenses account
Planned delivery costs:
Scenario1 : Goods inv and Freight inv are from single vendor
Solution : Goods inv and Freight inv can be entered in one step
Scenario2 : Freight inv is from a different vendor
Solution : Goods inv and Freight inv have to be entered in separate steps
(We are following scenario 2 ie Transport vendor is separate from goods vendor)
1. Creation of RM master
TCode :MM01
SAP Easy AccessLogisticsMaterials ManagementMaterial
MasterMaterialCreate
(General) Immediately MM01
Material : LAPRM
Industry Sector : Mechanical Engineering
Material type : ROH Raw Material
Select View(s) button
Select views Basic data1, Purchasing , General Plant Data / Storage 1 , Accounting 1,
Costing1 and Costing2
Org. Levels button
Plant : LAP1
Stor. location : LAP1
Enter
Basic Data1 tab:
Material : LAP RM (Steel)
Basic unit of measures : KG
Material Group : LAPM
130

Division : LS
Net Weight : 1 KG
Gross Weight : 1 KG
Purchasing Tab
Purchasing Group : LPG
Accounting 1 tab
Valuation class : LAP1
Price Control : V (Moving Average Price)
Moving Price : 200
Save
2. Creation of Vendor Masters
Tcode : XK01
Vendor : LAPRMVNDR
Company Code : LAP
Purchase Organisation: LAPO
Account Group : LARM
Enter
Name : LAP RM vendor
Country : IN
Region : 01
Enter 4 times (or Next Screen button 4 times)
Recon. account : 100980 (Sundry creditors)
Sort Key : 012 (Vendor Number]
Cash Management Group : A1
Enter
Payt Terms : 0001
Tolerance Group : blank
Chk double inv √
Save
3. Creation of Vendor Masters
Tcode : XK01
Vendor : LAPTRVNDR
Company Code : LAP
Purchase Organisation: LAPO
Account Group : LARM
Enter
131

Name : LAP Transport vendor
Country : IN
Region : 01
Enter 4 times (or Next Screen button 4 times)
Recon. account : 100980 (Sundry creditors)
Sort Key : 012 (Vendor Number]
Cash Management Group : A1
Enter
Payt Terms : 0001
Tolerance Group : blank
Chk double inv √
Save
4. Open Period for Current month
(Periodic activity)
Tcode : MMPV
Up to Material Master same path
OtherClose Period
From Company Code : LAP
To Company Code : LAP
Period : 5 (Current period)
Fiscal Year : 2012
Check and close period
Execute
Intialize the closed period : TCode : MMPI can be used to open the period which is closed
by mistake. But this is to be done very carefully. Any postings done in the new period will
have impact if we reopen the previous period and post to it.
User prifle ?
5. Purchase Order Creation:
Tcode : ME21N
PurchasingPurchase OrderCreateVendor/Supplying Plant Known
Vendor : LAPRMVNDR
Enter
…
…
…
…
132

Org.Data tab
Purch. Org : LAPO
Purch. Group : LPG
Company Code : LAP
Item Material PO
Quantity
Deliv.
Date
Net
Price
Currency Plnt Stor.
Location
10 LAPRM 100 15.08.2012 200 INR LAP1 LAP1
Enter
Expand ‘Item Detail’ button
Conditions tab
Enter amount for condition type ‘FRB1’ as below
CnTy Name Amount
FRB1 Freight (Value) 45.00
Messages button to see any errors
Back button
Check button
Save
Note down the purchase order No. 4500017175
6. Goods Receipt
Tcode :MIGO
Inventory ManagementGoods MovementGoods ReceivedFor Purchase
OrderPO
Number Known
Purchase order : 4500017175
Enter
Where tab
Storage Location : LAP1
Text : GR
Quantity tab
Qty in Delivery Note : 100 kg
√ Item OK
Check button (‘Document is 0K ‘ msg should come)
Post
(Note down the material document no 600000030)
133

7. Displaying Material document
Tcode: MB03
Up to Inventory Management same path
Material DocumentDisplay
Material Document : 600000030
Material document year : 2012
Enter
Accounting Documents button
Dr. 89 Inventory RM 20,045.00
Cr. 96 GR/INR account 20,000.00
Cr 50 Freight clrng account 45.00
8. Invoice Verification for goods
Tcode : MIRO
Logistics Invoice VerificationDocument EntryEnter Invoice
Invoice date : Todays date
√ Calculate tax
Tax code : V1 4%Input tax
Text : Inv Verifcation
PO Reference Tab
Purchase order/Scheduling agreement 4500017175 Goods/service items
Enter
Select √ Booking OK for item 1
Enter
Copy the amount in Balance field (red signal)
Paste to Amount field (without –‘ve sign)
Enter
(Red signal should turn into green signal)
Payment tab
Baseline date : Todays date
Payment term : 0001
Simulate button
Close the window
Post
134

Invoice Document menu Display
Follow-On Documents button
LAP RMvendor 20,800.00
GR/INR clrng account 20,000.00
VAT Receivable 800.00
9. Inv Verification for Freight
Tcode: MIRO
Invoice date : Todays date
√ Calculate tax
Tax code : V0 0%Input tax
Text : Freight Inv verifcation
PO Reference Tab
Purchase order/Schedulin agreement 4500017175 Planned delivery costs
Enter
Select √ Booking OK for item 1
Enter
Details tab
Inv. Party : LAPTRVNDR
Enter
Basic data tab
Copy the amount in Balance field (red signal)
Paste it to Amount field (without –‘ve sign)
Enter
(Red signal should turn into green signal)
Payment tab
Baseline date : Todays date
Payment term : 0001
Simulate button
Entry should look like the following
Cr LAP TR vendor 45.00-
Dr Freight clrng account 45.00
Close the window
135

Post
10. RM Consumption
Tcode : MB1A
Inventory ManagementGoods MovementGoods Issue
Movement type : 201 (Consumption for CC)
Plant : LAP1
Storage location : LAP1
Enter
Cost Centre : 1001
Material : LAPRM
Qty : 25
Enter
Post
(Document 500000350 generated)
Goods Issue menuDisplay
Material Doc : 100000350
Mat. Doc. Year : 2012
Enter
Double click on Accounting document
Entry should be :
Cr. Inventory RM 5011.25-
Dr. RM Consumption 5011.25
11. Display Stock Ledger
Tcode : MMBE
up to Material Management same path
Inventory ManagementEnvironmentStockStock Overview
Material : LAPRM
Plant : LAP1
Execute
136

12. Display Stock for posting date
Tcode :MB5B
Same path
Material No. : LAPRM
Company Code : LAP
Plant : LAP1
Valuated stock
Execute
…
…
…
…
137

8. SD Integration
1. SD consultant job
1. Define Sales Organisation:
SPROEnterprise StructureDefinitionSales and DistributionDefine, copy, delete,
check sales organization
Double click on Define Sales Organisation
New Entries
Sales Organisation : LANS
Description : LAP North sales org
Statistics currency : INR
Save
Name : LAP North sales org
Country : IN Region : 01
Enter
Short Description: SD configuration for LAP
EnterContinue
Next Entry button
Sales Organisation : LASS
Description : LAP South sales org
Statistics currency : INR
Save
Name : LAP South sales org
Enter
Continue
2. Define Distribution Channel:
Same path Next line
Define ,copy , delete ,check distribution channel .
138

Double click on Define distribution channel .
New Entries
Distr. Channel Name
LD Direct Sales
Save
Continue
3. Define shipping points:
Up to Definition same path
Logistics Execution  Define, copy, delete, check shipping Point.
Double click on Define shipping point.
New Entries
Shipping point : LASH
Description : LAP shipping point
Save
Name : LAP Shipping point.
Enter
Continue.
4. Assign Sales Organisation to Company code:
SPROEnterprise StructureAssignmentSales and DistributionAssign Sales
Organisation to Company code
Position
Sales Org : LANS
Enter.
Sorg. CoCd
LANS LAP
Position
Sales Org : LASS
Enter.
Sorg. CoCd
LASS LAP
Save
139

Continue
5. Assign Distribution channel to sales organisation:
Same path (next line)
Assign distribution channel to Sales Organisation.
New entries
SOrg
.
Dchl
LANS LD
LASS LD
Save
Continue.
6. Assign division to Sales Organization:
Same path next line
New Entries.
SOrg
.
Dv
LANS LS
LASS LS
Save
Continue.
7. Set up sales area:
Same path next line
 New Entries
SOrg
.
DChl Dv
LANS LD LS
LASS LD LS
 Save
Continue.
8. Assign sales organisation- distribution channel - Plant:
Same path
New Entries
SOrg
.
DChCust/Mt Plant
LANS LD LAP1
140

LASS LD LAP1
LANS LD LAP2
LASS LD LAP2
LANS LD LAP3
LASS LD LAP3
Save
Continue
9. Define Rules by Sales area:
Up to Sales and Distribution same path
Business Area Account AssignmentDefine Rules for Sales area
Position
Sales Org. : LANS
Enter
SOrg
.
Rule
LANS 001 (Bus Area determination from plant & division)
LASS 001 (Bus Area determination from plant & division)
Save
Continue
10. Assign Business Area to Plant And Division
Same Path next line
New Entries
Plnt Dv BusA
LAP1 LS LANZ
LAP2 LS LANZ
LAP3 LS LANZ
Save
Continue
11. Assign Shipping Point to Plant:
Up to Assignment same path
Logistics ExecutionAssign Shipping point to Plant
141

Find Button
Find : LAP1
Enter
Click on LAP1
Keep the cursor on LAP1
Assign Button
√ LASH
Enter
Save
Continue
12. Assign Shipping Points:
SPROLogistics ExecutionShippingBasic Shipping FunctionsShipping point and
Goods receiving point DeterminationAssign shipping points
New Entries
SC LGrp Plnt PrShP MShPt
01 0003 LAP1 LASH LASH
Save
Continue
13. Maintain Pricing Procedure:
SPROSales and DistributionBasic FunctionsPricingPricing controlDefine
and Assign Pricing Procedures
Double click on Maintain pricing procedures
Select Procedure ‘RVAA01’ ie Standard or ‘RVAACA’
Copy as button
Change Procedure with ‘LAPPP’
Change Description with ‘LAP Pricing Procedure’
Enter
Copy all button
Enter to ignore the Wrng Msg
Select Procedure ‘ LAPPP’
Double click on Control Data folder
For Condition types SKTV (step 914), deselect Required
For Condition types K007 (step 104) MWST (step 915) select Required
142

Make a note of AccKey for ‘CTyp’s PR00 , MWST and K007 (ERL and ERS
respectively)
(Make sure CTyp ‘VPRS’(step 940) is copied )
Save
Continue
14. Define Pricing Procedure Determination:
Same Path same lineDefine and Assign Pricing Procedure
Double click on Define Pricing Procedure Determination
New Entries
SOrg. DChl Dv DoPr CuPP PriPr CTyp
LANS LD LS A 1 LAPPP PR00
LANS LD LS 2 1 LAPPP PR00
LASS LD LS A 1 LAPPP PR00
LASS LD LS 2 1 LAPPP PR00
Save
Continue
15. Define Tax Determination Rules:
Up to Basic Functions same path
TaxesDefine Determination Rules
New Entries
Tax Count. : IN
Seq : 1
Tax categ. : UTXJ
Save
Continue (skip this step lab)
16. Set up Partner Determination:
Customer Partner role
Customer’sH Office Sold to party Sales to party
Payer HO will settle the bill
Customer’sPlant Ship to party Send goods to plant
Customer’s Br office Bill to party Send bill to Br Office
143

Up to Basic Function same path
Partner DeterminationSet up Partner Determination
Double click on Set up Partner Determination for Customer Master
Double click on ‘Account Groups- Function assignment’ folder
New Entries
Partn. Funct. Name Account Grp
SP Sold to party LASD
SH Ship to Party LASD
BP Bill to Party LASD
PY Payer LASD
Save
Enter 4times to ignore the msg
Continue
Double click on ‘Partner Determination Procedures’ folder
New Entries
Part. Det .proc Name
LAPD PDP for LAP
Save
Enter to ignore wrng msg
Select Partner Determination ‘LAPD’
Double click on ‘Partner Functions in Procedure’ folder
New Entries
Part.Det.
Proc
Partn.Funct. Not Modifiable Mandat.Funct
LAPD SP √ √
LAPD BP √
LAPD SH √
LAPD PY √
Save
Double click on ‘Partner Determination Procedure Assignment’ folder
Position
Account Group : LASD
144

Enter
Group ParPr
LASD LAPD
Save
17. Changing Schedule Line Category
Tcode : VOV6
Double cl ick on SLCa ‘DN’ ie Returns
Movement Type : 653 ie GD returns unrestr.
Save
Continue
2. FI Consultants job
1. Changing GL account
Tcode :FS00
Select GL account ‘300510’ ie Sales
Change button
Change the Field Status Group to ‘G029’ ie Revenue accounts
Save
2. Assignment of Accounts for Automatic Posting:
SPROSales and DistributionBasic Functions Account
Assignment/CostingRevenue
Account DeterminationAssign G/L accounts
Double Click on table 1
New Entries
App CndTy ChAc SOrg
.
AAG AAG ActKy GL A/C
V KOFI LACA LANS 01 03 ERL 300510
V KOFI LACA LANS 01 03 ERS 400491
V KOFI LACA LASS 01 03 ERL 300510
V KOFI LACA LASS 01 03 ERS 400491
Save
Continue
145

3. SD End User
1. Creation of Customer
Tcode : XD01
Account Group : LASD (SD Customers)
Customer : LAPSDCUST
Company Code : LAP
Sales Organisation : LANS
Distribution Channel : LD
Division : LS
Enter
Name : LAP SD customer
Country : IN
Region : 01
Company Code Data button
Recon. account : 200610 (Sundry Debtors)
Sort Key : 031 (Customer Number)
Payment transactions tab
Terms of payment : 0001
Sales Area Data button
Sales tab
Cust. pric. proc : 1
Shipping Tab
Delivery priority : 02 (normal)
Shipping condition : 01 (as soon as possible)
Delivering plant : LAP1
Billing Documents tab
√ Price determine.
Inco terms : EXW (customer will take care of goods from plant only)
Terms of payment : 0001
Acct assgmt group : 01
Tax classification: 1 (liable for tax) for UTXJ
1 for MWST
Save
2. Creation of Material FG
Tcode : MM01
Material : LAPFG
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Material Type : Finished products
Select Basic Data1, Sales: Sales Org. Data 1 , Sales: Sales Org. Data2 ,
Sales: General/Plant Data , MRP 1 , Accounting 1 , Costing1 and Costing2
Plant : LAP1
Stor. Location : LAP1
Sales Org. : LANS
Distr. Channel : LD
Enter
Description : LAP FG
Base Unit of Measure : EA
Division : LS
GenItemCatGroup : NORM
Sales: sales org .1 tab
Tax Data
Tax Classification : 1 for UTXJ
1 for MWST
Sales: sales org. 2 tab
Acct assignment grp : 03 ie Finished Goods
Item category group : NORM
Sales: General/Plant tab
Gross Weight : 1
Net Weight : 1
Availability check : KP (no check)
Trans. Grp : 0003
Loading Grp : 0003 ie Manual
MRP 1 Tab
MRP type : ND ie No plan
Accounting 1 tab
Valuation class : LAP3 (Finished Product)
Price control : S (std. price)
Standard price : 600
147

Save
3. Creation of Condition records
Tcode : VK11
SAP Easy AccessLogisticsSales and Distribution  MasterData Conditions
Select Using Condition TypeCreate
Condition type : PR00
Key Combination button
Material with release status
Enter
Sales Organization : LANS
Material Amount Valid From Valid to
LAPFG 700 1.04.2011 31.03.2012
Save
Back button
Condition type : K007
Division/Customer
Enter
Division : LS
Customer Amount Valid From Valid to
LAPSDCUST 1 1.04.2011 31.03.2012
Save
Back button
Condition type : MWST
Domestic taxes
Enter
Country : IN
TaxCl1Cust Tax cl. Mat Amount Valid From Valid to TaxCode
1 1 1.04.2011 31.03.2012 A1
Save
…
…
…
…
…
…
…
…
…
…
…
…
148

4. Creation of Sales order
Tcode :VA01
Up to Sales and Distribution same path
SalesOrderCreate
Order type : OR
Division : LS
Enter
Sold-to party : LAPSDCUST
PO Number : 567 (customer’s Purchase order no)
PO date : Todays date
Req. deliv. date : Todays date
Delivery plant : LAP1
√ Complete dlv
Payment Terms : 0001
Item Material Order Quantity Plant
10 LAPFG 10 LAP1
Enter
Select item 10
GoTo menuItemConditions
Enter CnTy ‘MWST’ and Amount ‘5%’
CnTy Amount
MWST 5
Make a note of Discount amount ie 7 Rs
Make a note of profit margin 93 ( ie (700-7)-600)
Back button
Edit menuIncompletion log
Save
Note down the order no
5. Production Receipts
Tcode :MB1C
Up to Logistics same pathMaterails ManagementInventory ManagementGoods
Movement Goods ReceiptsOthers
Document date : Todays date
149

Movement type : 521 (receipt w/o production order into unrestricted use stock)
Plant : LAP1
Enter
Material Qty.
LAPFG 150
Enter
Text : GR from production
Post
Post
Note down the material document no. 100000360
Other Goods Receipt menuDisplay
Material document : 100000360
Mat. Doc year : 2012
Enter
Double click on Accounting Document
Dr Inventory FG .90000.00
Cr To Inc/Dec. in stock 90000.00- (=150*600)
6. Delivery
Tcode : VL01N
Up to Logistics same path
Sales and DistributionSalesOrderSubsequent FunctionsOut bound Delivery
Shipping point : LASH
Selection date : Sales order date (automatically come)
Order : 12124 (sales order)
Enter
Actual GI date : Todays date
Picking tab
Picked qty.
10
Post Goods Issue button
150

Note down the delivery document 80015213
Outbound Delivery menuDisplay
Outbound delivery : 80015213 (comes automatically)
Enter
Document flow button
Select GD goods issue
Display document button
Dr Cost of Goods Sold 6000.00
Cr Inventory FG 6000.00-
7. Sales billing
Tcode: VF01
Same pathBilling Document
Select the Delivery document
Execute button
Goto menu ItemItem Conditions
Enter CnTy ‘MWST’ and Amount ‘5%’
CnTy Amount
MWST 5
Back button
Save
[Note down the billing document no)
Billing document menuDisplay
Billing document : xxxxxxxxxxxxx
Accounting button
Dr LAP SD Customer 7276.50
Cr Sales 7000.00-
Dr Discount 70.00
Cr VAT Payable 346.50
In case of error ‘Document xxxxxxxx saved (no accounting document generated)’ ,
for complete error analysis:
TCode: VF02
151

Billing document :
Billing document menu Release To Accounting
Double click on the error msg
Error: Account 400491 requires an assignment to a CO object
Solution : Delete cost element 400491 temprorarily and create again in the netx topic
8. Creating Cr Memo request
Tcode : VA01
SAPEasy AccessLogisticsSales and DistributionSalesOrderCreate
Order type : CR
Division : LS
Create with Reference button
Bill doc tab
Billing Document : XXXXXXXXXXX
Copy button
Item overview tab
Billing block : Blank
Target quantity
2
Sales tab
Order reason : Damaged in transit
Billing Date: Today’s date
Item detail tab
Edit menu  Incompletion log
Save
9. Posting Cr Memo
Tcode : VF01
Document
152

Enter Cr memo request
Execute button
Save
Billing document 90036292
Double click on Accounting document
Entry should be :
Cr LAP SD Customer 1455.30-
Dr To Sales 1400.00
Cr Discount given 14.00-
Dr VAT Payable 69.30
10. Sales Return Order (RE)
Tcode : VA01
Order Type : RE
Create with Reference button
Order tab
Order : xxxxx
Copy button
Sales Tab :
Delivery block : Blank
Order reason : Returns
Order Quantity
5
Select Item 10
Goto menu ItemConditions
Edit menuIncompletion log
Save
11. Return Delivery (VL02n)
Tcode : VA02
Order : XXXX
Enter
Sales document menuDeliver
153

Actual GI date : Todays date
Picking Tab
Deliv
.Qty
SLoc
5 LAP1
Post goods Reciept button
12. CR Memo with reference to Returns order
TCode : VF01
Select Return sales order Execute
Save
Billing document : xxxxxxxxxxx
 Accounting button
154

9. Profitability Analysis
In SAP we have two tools to analyse the Profitability
EC-PCA CO-PA
Profit Centre Accounting Profitability Analysis
To analyze the Profitability at organizational
units called Profit Centres.
Profit centres can be structured according to
Plants, Branch offices, Products or Product
ranges.
To analyze the Profitability at Profitability
segments like Customer , Employee ,
Product etc
This is called Multidimensional Profitability
Eg: Customer wise profit, Employee wise
profit ,Product wise profit
PCA uses Period accounting and Cost-of-
sales accounting
PA uses Cost-of-sales accounting method
PA is of two types Costing-Based and Account-Based . Both types can be used
simultaneously.
Costing-Based PA Account-Based PA
Costing-Based PA uses Value fields to group cost and
revenue elements.
Account-Based PA uses cost
and revenue elements
Reconcilation issues : Reconciliation between FI and
COPA.
SD: Delivery updates COGS in FI immediately but not
COPA. Billing updates FI with revenue.
Billing : During billing COPA is updated with COGS and
revenue
Reconcilation issues happens when delivery isdone in
one period and billing is done in a different period
No reconciliation issues
COGS can be split in to cost components Cost component split is not
possible
Varaince analysis is possible Variance analysis not poosible
1. Settings
1. Maintain Operating Concern
Operating Concern is the highest node in CO. ie It is above the Controlling Area.
155

Op Concern 1
CoArea1
CoCd1
CoCd2
Co Area 2
CoCd3
CoCd4
Info : In Operating Concern we define the PA reporting data structure . Operating concern
contains a list of Characteristics and Value fileds.
Characteristic is the level at which you see the report and Value field is what figure you
want to see in the report .
Eg: You want to see customer wise revenue /cost of sales/ profit. Here customer is the
characteristic . and revenue /cost of sales/ profit are the value fields .
Path:SPROControllingProfitabilty AnalysisStructuresDefine Operating
ConcernMaintain Operating Concern
Operating Concern : LAP1
Create button
Enter to Ignore the msg
Description : LAP Operating concern
Costing-based
Account-based
Attributes tab
Operating concern currency : INR
Company Code Currency √
Fiscal year variant : V3
Save
Data Structure Tab
Create button
Select KMVTNR Sales employee and MATKL Material Group
Fixed Characteristics: In every opearing concern there are some fixed characteristics,
which are included into operating concern automatically.
Eg: Product ,Company code,Co-area, Sales order etc
Predefined Characteristics : Optionally we can include more characteristics . These are
predefined in the field catalogue and explicitly added to operating concern .
Eg : Sales employee , Material Group, Customer group etc
Customer –defined Characteristics :
We can also define our own characteristics in field catalogue . From there you can include
them in your operatining concern.
√
√
156

Value fields Tab
Select VV010 Revenue,
VV030 Customer discount,
VV100 Outgoing Freight
VV130 Internal sales comm
VV140 COGS,
VV150 Material Input,
VV250 Mat OH
VV400 Production costs
VV700 Sales Quantity
VV713 Advertising,
VVIQT Invoiced Quantity ,
KWSGEK Other overhead
Info : Value fields are to be included in to the operating concern according to the requirement
from the field catalogue . Here we are including the above value fields.
A value field can be either an amount field or a quantity field. In the above value fields sales
quantity, invoiced quantity are quantity fields and others are amount fields.
Save
Activate button
Back button
Yes button to generate Operating Concern environment
(Status should turn into green))
Enter to ignore the Msg
Save
2. Displaying Characteristic list
Upto Define Operating Concern Same path
Maintain Characteristics
Display button
Extras menuFixed fields
157

3. Define Profitability Segment Characteristics(Segment-
Lvl Characteristics)
Upto Structures same path
Define Profitability Segment Characteristics(Segment-Lvl Characteristics)
Operating concern : LAP1
Enter
Char Description CostBased+AcctBased
ARTNR Product
KNDNR Customer
KAUFN Sales Order
Save
Continue
Info : Profitability segment is a unique combination of the above selected characteristics . ie
Only the characteristics selected for the above setting will be used in profitability segments.
Eg :
ProdA / Customer 1 = Proft seg 1
ProdB / Customer 1 = Proft seg 2
ProdA / Customer 2 = Proft seg 3
4. Assign Co-Area to Operating Concern
SPROEnterprise StructureAssignmentControllingAssign controlling area to
operating concern
Position button
CO Area : LAP
Enter
COAr OpCo
LAP LAP1
Save
Continue
Error : Controlling area and op. concern have different fiscal year variants
Solution : Make sure if Op Concern and CoArea have same FYV. If they are different
change the FYV in Op Concern , logoff, re-login and peroform the above step .
158

5. Define No ranges for Actual Postings
Path: SPROControllingProfitability Analysis Flows of Actual Values Initial
Steps
Define Number Ranges for Actual Postings
Maintain Groups button
Create button
Group : COPA docs LAP
From No To Number
9000000000 9999999999
Save
Continue
Back button
Click on ‘F’
Double click on ‘ COPA docs LAP’
Repeat the process for A, B, C
Save
Continue
Info:
Data is generated in PA when documents are posted in SD , FI or MM components. For Eg
when a billing document is generated in SD , a PA document is generated as well.
6. Activate Tranfer of Incoming Sales Orders
Up to Flows of Actual Values same path
 Transfer of Incoming Sales Orders Activate Transfer of Incoming Sales Orders
Position button
CO Area : LAP
Enter
COAr Inc.SO
LAP 1 ie Active with date of entry
Save
Continue
159

7. Maintain Assignment of SD Conditions to CO-PA Value
Fields
 Transfer of Billing Documents Assign Value Fields
Double click on Maintain Assignment of SD Conditions to CO-PA Value Fields
New Entries
CTyp Val.fld
PR00 VV010
VPRS VV140
K007 VV030
Save
Continue
8. Assign Quantity Fields
Transfer of Billing Documents Assign Quantity Fields
New Entries
SD qty field Name CO-PA qty field Name
FKIMG Billed Quantity VVIQT Invoiced Quantity
KWMENG Order
Quantity
VV700 Sales quantity
Save
9. Create Revenue element for GL account ‘Sales’
Tcode : FS00
Select GL account 300510
Change button
Enter
CostElemCategory : 11 i.e. Revenue
Save
10. Create Cost element for GL account ‘Discount given’
160

Tcode : FS00
Select GL account 400491
Change button
Enter
CostElemCategory : 12 i.e. Sales deduction
Save
11. Creating GL account Advertising
Tcode : FS00
Copy button
GL account: 400707
Enter
Change the Description to ‘Advertising’
Save
Enter
CostElemCategory : 1
Save
12. Create Secondary Cost Element(Settlement)
Tcode : KA06
Valid From : 1.4.2011 to 31.12.9999
Enter
Name : IO settlemnt
Description : IO Settement
CElem category : 21
Save
13. Maintain allocation Structure :
161

SPROControllingInternal OrdersActual PostingsSettlementMaintain
Allocation Structure
Select Allocation Structure ‘A1’
Double click on Assignments folder
New Entries
Assignment Text
070 Advtising
Save
Continue
Select Assignment ‘070’
From cost el To cost elem
400707
Save
Double click on Settlment cost elements folder
New Entries
Receiver cat By cost element settlement cost elem
PSG 100000008
Save
14. Maintain PA Tranfer Structure
Same path
Maintain PA Transfer Structure
New Entries
Structur
e
Text
L1 IO --> PA tranfer
Save
Continue
162

Select Structure ‘L1’
Double click on Assignment lines folder
New Entries
Assignment Text
Q1 All cost
Save
Select Assignment ‘L1’
Double Click on Source folder
Cost Element
From : 400707
Costs/revenue
Save
Double click on Value fields folder
New Entries
Quantity/valu
e
Fixed/Variable Value fld
Value field 2 Variable VV713
Save
15. Maintain Settlement Profile
Same path
Maintain Settlment Profile
Double click on ‘Maintain Settlement Profiles’
 New Entries
Settlement profile : LAP1 IO-->COPA
Actual Costs/Costs of Sales
To Be Settled in Full
Default Values
Allocation structure : A1
PA transfer str. : L1
Default object type : PSG
Indicators
163

%-Settlement
Valid Recievers
Cost center : Settlement Optional
Profit. Segment : Settlement Optional
Other Parameters
Document type : SA
Max.no.dist.rls : 999
Residence time : 3
Save
16. Maintain Number Ranges for Settlement Documents
(Skip this step already done in topic IO->CC settlement)
Same menu path
Maintain groups button
Create button
Group : Settlemnt DOcs LAP
From No To Number
070000000 0799999999
Save
Enter
Back button
Click on ‘LAP’
Assign elemnt group button
Double click on ‘Settlemnt Docs LAP’
Save
New Entries
Enter
Order type : EVNT
Description : Events
Settlement prof : LAP1
164

Yes button
Continue
√ Motor pool A-zzzzzzzz(external)
Not assigned
Double click on EVNT
Save
Continue
18. Activate Profitability Analysis
 Activate Profitability Analysis
Position
CO Area : LAP
COAr Name FromFY Op.concern Active status
LAP CO area for LAP 2012 LAP1 4
Save
Continue
19. Create IO Adv Event
Tcode: KO01
Order type : EVNT
Enter
Order : ADVEVNT_LAP
Description : Adverstsing Event
Company Code : LAP
Control data Tab
Statistical order
Info:Select the check box to make it a statistical IO , else it will be a Real IO
Save
 Settlement Rule button
Cat Settlement Reciever
PSG
165

Enter
Product : LAPFG
Enter
Cat Settlement Reciever % Settlemnt type
PSG 100 FUL
Save
20. Create No. Range intervals for Bus Transactions KOAO
Tcode : KANK
CO Area : LAP
Double click on Business Transaction ‘KOAO’ ie Actual settlemnt,
Save
Continue
21. Maintain PA Transfer Structure for Direct posting
Direct Posting from FI/MM Maintain PA Transfer Structure for Direct Postings
Select Structure ‘FI’ ie Financial Accounting --> CO-PA
Enter
 Select Assignment ‘10’ ie Direct costs from FI
Cost Element
From : To :
Group :
Double click on Value fields folder
New Entries
Quantity/valu
e
Fixed/variable Value fld
166

Value field 1
 Select Assignment ‘20’ ie Direct revenues from FI
Double click on ‘Source’ folder
Cost Element
From : 300510 To :
Double click on ‘Value fields’ folder
New Entries
Quantity/valu
e
Value field 1 VV010
 Select Assignment ‘30’ ie Sales Deductions / Rebates
Double click on ‘Source’ folder
Cost Element
From : 400491 To :
Double click on ‘Value fields’ folder
New Entries
Quantity/valu
e
Value field 1 VV030
Save
Continue
22. Transfer of old SD data to PA
We perform this activity in the following two scenarios
Scenario 1 : In the lab if we post SD documents before configuring PA.
Scenario 2 : In the live project if SD module has been implemented before implementing
PA. After implementing the PA we can generate the PA documents for old SD documents.
Scenario 3 : Can also be used for corrective posting of documents in COPA. Existing COPA
docs are reversed and new documents are generated
Path: SPROControllingProfitability AnalysisToolsProduction Start
upSubsequent
Posting of Documents Post Billing Documents Subsequently
TCode : KE4S
167

Billing Type : F2 ,G2
Company Code : LAP
√ Test run
√ Create log
Check for existing records
Execute
Back button
Test run
Execute
Error : Document with unauthorized business transaction “SD00”
Solution : Activate profitability analysis
2. SD End User
1. Creating Sales order
Tcode: VA01
Create a Sales order for Material LAPFG
Qty : 50
2. Delivery of goods to customer
Tcode : VL01N
Post goods issue for the above sales order
Picked Qty : 50
3. Billing document
Tcode : VF01
Post a billing document for above Delivery document
4. Display Billing document
Tcode : VF03
Billing document : 90036262
Double click on Profitab. Analysis
Value fields Tab
Make a note of Value fields Cash discount, Cost of goods sold, Revenue
Invoiced quantity 50 EA
Cash discount : 350.00
168

Cost of goods sold : 30,000.00
Revenue : 35,000.00
3. FI Enduser
1. Posting transaction in FI
Posting cash sales :
Tcode : F-02
Dr LANZ 0000200691 Cash 18.000,00
Cr LANZ 0000300510 Sales 18.000,00-
In the second Item
Profit ,segment button
Plant : LAP1
Sales Org. : LANS
Division : LS
Continue button
Post
2. Posting Advertising expenses in IO
Tcode :F-02
Enter
Amount : 18000
Cost centre : Order : ADVEVNT
Text : Advertising expenses
Enter
Amount : *
Text : +
Post
169

4. CO End User
1. Set Operating Concern
Tcode : KEBC
SAP Easy Access AccountingControllingProfitability
AnalysisEnvironmentSet
Operating Concern
Costing-based
Enter
2. IO Settlement
SAP Easy AccessAccountingControllingInternal OrdersPeriod End
ClosingSingle FunctionsSettlementIndividual Processing
Tcode : KO88
Order : ADVEVNT
Parameters
Settlement period : 6
Fiscal Year : 201
Processing type : Full Settlement
√ Test Run
√ Check trans. Data
Execute
Details list button
Back button two times
Test Run
Execute
3. Display COPA Line items:
Upto Profitability Analysis Same path
Actual PostingsDipaly Line Items
Tcode :KE24
Currency type : 10
Company code : LAP
Execute
170

Enter
4. Checking the flow of Billing Documents
SAP Easy AccessAccountsControllingProfitability AnalysisToolsAnalyze
Value
Flows Check Value Flow in Billing Document Transfer
Tcode: KEAT
Company Code : LAP
Currency type : 10
√ Display FI values
Execute
5. Displaying COPA tables(Costing Based)
When we a create an operating concern a set of tables are created . The name of
COPA tables start with ‘CE’ .
For eg : CE1XXXX - Actual line items
CE2XXXX - Planned line items
CE3XXXX – Segment level totals/Period
CE4XXXX- Segment definition
where XXXX stands for your Opearting concern name.
171

10. COPA-Valuation Overview
Valuation is used to calculate/extract extra information which is not available at the
time of data transfer to CO-PA .
Eg : Sale deduction like commission, cash rebates which are not available in the
invoice can be calculated
Cost of sales can be extracted using standard cost estimates from Product cost
planning component or actual cost from Actual costing / ML component.
Special direct costs like transporting ,packaging can be calculated
Data transfer to CO-PA without valuation function :
Information available based on SDCOPA mapping()
Product COGS Discount Revnue ?
Prod A 2700 100 3600
Prod B 3000 150 4000
Contbution margin(Gross profit) = 7600-(5700+250)= 1550
Profit from prod A = 3600-(2700+100) = 800
1. Valuation using Conditions
Condition technique can be used to calculate sales deductions like commsion, Cash
deductions, rebates which are unknown at the time of invoice generation. And also to
determine direct costs such as frieght, packaging or insurance which are not known at
the time of billing.
172

Requirment 1 : Calculate Sales Commsion, Freght charges
Solution : We can valuate Sales commission and freight in COPA using Condition
tequniue
(We are going to configure this scenario in a dedicated topic ‘CO-PA Valuation-1’)
Sales commsion = 2% revenue
Freight = 5 Rs /Kg
Product COGS Discount Revnue Quantity Antcipated
Sales
commison
Anticipated
Freght
Prod A 2700 100 3600 10 72 50
Prod B 3000 150 4000 5 80 25
2. Valuation using Mat. Cost Estimates
To update Cost of sales with latest material cost estimate.
Requirement 2 : Component wise analysis for COGS
COGS is to be split into components like Mat cost, Mat OH ,Prod cost etc
Solution = Valuation with Mat cost estimate
Extra mapping to be done as shown in the following image
Image : Mapping Cost component structure-COPA value fields
173

Product COGS Discount Revnue Quantity Sales
commison
Freght RM
cost
RM
OH
Prod Cost
Prod A 2700 100 360 10 72 50 1500 150 1050
Prod B 3000 150 400 5 80 25 2000 200 800
Requirement3 : Revaluated prices should reflect in COPA at month end
Month end revaluation of stock using new standard price
During the month :
Standard price prod A = 270.00 Rs
Reciept of FG to inventory from Prod :
Posting to inv a/c = 270X50 = 13,500.00
Delivery to customer :
Posting to inv a/c = 270X10 = - 2700.00.00
Current inventory = 40X270 = 10800.00
At month end
New standard price = 280.00 Rs
Revalution of stock with new standard price :
40X280 = 11200.00
Amount to be posted to Loss/gain from revaluation a/c = 400.00 Rs
Solution : Periodic Revaluation
For prod A the defference is posted as a delta item as shown in the 3rd
row
Product COGS Discount Revnue Quantity Sales
commison
Freght RM
cost
RM
OH
Prod Cost
Prod A 2700 100 3600 10 7.2 50 1500 150 1050
Prod B 3000 150 4000 5 8 25 2000 200 800
Prod A 100 50 20 30
174

175

1. CO-PA Valuation-1
(In this Chapter we configure Valution using condtions)
Valuation using conditions : We use costing sheet and condition technique to
calculate anticipated freight charges based on the sale-quantity , anticipated
commission based on the revenue.
1. Settings
1. Create Condition Types and Costing Sheets
SPROControllingProfitability AnalysisMaster Data ValuationSet UP
Conditions and Costing SheetsCreate Condition Types and Costing Sheets
Select ACT001 under pricing procedures
Copy button
Pricing procedure : LAP1 Actual: Commisions, Freight.. (LAP)
Save
Continue
2. Define and Assign Valuation Strategy:
Upto Valuation same path
Valuation Valuation StrategiesDefine and Assign Valuation Strategy
Enter
Select Val.strat ‘001’ Online Valuation Actual
Double click on Details folder
New Entries
sequence Appl Costg sheet Mat.cstg Qty.field
1 KE LAP1 VVIQT
Double click on Assignment of Valuation strategy folder
New Entries
176

PV Rec. Plan ver Val .strat Name
01 F 001
Save
3. Assign Value Fields
Upto Valuation same path
Set UP Conditions and Costing SheetsAssign Value Fields
Assign Value Fields
New Entries
CTyp Name Value fld Description
COGS Cost Price: CO-PA VV140 Cost of goods sold
DISC Customer discount VV030 Customer discount
PROV Int.Sales
Commission
VV130 Internal sales Comm.
REVN Revenue VV010 Revenue
Save
Continue
4. Valuation Analysis
Upto Profitability Analysis same path
ToolsAnalysisCheck Customazing Settings
TCode : KECM
Select ‘Overview of Valuation’ under Analysis Options folder
Point of valuation : 01 Realtime valuation of actual data
√ Billing Document
Execute
The following image explains how values flow between CO-PA value fields and costing
sheet records.
177

2. Enduser :
1. Maintain condition record:
SAP Easy AccessAccountsControllingProfitability AnalysisMaster
DataCondition Records/PricesCreate
TCode : KE41
Condition type : PROV
Enter
Access to Sales organization
Enter
Sales Org Amount Valid From Valid to
LANS 3 1.4.2012 31.3.2013
Save
2. Creating Sales order
Tcode: VA01
Create a Sales order for Material LAPFG
Qty : 30
3. Delivery of goods to customer
178

Tcode : VL01N
Post goods issue for the above sales order
Picked Qty : 30
4. Billing document
Tcode : VF01
Post a billing document for above Delivery document
5. Display Billing document
Tcode : VF03
Billing document : XXXXXXx
Double click on Profitab. Analysis
Value fields Tab
Value fields ‘Interanl sales comm’ should be filled with value
6. Valuation Simulation
SPROControllingProfitability AnalysisToolsAnalysisValuation Simulation
TCode : KE21S
Posting date : 27.11.2013 Record Type : F
Pt.of valuation : 01 Version : Blank
Legal View
Enter
Characterstics tab
Company Code : LAP
Sales Org. : LANS
Value fields tab
Revenue : 3000 (or any amount)
Valuation button( )
( Calculated Internal sales Comm. should be 90.00 per a revenue of 3000.00 )
179

180

2. Characteristic Derivation
181

3. CO-PA Manual Line Item Entry
We can manually post entries in CO-PA in rare cases. If these postings are made without a
corresponding FI entry, then this can lead to a FI & CO-PA reconciliation issue. It should be
used in rare care cases like when it is too late to go back to the source module to make the
posting (e.g. when the period closing for that module has been carried out.)
TCode : KE21N
SAP Easy AccessAccountsControllingProfitability AnalysisActual
PostingsCreate Line items
182

4. Top-Down Distribution of Actual Data
In CO-PA value fields like revenue , sales deductions and COGM are posted to
detailed level characteristics like Product/customer . Some transactions like freight
charges, insurance cost can not be attributed directly to detailed levels like
product/customer . So they are posted summarily to higher levels like division ,sale
organization etc.
The ‘Top-Down Distribution’ function can be used periodically to distribute the data from
higher summerised levels to lower detailed levels.
Scenario : There are two products under one material group. When posting in FI,
Freight charges are transferred to material group in CO-PA . For the sake of analysis ,
product level freight charges are to be calculated. ‘Invoiced quantity’ is the basis for
distribution.
1. Settings
1. Maintain Characteristic Groups
SPROControllingProfitability Analysis Flows of Actual Values
Initial StepsCharacteristic GroupsMaintain Characteristic Groups
Enter
New Entries
Characteristic group Text
LAP1 Freight Charges posting
Save
Continue
Select Characteristic group ‘LAP1’
Double click on Characteristics folder
New Entries
Row number Field Name Field Description Entry Status
1
2
3
4
5
6
7
KNDNR
ARTNR
WERKS
VKORG
VTWEG
SPART
MATKL
Customer
Product
Plant
Sales Org.
Distr. Channel
Division
Material Group
Field ready for input
Required entry
Required entry
Required entry
Required entry
183

8 KOKRS CO Area Field not ready for input
Save
2. Assign Characteristic Groups for Assignment Screen
Same Path
New Entries
BusTran Name Charct.group Name Entry aid
RFBU FI: Postings LAP1 Freight charges posting
Click on the button in the Entry aid column
Plant : LAP1
Sales Org. : LANS
Distr. Channel : LD
Division : LS
 ‘Save new entry aid’ button ( )
Name : Mat Group
Continue
Continue
2. Enduser
1. Creation of Material FG(LAPFG9)
Tcode : MM01
Material : LAPFG9
Sales: General/Plant Data , MRP 1 , and Accounting 1
Plant : LAP1
Sales Org. : LANS
Distr. Channel : LD
Enter
Description : LAP FG9
184

Division : LS
Tax Data
1 for MWST
Gross Weight : 1
Net Weight : 1
Availability check : KP (no check)
Trans. Grp : 0003
MRP 1 Tab
Accounting 1 tab
Save
2. Create Condition Record
TCode : VK11
Condition type : PR00
Material with release status
Enter
Material Amount Valid From Valid to
LAPFG9 1200 1.04.2011 31.03.2012
Save
…
…
…
…
185

3. Sales Order
TCode : VA01
Material Order quantity
LAPFG9 10
4. GRfrom Production
Tcode :MB1C
Up to Logistics same pathMaterails ManagementInventory ManagementGoods
Movement Goods ReceiptsOthers
Document date : Todays date
Movement type : 521 (receipt w/o production order into unrestricted use stock)
Plant : LAP1
Enter
Material Qty.
LAPFG9 50
Enter
Text : GR from production
Post
Post
5. Delivery
TCode : VL01N
6. Billing
TCode :VF01
7. Posting Freight charges in FI
Tcode : F-02
PstKy : 40 Account : 400592 Freight Charges
Enter
Amount : 9000
Cost Centre : 1000
Text : Freight charges payment
’Enter account assignment’ button( ) next to Profit.Segment
186

Double click on ‘Mat Group’ under Central entry aids
(Plant , Sales Org. Distr. Channel, Division, filled automatically)
Continue
Pst Ky : 50 Account : 200691
Enter
Amount : *
Text : +
Document menu Simulate
Post
8. Display Actual line items
TCode : KE24
9. Top-Down Distribution
SAP Easy Access  AccountingControlling  Profitability Analysis  Actual
Postings  Period-End Closing Periodic Adjustments Top-Down Distribution
TCode :KE28
Enter
Actual Data
From Period : 8.2013 to 8.2013
Record Type : B Dir.posting from FI
All Valuation Views
Reference Data
From Period : 8.2013 to 8.2013
Version : Actual data
Record Type : F
Cumulative Periods
Cumulate Record Type
Reference base
Single Val. Fld
Value Field : Invoiced quantity
√ Test run
187

Selction Criteria button
Product : *
(All remaining charceristics value = *)
Processing Instructions button
Characteristic Distibution Lvl Copy Value Summarize Value
Customer
Product
Sales Order
Company Code
CO Area
Plant
Business Area
Sales Org.
Distr. Channel
Division
Profit Center
Sales employee
Material Group
Unit Sales qty
Unit Inv. qty
Value fields button
Deselct all button
√ Outgoing freight
( Other value fields should be deselected)
Save button(to save the variant)
Variant : LAP1_testmode
Save
188

Back button
Execute
Messages tab
(Msg for successful distribution : Editing has been completed successfully)
Result tab
Click in ‘Receivers’ column (It should display number of receivers)
(Inv.qty is the basis for distribution of freight charges )
Back button
Test run
(Enter all other input parameters as before)
Save button(to save the variant)
Variant : LAP1_updatemode
Save
Back button
Execute
189

10. Display Actual Line items
TCode : KE24
(A new COPA document with 3 items is generated)
11. History
Same path
TCode : KE28L
Enter
Variants
Variant : LAP1_updatemode
Status
√ Test Run √ Update Run √ Cancelled
√ Successful √ with Warnings √ Errors Found
Execute
Expand subtree button( )
Line Items button ( )
190

5. Profit Centre Accounting
EC-PCA(Enterprise control PC
accounting)
CO-PA(Profitablity Analysis )
is used to analyse profits at
organizational levels
PA is multidimensional
Used to analyse profits in multiple dimensions
like customer, Products, Sales org
Sales employee etc
1. Set controlling area:
Path: SPROControllingProfit Center AccountingBasic SettingsSet Controlling
area
T Code : OKKS
Enter
2. Maintain Controlling Area Settings:
Same path up to Basic settingsControlling Area SettingsMaintain Controlling area
Settings
Standard Hierarchy : STD_HIER
Elim. of Int. Business vol. √
PCtr Local Currency Type : 20 (CoArea currency)
Control indicators
From Yr. Active Indicator
2012 √
Save
Continue
3. Create Dummy profit centre:
Up to Profit Center accounting same path
Master DataProfit CentreCreate Dummy Profit Centre
Double click on ‘EC-PCA:Create Dummy Profit Center’
Dummy Profit Center : LAP_DUMMY
Basic Data button
Name : Dummy PC for LAP
191

Description : Dummy PC for LAP
Porfit Center Group : STD_HIER
Save
4. Set Control Parameter for Actual Data:
Up to Profit Center Accounting same pathBasic settings Controlling area Settings
Activate Direct postingsSet Controls Parameters for Actual Data
New entries
From year Line items Online transfer
2012 √ √
Save
Continue
5. Maintain Plan Versions
Same path up to Activate Direct postings
Plan VersionsMaintain Plan Versions
Select version ‘0’ ie Plan/actual version
DoubleClick on ‘Settings for Profit Center Accounting’ folder
New Entries
Year Online Transfer Line items ExRate Type
2012 √ √ M
Save
 Continue
6. Define Number Ranges for Local Documents:
Up to Prfit Center Accounting same path
Actual PostingsBasic Settings: ActualDefine Number Ranges for Local Documents
Maintain Groups button.
√ Act document from direct posting with GB01
Company code : LAP
Enter
Insert interval button
Year From Number To Number
2012 0100000000 0199999999
192

Enter
Save
Continue
 Back button
√ Planned doc. from direct posting with GB01
Interval MenuMaintain
Company Code : LAP
Enter
Interval Button
2012 0700000000 0799999999
Enter
Save
7. Creating Profit Centres
Tcode : KE51
SAP Easy AccessAccountingControllingProfitCenterAccountingMasterData
ProfitCenterIndividual
ProcessingCreate
Profit Centre : 1001
Enter
Analysis Period 01.04.2012
Name : Hyd plant
Long text : Hyd Plant
Person responsible : Mr. T
Profit centre group : STD_HIER
Save
Enter to confirm the message
Activate button
Profit centre : 1002
Enter
Name : Mum plant
193

Long text : Mum plant
Person Responsible : MR. M
Profit Centre group : STD_HIER
Save
Enter
Activate
8. Assign Profit Center in CostCenter :
Tcode : KS02
Cost Centre : 1001
Enter
Profit Centre : 1001
Save
Yes button to ignore the warning message
Repeat the same procedure for CCs 1002 and 1003
Error : Changing profit center from to xxxx is not permitted
Solution : Change error msg to warning msg
Double click on the error msg
Note down the msg no (here it is FAGL_ORG_UNITS011 )
Path : Up to Prfit Center Accounting same path
ToolsChange Message control
Application Area : FAGL_ORG_UNITS
Enter
New Entries
MsgNo User Name Online Batchl
011 W E
Save
Continue
9. Create Sales Account As Revenue Element:
Tcode : FS00
Select GL account 300510 (Sales)
194

Change buttonEdit cost element button
Enter
Cost Elem category : 11 ie Revenue
Save
(Already done in PA)
10. Maintain Automatic Account Assignment Revenue
element:
SPROControllingProfitCenter Accounting Actual PostingsMaintain Automatic
Account Assignment of Revenue Element
New Entries
CoCd Cost Elem. Profit Ctr Acct assignment detail
LAP 300510 1001 2 Business Area is mandatory
Save
Continue
Select Company code LAP with CostElement ‘300510’
Double click Details per business area/Valuation area
New Entries
ValA Business Area Cost Center Profit Center
Blank LANZ 1001
Save
1. End User
1. Posting of Salaries
Tcode : F-02
Enter
Amount : 36000
Cost Centre : 1001
Text : Salaries payment
Pst Ky : 50 Account : 200792
Enter
195

Amount : *
Text : +
Post
2. Posting Sales Invoice
Tcode : F-22
Psky : 01 Account : LAPGNCUST
Enter
Amount : 43000
Text : Sales invoice
Psky : 50 Account : 300510
Enter
Amount : *
Text : +
Profitability segment button
Profit Center : 1001
Enter
Post
3. Transfer of values from one ProfitCenter To another
ProfitCenter:
Tcode: 9KE0
Up to ProfitCenter Accounting same path
Actual PostingsProfitCenter DocumentEnter
Layout : 8A-001
Document type : A0
Execute
Company code : LAP
Entry Screen button
Profit
center
Account number In pctr local curr
1001 400500 -9000
1002 400500 9000
Save
196

4. Display Profit Centre Report:
Up to Profit Accounting same path
Information systemReports for ProfitCenter AccountingLine item Reports
 ProfitCenter :Actual Line items
Tcode : KE5Z
Record type : 0
Co Area : LAP
Company Code : LAP
Posting Period : 5
Fiscal Year : 2012
Account :
Profit Center : 1001
Execute
197

6. Product Cost Planning
Moving Average Price/Standard price
Moving Average Price Standard Price
Price is updated on every goods receipt and
invoice reciept.
Variance arises rarely (for example GR price is
different and enough stock is not available to
adjust)
Generally used for RM
Price is fixed for at least over a period.
We calculte the std price periodically.
Varaince is calculated and posted to
variance accounts .
Generally used for FG , Semi FG
Std price can be calculated with either
product cost planning or Actual costing
The following types of cost estimates can be created in the Product Cost Planning
component :
1 . Cost Estimate for Base planning object (Reference and Simualtion Costing)
2. Cost Estimate with Quantity Structure
3 . Cost Estimate with out Quantity Structure
Costing Sequence
Type of
Cost
Estimate 
Reference and
Simualtion Costing

Cost Estimate without
Quantity Structure

Cost Estimate with
Quantity Structure
Time
Stage
New product
proposal / Master
data is not
available

First Prototype/ Material
master data is available /
PP master data not
available
(Eg : BOM and routing
data not available

Production stage /
Complete MM and PP
master data is availble
Cost
estimate
type
Unit Cost Estimate Unit Cost Estimate Automatic Cost Estimate
and Unit Cost
Estimate(only for Additive
cost)
Automatic vs Unit Cost Estimate
Automatic Cost Estimate Unit Cost Estimates(Manual entry of cost items)
Cost Esimate is created automatically Unit Cost Estimate is prepared manually for various
198

based on the PP quantity Structure .
BOM (Bill of Material provides
planned qty of RM)
Routing( Priovides number of Activity
uints required )
cost items or by copying from other cost objects.
Eg: Unit Costing is used for
1. Materials without quantity structure
2. Materials with quantity structure to enter
additive costs
3. Base Planning objects
Cost Component Split
We can generate one or two types of the following cost component splits.
1. Cost of goods manufactured
2. Primary cost component split
We specify one of the above cost component splits as the Main cost component split
and one as the Auxiliary cost component split.
Main CCS and Auxiliary Aux CCS can be specified at the combination of company code
, plant and costing variant level as in the following screen shot
199

Main Cost Copmonent Split is used for updating the standard price in the material
master. An Itemization is avialble for only Main cost component split.
Auxiliary cost component split is used for comparision purpose.
1. Reference and Simualtion Costing
Reference and Simualtion Costing is used to create a cost estimate for a newly
propsed product/service for which no master data is available.
Scenario : A cost estimate is to be created for a product(LAPFG1) which is to be
manufactured in house . In the production process various components are used and
activities(internal and external ) are performed apart from subcontracting .
The components/subcomponents materials are given in the following table.
Component Material type Procurement Valuation
LAPRM1 Raw Material External purchase from two
different vendors(Procurement
alternatives)
Price from purchase
info record
LAPRM2 Raw Material External purchase Price from material
master record
LAPSFG1 Semifinished
product
In-house production in the same
plant with two production versions
To be costed
product
In-house production/Different plant
(Special Procurement)
Existing costing data
from supplying plant is
to be used
LAPPM Packing
material
External purchase Price from material
master
200

Solution : We create a baseplanning objects for each of the two semifinished
products .For these two base planning objects we create single level unit cost
estimates. The costing items are to be entered manually in the list screen/detail screen
of unit costing .
Then we perform multilevel unit costing We can create a worklist which facilitates
access to frequently used data.
The activity details are given in the following table
Activity Internal or
external ?
Valuation
Machine
hour
Internal Calculating actual cost using actual costs recorded in
cost centers
Assembling Internal Activity price is set manually
Processing Internal Activity price is set manually
Packing External Price from purchase info record
1. CO Settings
1. Creating Secondary Cost Elements
TCode : KA06
Extras menu  Set Controlling area
Enter
Valid From : 1.4.2011 to 31.12.9999
Enter
Name : RM OH
Description : RM OH
CostElem Category : 41 (OH rate)
Save
Valid From : 1.4.2011 to 31.12.9999
Enter
Name : Activity Allocation
Description : Activity Allocation
CostElem Category : 43 (Internal Activity Allocation)
Indicators tab
201

√ Record qty
Unit of Measure : H Hour
Note : Record qty is very important setting. This can not be changed in the fiscal year if
already data is posted . This can only be changed in a new fiscal year before any data is
posted .
Save
Valid From : 1.4.2011 to 31.12.9999
Enter
Name : Prod OH
Description : Prod OH
CostElem Category : 41 (OH rate)
Save
2. Creating Activity Types Machine Hour/ Packing/
Asssembling/ Processing
Data 
Tcode: KL01
Activity Type : MCH
Valid From : 1.4.2011 to 31.12.9999
Enter
Name : Machine Hours
Description : Machine Hours
Activity Unit : H
ATyp Category : 1 (Manual Entry & Manual Allocation)
Save
Activity Type : PCKG
Valid From : 1.4.2011 to 31.12.9999
Master Data button
202

Name : Packing
Description : Packing
Activity Unit : UN Unit
Save
Activity Type : ASMB
Valid From : 1.4.2011 to 31.12.9999
Name : Assembling
Description : Assembling
Activity Unit : UN Unit
Save
Activity Type : PRCS
Valid From : 1.4.2011 to 31.12.9999
Name : Processing hrs
Description : Processing hours
Activity Unit : H Hours
Save
203

2. MM Enduser
1. Creating Material master LAPRM1
Error : Tables TCURM and T001W inconsistent
Reason : This problem arises when a plant is created by copying another plant. Plant
assignment to company code is also copied .
Solution : Assign the plant to company code using TCode : SM31, instead of through SPRO
customizing. Table/View to be maintained is V_T001K_ASSIGN.
TCode : MM01
Material : LAPRM1
Select views Basic data1, Purchasing , General Plant Data / Storage 1 , Accounting 1
Plant : LAP1
Enter
Basic Data1 tab:
Material : LAP RM1 (Steel)
Division : LS
Net Weight : 1 KG
Gross Weight : 1 KG
Purchasing Tab
Accounting 1 tab
Moving Price : 270
Save
204

2. Creating Material master LAPRM2
TCode : MM01
Material : LAPRM2
Select views Basic data1, Purchasing , General Plant Data / Storage 1 , Accounting 1,
Costing1 and Costing2
Plant : LAP2
Enter
Basic Data1 tab:
Material : LAP RM2 (Steel)
Division : LS
Net Weight : 1 KG
Gross Weight : 1 KG
Purchasing Tab
Accounting 1 tab
Moving Price : 360
Save
3. Creating Purchase Info Record for External activity
PCKG
SAP Easy AccessLogisticsMaterail ManagementPurchasingMaster DataInfo
RecordCreate
TCode : ME11
Vendor : LAPTRVNDR
Material : Blank
Purchasing Org. : LAPO
Plant : LAP1
Info Record :
Info category
205

Standard`
Enter
Description : Packing
Material Group : 0001
Order Unit : UN
Sort Term : SERVICES
Enter (or ‘Purch .Org Data 1‘ button)
Control
Pl. Deliv. Time : 1 Days
Purch Group : LPG
Standard Qty : 1 UN
Conditions
Net Price 10 INR / 1 UN
Conditions button
Double click on condition type ‘PB00’
Save
1. CO Enduser
1. Create Cost Element Group
Tcode :KAH1
Cost element group : RSE
Enter
Description: Rent , Salary , Elect
RSE
400500
400600
400392
206

Save
2. Create Activity type Group
TCode :KLH1
CO Area : LAP
Activity Type group :
Enter
Description : Testing
Activity Type button
TSHRA
TSHRM
Save
3. CC Planning for CC 1001
Tcode : KP06
Version : 0
From Period : 1
To Perod : 12
Fiscal Year : 2011
Cost centre : 1001
Form based
…
…
…
…
207

400600
400392
Total
Post
4. Activity planning for MCH
Tcode : KP26
Version : 0
From Period : 1
To Perod : 12
Fiscal Year : 2011
Cost centre : 1001
Activity Type : MCH
Form based
Activity Type Plan Activity
MCH
Post
Tcode : KP06
Version : 0
From Period : 1
To Perod : 12
Fiscal Year : 2011
Cost centre : 2001
Form based
…
…
…
…
…
…
…
…
208

400600
400392
Total
Post
6. Activity planning for PRCS
Tcode : KP26
Version : 0
From Period : 1
To Perod : 12
Fiscal Year : 2011
Cost centre : 2001
Activity Type : PRCS
Form based
PRCS
Post
Tcode : KP06
Version : 0
From Period : 1
To Perod : 12
Fiscal Year : 2011
Cost centre : 1002
Cost element group: RSE
Form based
…
…
…
…
…
…
…
…
209

400600
400392
Total
Post
8. Activity planning for ASMB
Tcode : KP26
Version : 0
From Period : 1
To Perod : 12
Fiscal Year : 2011
Cost centre : 1002
Activity Type : ASMB
Form based
ASMB
Post
9. Calculating planned Activity Price
Upto Cost Centre Accounting same path
PlanningAllocationsPrice Calculation
Tcode : KSPI
All Cost Centres
Version : 0
From Period : 1
To Perod : 12
Fiscal Year : 2011
√ Test Run
√ Details List
Execute
Messages button ( Messages button is available only in case of any errors)
…
…
…
…
…
…
…
…
210

Save
Enter
Back button
10. Activity planning for PCKG
Tcode : KP26
Version : 0
From Period : 2
To Perod : 2
Fiscal Year : 2011
Cost centre : 1002
Activity Type : PCKG
Form based
Activity Type Capacity Fixed price Variable price
PCKG
Post
4. Creating a Base Planning Object LAPSFG1_BPO in
plant LAP1
SAP Easy Access AccountingControllingProduct Cost ControllingProduct Cost
Planning Reference and Simulation CostingCreate Base Planning Object
TCode :KKE1
Enter
Base Planning Object : LAPSFG1_BPO
Enter
Company Code : LAP
…
…
…
…
211

Plant : LAP1
Name BPO for LAPSFG1
Save
5. Create single level unit cost estimate for
LAPSFG1_BPO
Same path
Change Base Planning Object
TCode : KKE2
Enter
Create Cost Estimate button
Costing Variant : PG
Lot Size : 1 EA
Enter
Item Category Resource Pant/Activity Quantity Description CostElement Formula
1 M LAPRM1 LAP1 400599
2 E 1001 MCH 1000000002
3 O Mat OH =(('1')*5)/100
Save
Save
6. Creating a Base Planning Object LAPSFG2_BPO in
plant LAP2
Planning Reference and Simulation CostingCreate Base Planning Object
TCode :KKE1
Enter
Enter
212

Company Code : LAP
Plant : LAP2
Name BPO for LAPSFG2
Save
7. Create single level unit cost estimate for
LAPSFG2_BPO
Same path
Change Base Planning Object
TCode : KKE2
Enter
Create Cost Estimate button
Lot Size : 1 EA
Copy from
Base Object : LAPSFG1_BPO
Enter
2 E 2001 PRCS 1000000002
3 O Mat OH =(('1')*5)/100
Save
Save
8. Create multilevel unit cost estimate
The component materials are given in the following table.
213

external ?
Valuation
Machine
hour
cost centers
Material BOM
LAPFG1
LAPSFG1
LAPSFG2
LAPPM
LAPSFG1 LAPRM1
LAPSFG2 LAPRM2
Same path
 Edit Base Planning Object-Multievel
TCode: CKUC
Right Click on the Costing StructureCreate Base Planning Object
Base Planning Object : LAPFG1_BPO
Enter
Company Code : LAP
Plant : LAP1
Name BPO for LAPFG1
Save
Lot Size : 1 EA
Enter
Now we are creating a worklist in which we include the items that are used in the multilevel
cost estimate.
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’Worklist On’ button
’Create Worklist’ button
Name : cost_estimate_LAP
Manually-configured container : LAPFG1
Item category-Independent
Enter
Right click on worklist ‘LAPFG1’ Select Base Planning Object
Base Planning Object : LAPSFG1_BPO to LAPSFG2_BPO
Execute button
Select the two Base Planning Objects
Enter
Right click on worklist ‘LAPFG1’ Select Internal Activity
Enter
Select ASMB
Enter
Now we can drap and drop the items from worklist into the costing structure.
Drag ‘LAPSFG1_BPO’ from worklist and drop on ‘LAPFG1_BPO’
Drag ‘LAPSFG2_BPO’ from worklist and drop on ‘LAPFG1_BPO’
Drag ‘Assembling’ from worklist and drop on ‘LAPFG1_BPO’
Change the quantity as shown in the table below
Enter items of category F manually
Ite
m
Categor
y
Resource Pant/Activ
ity
Pur
Org
Quantity Description CostElment
1 B LAPSFG1_BP0 400599
2 B LAPSFG2_BP0 1000000002
3 E 1002 ASMB 1000000002
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4 F 250(Pur Info
Rec)
LAP1 LAPO Packing 1000000002
Enter
Select the 4 items
Keep the curser in 5th
line
Insert total( ) button
Save
Yes button
9. Exploding a material cost estimate/Base Planning
Object
While in the same screen
Funtions menu Explode Base Planning Object
Select the two base planning objects
Explode button
2. Creating a cost estimate w/o quantity
structure
Scenario : A cost estimate is to be created for the product for which we created a cost
estimate using Reference and Simulation costing . Material master has been created
for the material but not the PP master data(BOM and Routing) .
Solution : We create a multilevel unit cost estimate .
1. CO Settings
1. Creating Cost Center (Allocation)
Tcode : KS01
Enter
Cost center: 1005
Valid From : 1.4.2011 to : 31.12.9999
Enter
216

Name : OH CC
Description : OH CC
Person Responsible : Mr. A
Cost Center Category : 9 (Allocation Cost Centre)
Hierarchy Area : STD_HIER
Currency : INR
Save
2. Define OH keys
SPROControllingProduct Cost ControllingProduct Cost PlanningBasic Settings
for Material CostingOverheadDefine Overhead Keys
New Entries
Over Head Key Description
LAP1 LAP OH key
Save
Continue
3. Define OH Groups
Same Path Next line
New Entries
Valuation Area Over Head Group Over Head Key Name of the Over Head Key
LAP1 LAPOHG LAP1 LAP OH group
LAP2 LAPOHG LAP1 LAP OH group
Save
Continue
4. Define Calculation Bases
Upto Overhead same path
Costing Sheet:ComponentsDefine Calculation Bases
New Entries
Base Name
K1 RM cost
K2 Prod cost
Enter
Select Base K1
217

Enter
New Entries
From Cost element
400599
Save
Continue
Double click on Calculation base folder
Select Base K2
Enter
New Entries
From Cost element
10000000002
Save
5. Define Percentage OH Rates
Same path Next line
New Entries
O/H Rate Name Dependency Description
LAP3 RM OH D010
LAP4 Prod OH D020
Save
Continue
Select OH rate LAP3
New Entries
Valid from Valid To CO area OH Type OH key Percentage
1.4.2011 31.12.9999 LAP 1 LAP1 5
1.4.2011 31.12.9999 LAP 2 LAP1 5
Save
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Continue
Double click on Prcentage overhead folder
Select OH rate LAP4
New Entries
Valid from To CO area OH Type Plant Percentage
1.4.2011 31.12.9999 LAP 1 LAP1 5
1.4.2011 31.12.9999 LAP 2 LAP1 5
1.4.2011 31.12.9999 LAP 1 LAP2 5
1.4.2011 31.12.9999 LAP 2 LAP2 5
Save
6. Define Credits
we are going to create 2 credit keys one for material overhead and other for the production
overhead. By defining the credit key you are crediting the cost centre and debiting the
product or the production order. The credit on the cost centre happens with the overhead
cost element which we created earlier 1000000001 (RM OH) and 1000000003 (Prod OH).
Here we specify the allocation cost centre which is to be credited. You can also define what
percentage of the overhead is to be allocated as fixed costs.
Same path
New Entries
Credit Name
K5 LAP RM OH credit
K6 LAP Prod OH credit
Enter
Select Credit K5
Enter
New entries
Valid To Cost element Fixed % Cost centre
31.3.9999 1000000001 100 1005
Save
Continue
Double click on Credit folder
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Select Credit K6
Enter
New entries
Valid To Cost element Fixed % Cost centre
31.3.9999 1000000003 100 1005
Save
Continue
7. Define Costing Sheet
Same path up to overhead
Define Costing Sheets
New Entries
Costing Sheet Description
LAP1 LAP costing Sheet
Save
Continue
Select Costing Sheet LAP1
Double click on Costing sheet rows folder
New Entries
Row Base O/H Rate Description From To Row Credit
10 K1 RM
20 K3 RM OH 10 10 K5
30 K2 Prod
40 K4 Prod OH 30 30 K6
50 COGM 10 40
Save
Continue
8. Define Costing Variant
Same path upto Product Cost Planning
Material Cost Estimate With Quantity StructureDefine Costing Varaint
Select Costing Variant PPC1
Copy as button
220

Costing Variant : LAP1 Standard Cost Est. LAP
Enter
Select Costing Variant LAP1
Details button
Create button (Button next to Valuation Variant)
Select Valuation Variant 001
Details button
Create button ( Button next to Valuation Variant/Plant)
Select Valuation variant 001 for plant 1000
Copy As button
In plnt : LAP1
Enter
Select Valuation Variant 001 for plant LAP1
Details button
Overhead tab
Enter Costing Sheet 'LAP Costing Sheet ‘ in both places
 Save
Continue
Back button
Select Valuation Variant 001 for plant LAP1
Copy as button
in plnt : LAP1
Enter
Save
9. Define Cost Component Structure
Same path up to Product Cost Planning
Basic settings for Material CostingDefine Cost Component Structure
Select Cost Component Structure ‘01’
’Copy As’ button
Cost Component Structure Active Prim Cost Comp Split Name
L1 √ . LAP COGM Cost comp str
Enter
Continue
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Save
Continue
Select Cost Component Structure ‘L1’
Double Click on Cost Components with Attributes
Delete all Cost Components except 10, 50, 70 and 80
Cost Comp
Struct
Cost Comp Name
L1 10 Raw Materials
L1 50 Production
L1 70 Production OH
L1 80 Material Overhead
Save
Select Cost Component structure ‘L1’ with Cost Component ‘10’ (Raw Materials)
Double click on ‘Assignment: Cost Components-Cost Element Interval
New Entries
Cost Comp
Struct
Chart of
Acc
From cost el. Cost Comp
L1 LACA 010
L1 LACA 010
Select Cost Component structure ‘L1’ with Cost Component ‘50’ (Prod machine)
New Entries
Cost Comp
Struct
Chart of
Acc
From Cost Comp
L1 LACA 050
Select Cost Component structure ‘L1’ with Cost Component ‘80’ (Materials OH)
New Entries
Cost Comp
Struct
Chart of
Acc
From Cost Comp
L1 LACA 080
222

Select Cost Component structure ‘L1’ with Cost Component ‘70’
New Entries
Cost Comp
Struct
Chart of
Acc
From Cost Comp
L1 LACA 070
Save
Continue
Double Click on Cost Components Structure folder
Double click on ‘Assignment:Organiz.Units-Cost Component Struct’ folder
New Entries
Company
Code
Plant Costing
Variant
Valid
from
Cost Comp Structure(Main
CCS)
LAP ++++ ++++ L1
Save
Double Click on Cost Components Structure folder
Cost Comp
Struct
Active Prim Cost Comp Split Name
L1 √ . LAP COGM Cost comp str
Save
10. Check/Change price calculation settings in Version
(Already done in Cost Center Accounting)
TCode: OKEQ
Select Version ‘0’ ie Plan/actual version
Double click on ‘Settings for Each Fiscal Year ’ folder
Version : 0
Enter
223

Double click on top row
Price calculation tab
Plan
Actual
Methods : Periodic price
Revaluation : Own business transaction
Cost Comp. Str. : L2 LAP Actvity Cost Comp Str
Back button repeat the procedure for all rows(ie for all years)
Save
Continue
2. MM Enduser
1. Creating Material master LAPFG1
224

Tcode : MM01
Material : LAPFG1
Sales: General/Plant Data , MRP 1 , Accounting 1 , Costing1 and Costing2
Plant : LAP1
Sales Org. : LANS
Distr. Channel : LD
Enter
Description : LAP FG1
Division : LS
Tax Data
1 for MWST
Gross Weight : 1
Net Weight : 1
Trans. Grp : 0003
MRP 1 Tab
Accounting 1 tab
225

Save
2. Creating Material master LAPSFG1
Tcode : MM01
Material : LAPSFG1
Material Type : Semi-finished products
Select Basic Data1, General Plant Data /Storage 1 ,Accounting 1 , Costing1 and
Costing2
Plant : LAP1
Enter
Description : LAP SFG1
Division : LS
Gross Weight : 1 KG
Net Weight : 1
Accounting 1 tab
Valuation class : LAP2 (Semi -finished products)
Save
Tcode : MM01
Material : LAPSFG2
Select Basic Data1, General Plant Data /Storage 1 , Accounting 1 , Costing1 and
Costing2
226

Plant : LAP1
Enter
Description : LAP SFG2
Division : LS
Gross Weight : 1 KG
Net Weight : 1
Accounting 1 tab
Save
Tcode : MM01
Material : LAPSFG2
Select General Plant Data /Storage 1 , MRP1 ,MRP2 ,Accounting 1 , Costing1 and
Costing2,
Plant : LAP2
Enter
Accounting 1 tab
Save
5. Creating Purchase Info Record LAPRM1 / two vendors
227

We are creating pur info record for two vendors with different price
SAP Easy AccessLogisticsMaterail ManagementPurchasingMaster DataInfo
RecordCreate
TCode : ME11
Vendor : LAPRMVNDR
Material : LAPRM1
Plant : LAP1
Info Record :
Info category
Standard`
Enter
Purch.Org.Data 1 button
Control
Purch. Group : LPG
Standard Qty : 10 KG
Conditions
Net Price INR / 1 KG
Save
TCode : ME11
Vendor : LAPTRVNDR
Material : LAPRM1
Plant : LAP1
Info Record :
Info category
Standard`
Enter
Purch.Org.Data 1 button
Control
228

Purch. Group : LPG
Standard Qty : 10 KG
Conditions
Net Price INR / 1 KG
Save
3. CO Enduser
1. Cost Estimate W/O Quantity Structure(Single level) for
LAPSFG1
Option1 : we can create single level unit cost estimate as shown in this step.
Option2: We can also create single level unit cost estimate in multilevel costing
screen(TCode :CKUC)
Planning Material CostingCost Estimate Without Quantity StructureCreate
TCode: KKPAN
Material : LAPSFG1
Plant LAP1
Costing Data Tab
Costing Variant : LAP1 Standard Cost Est. (Mat.)
Costing Version : 1
Dates Tab
Default Values button
(Date Fields filled automatically)
Enter
Enter the data as shown in the table
229

1 M LAPRM1 LAP1
2 E 1001 MCH
3 O Mat OH 1000000001 =(('1')*5)/100
Enter ( if any warning messages)
Save
Save
2. Multilevel Cost Estimate for LAPFG1
Planning Material CostingCost Estimate Without Quantity StructureEdit Multilevel
TCode: CKUC
Right Click on the Costing StructureCreate Material Cost Estimate
Material : LAPFG1
Plant : LAP1
Costing Data tab
Costing Variant : LAP1
Costing Version : 1
Dates tab
Enter
Now we are creating a worklist in which we include the items that are going to be used in
the multilevel cost estimate.
’Worklist On’ button
 Container button( )Insert Container
Name of new container: LAPFG1
Item category-Independent
Enter
Right click on worklist ‘LAPFG1’ Select Material Cost Estimate
230

Material Number : Blank
Plant : LAP1
Std cost est √ Future √ Current √ Previous
Execute button
Select the LAPSFG1
Enter
Right click on worklist ‘LAPFG1’ Select Internal Activity
Enter
Select all the three activity types
Enter
Now we can drap and drop the items from worklist into the costing structure.
Drag ‘LAPSFG1’ from worklist and drop on ‘LAPFG1’ under Costing Structure
Copy
Enter
Right click on ‘LAPFG1’ under Costing StructureCreate Material Cost Estimate
Material : LAPSFG2
Plant : LAP2
Costing Data tab
Costing Version : 1
Dates tab
Enter
Change the quantity as shown in the table below
231

2 E 2001 PRCS
3 O Mat OH 100000000001 =(('1')*5)/100
Save
Enter
Include cost estimate LAPSFG2 to LAPFG1 by drag n drop
(Cost estimate for LAPFG1 will be updated)
Drag ‘Assembling’ from worklist and drop on ‘LAPFG1’ under Costing Structure
Change the quantity column asshown in the table
Item Category Resource Pant/Activity Pur
Org
Quantity Description CostElement
1 M LAPSFG1 LAP1 400599
2 M LAPSFG2 LAP2
3 E 1002 ASMB
4 F 250(Pur info
rec)
LAP1 LAPO 1000000002
Save
Yes button
Functions menuExplode Material Cost Estimates
All Levels
Material : LAPFG1
Enter
Material Number : LAPFG1
Plant : blank
Execute
Double click on material LAPFG1
232

3. Creating a cost estimate with quantity
structure
Scenario: PP master data like BOM , routing is available for the material LAPFG1.
The below given tables gives information of various components, activities . Certain
costs like freight charges , additional components are to be added manually.
The components/subcomponents materials are given in the following table.
Component Material type Procurement Valuation
LAPRM1 Raw Material External purchase from two
different vendors(Procurement
alternatives)
Price from purchase
info record
LAPRM2 Raw Material External purchase Price from material
master record
product
In-house production in the same
plant with two production versions
To be costed
product
In-house production/Different plant
(Special Procurement)
Existing costing data
from supplying plant is
to be used
LAPPM Packing
material
External purchase Price from material
master
The activity details are given in the following table
external ?
Valuation
Machine
hour
cost centers
Assembling Internal Activity price is set manually
Processing Internal Activity price is set manually
Solution : A cost estimate with quantity structure is to be created for the material. As
semifinshed products are involved in production process multilevel costing is to be
233

done. The cost estimate is a mixed cost estimate because one of the component has
procurement alternatives.
Freight charges , additional components can be included into cost components
manually using the function ‘Additive costs’.
1. FI Settings
1. Create GL Account Gain/Loss from Revaluation :
GL Account : 400502
2. Automatic account assignment for transaction UMB
TCode : OBYC
2. PP settings
1. Define MRP Controller
SPROProductionMaterial Requirement Planning Master DataDefine MRP
controllers
New Entries
Plant MRP Controller
LAP1 MRP
LAP2 MRP
Save
Continue
2. Define Floats(Scheduling Margin Key)
Upto Material Requirement Planning same path
PlanningScheduling And Capacity parametersDefine Floats
New Entries
Plnt Marg Op. Per FI Bef FI
After
Rel.Per
LAP1 LAP 02 02 02 02
LAP2 LAP 02 02 02 02
Save
Continue
3. Define Production Scheduler
Upto Production Same path
Shop Floor ControlMaster DataDefine Production scheduler
New Entries
234

Plant ProdSched
LAP1 MrS
LAP2 Mrx
Save
4. Determine Person Responsible for WorkCenter
SPROProductionBasic DataWork CentreGeneral DataDetermine Person
Responsible
New Entries
Plnt Pers. respons
LAP1 MRw
LAP2 Mrx
LAP3 Mr3
Save
Continu
5. Define parameters
Upto General Data Same path
Standard Value Define parameters
Select parameter ‘SAP_14’ ie User field
Copy as button
Parameter : LAP_14
Origin : 2 Standard value in the op
Parameter text : Assembling
Keyword : Assembling
Dimension : AAAADL
Standard Value : 1
Standard value unit : UN
Enter
Save
Select parameter ‘SAP_14’ ie User field
Copy as button
Parameter : LAP_15
Parameter text : Packing
235

Keyword : Packing
Dimension : AAAADL
Standard Value : 1
Standard value unit : UN
Enter
Save
Select parameter ‘SAP_02’ ie Machine
Copy as button
Parameter : LAP_16
Parameter text : Processing
Keyword : Processing
Dimension : TIME
Standard Value :
Standard value unit : H
Enter
Save
6. Define Standard value key
Same path
 Define Standard value key
Select Satndard ‘SAP1’ ie Normal Production
Copy as button
Std val. key : LAP1
4th
Parameter : LAP_14
5th Parameter : LAP_15
6th Parameter : LAP_16
Enter
Save
7. Check Formulas for Costing
SPROControllingProduct Cost Controlling Product Cost Planning Material
Cost Estimate with Quantity StructureSettings for Quantity Structure
ControlRouting Selection Check Formulas for Costing
New Entries
236

Formula key : LAP_14 Assembling
Formula
LAP_14 * SAP_09 / SAP_08 / SAP_11
Indicators
√ Generate PRT Allowed For Reqmts
√ Allowed for Calulation √ Allowed for Scheduling
Work Center for Capacity Reqmts
Save
Next Entry button( )
Formula key : LAP_15 Packing
Formula
LAP_15 * SAP_09 / SAP_08 / SAP_11
Indicators
Save
Next Entry button( )
Formula key : LAP_16 Processing
Formula
LAP_16 * SAP_09 / SAP_08 / SAP_11
Indicators
237

Save
3. PP Enduser
1. Creating BOM for LAPSFG1
SAP Easy Access LogisticsProductionMaster Data Bills of Material Bill of
Material
Material BOMCreate
Tcode : CS01
Material : LAPSFG1
Plant : LAP1
BOM usage : 6 (Costing)
Enter
Component Quantity
LAPRM1
Enter
Save
2. Creating BOM for LAPSFG2 in plant LAP2
Material
Tcode : CS01
Material : LAPSFG2
Plant : LAP2
Enter
Component Quantity
LAPRM2
Enter
Save
3. Creating BOM for LAPFG1
Material
Tcode : CS01
Material : LAPFG1
238

Plant : LAP1
Enter
ICt Component Quantity
N LAPSFG1
N LAPSFG2
Enter
Save
4. Material BOM Browser
Same path upto Material BOM
MultilevelMaterial BOM Browser
TCode : CSMB
Material : LAPFG1
Plant : LAP1
Alternative :
Application : PC01
Enter
Goto menuExplode Material BOMMulti-level
Execute
5. Creating Work Center
Same path upto MasterData
WorkCentresWorkCentreCreate
Tcode : CR01
Plant : LAP1
WorkCentre : 1001 Machining
WorkCentre Cat. : 0001 Machine
Enter
Description : Machining
Person Responsible : MRW
Usage : 009 (All task list types)
Standard Value Key : LAP1 (Normal Production)
Enter
Costing Tab
239

Cost Centre : 1001
Alt Activity
Descr
Activity Type Activity Unit Formula
No Activity
Machine MCH H SAP002
No Activity
No Activity
No Activity
No Activity
Save
Tcode : CR01
Plant : LAP2
WorkCentre : 1002 Processing
Enter
Description : Processing
Person Responsible : MRX
Standard Value Key : LAP1 (Normal Production)
Costing Tab
Cost Centre : 2001
Alt Activity
Descr
No Activity
No Activity
No Activity
No Activity
No Activity
Processing PRCS H LAP_16
Save
Tcode : CR01
Plant : LAP1
WorkCentre : 1003 Assembling
240

Enter
Description : Assembling
Person Responsible : MRW
Standard Value Key : LAP1 ( )
Costing Tab
Cost Centre : 1002
Alt Activity
Descr
No Activity
No Activity
No Activity
Asemmbling ASMB UN LAP_14
Packing PCKG UN LAP_15
No Activity
Save
8. Creating Routing for LAPSFG1
Upto Master Data same path
RoutingsRoutingsStandard RoutingsCreate
Tcode : CA01
Material : LAPSFG1
Plant : LAP1
Operations button
New entries button( )
Usage : 1 (Production)
Status : 4 (Released general )
Planning Work Centre : 1001
Save
Operatio
n
WorkCentre Plant Control Key
0010 1001 LAP1 PP01
Double Click on Operation ‘0010’
241

Std Value Un Act. Type
Machine H MCH
Save
9. Creating Routing for LAPSFG2
Tcode : CA01
Material : LAPSFG2
Plant : LAP2
New entries button( )
Save
Operatio
n
WorkCentre Plant Control Key
0010 1002 LAP2 PP01
Processing H PRCS
Save
10. Creating Routing for LAPFG1
Tcode : CA01
Material : LAPFG1
Plant : LAP1
New Entries button( )
242

Save
Operatio
n
WorkCentre Plant Control Key Units of Measure
0010 1003 LAP1 PP01
0020 1003 LAP1 PP02 UN
Assembling UN ASMB
Back button
Packing UN PCKG
External processing
(Scroll down)
Purchasing Info Rec. : 250 Purch. Organization : LAPO
Enter
Save
4. CO settings
1. Creating Tranfer Control
We are using SFG from one plant as a component in FG of another plant(in the same CO-
area). SFG is costed in the supplying plant and cost estimate is tranfered to receiving plant .
For that we have to assign Transfer control in Costing variant. Transfer control determines
how Cost estimate is tranfered from one plant to other.
SPROControllingProduct Cost ControllingProduct Cost PlanningMaterial Cost
Estimate with Quantity StructureCosting Variant ComponentsDefine Transfer
Control
Select ‘PC01’ Transfer w. Plant Change
Copy As button
243

Transfer Control LAP1 Transfer w. Plant Change LAP
Single-Plant tab
Strategy .Seq Fiscal year
No Transfer
No Transfer
No Transfer
Cross-Plant tab
Strategy .Seq Fiscal year
Period-Based Transfer
Current Standard Cost Estimate √
Future Standard Cost Estimate √
Enter
Save
2. Assigning Transfer Control in Costing variant
Same path upto Material Cost Estimate with Quantity Structure
Define Costing Variants
Double click on LAP1
Tranfer Control : Trnsfr w. Plant Change LAP
Save
3. Creating Special Procurement Types
A link can be set up between supplying plant and recieving plant with help of special
procurement.
Material master data is maintained in both plants. In recieving plant
SPROControllingProduct Cost ControllingProduct Cost PlanningMaterial Cost
Estimate with Quantity StructureSettingsfor Quantity Structure ControlMaterial
DataCheck Special Procurement Types
244

New Entries
Plant : LAP1
Sp.Pr.Type : 81 Stock transfer (proc.from plant LAP2)
Procurement type : E In-house production
Special Procurement
Special procurement :P Prod. other plant
Plant : LAP2
√ Direct production
Save
4. Update Additive Costs
TCode : OKTZ
Double click on ‘Cost Component Structure’ folder
Select Cost Comp .Str ’L1 ’
Double click on ‘Cost Components with Attributes’ folder
Select Cost Comp .Str ‘L1 ’ with Cost Component ‘50’
Double click on ‘Update of Additive Cost ’ folder
New Entries
Cost Comp .Str Cost Component Chart of Accts Cost Element
L1 50 LACA 1000000002
Save
Double click on ‘Cost Component Structure’ folder
Cost Comp
Str
Active
L1 √
Save
245

5. Check Settings (for Costing Variant)
Info : We can display all the applicable settings in one place for a combination of Costing
Variant CompanyCode/Plant using this transaction
SPROControllingProduct Cost ControllingProduct Cost PlanningBasic Settings
for Material CostingCheck Settings
TCode : CKC1
Costing Variant : GAC1
Company Code : LAP
Plant : LAP1
Date :
Version : Blank
Execute
(Scroll down to see all the settings that are applied)
5. MM Enduser
1. Enter Spl Proc type in Mat master LAPSFG2 in
plant LAP1
TCode : MM01
Material : LAPSFG2
Enter
Select ‘Costing 1’ ‘MRP2’ and ‘MRP1’views
Enter
Plant : LAP1
Enter
MRP2 tab
Procurement type : E
Special procurement : 81
Costing 1 tab
Quantity structure data
246

SpecProcurem Costing : 81
Save
2. Maintain OH key in Material master
TCode : MM01
Material : LAPRM1
Enter
Select ‘Costing 1’ view
Enter
Plant : LAP1
Enter
Costing 1 tab
Overhead Group : LAPOHG
Save
TCode : MM01
Material : LAPRM2
Enter
Select ‘Costing 1’ view
Enter
Plant : LAP2
Enter
Costing 1 tab
Overhead Group : LAPOHG
Save
6. CO Enduser
247

1. Creating Procurement alternatives
We can procure a material into a plant in different ways.
For example
Process
Category
Procurement
alternatives
Purchase
order
We can purchase the material from a vendor Vendor X
Vendor Y
Production We can produce in house in the same plant Prod version1
Prod version2
Production in
other plant*
We can produce in-house in a different plant(an SFG
can be produced in a different plant )
Prod in PlantX
Prod in PlantY
Stock
transfer*
We can purchase a RM in to one plant and tranfered to
other plant.
From Plant1
From Plant2
*Production in other plant and Stock transfer are treated as special procurements. If we
procure a material in any of these two ways , we need to maintain Procuremetn type in
MRP/Costing views of the material master.
In our scenario we are creating two procurement alternatives of type purchasing. Ie we can
purchase the material from any of the two vendors .
SAP Easy AccessControlling  Product Cost Controlling  Product Cost Planning
 Material Costing Master Data for Mixed Cost Estimate  Edit Procurement
Alternatives.
TCode : CK91N
Material : LAPRM1
Plant : LAP1
Create button
Process Cat. : Purchase order
Vendor : LAPRMVNDR
Cstg Lot Size : 1
Confirm button
Create button
Process Cat. : Purchase order
Vendor : LAPTRVNDR
248

Cstg Lot Size : 1
Confirm button
Save
2. Creating /Changing Mixing Ratios
If Procurement Alternatives are available for a material , mixing ratio is used to determine
which alternative is used in what proportions . For example in this scenario LAPRM1
material has two vendors with different prices ie Rs 270.00 and Rs 280.00 (Please check
the Pur Info record in MM end user section ). If 50% is procured from each of the vendor,
final procurement price in the cost estimate will be Rs275.00
Same path upto Master Data for Mixed Cost Estimate
Mixing Ratios Create /Change
TCode :CK94
Material : LAPRM1
Plant : LAP1
Mixing Ratio
Period : 9
Fiscal Yr : 2015
QtyStruct. Type : MIX
Enter
PCat Changeable name QtyStrDate MR Mixing Ratios
BB Vendor:LAPRMVNDR PurchOrg.:LAPO √
BB Vendor:LAPTRVNDR PurchOrg.:LAPO √
Save
3. Creating Unit cost estimate for Additive Costs
Any costs which can not be calculated using automatic cost estimate ,can be included
manually by using additive costs which is nothing but a unit cost estimate.
Planning Material Costing Cost Estimate with Quantity StructureAdditive
CostsCreate
TCode :CK74N
Material : LAPFG1
Plant : LAP1
249

Costing Data tab
Costing Version : 1
Dates tab
Enter
1 E 2001 PRCS
Enter
Save
Save
4. Creating Cost Estimate for plant LAP1 and
LAP2
When Cost Estimate with Quantity Structure is used there are 2 options to calculate
the cost and update the price
Option 1 : Option 2 :
Step 1.Create Cost Estimate with Quantity
Structure
Tcode : CK11N
Step 2. Price Update
Tcode : CK24
Edit costing Run
Tcode : CK40N
Materials already costed (but with errors) can be
recosted using this method
Multiple materials can be costed at a
time using this method
1. Costing Run
Planning Material CostingCosting RunEdit Costing Run
Tcode : CK40N
Create Costing Run button
Costing Run : LAP
Description : LAP Costing Run
250

Costing Run Date : Today’s date
Costing Version : 01
Company Code : LAP
Enter
Dates tab
Costing Date From : Todays date
Costing Date To : 31.9.2011 (Month End date)
Quantity Structure Date : Todays Date
Valuation Date : Todays Date
Save
Expand Processing
Change Parameter button( ) In the ‘Selection’ Flowstep
Material Number : LAPSFG1 , LAPSFG2, LAPFG1,
Plant : LAP1, LAP2
√ Background Processing
Print Log
 Save
Back Button
Execute button in the Selection Flowstep
(Status should be green)
Change Parameter button In the ‘Struct. Explosion’ Flowstep
 Save
Back Button
Execute button in the ‘Struct. Explosion’ Flowstep
Change Parameter button In the ‘Costing’ Flowstep
√ Log by Costing Level
 Save
Back Button
Execute button in the ‘Costing’ Flowstep
251

(Costing Status should be ‘KA’ ie Costed Without Errors , in all levels . If any level has
status ‘KF’ ie Costed With Errors , double click on the level to see complete error
message)
Msg :No structure could be determined for internal activity ASMB (1002)
Solution : (You can ignore this msg if it is of type warning or info )
Create a primary cost component structure in OKTZ
Assign cost elements to cost components
Assign the cost component structure in OKEQ
Change Parameter button In the ‘Analysis’ Flowstep
Double click on ‘SAP&12’
Plant : blank
Cost Component View : 01
 Save
Back Button
Execute button in the ‘Analysis’ Flowstep
Double Click on LAPFG1
Materails only/All Items button ( ) (To display all items)
Right click on LAPFG1  Expand subtree
(The following image shows what costs arises at what level )
252

Cost Comps button ( )
Choose Layout button( )Choose Layout
Select layout ‘1SAP03’ ie Total/Level/Lower level by clicking
Double click on a material under costing structure
(By selecting a material under the costing structure we can analyse costs at the level of
the material and its lower level )
Back button
Goto button ( )Itemization
Back to CK40N screen
Note :Do all the error corrections before going further for Marking and Releasing flow steps.
Configuartional changes/corrections may not reflect in costing even when the flow steps
( Selection, Struct. Explosion , Costing , Anlaysis ) are re-executed.
For Eg : If we make any changes in the costing variant , the changes will not have any effect
even if we execute costing flow step again. We may have to delete the costing run and
create a new costing run again.
Delete Costing Run :
Planning EnvironmentCosting RunDelete Costing Run
TCode : CK44
Costing Run : LAP
Costing Run Date :
Execute
Delete
Note: Please check the period closed for the company code using TCode MMPV/MMRV
before marking/releasing.
Lock button for ‘Marking’ Flowstep
Double Click on Company code ‘LAP’
Costing Variant : PPC1
Costing Version : 01
 ‘Issue Allowance for Marking ‘ button ( =Save button)
Back button
253

Change Parameter button In the ‘Marking’ Flowstep
√ Test Run
√ With List Output
 Save
Back Button
Execute button in the ‘Marking‘ Flowstep
Change Parameter button In the ‘Marking’ Flowstep again
√ Test Run
Save
Back button
Execute button in the ‘Marking‘ Flowstep again
Costing 2 tab
Make note of change in Future Planned price
Change Parameter button In the ‘Release’ Flowstep
√ Test Run
√ With List Output
 Save
Back Button
Execute button in the ‘Release’ Flowstep
Change Parameter button In the ‘Release’ Flowstep again
√ Test Run
Save
Back button
Execute button in the ‘Release‘ Flowstep again
Costing 2 tab
Make note of change in Current Planned Price and Standard Price
Marking : Marking updates the future price
254

Releasing : Releasing updates the current price
Intialize the closed period : TCode : MMPI or program RMMMINIT can be used to open
the period which is closed by mistake. But this is to be done very carefully. Any material
postings done in the new period will have impact if we reopen the previous period and post
to it.
Parameter ID MMPI_READ_NOTE with current date(YYYYMMDD) as parameter value is to
be maintained in user profile(SU2) before running MMPI.(Note 487381)
Error : Materials locked
Solution : Use Tcode SM12 to unlock.
255

SAP CO step by step config guide & user manual part 1

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