SAP-CO-PC - Product Cost Cycle:
100% Pass Guarantee Program of Any SAP Certification.100% positive results.
My email id: udaysap@yahoo.com; Skype id: opelley; contact number: 281-660-6449.
SAP Product costing Calculation With Components - SkillstekSkillstek
SAP Product Cost Calculation is done in the 6 key components of Product Costing, which is part of SAP CO.
Read it at Skillstek's Blog:- https://skillstek.com/product-costing-in-sap/
For more informative content, visit:-
https://skillstek.com/blog
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Website:- https://skillstek.com
Phone:- +91-9556432150
Email:- info@skillstek.com
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LinkedIn:- https://www.linkedin.com/company/skillstek
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SAP Product costing Calculation With Components - SkillstekSkillstek
SAP Product Cost Calculation is done in the 6 key components of Product Costing, which is part of SAP CO.
Read it at Skillstek's Blog:- https://skillstek.com/product-costing-in-sap/
For more informative content, visit:-
https://skillstek.com/blog
Contact Details:-
Website:- https://skillstek.com
Phone:- +91-9556432150
Email:- info@skillstek.com
Social Accounts:-
LinkedIn:- https://www.linkedin.com/company/skillstek
Facebook:- https://www.facebook.com/SkillstekEdu
YouTube Channel:- https://www.youtube.com/c/skillstek
Instagram:- https://www.instagram.com/skillsteksap/
AUC is Asset under construction where some assets are in construction phase and cost needs to
capture through internal order for the time being. Once asset is fully completed then cost would
be transferred to another cost object (E.g. Cost center, Order etc...) and settle with final asset.
E.g. XYZ Company constructing building for their office. While construction many expenses are
attached to it. Till the time it is created we cannot charge it in building account hence we need to
create AUC account where cost will be stored.
Assets under construction (AUC) are a special form of tangible assets. They are usually displayed
as a separate balance sheet item and therefore require a separate account determination and their
own asset classes. During the construction phase of an asset, all actual postings are assigned to the
AUC. Once the asset is completed, a transfer is made to the final fixed asset
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Why implementing SAP Material Ledger as part of your initial SAP implementation will Levegage Material Ledger as a springboard to SAP Profitability and Cost Management software
AUC is Asset under construction where some assets are in construction phase and cost needs to
capture through internal order for the time being. Once asset is fully completed then cost would
be transferred to another cost object (E.g. Cost center, Order etc...) and settle with final asset.
E.g. XYZ Company constructing building for their office. While construction many expenses are
attached to it. Till the time it is created we cannot charge it in building account hence we need to
create AUC account where cost will be stored.
Assets under construction (AUC) are a special form of tangible assets. They are usually displayed
as a separate balance sheet item and therefore require a separate account determination and their
own asset classes. During the construction phase of an asset, all actual postings are assigned to the
AUC. Once the asset is completed, a transfer is made to the final fixed asset
Case study material ledger implementation lessons learnedJohannes Le Roux
Material Ledger as implementaion as part of their initial SAP implementation or during a future rollout phase. In this session we’ll cover:
Why implementing SAP Material Ledger as part of your initial SAP implementation will Levegage Material Ledger as a springboard to SAP Profitability and Cost Management software
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See how to accelerate model training and optimize model performance with active learning
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The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
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In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
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However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
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https://arxiv.org/abs/2306.08302
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Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
SAP-CO-PC - Product Cost Cycle
1. Odaiah Pelley Page 1
Production Cycle/Production Process Steps
(FGX 100 they want to sale)
During the MRP run(MD01) based on the demand
planning(MD04)system will generate purchase requisition or
plannedorder based on the procurement type in the Material
Master in MRP 2 view tab. if it is external procurement system
will generate purchase requisition. Later purchase requisition
converted to the purchase order. If it is in house procurement
type then system will generate plannedorder later planned
order converted to the productionorder.
At the time Production Order creation the plannedcost is
calculatedin combinationof BOM and Routing as per the
valuation variant. Valuation variant is assigned to the plan
costing variant
(06 costing type).
Costing variant we will assign to the production order type. By
using productionorder type we will create the production
order, production order creation time the costing sheet
automaticallywill update cost at productionorder level.
4. Odaiah Pelley Page 4
Goods issue tothe productionorder
Confirmationof activities
Goods receipt fromthe ProductionDept. (FG) and
issue toStorage location tostock
After creating the productionorder the
manufacturing process will start.
Product Order
6. Odaiah Pelley Page 6
We are producing FGX (1000 MM price) (100 qty) for that
purpose we created productionorder.
Goods issue to the production order? What is the Fi entry and
co entry? MB1A
7. Odaiah Pelley Page 7
FI Entry CO Entry
At the time RM Consumption At the time RM Consumption
RM ConsumptionDr
(movement type 261, GBB
VBR, MB1A or CO11N)
RM Stock Cr (Inventory – B/S)
DR production order
At the time Activities
Confirmation
At the time Activities
Confirmation
No FI Entry Production Order Dr
21000
Cost Center Cr
21000
(Cost Center assigned to Work
Center)
Ex: FGX (1 qty): WC1-- PROD1
Labor 10 HR
Machine 20 HR
Power 30 HR
Confirmationof activities for 100 QTY time, system will
propose
Labor 1000*5 HR
Machine 2000*2 HR
8. Odaiah Pelley Page 8
Power 3000*KWH
Confirmationtime actual timings * KP26 price (plan price) this
plan price will be debited to the productionorder and this plan
price will be credited to the cost center. That means we are
allocatingthe cost from the cost center to productionorder.
Goods receipt from the production and issue to storage
location to stock?
What is the fi entry and what is the co-entry?
FI Entry CO Entry
FG stock Dr
(BSX Transaction Key 101
movement type) (qty *STD
price)
COGM/ factory output of
production Cr
(GBB AUF)
Production Order is Credited
1) Runthe distributioncycle andassessmentcycle
2) Actual activity price calculation
3) Runrevaluationof order
4) Actual indirect Overheadcalculation
5) Work in progress
6) Variance calculation
7) Settlement
Production Order Month End Process:
9. Odaiah Pelley Page 9
1) Run the distribution cycle and assessmentcycle: what is the
fi entry and what is the co-entry.
FI Entry CO Entry
No FI Entry Receiver Cost Center Dr
Sender Cost Center CR
2) Actual activity price calculation: what is the fi entry and
what is the co-entry.
FI Entry CO Entry
No FI Entry No CO Entry
Here system will calculateactual per hourrate price and actual
per hour rate price will update in KBK6
Note: actual cost will be posted by fi user. That time actualcost
will update in cost center level.
Salaries 10000 prod1
10. Odaiah Pelley Page 10
Dep 5000 prod1
Electricity 15000 prod1
Cash /bank cr 30000
At the time confirmationof activitiestime the actualtimings
will update in cost center automatically.
How it will update means: in work center we will assign cost
center and activity types.
Actual cost updatedat cost center level and actualhours
updatedat cost center level.
Actual cost/actual hours we will get per hour rate that per hour
rate price will update in KBK6.
Splitting structure will be applicablefor plan and actual both.
Sal=10000/1000 HR per hour rate 10rs
Dep =5000/2000 HR per hourrate 2.5rs
Electricity: 15000/3000 kWh per hourrate 5
3) Run revaluation of order: what is the fi entry and what is the
co-entry?
FI Entry CO Entry
No FI Entry Production Ord
Dr 9000
Cost Center
Cr 9000
11. Odaiah Pelley Page 11
Activity type wise we can absorb 100%
Cost Center Dr 30000
Cost Center Cr 9000
Cost Center Cr 21000
Cost center will be zero by the month end.
12. Odaiah Pelley Page 12
3) Actual indirect Overhead calculation: (if you use costing
sheet method) what is the fi entry and what is the co-entry?
1) FI Entry CO Entry
No FI Entry Production Order
Dr 4000
Cost Center
Cr 4000
(Costing Sheet Credit Key Cost
Center)
Ex: RMX - 1000* 10 = 10000
Based on the raw material 10% is the material oh this % we
have given in costing sheet oh rate.
Materialcost Rs.10000 – 10% MOH on Materialcost = 1000
MOH.
Activity cost Rs. 30000 - 10% AOH on activity cost = 3000
AOH
Total Indirect Overhead = 4000 Total
Amount OH Rate OH
Calculation
Overhead
Amount
Raw
Material
10000 10% 10000* 10% 1000
Activity
Cost
30000 10% 30000*10% 3000
Total Indirect Overhead 4000
13. Odaiah Pelley Page 13
In FI the actual cost (Indirect oh cost you posted 5000 Rs) but
order level you posted only Rs.4000.
That means the total actualcost we cannot charge to the
productionorder and variance also we will not get correct
variance.
If we this costing sheet method 100 % we cannot absorb.
5) Work in progress: Work in progress calculation timesno FI
entry and CO Entry.
It will show the WIP amount for unfinishedproducts.
I created production order for 100 qty (FGX material)
To produce FGX 1 qty we need RMX 10 qty.
We consumed 100 qty RMX and we got output 10 qty of FGX.
WIP calculation FI entry and CO Entry. Just the WIP amount
will show under technicalraw material cost element.
If the order status REL and partial deliver then WIP entry
1) FI Entry CO Entry
No FI Entry No CO entry
WIP unfinishedgoods account DR
WIP change in inventory account Cr (P&L account) this is not a
cost element.
This valueit will flow From CO to FI.
Or WIP B/S Account DR
WIP P&L Account CR
14. Odaiah Pelley Page 14
If the order status delivered (fully received) or TECO then
variance entry will generate and
WIP entry will be reversed.
FI Entry CO Entry CO-PA
Production
Variance Dr
COGM
Cr
Cr/Dr Production
Order
Production
Variance will flow
to the CO-PA.
WIP entry reversed.
WIP P&L account Dr
WIP b/s account Cr.
6) Variance calculation: variance calculationtimes also FI entry
and CO Entry.
Just it will calculate the variance amount (STD-Actual)
7) Settlement: based on the production order status the WIP
entry and variance entry and
COPA entry will generate.