11/08/2015

FlowofentriesinProductCosting|SCN

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9Replies Latestreply:Dec2,20088:59AMbyEdukondaluPericherla

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EdukondaluPericherla

Nov28,200810:22AM

FlowofentriesinProductCosting
ThisquestionhasbeenAnswered.
HiExeprts,

IwouldliketoknowoneclarificationregardingJEinProductcosting

Example:RamMaterialsissuesagainstProdOrderRs.1000
LabourUtilizedRs.500
OverheadsAppliedRs.250

SothetheproductworthisRs.1750\andreceivingthisasinwardsintoFGstock

PleaseexplainmetheentriesinthisflowfromMatIssuetoSaleoftheMaterial.

Iwillgivegoodpointstoyouranswer.

CorrectAnswer
byYukieOkaneonDec2,20088:54AM
Hi,

TheGLaccountfor'OffsettingEntryforInventoryPosting(GBBAUF)'willnotbenullified
automatically.Thatmeans,theGLaccoutwillhavebalance.

Thebalanceoftheoffsettingaccountshouldequaltototalofalltheproductioncosts(rawmaterial
costs,laborcosts,otheroverheadcosts,etc)thatalsodohavebalance.

Usingyourexampleandassumingyouonlyhaveoneproductionorder,theaccountcanbe
reconciledasfollows:

Totalofproductioncostsinproductionorders:
RawmaterialcostsRs.1000
LaborcostsRs.500
OverheadcostsRs.250
LaborandOverheadcostsarepostedtocostcenters/internalorderswithprimarycost
element.FromGLpointofveiw,theseGLaccoutshouldbeusedtoreconcile.

TotalofthesepostingsequaltheamountpostedtotheOffsettingAccount,Rs.1750.

Ifyouwanttobringthebalanceoftheseaccountsto0,youcancreateentryinFIsuchas.
DROffsettingAccountRs.1750
CRRawmaterialcostsRs.1000
CRLaborcosts(GLaccountforit)Rs.500
CROverheadcosts(GLaccountforit)Rs.250

Mostofmycustomerwouldnotmindhavingbalancesforeachoftheseaccountsaslongasthey
cancheckbalanceis0atthetotallevel.

HelpfulAnswerbyHilaryHagblom

4351Views

AverageUserRating
(0ratings)

MangalrajSenthamaraikannan Nov28,200810:45AM (inresponsetoEdukondaluPericherla)

https://scn.sap.com/thread/1146556

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Re:FlowofentriesinProductCosting
DearEdukondaluPericherla,

ProductCost=MaterialsCost(ROH+HALBMaterialsCost)ActivityCost(OperationCost)Overhead

Cost.

1.RawmaterialscostaregenerallyenteredasPlannedpricealongwiththevalidfromdateinCosting
2

view,andpricecontrolindicatoris"V".OrigingrouphastobegiventoalltheRawmaterialsincosting
1

view.

2.ForHALBMaterialsPricecontrolindcatorwillbeSforInhousemanufactured&Vforexternally

processedmaterials(SubContractedItems)respectively.AlsoassignOverheadgroupforallInhouse

manufactureditems.

3.NoneedtoenteranyvalueforthematerialshavingSasthepriceindicatorandforSubcontracted

itemsthat'sF30alsononeedtoenteranycostinthematerialmaster.

4.Activitycostisthecostincurredinperformingindividualoperation.Thiscostiscapturedviathework

centerwhichwementionineachoperationintheroutingofthatproduct.ACostcentreandan

appropriateactivitytypeisassignedintheworkcentre.

5.ProperCostshouldbeassignedforthecombinationofActivitytypeandCostcentre.

6.Overheadcostistheindirectcostthatwecaptureaccordingtothecustomer'srequirement.

7.Ifcertainitemsforcertainproductsaloneshouldnotbeconsideredforcostingmeans,thenwecan

achievethisusingcostingrelevancyindicatorintheBOMandfortheactivity(operation'smentionedin

routing)whichshouldnotbeconsideredforcostingalsocanbemappedbyremovingthecosting

relevancyindicatorinrouting.

OverheadgroupisaasignedinCosting1view.

8.CreatingCostcenterKS01

9.CreateActivityTypeKL01.

10.AssigingRatesforacostcenter/activitytypecombinationinTcodeKP26.

11.CostestimateRelatedTcodesareCK40N,CK11N,CK24.

12.UseCK40Nalways,sothatyoucandothecosting,markthepriceandreleasethesame.Generally

CostRollupwillbetakenforFinishedproductsothatthesytemautomaticallycalculatesfortheSemi

Finsihedproductsstandardcost.

13.IFyouuseCK11N,thenonlycostingwillbedone,butformarkingandreleaseyouhavetouse
CK24.

14.ForeachProductionordertypeinTcodeOPL8OrderTypeDependentParametersUnder

controllingtabCostingvariantPlannedandactualhastobeassigned.

15.InREMscenarioProductCostCollectorhastobecreatedusingTcodeKKF6NforallInhouse

Manufacturedassemblies.

Checktheselinks[What'sOrdersettlement?|

ORDERSETTLEMENT]

StepsForOrderSettlement

YoushouldfollowfollowingstepsforOrderSettlementafterconfirmation:

1.AfterFinalConfirmationofOrder(Status:CNF)makeGRforfororderusingTcode:MIGO/MB31

soProductionOrderStatuswillbeDLV.

2.ThencompletetheordertechnicallybyusingTcode:CO02>Functions(Menu)>Restrict

Processing
>TechnicallyComplete.YoucancarryoutTECOformultipleOrdersinTcode:COHV

(MassProcessing).

3.OverheadcalculationKGI2orCO43

4.WIPcalculationKKAXorKKAO

5.VarianceKKS2orKKS1

6.SettlementKO88orCO88.

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Ihopethishelpsyou.

Regards
Mangalraj.S

Like(0)

EdukondaluPericherla Nov28,200811:15AM (inresponsetoMangalrajSenthamaraikannan)

Re:FlowofentriesinProductCosting
IwantflowofJournalEntriesinFinanceforaboveexamplenotdescriptiveexpalnation.

Like(0)

HilaryHagblom Nov29,20084:25AM (inresponsetoEdukondaluPericherla)

HelpfulAnswer Re:FlowofentriesinProductCosting
TheissueofRawMaterialstotheProductionOrderresultsinacredittoR/MInventoryandadebitto
R/Mconsumed.TheapplicationoflabortotheProductionOrdersresultsinacredittotheCost
CenterusedintheActivityTypethroughtheSecondaryCostElementassociatedwiththeActivity
TypeandadebittotheProductionOrderusingtheActivityTypeSecondaryCostElement.Overhead
isappliedtotheProductionOrderthroughaSecondaryCostElementwhichcreditsthe'originating'
CostCenteranddebitstheProductionOrder.GoodsarereceivedintoInventorywhichcreditsthe
ProductionOrderanddebitsFinishedGoodsInventory.AtmonthendWIPiscalculatedforthose
itemsthatarestillontheProductionOrderandvariancesarecalculatedwhichwillcredit/debitthe
ProductionOrderanddebit/credittheappropriateProductionVariancesaccount.

Like(0)

EdukondaluPericherla Dec1,200810:04AM (inresponsetoHilaryHagblom)

Re:FlowofentriesinProductCosting
Hi,

WhatistheentryatthetimeofFGreceiptisitFGa/cDrandProductionOrderCrandwhatGL
thisproducitonorderwillhave?AndhowCOGSwillbebookedinFI?

Pleaseclarifythese.

Like(0)

SuryaPavannadimpalli Dec1,200810:25PM (inresponsetoEdukondaluPericherla)

Re:FlowofentriesinProductCosting
1)Cr.ROH(balancesheetacct)Dr.finishedgood(balancesheet)
Dr.ROHconsumptionacct(P&L)Cr.plantactivityfinishedgood(P&L)

ThissteprepresentstakingouturROHandmakingfinishedgoodoutofit.

2)Cr.finishedgood(balancesheet)
Dr.COGS

Thisiswhenyoudopostgoodsissueisdone.Hopethishelps.

Like(0)

YukieOkane Dec2,20086:32AM (inresponsetoEdukondaluPericherla)

Re:FlowofentriesinProductCosting
Preconditions:
ThisisatypicalpostingpatternforMaketostockproducts
FGisvaluatedwithStandardprice(S)
StandardpriceforFGisRs.1750,thereforenoproductioncostvarianceexists.
LabourandOverheadscostsareinternallyallocatedfromcostcenters/overheadorders.
YoucangottotransactioncodeOBCYtomake/checkassignmentofGLaccounttoTransaction
Key/ModificationKey.
TheyareusuallydefinedforcombinationofValuationGroup/ValuationClassforeachChartof
Accounts.

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11/08/2015

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<Postingduringproductionprocess>
1.IssueofRawMaterialstoProd.Order.
GLAccount(TransactionKeyAccountModificationKey)AccountAssignments
DRRawMaterialCost(GBBVBR)Prod.Order
CRRawMaterial(BSX)N/A(BSaccount)

2.AllocationofLaborandOverheadcosts(usuallybyconfirmation)arepostedundersecondarycost
elements
andnoGLpostingismade.Controllingdocumentsarepostedasfollows:
LabourCosts(secondarycostelementassinedtotheactivitytype)
DR.Prod.Order
CR.CostCenter

OverheadCosts(costelementspecifiedincustomizing)
DR.Prod.Order
CR.AssignedOverheadObject(costcenter/internalorder)

3.FinalGoodsReceipttoInventory
GLAccount(TransactionKeyAccountModificationKey)AccountAssignments
DRFinishedGoods(BSX)N/A(BSaccount)
CROffsettingEntryforInventoryPosting(GBBAUF)Prod.Order

YoucanalsofindinformationinthefollowingsectionofSAPonlinehelp:
SAPLibrary>SAPERPCentralComponent>Controlling(CO)>ProductCostControlling(COPC)>
CostObjectControlling>ActualCostsinCostObjectControlling>GoodsReceiptsinCostObject
Controlling

<Postingsduringsalesprocess>
1.Shipping
GLAccount(TransactionKeyAccountModificationKey)AccountAssignments
DRCostofGoodsSold(GBBVAX)N/A,unlessyoumaketheaccountacostelement
CRFinishedGoods(BSX)N/A(BSaccount)

2.Billing
GLAccount
DRCustomer
CRSales(specifiedinSDsetting)

Ihopethishelps.

Editedby:YukieOkaneonDec2,20086:31AM

Like(1)

EdukondaluPericherla Dec2,20088:33AM (inresponsetoYukieOkane)

Re:FlowofentriesinProductCosting
HiYukie,

Mydoubthereishowthisoffsettingentrywillbenullified

3.FinalGoodsReceipttoInventory
GLAccount(TransactionKeyAccountModificationKey)AccountAssignments
DRFinishedGoods(BSX)N/A(BSaccount)
CROffsettingEntryforInventoryPosting(GBBAUF)Prod.Order

WaitingforYourReply,

Like(0)

YukieOkane Dec2,20088:54AM (inresponsetoEdukondaluPericherla)

CorrectAnswer Re:FlowofentriesinProductCosting
Hi,

TheGLaccountfor'OffsettingEntryforInventoryPosting(GBBAUF)'willnotbenullified
automatically.Thatmeans,theGLaccoutwillhavebalance.

Thebalanceoftheoffsettingaccountshouldequaltototalofalltheproductioncosts(raw
materialcosts,laborcosts,otheroverheadcosts,etc)thatalsodohavebalance.

Usingyourexampleandassumingyouonlyhaveoneproductionorder,theaccountcanbe
reconciledasfollows:

Totalofproductioncostsinproductionorders:
RawmaterialcostsRs.1000
LaborcostsRs.500
OverheadcostsRs.250
LaborandOverheadcostsarepostedtocostcenters/internalorderswithprimarycost

https://scn.sap.com/thread/1146556

4/5

11/08/2015

FlowofentriesinProductCosting|SCN
element.FromGLpointofveiw,theseGLaccoutshouldbeusedtoreconcile.

TotalofthesepostingsequaltheamountpostedtotheOffsettingAccount,Rs.1750.

Ifyouwanttobringthebalanceoftheseaccountsto0,youcancreateentryinFIsuchas.
DROffsettingAccountRs.1750
CRRawmaterialcostsRs.1000
CRLaborcosts(GLaccountforit)Rs.500
CROverheadcosts(GLaccountforit)Rs.250

Mostofmycustomerwouldnotmindhavingbalancesforeachoftheseaccountsaslongas
theycancheckbalanceis0atthetotallevel.

Like(0)

EdukondaluPericherla Dec2,20088:59AM (inresponsetoYukieOkane)

Re:FlowofentriesinProductCosting
HiYuvie,

ThanksforyourreplyandmyqueryhasbeensolvedandIhaveawardedthepointsto
youalso.

Like(0)

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