co-design.xlsx

General Controlling

Cost Element Accounting

Cost Center Accounting

Internal Orders

Activity-Based Costing

Product Cost Controlling

Profitability Analysis

Profit Center Accounting

General Controlling

Organization

Maintain Controlling Area

Maintain Number Ranges for Controlling Documents

Maintain Versions

Prepare Application Components

Maintain Authorizations and Profiles

Change Message Control

Account Assignment Logic

Define Validation

Define Substitution

Document Summarization for External Accounting Documents

Include Characteristics in CO Totals Records

Request for Adjustment Posting

Activate Test Scenario for Request for Adjustment Posting

Define Scenarios for Request for Adjustment Posting

Assign Own Scenarios for Request for Adjustment Posting

Assign Adjustment Postings to Scenarios

Multiple Valuation Approaches/Transfer Prices

Basic Settings

Maintain Currency and Valuation Profile

Assign Currency and Valuation Profile to Controlling Area

Maintain Descriptions for Valuation Bases

Create Versions for Valuation Methods

Check Material Ledger Settings

Activate Valuation Areas for Material Ledger

Assign Currency Types to Material Ledger Type

Assign Material Ledger Types to Valuation Area

Level of Detail

Define Valuation Clearing Account

Deactivate Conversion of Selected Condition Types

Activation

Set Up Transfer Prices in a Production System

Multiple Valuation Approaches: Check/Execute Activation

Multiple Valuation Approaches: Check/Execute Deactivation

Production Start-Up Preparation

Transport System Settings

Transport Settings for Organization

Transport Settings for Master Data

Transport Settings for Planning

Import Standard Planning Layouts

Transport Planning Layouts

Transport Other Planning Settings

Import Standard Settings for Resource Planning

Transport Template Settings

Transport Settings for Actual Postings

Transport Settings for Account Assign. Logic/Summarization

Transport Settings for Activity-Based Costing

Delete Test Data

Delete Transaction Data

Delete Cost Elements

Delete Cost Centers

Delete Activity Types

Delete Orders

Delete Cost Objects

Delete Base Planning Objects

Set "Update All Currencies" Indicator

Follow-Up Posting

Post Follow-Up from Financial Accounting Documents

Post Follow-Up from Materials Management Documents

Post Follow-Up from Sales and Distribution Documents

Post Follow-Up to Down Payments

Maintain Down Payment Updates in Controlling

Post Follow-Up to Down Payments

Follow-Up Posting to Reconciliation Ledger

Activate Change Documents for Groups

Integration with Shared Services Framework

How Shared Services Framework Integration Works

BadI: Enhance Source Fields

BAdIs Specific to Controlling Transactions

BAdI: Application Context for Cost Element

BAdI: Application Context for Cost Center

BAdI: Application Context for Internal Order

BAdI: Application Context for Profit Center

BAdI: Application Context for Manual Repostings and Direct Activity Alloc.

BAdI: Appl. Context for Correction of Line Items and of Dir.Activity Alloc.

BAdI: Application Context for Work in Process and Results Analysis

BAdI: Application Context for Cost Estimate

BAdI: Application Context for Costing Run

Archiving

Prepare Archiving of Controlling Line Items

Cost Element Accounting

Requirements

Master Data

Cost Elements

Automatic Creation of Primary and Secondary Cost Elements

Make Default Settings

Create Batch Input Session

Execute Batch Input Session

Create Cost Elements

Create Selection Variants for Cost Elements

Create Cost Element Groups

Define Cost Element Attributes

Define Cost Element Attribute Mix

Define Search Helps for Cost Elements

Determine Time-Based Fields for Cost Elements

Develop Enhancements for Cost Element Master Data

Accrual Calculation

Requirements for Accrual Calculation

Specify Method

Create Accrual Cost Elements

Percentage Method

Maintain Overhead Structure

Reconciliation Ledger

Activate/Deactivate Reconciliation Ledger

Define Adjustment Accounts for Reconciliation Posting

Specify Document Number Range for Reconciliation Posting

Define Rules for Selection of Reconciliation Postings

Information System

Define Cost Element Groups

Create Selection Variants for Cost Elements

Standard Reports

Import Standard Reports

Specify Report Languages

Generate Standard Reports

User-Defined Reports


Define Libraries

Import Templates

Create Reports

Generate Reports

User Settings

Specify User Settings

Determine Settings for Extract Management

Archiving

Define Report Groups and Read Programs

Define Authorizations and Profiles

Cost Center Accounting

Requirements

Activate Cost Center Accounting in Controlling Area

Enterprise Organization

Set Active Plan Version

Enter Settings for Enterprise Organization

Create Enterprise Organization

Generate Enterprise Organization from Standard Hierarchy

Generate Standard or Alternative Hierarchy from Enterprise Organization

Activate Inactive Master Data

Delete Inactive Master Data

Master Data

Cost Centers

Activity Types

Statistical Key Figures

Resources

Planning

Basic Settings for Planning

Group Maintenance

Manual Planning

Resource Planning

Formula Planning

Planning Aids

Plan Data Transfer

Data Transfer from External Systems

Allocations

Budget Management

Define Budget Planning Profiles

Commitments and Funds Commitments

Activate Commitments Management

Define Document Types for Funds Commitment

Define Number Ranges for Funds Commitment

Field Control for Funds Commitment

Actual Postings

Manual Actual Postings

Actual Data Transfer


Period-End Closing

Variances

Information System

Group Maintenance

Define Selection Variants

Standard Reports


User Settings

Maintain Summarization

Authorization Management

Define Authorizations and Profiles

Develop Authorization Enhancements for Periodic Reposting and Allocations

Internal Orders

Requirements

Activate Order Management in Controlling Area

Order Master Data

Define Order Types

Maintain Number Ranges for Orders

Status Management

Screen Layout

Selection and Collective Processing

Prepare for Order Printing

Develop Enhancements for Order Master Data

Transfer Old Data and External Data

Request to Change Master Data for Internal Orders

Planning

Basic Settings

Maintain Statistical Key Figures

Group Maintenance

Manual Planning

Easy Cost Planning and Execution Services

Resource Planning

Define Periodic Repostings

Define Plan Overhead Rates

Template

Maintain Settlement

Data Transfer

Budgeting and Availability Control

Maintain Budget Profile

Maintain Number Ranges for Budgeting

Define Tolerance Limits for Availability Control

Specify Exempt Cost Elements from Availability Control

Set up Availability Control Again

Maintain Budget Manager

Application for Budget Increase in Intranet

Commitments and Funds Commitments

Activate Commitments Management

Funds Commitment

Actual Postings

Assign Actual Business Transactions to Number Ranges

Maintain Automatic Account Assignment

Define Default Cost Elements for Down Payments


Define Own Screen Variants for Postings in Controlling

Define Periodic Repostings

Overhead Rates

Template Allocation

Interest Calculation

Settlement

Data Transfer

Information System

Group Maintenance

Standard Reports

Define Selection Variants for Order Reports


User Settings

Summarization

Maintain Authorizations

Activity-Based Costing

Requirements

Activate Activity-Based Costing in Controlling Area

Maintain Standard Hierarchy for Controlling Area

Master Data

Business Processes

Maintain Standard Hierarchy of Business Processes

Define Attributes

Maintain Business Process Groups

Define Selection Variants for Business Processes

Define List Variants for Group Processing

Maintain Business Processes

Activate Inactive Business Processes

Delete Inactive Business Processes

Determine Time-Based Fields for Business Processes

Define Search Aids for Business Processes

Create Extensions for Business Process Master Data



Maintain Statistical Key Figure Groups

Templates

Define Environments and Function Trees

Maintain Templates

Assign Templates for Cost Objects and Costing

Assign Templates for Profitability Segments

Assign Templates for Business Processes

Assign Templates for Cost Centers

Planning

Maintain Versions

Group Maintenance



Manual Planning

User-Defined Planning Layouts

Maintain Planning Layouts for Business Processes - Cost Planning

Maintain Planning Layouts for Business Processes - Quantities/Prices

Maintain Planning Layouts for Business Processes - Statistical Key Figures

Maintain User-Defined Planner Profiles

Maintain User-Defined Distribution Keys

Plan Data Transfer

Transfer Scheduled Activities from PP

Statistical Key Figure Transfer From LIS

Maintain Statistical Key Figures (Link to LIS)

Maintain Assignments of Business Processes to Statistical Key Figures


Allocations

Distribution

Specify Receiver Types for Distribution

Define Distribution

Assessment

Determine Assessment Receiver Category (Business Processes)

Create Assessment Cost Elements

Maintain Allocation Structures

Maintain Process Assessment

Indirect Activity Allocation

Determine Sender/Receiver Categories for Indirect Activity Allocation

Maintain Indirect Activity Allocation

Price Calculation

Change Basic Settings for Price Calculation

Settings for Cost Component Split

Define Cost Component Structure

Define Switching Structure

Actual Postings

Manual Actual Postings

Define Own Screen Variants for Postings in Controlling


Statistical Key Figure Transfer From LIS

Maintain Statistical Key Figures (Link to LIS)

Maintain Assignments of Business Processes to Statistical Key Figures


Period-End Closing

Distribution

Specify Receiver Types for Distribution

Define Distribution

Assessment

Determine Assessment Receiver Category (Business Processes)

Create Assessment Cost Elements

Maintain Allocation Structures

Maintain Process Assessment

Indirect Activity Allocation

Determine Send/Recv Categories for Indirect Acty Allocation

Maintain Indirect Activity Allocation

Price Calculation

Change Basic Settings for Price Calculation

Settings for Cost Component Split


Define Switching Structure

Variances

Check Units of Measure in Cost Element Master Data

Define Variance Variants

Define Cost Element Groups

Define Target Cost Versions

Information System

Group Maintenance



Define Selection Variants for Business Processes

Standard Reports

Import Standard Reports


Generate Standard Reports

Enhancements for Line Item Reports

Custom Reports


Maintain Libraries

Import Templates

Create Reports

Generate Reports

Maintain Report Tree

User Settings

Specify User Settings

Determine Settings for Extract Management

Maintain Summarization


Maintain Authorizations and Profiles

Program Enhancements for Periodic Allocation Authorizations

Product Cost Controlling

Product Cost Planning

Basic Settings for Material Costing

Define Origin Groups

Overhead

Maintain Overhead Cost Elements

Define Costing Sheets

Costing Sheet: Components

Define Calculation Bases

Define Percentage Overhead Rates

Define Quantity-Based Overhead Rates

Define Credits

Develop Enhancements for Overhead Calculation

Define Overhead Keys

Define Overhead Groups

Templates


Maintain Templates

Assign Templates


Check Settings

Error Management

Assign Messages

Define User-Defined Message Types

Define Message Control

Define Error Search

Material Cost Estimate with Quantity Structure

Define Costing Variants

Costing Variant: Components

Define Costing Types

Define Valuation Variants

Define Date Control

Define Quantity Structure Control

Define Transfer Control

Define Reference Variants

Settings for Quantity Structure Control

Material Data

Check Attributes of Material Types

Check Material Status

Check Special Procurement Types

BOM Selection

Check BOM Application

Check BOM Selection

Check Alternative Selection for Multiple BOM

Routing Selection

Check Automatic Routing Selection

Check Settings for Generated Operations

Check Control Keys for Operations

Check Formulas for Costing

Check Settings for Formulas

Material Cost Estimate Without Quantity Structure


Costing Variant: Components



Define Date Control

Define Transfer Control

Define Reference Variants

Price Update

Parameters for Standard Cost Estimate

Define Message Types for Standard Cost Estimate


Parameters for Inventory Cost Estimate

Define Relevancy to Costing

Define Price Factors

Selected Functions in Material Costing

Activate Cross-Company Costing

Activate Cost Component Split in Controlling Area Currency

Define Costing Versions

Define Partner Versions

Raw Material Cost Estimate

Assign Condition Types to Origin Groups

Mixed Costing

Define Quantity Structure Types

Define Costing Versions

Costing in Joint Production

Define Source Structure

Production Lot Costing (Seiban)




Develop Enhancements for Material Costing

Develop Enhancements for Unit Costing

Business Add-In for User-Defined Messages

Business Add-In for Selection List

Reference and Simulation Costing

Basic Settings for Reference and Simulation Costing

Overhead







Define Credits




Process Costs


Maintain Templates

Assign Templates

Error Management


Create Base Object Groups

Costing Variants and Their Components




Develop Enhancements for Unit Costing

Ad Hoc Cost Estimate

Information for Characteristic Customizing



Aggregated Items

Define Formula Element

Define Pricing Key

Cost Object Controlling

Product Cost by Period

Basic Settings for Product Cost by Period


Overhead







Define Credits



Define Overhead Groups

Templates

Maintain Environments and Function Trees

Maintain Templates

Assign Templates to Cost Objects

Product Cost Collectors

Check Costing Variants for Product Cost Collectors

Check Valuation Variants for Product Cost Collectors

Check Order Types

Define Cost-Accounting-Relevant Default Values for Order Types and Plants

User-Defined Error Management

Specify User-Def. Msg Types for Preliminary Cstg of Product Cost Collectors

Assign Messages to a Responsibility Area

Cost Object Hierarchies

Define Cost Object Profiles for Cost Object Hierarchies

Define Cost Object Categories for Cost Object Hierarchies

Check Material Accounts for Settlement

User-Defined Error Management

Specify User-Defined Message Types for Cost Object Hierarchies

Assign Messages to a Responsibility Area

Simultaneous Costing

Check Control Data for Repetitive Manufacturing Profiles

Activate Generation of Cost Log in Repetitive Manufacturing

Define Goods Received Valuation for Order Delivery

Period-End Closing

Work in Process

Variance Calculation

Settlement

Product Cost by Order

Basic Settings for Product Cost by Order

Manufacturing Orders

Define Goods Received Valuation for Order Delivery

Period-End Closing

Product Cost by Sales Order

Basic Settings for Product Cost by Sales Order

Control of Sales-Order-Related Production/Product Cost by Sales Order

Preliminary Costing and Order BOM Costing

Period-End Closing

Costs for Intangible Goods and Services

Basic Settings for Costs for Intangible Goods and Services

Preliminary Costing

Period-End Closing

Actual Costing/Material Ledger

Activate Valuation Areas for Material Ledger

Assign Currency Types to Material Ledger Type

Assign Material Ledger Types to Valuation Area

Maintain Number Ranges for Material Ledger Documents

Configure Dynamic Price Changes

Reasons for Price Changes

Set up Material Price Dispatch


Material Update

Define Movement Type Groups of Material Ledger

Assign Movement Type Groups of Material Ledger

Define Material Update Structure

Assign Material Update Structure to a Valuation Area

BAdI: Modify Actual Cost Component During Material Ledger Update

Actual Costing

Activate Actual Costing

Create User-Defined Names for Receipts/Consumptions

Assign User-Defined Names for Receipts/Consumptions

Activate Actual Cost Component Split

Activate Distribution of Consumption Differences

Set Up Transfer of Cost Component Split to CO-PA

BAdI: Receiver Search for Revaluation of Consumption

BAdI: External Apportionment Structure for Joint Production

BAdI: Ending Inventory Valuation

Parallel Valuation of Cost of Goods Manufactured

Balance Sheet Valuation Procedure with Material Ledger

Define Key Figure Scheme

Set Up Valuation Alternatives

Define FIFO Variant

Information System

Control Parameters

Product Cost Planning

Import Reports for Product Cost Planning

Generate Reports for Product Cost Planning

Maintain Cost Component Group for Report Writer

Cost Object Controlling

Settings for Summarized Analysis/Order Selection

Product Cost by Period

Product Cost by Order

Product Cost by Sales Order

Costs for Intangible Goods and Services

Custom Reports

Custom Report Writer/Report Painter Reports

Create Custom Reports for Product Drilldown

Profitability Analysis

Structures

Define Operating Concern

Define Profitability Segment Characteristics (Segment-Lvl Characteristics)

Set Operating Concern

Master Data

Characteristic Values

Define Characteristic Derivation

Valuation

Planning

Initial Steps

Planning Framework

Manual Entry of Planning Data

Integrated Planning

Planning Aids

Reorganization

Flows of Actual Values

Initial Steps

Transfer of Incoming Sales Orders

Transfer of Billing Documents

Order and Project Settlement

Direct Posting from FI/MM

Settlement of Production Variances

Transfer of Overhead

Transfer Customer Rebate Agreements

Multiple Valuation Approaches/Transfer Prices

Periodic Adjustments

Activate Profitability Analysis

Information System

Report Components

Create Profitability Report

Create Reports Based on Line Items

Background Processing

Assign Reports/Report Selection to Role

Currency Translation

Reorganization and Conversions

Tools

Summarization Levels

Analysis

Production Startup

Data Transfers Between CO-PA and Other Systems


Utilities

SAP Enhancements

Profit Center Accounting

Basic Settings

Set Controlling Area

Controlling Area Settings

Activate Average Balance Ledger

Balance Carryforward

Enterprise Organization

Set Active Plan Version

Enter Settings for Enterprise Organization

Create Enterprise Organization

Generate Enterprise Organization from Profit Center Standard Hierarchy

Generate Standard or Alternative Hierarchy from Enterprise Organization

Activate Inactive Master Data

Delete Inactive Master Data

Master Data

Profit Center


Representative Materials

Assignments of Account Assignment Objects to Profit Centers

Check Assignments

Profit Center Where-Used List

Material

Assign PP Production Orders

Assign Process Orders

Assign CO Production Orders

Assign Cost Objects

Assign Projects

Assign Cost Centers

Assign Internal Orders

Assign Business Processes

Assign Maintenance Orders

Assign Fixed Assets

Assign Real Estate Objects from Area RE Classic

Assign Real Estate Objects from Flexible Real Estate Management

Sales Orders

Transfer Prices

Basic Settings for Pricing

Advanced Settings for Pricing

Settings for Internal Goods Movements

Profit Planning

Planning

Basic Settings for Planning

Manual Planning

Profit Planning

Formula Planning

Plan Data Transfer

Allocations

Actual Postings

Basic Settings: Actual

Manual Entry using a Layout

Maintain Automatic Account Assignment of Revenue Elements

Choose Additional Balance Sheet and P&L Accounts

Period-end closing

Transferring Selected Balance Sheet Items


Preparation for Consolidation

Derivation: Partner Profit Center in Purchasing and Sales

Read Purchase Orders/Sales Orders

Information System

Drilldown Reporting

Report Painter

Tools

Authorizations

Change Message Control

Set Distribution of Profit Center Data (ALE)

Transport Customizing Settings

Customer Enhancements

Maintain Document Summarization

Prepare Production Startup

Sets and Variables

Conversion from Release 2.x to 4.6

Convert Allocation Cycles to Release 4.6

Convert Profit Center Master Data to Release 4.6C

Scenario Highlights

The managers of non-operational cost centers, such as sales, marketing, administrative,

research and development, plan the costs for various cost types or elements for their

res ective cost centers.

Process Flow

During the annual budgeting process, the managers of non-operational cost centers,

such as sales, marketing, administrative, research and development, plan the costs for

various cost types or elements for their respective cost centers. The usual starting point

for development of these plans is the actual data for the current or from the previous

ear.

In this process, the previous year's actual expenses for these cost centers are copied

into an annual operating plan (AOP) budget version in cost center accounting.

Alternatively, the previous year's budget data can also be used as a starting point for

the exercise. The data in this version is downloaded into spreadsheets by each cost

The respective cost center managers review and update the budget values according

to their requirements and plans.These plans are then uploaded back into SAP ERP. The plans in SAP ERP are reviewed

and finalized.The planned depreciation on fixed assets is transferred separately to the cost center

plan version. The system calculates the planned depreciation on assets by cost center

based on the asset values posted on the cost centers. In the case of cost centers

having machinery, the depreciation is planned based on cost center and activity type.

Key Points

Comparison of planned and actual costs, and monitoring of costs on cost centers

possible.

GENERAL COST CENTER PLANNING

Scenario Highlights

Involves entering costs, activities and business processes that are incurred during the life cycle of an

order. Can compare plan and actual costs and perform a differentiated variance analysis.

Process Flow

Various internal projects consume resources and incur costs or expenses. These projects are usually done

for future development of products. The costs of these projects need to be tracked for various purposes,

such as cost control, return on investment calculations, and tax reporting. This process makes use of

SAP's internal order functionality to track costs and status. For every project undertaken, an internal order

is created. Cost planning is carried out on this order. Costs incurred for the project can then be posted on

the order. Periodically, the costs collected on the order are settled to the assigned R&D cost center or to

CO-PA (if CO-PA is activated). When the project is complete, and fully settled, the order is then closed by

setting the appropriate status.

Create R&D internal order

Plan costs for R&D order

Settlement of planned costs

Key Points

Comparison of planned and actual costs on internal orders, and monitoring of costs on internal orders.

INTERNAL ORDER R&D PLANNING

Scenario Highlights

Involves entering costs, activities and business processes that are

incurred during the life cycle of an order. Can compare plan and actual

costs and perform a differentiated variance analysis.

Process Flow

Various internal projects consume resources and incur costs or

expenses. These projects are usually done for future development of

products. The costs of these projects need to be tracked for various

purposes, such as cost control, return on investment calculations, and

tax reporting. This process makes use of SAP's internal order

functionality to track costs and status. For every project undertaken, an

internal order is created. Cost planning is carried out on this order.

Costs incurred for the project can then be posted on the order.

Periodically, the costs collected on the order are settled to the assigned

R&D cost center or to CO-PA (if CO-PA is activated). When the project

is complete, and fully settled, the order is then closed by setting the

appropriate status.

Create R&D internal order

Plan costs for R&D order

Settlement of planned costs

Key Points

Comparison of planned and actual costs on internal orders, and

monitorin of costs on internal orders.

INTERNAL ORDER R&D PLANNING

Scenario Highlights

Revenue and costs are planned on product and customer levels.

This scenario is integrated in the complete planning cycle.

Process Flow

The revenue and the costs are planned on product and

customer levels. The scenario is integrated in the complete

planning cycle. The costs are received from CO-PC and cost

center planning and the planned quantities are transferred to

SOP.

This scenario consists of the following steps:

Revenue planning on basis of historical data

Cost calculation

Transfer to SOP

Key Points

Integration to sales, financials, controlling and production

Use of automatic functionality for planning

Data can be planned in spreadsheet

REVENUE PLANNING

Scenario Highlights

SOP is used to verify the sales (demand) plan , create a rough–cut production plan aimed to

satisfy demand, and to meet inventory targets.

Process Flow

A part of annual operating planning (AOP), sales and operation planning (SOP) is a forecasting

and planning transaction to enable sales, production, and to enable inventory targets to be

reached on the basis of historical, existing, estimated, and future data. SOP is used to:

verify the sales (demand) plan from COPA or other sources

create a rough–cut production plan aimed to satisfy demand and to meet inventory targets

visualize capacity use of critical resources to verify the feasibility of the plan

The AOP exercise generally begins with forecasting the sales quantities and revenue for the

comin fiscal ear.

Create sales plan

Accepted sales quantities are transferred to SOP. In SOP rough cut capacity planning of the

budget sales quantities occurs to verify that the goods to be sold can run through the

company's bottleneck resources that are needed to produce the goods.

After the production plan has been proven feasible by SOP, it is transferred to a planning

scenario in long term planning module (LTP) by creating planned independent requirements

(PIR) that reflect the production plan generated by SOP.

Based on these PIRs, materials requirements planning (MRP) is run in a simulated mode.

After having run MRP, the prerequisites are fulfilled to carry out one of the key objectives of

the logistics part of AOP: to calculate the total utilization of the activity types assigned to the

manufacturing work centers allocated by the production plan.

The aggregated utilization of the work center's activity types is the basis for the budgeting

process of the manufacturing cost centers.

Key Points

Avoid bottlenecks, over- and under-absorption in production.

Material requirements planning as a basis for purchasing contracts.

SOP THROUGH LONG TERM PLANNING TRANSFER TO

LIS/PIS/CAPACITY

Scenario Highlights

Standard costs for purchased materials need to be periodically reviewed and updated, if

necessary, to match the current market conditions and negotiated prices.

Process Flow

Standard costs for purchased materials need to be periodically reviewed and updated, if

necessary, to match the current market conditions and negotiated prices. This business

scenario contains the configuration and process details that enable you to meet these

re uirements.


Required materials quantities are transferred from long term planning, and the latest

purchase prices are downloaded.Material requirements valuated with the latest purchase prices are reviewed by the buyers

to compare with the current standards.Buyers update the spreadsheet with the prices that they decide should be the new

standard.Updated prices are uploaded as the new planned prices. These planned prices are used by

the product costing run to valuate the semi-finished and finished goods to come up with

the standard cost of goods sold for the final products.

Key Points

Updated standard costs for purchased materials that can be used to update the standard

prices for semi-finished and finished products

PURCHASED MATERIAL PRICE PLANNING

Scenario Highlights

The managers of manufacturing cost centers plan the costs for their respective

cost centers. The actual data of the current and previous year is used as the

basis for develo in these lans.

Process Flow

During annual budgeting, the managers of manufacturing cost centers plan the

costs for various cost types or elements for their respective cost centers. The

actual data of the current and previous year is usually taken as the basis for

developing these plans. The scenario Manufacturing Cost Center Planning

offers configuration and guidance to enable this process.

In this process, the previous year's actual expenses for manufacturing cost

centers are copied into an annual operating plan (AOP) budget version in

cost center accounting. Alternatively, the previous year's budget data can

also be used as a starting point for the exercise. The data in this version is

downloaded into spreadsheets by each cost element and cost center.

The respective cost center managers review and update the budget values

according to their requirements and plans. These plans are then uploaded

back into the system. The plans in the system are reviewed and finalized.

The planned depreciation on fixed assets is transferred separately to the cost

center plan version. The system calculates the planned depreciation on

assets by cost center, based on the asset values posted on the cost centers.

In the case of cost centers having machinery, the depreciation is planned

based on cost center and activity type.

The resource requirements in the form of planned activity quantities are

transferred from sales and operations (SOP) planning to the cost centers as

planned activity consumption. Plan reconciliation between the SOP activity

requirements and manually planned requirements on the operational cost

centers is carried out. Once the activity quantities and budget amounts are

finalized, planned activity prices are calculated in the system.

Key Points

Comparison between planned and actual costs, and monitoring of costs on

cost centers possible Allocation of production and overhead costs to products (via activity types)

MANUFACTURING COST CENTER PLANNING

Scenario Highlights

A cost estimate used to calculate the standard price for semi- and finished goods for valuation purposes.

Process Flow

Standard costs for products are updated as part of the annual operations planning (AOP). This is necessary to reflect the changes in, for

exam le the rices of urchased arts and chan e in labor and overhead costs.


Create costing run

Execute costing run

Review errors

Analyze proposed standard prices

Repeat annual operating plan scenarios

Edit cost run and execute

AOP - revenue cost of sales transfer

Create frozen costing run

Execute costing run

Mark as future planned price

Release standard cost estimate and revalue stock at start of new fiscal year

Key Points

Prices are updated as future planned costs in the respective material master records

Revaluation of existing inventory to the new standard prices

STANDARD COST CALCULATION

Scenario Highlights

Period end closing in a plant ensures that all costs incurred during the manufacturing process are assigned to the production

activities.

Process Flow

Period-end closing in a plant insures that all costs incurred in production of company activities (such as materials manufactured in-

house) are assigned to those activities. The costs are then allocated to the respective products in profitability analysis.


Allocation of quality costs to production cost centers

All incoming invoices are registered for the period (release blocked invoices)

New MM period opened

Period-end closing activities started for production orders

Data collection for summarization hierarchies is run

Actual assessment of all cost center costs to profitability analysis (COPA) is run

Analyze costs and revenues for your products

Key Points

Run assessment cycle for quality costs

Ensure goods movements and production transactions are complete

Close completed production orders

Data collection for summarization hierarchy (reporting)

Run actual assessment of all cost center costs to profitability analysis (COPA)

Run profitability report

PERIOD-END CLOSING "GENERAL" PLANT

Scenario Highlights

Balance sheet valuation in Inventory Accounting enables you to valuate your inventories at the end of reporting

periods in accordance with international accounting principles (IAS, U.S. GAAP).

Process Flow

This scenario provides end users with an example process description that they can use as a template for their

own valuation processes.

Inventory valuation is carried out in accordance with local legislation, including settings for the overhead

structure, valuation variant, and stock valuation with devaluation on the basis of movement rate.


Stock valuation, using lowest value principle for raw materials, packaging materials and trading goods

Additional devaluations by movement rate

Inventory costing for finished and semifinished products, in accordance with the lowest possible value principle

Stock value reporting in the form of a comparison analysis

Manual stock value adjustment posting in the financial accounting component

Key Points

Stock valuation for raw materials, packaging materials and trading goods based on the lowest possible value

Inventory valuation for semi-finished and finished materials on base of local requirements for valuation

a roachesStock value adjustment

INVENTORY VALUATION FOR YEAR END CLOSING

Scenario Highlights

Describes and covers the period-end closing for projects.

Process Flow

This scenario covers the period–end closing for projects.


Record purchase-order related accounts payable transactions

Review and release blocked invoices

Ensure that inventory movements are complete

Open new MM period

Calculation of work in process (WIP)

Review WIP calculation

Settlement of service orders

Close completed projects (business view)

Actual settlement project to profitability analysis (CO–PA)

Run profitability report

Key Points

Fast period end closing process

Automated efficient processing

PERIOD–END CLOSING PROJECTS

Scenario Highlights

Provides processes for period–end closing on a daily, monthly and yearly basis.

Process Flow

This building block provides the means and sequence of period–end closing steps for period–end closing on a daily,

monthl and earl basis.

SAP Best Practices covers all different kinds of scenarios with a broad variable implementation approach. It should be

possible to select all required steps depending on the selected solution scope.

Period-end closing steps are closely related to scenarios and applications. SAP Best Practices for Baseline structures

the period–end closing in two sections.

Section 1: The period–end closing process steps are described in detail in specific business process documents.

These procedures are application oriented and contain all steps which are to be done in this regard.

Section 2: The Business Process Documentation does not cover the correct sequence of all period–end closing

steps in one solution. Therefore an additional description is provided which contains all steps in a certain sequence.

If the step is to be performed, the corresponding step of the Business Process Document should be selected and

executed.

Key Points

Business Process Documentation for period–end closing is provided within the SAP Best Practices Baseline

implementation. They are related to certain applications and delivered separately. The purpose of this scenario

documentation is to rovide a method to hel select these ste s.

PERIOD–END CLOSING ACTIVITIES