enterprizeerp - actual costing in sap

SAP Business Process Improvement Series

Actual Costing in SAP

www.Enterprizeerp.com

Slide | 2 Actual Costing in SAP

Why Would I Want To Use Actual Cost?

• Actual Costing of Materials

• Multiple Valuation-Group, Legal, Profit

Center

• Multiple Currencies – Dollars, Euro

• Vendor Price Performance

• Gross Margin Analysis – Standard and Actual Costing

• Cost Management


What SAP Modules Supports Actual Costing?

• Material Ledger

• FI

• Cost Center Accounting

• Profitability Analysis

• Materials Management

• Production Planning

• Plant Maintenance

• Project Systems


Key Integration Areas

Sr.No. Areas SAP Functionalities SAP Modules

1 Inventory Valuation General Ledger Posting FI

2 Capitalize Variances General Ledger Posting FI

3 Actual Price Determination Cost Estimate COPC

4 Cost Component Split Cost Estimate COPC

5 Material Master Maintenance Materials Management MM

6 Procurement Materials Management MM

7 Automatic Account Determination Materials Management MM

8 Product Quantities Sales & Distribution SD

9 Material Quantities Production Orders PP

10 Perodic Revaluation Cost of Goods Sold COPA

11 Actual Cost Component Split Cost of Goods Sold COPA


What Is Required To Calculate Actual Costs?

•Material Ledger Activation

•Set-up & Master Data

• Standards

• Posting Actuals

• Month End Closing


Set-up and Master Data

• Material Ledger Configuration

• Plant Set-up

• Material Master Creation


Material Ledger Configuration

• Do You Really Want to Do This?

• Be Sure You Understand What You Want to Accomplish

• Configure the Material Ledger


Plant (Valuation Area) Set-up

• Assign Material Ledger Types to Valuation Area

• Activate Valuation Areas for Material Ledger

• Set Valuation Area As Productive


• Specification of Settlement Type

– 2 Immediate Settlement

– 3 Periodic Settlement

• Price Control = S

Material Master Creation


Creation of Standards • During the

Month Everything Happens at Standard

• Standards Are Needed for Variance Based Reporting

• Allows for Cost Component Breakdown*


Planning and Budgeting

• Considerable Use of Activity Types

• Primary and Secondary Cost Planning

• Target = Actual Activity Types

• Fixed and Variable Cost Planning


Posting Actuals

• Logistics Invoice Verification

• Standard Material Movements

• Standard Cost Center Postings


Month End Close Process


Month End Closing - Target = Actual Activity Allocations

• Allocations Based on Operating Rate

• Receiver Based Fixed Quantity Allocations Can Be Used


Month End Closing - Orders and Projects Preliminary Settlement

• Maintenance Orders

• Engineering Projects

• Critical for Actual Cost Flow


Month End Closing - Cost Center Actual Activity Price Calculation

• Quick

• Handles Iterative Costs

• Supports Cost Component Breakdown - Even in Actuals


Month End Closing - Order & Project Revaluation With Actual Activity Rates

• Gets Actual Costs in Overhead Order Reporting

• Allocates Actual Costs to Manufacturing Orders

• Can Allocate Directly to Material Ledger


Month End Closing - Orders & Projects Final Settlement

• Brings Sender Cost Center and Receiving Order Into Balance

• Adjusts Cost Element in Receiving Cost Center


Month End Closing - Material Ledger

• Materials Selection

• Costing Sequence Determination

• Single Level Price Determination

• Multi-level Price Determination

• Post Closing Entries


Month End Closing - CKMLCP


Month End Closing - Profitability Analysis Revaluation With Actual Cost

• Invoices Revalued Monthly

• Standard SAP Enhancement COPA0002

• Includes Results in CO-PA Value Field


Actual Cost Reporting Material Ledger Display

• Procurement

• Production

• Transfers

• Consumption

• Subcontracting


For more Information

2262, Petworth Court, Unit 202 C Phone : 1 (630) 649 9235, Fax : 1 (630) 689 9455

[email protected]

Ram Rishi Managing Partner

enterprizeerp - actual costing in sap

Documents

actual costs

actual cost flow slide

actual activity types

sap setup

sap planning

material ledger slide

actual activity rates

variable cost planning