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User Manual SAP R/3 Enterprise Implementation Project

CONFIGURATION MANUAL

(SAP R/3 Version ECC6.0)

CONTROLLING

Prepared By Approved By

P.Ravishankar K.Viswanathan

SAP FICO Consultants. Project Manager

Info vista Technology Info vista Technology

Confidential User manual Page 1 of 27


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INDEX

1. Define Controlling area .......................................................................................................... 3

Maintain controlling area ....................................................................................................... 3

1.2 Activate components ........................................................................................................ 5

1.3 Assignment of company code to controlling area ............................................................ 6

1.4 Define number ranges for controlling documents ............................................................7

1.5 Maintain versions ............................................................................................................. 81.6 Defining operating concern ............................................................................................. 8

2. Cost element group ..............................................................................................................10

3. Costing sheet configuration ..................................................................................................12

3.1 Define cost component structure ....................................................................................12

3.2 Define cost sheet ............................................................................................................21

4. Costing run ...........................................................................................................................26

4.1 Define a costing run .......................................................................................................26



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1. Define Controlling areaSAP calls managerial accounting as controlling. The module is commonly known as CO.

The controlling area is the central organization in controlling , structuring the internalaccounting operations. In CHOICE we have defined controlling area as CTC

Maintain controlling area

The controlling area is the central organizational structure in Controlling and is used in cost

accounting. The controlling area just like a company code is a self contained cost accounting

entity for internal reporting purpose. The controlling area is assigned to one or more

company codes so as to ensure that the necessary transactions posted to FI , are transferred to

controlling for cost accounting purpose.

This is the initial screen for controlling.

TransactionCodeMenu Accounting > Financial Accounting > Controlling

In order to maintain controlling area, we have to follow the menu path



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TransactionCodeMenu Accounting > Financial Accounting > controlling >

Organization > Maintain controlling area



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1.2 Activate components

On entering the controlling area, click on the activate components , wherein you will get thefollowing screen.

It should be configured as per the above.



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On clicking the assignment of company code the following screen is displayed. Here you

assign the company code

1.3 Assignment of company code to controlling area



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1.4 Define number ranges for controlling documents


General controlling > Organization > Maintainnumber ranges for controlling documents

Then we maintain document number ranges for the controlling documents



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1.5 Maintain versions

Transaction

CodeMenu Accounting > Financial Accounting > controlling >

General controlling > Organization > Maintainversions

We have to maintain plan version for the controlling area.

1.6 Defining operating concern

The menu path



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Profitability analysis > Structure > Define operatingconcern > Maintain operating concern

The operating concern is the top most reporting level for profitability analysis and sales &

marketing controlling. We have defined the operating concern as CISS for CHOICE.

The main screen will be displayed as follows;



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2. Cost element groupThe grouping of cost elements of the same type so as to help in reporting or processing more

than one cost element in a single business transactions.

We have to define cost element group

The screen is as follows

The menu path is

TransactionCode

Menu Accounting > Financial Accounting > controlling >Cost element accounting > Master data > Costelements > cost element groups

This is the groups created forCHOICE.

This is the cost element group structure



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3. Costing sheet configuration

3.1 Define cost component structure

The cost component structure groups the various cost elements into cost components to show

the activity price of an activity type, to arrive at the cost of process and to calculate the

planned cost of a product.

TransactionCode

OKTZ

Menu Accounting > controlling > Product cost planning >Basic settings for material costing > Define cost

component structure

We have defined Z8 as SFD cost component & Z9 for PFD cost component for

CHOICE.



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When you select the structure SFD cost component & then clickAssignment cost

component cost element interval., you will find the list of all GL accounts set up for the

preparation of cost sheet.



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In the screen mentioned below we define cost component structure with attributes. This is

done by clicking the cost component structure with attributes icon with the name specified .

We have defined Z8 as SFD cost component & Z9 for PFD cost component.

The following screen is displayed as below. You will find the structure displaying all the cost

components for costing.



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When you select Z8 ( Raw material & Semi finished goods ) & then clickAssignment cost

component Cost element interval , you will find the GL accounts related to raw material

assigned to the cost component structure.



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When you select Z8 ( Packing material ) & then clickAssignment cost component Cost

element interval , you will find the GL accounts related to packing material assigned to the

cost component structure.



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When you select Z8 ( Material overhead ) & then clickAssignment cost component Cost

element interval , you will find the GL accounts related to material overhead assigned to the

cost component structure. Here you will be assigning a Secondary cost element as 800001

to 800013.



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When you select Z8 ( Production overhead ) & then clickAssignment cost component

Cost element interval , you will find the GL accounts related to production overhead

assigned to the cost component structure. We have defined the production overhead as

404004.



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When you select Z8 ( Other costs ) & then clickAssignment cost component Cost

element interval , you will find the GL accounts related to other costs assigned to the cost

component structure. We have defined the production overhead as 498011.



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Cost component groups.

Z8 & Z9 has been defined as cost component groups.

This can be viewed by clicking Z8 & the cost component groups.



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3.2 Define cost sheet

Here we now define the costing sheet. Menu path

TransactionCodeMenu Accounting > controlling > Product cost planning >

Basic settings for material costing > Overhead >Define costing sheets

This is the initial screen of the costing sheet. We have defined as ZPFD & ZSFD as costing

sheet for PFD & SFD respectively.



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Costing sheet rows

In order to view the costing sheet rows you have to select the costing sheet & then click

costing sheet rows. The costing sheet is built on these 3 fields.

Base Z912 , Z911

Overhead- Z913 , Z915

Credit Z01,Z02



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Here the base is defined by giving the basic raw materials GL head involved in the relevant

cost elements column. Here we have defined Z912.



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The over head rate is defined as a percentage on the basic cost of raw material @ 6%to

arrive at the material overhead.

We have defined the material overhead as Z913.



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Credit ; You have defined a percentage of 6% for material overhead of basic raw material &

wages which has to credited back to production overhead & this is defined in Credit .



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4. Costing run

4.1 Define a costing run

TransactionCode

Ck40n

Menu Accounting > controlling > Product cost planning >Material costing > Costing run > CK40n edit costingrun

The costing run is mainly done to arrive at the planned cost of a finished product. You have

to create a costing run with a run date preferably on a month end date to update the planned

cost in the material master which can be viewed in MM03.(Costing View).

The following are steps involved in the costing run.

1. Selection

2. Structural explosion3. Costing

4. Analysis

5. Marking

6. Release



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Details of the steps involved in the costing run.

1. Selection - You are given the option of selecting the material to be costed & in this

step you will decide which or all the materials required for a planned cost.

2. Structural explosion In this step the system checks for all the materials which is in

Bill of Material (BOM), for the purpose of costing.

3. Costing The system does the costing based on the sequence of the costing sheet

configured.

4. Analysis An analysis is made available to view the planned cost of the finished

goods selected along with the details of the cost structure.

5. Marking The system will mark the planned cost of the material required to be costed

based on your selection.

6. Release The system will release the planned cost of the material to be costed & getsupdated in the material master costing view.

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