CO - Stepbystep Config & User Manual Part 1

CO Integrated Training Program
(Version 16-1)
Trainer & Author:
Srinivas Kasireddy
91-9959765211
Skype : srinivas3d
Date printed
: 5 November 2016
File Name : 335926579.doc
Srinivas Kasireddy
Srinivasa
Kasireddy +91-9959765211
Book- 1 / 2
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Table of Contents:
1.
CO -Basic Settings......................................................................................... 19
2.
1.
Copy comp code....................................................................................... 19
2.
Maintain Controlling Area............................................................................. 19
3.
Cost Centre Standard Hierarchy...................................................................22
4.
Maintain Versions....................................................................................... 22
Cost Centre Accounting................................................................................. 24

Relationship between Profit centre & Cost centre..................................................24
1.
Settings...................................................................................................... 25
1.
Maintain Number Ranges for Controlling Document........................................25
2.
Creation of Primary Cost Element.................................................................26
3.
Display Cost Elements................................................................................ 28
4.
Creation of FSG (Cost Centre required).........................................................28
5.
Assign New FSG in Expenses G/L Account....................................................28
6.
Creation of Cost Centre............................................................................... 29
7.
Creation CC Groups................................................................................... 30
8.
Creation of CE groups................................................................................. 31
2.
3.
End User:.................................................................................................... 31
1.
Posting of transaction in FI...........................................................................31
2.
Display CC Report...................................................................................... 32
3.
Display CO Document................................................................................. 34
4.
Repost CO Line item................................................................................... 34
5.
Display Cost Center Report.........................................................................35
6.
Creating Common Cost center.....................................................................35
7.
Posting to Common Cost center...................................................................36
8.
Repost Costs:............................................................................................ 36
9.
Display Cost Center Report.........................................................................37
10.
(Cross company code cost accoitng with difrent FYV from COrea).................38
11.
Period Lock............................................................................................ 38
12.
Planning Cost Centre wise........................................................................38
13.
Display Variance report............................................................................ 40
Allocations..................................................................................................... 41
1.
Cost Center relatioships:............................................................................. 42
2.
Assesment................................................................................................ 42
4.
3.
Periodic Reposting :.................................................................................... 42
4.
Distribution:............................................................................................... 43
5.
Indirect activity allocation:............................................................................ 43
6.
Direct activity allocation:.............................................................................. 43
Allocation by Assessment using SKF.............................................................45
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1.
Settings...................................................................................................... 46
1.
Create Cost Centre..................................................................................... 46
2.
Create No. Ranges interval for Business transaction RKS RKIU........................46
3.
Create SKF............................................................................................... 46
4.
Enter SKF................................................................................................. 47
5.
Allocation method (Assessment Method):......................................................47
1.
Creation of secondary cost element..............................................................47
2.
Creation of Assessment Cycle......................................................................47
1.
5.
Enduser...................................................................................................... 50
1.
Posting of Rent & Salary in CC 1004............................................................50
2.
Execution of Assessment cycle (Month end activity)........................................50
3.
Cost Centre Report..................................................................................... 51
Allocation by Distribution.............................................................................. 52
2.
Settings...................................................................................................... 52
1.
2.
Create GL account/cost element Vehicle maintenance.....................................53
3.
Create No. Ranges interval for Business transaction RKIV..............................53
4.
Create SKF (already done)..........................................................................53
5.
Enter SKF ((already done))..........................................................................54
6.
Allocation method (Distribution):...................................................................54
1.
Creation of Distribution Cycle.......................................................................54
2.
6.
Enduser...................................................................................................... 57
4.
Posting of Rent , Salary ,Veh maintanance in CC 1011...................................57
5.
Execution of Distribution cycle (Month end)..................................................57
6.
Allocation by Periodic Reposting....................................................................59

1.
Settings...................................................................................................... 59
1.
2.
Create GLa/c & cost element Elec Charges....................................................60
3.
Create No. Ranges interval for Business transaction RKIB..............................60

3
4.
Create SKF............................................................................................... 60
5.
Allocation method (Periodic Reposting):.........................................................60
1.
Creation of Periodic Reposting cycle.............................................................60
3.
Enduser...................................................................................................... 62
7.
Posting of Rent , Elc bills , in CC 1006..........................................................62
8.
Enter SKF (Month end)............................................................................... 62
9.
Execution of Periodic reposting cycle (month end).........................................63
10.
7.
Cost Centre Report.................................................................................. 63
Indirect Activity Allocation using SKF..........................................................64
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Splitting :......................................................................................................... 64
Actual activity valuation :.................................................................................... 64
Settings for price calculation ,revaluation and cost component structure :.................64
1.
Settings...................................................................................................... 66
1.
2.
Create No. Ranges interval for Business transaction RKL , RKN, KSI0,KSII........66
3.
Create SKF............................................................................................... 66
4.
5.
Creating Activity Type Testing hours-Manual...................................................67
6.
7.
Creating Activity Type Testing hours-Automated..............................................68
8.
Creating Cost Element Group.......................................................................69
9.
Creating Activity Type Group.......................................................................70
10.
Define Splitting Structure..........................................................................70
11.
Assign Splitting Structure to Cost Centers...................................................71
12.
Define Cost Component Structure.............................................................72
13.
Change Revaluation/Price calculation/Cost comp Structure settings in Version 0

73
14.
Allocation method (Indirect Activity Allocation):.............................................74
1.
2.
Creation of Indirect Activity Allocation Cycle...................................................74

Enduser...................................................................................................... 76
1.
CC Planning.............................................................................................. 76
2.
Activity planning for TSHRA/ TSHRM............................................................76
3.
Splitting (Planned cost)............................................................................... 77
4.
Calculating Activity Price(planned) for TSHRA................................................78
Display primary cost component split :................................................................78

Select a line Goto menuComponents...........................................................78
4
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8.
5.
Report to display Cost Component Split for Activity type...................................78
6.
Enter SKF................................................................................................. 79
7.
8.
Sender activities for TSHRA.........................................................................79
9.
Indirect Activity Allocation............................................................................ 79
10.
11.
Splitting(Actual)....................................................................................... 81
12.
Price Calculation(Actual)..........................................................................82
13.
Direct Activity Allocation............................................................................... 84

1.
Settings...................................................................................................... 84
1.
2.
3.
Creating Activity Type Maintenance hours......................................................85
4.
Create No. Ranges interval for Business transaction RKL................................86
2.
9.
Enduser...................................................................................................... 86
1.
2.
3.
Set Activity price(planned) manually..............................................................86
4.
Direct Activity Allocation............................................................................... 87
5.
6.
Price Calculation........................................................................................ 88
7.
Template Allocation....................................................................................... 89
1.
Settings...................................................................................................... 89
1.
Srinivasa
10.
Define Environments and Function Trees.......................................................89

Internal Orders(I.O).................................................................................... 90
1.
Settings...................................................................................................... 91
1.
Creation of internal Order Types...................................................................91
2.
Creation of FS Group.................................................................................. 92
3.
Creation of Tel expenses A/C......................................................................92
4.
Creation of Internal order............................................................................. 93
5.
Creation of IO group................................................................................... 93
2.
End User..................................................................................................... 94
1.
Posting Telephone Expenses.......................................................................94
2.
Display IO Report....................................................................................... 94
5
3.
Planning order wise.................................................................................... 94
4.
Display Variance Reports............................................................................. 95
11.
Real IO with settlemtnt to CC.....................................................................96
12.
Schedule Manager...................................................................................... 97
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1.
Settings...................................................................................................... 97
1.
Defining Selection Variables.........................................................................97
2.
Maintain Standard Settings for workflow........................................................97
3.
Flow Definition........................................................................................... 98
4.
Specify selction variables in the program variants...........................................98
13.
Real Time Integration (New GL)................................................................100
1.
Settings :.................................................................................................. 100

1.
Create second company code ie LAC..........................................................100
2.
Assign Co-Area........................................................................................ 101
3.
Activate CoCd Validation in Co-Area...........................................................101
4.
Deactivate Reconcilition Ledger:.................................................................101
5.
Creation of Cost Center in Comapany code LAC:..........................................102
6.
Activate intercompany postings in doc type SA...........................................102
7.
Creation of GL accounts in LAP:.................................................................103
8.
Creation of GL accounts in LAC:.................................................................103
9.
Define Variants for Real time Integration:.....................................................104
10.
Assign Varaints for Real-Time Integration to Company Codes:.....................104
11.
Define Intercompany Clearing Accounts:...................................................104
12.
Define Account determination for Real-Time Integration:.............................106
2.
Enduser.................................................................................................... 107
1.
Posting expenses to common CC (1004).....................................................107
2.
Reposing of Costs:................................................................................... 107
3.
Displaying CO document:..........................................................................107
14.
Sales/Purchase Tax................................................................................... 109
3.
Settings.................................................................................................... 109
1.
Define Tax procedure:............................................................................... 109
2.
Assign Country to Calculation procedure :...................................................109
3.
Define Tax Codes for Sales and Purchases..................................................110
4.
Creation of 2 GL accounts.........................................................................111
5.
Change GL accounts Sales, Inventory RM...................................................112
6.
Define Tax acounts................................................................................... 112
7.
Define Tax Determination Rules..................................................................113

6
8.
4.
7.
Enduser.................................................................................................... 114
1.
Posting Pur Inv........................................................................................ 114
2.
Posting Sales Inv:..................................................................................... 114
MM Integration............................................................................................ 116
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1.
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Define Tax Relevancy Of Master Records....................................................113
MM configuration...................................................................................... 116
1.
Maintain Calendar:................................................................................... 116
2.
Define plant:............................................................................................ 117
3.
Define Division:........................................................................................ 118
4.
Maintain Storage Location:........................................................................118
5.
Maintain purchasing organisation:...............................................................119
6.
Assign plant to company code:...................................................................119
7.
Assign Business Area to Plant/Valuation Area and Division:............................120
8.
Assign Purchasing organization to company code:........................................120
9.
Assign purchase organisation to plant:........................................................120
10.
Create Purchasing Groups:.....................................................................121
11.
Define Material Group:...........................................................................121
12.
Maintain Company Code for Material Management:...................................121
13.
Define Attributes of Material Types:..........................................................121
14.
Set Tolerance Limits for Price variance ( purchasing order):.........................123
15.
Plant Parameters.................................................................................. 124
16.
Define Number Assignment for Material and Phys. Inv .Docs.......................124
17.
Set Tolerance Group (for GR):.................................................................125
18.
Maintain Default Values for Tax codes:.....................................................125
19.
Set Tolerance Limits (for invoice verification):............................................126
20.
Define Automatic status change:..............................................................126
21.
Group together Valuation areas:..............................................................126
22.
Define Valuation Classes:.......................................................................126
2.
FI Consultants Job.................................................................................... 127

1.
Changing GL account Inventory RM............................................................127
2.
Creating GL accounts............................................................................... 127
3.
Assignment of Accounts:...........................................................................130
4.
Creating No. ranges for Document types WE WA RE..................................132
3.
MM End User............................................................................................ 132

1.
Creation of RM master.............................................................................. 133
2.
Creation of Vendor Masters.......................................................................134

7
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8.
3.
Creation of Vendor Masters.......................................................................134
4.
Open Period for Current month...................................................................135
5.
Purchase Order Creation:..........................................................................135
6.
Goods Receipt......................................................................................... 136
7.
Displaying Material document.....................................................................136
8.
Invoice Verification for goods......................................................................137
9.
Inv Verification for Freight..........................................................................137
10.
RM Consumption.................................................................................. 138
11.
Display Stock Ledger............................................................................. 139
12.
Display Stock for posting date.................................................................139
SD Integration............................................................................................. 140
1.
SD consultant job..................................................................................... 140

1.
Define Sales Organisation:........................................................................140
2.
Define Distribution Channel:......................................................................140
3.
Define shipping points:.............................................................................. 141
4.
Assign Sales Organisation to Company code:..............................................141
5.
Assign Distribution channel to sales organisation:.........................................141
6.
Assign division to Sales Organization:.........................................................142
7.
Set up sales area:.................................................................................... 142
8.
Assign sales organisation- distribution channel - Plant:..................................142
9.
Define Rules by Sales area:.......................................................................143
10.
Assign Business Area to Plant And Division...............................................143
11.
Assign Shipping Point to Plant:................................................................143
12.
Assign Shipping Points:..........................................................................144
13.
Maintain Pricing Procedure:....................................................................144
14.
Define Pricing Procedure Determination:..................................................144
15.
Define Tax Determination Rules:.............................................................145
16.
Set up Partner Determination:.................................................................145
17.
Changing Schedule Line Category...........................................................146
2.
FI Consultants job..................................................................................... 146

1.
Changing GL account............................................................................... 146
2.
Assignment of Accounts for Automatic Posting:.............................................147
3.
SD End User............................................................................................. 147

1.
Creation of Customer................................................................................ 147

8
2.
Creation of Material FG............................................................................. 148
3.
Creation of Condition records.....................................................................149
4.
Creation of Sales order............................................................................. 150
5.
Production Receipts.................................................................................. 151
6.
Delivery.................................................................................................. 151
7.
Sales billing............................................................................................. 152
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Error: Account 400491 requires an assignment to a CO object..............................153
9.
8.
Creating Cr Memo request.........................................................................153
9.
Posting Cr Memo..................................................................................... 154
10.
Sales Return Order (RE)........................................................................154
11.
Return Delivery (VL02n)........................................................................155
12.
CR Memo with reference to Returns order...............................................155
Profitability Analysis.................................................................................... 156

1.
Settings.................................................................................................... 156
1.
Maintain Operating Concern......................................................................156
2.
Displaying Characteristic list......................................................................158
3.
Define Profitability Segment Characteristics(Segment-Lvl Characteristics).......158
4.
Assign Co-Area to Operating Concern.........................................................159
5.
Define No ranges for Actual Postings..........................................................159
6.
Activate Tranfer of Incoming Sales Orders...................................................160
7.
Maintain Assignment of SD Conditions to CO-PA Value Fields........................160
8.
Assign Quantity Fields.............................................................................. 161
9.
Create Revenue element for GL account Sales..........................................161
10.
Create Cost element for GL account Discount given.................................161
11.
Creating GL account Advertising..............................................................161
12.
Create Secondary Cost Element(Settlement)............................................162
13.
Maintain allocation Structure :.................................................................162
14.
Maintain PA Tranfer Structure..................................................................163
15.
Maintain Settlement Profile.....................................................................164
16.
Maintain Number Ranges for Settlement Documents..................................164
17.
Creation of internal Order Types..............................................................165
18.
Activate Profitability Analysis...................................................................165
19.
Create IO Adv Event.............................................................................. 165
20.
Create No. Range intervals for Bus Transactions KOAO.............................166
21.
Maintain PA Transfer Structure for Direct posting.......................................166
22.
Transfer of old SD data to PA.................................................................167

9
2.
SD End User............................................................................................. 168

1.
Creating Sales order................................................................................. 168
2.
Delivery of goods to customer....................................................................168
3.
Billing document....................................................................................... 168
4.
Display Billing document............................................................................168
3.
FI Enduser................................................................................................ 169
1.
Posting transaction in FI............................................................................ 169
2.
Posting Advertising expenses in IO.............................................................169
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4.
CO End User............................................................................................. 170

1.
Set Operating Concern.............................................................................. 170
2.
Executing the Profitability Report...............................................................170
3.
IO Settlement........................................................................................... 170
4.
Display COPA Line items:..........................................................................171
5.
Checking the flow of Billing Documents.......................................................171
6.
Displaying COPA tables(Costing Based)......................................................171
10.
5.
COPA-Valuation Overview........................................................................172
1.
Valuation using Conditions.........................................................................172
2.
Valuation using Mat. Cost Estimates...........................................................173
CO-PA Valuation-1....................................................................................... 175

1.
Settings.................................................................................................... 175
1.
Create Condition Types and Costing Sheets.................................................175
2.
Define and Assign Valuation Strategy:.........................................................175
3.
Assign Value Fields.................................................................................. 176
4.
Valuation Analysis.................................................................................... 176
2.
Enduser :.................................................................................................. 177

1.
Maintain condition record:..........................................................................177
2.
Creating Sales order................................................................................. 177
3.
Delivery of goods to customer....................................................................177
4.
Billing document....................................................................................... 178
5.
Display Billing document............................................................................178
6.
Valuation Simulation................................................................................. 178
6.
Characteristic Derivation............................................................................. 180
7.
CO-PA Manual Line Item Entry.....................................................................181
8.
Top-Down Distribution of Actual Data..........................................................182

1.
Settings.................................................................................................... 182
1.
Maintain Characteristic Groups...................................................................182

10
2.
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2.
9.
Assign Characteristic Groups for Assignment Screen.....................................183

Enduser.................................................................................................... 183
1.
Creation of Material FG(LAPFG9)...............................................................183
2.
Create Condition Record...........................................................................184
3.
Sales Order............................................................................................. 184
4.
GRfrom Production................................................................................... 185
5.
Delivery.................................................................................................. 185
6.
Billing..................................................................................................... 185
7.
Posting Freight charges in FI......................................................................185
8.
Display Actual line items............................................................................ 186
9.
Top-Down Distribution............................................................................... 186
10.
Display Actual Line items........................................................................188
11.
History................................................................................................. 189
Profit Centre Accounting.............................................................................. 190

1.
Set controlling area:.................................................................................. 190
2.
Maintain Controlling Area Settings:..............................................................190
3.
Create Dummy profit centre:......................................................................190
4.
Set Control Parameter for Actual Data:........................................................191
5.
Maintain Plan Versions.............................................................................. 191
6.
Define Number Ranges for Local Documents:..............................................191
7.
Creating Profit Centres............................................................................. 192
8.
Assign Profit Center in CostCenter :...........................................................193
Error : Changing profit center from to xxxx is not permitted...................................193

Create Sales Account As Revenue Element:................................................193
9.
10.
1.
10.
Maintain Automatic Account Assignment Revenue element:........................193
End User................................................................................................... 194

1.
Posting of Salaries.................................................................................... 194
2.
Posting Sales Invoice................................................................................ 194
3.
Transfer of values from one ProfitCenter To another ProfitCenter:....................195
4.
Display Profit Centre Report:......................................................................195

Product Cost Planning.............................................................................. 197
Moving Average Price/Standard price................................................................197

Costing Sequence.......................................................................................... 197
Automatic vs Unit Cost Estimate.......................................................................197
Cost Component Split..................................................................................... 198
11
1.
Reference and Simualtion Costing............................................................199
1.
CO Settings.............................................................................................. 200
1.
Creating Secondary Cost Elements.............................................................200
2.
Creating Activity Types Machine Hour/ Packing/ Asssembling/ Processing........201
2.
MM Enduser.............................................................................................. 203
1.
Creating Material master LAPRM1 in plant LAP1.........................................203
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Error : Tables TCURM and T001W inconsistent..................................................203

2.
Creating Material master LAPRM2 in plant LAP2.........................................204
3.
Creating Material master LAPPM1 in plant LAP1..........................................205
4.
Creating Purchase Info Record for External activity PCKG.............................205
1.
CO Enduser.............................................................................................. 206
1.
Create Cost Element Group.......................................................................206
2.
Create Activity type Group.........................................................................207
3.
CC Planning for CC 1001..........................................................................207
4.
Activity planning for MCH..........................................................................208
5.
6.
Activity planning for PRCS.........................................................................209
7.
8.
Activity planning for ASMB.........................................................................210
9.
Calculating planned Activity Price...............................................................210
10.
5.
Creating a Base Planning Object LAPSFG1_BPO in plant LAP1....................211
6.
Create single level unit cost estimate for LAPSFG1_BPO...............................212
7.
Creating a Base Planning Object LAPSFG2_BPO in plant LAP2....................212
8.
Create single level unit cost estimate for LAPSFG2_BPO...............................213
9.
Create multilevel unit cost estimate.............................................................213
10.
Srinivasa
Activity planning for PCKG......................................................................211
Exploding a material cost estimate/Base Planning Object............................216
2.
Creating a cost estimate w/o quantity structure......................................216
1.
CO Settings.............................................................................................. 216
1.
Creating Cost Center (Allocation)...............................................................216
2.
Define OH keys........................................................................................ 217
3.
Define OH Groups.................................................................................... 217
4.
Define Calculation Bases...........................................................................217
5.
Define Percentage OH Rates.....................................................................218
6.
Define Credits.......................................................................................... 219
7.
Define Costing Sheet............................................................................... 219

12
8.
Define Costing Variant............................................................................... 220
9.
Define Cost Component Structure...............................................................221
10.
2.
MM Enduser.............................................................................................. 224
1.
Creating Material master LAPFG1..............................................................224
2.
Creating Material master LAPSFG1...........................................................225
3.
Creating Material master LAPSFG2 in plant LAP1........................................226
4.
Creating Material master LAPSFG2 in plant LAP2........................................227
5.
Creating Purchase Info Record LAPRM1 / two vendors..................................227
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3.
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Check/Change price calculation settings in Version....................................223
CO Enduser.............................................................................................. 229
1.
Cost Estimate W/O Quantity Structure(Single level) for LAPSFG1...................229
2.
Price update :.......................................................................................... 230
3.
Multilevel Cost Estimate for LAPFG1...........................................................230
3.
Creating a cost estimate with quantity structure.....................................233
1.
FI Settings................................................................................................ 235
1.
Create GL Account Gain/Loss from Revaluation :..........................................235
2.
Automatic account assignment for transaction UMB......................................235
2.
PP settings................................................................................................ 235
1.
Define MRP Controller.............................................................................. 235
2.
Define Floats(Scheduling Margin Key).........................................................235
3.
Define Production Scheduler......................................................................235
4.
Determine Person Responsible for WorkCenter............................................236
5.
Define parameters.................................................................................... 236
6.
Define Standard value key.........................................................................237
7.
Check Formulas for Costing.......................................................................237
3.
PP Enduser............................................................................................... 238
1.
Creating BOM for LAPSFG1......................................................................238
2.
Creating BOM for LAPSFG2 in plant LAP2..................................................239
3.
Creating BOM for LAPFG1........................................................................239
4.
Material BOM Browser.............................................................................. 240
5.
Creating Work Center............................................................................... 240
6.
7.
8.
Creating Routing for LAPSFG1...................................................................242
9.
Creating Routing for LAPSFG2...................................................................242
10.
Creating Routing for LAPFG1..................................................................243

13
4.
CO settings............................................................................................... 244
1.
Creating Tranfer Control............................................................................ 244
2.
Assigning Transfer Control in Costing variant...............................................245
3.
Creating Special Procurement Types...........................................................245
4.
Update Additive Costs............................................................................... 245
5.
Check Settings (for Costing Variant)............................................................246

MM Enduser.............................................................................................. 247
1.
Enter Spl Proc type in Mat master LAPSFG2 in plant LAP1............................247
2.
Enter Spl Proc type in Mat master LAPSFG1 in plant LAP1............................248
3.
Maintain OH key in Material master.............................................................248
6.
CO Enduser.............................................................................................. 249
1.
Creating Procurement alternatives..............................................................249
2.
Creating /Changing Mixing Ratios...............................................................250
3.
Creating Unit cost estimate for Additive Costs...............................................251
4.
Creating Cost Estimate for plant LAP1 and LAP2.........................................252
1.
Costing Run............................................................................................ 252
Msg :No structure could be determined for internal activity ASMB (1002)................253
Delete Costing Run :....................................................................................... 255
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5.
14
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.
16
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Controlling
CO
FI
Srinivasa
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CO is for internal Reporting FI is for Internal & external Reporting
17
1. CO -Basic Settings
Organizational Structure :
Controlling
FI Accounting
CoCd1
CO Area1
CoCd2
Operating Concern
(CO-PA)
CoCd3
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CO Area2
CoCd4
Plant1
Plant2
Plant3
Plant4
Plant5
Plant6
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
Co Area1
Co Area2
Company Code
CoCd 1
CoCd 2
CoCd 3
CoCd4
We are going to follow scenario 2 .

SPROControllingGeneral Controlling OrganisationMaintain Controlling Area
Double click on Maintain Controlling Area
New Entries
18
Controlling Area :
Name
Co Area for LAP
Co Cd CO Area
Currency Type
10
Currency
Kasireddy +91-9959765211
Chart of Accts
Srinivasa
LAP
Cross-company-code cost accounting
:
:
INR
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
19
Save
Continue
Double click on Activate components/control indicators folder
Fiscal Year
: 2012
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Cost Centres
: Component Active
Srinivasa
New Entries
Save
AA: Activity type

OrderManagement : Component Active
Profit Centre Acctg
Enter to ignore the warning message
3. Cost Centre Standard Hierarchy

Up to Controlling Same path
Cost Centre AccountingMaster Data Cost CentresDefine standard Hierarchy
Controlling Area :
LAP
Enter
Group Name
: STD_HIER
Description
Standard hierarchy for LAP

20
Save
Info : Std hierarchy is top node in the cost centre hierarchy .
Kasireddy +91-9959765211
Std hierarchy represents all cost centres in the Co Area
4. Maintain Versions
SPROControllingGeneral Controlling OrganisationMaintain Versions
Select version 0 ie Plan/Actual version
Double click on Settings for Each Fiscal Year folder
``
Controlling Area :
Version
Enter
New entries
Fiscal Year :
2012
Exchange Rate Type
Srinivasa
LAP
Save
Continue
21
2. Cost Centre Accounting

Cost Centre
Profit Centre
Cost Centre Accounting(CCA) is used to

record costs at org units called Cost
centres.
Profit Centre Accounting(PCA) is used to record

costs and revenues at org units called Profit
centres.
Eg:Cost centre can be a department
Eg: Profit centre can be a plant.

Profit centre is an internal org. unit at which
you can analyze profitability independently.
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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
1000
(Mumbai plant)
2000
(Hyd Plant)
Cost centre
1001 (Body shop)
1002 (Assembling)
1003 (Paint shop)
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
Primary cost elements
Secondary cost elements

22
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 )
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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
PC wise Total
180000
99000
300510 (Sales)
207000
135000
PC wise
Profitability
27000
36000
27000
279000
342000
63000
1. Settings
1. Maintain Number Ranges for Controlling Document
SPROControllingGeneral Controlling OrganisationMaintain 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
Non-Assigned Elements
Click on COIN
Element/Group button
23
Double click on No. ranges for CO documents (LAP)

(Repeat the same procedure for , RKP1, RKU1, RKU3)
Save
Continue
Info:
FI
CO
Doument types
Business transactions
Eg: SA, KR, KZ Eg: COIN , RKU1 , RKU3

Eg: Bus.transaction COIN arises when a CO object like Cost centre is entered in FI
Srinivasa
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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 buttonEdit cost element button
Valid From :
1-4-2011
to
31-12-9999
Enter
CElem category :
1 (Primary cost/cost-reducing revenue)
Save
Note down the 2nd Expenses GL account
400409
Travelling Expenses
b. Co. Area:
24
SAP Easy AccessAccountingControllingCost element AccountingMaster

DataCost Element Individual processingCreate Primary
Tcode : KA01
Cost Element
400509 (2nd exp a/c)
Enter
CElem category :
Save
c. Automatic Creation:
SPROControllingCost Element AccountingMaster DataCost elementsAutomatic
Srinivasa
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Creation of Primary and Secondary Cost ElementsMake Default settings

Chart of Accounts
LACA
Enter
NewEntries
Acct from
Account to
CECt
400403 (3rd Exp A/C)
400490
400491
400491
12
400492
499999
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
Back button twice
Execute Batch Input session
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
25
Exit batch input session button

3. Display Cost Elements
Tcode :KA23
SAP Easy AccessAccountingControllingCost element AccountingMaster
DataCost elementCollective ProcessingDisplay
All Cost Elements
Execute
4. Creation of FSG (Cost Centre required)
Tcode : OBC4
Kasireddy +91-9959765211
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 AccessAccountingFinancial AccountingGeneral LedgerMaster
Srinivasa
RecordsGL AccountsCollective ProcessingCompany Code Data

TCode:OB_GLACC12
Company Code :
LAP
G/L Account
400000
To
499999
Execute
Replace Field status group with G002 for all GL accounts
26
Srinivasa
Kasireddy +91-9959765211
Save
6. Creation of Cost Centre

SAP Easy AccessAccountingControllingCost Center AccountingMaster DataCost
CenterIndividual ProcessingCreate
Tcode: KS01
Extras menuSet Controlling Area
Controlling Area :
LAP
Enter
Cost center:
1001
Valid From :
1.4.2011 to
31.12.9999
Enter
Name
Body shop
Description
Body shop
Person Responsible
Cost Center Category :
Mr. T
1
Hierarchy Area
STD_HIER
Business Area
LANZ
Currency
INR
Save
Enter to ignore the warning msg
Cost Center
1002
1001
Reference
Cost Center
Controlling Area :
LAP
27
Enter
Replace the Name & Description with Assembling
Person responsible
Mr. T
Save
Cost Center
1003
Reference
Cost center:
1001
Controlling Area :
LAP
Srinivasa
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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
Controlling Area :
LAP
Enter
Replace the Name with Processing
Replace the Description with Processing
Person Responsible
MR. T
Save
7. Creation CC Groups
Tcode : KSH1
Up to Master Data same path
CostCenter Group Create
Cost Center Group
PROD
Enter
Description :
Production cost
Insert Cost Center button

28
Srinivasa
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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 GroupCreate
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
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
29
Posting Key
40
Account
400500 (Salaries)
400600(Rent)
Enter
Amount
Cost Center
Text
Salaries Payment
Posting Key
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27000
1001
40
Account
Enter
Amount
18000
Cost Center
Text
Rent Payment
Posting Key
1001
50
Account
200691(Cash)
Srinivasa
Enter
Amount
Bus area
LANZ
Text
Expenses Payment
DocumentSimulatePost
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
30
Srinivasa
Kasireddy +91-9959765211
Information SystemReports for CostCenter AccountingLine itemsCost Center: Actual

Line Items
Cost Center Group
PROD
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
Left arrow button
Select Ref Document Number under Column Name
Left arrow button
Enter
31
Make a note of Business Transaction , Doc no, Ref doc no.
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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 postingsRepost Line ItemsEnter
Document Number
Company Code :
LAP
Fiscal year
2011
1000000024
Execute
Value Tran curr
Acct Assgt 1
11000
1003
7000
1003
32
Enter
Post
5. Display Cost Center Report

Tcode: KSB1
Controlling Area :
LAP
Enter
Cost Center Group
PROD
Execute
Srinivasa
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(Screen is updated as shown in the following image)
6. Creating Common Cost center

33
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
Srinivasa
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Save
7. Posting to Common Cost center

Tcode F-02
1.Post one document for Salary
Amount
Cost Centre
36000
:
2000
2. Post one document for Rent

Amount
Cost Centre
9000
:
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 menuSet Controlling area
Controlling Area :
LAP
Enter
34
Kasireddy +91-9959765211
Srinivasa
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

Tcode: KSB1
CostCenter Group
PROD
Execute
Back button
Cost centre
2000
Multiple Entries button

Single value
1001
1002
1003
2000
Copy button
Execute
35
Srinivasa
Kasireddy +91-9959765211
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: AccountingControllingCostcenterAccountingEnvironmentPeriodlockChange
Controlling area :
LAP
Fiscal Year
2011
Actual button
Locking transaction for all period:
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
PlanningCost and Activity InputsChange
Version
From period
To period
12
Fiscal Year
2011
Cost centre
1001
Cost element
400500
36
Srinivasa
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Form-Based
Overview screen button
Costelement
Plan fixed cost
Distribution key
400500
240000
1 (Equal distribution)
Select the cost element 400500

Period screen button
(Next image shows period wise planned costs)
37
Kasireddy +91-9959765211
Srinivasa
Post
12. Display Variance report

Tcode : S_ALR_87013611
Path: up to CostCenter Accounting Same path
Information systemReports for CostCenter AccountingPlan/Actual Comparisons Cost
Centers:Actual/Plan/ Variance
Controlling Area :
Fiscal Year :
2011
From Period
To Period :
Plan Version
Cost Center Group

Or Values :
LAP
5
(Current period)
0
:
PROD
400500
Execute
38
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.
Srinivasa
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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
Used if sender is
just a cost collector
cost center
Eg : Cafetaria
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
39
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 :
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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)
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
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%
40
As recorded
1002
30%
As recorded
1003
20%
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
Srinivasa
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Stationery charges , vehicle maintanance , travelling expenses are to be allocated based on

percentage basis.
Sender
CostCenter
1011(Plant Admin)
Reciving cost
Center
Salaries
Stat chrges
Vhcle maint
TrExp
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

1001
1009(Qulatity control) 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
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.
41
Sender Cost Center
Reciving cost Center

1001
1008(Plant maintanance) 1002
Srinivasa
Kasireddy +91-9959765211
1003
42
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
Srinivasa
Kasireddy +91-9959765211
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)
45000.00
400600(Rent)
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
1004(Cafetaria) -18000.00
-6000.00
Sec.Cost element
Reciving cost
Center
Allocated
amount
10000000(Cafetari
a charges)
1001
18000.00
1002
6000.00
1003
48000.00
-48000.00
-72000.00
72000.00
Summary of the above transactions:

Sender
CostCenter
Posted/Allocated
amounts
Prim/Sec Cost
element
45000.00
400500 (Salaries)
27000.00
400600(Rent)
1004
-18000.00
(Cafetaria)
-6000.00
-48000.00
Balance
10000000(Cafetaria
charges)
0.00
43
Reciving
cost Center
Allocated
amount
1001
18000.00
1002
6000.00
1003
48000.00
Total
allocation
72000.00
1. Settings
1. Create Cost Centre
Tcode : KS01
Controlling Area :
LAP
Srinivasa
Kasireddy +91-9959765211
Enter
Cost Centre
1004
Valid From :
1.4.2012
Enter
Name
Descritpion :
Cafetaria
Person responsible
Cafetaria
:
MR. k

Hierarchy area
Business Area
Currency
9 (Allocation cost ctr)
STD_HIER
:
LANZ
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
Tcode : KK01
SAP Easy AccessAccountingControllingCost Center AccountingMasterData
44
Statistical Key FiguresIndividual ProcessingCreate (KK01)

Stat. key figure
EMP
Employee
Enter
Name
Stat. key fig. UnM.
EA
(Each)
(Unm = Units of Measure)
Fxd val
Save
4. Enter SKF
Srinivasa
Kasireddy +91-9959765211
Tcode : KB31N
Up to Cost Center Accounting same path
Actual PostingsStatistical Key FiguresEnter
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 AccessAccountingControllingCost Element AccountingMaster Data
Cost ElementIndividual ProcessingCreate Secondary
Cost Element
10000000
Valid From :
1.4.2012
Enter
Name
Description :
Cafetaria charges
CElem category :
Cafetaria charges
42 (Assessment)
Save
2. Creation of Assessment Cycle
45
Scenario: Cafetaria charges are to be shared between 3 cost centers based on number of
employees
Option 1:
Option 2:
Option3:
Assesment cycle 1 for Salaries

and Rent
Assesment cycle 1 for

Salaries and Rent
Assesment cycle 1 for

Salaries
Segment 1 for Salaries
Segment 1 for
Segment 2 for Rent
Salaries& Rent
Assesment cycle 2 for Rent

Segment 1 for Rent
We are using option 1 for the following configuration scenario
Srinivasa
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SPROControllingCost Center AccountingActual PostingsPeriod-End Closing

AssessmentMaintain Assessment
Double click on Create Actual Assessment
Cycle
Start Date :
LAP1
1.4.2012
Enter
Text :
Assesment of Cafertia Charges
Indicators
Iterative
Attach segment button

Segment Name :
SAL
Description
Salary Assessment
Assessment
CEle :
Sender Rule
1000000000
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
Cost Element
1004
400500
Receiver
Cost centre
46
PROD
Kasireddy +91-9959765211
Srinivasa
Receiver Tracing Factor tab:

From
Stat. key fig.
EMP

Segment Name :
RENT
Description
Rent Assessment
Assessment CEle
Sender Rule
1 posted amounts
Share in %
100
Receiver rule
Variable portions
1000000000
Sender/Receivers tab
From
To
Group
Sender
Cost Centre
1004
47
Cost Element
400600
Receiver
Srinivasa
Kasireddy +91-9959765211
Cost centre
PROD

From
Stat. key fig.
EMP
Save
Continue
1. Enduser
1. Posting of Rent & Salary in CC 1004

Tcode : F-02
40
Salary
40
Rent
50
Cash
*
2. Execution of Assessment cycle (Month end activity)
T code : KSU5
48
Period-End ClosingSingle FunctionsAllocationsAssessment

Period
Fiscal
Year :
Test Run
Details Lists
To
2012
Cycle
LAP1
Enter
Execute
Srinivasa
Kasireddy +91-9959765211
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
Costelement
1003
1000000000Multiple selection button
Select Single values tab

Single values
1000000000
400500
400600
Copy button
Execute
49
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.
Srinivasa
Kasireddy +91-9959765211
Sender CostCenter Reciving cost

Center
1011(Plant Admin)
Salaries
Rent
Vhcle maint
1001
75
25%
30%
1002
25
50%
60%
1003
200
25%
10%
Costs recorded in cost center Plant admin by FI postings :

Cost Center
1011(Plant Admin)
Primary Cost elements
Costs incured
400500 (Salaries)
72000.00
400600(Rent)
18000.00
Vehicle maintenance
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)
2. Settings
50
Tcode : KS01
Controlling Area :
LAP
Enter
Cost Centre
1011
Valid From :
1.4.2012
Enter
Name
Descritpion :
Plant Admin
Srinivasa
Kasireddy +91-9959765211
Person responsible
Plant Admin
:
MR. k

Hierarchy area
Business Area
Currency
C: Administration
STD_HIER
:
LANZ
INR
Save
2. Create GL account/cost element Vehicle maintenance

G/L account 400203
3. Create No. Ranges interval for Business transaction RKIV
Tcode : KANK
CO Area
LAP

Double click on Business Transactions RKIV (Actual Overhead Distribution)
Save
Continue
4. Create SKF (already done)
Tcode : KK01
Stat. key figure
EMP
Enter
51
Name
Stat. key fig. UnM.
Employee
:
EA
(Each)
Fxd val
Save
5. Enter SKF ((already done))
Tcode : KB31N
Srinivasa
Kasireddy +91-9959765211

Rec. CCtr
StatKF
Total Quantity
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:
Option 2:
Option3:
Cycle 1 for Salaries and Rent
Cycle 1 for Salaries and

Rent
Cycle 1 for Salaries
Segment 1 for
Segment 2 for Rent
Salaries, Rent
Segment 3 for Vehicle

maintenance
& Vehicle maintenance

Assesment cycle 2 for Rent
Segment 1 for Rent
Assesment cycle 3 for Vehicle
maintenance
Segment 1 for Vehicle
maintenance
We are using option 1 for the following configuration scenario

DistributionDefine Distribution
Double click on Create Actual Distribution
52
Cycle
Start Date :
LAP2
1.4.2012
Enter
Text :
Plant admin costs distribution
Indicators
Iterative

Segment Name :
SAL
Description
Salary Distrbution
1 posted amounts
Share in %
:
100
Actual value origin
Receiver rule
:
Variable portions
From
To
Group
Sender
Cost Centre
Cost Element
1011
400500
Receiver
Cost centre
Srinivasa
Kasireddy +91-9959765211
Sender Rule

From
53
PROD
Srinivasa
Kasireddy +91-9959765211
Stat. key fig.
EMP

Segment Name :
RENT
Description
Rent Distribution
Sender Rule
1 posted amounts
Share in %
100
Receiver rule
Fixed percentages
From
To
Group
Sender
Cost Centre
Cost Element
1011
400600
Receiver
Cost centre

Cost Ctr
Portion/percent
1001
25%
1002
50%
1003
25%

Segment Name :
Veh
Description
Vehcile maintance distribution
Sender Rule
1 posted amounts
Share in %
100
Receiver rule
Fixed percentages
54
PROD
From
To
Group
Sender
Cost Centre
Cost Element
1011
400203
Receiver
Cost centre
PROD
Srinivasa
Kasireddy +91-9959765211

Cost Ctr
Portion/percent
1001
30%
1002
60%
1003
10%
Save
Continue
2. Enduser
4. Posting of Rent , Salary ,Veh maintanance in CC 1011

Tcode : F-02
40
Salary
45000
40
Rent
40
Vehcile maintance
50
Cash
27000
18000
*
5. Execution of Distribution cycle (Month end)
T code : KSV5
Period-End ClosingSingle FunctionsAllocationsDistribution
Period
Fiscal
Year :
Test Run
Details Lists
To
2012
Cycle
LAP2
55
Enter
Execute
Back button
Test Run
Execute
Tcode : KSB1
CostCenter :
1011
Costelement
400500, 400600,400203
Execute
Back button
CostCenter :
1001 To
Costelement
1003
400500, 400600,400xxx

Single values
400xxx
400500
400600
Copy button
Execute
Srinivasa
Kasireddy +91-9959765211
56
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
Srinivasa
Kasireddy +91-9959765211
1006(Cost collector)
1001
50%
As recorded
1002
30%
As recorded
1003
20%
As recorded
1. Settings
Tcode : KS01
Controlling Area :
LAP
Enter
Cost Centre
1006
Valid From :
1.4.2012
Enter
Name
Descritpion :
Cost collector
Person responsible
Cost collector
:

Hierarchy area
Business Area
Currency
9 Allocation
STD_HIER
:
MR. k
LANZ
INR
Save
57
2. Create GLa/c & cost element Elec Charges

G/L account : 400392
3. Create No. Ranges interval for Business transaction RKIB
Tcode : KANK
CO Area
LAP

Double click on Business Transactions RKIB (Actual Periodic Repostings)
Kasireddy +91-9959765211
Save
Continue
4. Create SKF
Tcode : KK01
Stat. key figure
EU
Electrical Units
Enter
Name
Stat. key fig. UnM.
KWH
Tot val
Save
Srinivasa
5. Allocation method (Periodic Reposting):
1. Creation of Periodic Reposting cycle

Periodic RepostingDefine Periodic Reposting
Double click on Create Actual Periodic Reposting
TCode : KSW1
Cycle
Start Date :
LAP3
1.4.2012
58
Enter
Text :
Prim costs reposting
Indicators
Iterative

Segment Name :
ELEC
Description
Elcricity bills reposting
Sender Rule
1 posted amounts
Srinivasa
Kasireddy +91-9959765211
Share in %
:
100
Actual value origin
Receiver rule
:
Variable portions
From
To
Group
Sender
Cost Centre
Cost Element
1006
400392
Receiver
Cost centre

From
Stat. key fig.
EU

Segment Name :
RENT
Description
Rent reposting
59
PROD
Sender Rule
1 posted amounts
Share in %
100
Receiver rule
Fixed percentages
From
To
Group
Sender
Cost Centre
Cost Element
1006
400600
Receiver
Srinivasa
Kasireddy +91-9959765211
Cost centre
PROD

Cost Ctr
Portion/percent
1001
50%
1002
20%
1003
30%
Save
3. Enduser
7. Posting of Rent , Elc bills , in CC 1006

Tcode : F-02
40
Elc bills
45000
40
Rent
27000
50
Cash
*
8. Enter SKF (Month end)
Tcode : KB31N
Rec. CCtr
StatKF
Total Quantity
1001
EU
750
1002
EU
250
1003
EU
2000
Save
60
9. Execution of Periodic reposting cycle (month end)

T code : KSW5
Period-End ClosingSingle FunctionsPeriodic Reposting
Period
Fiscal
Year :
Test Run
Details Lists
To
2012
Cycle
Srinivasa
Kasireddy +91-9959765211
LAP3
Enter
Execute
Back button
Test Run
Execute

Tcode : KSB1
CostCenter :
1006
Execute
Back button
CostCenter :
1001 To
Costelement
1003
400600Multiple selection button

Single values
400600
400392
Copy button
Execute
61
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.
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.
Srinivasa
Kasireddy +91-9959765211
Splitting :
62
Kasireddy +91-9959765211
Srinivasa
Sender CostCenter
Reciving cost Center Tested items

1001
300
1009(Qulatity control) 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)
45000.00
400600(Rent)
27000.00
Total charges
72000.00
63
1. Settings
Tcode : KS01
Controlling Area :
LAP
Enter
Cost Centre
1009
Valid From :
1.4.2012
Srinivasa
Kasireddy +91-9959765211
Enter
Name
Descritpion :
Quality control
Person responsible
Quality control
:
MR. k

Hierarchy area
Business Area
Currency
N (Quality Assurance)
STD_HIER
:
LANZ
INR
Save
2. Create No. Ranges interval for Business transaction 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
Stat. key figure
ITEM
Enter
64
Name
Stat. key fig. UnM.
Testing items
:
EA
(Each)
Tot Values
Save
Tcode :KA06
Srinivasa
Kasireddy +91-9959765211

Cost Element
1000000026
Valid From :
1.4.2012
Enter
Name
Description :
Testing charges Manual
CElem category :
Testing chrges-Manual
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
CCtr categories :
H
*
(All Cost Centre Categories)
Allocation of default values

ATyp Category
Allocation Cost Element
Price indicator
1000000026
Variation Values for Actual Alloccation

Actl Acty Type Cat.
: Blank
Act. price indicator
As in planning
Actual price, automatically based on activity
Save
65
Tcode :KA06
Cost Element
1000000027
Valid From :
1.4.2012
Enter
Name
Description :
Testing charges- Automated
CElem category :
Testing charges-Automated
Srinivasa
Kasireddy +91-9959765211
Save
7. Creating Activity Type Testing hours-Automated

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
CCtr categories :
ATyp Category

(Manual Entry & Indirect Allocation)
Price indicator
Actl Acty Type Cat.
: Blank
1000000027
Plan price, automatically based on activity
As in planning
Save
8. Creating Cost Element Group
TCode :KAH1
CO Area
LAP
Cost element group
OH_COST
Enter
Description :
OH Cost
66
Cost Element button

400500
400600
Save
9. Creating Activity Type Group

TCode :KLH1
CO Area
LAP
Activity Type group
TEST
Srinivasa
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Enter
Description :
Testing
Activity Type button

TSHRA
TSHRM
Save
10. Define Splitting Structure

TCode : OKES
Activity Allocation SplittingDefine Splitting Structure
Double click on Splitting rules folder
New Entries
Rule
Text
Meth Wt
LAP1
21
Enter
Select rule LAP1
Double click on Selection for rules folder
New Entries
Field Label From Value

Version
(Co area LAP/ version 0)
67
Double click on Splitting Structures folder

New Entries
Structure Text
L1
LAP Splitting Structure
Enter
Select structure L1
Double click on Assignments folder
Srinivasa
Kasireddy +91-9959765211
New Entries
Assignment
Text
LA1
Rule
Text
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
11. Assign Splitting Structure to Cost Centers

Same Path
Cost centre
All versions
Fiscal Year
1009
201x
Change button
1009
Click on L1 under splitting Structures
68
Assign button(
Save
Continue
Category 3 Direct entry

Indirect Allocation
Category 2 Indirect entry Indirect Allocation
Srinivasa
Kasireddy +91-9959765211
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 :
Allocated quantity : 300*1hr +200*1hr+220*1hr = 720 hr

720 items *1hr = 720 hrs
300+200+220 hrs
Allocation Basis :
300:200:220 items
12. Define Cost Component Structure

Activity AllocationPrice CalculationSettings 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
69
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
Srinivasa
Kasireddy +91-9959765211
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
L2
Save
13. Change Revaluation/Price calculation/Cost comp Structure
settings in Version 0
TCode : OKEQ
SPROControlling General ControllingOrganizationMaintain Versions
Select version 0
Controlling Area :
LAP
Version
Enter
Double click on the current fiscal year
Price calculation tab
70
Purely Iter. Price

Plan
Method
Periodic price
Periodic price
Actual
Method
Revaluation
Same line
Cost Comp. Str. :
Kasireddy +91-9959765211
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 AllocationDefine Indirect Activity Allocation
Double click on Create actual indirect activity allocation
Cycle
Start Date :
LAP4
1.4.2012
Enter
Text :
Allocation of testing activity

Segment Name :
TEST_A
Description
Tstng hr-Automate Allocation
Srinivasa
Sender Rule
1 posted quantities
Share in %
:
100
Actual value origin
Receiver rule
:
Variable portions
From
To
Group
Sender
Cost Centre
1009
71
Activity Type
TSHRA
PROD
Receiver
Cost centre
From
Stat. key fig.
ITEM
Srinivasa
Kasireddy +91-9959765211

Segment Name :
TEST_M
Description
Tstng hr-Manual Allocation
Sender Rule
Quantities caulated inversly
Share in %
Actual values
Receiver rule
:
100
Variable portions
From
To
Group
Sender
Cost Centre
1009
Activity Type
TSHRM
PROD
Receiver
Cost centre
Sender Values tab:
Sender
Cost Ctr ActTyp
1009
Factor per 100 AUn
TSHRM
100 H

From
Stat. key fig.
ITEM
Save
72
2. Enduser
1. CC Planning
Tcode
KP06
Version
From
Period
Srinivasa
Kasireddy +91-9959765211
To
Perod
12
Fiscal Year
201
Cost centre
1009
Cost element
group:
Form based
Overview Screen button
OH_COST
Costelement Plan fixed cost Distribution

400500
400600
Post
2. Activity planning for TSHRA/ TSHRM
SAP Easy AccessAccountingControllingCost Centre AccountingPlanningActivity
Ouput /PricesChange
Tcode : KP26
Version
From
Period
To
Perod
0
:
Fiscal Year
2011
Cost centre
1009
Activity Type
group:
Form based

Activity Type
TEST
Plan Activity
EquiNo
TSHRA
TSHRM
(EquNo is the basis for splitting)

Make sure the activity type category is correct before posting and going further.
73
3. Splitting (Planned cost)

TCode : KSS4
Same path
Controlling Area
Enter
Cost centre
Version
1009
Period
Fiscal Year
201x
Test Run
Details List
LAP
Execute
Srinivasa
Kasireddy +91-9959765211
Post
(Splitting should be in 2:1 ratio )

Cost Element button(to cost element wise splitting)
74
Back button
Test Run
Execute
4. Calculating Activity Price(planned) for TSHRA

Upto Cost Centre Accounting same path
PlanningAllocationsPrice Calculation
Srinivasa
Kasireddy +91-9959765211
Tcode
:
KSPI
All Cost Centres
Version
:
0
Period
Fiscal Year
Test Run
Details List
To
2011
Execute
Display primary cost component split :
Select a line Goto menuComponents
Save
Enter
Back button
(Activity price only calculated for TSHRA and should be 33.33 )
75
5. Enter SKF
Tcode : KB31N
Rec. CCtr
StatKF
Total Quantity
1001
ITEM
300
1002
ITEM
200
1003
ITEM
220
Srinivasa
Kasireddy +91-9959765211
Save
Tcode : F-02
40
Salary
40
Rent
50
Cash
7. Sender activities for TSHRA

TCode
:KB51N
Send. CCtr SAtyTyp

1009
Total Quantity
TSHRA
Save
8. Indirect Activity Allocation

T code : KSC5
Period-End ClosingSingle FunctionsAllocations Indirect Activity Allocation
Period
Fiscal
Year :
Test Run
Details Lists
To
2012
Cycle
LAP4
Enter
76
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
Srinivasa
Kasireddy +91-9959765211
Line items button(
(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 )
77
Kasireddy +91-9959765211
Srinivasa
10. Price Calculation(Actual)

T code : KSII
Period-End ClosingSingle FunctionsPrice Calculation
All Cost Centres
Period
Fiscal Year
Test Run
Details List
To
2011
Execute
(Activity price should be 37.00 For TSHRA 75 for TSHRM)
Save
Yes button
Back button

Tcode : KSB1
CostCenter :
1009
Execute
78
For TSHRA diference amount is posted)
Srinivasa
Kasireddy +91-9959765211
(Apart from quantity allocated , costs allocated should be displayed for TSHRM.
79
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

1001
1008(Plant maintanance) 1002
Kasireddy +91-9959765211
1003
Business transaction involved is RKL . Allocation method is called direct activity

allocation.
The allocated activity quantities are
(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
Controlling Area :
Srinivasa
entered directly using TCode KB21N .
LAP
Enter
Cost Centre
1008
Valid From :
1.4.2012
Enter
Name
Descritpion :
Plant maintanance
Person responsible
Plant maintanance
:
MR. k
2
80
Hierarchy area
Business Area
Currency
STD_HIER
:
LANZ
INR
Save

Tcode :KA06
Srinivasa
Kasireddy +91-9959765211

Cost Element
1000000029
Valid From :
1.4.2012
Enter
Name
Description :
Plant Maintenance Charges
CElem category :
Plant Maintenance Charges
Save
3. Creating Activity Type Maintenance hours

Tcode: KL01
Activity Type
MNTHR
Valid From :
1.4.2011 to 31.12.9999
Enter
Name
: Maintenance hours
Description :
Maintenance hours
Activity Unit
CCtr categories :
ATyp Category
H
*
1000000029
Price indicator
Determined manually
Save
81
4. Create No. Ranges interval for Business transaction RKL

Tcode : KANK
CO Area
LAP

Double click on Business Transactions RKL,
Save
Continue
Srinivasa
Kasireddy +91-9959765211
2. Enduser

Tcode : KSB1
CostCenter :
1008
Execute
3. Set Activity price(planned) manually
Ouput /PricesChange
Tcode : KP26
Version
From
Period
To
Perod
0
:
12
Fiscal Year
2011
Cost centre
1008
Activity Type
:
Form based

Activity Type
Fixed price
MNTHR
100
MNTHR
Make sure the activity type category, price indicator is correct before posting and going
further.
Post
82
4. Direct Activity Allocation

TCode
:KB21N

Actual PostingsActivity AllocationEnter
Scrn var.: Cost center
Send. CCtr SAtyTyp
Input Type :
List Entry
Rec.CCtr Total Quantity
Post
Srinivasa
Kasireddy +91-9959765211

Tcode : KSB1
CostCenter :
1008
Execute
6. Price Calculation
T code : KSII
Period-End ClosingSingle FunctionsPrice Calculation
Cost Centre group
Period
:
2
To
Fiscal Year
Test Run
Details List
2011
Execute
(Activity price should be 112.50)
83
Save
Yes button
Back button

Tcode : KSB1
CostCenter :
1008
(Balance should be 0 in the sender CC )
Srinivasa
Kasireddy +91-9959765211
Execute
84
9. Internal Orders(I.O)
Scenario1 : (Telephone wise expenses )
There is one GL account Telephone Expenses and there are 5 telephones
Problem
Solution
How to record telephone wise expenses ?

: 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 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 .
Srinivasa
Kasireddy +91-9959765211
There is one GL account Petrol Exp and one GL account Vehicle Maintenance and
Case2 :
85
IO can be assigned to a CC(as shown in the next image).
Srinivasa
Kasireddy +91-9959765211
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
SPROControllingInternal ordersOrder Master DataDefine 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)
Yes button
Continue
86
Not assigned
Click on TEL
Double click on Motor pool A-zzzzzzzz(external)
Save
Continue
2. Creation of FS Group
Tcode:OBC4
Kasireddy +91-9959765211
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
CO/PP order
Save
Continue
3. Creation of Tel expenses A/C

Tcode : FS00
Select GL account 400500 Salaries
Copy button
GL account:
Srinivasa
Optional.Entry
400581
Enter
Change the Description to Telephone expenses
Create/Bank/interest tab
Change Field status group to G015
Save
Edit Cost element button
Valid from :
1.4.2.2012
Enter
Cost Elem Category
01
87
Save
4. Creation of Internal order

Tcode: KO01
SAP Easy AccessAccountingControllingInternal OrdersMaster DataSpecial
FunctionsOrderCreate
Order type :
TEL
Enter
Srinivasa
Kasireddy +91-9959765211
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
Description
Tel040230901
:
Tel040230901
(Other fields same as before)

Save
5. Creation of IO group
Tcode : KOH1
Same path upto Master DataOrder Group
Create
Order Group
: HYD_TEL
Enter
Description
Hyd telephones
Insert order button

HYD_TEL
Tel040230900
Tel040230901
Save
88
2. End User
1. Posting Telephone Expenses
Tcode :F-02
PstKy
40 Account
Amount
18000
Cost centre
1001
Text
Telephone expenses
PstKy
50
400581
TEL040230900
200691
Enter
Order
Account
Srinivasa
Kasireddy +91-9959765211
Enter
Amount
Business area
Text
:
:
LANZ
Document MenuSimulate
Post
Post one more document for IO TEL040230901
2. Display IO Report
Tcode :KOB1
Up to Internal Orders same pathInformation System Reports for Internal OrdersLine
itemsOrders: Actual Line Items
Order Group
HYD_TEL
Cost element
400581
Execute
3. Planning order wise
Tcode : KPF6
Up to Internal Orders same path
PlanningCosts & Activity inputsChange
Version
From period
To period
12
Fiscal Year
2012
Order group
HYD_TEL
Cost Element
:
400581
Form-Based

Total plan costs
Distribution key
89
240000
Next Combination button (Down arrow)

Total plan cost
Distribution key
120000
Save
Up to Internal Orders same path

Information SystemReports for Internal OrdersPlan/Actual Comparisons
Order: Actual/Plan /Variance
Controlling area :
LAP
Fiscal Year
2012
From Period
To Period
:
:
Plan version
Order group
HYD_TEL
Cost element group
Blank
Or value(s)
400581
Execute
Srinivasa
Kasireddy +91-9959765211
4. Display Variance Reports
90
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.
Srinivasa
Kasireddy +91-9959765211
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
Cost Center
CO/PP order
Save
Opt.Entry
Continue
2. Creation of G/L Promotional expenses

Tcode : FS00
91

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
Kasireddy +91-9959765211
Cost Elem Category
Srinivasa
Enter
Tcode : KS01
01
Save

Tcode :KA06
Cost Element
1000000036
Valid From :
1.4.2012
Enter
Name
Promotional Expenses
Description
CElem category :
21 (Internal Settlment)
Save
4. Create Cost Center

Controlling Area :
LAP
Enter
Cost Centre
1017
Valid From :
1.4.2012
Enter
Name
Sales &Promotion
92
Descritpion :
Sales &Promotion
Person responsible
MR. k

Hierarchy area
Business Area
P Sales & Marketing
STD_HIER
:
Currency
LANZ
INR
Save
Kasireddy +91-9959765211
SPROControlling Internal ordersActual posting SettlementMaintain allocation

structures
Srinivasa
5. Maintain allocation structure:
Select
New Entries
Allocation structure
Text
L1
IO-->CC settlment LAP
Save
Continue
Select Allocation structure L1
New entries
Assignment
: LA1
Text
Save
LA1
Double click on Source folder

Controlling Area
LAP
Enter
From cost element : 400518 expenses
Save
Continue
93
Double click on Settlement cost elements folder

New entries button
Receiver cat By cost element Settlement cost elem Name

CTR
1000000036
Save
Srinivasa
Kasireddy +91-9959765211
6. Maintain settlement profiles:

Same path
Double click on Maintain settlement profiles
New entries
Settlement profiles
LAP1
Description
IOCC LAP
To be settled in full
Allocation structure
L1
Indicators
100%-validation
%-Settlement
Equivalence number
Amount settlement
Valid receivers
Cost center
: Settlement Required
Other Parameters
Document type
SA
Max.no. distribution rules : 999

Residence time
: 3 months
Save
94
Promotional Expense
Continue

New Entries
Order category
01
Srinivasa
Kasireddy +91-9959765211
Enter
Order type :
PEVT
Description :
Promo Events
General parameters
Settlement prof.
LAP1
Planning profile :
000001
Object class
Overhead cost
Release immediately
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
TCode : SNUM
Maintain groups button
Create button
Group :
From No.
Settlemnt Docs LAP

To Number
95
090000000 0999999999
Save
Continue
Back button
Click on LAP
Srinivasa
Kasireddy +91-9959765211
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 AccessAccountingControllingInternal OrdersMaster DataSpecial
FunctionsOrderCreate
Order type :
PEVT
Enter
Order
Description :
EXHST_LAP
Exhibition stall
Company Code :
LAP
Business area
LANZ
Control data Tab

Statistical order
Info: Do not select the check box for a Real IO
96
Goto menuSettlement Rule

New rule button(
Settlement Reciever
Cost Center
1017
Percent
100 %
Valid from
1..201x
to Blank
Srinivasa
Kasireddy +91-9959765211
Save
2. Posting Expenses
Tcode :F-02
PstKy
40 Account
Amount
18000
Cost centre
Blank
Text
Ehibition stall rent
PstKy
50
400518
Enter
Order
Account
: EXHST_LAP
:
200691
Enter
Amount
Business area
Text
:
:
LANZ
Post
Tcode :KOB1
Order
EXHST_LAP
Cost element
Blank
Execute
4. Settlement :
TCode : K088
Accounting ControllingInternal orderPeriod end closingSingle
97
functionsSettlement Individual processing

Order
Settlement period
:
:
EXHST_LAP
Current month
Fiscal year
201x
Test run
Check transaction data
Execute
Details list button(
Srinivasa
Kasireddy +91-9959765211
Back button twice

Test run
Execute
TCode :KOB1
Order
EXHST_LAP
Cost element
Blank
Execute
6. Display CC Report
TCode :KSB1
Cost center
1017
Cost element
Blank
Execute
98
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 .
Kasireddy +91-9959765211
Prerequisites :
1
The two company codes must belong to same CO-Area
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
SPROEnterprise StructureDefinitionFinancial AccoutingEdit,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
Srinivasa
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
Keep on pressing Enter
99
Yes button to transport intervals

Continue
Enter
2. Assign Co-Area
Tcode : OKKP
Double Click on Co-area LAP
Srinivasa
Kasireddy +91-9959765211
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.
100
We can skip this step in the lab.
Tcode : KALB
SPROControllingCost Element AccountingReconciliation
LedgerActivate/Deactivate Reconciliation Ledger
Deactivate Reconciliation ledger
Controlling Area
: LAP
Srinivasa
Kasireddy +91-9959765211
Execute
5. Creation of Cost Center in Comapany code LAC:

TCode : KS01
Extras menu Set Controlliong Area
Controlling Area
LAP
1010
Enter
Cost Center
Enter
Name
Description
Services
:
Services
Person Responsible
mrt
Cost Center Category
Hierarchy area
STD_HIER
Company Code
LAC
Business Area
LANZ
Currency
INR
Save
Enter to ignore the wrng msg
6. Activate intercompany postings in doc type SA.

TCode : OBA7
Double Click on Doc type SA
Inter-company posting
Save
Continue
101
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
Srinivasa
Kasireddy +91-9959765211

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
G/L Account
200971
Enter
Short Text
Field status group
LAP account
:
G067
Save
Block GL account 200971 for creation in company code LAP
Block GL account 200970 for creation in company code LAC
102
9. Define Variants for Real time Integration:

SPROFinancial 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
Kasireddy +91-9959765211
Acct Deter. :Active

Document Type
SA
Ledger Group (FI)
0L
Text
:
Use Checkboxes
Cross-Company-Code
Varaint for LAP
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
Srinivasa
New Entries
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
103
Define Account Determination for Real-Time IntegrationDefine Intercompany Clearing

Accounts
Alterantive path1 :
SPROControllingCost Element AccountingReconciliation LedgerDefine Adjustment
Accounts for Reconciliation Posting
Double click on Maintain Clearing Accounts for Company Codes
Tcode : OBYA
Alterantive path2:
Company code 1
LAP
Company code 2
LAC
Enter
Posted in
LAP
Cleared against :
LAC
Debit posting key : 40

Account debit
Posted in
: 200970
:
LAC
Cleared against :
LAP
Debit posting key : 40

Account debit
: 200971
Credit posting key : 50

Account credit
: 200970
Credit posting key :

Account credit
Save
Continue
Srinivasa
Kasireddy +91-9959765211
SPROFinancial AcccoutningGeneral Ledger AccountingBusiness Transactions

Prepare cross company code transactions
104
: 200971
50
Kasireddy +91-9959765211
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 :
SPROControllingCost Element AccountingReconciliation LedgerDefine Adjustment
Accounts for Reconciliation Posting
Double click on Define Accounts for Automatic Postings
Tcode : OBYB
Controlling Area
LAP
Srinivasa
Enter
Change Account Determin. Button
Save
Account
400509
Save
Continue
2. Enduser
105
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 menuSet Controlling area
Controlling Area :
LAP
Kasireddy +91-9959765211
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.
Srinivasa
Entry in LAP Should be :

Cr Salaries
7000.00-
Dr LAC account 7000.00

Entry in LAC Should be :
Dr Salaries
7000.00
Cr LAP account 7000.00-
106
12. Sales/Purchase Tax

Sales tax
Output tax
Purchase tax
Input tax
VAT : Value Added Tax
Srinivasa
Kasireddy +91-9959765211
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:
SPROFinancial accounting Financial accounting Global settingsTax on
Sales/Purchases Basic settingsCheck Calculation Procedure
Double click on Define Procedures
New Entries
Procedu
re
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
100
BASB
Base amount
110
MWAS
Output Tax
120
MWVS Input tax
Fro
To
AccKey
100 100 MWS

100 100 VST
Save
107
2. Assign Country to Calculation procedure :

Same path
Position
Country
IN
Enter
Ct
y
Proc
IN
TAXIN
Save
Continue
Kasireddy +91-9959765211
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 .
Srinivasa
Info:
InputTax
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
V0
Enter
Taxcode
Enter
Description :
0% input tax
Taxtype
Check ID
ie inputtax
Continue
Keep the cursor on Output tax(Click)
Deactivate line button
:
V1
Save
Taxcode
Enter
Description :
4% input tax
Taxtype
Check ID
ie inputtax
Continue
108
Keep the cursor on Output tax(Click)

InputTax
A0
Save
Taxcode
Enter
Description :
0% output tax
Taxtype
Check ID
ie outputtax
Srinivasa
Kasireddy +91-9959765211
Continue
Keep the cursor on Input tax(Click)
OutputTax :
Save
Taxcode
A1
Enter
Description :
14.5% output tax
Taxtype
Check ID
ie outputtax
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

Tax Category
>
ie Output Tax Account

109
Create/Bank/Interest tab
Field status group
G041
Save
b. VAT Recievable
Select GL account 100530 VAT Payable
Copy button
GL account
200530
Account Group
Assets
Description
VAT Receivable
<
Kasireddy +91-9959765211
Enter
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
Srinivasa
Change button
Control Data Tab
Tax category
ie Only input tax allowed

Save
Enter to Ignore the Wrng Msg
6. Define Tax acounts

Upto Tax on Sales/Purchases same path
110
Posting Define Tax accounts

Double click on transaction MWS
Chart of accounts
( Output tax)
LACA
Enter
Save
Account
100530
Save button
Continue
Srinivasa
Kasireddy +91-9959765211
Back button
Double click on transaction VST
( Input tax)
Save
Account
200530
Save
Continue
7. Define Tax Determination Rules
SPROSales and Distribution Basic FunctionsTaxes Define Tax Determination
Rules
New entries
Tax count
Name
IN
Seq
Tax Categ
Name
MWST
Taxble
Save
8. Define Tax Relevancy Of Master Records

SPROSales and Distribution Basic FunctionsTaxesDefine Tax Relevancy Of
Master Records
Double click on Customer Taxes
New entries
Tax categ
Tax class
Description
MWST
Taxable
MWST
No tax
Back button
Double click on Material Taxes
New entries
111
Tax categ
Tax class
Description
MWST
Taxable
MWST
No tax
Save
4. Enduser
1. Posting Pur Inv
Srinivasa
Kasireddy +91-9959765211
Tcode: F-43
PstKy
31 Account
LAPGNVNDR
200700
Enter
Amount
27000
Calculate Tax
Bus. Area :
LANZ
Text
Pur inv
PstKy
40 Account
Enter
Amount
Tax Code :
Busi Area :
Text
V1
LANZ
+
Document menuSimulate
Post
Entry should be:

31 LANZ LAPFIVNDR LAP vndr
27.000,00-
40 LANZ 0000200700 RM inventory

40
0000200530 VAT Recievable
25.714,29
1.285,71
2. Posting Sales Inv:

Tcode :F-22
PstKy
01 Account
LAPGNCUST
Enter
112
Amount
18000
Calculate Tax
Bus. Area :
Text
PstKy
LANZ
:
Sales inv
50 Account
300510
Enter
:
Tax Code :
A1
Bus Area :
LANZ
Text
Document menuSimulate
Post
Entry should be
01 LANZ LAPFICUST LAP fi customer
18.000,00
50 LANZ 0000300510 Sales
15.720,52-
50
2.279,48-
100631 VAT payable
Srinivasa
Kasireddy +91-9959765211
Amount
113
7. MM Integration
LIVE project
MM Configuration MM consultant
FI Configuration
FI consultant
FI-MM Integration FI Consultant
Srinivasa
Kasireddy +91-9959765211
Learning environment
MM Configuration
FI consultant
FI Configuration
FI consultant
FI-MM Integration
FI Consultant
1. MM configuration
1. Maintain Calendar:
SPROSAP Net weaverGeneral SettingsMaintain 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

Assign Holiday button
114
Select holidays to be included

Assign publ. holiday button
Save
Continue
Back button twice
Factory calendar
Change button
Create button
Factory calendar ID
Description
Factory calendar for LAP
Srinivasa
Kasireddy +91-9959765211
Holiday calendar ID
LF
LC
Workdays
Select Monday to Saturday
Save
Continue
2. Define plant:
SPROEnterprise StructureDefinitionLogistics-GeneralDefine, Copy, delete, check
plant
Double click on Define Plant
New Entries
Plant
LAP1
Name
Factory calendar :
LAP Hyd plant

LF
Save
Name
Country
IN
Region
01
City
Hyd
LAP Hyd plant
Enter
Short Description
MM configuration for LAP
Enter
Continue
Next entry button
Plant
LAP2
Name
LAP mum plant

115
Factory calendar :
LF
Save
Name
Country
IN
Region
13
City
Mum
LAP mum plant
Enter
Continue
Srinivasa
Kasireddy +91-9959765211
Next entry button

Plant
LAP3
Name
Factory calendar :
LAP Chennai plant

LF
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:

Up to Definition same path
Materials Management Maintain storage location
Plant
LAP1
Enter
New Entries
116
SLoc Description
LAP1 Hyd Storage Location
Enter
Save
Continue
Plant
LAP2
Enter
New Entries
Srinivasa
Kasireddy +91-9959765211
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
New Entries
Purch. Organisation Purch. Org Descr
LAPO
LAP purchase org.
Save
Continue
117
6. Assign plant to company code:

Up to Enterprise Structure same path
AssignmentLogistics-General Assign plant to company code
New Entries
CoCd Plnt
LAP
LAP1
LAP
LAP2
LAP
LAP3
Save
Kasireddy +91-9959765211
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 ManagementAssign purchasing organisation to company code
Position
Purchasing org
LAPO
Srinivasa
Enter
POrg
CoCd
LAPO LAP
Save
Continue
9. Assign purchase organisation to plant:

Same path next line
New Entries
POrg
Plnt
LAPO
LAP1
118
LAPO
LAP2
LAPO
LAP3
Save
Continue
10. Create Purchasing Groups:

SPROMaterials ManagementPurchasingCreate Purchasing Groups
New Entries
Purchasing Group Desc. Pur.Grp
Srinivasa
Kasireddy +91-9959765211
LPG
LAP purchasing group
Save
Continue
11. Define Material Group:

SPROLogistics-GeneralMaterial MasterSettings for Key FieldsDefine 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 SettingsMaintain Company Codes for Material Management
Position
Company code
LAP
Enter
(CAUTION: Enter current period .If you enter wrong period it cant be changed)
Cocd Year
LAP
Period
2012 5(Current period)
ABp
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.
119
13. Define Attributes of Material Types:

Up to Basic Settings same path
Material typesDefine Attributes of Material types
Position
Material type
FERT
Enter
Select Material Type FERT
Double click on Quantity/value updating folder
Position
Srinivasa
Kasireddy +91-9959765211
Enter
Valuatin area
LAP1
Enter
Valuation area
Materials Qty updating Value Update
LAP1
FERT
LAP2
FERT
LAP3
FERT
Save
Continue
Back button
Position
Material type
ROH
Enter
Select Material type ROH
Postion
Valuation Area
LAP1
Enter
Val .area
Matl type Qty updating Value Update
LAP1
ROH
LAP2
ROH
LAP3
ROH
Save
Back button
Position
Material type
HALB
Enter
120
Select Material type HALB

Postion
Enter
Valuation Area
LAP1
Enter
Val .area
LAP1
HALB
LAP2
HALB
LAP3
HALB
Srinivasa
Kasireddy +91-9959765211
Save
Back button
Position
Material type
VERP Packaging
Enter
Select Material type VERP
Postion
Enter
Valuation Area
LAP1
Enter
Val .area
LAP1
VERP
LAP2
VERP
Save
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):

SPROMaterial ManagementPurchasingPurchase OrderSet Tolerance Limits for
Price Variance
121
Select TlKys 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
Srinivasa
Kasireddy +91-9959765211
Up to Materials Management same path

Inventory Management and Physical InventoryPlant Parameters
Select Plant 1000
Copy as button
Change the plant to LAP1
Enter
Select Plant 1000
Copy as button
Enter
Select Plant 1000
Copy as button
Enter
Save
Continue
16. Define Number Assignment for Material and Phys. Inv .Docs
(One time setting)
SPROMaterials ManagementInventory Management and Physical InventoryNumber
Assignment Define Number Assignment for Material and Phys. Inv .Docs
Maintain Groups button
Material documents for goods receipts
WE WF WO WW
Interval menuMaintain
Position the cursor on any interval
122
Edit menuInsert year

Year
From number To number
2013
4500000000
4599999999
(Calendar year)
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
Srinivasa
Kasireddy +91-9959765211
Edit menuInsert year

Year
From number To number
2013
5000000000
5099999999
(Calendar year)
Enter
Save
Continue
17. Set Tolerance Group (for GR):

Same path up to Inventory Management and Physical Inventory
Goods ReceiptsSet Tolerance Limits
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 VerificationIncoming InvoiceMaintain Default Values for tax codes
123
New Entries
Company Code :
LAP
Save
Continue
19. Set Tolerance Limits (for invoice verification):

Up to Logistic Invoice Verification same path
Invoice BlockSet Tolerance Limits
Select Tolerance Keys PP, PS & ST for company code 1000
Copy as button
Srinivasa
Kasireddy +91-9959765211
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 groundDefine Automatic Status change
New Entries
CoCd Set correct invoice tocompleted
LAP
Blank
Save
Continue
21. Group together Valuation areas:

Valuation and Account AssignmentAccount DeterminationAccount Determination
Without WizardGroup Together Valuation Areas
Position
Valuation area
LAP1
Enter
Valuation Area
Val. Grpg code
LAP1
LAP2
LAP3
Save
Continue
22. Define Valuation Classes:

124
Same path next lineDefine 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
Srinivasa
Kasireddy +91-9959765211
Save
Continue
2. FI Consultants Job
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
Blank
Control Data tab

Tax category

Save
125

Inventory SemiFG :
Select 200702 (Inventory FG)
Copy button
GL account :
200701
Enter
Description
Inventory SemiFG
Save
Srinivasa
Kasireddy +91-9959765211

GR/INR account
Select 100800 Expenses payable account
Copy button
GL account
100520
GR/INR account
Enter
Description
Control data tab
Tax category
(Minus)

Sort key
010 (Purchase order No.)
(Make sure Open Item Management is on)

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)
126
Copy Button
GL account
400599
RM Consumption
Enter
Description
G003 (Material Consumption Account)
Save
Edit Cost Element button
Valid From
01.04.2012
Enter
Srinivasa
Kasireddy +91-9959765211
Cost Elem category
Save
SFG Consumption Account
Select 400599 RM Consumption
Copy Button
GL account
400950
SFG Consumption
Enter
Description
Save
Edit Cost Element button
Valid From
01.04.2012
Enter
Cost Elem category
Save
Cost Of Goods Sold a/c
Select 400500 (Salaries)
Copy Button
GL account
400204
Cost Of Goods Sold a/c
Enter
Description
G030 ie Change in stock accounts
Save
Inc/Dec in stock account
Select 300510 (Sales account)
Copy Button
127
GL Account
300204
Inc/Dec in stock
Blank
Enter
Description
Control data tab
Tax category

G030 (Change in stock account)
Save
Srinivasa
Kasireddy +91-9959765211
3. Assignment of Accounts:
Tcode: OBYC
SPROMaterial ManagementValuation and Account AssignmentAccount
Determination Account Determination without wizardConfigure Automatic Posting
Cancel button
Account Assignment button
Double click on transaction BSX
Chart of account :
(Inventory posting)
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
LAP1
100521
Save
Back button
128
Double click on Transaction WRX (GR/IR clearing account)

Valuation modif
Valuation class
Save
Valuation modif
Valuation Class
Account
LAP1
100520
Save
Back button
Kasireddy +91-9959765211
Double Click on transaction GBB

General modification
Valuation modif
Valuation class
Save
Valuation modif
General Modification Valuation Class
Account
VBR
LAP1
400591
VBR
LAP2(SemiFG)
400990
VAY
LAP3
400204
AUF
LAP3
300204
AUF
LAP2
300204
VAX
LAP3
400204
ZOF
LAP3
300249
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
Srinivasa
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 Without Production Order

[PP implemented]
[PP not implemented]

129
FG Delivery to customer
VAY
VAX
Sales A/C as Revenue element
Sales A/C not as a Revenue element
[CO Implemented)
(CO not implemented)
4. Creating No. ranges for Document types WE WA RE

Tcode :OBA7
Srinivasa
Kasireddy +91-9959765211
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
49
From Number To Number
2012 4900000000
4999999999
Enter
Interval button
No Year
50
2012 5000000200
5099999999
Enter
Interval button
No Year
51
2012 5100000000
5199999999
Enter
Save
Continue
130
3. MM End User
Planned delivery costs
Unplanned Delivery Costs
If you know the freight charges at the time of PO
If you dont know the freight charges at
creation, you can enter in PO. During the GR, the
the time of PO creation, you can enter
freight charges will be posted to Freight clrng
them during Inv Verification (MIRO)
account.
Freight charges will be posted to Inventory
There are two options as how to post
Srinivasa
Kasireddy +91-9959765211
account
unplanned delivery cost (This is a CoCd
During freight invoice verification they are
level setting).
transferred to vendor account.
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 AccessLogisticsMaterials ManagementMaterial MasterMaterialCreate
(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
131
Stor. location
LAP1
Enter
Basic Data1 tab:
Material
LAP RM (Steel)
Basic unit of measures

Material Group
Division
LS
KG
LAPM
Net Weight :
KG
Gross Weight
KG
Purchasing Tab
Kasireddy +91-9959765211
Purchasing Group
LPG
Accounting 1 tab
Valuation class
LAP1
Price Control
Moving Price
200
(Moving Average Price)
Save
2. Creation of Vendor Masters

Tcode : XK01
Vendor
LAPRMVNDR
Company Code :
LAP
Purchase Organisation :
Account Group
LAPO
LARM
Enter
Name
LAP RM vendor
Country
IN
Region
01
Enter 4 times (or Next Screen button 4 times)

Recon. account :
Srinivasa
Sort Key
012
100980 (Sundry creditors)

(Vendor Number]
Cash Management Group
A1
Enter
Payt Terms
0001
Tolerance Group :
blank
Chk double inv

Save
3. Creation of Vendor Masters

Tcode : XK01
132
Vendor
LAPTRVNDR
Company Code :
LAP
Purchase Organisation :
Account Group
LAPO
LARM
Enter
Name
LAP Transport vendor
Country
IN
Region
01
Enter 4 times (or Next Screen button 4 times)

Recon. account :
Srinivasa
Kasireddy +91-9959765211
Sort Key
012
100980 (Sundry creditors)

(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
OtherClose Period
From Company Code
LAP
To Company Code
LAP
Period
5 (Current period)
Fiscal Year
:
Check and close period
Execute
2012
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
133
PurchasingPurchase OrderCreateVendor/Supplying Plant Known

Vendor
LAPRMVNDR
LAPO
Enter
Org.Data tab
Kasireddy +91-9959765211
Purch. Org
Purch. Group
Company Code :
LAP
Item Material PO
Quantity
Deliv. Date
Net
Price
Currency
Plnt
Stor.
Location
10
15.08.2012
200
INR
LAP1
LAP1
LAPRM
100
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 ManagementGoods MovementGoods ReceivedFor Purchase OrderPO
Number Known
Purchase order :
Srinivasa
LPG
4500017175
Enter
Where tab
Storage Location :
Text :
LAP1
GR
Quantity tab
Qty in Delivery Note
100 kg
Item OK
Check button (Document is 0K msg should come)
Post
134
(Note down the material document no 600000030)
7. Displaying Material document

Tcode: MB03
Up to Inventory Management same path
Material DocumentDisplay
Material Document
600000030
Material document year
2012
Enter
Srinivasa
Kasireddy +91-9959765211
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 VerificationDocument EntryEnter 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
135
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
Srinivasa
Kasireddy +91-9959765211
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

Post
136
10. RM Consumption
Tcode : MB1A
Inventory ManagementGoods MovementGoods Issue
Movement type :
Plant
201 (Consumption for CC)
LAP1
Storage location :
LAP1
Kasireddy +91-9959765211
Enter
Cost Centre
Material
Qty
25
1001
LAPRM
Enter
Post
(Document 500000350 generated)
Goods Issue menuDisplay
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
Srinivasa
11. Display Stock Ledger

Tcode : MMBE
up to Material Management same path
Inventory ManagementEnvironmentStockStock Overview
Material
LAPRM
Plant
LAP1
Storage location :
LAP1
Execute
12. Display Stock for posting date

Tcode :MB5B
137
Same path
Material No.
Company Code :
LAP
LAPRM
Srinivasa
Kasireddy +91-9959765211
Plant
:
LAP1
Valuated stock
Execute
138
8. SD Integration
1. SD consultant job
1. Define Sales Organisation:
SPROEnterprise StructureDefinitionSales and DistributionDefine, copy, delete,
check sales organization
Double click on Define Sales Organisation
Sales Organisation
Kasireddy +91-9959765211
Description
LAP North sales org
Srinivasa
New Entries
Country
Statistics currency
LANS
INR
Save
Name
Country
:
:
LAP North sales org
IN
Region
01
Enter
Short Description:
SD configuration for LAP
EnterContinue
Next Entry button
Sales Organisation
Description
LAP South sales org
Statistics currency
LASS
INR
Save
Name
:
:
IN
LAP South sales org

Region
01
Enter
Continue
2. Define Distribution Channel:

Same path Next line
Define ,copy , delete ,check distribution channel .
Double click on Define distribution channel .
139
New Entries
Distr. Channel
LD
Name
Direct Sales
Save
Continue
3. Define shipping points:

Up to Definition same path
Kasireddy +91-9959765211
Logistics Execution Define, copy, delete, check shipping Point.

Double click on Define shipping point.
New Entries
Shipping point
Description
LASH
LAP shipping point
LAP Shipping point.
Save
Name
Country
IN
Region
01
Enter
Continue.
4. Assign Sales Organisation to Company code:

SPROEnterprise StructureAssignmentSales and DistributionAssign Sales
Organisation to Company code
Position
Sales Org
LANS
LASS
Enter.
Sorg.
CoCd
Srinivasa
LANS LAP
Position
Sales Org
Enter.
Sorg. CoCd
LASS LAP
Save
Continue
140
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.
Srinivasa
Kasireddy +91-9959765211
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
LASS
LD
LAP1
LANS
LD
LAP2
LASS
LD
LAP2
LANS
LD
LAP3
LASS
LD
LAP3
141
Save
Continue
9. Define Rules by Sales area:

Up to Sales and Distribution same path
Business Area Account AssignmentDefine Rules for Sales area
Position
Srinivasa
Kasireddy +91-9959765211
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 ExecutionAssign Shipping point to Plant
Find Button
Find :
LAP1
Enter
Click on LAP1
Keep the cursor on LAP1
Assign Button
142
LASH
Enter
Save
Continue
12. Assign Shipping Points:

SPROLogistics ExecutionShippingBasic Shipping FunctionsShipping point and
Goods receiving point DeterminationAssign shipping points
Srinivasa
Kasireddy +91-9959765211
New Entries
SC LGrp Plnt
PrShP MShPt
01
LASH
0003
LAP1
LASH
Save
Continue
13. Maintain Pricing Procedure:

SPROSales and DistributionBasic FunctionsPricingPricing controlDefine 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
Make a note of AccKey for CTyps 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 lineDefine and Assign Pricing Procedure
143
Double click on Define Pricing Procedure Determination

New Entries
SOrg.
DChl Dv DoPr CuPP PriPr
CTyp
LANS
LD
LS
LAPPP PR00
LANS
LD
LS
LAPPP PR00
LASS
LD
LS
LAPPP PR00
LASS
LD
LS
LAPPP PR00
Save
Srinivasa
Kasireddy +91-9959765211
Continue
15. Define Tax Determination Rules:

Up to Basic Functions same path
TaxesDefine Determination Rules
New Entries
Tax Count.
IN
Seq
Tax categ. :
UTXJ
Save
Continue (skip this step lab)
16. Set up Partner Determination:

Customer
Partner role
CustomersH Office
Sold to party Sales to party

Payer
HO will settle the bill
CustomersPlant
Ship to party Send goods to plant
Customers Br office
Bill to party
Send bill to Br Office
Up to Basic Function same path

Partner DeterminationSet 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

144
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
Kasireddy +91-9959765211
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
Enter
Srinivasa
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
145
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
Srinivasa
Kasireddy +91-9959765211
Save
2. Assignment of Accounts for Automatic Posting:
SPROSales and DistributionBasic Functions Account Assignment/CostingRevenue
Account DeterminationAssign G/L accounts
Double Click on table 1
New Entries
App
CndTy
ChAc
SOrg. AAG
AAG
ActKy GL A/C
KOFI
LACA LANS
01
03
ERL
300510
KOFI
LACA LANS
01
03
ERS
400491
KOFI
LACA LASS
01
03
ERL
300510
KOFI
LACA LASS
01
03
ERS
400491
Save
Continue
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
LAP SD customer
Enter
Name
Country
IN
Region
01
146
Company Code Data button

Recon. account
Sort Key
200610 (Sundry Debtors)
031 (Customer Number)
Payment transactions tab

Terms of payment : 0001
Sales Area Data button
Sales tab
Cust. pric. proc
Kasireddy +91-9959765211
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
Industry Sector
Material Type
Finished products

Select Basic Data1, Sales: Sales Org. Data 1 , Sales: Sales Org. Data2 ,
Srinivasa
Sales: General/Plant Data , MRP 1 , Accounting 1 , Costing1 and Costing2

Org. Levels button
Plant :
LAP1
Stor. Location
LAP1
Sales Org.
LANS
Distr. Channel
LD
Enter
Description
: LAP FG
Base Unit of Measure :

Material Group
EA
LAPM
147
Division
LS
GenItemCatGroup
NORM
Sales: sales org .1 tab

Delivering plant :
LAP1
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
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Sales: General/Plant tab

Gross Weight
Net Weight
Availability check
KP (no check)
Trans. Grp
0003
Loading Grp
0003
ND
Valuation class
LAP3
Price control
Standard price
600
ie Manual
MRP 1 Tab
MRP type
ie No plan
Accounting 1 tab
(Finished Product)
(std. price)
Save
3. Creation of Condition records

Tcode : VK11
SAP Easy AccessLogisticsSales and Distribution MasterData Conditions
Select Using Condition TypeCreate
Condition type
Srinivasa
PR00
Key Combination button
Material with release status
Enter
Sales Organization
LANS
LD
Material Amount Valid From
Valid to
LAPFG
31.03.2012
700
1.04.2011
Save
Back button
148
Condition type
K007
Division/Customer
Enter
Sales Organization
LANS
LD
Division
LS
Customer
Amount Valid From
LAPSDCUST 1
Valid to
1.04.2011
31.03.2012
Save
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Back button
Condition type
MWST
Domestic taxes
Enter
Country
IN
TaxCl1Cust
Tax cl. Mat
Amount Valid From

1.04.2011
Valid to
31.03.2012 A1
Save
4. Creation of Sales order

Tcode :VA01
Up to Sales and Distribution same path
SalesOrderCreate
Order type :
OR
Sales Organization
LANS
LD
Division
LS
Enter
Sold-to party
PO Number
PO date
LAPSDCUST
:
567 (customers Purchase order no)
Todays date
Req. deliv. date :
Todays date
Delivery plant
LAP1
Payment Terms :
0001
Complete dlv
Item Material Order Quantity Plant
149
TaxCode
10
LAPFG
10
LAP1
Enter
Select item 10
GoTo menuItemConditions
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)
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Back button
Edit menuIncompletion log
Save
Note down the order no
5. Production Receipts
Tcode :MB1C
Up to Logistics same pathMaterails ManagementInventory ManagementGoods
Movement Goods ReceiptsOthers
Document date :
Todays date
Movement type :
521 (receipt w/o production order into unrestricted use stock)
Plant
LAP1
Storage location :
LAP1
Enter
Material Qty.
LAPFG
150
Enter
Text
GR from production
Post
Post
Note down the material document no. 100000360
Other Goods Receipt menuDisplay
Material document
100000360
Mat. Doc year
2012
Enter
150
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
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Sales and DistributionSalesOrderSubsequent FunctionsOut 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
Note down the delivery document 80015213
Outbound Delivery menuDisplay
Outbound delivery
80015213 (comes automatically)
Enter
Document flow button
Select GD goods issue
Display document button
Dr Cost of Goods Sold
Cr
6000.00
Inventory FG
6000.00-
7. Sales billing
Tcode: VF01
Same pathBilling Document
Select the Delivery document
Execute button
Goto menu ItemItem Conditions
Enter CnTy MWST and Amount 5%
151
CnTy
Amount
MWST 5
Back button
Save
[Note down the billing document no)
Billing document menuDisplay
Billing document : xxxxxxxxxxxxx
Accounting button
Dr LAP SD Customer
Dr
Discount
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Sales
Cr
Srinivasa
Cr
Order type
7276.50
7000.0070.00
VAT Payable
346.50
In case of error Document xxxxxxxx saved (no accounting document generated) ,

for complete error analysis:
TCode: VF02
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 AccessLogisticsSales and DistributionSalesOrderCreate
:
CR
Sales Organization
LANS
LD
Division
LS
Create with Reference button

Bill doc tab
Billing Document :
XXXXXXXXXXX
Copy button
Item overview tab
Billing block
Blank
152
Target quantity
2
Sales tab
Billing block
Blank
Order reason
Damaged in transit
Billing Date :
Todays date
Item detail tab

Billing block
Blank
Edit menu Incompletion log
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Save
9. Posting Cr Memo
Tcode : VF01
Document
Enter Cr memo request
Execute button
Save
Billing document 90036292
Accounting button
Double click on Accounting document
Entry should be :
Cr LAP SD Customer
1455.30-
Dr
To Sales
Cr
Discount given
Dr
1400.00
VAT Payable
14.0069.30
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
153
Billing block
Blank
Order reason
Returns
Order Quantity
5
Select Item 10
Goto menu ItemConditions
Edit menuIncompletion log
Save
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11. Return Delivery (VL02n)

Tcode : VA02
Order : XXXX
Enter
Sales document menuDeliver
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.
To analyze the Profitability at Profitability

segments like Customer , Employee ,
Product etc
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Profit centres can be structured according to

Plants, Branch offices, Products or Product
ranges.
This is called Multidimensional Profitability

Eg: Customer wise profit, Employee wise
profit ,Product wise profit
PCA uses Period accounting and Cost-ofsales 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.
No reconciliation issues
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
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.
Op Concern 1 CoArea1
CoCd1
155
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 .
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Path:SPROControllingProfitabilty AnalysisStructuresDefine Operating

ConcernMaintain 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.
Left arrow button
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
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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.
Left arrow button
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 menuFixed fields
3. Define Profitability Segment Characteristics(Segment-Lvl

Characteristics)
157
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
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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

SPROEnterprise StructureAssignmentControllingAssign 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 .
5. Define No ranges for Actual Postings

Path: SPROControllingProfitability Analysis Flows of Actual Values Initial Steps
Define Number Ranges for Actual Postings
Operating concern
LAP1
158
Maintain Groups button

Create button
Group
COPA docs LAP
From No
To Number
9000000000
9999999999
Save
Continue
Back button
Click on F
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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
7. Maintain Assignment of SD Conditions to CO-PA Value

Fields
Transfer of Billing Documents Assign Value Fields
159
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
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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

Change button
Valid From :
1.4.2011
Enter
CostElemCategory
11 i.e. Revenue
Srinivasa
Save
10. Create Cost element for GL account Discount given

Tcode
: FS00

Change button
Valid From :
1.4.2011
Enter
CostElemCategory
12 i.e. Sales deduction
Save
160
11. Creating GL account Advertising

Tcode : FS00
Copy button
GL account:
400707
Enter
Change the Description to Advertising
Save
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Valid From :
1.4.2011
Enter
CostElemCategory
Save
12. Create Secondary Cost Element(Settlement)

Tcode : KA06
Cost Element
1000000008
Valid From
: 1.4.2011
to
31.12.9999
Enter
Name
Description :
IO settlemnt
IO Settement
CElem category :
21
Save
13. Maintain allocation Structure :

SPROControllingInternal OrdersActual PostingsSettlementMaintain Allocation
Structure
Select Allocation Structure A1
New Entries
Assignment
Text
070
Advtising
Save
161
Continue
Select Assignment 070
From cost el To cost elem
400707
Save
Double click on Settlment cost elements folder
New Entries
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Receiver cat By cost element settlement cost elem

PSG
100000008
Save
14. Maintain PA Tranfer Structure

Same path
Maintain PA Transfer Structure
New Entries
Structure Text
L1
IO --> PA tranfer
Save
Continue
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
162
From : 400707
Costs/revenue
Save
Double click on Value fields folder
New Entries
Quantity/value
Fixed/Variable
Value fld
Value field
2 Variable
VV713
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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
%-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)
163
Same menu path

Maintain groups button
Create button
Group
From No
Settlemnt DOcs LAP

To Number
070000000 0799999999
Save
Enter
Back button
Click on LAP
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Assign elemnt group button

Double click on Settlemnt Docs LAP
Save

New Entries
Order category
01
Enter
Order type :
EVNT
Description :
Events
Settlement prof :
LAP1
Planning profile :
000001
Object class
Overhead cost
Release immediately
Yes button
Continue
Motor pool A-zzzzzzzz(external)
Not assigned
Double click on EVNT
Save
Continue
18. Activate Profitability Analysis

164
Activate Profitability Analysis

Position
CO Area
LAP
COAr Name
LAP
FromFY Op.concern Active status
CO area for LAP 2012
LAP1
Save
Continue
19. Create IO Adv Event

Tcode: KO01
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Order type :
EVNT
Enter
Order
Description :
ADVEVNT_LAP
Adverstsing Event
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
Settlement Rule button
Cat
Settlement Reciever
PSG
Enter
Product : LAPFG
Enter
Cat
Settlement Reciever %
PSG
Settlemnt type
100 FUL
Save
20. Create No. Range intervals for Bus Transactions KOAO

Tcode : KANK
CO Area
LAP

Double click on Business Transaction KOAO
165
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
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Controlling Area :
LAP
Enter
ie Direct costs from FI

Cost Element
From :
Group
To

New Entries
Quantity/value
Fixed/variable Value fld
Value field

ie Direct revenues from FI

Cost Element
From : 300510
To :

New Entries
Quantity/value
Value field
VV010

ie Sales Deductions / Rebates

Cost Element
From : 400491
To :
166

New Entries
Quantity/value
Value field
VV030
Save
Continue
22. Transfer of old SD data to PA

We perform this activity in the following two scenarios
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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: SPROControllingProfitability AnalysisToolsProduction Start upSubsequent
Posting of Documents Post Billing Documents Subsequently
TCode : KE4S
Billing Type
Company Code :
F2 ,G2
LAP
Test run
Create log
Check for existing records
Execute
Back button
Test run
Execute
Error : Document with unauthorized business transaction SD00
Srinivasa
Solution : Activate profitability analysis
2. SD End User
1. Creating Sales order
Tcode: VA01
Create a Sales order for Material LAPFG
Qty : 50
167
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
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Accounting button
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
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.
Division
: LS
LANS
Continue button
Post
2.
Posting Advertising expenses in IO
Tcode :F-02
168
PstKy
40 Account
Amount
18000
Cost centre
Text
Advertising expenses
PstKy
50
400707
Enter
Order
Account
ADVEVNT
:
200691
Enter
Amount
Business area
Text
:
:
LANZ
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Post
Srinivasa
Tcode : KO88
4. CO End User
1. Set Operating Concern
Tcode
KEBC
SAP Easy Access AccountingControllingProfitability AnalysisEnvironmentSet

Operating Concern
Operating concern
LAP1
Costing-based
Enter
2. IO Settlement
SAP Easy AccessAccountingControllingInternal OrdersPeriod End ClosingSingle
FunctionsSettlementIndividual Processing
Order
: ADVEVNT
Parameters
Settlement period
Fiscal Year
201
Processing type :
Full Settlement
Test Run
Check trans. Data

Execute
Details list button
169
Back button two times

Test Run
Execute
3. Display COPA Line items:

Upto Profitability Analysis Same path
Actual PostingsDipaly Line Items
Tcode :KE24
Currency type
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Company code
10
LAP
Execute
Enter
4. Checking the flow of Billing Documents

SAP Easy AccessAccountsControllingProfitability AnalysisToolsAnalyze Value
Flows Check Value Flow in Billing Document Transfer
Tcode: KEAT
Company Code :
LAP
Currency type
10
Sales Organization
LANS
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.
170
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.
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Special direct costs like transporting ,packaging can be calculated
Data transfer to CO-PA without valuation function :
Information available based on SDCOPA 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.
Requirment 1 : Calculate Sales Commsion, Freght charges
171
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
Product
COGS
Discount
Revnue
Quantity
Antcipated
Sales
commison
Anticipated
Freght
Prod A
2700
100
3600
10
72
50
Prod B
3000
150
4000
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
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Freight = 5 Rs /Kg
Product COGS Discount Revnue Quantity Sales

Freght RM
commison
cost
172
RM
OH
Prod Cost
Prod A
2700
100
360
10
72
50
1500 150 1050
Prod B
3000
150
400
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 :
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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
Freght RM
commison
cost
RM
OH
Prod Cost
Prod A
2700
100
3600
10
7.2
50
1500 150 1050
Prod B
3000
150
4000
25
2000 200 800
Prod A
100
50
173
20
30
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
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1. Create Condition Types and Costing Sheets

SPROControllingProfitability AnalysisMaster Data ValuationSet UP Conditions
and Costing SheetsCreate 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 StrategiesDefine and Assign Valuation Strategy
Operating concern : LAP1
Enter
Select Val.strat 001 Online Valuation Actual
Double click on Details folder
New Entries
sequence Appl
Costg sheet Mat.cstg Qty.field
LAP1
KE
VVIQT
Double click on Assignment of Valuation strategy folder

New Entries
PV Rec. Plan ver
Val .strat
Name
174
01
001
Save
3. Assign Value Fields
Upto Valuation same path
Set UP Conditions and Costing SheetsAssign Value Fields
Assign Value Fields
New Entries
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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
ToolsAnalysisCheck Customazing Settings
TCode : KECM
Select Overview of Valuation under Analysis Options folder
Point of valuation : 01
Realtime valuation of actual data
Billing Document
Srinivasa
Execute
The following image explains how values flow between CO-PA value fields and costing sheet
records.
175
Kasireddy +91-9959765211
Srinivasa
2. Enduser :
1. Maintain condition record:
SAP Easy AccessAccountsControllingProfitability AnalysisMaster DataCondition

Records/PricesCreate
TCode : KE41
Condition type
PROV
Enter
Access to Sales organization
Enter
Sales Org Amount Valid From
Valid to
LANS
31.3.2013
1.4.2012
Save
2. Creating Sales order
Tcode: VA01
Create a Sales order for Material LAPFG
Qty : 30
3. Delivery of goods to customer
Tcode : VL01N
Post goods issue for the above sales order
176
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
Accounting button
Double click on Profitab. Analysis
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Value fields Tab

Value fields Interanl sales comm should be filled with value
6. Valuation Simulation
SPROControllingProfitability AnalysisToolsAnalysisValuation Simulation
TCode : KE21S
Posting date
27.11.2013
Pt.of valuation : 01
Record Type :
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 )
177
178
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2. Characteristic Derivation
179
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
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SAP Easy AccessAccountsControllingProfitability AnalysisActual PostingsCreate

Line items
180
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.
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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
SPROControllingProfitability Analysis Flows of Actual Values
Initial StepsCharacteristic GroupsMaintain Characteristic Groups
Operating concern
LAP1
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
KNDNR
Customer
Field ready for input
ARTNR
Product
WERKS
Plant
Required entry
VKORG
Sales Org.
Required entry
VTWEG
Distr. Channel
Required entry
SPART
Division
Required entry
MATKL
Material Group
KOKRS
CO Area
Field not ready for input
Save
181
2. Assign Characteristic Groups for Assignment Screen

Same Path
New Entries
BusTran
Name
Charct.group Name
RFBU
FI: Postings LAP1
Click on the
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Plant
Entry aid
Freight charges posting
button in the Entry aid column

:
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
Industry Sector
Material Type
Finished products

Sales: General/Plant Data , MRP 1 , and Accounting 1
Org. Levels button
Plant :
LAP1
Stor. Location
LAP1
Sales Org.
LANS
Distr. Channel
LD
Enter
Description
: LAP FG9

Material Group
Division
LS
GenItemCatGroup
EA
LAPM
:
NORM

Delivering plant :
LAP1
182
Tax Data
Tax Classification:
1 for UTXJ
1 for MWST

Acct assignment grp
03
ie Finished Goods
Item category group
NORM

Gross Weight
Net Weight
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Availability check
KP (no check)
Trans. Grp
0003
Loading Grp
0003
ND
Valuation class
LAP3
Price control
Standard price
900
ie Manual
MRP 1 Tab
MRP type
ie No plan
Accounting 1 tab
(Finished Product)
(std. price)
Save
2. Create Condition Record

TCode : VK11
Condition type
PR00
Material with release status
Enter
Sales Organization
LANS
LD
Material
Amount Valid From
LAPFG9 1200
1.04.2011
Valid to
31.03.2012
Save
3. Sales Order
TCode : VA01
Material
Order quantity
LAPFG9 10
183
4. GRfrom Production
Tcode :MB1C
Up to Logistics same pathMaterails ManagementInventory ManagementGoods
Movement Goods ReceiptsOthers
Document date :
Todays date
Movement type :
521 (receipt w/o production order into unrestricted use stock)
Plant
LAP1
Storage location :
LAP1
Enter
Material
Qty.
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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
1000
400592 Freight Charges
Enter
Amount
9000
Cost Centre
Text :
Freight charges payment
Enter account assignment button(
) next to Profit.Segment
Double click on Mat Group under Central entry aids

Material Group
LAPM
(Plant , Sales Org. Distr. Channel, Division, filled automatically)

Continue
Pst Ky
50
Account
200691
Enter
184
Amount
Text
Document menu Simulate

Post
8. Display Actual line items

TCode : KE24
9. Top-Down Distribution
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SAP Easy Access AccountingControlling Profitability Analysis Actual Postings

Period-End Closing Periodic Adjustments Top-Down Distribution
TCode :KE28
Operating concern
LAP1
Enter
Actual Data
From Period
: 8.2013
Record Type
: B
to 8.2013
Dir.posting from FI
All Valuation Views

Reference Data
From Period
Version
: 8.2013
to 8.2013
Record Type
Actual data
: F
Cumulative Periods
Cumulate Record Type
Reference base
Srinivasa
Single Val. Fld

Value Field
Invoiced quantity
Test run
Selction Criteria button
Product
Material Group
*
:
LAPM
(All remaining charceristics value = *)
185
Processing Instructions button
Characteristic
Distibution Lvl
Copy Value
Summarize Value
Customer
Product
Sales Order
Company Code
CO Area
Plant
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Sales Org.
Srinivasa
Business Area
Save
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
Back button
Execute
Messages tab
(Msg for successful distribution : Editing has been completed successfully)
Result tab
186
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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
10. Display Actual Line items

TCode : KE24
187
(A new COPA document with 3 items is generated)

11. History
Same path
TCode : KE28L
:
LAP1
Enter
Variants
Variant
LAP1_updatemode
Status
Test Run
Update Run
Successful
Cancelled
with Warnings Errors Found
Execute
Expand subtree button(
Line Items button (
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Operating concern
188
5. Profit Centre Accounting

EC-PCA(Enterprise control PC
accounting)
CO-PA(Profitablity Analysis )
is used to analyse profits at
PA is multidimensional
organizational levels
Used to analyse profits in multiple dimensions

like customer, Products, Sales org
Sales employee etc
Kasireddy +91-9959765211
1. Set controlling area:

Path: SPROControllingProfit Center AccountingBasic SettingsSet Controlling area
T Code
OKKS
Controlling area :
LAP
Enter
2. Maintain Controlling Area Settings:
Same path up to Basic settingsControlling Area SettingsMaintain 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
Srinivasa
Continue
3. Create Dummy profit centre:
Up to Profit Center accounting same path
Master DataProfit CentreCreate 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
Description
Dummy PC for LAP
Porfit Center Group
STD_HIER
189
Save
4. Set Control Parameter for Actual Data:
Up to Profit Center Accounting same pathBasic settings Controlling area Settings
Activate Direct postingsSet Controls Parameters for Actual Data
New entries
From year
Line items
Online transfer
2012
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Save
Continue
5. Maintain Plan Versions
Same path up to Activate Direct postings
Plan VersionsMaintain 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
Save
Continue
6. Define Number Ranges for Local Documents:
Up to Prfit Center Accounting same path
Actual PostingsBasic Settings: ActualDefine 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
Enter
Save
190
Continue
Back button
Planned doc. from direct posting with GB01
Interval MenuMaintain
Company Code :
LAP
Enter
Interval Button
Year
From number
To number
2012
0700000000
0799999999
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Enter
Save
7. Creating Profit Centres
Tcode : KE51
SAP Easy AccessAccountingControllingProfitCenterAccountingMasterData
ProfitCenterIndividual
ProcessingCreate
Profit Centre
1001
Enter
Analysis Period
Name
Long text
01.04.2012
:
Hyd plant
Hyd Plant
Person responsible
Mr. T
Profit centre group
STD_HIER
Save
Enter to confirm the message
Activate button
Profit centre
1002
Mum plant
Enter
Name
Long text
Mum plant
Person Responsible
MR. M
Profit Centre group
STD_HIER
Save
Enter
191
Activate
8. Assign Profit Center in CostCenter :

Tcode
KS02
Cost Centre
1001
Enter
Profit Centre
1001
Save
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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
ToolsChange Message control
Application Area
FAGL_ORG_UNITS
Enter
New Entries
MsgNo User Name Online Batchl
011
Save
Continue
9. Create Sales Account As Revenue Element:

Tcode : FS00
Select GL account 300510 (Sales)
Change buttonEdit cost element button
Valid From :
1.4.2012
Enter
Cost Elem category
11
ie Revenue
Save
(Already done in PA)
192
10. Maintain Automatic Account Assignment Revenue element:

SPROControllingProfitCenter Accounting Actual PostingsMaintain 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
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Double click Details per business area/Valuation area

New Entries
ValA
Business Area
Blank
LANZ
Cost Center
Profit Center
1001
Save
1. End User
1. Posting of Salaries
Tcode : F-02
PstKy
40
Account
400500
200792
Enter
Amount
36000
Cost Centre
Text :
1001
Salaries payment
Pst Ky
50
Account
Enter
Amount
Text

Post
2. Posting Sales Invoice
Tcode : F-22
Psky :
01
Account
LAPGNCUST
Enter
193
Amount
Business area
43000
:
LANZ
Text :
Sales invoice
Psky
50
Amount
Text
Account
300510
Enter
Profitability segment button

Profit Center
1001
Enter
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Post
3. Transfer of values from one ProfitCenter To another
ProfitCenter:
Tcode: 9KE0
Up to ProfitCenter Accounting same path
Actual PostingsProfitCenter DocumentEnter
Layout
Document type
8A-001
:
A0
LAP
Execute
Company code
Entry Screen button

Profit center Account number In pctr local curr
1001
400500
-9000
1002
400500
9000
Save
4. Display Profit Centre Report:
Up to Profit Accounting same path
Information systemReports for ProfitCenter AccountingLine item Reports
ProfitCenter :Actual Line items
Tcode : KE5Z
Record type
Co Area
LAP
Company Code :
LAP
Posting Period
Fiscal Year
2012
194
Account
Profit Center
1001
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Execute
195
6. Product Cost Planning

Moving Average Price/Standard price
Moving Average Price
Standard Price
Price is updated on every goods receipt and

invoice reciept.
Price is fixed for at least over a period.

We calculte the std price periodically.
Variance arises rarely (for example GR price is

different and enough stock is not available to
adjust)
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Generally used for RM
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
Time
Stage
New product
proposal / Master
data is not
available
Cost Estimate without

Quantity Structure
Cost Estimate with

Quantity Structure
First Prototype/ Material

master data is available /
PP master data not
available
Production stage /
Complete MM and PP
master data is availble
(Eg : BOM and routing

data not available
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

196
based on the PP quantity Structure .
cost items or by copying from other cost objects.
BOM (Bill of Material provides

planned qty of RM)
Eg: Unit Costing is used for
Routing( Priovides number of Activity

uints required )
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
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
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2. Primary cost component split
197
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
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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
LAPSFG2
Semifinished
product
In-house production/Different plant
Existing costing data

from supplying plant is
to be used
Packing
material
External purchase
LAPPM
(Special Procurement)
Price from material

master
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

198
Packing
External
Price from purchase info record
1. CO Settings
1. Creating Secondary Cost Elements
TCode
KA06
Extras menu Set Controlling area

Controlling Area :
LAP
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Enter
Cost element
1000000001
Valid From :
1.4.2011
to 31.12.9999
Enter
Name
Description
RM OH
:
CostElem Category
RM OH
:
41 (OH rate)
Save
Cost element
1000000002
Valid From :
1.4.2011
to 31.12.9999
Enter
Name
Description
Activity Allocation
:
CostElem Category
Activity Allocation
:
43 (Internal Activity Allocation)
Indicators tab
Record qty
Unit of Measure
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
Cost element
1000000003
Valid From :
1.4.2011
to 31.12.9999
Enter
Name
Description
Prod OH
:
CostElem Category
Prod OH
:
41 (OH rate)
Save
199
2. Creating Activity Types Machine Hour/ Packing/

Asssembling/ Processing
Tcode: KL01
Activity Type
MCH
Valid From :
1.4.2011 to 31.12.9999
Enter
Name
: Machine Hours
:
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Machine Hours
Activity Unit
Srinivasa
Description :
Price indicator
CCtr categories :
ATyp Category

(Manual Entry & Manual Allocation)
Price indicator
1000000002
Save
Activity Type
PCKG
Valid From :
1.4.2011 to 31.12.9999
Master Data button

Name
: Packing
Description :
Packing
Activity Unit
UN Unit
CCtr categories :
ATyp Category

1000000002
Save
Activity Type
ASMB
Valid From :
1.4.2011 to 31.12.9999
Master Data button

Name
: Assembling
Description :
Assembling
Activity Unit
UN Unit
200
CCtr categories :
ATyp Category

Price indicator
1000000002
Save
Activity Type
PRCS
Valid From :
1.4.2011 to 31.12.9999
Master Data button
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Name
: Processing hrs
Description :
Processing hours
Activity Unit
H Hours
CCtr categories :
ATyp Category

Price indicator
1000000002
Save
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
Industry Sector
Material type
ROH Raw Material

Select views Basic data1, Purchasing , General Plant Data / Storage 1 , Accounting 1
Org. Levels button
201
Plant
Stor. location
LAP1
:
LAP1
Enter
Basic Data1 tab:
Material
LAP RM1 (Steel)

Material Group
Division
LS
KG
LAPM
Net Weight :
KG
Gross Weight
KG
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Purchasing Group
Srinivasa
Purchasing Tab
Stor. location
LPG
Accounting 1 tab
Valuation class
LAP1
Price Control
Moving Price
270
Save
2. Creating Material master LAPRM2

TCode : MM01
Material
LAPRM2
Industry Sector
Material type
ROH Raw Material

Select views Basic data1, Purchasing , General Plant Data / Storage 1 , Accounting 1,
Costing1 and Costing2
Org. Levels button
Plant
LAP2
:
LAP2
Enter
Basic Data1 tab:
Material
LAP RM2 (Steel)

Material Group
Division
LS
KG
LAPM
Net Weight :
KG
Gross Weight
KG
Purchasing Tab
202
Purchasing Group
LPG
Accounting 1 tab
Valuation class
LAP1
Price Control
Moving Price
360
Save
3. Creating Purchase Info Record for External activity PCKG
SAP Easy AccessLogisticsMaterail ManagementPurchasingMaster DataInfo
RecordCreate
Vendor
LAPTRVNDR
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Material
Blank
Purchasing Org. :
LAPO
Plant
LAP1
Info Record
Srinivasa
TCode : ME11
Conditions
Info category
Standard`
Enter
Description :
Packing
Material Group
Order Unit
Sort Term
0001
UN
SERVICES
Enter (or Purch .Org Data 1 button)

Control
Pl. Deliv. Time
1 Days
Purch Group
LPG
Standard Qty
Net Price
UN
10 INR / 1 UN
Conditions button
Double click on condition type PB00
Save
203
1. CO Enduser
1. Create Cost Element Group
Tcode :KAH1
Cost element group
RSE
Enter
Description: Rent , Salary , Elect
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RSE
400500
400600
400392
Save
2. Create Activity type Group

TCode :KLH1
CO Area
LAP
Activity Type group
Enter
Description :
Testing
Activity Type button

TSHRA
TSHRM
Save
204
3. CC Planning for CC 1001

Tcode
KP06
Version
From
Period
To
Perod
12
Fiscal Year
2011
Cost centre
1001
Cost element group
Form based
RSE
Srinivasa
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400500
400600
400392
Total
Post
4. Activity planning for MCH

Ouput /PricesChange
Tcode : KP26
Version
From
Period
To
Perod
0
:
12
Fiscal Year
2011
Cost centre
1001
Activity Type
:
MCH
Form based

Activity Type
Plan Activity
MCH
Post
Tcode
KP06
Version
0
205
From
To
Period
Perod
12
Fiscal Year
2011
Cost centre
2001
Cost element group
Form based
RSE

400500
400600
Srinivasa
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400392
Total
Post
6. Activity planning for PRCS

Ouput /PricesChange
Tcode : KP26
Version
From
Period
To
Perod
0
:
12
Fiscal Year
2011
Cost centre
2001
Activity Type
:
PRCS
Form based

Activity Type
Plan Activity
PRCS
Post
Tcode
KP06
Version
From
Period
To
Perod
12
206
Fiscal Year
2011
Cost centre
1002
Cost element
group:
Form based
RSE

400500
400600
400392
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Total
Post
8. Activity planning for ASMB

Ouput /PricesChange
Tcode : KP26
Version
From
Period
To
Perod
0
:
12
Fiscal Year
2011
Cost centre
1002
Activity Type
:
ASMB
Form based

Activity Type
Plan Activity
ASMB
Post
9. Calculating planned Activity Price
Upto Cost Centre Accounting same path
PlanningAllocationsPrice Calculation
Tcode
:
KSPI
All Cost Centres
Version
:
0
From
To
Period
Perod
12
207
Fiscal Year
Test Run
Details List
2011
Execute
Messages button ( Messages button is available only in case of any errors)
Save
Enter
Back button
Srinivasa
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10. Activity planning for PCKG

Ouput /PricesChange
Tcode : KP26
Version
From
Period
To
Perod
0
:
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 AccountingControllingProduct Cost ControllingProduct Cost
Planning Reference and Simulation CostingCreate Base Planning Object
TCode :KKE1
Controlling Area
LAP
Enter
Base Planning Object :
LAPSFG1_BPO
Enter
208
EA
Company Code
LAP
Plant
:
:
Name
LAP1
BPO for LAPSFG1
Save
5. Create single level unit cost estimate for LAPSFG1_BPO
Same path
Change Base Planning Object
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TCode : KKE2
LAPSFG1_BPO
Enter
Create Cost Estimate button
Costing Variant :
Lot Size
PG
1 EA
Enter
Item Category Resource Pant/Activity Quantity Description CostElement Formula
1
LAPRM1
LAP1
400599
1001
MCH
1000000002
Mat OH
Save
Save
6. Creating a Base Planning Object LAPSFG2_BPO in plant
LAP2
Planning Reference and Simulation CostingCreate Base Planning Object
TCode :KKE1
Controlling Area
LAP
Enter
LAPSFG2_BPO
209
=(('1')*5)/100
Enter
EA
Company Code
LAP
Plant
:
:
Name
LAP2
BPO for LAPSFG2
Save
7. Create single level unit cost estimate for LAPSFG2_BPO
Same path
Srinivasa
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Change Base Planning Object

TCode : KKE2
LAPSFG2_BPO
Enter
Create Cost Estimate button
Costing Variant :
Lot Size
PG
1 EA
Copy from
Base Object
LAPSFG1_BPO
Enter
1
LAPRM2
LAP2
400599
2001
PRCS
1000000002
Mat OH
Save
Save
8. Create multilevel unit cost estimate

The component materials are given in the following table.
210
=(('1')*5)/100
Activity
Internal or
external ?
Valuation
Machine
hour
Internal

cost centers
Packing
External
Material
BOM
LAPSFG1
LAPFG1
LAPSFG2
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LAPPM
LAPSFG1 LAPRM1
LAPSFG2 LAPRM2
Same path
Edit Base Planning Object-Multievel
TCode: CKUC
Right Click on the Costing StructureCreate Base Planning Object
LAPFG1_BPO
Enter
EA
Company Code
LAP
Plant
:
:
Name
LAP1
BPO for LAPFG1
Srinivasa
Save
Costing Variant :
Lot Size
PG
1 EA
Enter
Now we are creating a worklist in which we include the items that are used in the multilevel
cost estimate.
Worklist On button
211
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
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Execute button
Select the two Base Planning Objects
Enter
Right click on worklist LAPFG1 Select Internal Activity
Controlling Area : LAP
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
LAPSFG1_BP0
400599
LAPSFG2_BP0
1000000002
1002
ASMB
250(Pur Info
Rec)
LAP1
1000000002
LAPO
212
Packing
1000000002
Enter
Select the 4 items
Keep the curser in 5th line
Insert total(
) button
Save
Yes button
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While in the same screen
Srinivasa
9. Exploding a material cost estimate/Base Planning Object
Enter
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

Controlling Area :
LAP
Cost center:
1005
Valid From :
1.4.2011 to
31.12.9999
Enter
Name
OH CC
Description
OH CC
Person Responsible
Mr. A
9
Hierarchy Area
STD_HIER
Business Area
LANZ
(Allocation Cost Centre)
213
Currency
INR
Save
2. Define OH keys
SPROControllingProduct Cost ControllingProduct Cost PlanningBasic Settings for
Material CostingOverheadDefine Overhead Keys
New Entries
Over Head Key Description
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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:ComponentsDefine Calculation Bases
New Entries
Base Name
K1
RM cost
K2
Prod cost
Enter
Select Base K1
Controlling Area :
LAP
Enter
New Entries
From Cost element
400599
214
Save
Continue
Double click on Calculation base folder
Select Base K2
Controlling Area :
LAP
Enter
New Entries
From Cost element
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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
LAP1
1.4.2011
31.12.9999 LAP
LAP1
Save
Continue
Double click on Prcentage overhead folder
Select OH rate LAP4
New Entries
Valid from
To
CO area OH Type
1.4.2011
31.12.9999 LAP
Plant Percentage
LAP1 5
215
1.4.2011
31.12.9999 LAP
LAP1 5
1.4.2011
31.12.9999 LAP
LAP2 5
1.4.2011
31.12.9999 LAP
LAP2 5
Save
6. Define Credits
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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
Controlling Area :
LAP
Enter
New entries
Valid To
Cost element Fixed % Cost centre
31.3.9999 1000000001
100
1005
Save
Continue
Srinivasa
Double click on Credit folder

Select Credit K6
Controlling Area :
LAP
Enter
New entries
Valid To
Cost element Fixed % Cost centre
31.3.9999 1000000003
100
1005
Save
Continue
216
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
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New Entries
Row Base O/H Rate Description From To Row
10
K1
20
30
RM
K3
RM OH
K2
40
Credit
10
10
K5
Prod OH
30
30
K6
COGM
10
40
Prod
K4
50
Save
Continue
8. Define Costing Variant

Same path upto Product Cost Planning
Material Cost Estimate With Quantity StructureDefine Costing Varaint
Select Costing Variant PPC1
Copy as button
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
217
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
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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 CostingDefine 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
Save
Srinivasa
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
218
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)
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New Entries
L1
LACA
From Cost Comp

050

Select Cost Component structure L1 with Cost Component 80 (Materials OH)
New Entries
L1
LACA
From Cost Comp

080

Select Cost Component structure L1 with Cost Component 70
New Entries
L1
LACA
From Cost Comp

070
Save
Continue
Double Click on Cost Components Structure folder
Double click on Assignment:Organiz.Units-Cost Component Struct folder
New Entries
219
Company
Code
Plant Costing
Variant
LAP
++++
Valid from Cost Comp Structure(Main

CCS)
++++
L1
Save
Double Click on Cost Components Structure folder
Cost Comp Struct Active Prim Cost Comp Split Name
L1
L2
LAP COGM Cost comp str
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Save
10. Check/Change price calculation settings in Version

(Already done in Cost Center Accounting)
TCode: OKEQ
Select Version 0 ie Plan/actual version
Controlling Area :
Version
Enter
Double click on top row
Price calculation tab
Plan
Method
Periodic price
Periodic price
Actual
Methods
Revaluation
Cost Comp. Str. :
Srinivasa
LAP
Own business transaction

L2 LAP Actvity Cost Comp Str
Back button repeat the procedure for all rows(ie for all years)
Save
Continue
220
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Srinivasa
2. MM Enduser
1. Creating Material master LAPFG1
Tcode : MM01
Material
LAPFG1
Industry Sector
Material Type
Finished products

Sales: General/Plant Data , MRP 1 , Accounting 1 , Costing1 and Costing2
Org. Levels button
Plant :
LAP1
Stor. Location
LAP1
Sales Org.
LANS
Distr. Channel
LD
Enter
Description
: LAP FG1
221

Material Group
Division
LS
GenItemCatGroup
EA
LAPM
:
NORM

Delivering plant :
LAP1
Tax Data
Tax Classification:
1 for UTXJ
1 for MWST

03
ie Finished Goods
NORM
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Item category group
Srinivasa
Acct assignment grp
Industry Sector
Material Type
Semi-finished products

Gross Weight
Net Weight
Trans. Grp
0003
Loading Grp
0003
ND
Valuation class
LAP3
Price control
Standard price
50000
ie Manual
MRP 1 Tab
MRP type
ie No plan
Accounting 1 tab
(Finished Product)
(std. price)
Save
2. Creating Material master LAPSFG1

Tcode : MM01
Material
LAPSFG1

Select Basic Data1, General Plant Data /Storage 1 ,Accounting 1 , Costing1 and
Costing2
Org. Levels button
Plant :
LAP1
Stor. Location
LAP1
Enter
Description
: LAP SFG1
222

Material Group
Division
LS
EA
LAPM
GenItemCatGroup
NORM
Gross Weight
1 KG
Net Weight
Valuation class
LAP2
Price control
Standard price
3000
Accounting 1 tab
(Semi -finished products)
(std. price)
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Save

Tcode : MM01
Material
LAPSFG2
Industry Sector
Material Type

Select Basic Data1, General Plant Data /Storage 1 , Accounting 1 , Costing1 and
Costing2
Org. Levels button
Plant :
LAP1
Stor. Location
LAP1
Enter
Description
: LAP SFG2

Material Group
Division
LS
EA
LAPM
GenItemCatGroup
Gross Weight
1 KG
Net Weight
Valuation class
LAP2
Price control
Standard price
6000
NORM
Accounting 1 tab
(std. price)
Save
223

Tcode : MM01
Material
LAPSFG2
Industry Sector
Material Type

Select General Plant Data /Storage 1 , MRP1 ,MRP2 ,Accounting 1 , Costing1 and
Costing2,
Org. Levels button
Plant :
LAP2
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Stor. Location
LAP2
Valuation class
LAP2
Price control
Standard price
6000
Enter
Accounting 1 tab
(std. price)
Save
5. Creating Purchase Info Record LAPRM1 / two vendors

We are creating pur info record for two vendors with different price
SAP Easy AccessLogisticsMaterail ManagementPurchasingMaster DataInfo

RecordCreate
TCode : ME11
Vendor
LAPRMVNDR
Material
LAPRM1
Purchasing Org. :
LAPO
Plant
LAP1
Info Record
Info category
Standard`
Enter
Purch.Org.Data 1 button
Control
Pl. Deliv. Time
1 Days
Purch. Group
LPG
Standard Qty
10
KG
Conditions
224
Net Price
INR / 1 KG
Conditions button
Save
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TCode : ME11
Vendor
LAPTRVNDR
Material
LAPRM1
Purchasing Org. :
LAPO
Plant
LAP1
Info Record
Info category
Standard`
Enter
Purch.Org.Data 1 button
Control
Pl. Deliv. Time
1 Days
Purch. Group
LPG
Standard Qty
10
KG
Conditions
Net Price
INR / 1 KG
Conditions button
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 CostingCost Estimate Without Quantity StructureCreate
TCode: KKPAN
225
Material
LAPSFG1
Plant
LAP1
Costing Data Tab

Costing Variant
LAP1
Costing Version :
Standard Cost Est. (Mat.)
Dates Tab
Default Values button
Srinivasa
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(Date Fields filled automatically)

Enter
Enter the data as shown in the table
1
LAPRM1
LAP1
1001
MCH
Mat OH
1000000001
Enter ( if any warning messages)

Save
Save
2. Multilevel Cost Estimate for LAPFG1
Planning Material CostingCost Estimate Without Quantity StructureEdit Multilevel
TCode: CKUC
Right Click on the Costing StructureCreate Material Cost Estimate
Material
Plant
LAPFG1
:
LAP1
Costing Variant :
LAP1
Costing Version
Costing Data tab
Dates tab
226
=(('1')*5)/100
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
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Enter
Right click on worklist LAPFG1 Select Material Cost Estimate
Material Number :
Plant :
Blank
LAP1
Std cost est
Future
Current
Previous
Execute button
Select the LAPSFG1
Enter
Right click on worklist LAPFG1 Select Internal Activity
Controlling Area : LAP
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 StructureCreate Material Cost Estimate
Material
Plant
LAPSFG2
:
LAP2
Costing Data tab

227
Costing Variant :
LAP1
Costing Version
Dates tab
Enter
Change the quantity as shown in the table below
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Item Category Resource Pant/Activity Quantity Description CostElement

1
LAPRM2
LAP2
2001
PRCS
Formula
400599
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
LAPSFG1
LAP1
LAPSFG2
LAP2
1002
ASMB
250(Pur info
rec)
LAP1
400599
LAPO
Save
Yes button
Functions menuExplode Material Cost Estimates
All Levels
Material :
Quantity Description CostElement
LAPFG1
228
1000000002
Enter
Material Number :
Plant :
LAPFG1
blank
Execute
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Double click on material LAPFG1
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
LAPSFG1
Semifinished
product
In-house production in the same

plant with two production versions
To be costed
LAPSFG2
Semifinished
product
In-house production/Different plant
Existing costing data

from supplying plant is
to be used
Packing
material
External purchase
LAPPM
(Special Procurement)
Price from material

master
The activity details are given in the following table

Activity
Internal or
external ?
Valuation
Machine
hour
Internal

cost centers
229
Assembling
Internal
Processing
Internal
Packing
External
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 done.
The cost estimate is a mixed cost estimate because one of the component has procurement
alternatives.
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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
SPROProductionMaterial Requirement Planning Master DataDefine 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
PlanningScheduling And Capacity parametersDefine 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
230
3. Define Production Scheduler

Upto Production Same path
Shop Floor ControlMaster DataDefine Production scheduler
New Entries
Plant ProdSched
LAP1 MrS
LAP2 Mrx
Save
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4. Determine Person Responsible for WorkCenter

SPROProductionBasic DataWork CentreGeneral DataDetermine 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
231
Origin
Parameter text
Packing
Keyword
Packing
Dimension
AAAADL
Standard Value
: 1
Standard value unit
: UN
Enter
Save
Select parameter SAP_02 ie Machine
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Copy as button
Parameter
LAP_16
Origin
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
th
4 Parameter : LAP_14
Srinivasa
5th Parameter : LAP_15

6th Parameter : LAP_16
Enter
Save
7. Check Formulas for Costing

SPROControllingProduct Cost Controlling Product Cost Planning Material Cost
Estimate with Quantity StructureSettings for Quantity Structure ControlRouting
Selection Check Formulas for Costing
232
New Entries
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
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Work Center for Capacity Reqmts

Save
Next Entry button(
Formula key
LAP_15 Packing
Formula
LAP_15 * SAP_09 / SAP_08 / SAP_11
Indicators
Generate

Save
Next Entry button(
Formula key
LAP_16 Processing
Formula
LAP_16 * SAP_09 / SAP_08 / SAP_11
Indicators
Generate


233
Save
3. PP Enduser
1. Creating BOM for LAPSFG1
SAP Easy Access LogisticsProductionMaster Data Bills of Material Bill of Material
Material BOMCreate
Tcode
CS01
Material
LAPSFG1
Plant
LAP1
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BOM usage
(Costing)
Enter
Component Quantity
LAPRM1
Enter
Save
2. Creating BOM for LAPSFG2 in plant LAP2

Material BOMCreate
Tcode
CS01
Material
LAPSFG2
Plant
LAP2
BOM usage
(Costing)
Enter
Component Quantity
LAPRM2
Srinivasa
Enter
Save
3. Creating BOM for LAPFG1
Material BOMCreate
Tcode
CS01
Material
LAPFG1
Plant
LAP1
BOM usage
(Costing)
Enter
234
ICt Component Quantity

N
LAPSFG1
LAPSFG2
Enter
Save
4. Material BOM Browser

Same path upto Material BOM
Srinivasa
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MultilevelMaterial BOM Browser

TCode
CSMB
Material
LAPFG1
Plant
LAP1
Alternative :
Application
: PC01
Enter
Goto menuExplode Material BOMMulti-level
Execute
5. Creating Work Center
Same path upto MasterData
WorkCentresWorkCentreCreate
Tcode
Plant :
LAP1
WorkCentre
CR01
:
WorkCentre Cat. :
1001
Machining
0001 Machine
Enter
Description :
Machining
Person Responsible
Usage
009
Standard Value Key
MRW
(All task list types)
LAP1
(Normal Production)
Activity Type
Activity Unit Formula
MCH
Enter
Costing Tab
Cost Centre
Alt Activity Descr
1001
No Activity
Machine
SAP002
235
No Activity
No Activity
No Activity
No Activity
Save
Tcode
Plant :
LAP2
WorkCentre
CR01
:
1002
WorkCentre Cat. :
Processing
0001 Machine
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Enter
Description :
Processing
Person Responsible
Usage
009
Standard Value Key
MRX

LAP1
(Normal Production)
Activity Type
PRCS
Costing Tab
Cost Centre
Alt Activity Descr
2001
No Activity
No Activity
No Activity
No Activity
No Activity
Processing
LAP_16
Save
Tcode
Plant :
LAP1
WorkCentre
CR01
:
WorkCentre Cat. :
1003
Assembling
0001 Machine
Enter
Description :
Assembling
Person Responsible
Usage
009
Standard Value Key
MRW
LAP1
Costing Tab
Cost Centre
1002
236
Alt Activity Descr
Activity Type
Asemmbling
ASMB
UN
LAP_14
Packing
PCKG
UN
LAP_15
No Activity
No Activity
No Activity
No Activity
Save
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8. Creating Routing for LAPSFG1

Upto Master Data same path
RoutingsRoutingsStandard RoutingsCreate
Tcode
CA01
Material
LAPSFG1
Plant
LAP1
Operations button
New entries button(
Usage
1 (Production)
Status
4 (Released general )
Planning Work Centre
1001
Save
Operations button
Operation WorkCentre
Plant Control Key
0010
LAP1 PP01
1001
Double Click on Operation 0010

Std Value
Srinivasa
Machine
Un Act. Type
H
MCH
Save
9. Creating Routing for LAPSFG2
Tcode
CA01
Material
LAPSFG2
Plant
LAP2
Operations button
237
New entries button(
Usage
1 (Production)
Status
1002
Save
Operations button
Plant Control Key
0010
LAP2 PP01
1002
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Std Value
Un Act. Type
Processing
PRCS
Save
10. Creating Routing for LAPFG1
Tcode
CA01
Material
LAPFG1
Plant
LAP1
Operations button
New Entries button(
Usage
1 (Production)
Status
1003
Save
Srinivasa
Operations button
Plant Control Key Units of Measure
0010
1003
LAP1 PP01
0020
1003
LAP1 PP02
UN

Std Value
Assembling
Un
Act. Type
UN ASMB
Back button
238

Std Value
Packing
Un
Act. Type
UN PCKG
External processing
(Scroll down)
Purchasing Info Rec.
Cost Element
250
Purch. Organization
LAPO
1000000002
Enter
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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 COarea). 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.
SPROControllingProduct Cost ControllingProduct Cost PlanningMaterial Cost
Estimate with Quantity StructureCosting Variant ComponentsDefine Transfer Control
Select PC01 Transfer w. Plant Change
Copy As button
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
239
Enter
Save
2. Assigning Transfer Control in Costing variant

Same path upto Material Cost Estimate with Quantity Structure
Define Costing Variants
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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
SPROControllingProduct Cost ControllingProduct Cost PlanningMaterial Cost
Estimate with Quantity StructureSettingsfor Quantity Structure ControlMaterial
DataCheck Special Procurement Types
New Entries
Plant
LAP1
Sp.Pr.Type
81 Stock transfer (proc.from plant LAP2)
Procurement type
In-house production
Srinivasa
Special Procurement
Special procurement :P
Plant
Prod. other plant
LAP2
Direct production
Save
4. Update Additive Costs

TCode : OKTZ
240
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
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New Entries
Cost Comp .Str Cost Component Chart of Accts
Cost Element
L1
1000000002
50
LACA
Save
Double click on Cost Component Structure folder
Cost Comp Str Active
L1
Save
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
SPROControllingProduct Cost ControllingProduct Cost PlanningBasic Settings for
Material CostingCheck Settings
TCode : CKC1
Costing Variant
Company Code
Plant
GAC1
:
LAP
: LAP1
Date
Version
:
:
Blank
Execute
(Scroll down to see all the settings that are applied)
5. MM Enduser
241
1. Enter Spl Proc type in Mat master LAPSFG2 in plant

LAP1
TCode : MM01
Material
LAPSFG2
Enter
Select Costing 1 MRP2 and MRP1views
Enter
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Plant
LAP1
Enter
MRP2 tab
Procurement type : E
Special procurement
81
Costing 1 tab
Quantity structure data
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
242
TCode : MM01
Material
LAPRM2
Enter
Select Costing 1 view
Enter
Plant
LAP2
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Enter
Costing 1 tab
Overhead Group :
LAPOHG
Save
6. CO Enduser
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
Production
We can produce in house in the same plant
Vendor X
Vendor Y
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
Stock
transfer*
We can purchase a RM in to one plant and tranfered to

other plant.
From Plant1
Prod in PlantY
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 .
243
SAP Easy AccessControlling Product Cost Controlling Product Cost Planning

Material Costing Master Data for Mixed Cost Estimate Edit Procurement Alternatives.
TCode : CK91N
Material
LAPRM1
Plant
LAP1
Purchase order
Create button
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Process Cat.
Purchasing Org. :
LAPO
Vendor
LAPRMVNDR
Cstg Lot Size
Purchase order
Confirm button
Create button
Process Cat.
Purchasing Org. :
LAPO
Vendor
LAPTRVNDR
Cstg Lot Size
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
Plant
LAPRM1
:
LAP1
Mixing Ratio
Period
Fiscal Yr
2015
QtyStruct. Type :
MIX
Enter
244
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.
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Planning Material Costing Cost Estimate with Quantity StructureAdditive
CostsCreate
TCode :CK74N
Material
Plant
LAPFG1
:
LAP1
Costing Variant :
LAP1
Costing Version
Costing Data tab
Dates tab
Enter
Item
Category
Resource
Pant/Activity
2001
PRCS
Quantity
Description
CostElement
Formula
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
Edit costing Run

Tcode : CK40N
245
Tcode : CK11N
Step 2. Price Update
Tcode : CK24
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 CostingCosting RunEdit Costing Run
Tcode
CK40N
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Create Costing Run button

Costing Run
Description :
LAP Costing Run
Costing Run Date
Costing Variant :
LAP1
Costing Version :
01
Controlling Area :
LAP
Company Code :
LAP
Todays date
Enter
Dates tab
Costing Date From
Todays date
Costing Date
31.9.2011 (Month End date)
To
Quantity Structure Date

Valuation Date
Todays Date
Todays Date
Save
Expand Processing
Change Parameter button(
Material Number
Srinivasa
LAP
Plant :
) In the Selection
Flowstep
LAPSFG1 , LAPSFG2, LAPFG1,
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
246
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
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Execute button in the Costing Flowstep

(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 )
247
Kasireddy +91-9959765211
Srinivasa
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 EnvironmentCosting RunDelete Costing Run
TCode : CK44
Costing Run
Costing Run Date
LAP
:
248
Execute
Delete
Note: Please check the period closed for the company code using TCode MMPV/MMRV
before marking/releasing.
Lock button for Marking Flowstep
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Double Click on Company code LAP

Costing Variant :
PPC1
Costing Version :
01
Issue Allowance for Marking button
( =Save button)
Back button
Change Parameter button In the Marking
Test Run
With List Output
Flowstep
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
Test Run
With List Output
Save
249
Flowstep
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
Make note of change in Current Planned Price and Standard Price
Marking : Marking updates the future price
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.
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Costing 2 tab
250

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Trainer & Author:

File Name : 335926579.doc

Copy comp code....................................................................................... 19

Maintain Controlling Area............................................................................. 19

Cost Centre Standard Hierarchy...................................................................22

Cost Centre Accounting................................................................................. 24

Maintain Number Ranges for Controlling Document........................................25

Creation of Primary Cost Element.................................................................26

Display Cost Elements................................................................................ 28

Creation of FSG (Cost Centre required).........................................................28

Assign New FSG in Expenses G/L Account....................................................28

Creation of Cost Centre............................................................................... 29

Posting of transaction in FI...........................................................................31

Repost CO Line item................................................................................... 34

Display Cost Center Report.........................................................................35

Creating Common Cost center.....................................................................35

Posting to Common Cost center...................................................................36

Display Cost Center Report.........................................................................37

Planning Cost Centre wise........................................................................38

Display Variance report............................................................................ 40

Cost Center relatioships:............................................................................. 42

Periodic Reposting :.................................................................................... 42

Indirect activity allocation:............................................................................ 43

Direct activity allocation:.............................................................................. 43

Allocation by Assessment using SKF.............................................................45

Create Cost Centre..................................................................................... 46

Create No. Ranges interval for Business transaction RKS RKIU........................46

Allocation method (Assessment Method):......................................................47

Creation of secondary cost element..............................................................47

Creation of Assessment Cycle......................................................................47

Posting of Rent & Salary in CC 1004............................................................50

Execution of Assessment cycle (Month end activity)........................................50

Cost Centre Report..................................................................................... 51

Create Cost Centre..................................................................................... 52

Create GL account/cost element Vehicle maintenance.....................................53

Create No. Ranges interval for Business transaction RKIV..............................53

Create SKF (already done)..........................................................................53

Enter SKF ((already done))..........................................................................54

Allocation method (Distribution):...................................................................54

Creation of Distribution Cycle.......................................................................54

Posting of Rent , Salary ,Veh maintanance in CC 1011...................................57

Execution of Distribution cycle (Month end)..................................................57

Cost Centre Report..................................................................................... 58

Allocation by Periodic Reposting....................................................................59

Create Cost Centre..................................................................................... 59

Create GLa/c & cost element Elec Charges....................................................60

Create No. Ranges interval for Business transaction RKIB..............................60

Allocation method (Periodic Reposting):.........................................................60

Creation of Periodic Reposting cycle.............................................................60

Posting of Rent , Elc bills , in CC 1006..........................................................62

Enter SKF (Month end)............................................................................... 62

Execution of Periodic reposting cycle (month end).........................................63

Cost Centre Report.................................................................................. 63

Indirect Activity Allocation using SKF..........................................................64

Create Cost Centre..................................................................................... 66

Creation of secondary cost element..............................................................67

Creating Activity Type Testing hours-Manual...................................................67

Creation of secondary cost element..............................................................68

Creating Activity Type Testing hours-Automated..............................................68

Creating Cost Element Group.......................................................................69

Creating Activity Type Group.......................................................................70

Define Splitting Structure..........................................................................70