181_ERP606_BPD_EN_US

EHP6 for SAP ERP 6.0

March 2012

English

Period-End Closing ”General” Plant (181)

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Documentation

SAP Best Practices Period-End Closing “General” Plant (181): BPD

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ContentsPeriod-End Closing ”General” Plant....................................................................................................5

1 Purpose........................................................................................................................................ 5

2 Prerequisites................................................................................................................................ 5

2.1 Master Data........................................................................................................................... 5

2.2 Preliminary Steps.................................................................................................................. 5

2.3 Roles..................................................................................................................................... 5

3 Process Overview Table...............................................................................................................8

4 Process Steps............................................................................................................................ 11

4.1 Run Assessment Cycle for Quality Costs............................................................................11

4.2 Record Purchase-Order Related AP Transactions..............................................................12

4.3 Release Blocked Invoices...................................................................................................13

4.4 Ensure Closing Operations in Sales and Distribution Are Complete for Inventory Movements.................................................................................................................................... 13

4.5 Ensuring Goods Movements are Complete.........................................................................14

4.6 Ensure Production Transactions Are Complete...................................................................15

4.7 Open New MM Period.........................................................................................................16

4.8 Actual Overheads Calculation Production Order.................................................................17

4.9 Period-End Closing With Partially Delivered Production Orders..........................................18

4.10 Calculation of Work In Progress (WIP)............................................................................20

4.11 Review WIP Calculations.................................................................................................21

4.12 Production and Process Order Variance Calculation.......................................................22

4.13 Product Cost Collector Variance Calculation...................................................................23

4.14 Settle Variances...............................................................................................................24

4.15 Data Collection for Summarization Hierarchy..................................................................26

4.16 Analyzing Variances........................................................................................................27

4.17 Close Completed Production Orders...............................................................................29

4.18 Production Order Information System..............................................................................29

4.19 Performing Actual Assessment to CO-PA........................................................................31

4.20 Run Profitability Report....................................................................................................32

5 Appendix.................................................................................................................................... 35

5.1 Reversal of Process Steps..................................................................................................35

5.2 Used Forms......................................................................................................................... 38



Period-End Closing ”General” Plant

1 PurposeThe Plant/Central closing process is done to make sure that all financial postings are made to represent the plants activity for the period. Daily activity in the plant is posting various financial documents into the general ledger and cost-controlling module. This process makes sure that all activity in the plant is shown correctly, and that no financial postings are missing. Some data (total stock value, total stock, valuation class, price control indicator, and price unit) are managed by period. For these values, and goods movements, to be posted to the correct period, the period must be set whenever a new period starts. Management reporting must receive plant information with reference to variances, WIP, and scrap to allow for the correct reporting of these figures. The production/process orders that are no longer active must be flagged as closed so that future postings will not be allowed. This process ends by flowing into the Central Closing process that finishes the financial reporting of the company.

This BPD covers the period end closing for product cost controlling by period and product cost controlling by order. The procedures for Product Cost by Order are the same regardless of whether a manufacturer uses process orders or production orders. When differences occur, a special note

provides clarification.

2 Prerequisites

2.1 Master DataYou have entered the master data required to go through the procedures of this scenario, especially allocation cycles, and new actual overhead percentages (if necessary).

2.2 Preliminary StepsTo run through this scenario, the following business conditions must be fulfilled:

o purchase order invoices must be posted

o blocked purchase order invoices must be released

o all goods shipped in previous periods have been posted

o all goods movements have been posted

o all production confirmations have been posted.

2.3 Roles

UseThe following roles must have already been installed to test this scenario in the SAP NetWeaver Business Client (NWBC). The roles in this Business Process Documentation must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

Prerequisites



The business roles have been assigned to the user who is testing this scenario.

Business role Technical name Process step

Employee (Professional User)

SAP_NBPR_EMPLOYEE_S Assignment of this role is necessary for basic functionality.

Enterprise Controller

SAP_NBPR_CONTROLLER_M Run Assessment Cycle for Quality Costs

Accounts Payable Accountant 1

SAP_NBPR_AP_CLERK_S Record Purchase-order related Accounts Payable Transactions

Release Blocked Invoices

Shopfloor Specialist

SAP_NBPR_SHOPFLOOR_S Ensure Good Movements are complete

Shop Floor Specialist

SAP_NBPR_SHOPFLOOR_S Ensure Production Transactions are complete

Finance Manager SAP_NBPR_FINACC_S Open New MM Period

Product Cost Controller

SAP_NBPR_PRDCOST_CONTRLR_S Actual Overheads Calculation Production Order

Period-End Closing With Partially Delivered Production Orders

Calculation of Work in Process

Review WIP Calculations

Production and Process Order Variance Calculation

Product Cost Collector Variance Calculation

Settle Variances

Data Collection for Summarization

Analyze Variances

Production Planner

SAP_NBPR_PRODPLANNER_S Close Completed Production Orders

Production Order Information System


SAP_NBPR_CONTROLLER_M Perform Actual Assessment to CO-PA



Business role Technical name Process step

Run Profitability Report



3 Process Overview TableProcess step External

process reference

Business condition

Business role

Trans-action code

Expected results

Run assessment cycle for quality costs


KSU5 Quality costs are distributed to production cost centers.

Record Purchase-Order-Related AP Transactions

PO invoices must be posted before month-end

Accounts Payable Accountant

MIRO Vendor liability is posted with GR/IR, PPV and/or Small Difference off-set posting


Accounts Payable Accountant

MRBR The blocked invoices are released

Ensure Closing Operations in Sales and Distribution are Complete for Inventory Movements

See 203 Sales: Period End Closing Operations



All goods issues shipped in previous period are posted. (see transaction VL10C)

Ensure Goods Movements are Complete

Shop Floor Specialist

COGI All goods movements are posted.

Ensure Production Transactions are Complete

. Shop Floor Specialist

CO16N .

Open New MM Period

General Ledger Accountant

MMPV MM values for previous month are closed. New MM period is open for postings.

Actual Overheads Calculation Prod. Order


CO43 Actual overhead calculations for prod. orders are posted

Period-End-Closing with Partially Delivered


CO8A Costs are transferred from production header to items



Process step External process reference

Business condition

Business role

Trans-action code

Expected results

Production Orders

Preliminary settlement for co-products

WIP Calculation


KKAO WIP calculations are saved for production orders

Review WIP Calculation


KKAQ WIP calculations are reviewed.



KKS1 Variances are calculated for the period for settlement later in the process.

Production cost collector variance calculation


KKS5 Cost Collector variances are calculated for the period so they can be settled later in the process.

Settle Variances


CO88 Variances are posted to zero orders and move variances to CO-PA. PP orders total to WIP, calculated earlier

Data collection for summarization hierarchy


KKRC Data summarized

Analyze variances


KKBC_HOE Variances are analyzed with a set of reports

Close Completed Production Orders

Production Planner

CO02 Closed production orders are marked so that postings to



Process step External process reference

Business condition

Business role

Trans-action code

Expected results

them are no longer possible

Product Order Information System

Production Planner

CO0IS Notification from production that outside vendor process is required

Perform Actual Assessment to CO-PA


KEU5 CO-PA product line reporting has PPV, misc. manufacturing, and scrap values based on allocation rules defined by the business.

Run Profitability report


KE30



4 Process Steps

4.1 Run Assessment Cycle for Quality Costs

UseQuality costs are collected on cost center 1401. They are assessed to the manufacturing cost centers.

Prerequisites Actual assessment cycle Y_A010 must be defined with sender cost center 1401. The assessment is based on fixed percentages that are posted to cost centers 1301 and 1302

The same transaction KSU2 can be used to adopt fixed percentages to customer specific requirements. The percentages delivered with SAP Best Practices are examples only.

Procedure1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu

Accounting → Controlling → Cost Center Accounting → Period-End Closing → Single Functions → Allocations → Assessment

Transaction code

KSU5

Option 2: SAP NetWeaver Business Client (SAP NWBC) via business role

Business role Enterprise Controller

(SAP_NBPR_CONTROLLER_M)

Business role menu

Overhead Cost Controlling → Period End Closing → Execute Actual Assessment Cycle for Cost Centers

2. On the Execute Actual Assessment screen, make the following entries:

Field name Description User action and values Comment

Controlling Area (dialog box)

Enter 1000 for example. Only needed if dialog box displays.

Periods Two fields:

Period From

Period To

Enter one number in each field, for example, from 1 to 12

Month number (Jan =1, Dec=12)

Only fill out the first field. Do not enter a value in the second field.

Year Current fiscal year Actual year

Test run Use test runs until the run is error-free

Detailed lists X



Cycle Y_A010

3. Choose Execute.

Result The actual quality costs are distributed to production cost centers.

4.2 Record Purchase-Order Related AP Transactions

UseIn this activity, you record purchase-order related accounts payable transactions.



SAP ECC menu

Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice

Transaction code

MIRO


Business role Accounts Payable Accountant

(SAP_NBPR_AP_CLERK_S)

Business role menu

Accounts Payable → Posting → Invoices → Enter Incoming Invoice w/ PO Reference

2. On the Enter Incoming Invoice screen, make the following entries:

Field name Description User action and values

Comment

Transaction Invoice

Invoice Date <date>

Reference Invoice number

Posting Date <date>

Amount <amount>

Currency USD

Calculate Tax Selected

Purchase Order / Scheduling Agreement

Input field „Purchasing Document Number”

<purchase order number>

3. Choose Enter.

4. Review the displayed line items. Deactivate any line items that are not part of the invoice. If necessary, make amount/quantity changes to those lines that are part of the invoice.

5. Choose Enter.



6. Choose Post.

Result The Vendor liability is posted with GR/IR, PPV and/or small difference off-set posting.

Debited Accounts Credited Accounts

GR/IR Account Vendor

PPV (if applicable) PPV

Small Difference (if applicable) Small Difference (if applicable)

Use Tax (if applicable)

4.3 Release Blocked Invoices

UseThis activity reviews and releases blocked invoices.



SAP ECC menu

Logistics → Materials Management → Logistics Invoice Verification → Further Processing → Release Blocked Invoices

Transaction code

MRBR


Business role Accounts Payable Accountant

(SAP_NBPR_AP_CLERK_S)

Business role menu

Accounts Payable → Posting → Invoices → Release Blocked Invoice w/ PO Reference

2. In the Company code field, enter 1000 and choose Execute.

3. On the Release blocked invoices screen, select the invoices for release and choose Release.

4. Save your entries.

If the invoice is not authorized, resolve any issues, then re-run this transaction. Otherwise, go to the next step.

ResultThe invoices are released for payment.

4.4 Ensure Closing Operations in Sales and Distribution



Are Complete for Inventory Movements.

UseIn this activity, you ensure that inventory movements are complete.

Procedure

To execute this activity, run the Sales: Period End Closing Operations (203) scenario using the master data from this document.

ExampleShipping Point/Receiving Pt

Deliv Creation Date Code

1000 <first day of period to be closed to last day of period to be closed>

ResultAll goods issues that were shipped in the previous period have been posted into the system.


COGS Inventory

4.5 Ensuring Goods Movements are Complete

UseIn this activity, you ensure Good movements are complete.



SAP ECC menu

Logistics → Production → Shop Floor Control → Confirmation → Reprocessing → Goods Movements

Transaction code

COGI


Business role Shop Floor Specialist

(SAP_NBPR_SHOPFLOOR_S)

Business role menu

Shop Floor → Discrete → Goods Movement → Postprocess Faulty Goods Movements



2. On the Postprocessing of Error Records from Automatic Goods Movements screen, in the Plant field, enter 1000 and choose Execute.

3. The Automatic movements with Errors: Aggregated Records report shows items that must be reviewed and processed. Reprocess any items that are displayed in the list.

ResultAll goods movements have been posted.


COGS, Consumption of Raw Materials Inventory

4.6 Ensure Production Transactions Are Complete

UseIn this activity, you ensure production transactions are complete.



SAP ECC menu Logistics → Production → Shop Floor Control → Confirmation → Reprocessing → Confirmations

Transaction code

CO16N


Business role Shop Floor Specialist

(SAP_NBPR_SHOPFLOOR_S)

Business role menu

Shop Floor → Discrete → Confirmation → Reprocessing Confirmation

2. On the Postprocessing Incorrect Confirmations screen, in the Origin field, enter 2, and in the

Plant field, enter 1000 and choose Execute.

2. Reprocess any items that are displayed in the list.

If you are doing a full closing and need to ensure process orders are complete, re-run this transaction using an Origin field value of 6.

ResultAll production confirmations have been posted.



4.7 Open New MM Period

Other Business Process Documentations may also include period-end closing steps. Do not perform this step until you are sure you have completed period-end closing steps covered by other scenarios in SD, MM, PP, and other applications. See Period End Closing Activities (224) BPD for more information.

UseStock and valuation data are managed by period. For values and goods movement to be posted to the correct period, the period must be set whenever a new period starts. This activity should be run after all users have logged off. It cannot be run while anyone is handling a material. If it has not been run, no materials movements can be done in the new period.

Prerequisites

The previous three steps must be completed before you can execute this step.



SAP ECC menu Logistics → Production → Master Data → Material Master → Other → Close Period

Transaction code

MMPV


Business role General Ledger Accountant

(SAP_NBPR_FINACC_S)

Business role menu

General Ledger → Periodic Processing → Closing Periods → Close Period for Material Master

2. On the Close Period for Material Master Records screen, make the following entries:


From company code 1000

To company code 1000

Next period <period to open>

Next fiscal year <current fiscal year>

Check and close period Selected

3. Choose Execute.

ResultMM values are closed for the previous month. The new MM period is open for postings.



4.8 Actual Overheads Calculation Production Order

UseIn this activity, you post the actual overheads to production orders / product cost collectors.

Prerequisites

If necessary, update the percentages of actual overheads to be calculated.

An overhead rate specifies the conditions under which overhead is applied to an object. In this IMG activity you define percentage overhead rates.

Percentage overhead rates are recommended if, for example, you want to calculate quantity-independent overhead on costs for particular cost elements posted on a production order or product cost collector. Examples are overheads on material consumption and labor. Quantity-based overhead rates are calculated for each unit of measure of a cost element.

Overhead rate maintenance (actual percentage):

1. Access the transaction choosing one of the following navigation options:


SAP ECC menu

Accounting → Controlling → Product Cost Controlling → Cost Object Controlling → Product Cost by Order → Period-End Closing → Current Settings → Define Percentage Overhead Rate

Transaction code

S_ALR_87008275


Business role Product Cost Controller

(SAP_NBPR_PRDCOST_CONTRLR_S)

Business role menu

Product Cost Controlling → Product Cost Planning → Change View Percentage Overhead

2. On the Change view percentage overhead: Overview screen, mark the percentage overhead you want to change.

3. On the Change view ”Details”: Overview screen, you can change the percentage of the rate or you can select the rate and choose copy as.

4. On the Change View ”Details”: Overview of selected set screen, make the following entries:

Field name Description User actions and values Comment

Valid from <the new valid date from>

To <the new valid date to>

CO Area Controlling Area 1000

Overhead type <1> for actual overhead rate

Plant 1000

Percentage <percentage of overhead>

5. Save your entries.


sapevent:DOCU_LINK%5CGL:overhead_rate




SAP ECC menu

Logistics → Production → Shop Floor Control → Period-End Closing → Overhead Calculation → Collective Processing

Transaction code

CO43


Business role



Business role menu

Product Cost Controlling → Periodic Processing → Overhead Calculation → Actual Overhead Calulation: Production/Process Orders

2. On the actual overhead calculation: Production//Process Orders screen, make the following entries:


Plant 1000

Period <last period>

Fiscal Year <actual fiscal year>

Test run Deselected

Detail lists Selected

3. Choose Execute.

ResultThe actual overheads on production orders are posted.

4.9 Period-End Closing With Partially Delivered Production Orders

UseSince the process order is not completed by the end of the period, it is necessary to calculate the actual WIP value and settle the amounts for information purposes to Financial Accounting. In addition, process costs and overhead rates must be allocated to the order before the WIP calculation. You have been asked to perform the period-end closing tasks for your process order. Because this is a joint production order, you must distribute the actual costs from the order header to the order items. This is necessary to support the calculation of WIP for the individual order items.

Preliminary settlement for co-product

This step is applied just in case of process orders.



If co-products are produced in a manufacturing order, the actual costs are collected on the order header. At the end of the period, these costs can be distributed to the order items according to equivalences. This enables you to charge each co-product with its share of the actual costs. You use the function Preliminary Settlement for Co-Products, Rework for this.

PrerequisitesCheck the equivalence numbers in the apportionment structure. In the Preliminary Settlement for Co-Products you can distribute the overall costs for the order to the co-products. To do this you must define an apportionment structure. In this apportionment structure, you specify equivalences that are used to distribute the actual costs posted to the order header.



SAP ECC menu

Logistics → Production → Shop Floor Control → Period-End Closing → Preliminary Settlement for Co-Products, Rework → Collective Processing

Transaction code

CO8A


Business role



Business role menu

Product Cost Controlling → Periodic Processing → Settlement → Prel.Settlement Co-Products, Rework - Collective Processing

2. On the Preliminary Settlement for Co-Products screen, make the following entries:


Plant 1000

With Production Orders, Process Orders

Selected

Settlement period Closed period

Fiscal year <current year>

Processing period: Test run Unchecked

Processing period: Detail list Checked

Processing period: Background Processing

Checked (if volume of data is large)

3. Choose Execute. The system generates a report of settlements calculations for the selected plant production orders

Result The costs are transferred from order header to items. The individual cost elements that debited the process order are listed as the senders. The settlement receivers should list the order items (co-products) as the receivers for each individual sending cost element. The value is split according to the apportionment structure.



4.10 Calculation of Work In Progress (WIP)

UseIn this activity, you calculate work in progress (WIP). This step is executed in the same manner for partially delivered production orders as for (totally) delivered production orders



SAP ECC menu

Logistics → Production → Shop Floor Control → Period-End Closing → Work in Process → Collective Processing → Determine

Transaction code

KKAO


Business role



Business role menu

Product Cost Controlling → Periodic Processing → Work in Process → Calcuate Work in Process: Collective Processing

2. On the Calculate Work In Process: Collective Processing screen, make the following entries:


Comment

Plant 1000

With Production Orders, Process Orders, Product Cost Collection

Selected Do not select Product Cost Collectors if you are not using reporting point in your product cost collector scenario with backflush in routings.

Note: - Baseline scenario does not use reporting point.

WIP to period Closed period

Fiscal year <current year>

RA Version 0

Test run Deselected To review WIP without calculation, select this checkbox.

Log Information Messages

Selected

Output object list Selected

Hide orders for which WIP=0

Selected



3. Choose Execute. The system generates a report of WIP calculations for the selected plant production orders.

Do not select Product Cost Collectors for WIP calculation if you do not have at least one point of delivery in your routings.

ResultWIP Calculations are saved for production orders.

4.11 Review WIP Calculations

UseIn this activity, you review the WIP calculation.

After running this activity:

Option A: If the WIP and Variance Report is accurate, go to next step.

Option B: If the WIP and Variance report is not accurate, correct any variance or WIP issues and re-run steps 1 and the next that follows.

Prerequisites Work in progress calculation has been executed.



SAP ECC menu

Logistics → Production → Shop Floor Control → Period-End Closing → Work in Process → Collective Processing → Display

Transaction code

KKAQ


Business role



Business role menu

Product Cost Controlling → Periodic Processing → Work in Process → Display Work in Process: Collective Processing

2. On the Display Work In Process: Collective Processing screen, make the following entries:


Comment

Plant 1000

With Production Orders, Product Cost Selected



Collectors, Process Orders

WIP to period <closed period>

Fiscal year <current fiscal year>

RA Version 0

Hide orders for which WIP=0 Selected

3. Choose Execute. The system generates a report of WIP calculations for the selected plant production orders, arranged by order and totaled by order type.

You can also use report S_ALR_87013127, KKBC_ORD w/variant 1SAP02 as follows:

Review the posted actual costs that were changed by the distribution to the co-products.


SAP ECC menu

Accounting → Controlling → Product Cost Controlling → Cost Object Controlling → Product Cost by Order → Information System → Reports for Product Cost by Order → Detailed Reports → For Orders

Transaction code

KKBC_ORD




Business role menu

Product Cost Controlling → Reporting → Production and Process Orders → Analyze Order

4. From the menu, choose Settings Order Items On/Off.

5. Select Layouts and select layout 1SAP02 (cost trend).

6. Enter your order number and order item 1, then choose Execute.

7. The individual order items now have actual costs.

ResultThe WIP calculation is reviewed.

4.12 Production and Process Order Variance Calculation

UseIn this activity, you calculate production and process order variances.



SAP ECC menu

Logistics → Production → Shop Floor Control → Period-End Closing → Variances → Collective Processing



Transaction code

KKS1




Business role menu

Product Cost Controlling → Periodic Processing → Variances → Variance Calculation (Production Orders)

2. On the Variance Calculation: Initial screen, make the following entries:


Plant 1000

With production orders Selected

With process orders Selected

Period <period to close>

Fiscal year <current fiscal year>

3. From the menu, choose (NWBC: More ) Extras Set Target Cost Versions.

4. Select version 0 and confirm, then make the following entries:


Comment

Selected Target Cost Vars

Selected

Test run Deselected To review variances, select this checkbox.

Detailed list Selected.

5. Choose Execute. The system generates a Variance Calculation: List report showing the variances, by order, calculated for the period.

Result Production order variances are calculated for the period so they can be settled later in the process.

4.13 Product Cost Collector Variance Calculation

UseThis activity calculates the variances for the product cost collector.



SAP ECC menu

Logistics → Production → Repetitive Manufacturing → Environment → Period-End Closing for Product Cost Collector → Variances → Collective



Processing

Transaction code

KKS5




Business role menu

Product Cost Controlling → Periodic Processing → Variances → Variance Calculation (Cost Collectors)

2. On the Variance Calculation: Initial screen, make the following entries:


Plant 1000

W/Product Cost Collectors Selected

Period <period to close>

Fiscal years <current fiscal year>

3. From the menu, choose (NWBC: More ) Extras Set Target Cost Versions.

4. Select version 0 and confirm, then make the following entries:


Comment

Selected Target Cost Vars

Selected

Test run Deselected Run with Test Run checked to review variances. Ignore errors 206 and 213 for ETO orders that settles WBS. Ignore error 011 for status DLV/TECO.

Detailed list Selected

5. Choose Execute. The system generates a Variance Calculation: List report showing the variances, by cost collector, calculated for the period.

Result Cost Collector variances are calculated for the period so they can be settled later in the process.

4.14 Settle Variances

UseIn this step, you settle the production variances to Financial Accounting and Profitability Analysis.





SAP ECC menu

Logistics → Production → Shop Floor Control → Period-End Closing → Settlement → Collective Processing

Transaction code

CO88




Business role menu

Product Cost Controlling → Periodic Processing → Settlement → Actual Settlment: Production/Process Orders

2. On the Actual Settlement screen, make the following entries:


Comment

Plant 1000

With Production Orders

Selected

With Process Orders

Selected

W/Product Cost Collectors

Selected

Settlement Period <period to settle>

Fiscal Year <current fiscal year>

Processing Type Automatic

Test Run Deselected Run with 'Test Run' checked to review variances before posting

Detailed List Selected

3. Choose Execute.

ResultFor a partially delivered production order, the WIP accrual to FI does not credit the process order. The WIP balances are stored in RA cost elements that do not update the controlling object. This can be verified by displaying the sender and receiver for the settlement.

Select one of the process order items. Select Accounting documents. From the list of accounting documents, choose Accounting document. This is the WIP accrual posting in FI.

Cost collector variances are posted to zero orders and move variances to CO-PA. PP orders total to WIP calculated in the Review WIP calculation step. You can use transaction S_ALR_87012993 to determine that the order group PP, balance should equal WIP from the Review WIP Calculation step.


SAP ECC menu Accounting → Controlling → Internal Orders → Information System → Reports for Internal Orders → Plan/Actual Comparisons →



Orders: Actual/Plan/Variance

Transaction code S_ALR_87012993

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role



Business role menu Overhead Cost Controlling → Reporting → Orders → Orders: Actual/Plan/Variances

Negative variances:


Inventory Change G/L with production order/cost collector

Gain/Lost G/L with CO-PA value fields (Labor Variance, Overhead Variance, Material Variance)

Positive variances:


Gain/Lost G/L with CO-PA value fields (Labor Variance, Overhead Variance, Material Variance), Production Order Settlement Variance

Inventory Change G/L with production order/cost collector, GL Production Variance

4.15 Data Collection for Summarization Hierarchy

UseSAP system offers several reports for analyzing production data. To facilitate reporting, we recommend using a hierarchy and drilling down to lower levels.

Procedure1. First, you must start a data collection for the summarization hierarchy YBMF0001. Access the

transaction choosing one of the following navigation options:


SAP ECC menu

Accounting → Controlling → Product Cost Controlling → Cost Object Controlling → Product Cost by Order → Information System → Tools → Data Collection → For Summarization Hierarchy

Transaction code

KKRC




Business role menu

Product Cost Controlling → Periodic Processing → Settlement → Summarization: CO Object



2. Enter the following information:


Hierarchy <actual hierarchy> for example, YBMF0001

From fiscal year <current fiscal year>

To fiscal year <current fiscal year>

From period <period for data collection>

To period <period for data collection>

Parallel processing No entries necessary

Background processing

X Flag the field

3. Choose Execute.

4. In the Background Processing dialog box, select Start Immediately and choose Confirm.

Result The system summarizes primary and secondary costs, variances, and work in progress data on the different levels: controlling area, company code, plant, order type, material number, order/product cost collector.

4.16 Analyzing Variances

UseThe SAP system offers several reports for analyzing production variances. We recommend to use the summarization hierarchy and the line item report for the single order.

Prerequisites Data collection for summarization hierarchy has been executed.



SAP ECC menu

Accounting → Controlling → Product Cost Controlling → Cost Object Controlling → Product Cost by Order → Information System → Reports for Product Cost by Order → Summarized Analysis → With Defined Summarization Hierarchy

Transaction code

KKBC_HOE






Business role menu

Product Cost Controlling → Reporting → Sales Orders → Analyze Summarization Object

2. Enter the following information:


Hierarchy type CO Summarization

Hierarchy <actual hierarchy> for example, YBMF0001

Time Frame Flag limited

From period <period for data collection>

To Period <period for data collection>

Plan Version 0

3. To display the data for the hierarchy, choose the Overview button.

4. To add columns to your report, choose the Choose Layout button. Select layout 1SAP02 Plan/Actual Comparison. You can analyze which products and which production orders had high variances.

5. To see the variances on an order, double-click the order number. The system opens the line item report.

6. In the line item report, you can create your own layout to analyze variances.

7. Choose the Change Layout button. To sort in ascending alphabetical order, choose Column Name. To analyze the production variances, select the following columns and choose the left arrow button:

o Input Price Variance

o Input quantity variance

o Remaining input variance

o Remaining variance

o Output Price Variance

o Lot size variance

o Output quantity variance

o Resource-usage var.

o Scrap variance

o Mixed-price variance

o Variance

8. Select the Sort order header and take out the summarization at cost element level by clicking into the field.

9. Save your layout.

10. After analysis, you can go back to the main report and continue to check the variances on the other production orders.

Result



You can analyze production variances on different levels down to the single production order.

4.17 Close Completed Production Orders

UseIn this activity, you close the completed production orders.



SAP ECC menu Logistics → Production → Shop Floor Control → Order → Change

Transaction code CO02


Business role Production Planner

(SAP_NBPR_PRODPLANNER_S)

Business role menu Production → Shopfloor Control → Production Order

2. Only SAP NetWeaver Business Client (SAP NWBC): Enter search criteria and search for the order by pressing Apply. Mark the required line and choose Process Production Order Change Order.

3. On the Production Order Change: Initial screen, in the Order field, enter the order number to close.

The order must have the status Released (REL) or Technically completed (TECO). The order balance must be 0. There must not be any open purchase requisitions, purchase orders, or commitments on the order. Confirmations are no longer possible.

4. On the Production Order Change: Header screen, from the menu, choose Functions Restrict Processing ® Close.

5. From the menu, choose Functions Deletion flag Set.

6. Choose Save.

Result Closed production orders are marked in the system so that no more postings can be done.

4.18 Production Order Information System

UseThis activity displays all purchase requisitions linked to a production order. The purchase department must be informed by production that an outside vendor process is required.



This screen shows all purchase requisitions linked to a production order. This allows the buyer/planner to see the workload for requisitions that require external processes. The production scheduler must inform the purchasing department when it is time to ship out the material. You should not create the purchase order before the material is at the external process operation in the production process. Any quantity changes on the production order automatically updates the requisition quantity until the requisition is converted into a purchase order.

PrerequisitesThe production scheduler may inform the purchasing department that they must check requisitions that require external processes.



SAP ECC menu Logistics → Production → Shop Floor Control → Information System → Order Information System

Transaction code

COOIS


Business role Production Planner

(SAP_NBPR_PRODPLANNER_S)

Business role menu

Production → Evaluations → Reports → Production Order Information System

2. Make the following entries:


List Purchase Requisitions

Layout 000000000001 - Standard

Production Orders

Selected

Selection tab

Production Plant 1000

MRP Controller 100

Production Order <Enter a Production Order number, if known>

3. Choose Enter.

ResultProduction has notified the buyer that an outside vendor process is required.

Purchase Requisition number: _________



4.19 Performing Actual Assessment to CO-PA

UseYou execute actual assessments to transfer all costs from cost centers to Profitability Analysis.

PrerequisitesThe actual assessment cycles are set up.



SAP ECC menu

Accounting → Controlling → Profitability Analysis → Actual Postings → Period-End Closing → Transfer Cost Center Costs/Process Costs → Assessment

Transaction code

KEU5




Business role menu

Profitability Analysis → Transfer of Overhead → Execute Actual Assessment Cycle for Profitability Analysis

2. If the system displays the Operating concern dialog box, enter your Operating Concern (for example, 10US) and choose Continue.

3. Make the following entries:

Field name

Description User action and values

Comment

Period <period to run>

Fiscal year

<Current fiscal year>

Test run Deselected To review variances before posting to CO-PA, select this checkbox.

Cycle YB02

Detailed list

Selected

4. Choose Execute. The system displays a report of cost center transactions posted to CO-PA.

ResultThe costs are transferred to CO-PA.

4.20 Run Profitability Report



UseTo analyze your profitability data in drilldown reporting, there is a set of reports defined in the system.



SAP ECC menu Accounting → Controlling → Profitability Analysis → Information System → Execute Report

Transaction code

KE30




Business role menu Profitability Analysis → Reporting → Execute profitability report

2. There is a contribution margin report defined in the system.The report shows actual data, planned data and variances with drill-down possibility to the single customer, customer group, country of the customer, production plant, product group, product and sales office.

Here is an overview of the reporting lines and key figures:

Key figures:

Sales quantity

Revenue

Customer Discount

Material discount

Qty discount

Promotion

Free Goods

Discounts

Bonuses

Net Sales

Labor Costs variable

Manufact. costs variable

Overhead costs variable

Contribution Margin I

Labor Costs fix

Manufact. costs fix

Overhead costs fix

Contribution Margin II



Scrap

Variances

Contribution Margin III

Administration Overhead

Sales Overhead

Marketing

R&D Cost Center

Contribution Margin IV

Non Operating Income

Non Operating Expense

P&L Before Taxes

Taxes

P/L After Taxes

3. You are still in transaction KE30

.Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Accounting → Controlling → Profitability Analysis → Information System → Execute Report

Transaction code

KE30




Business role menu Profitability Analysis → Reporting → Execute profitability report

5. If the system displays the Operating concern dialog box, enter your Operating Concern (e.g. 10US ) and choose Continue.

6. To execute the report, double-click YB1040. On the selection screen for this report make the following entries and choose Execute:


To Fiscal Year <Current fiscal year>

From Fiscal year < fiscal year>

To Period <period to run>

From Period <period to run>

Version 0

7. Confirm the dialog box message. The report is executed and displayed for all customers, customer groups, country of the customers, production plants, products, and sales offices. If you



want to display your sales to a single customer, choose customer in the navigation part of the report. The item customer moves to the right and a set of icons appears. When you choose the small arrows, you can move from customer to customer. When you choose the Details button, you can choose any customer. When you choose the button to the left of the customer, the characteristic customer goes back to the navigation part of the report. You can also choose more than one characteristic and display the figures for certain combinations of customer – product – country and so on.

8. Each time you choose a characteristic like customer, single customer, and so on, the figures of the report change to display exactly the values for the characteristics chosen. The layout / reporting lines of the report are fixed.

Result The report is displayed using the characteristics you set (customer, product, and so on). You can store the displayed status of the report as frozen report data. You can submit the results to appropriate persons.



5 Appendix

5.1 Reversal of Process StepsIn the following section, you can find the most common reversal steps that you can take to reverse some of the activities described in this document.

Run assessment cycle for quality costs

Transaction code ( SAP GUI)

KSU5

Reversal: Reverse actual assessment


KSU5

Business role Enterprise Controller (SAP_NBPR_CONTROLLER_M)

Business role menu Overhead Cost Controlling Period Close Execute Actual Assessment Cycle for Cost Centers

Comment Choose assessment - reverse

Record Purchase-Order-Related AP Transactions


MIRO

Reversal: Cancel invoice document


MR8M

Business role Accounts Payable Accountant (SAP_NBPR_AP_CLERK_S)

Business role menu Accounts Payable Posting Invoice select invoice (mark the required line) cancel document

Comment



MRBR

Reversal: Park invoice


MIRO

Business role Accounts Payable Accountant (SAP_NBPR_AP_CLERK_S)

Business role menu Accounts Payable Posting Invoices Enter Incoming Invoice w/ PO reference

Comment



Actual Overheads Calculation Prod. Order


CO43

Reversal: Reverse Actual Overheads Calculation Prod. Order


CO43

Business role Product Cost Controller (SAP_NBPR_PRDCOST_CONTRLR_S)

Business role menu

Product Cost Controlling Period Close Actual Overhead Calculation: Production/Process Orders

Comment Choose overhead calculation - reverse

Period-End-Closing with Partially Delivered Production Orders

Preliminary settlement for co-products


CO8A

Reversal: Reverse Preliminary settlement for co-products


CO8A


Business role menu

Product Cost Controlling Period Processing Settlement Presett. Co-Products, Postprocessing

Comment Choose (NWBC: More… )preliminary settlement - reverse

WIP Calculation


KKAO

Reversal: Reverse WIP Calculation


KKAO

Business role Product Cost Controller (SAP_NBPR_PRDCOST_CONTRLR_S) (

Business role menu

Product Cost Controlling Period Processing Variances Variance Calculation (Production Orders)

Comment Choose (NWBC: More… ) variance calculation - reverse



KKS1



Reversal: Reverse Variance Calculation


KKS1


Business role menu

Product Cost Controlling Period Processing Variances Variance Calculation (Production Orders)

Comment Choose (NWBC: More… ) variance calculation - reverse

Settle Variances


CO88

Reversal: Reverse Variances


CO88


Business role menu

Product Cost Controlling Period Processing Settlement Actual Settlement: Production/Process Orders

Comment Choose settlement - reverse

Close Completed Production Orders


CO02

Reversal: Revoke Closing for Completed Production Orders


CO02

Business role Production Planner (SAP_NBPR_PRODPLANNER_S)

Business role menu

Production Shopfloor Control Production Order select the production order and mark the required line process production order Change Order

Comment Choose functions – restrict processing – revoke close

Perform Actual Assessment to CO-PA


KEU5

Reversal: Reverse Actual Assessment to CO-PA


KEU5

Business role Enterprise Controller (SAP_NBPR_CONTROLLER_M)



Business role menu Profitability Analysis Transfer of Overhead Execute Actual Assessment Cycle for Profitability Analysis

Comment Choose assessment – reverse

5.2 Used FormsNot applicable.


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