Controlling(Aml)

Controlling (Co)

Controlling is used for internal reporting

Controlling Area is the highest hierarchy.

Areas to be covered:

1. Cost element Accounting

2. Cost centre accounting

3. Internal orders

4. Profit centre accounting

5. Product costing

6. Profitability analysis

1. Cost element Accounting: To update controlling records you have to create cost elements

Cost elements are:a. Primary cost elements

b. Secondary cost elements

2. Cost centre Accounts: To view department wise cost

3. Internal orders: To view costs for a specific tasks

4. Profit Centre Accounting: To view profitability, product wise, product group wise (or) location wise if business area is not activated in FI 5. Product Costing: valuation of inventories like finished goods and work in process.

6. Profitability analysis: To view profitability for number of parameters at a time like

Customer wise, product wise, sales organization wise, plant wise, sale order wise

This is called data cube

It is a reporting tool

Basic settings for controlling:FI organization structure

Co. organization structure

Company

Controlling

Company code

Business Areas Cost centre

Scenario 1

Company

Company code = Controlling Area

Business Area ( Cost Centre

Controlling area at company code level, cost element is assigned to Business Area.

Scenario 2

Company = Controlling area

Company code

Business Area ( Cost Centre

(Controlling area at company level)

Scenario (2) is more flexible, because in this scenario when we want to view number of cost centers data for different company codes, we have to go for 2nd scenario.

Also we want view No. of cost centers data for a particular company code we get in 2nd scenario by creating cost center group.

Maintain controlling area:

Path: SPRO ( Controlling ( General controlling ( Organization ( Maintain controlling area

Double click on maintain controlling area (T. Code OKKP)

Select new entries button

Controlling area:

1st scenario: company code: AML

2nd scenario: Any no. (Or) name (Max 4)

Give controlling area: AMLName: Controlling area for AML

Company code ( Controlling Area: select controlling area same as company code

Currency type: select 10 (company code currency)

Once we select 10, your currency field, chart of accounts field, fiscal year variant field updated automatically

Cost centre standard hierarchy: AMLHIER (AML Hierarchy)

Select save button (or) (ctrl + s)

Select yes button for the message, system to create as a standard hierarchy

Select create request button

Short description: Co. Customization for AML

Press enter

Press enter once again to saving the request

Double click on Activate components/control indicators folder


Fiscal year: 2006

For the field cost centre: select component active

Select activate type check box

Order management: select component active

Select profit center check box


Ignore the message, press enter

Double click on assignment of company codes folder


Select the company code: AML


Maintain Number ranges for controlling documents

Same path: (T. Code KANK)

1. Co. documents through posting from FI document: Controlling through posting of accounts in FI Module i.e. called COIN

In FI you have to give the details like

SA Co: Automatically generated number range intervals

O

1 100000

2. Report Co. line items (RKU3)

Posting through FI document

Ex: Wages DrDept A 100000

Wages DrDept B 200000 (COIN)

Wages DrDept C 300000

To Bank

600000 2) Wages A/C Dr 600000

To Bank 600000

At the time of posting which department we are posting is dont know

After Posting (repost to CO items) (RKU3)

We transfer 600000 to various cost centers (or) dept.

600000: 1) Dept A 100000

2) Dept B 200000

3) Dept C 300000

(Transfer line item wise/document wise)

Here 1 FI document and 2 CO. documents are generated

3. Repost costs (RKU1): Incase split the department (or) wrong cost centre postings.

Example: Dept A

Dept ZSalaries

April 100000 ( 20000

May 200000 ( 50000 (Repost to cost line items)

June 200000

July 200000

August 100000Wages: 200000

------------

Total 1000000

Here 200000 Salaries & Wages belongs to dept Z & 800000 belongs to dept AHow we shown the total transaction amount transferred to department wise

Here NO FI documents

Only Co. document

Dept A

Dept B

Salaries A/C

1

100000

20000

2

200000

50000 (Repost cost line items

3

300000

4

50000

5

150000

---------- --------

Total 800000

70000 (Repost Cost)

4) Planning Primary Costs (RKP1) (Budgeting)

Maintain Number Ranges for controlling document (same path)

(Transaction Code KANK) Give the controlling area: AML

Select Maintain groups button

From the Menu select group ( Insert

Text: Co. document No. range intervals for AML

From No: 1 to 100000

Enter

Double click on COIN (Co. through postings from FI)

Double click on RKU3 (Repost Co. line items)

Double click on RKU1 (Reposts costs)Double click on RKP1 (Planning Primary cost)

Select Co. document no. range intervals for AML check box

From the menu select edit ( Assign element group

Save (or) (ctrl + s)Maintain versions:

(Versions are nothing but budgets)

- Planning for whole year (original Budget) 0

- Revised Budget 1

- Re revised Budget 2

Here actual are compared with original/revised (or) re revised budgets

Path: Same Path

Select version 0

Double click on settings for each fiscal year

Give your controlling area: AML

Enter

Once the planning is complete select version locked check box so that no one change planned figuresSave

Cost element Accounting:

To update Co. records we require cost elements

Cost elements are 2 types1. Primary cost elements

2. Secondary cost element

1. Primary cost elements: These are nothing but G/L expenditure/ revenue Account.

Posting to primary cost elements are possible.

2. Secondary cost elements:

- Other than your G/L Account

- Postings are not possible

- Support for allocation/settlement in Co.

Cost element categories:

Primary cost element categories:

1. Primary costs/cost reducing revenues used for expenditure account

3. Accrual/deferral per surcharge ( used for Month end provisions in co

11. Revenues used for sales and other income accounts12. Sales deductions used for expenditure like trade discount/sales conversion etc.

22. External settlement: Allocation from Co to G/L (or) Assets.

Secondary cost element categories:

21. Internal settlement Allocation from Co to Co

31. Order/project results analysis (used for work in process calculation in product costing)

41. Over head rates ( used for raw material over head/production overhead calculation in product costing.

42. Assessment ( used for allocation of service department cost to production departments.

43. Internal activity allocation (This is used for calculation of activity like machine hour rate/labor rate in product costing.

Cost Centre AccountingThis is used to view department wise costs.

a) Creation of primary cost element

May created in FI Area

- Co Area

- Automatic creation of cost element

b) Creation of field status group making cost center mandatory.

c) Assign new field status group in G/L expenditure accounts.

d) Creation of cost centerse) Creation of cost centre groupsf) Creation of cost element groups

g) Posting of transaction is FI

h) To view cost center wise reporta) Creation of primary cost element at FI Area:Use the transaction code: FS00

Select your G/L Account No: 400001

Company code: AML

Enter

Select edit cost element button

Give valid from 01.04.2006 to date 31.12.9999

Enter

Cost element category: select 1 (Primary cost/cost reducing revenues)

Save

Creation of primary cost element at Co. area: (T. Code FS00)

Path: Accounting ( Controlling ( Cost element accounting ( Master data ( cost element ( Individual processing ( create primary (T. Code KA01)

Cost element 400100

Valid from 01.04.2006 to 31.12.9999

Enter

Co. element category 1

SaveAutomatic creation of primary cost elementThere are 3 steps in this area

1st step ( make default settings.

SPRO ( Controlling ( cost element accounting ( master data ( cost element ( automatic creation of primary and secondary cost elements ( make default setting

(T. Code OKB2) Chart of Accounts ( AML

Enter

Accounts from: 400101 to 499999

Save & save in your request Create batch input session:SPRO ( Controlling ( cost element accounting ( Master data ( Cost element ( Automatic creation of primary and secondary cost elements ( make default setting(Create batch input session (T. Code OKB3)

Controlling area: AML

Valid from: 01.04.2006 valid to 31.12.9999

Session name: AML

Batch input user: sap user

Execute (F8)

Execute batch input session:Path: SPRO ( Controlling ( Cost element accounting ( Master data ( cost element ( Automatic creation of primary and secondary cost element ( Execute batch input sessions (T. Code SM35)

Select the session name: AML

Select process button

Select display errors only radio button

Select process button

You get message processing of batch Input sessions completed

Select exit batch input button (F12)

To view the cost elements created

Path: Accounting ( Controlling ( Cost element accounting ( Master data ( cost element ( Individual processing ( Display (T. Code KA03)

Select the drop down button beside cost element

Give the controlling area: AML, enter

Creation of field status group making cost centre mandatory:

Path: (T. Code: OBC4)Select field status variant: AML

Double click on field status group folder

Double click on G004

Double click on general data

Text make it required entry field

Select next group button

Cost centre make it required entry field

Save (or) (ctrl + s)

Save in your requestAssign new field status group G/L expenditure:

Use the transaction code: FS00

`G/L account: 400100 (Salaries)

Company code: AML

From menu ( G/L Account ( Change

Select create/bank/interest tab

Field status group: G004

Save

G/L Account: 400300 (Rent A/C)

Company code: AML

From menu ( G/L Account ( change



Save

Creation of cost centre:

Path: Accounting ( Controlling ( Cost centre accounting ( Master data ( Cost centre ( Individual processing ( Create (T. Code KS01)Cost centre: Dept A

Valid from: 01.04.2006 to 31.12.9999

Enter

Name: Dept A

Depart Cost centre: Department A

Person responsible: A

Cost centre category: 1 (Production)

Hierarchy area: AMLHIER

Business area: AMH

Currency: INR

Save (or) (Ctrl + s)

Ignore the warning message, press enter

Cost centre: Dept BValid from: 01.04.2006 to 31.12.9999

Reference cost centre: Dept A


Enter

Name: Department B

Description: Cost centre department B

Basic data

Person responsible: B



Cost centre: Dept C

Valid from: 01.04.2006 to 31.12.9999

Reference cost centre: Dept A


Enter

Name: Department C

Description: Cost centre department C

Basic data

Person responsible: C

Save (or) (ctrl +s)


Creation of Cost centre group:Path: Accounting ( controlling ( Cost centre Accounting ( Master data ( Cost centre group ( Create (T. Code KSH1)

Cost centre group: AMLProdu

Enter

AMLProdu Production department for Co. area AML

Select insert cost centre button (Shift + F4)

Give the cost centre: Dept A, Dept B

Save

Creation of cost element group:

Path: Accounting ( controlling ( Cost centre accounting ( Master data ( Cost element group ( Create (T. Code KAH1)

Cost element group: AMLADMIN

Enter

AMLADMIN Administration expenses for AML

Select insert cost element button (Shift + F4)

400300 to 400399

Enter & savePosting of transaction in FIT. Code: F 02

Document date: 23.10.2006

Type: SA

Company code: AML

Posting: 40

Account no: 400100 (Salaries)

Enter

Amount: 200000

Cost centre: Dept A

Text: Salary payment

Posting: 40 (one more debit)

Account No: 400300 (Rent account)

Enter

Amount: 50000

Cost centre: Dept A

Text: Rent payment

Posting key: 50

Account No: 200101 (IDBI Current Account)

Enter

Amount: *Business area: AMH

Text: Expenditure for October

Document ( Simulate and saveTo view cost centre wise report:Path: Accounting ( Controlling ( Cost centre accounting ( Information system ( report for cost centre accounting ( line items ( cost centers actual line items (KSB1).

Cost centre: select dept A

Execute

Keep the cursor on first line item

Select doc. Button (Shift + F2)

Select back arrow

Select change layout button (Ctrl + F8)

Select ref doc. No. under column set

Select value in reporting currency under columns.

Select left arrow (or) show selected field button

Select reference document number under column set

Select document number under columns

Select left arrow (or) show selected fields button

Select business transaction under column set

Select reference document number under column

Select left arrow (or) show selected fields button

Enter

Repost Co. line items (RKU3)

No FI document

Only Co. document

Dept A Dept B

Dept C

400100 200000 75000

25000400300 50000

Transfer document wise/line item wise

Report Co. line item: Accounting ( Controlling ( Cost centre accounting ( actual postings ( report line items ( enter (T. Code KB61)Select accounting document number: 33

Company code: AML

Fiscal year: 2006

Execute (F8)

Double click on 200000 (First line item)

New accounts assignment

Amount: 75000

Cost centre: B

Select next item button (Ctrl + F11)

Select next button

New account assignment

Amount: 25000

Cost centre: Dept C

Save

Go and see the cost centre report (KSB1)

Cost centre: dept A

Execute (F8)

To view cost element wise totals

Select cost element column

Select sub total button (Ctrl + Shift + F6)

Repost cost: (RK01)( Split department/wrong postings to cost centre

( Transfer amount wise/cost element wise

( No FI document only Co. document

25000 dept C ( No FI document

10000 Dept C ( Only Co document

Repost cost:

Path: Accounting ( Controlling ( Cost centre accounting ( Actual postings ( Manual re postings of costs( (T. Code: KB11N)

Ccts (old) Dept A

Cost element: 400100 (Salaries)

Amount: 25000

Ccts (New): Dept C

Ccts (old): Dept A

Cost element: 400300 (Rent)

Amount: 10000

Ccts (new): Dept C

Save

Planning cost centre wise:

Path: Accounting ( controlling ( cost centre accounting ( planning ( cost and activity inputs ( change (T. Code KP06)

Version: 0

From period: 1

To period: 12

Fiscal year: 2006

Cost center group: AMLHIER

Select next page (or) page down button

Cost element: 400000 to 499999 Select form based radio button

Free centers to choose cost element from drop down menu and planForm based enter cost element list is available on screen plan against cost element

Select over view screen button (F5)

Cost element: 400100

Enter plan fixed cost: 600000

Distribution key: 0 (Equal distribution)

Select cost element: 400100

From menu ( go to ( period screen F6

Select back arrowFor cost element: 400300

Plan fixed cost: 540000

Distribution key: 1

To plan for department: B

Select combination button (Ctrl + F12)

To go to department: A

Select previous combination button (Ctrl + F1)


To view various reports cost centre wise accounting

Path: controlling ( cost centre accounting ( information system ( reports for cost centre accounting ( plan/actual comparison ( cost centre actual/plan/variance (T. Code S _ ALR _ 87013611)Controlling area: AML

Fiscal year: 2006

From period: 7

To period: 7

Plan version: 0

Cost centre (or) values Dept A

Execute

To go to transactional level

Keep the cursor on salaries A/C and costs

Select call up report button (F7)

Double click on cost centre actual line items

Keep the cursor on first line item

Select document button

How to set up controlling area

Path: Accounting ( Controlling ( Cost centre accounting ( environment ( set controlling area (T. Code OKKS)Controlling area: AML

Period lock:Path: Accounting ( Controlling ( Cost centre accounting ( environment ( period lock ( change (T. Code OKP1)Controlling area: AML1

Fiscal year: 2006Selected button (FS)

FI

COa) Transaction

effect FI and CO (COIN)

b) Transaction

Affect only Co (RKU1/RKU3) No

c) Transaction

effect only FI balance sheet No

Keep the cursor on 01

Select lock period button (F5)

Save

Reconciliation Ledger( Reconciliation used when

( When number of company codes having one controlling area ( 2nd scenario

( It generates documents only in FI

( It can be run at controlling area

If salaries paid and posted FI at (F 02)

Salaries A/C

100000

Out of 100000/- salaries 20000 belongs to company code ASL (Dept x) balance 80000/- belongs to company code AML

If we use the reconciliation account at cost centre level and the 20000/- is transferred to company code ASL (Dept x) it passes the entry in Financial automatically Here

Reports at ( No FI records

Co. area

In AML BooksASLDr20000

To Salaries A/C20000

In ASL Books

Salaries A/CDr 20000

To AML A/C 20000

Customization at finance:Copy company code AML customization including accounting to

Path: SPRO ( enterprises structure ( definition ( financial accounting ( edit, copy, delete, check company code

Double click on copy, delete, check company code (T. Code EC01)

From the menu select organization object ( copy organization object

From company code: AML

To company code: ASL

Enter

Select yes for the message (For copy the G/L Accounts)

Select No button to allocate a different local currency

Ignore the message press enter


Short description, customization for Aravind Steels limited

Press enter

Enter once again to saving the request

Go on press enter till you got the message company code AML copied to ASL with out 75 number range objects.

Ignore the message press enter

Select back arrow

Double click on edit company code data

Select position button

Give the company code: ASL

Enter

Select company code: ASL

Select details button

Change the company name to: Aravind Steels limited

Save & Save in your requestAssign company code to company

Path: SPRO ( enterprises structure ( Assignment ( Financial Accounting ( Assign Company code to company

For company code: ASL

Assign company AVG then select

Save button (or) (ctrl + s)

Save in your requestDocument type SA should allow inter company posting

Use the transaction code: OBA7


Document type: SA

Enter

Select the document type: SASelect details buttonSelect inter company posting check box

SaveCreation of 2 G/L Accounts AML Books ASL Books

a) FI/CO reconciliation A/C 400150 A/C (Expenses A/C with out cost element)

b) ASL A/C 0 200160

a) FI/CO reconciliation Accounts

( 400150)b) AML ( A/C No: 200161

Use the transaction code:FS00Give the G/L account No: 400150

Company code: AML

Select with template button

Give the G/L account: 400100 (salaries account)Company code: AML

Enter

Change short & long text: FI/CO reconciliation account


Field status group: select ICCF (Co ( FI reconciliation posting)Save

Give the G/L Account NO: 400150

Company code: ASL


Give the G/L account No: 400150

Company code: AML

Enter & save

G/L Account No: 200160

Company code: AML


Give the G/L account No: 200120 (Inventory raw material)

Company code: AML

Enter

Change short & long text to: Aravind steels limited



Save

G/L Account No: 200161

Company code: ASL


Give the G/L Account No: 200160

Company code: AML

Enter

Change the short text & long text to: Aravind mills limited

Save Prepare cross company code transactionsSPRO ( financial accounting ( general ledger accounting ( business transaction ( prepare cross company code transactions

FI Customization (T. Code OBYA)Give the company code 1: AML

Company code 2: ASL

Enter

Posted in AML

Cleared against ASL

Debit posting key: 40

Account debit: 200160

Credit posting key: 50

Account credit: 200160

Company code: 2

Posted in: ASL

Cleared against: AML

Debit posting key: 40

Account debit: 200161

Credit posting key: 50

Account credit: 200161


Save in your requestCo. Customization:

Assign company code ASL to controlling area AML:Use the transaction code: OKKP

Select controlling area: AML


Company code to controlling area ( select cross company code cost accounting

Document type: SA

Save

Save in your requestDouble click on assignment of company codes folder:Select company code: AML

Select copy as button

Change the company code to: ASLEnter & save

Define adjustment accounts for reconciliation posting:

Path: SPRO ( controlling ( cost element accounting ( reconciliation ledger ( define adjustment accounts for reconciliation postings

Double click define accounts for automatic postings

From the menu select extras ( select controlling area

Give your controlling area: AML

Enter

Select change account determination button

Save

Give the account No: 400150 (FI/CO reconciliation account)Save & save in your requestSpecify document no. range for reconciliation posting:Same path: (T. code: OK13)Give the controlling area: AML

Select change intervals button

Select interval button

Give the No. range: 01


Enter & save

Creation of cost centre (path: KS01)Give the cost centre: Dept X

Valid from: 01.04.2006 to31.12.9999Reference cost centre: dept A


Enter

Change the name to dept XDescription, cost centre dept XPerson responsible: XCompany code: change to ASL



Posting of salaries in company code AML (F -02)


Type: SACompany code: AML

Posting key: 40Account No: 400100 (Salaries)

Enter

Amount: 100000

Cost centre: Dept A

Text: salary payment

Posting key: 50

Account No: 200105 (SBI current account)

Enter

Amount: *

Business area: AMH

Text: +

Document ( Simulate & save

Go and see the G/L account: (FS10N)

Give the G/L account No: 400100 (Salaries)

Company code: AML

Fiscal year: 2006

Execute

Select back arrow


Execute


Cost centre: Dept A to Dept C

Execute

Select back arrow

Give the cost centre: Dept x

Execute

Reposts costs: (KB11N)

Give the cost centre old: (Dept A)

Cost element: 400100 (Salaries)

Amount: 20000

Cost center new (Dept x)

Save

Go and see the G/L Account: (FS10N)

Give the G/L account No: 400100 (salaries)

Company code: AML

Fiscal year: 2006

Execute

Select back arrow


Execute

Go and see the cost centre report (KSB 1)

Cost centre: Dept A to Dept C

Execute

Select back arrow

Give the cost centre: Dept x

Execute

Reconciliation ledger run:

Path: accounting ( Controlling ( Cost element accounting ( Actual postings ( Reconciliation with FI (T. code: KALC)

Select controlling area radio button

Give the controlling area: AML

Period: 8

Fiscal year: 2006

Deselect test run check box

Execute

Select reference document No: 1

Select back arrow

Select reference document No: 2

Cross company code postings in FI

If outstanding expenses paid by ASL on behalf of AML Entries

In AML- Outstanding expenses A/C Dr

To ASL

In ASL Books -AML Dr

To Bank

Use the transaction code: (F-02)

Give the document date: 01.11.2006

Type: SA

Company code: ASL

Posting key: 50

Account No: 200105 (SBI Current Account)

Enter

Give the amount: 5000

Business area: AMH

Text: Out standing expenses payment on behalf of AML

Posting key: 40

Account No: 100500 (Outstanding expenses)

New company code: AML

Enter

Amount: *

Business area: AMH

Text: +

Document ( Simulates & Save (or) (ctrl + s)

Double click on 3rd line item

Give the business area: AMH

Text: +

Select next item button

Business area: AMH

Text: +


Select continue button

Accrual orders: (Inputed cost calculations)- This is used for month and provisions in Co

- It generates only document in CO

- Cost element category 03 Accrual/deferred per surcharge

- For irregular expenditure we use this accrual orders

If the provision made only in year end in FI records.

For the last month the cost of the product is high. Hence provision is made in Co regards for every month to reduce the product cost

In this scenario

1st Scenario

30/11/06Bonus A/CDr (Dept A)

To Outstanding A/C

01/12/06Outstanding A/C Dr

To Bonus A/C

2nd Scenario (open item management)

30/11/06Bonus A/CDr (Dept A)

To Outstanding A/C

(Make entry every month)

3rd Scenario (Made provision for Bonus (in Co. Records)Salaries A/CDr100000 (Dept A)

To 10% Bonus

10000If bonus paid year ending

Bonus A/CDr (Dummy A/C)120000

To Outstanding expenses A/C

120000

Creation of G/L account of bonus fund (FS00)

Give the G/L account No: 400110

Company code: AML


Give the G/L account No;: 400100 (Salaries A/C)

Company code: AML

Enter

Change short text & G/L account long text: Bonus account

Save


Give valid from date: 01.04.2006 to 31.12.9999

Enter

Cost element category: select 3 (Accrual/deferred per surcharge)


Creation of dummy cost centre: (KS01)

Give the cost centre name: Depart W

Valid from 01.04.2006 to 31.12.9999Give the reference cost centre: Dept A


Enter

Change the name to: Dept W

Change the description: Cost cost centre dept W



Maintain overhead structure:SPRO ( controlling ( cost element accounting ( Accrual calculation percentage method ( maintain overhead structure (T. Code: KSAZ)

Select create overhead structure button (F7)

Overhead structure: AML1

Description: Bonus calculation for AML

Select save button

Give the Row 10: Base: AML 1

Enter

Give the name: Salaries

Select create button

Row 20: overhead rate: AML2

Enter

Give the name: Bonus

Dependency: select KRS1 (Controlling Area)


Give from to: 10 to 10

Credit: AML

Enter


Save


Keep the cursor on overhead structure: on AML1

Select assignments button


Select: Actual accrual radio button

Select continue button

Valid from: 01 2006 valid to 12 2006

Overhead structure: AML1

Save

Double click on overhead structure on AML

Keep the cursor on actual accrual

From menu select environment ( Bases

Double click on AML1 (Salaries)

Give from cost element: 400100 (Salaries A/C)

Save

Select back arrow


From the menu select environment ( Overhead rates

Double click on AML2 (Bonus)

Valid from: 01 2006 valid to 12 2006

Actual overhead rate: 10%

Save

Select back arrow


From the menu select environment ( Credits

Double click on AML bonus

Company code: AML

Business area: AMH

Valid to 12 2006


Cost centre: Dept W

Save

Assign Co. number range interval for the process (KAZI)

i.e. Actual cost centre accrual

Use the transaction code: KANK


Select maintain groups button

Double click on KAZI

Select: Co document No. range interval for AML check box


Save

Salaries posting in cost centre in dept B (F 02)


Type: SA

Company code: AML

Posting key: 40

Account No: 400100(Salaries A/C)

Enter


Cost centre: Dept B

Text: salaries posting

Posting key: 50

Account No: 200105 (SBI current A/C)

Enter

Amount: *

Business area: AMH

Text: +


Accrual calculationAccounting ( controlling ( cost element accounting( Actual postings ( accrual calculation (KSA3)Select cost centre radio button

Give the cost centre: Dept B

Period: 8

Fiscal year: 2006

Deselect: test run check box

Select: Details list check box

Execute

Select next list level button


Give the cost centre: Dept B

Execute

Select back arrow

Give the cost centre: Dept dummy

Execute

Bonus provision on 31.03.2007 (F -02)

Document date & posting date: 31.03.2007

Type: SA

Company code: AML

Posting key: 40

Account: 400110 (Bonus A/C)

Enter

Ignore the warning messages, press enter

Give the amount: 10000/-

Give the cost centre: dept dummy

Text: Bonus provision

Posting key: 50

Account No: 100500 (Outstanding expenses)

Enter

Amount: *

Business area: AMH

Text: +


Bonus in the cost centre report (KSB1)Give the cost centre: Dept Dummy

Posting date: 01.04.2006 to 31.12.2007

Execute

Period and closing:Service cost

Production cost

Enter

enter

While posting service cost, we dont know to which production centre it is applied. Only month ending transfer cost from one cot centre to other cost centers.

Method: 1: (Here we transfer primary cost as well as secondary cost)

- Receiving cost centre can not track the original cost elements

- Co. document No. range intervals ( RKIU

Method: 2 (Distribution): Transfer only primary cost Receiving cost centre can track the original cost element

Sender should be only cost centre

Co. document No. range interval RKIV

Method: 3 (Periodic posting): Transfer only primary cost

Receiving cost centre can track original cost element

Sender can be any cost object ( Cost centre/orders

Co. document No. range intervals ( RKIB

Method: 4 (Indirect actual allocation):

Transfer quantities and values

Co. document member range intervals ( RKIL

Example:Service dept: CSalaries 100000

Wages - 200000

Rent - 50000 Dept A: 90% (315000)

---------- Dept B: 10% (35000)

350000

Cycle: If allocation of cost elements are in different ways. We have to create No. of segments of No. of cycles.

If service dept:

Production DeptSalaries 100000

A B

Rent - 20000 75% 25%

Here we have 2 methods:

1. One cycle No. of segments

XYZ

Seg1

Seg2

2nd Method:XYZ

XYZ

Seg1

Seg2

Here to better follow 1st method because of you can make any no. of segments automatically.

In second method we can create up to 10 methods.

Statistically key figures: (S. K. F)- Statistical figures are used to allocation of costs from one cost centre to other costs centers.

Example: No. of employees, sq. meter area etc.

- It can be fixed or total

- If you select category fixed, the values are common till the year end, if we dont change in between No. of employees.

- If we select category of total, the values are to be entered each month Ex: No. of electrical units consumed, no. of telephone calls.

- Here it generates co document (Number ranges for the process (RKS (Actual statistical key figures)Assessment:

Cost centre

Production

Production

Service Dept C Dept A

Dept B (Key Figure)

Salaries (No. of employees)

Rent (Percentage basis)Creation of statistical key figure employee

Path: Accounting ( Controlling ( Cost centre accounting ( master data ( statistical key figures ( individual processing ( create (KK01)

Give the statistical key figure: Emp

Enter

Give the name: Employee

Statistical figure unit measurement: Select PER (Persons)

Key figure category: select fixed values

Save

Assign Co No. range interval for the process of RKS (Use the Transaction code: KANK)

Co. Area: AML


Double click on the process RKS (Enter statistical figures)

Select Co. document No. range interval for AML check box


Save (or) (ctrl + s)Enter statistical key figures:Path: Accounting ( controlling ( cost centre accounting ( actual postings ( statistical key figures ( enter (KB31N)

Give the receiving cost centre: Dept A

Statistical key figure: Emp (Employee)

Give the total quantity: 75

Cost centre: Dept B

Statistical key figure: Emp

Total quantity: 25

Save

Note: enter the document date & posting date: 06.10.2006

Creation of secondary cost element

Path: Accounting ( Controlling ( Cost centre accounting ( master data ( cost element ( individual processing ( create secondary (T. Code: KA06)

Give the cost element No: 1000000

Valid from: 01.04.2006 to 31.12.9999EnterGive the name: Assessment cost element

Description: Assessment cost element

Cost element category: select 42 (Assessment)

Save

Creation of assessment cycle

Path: Accounting ( controlling ( cost centre accounting ( period end closing ( current settings ( define assessment (S _ALR _ 87005742)

Double click on create actual assessment

The final T. Code is (KSU1)Cycle: AML1

Start date: 01.04.2006

Enter

Text: Cost allocation using assessment

Select: interactive check boxPurpose of interactive check box:

Example:

Service dept C (Rs. 100000):It allocated to Product A 80% - 80000

Prod Dept B 10% - 10000

Service Dept X 10% - 10000(Here it will become 0 (Zero)

Service Dept X: 200000

+ 10000 (From service dept C)

--------- 210000 It allocated to

Prod Dept H - 60% - 126000

Prod Dept I - 20% - 42000

Prod Dept C- 20% - 4200042000/- allocated to service dept c will be again reallocate to various dept. up to it will becomes zero (0)

If you select interactive check box it will allocate the costs up to zero automatically.


Save in your request

Select attach segment button:

Give the segment name: segment 1

Name: salary allocation

Assessment cost element: select 1000000

Sender rule: selected posted amounts

Share in percentage: 100%

Select actual value origin radio button

Receiver rule: select variable portions

Variable portion type: select actual statistical key figures

Select senders/receivers tab

Sender cost centre: Dept X

Cost element: 400100 (salaries)

Receiver cost centre group: select AML prodSelect receiving tracing factor tab

Statistical key figure: Emp

Select receiver weighing factor tab

Save

Save in your requestSelect attach segment button

Segment name: segment 2 (Rent allocation)

Assessment cost element: select 1000000

Sender rule: Posted amount

Sharing percentage: 1001

Select origin value radio button

Receiver rule: Fixed percentages

Select senders/receivers tab

Sender cost centre: Dept C

Cost element: 400300 (Rent)

Receiver cost centre group: AML ProdSelect receiver tracing factor tab

Statistical key figure: Dept A 40%

Dept B 60%

Save

Save in your requestAssign Co number range interval for the process (RKIU) (Use the transaction code KANK)Controlling area: AML


Double click on RKIU (Actual overhead assessment)

Select Co. document number range intervals for AML check box

From the menu select edit ( Assign element groupSave (or) (ctrl + s)


Give the cost centre: Dept C

Give the period: 01.10.2006 to 31.10.2006

Execute

Assessment Run:Path: Accounting ( Controlling ( cost centre accounting ( period end closing ( single functions ( allocations ( Assessment (KSU5)Period: 7

Fiscal year: 2006

Deselect: Test run check box

Select the cycle: AML 1

Execute

Select receiver button

Go and see the cost centre report (KSB1)Give the cost centre: Dept A

Posting date: 01.10.2006 to 31.10.2006

Execute

Internal orders:Internal orders are used & decision making purpose

To view costs for a specific task

Vehicle wise costs/ - Based on petrol expenses & repair and maintenance

Telephone wise costs/exhibition costs/production order costs

-Orders are of 2 types

1. Real orders

2. Statistical orders

1. Real orders: 2. Statistical orders:

- Settlement possible - Not possible

- Settlement possible in cost centre, - Only for information/decision making G/L Account & Asset- Settlement to cost centre Internal settlement (With in Co)

- Settlement to G/L account External settlement

STATISTICAL ORDERS:Example: Telephone orders:

FI posting ( G/L account no 100000

Cost centre administration 100000

Order ( Telephone 100000

(We did not allocate the total amount to cost centre. Only 100000 is allocated because one is real and another is statistical)

a) When we post to 2 cost objects only. One object will be real and others will be statistical.b) At the time of creation of order, there is a check box for statistical order.

Order

Cost centre

a) Select statistical order check box Statistical Real

b) Deselect statistical order check box Real

Statistical

In the month ending cost centers cost will be apportioned to product.i. Real Orders:

Vehicle orders:

(Allocation from order to cost centre)

Order Red

FI posting G/L Account

Petrol expenses

Order Vehicle No: 1234

Settlement: It allocated to Dept A, Dept B & Dept C.

(Allocation may be percentage/ratio/amount basis)

ii. Statistical order (allocation from cost centre to cost centers)FI posting ( G/L account

Cost centre: Administration (Red)

Order vehicle 1234 statistical

Cost centre admin: Dept A, Dept B & Dept C (Assessment)1st Scenario (Statistical orders)Define order type:SPRO ( Controlling ( Internal orders ( order master data ( define order types (T. Code: K0T2 _ FUNCAREA)


Order category: 01 (Internal order (Controlling))

Enter

Give the order type: AMLT

Description: Telephone orders for AML

Planning profile: 000001 (General budget/plan profile)

Object class: Select overhead costs

Select release immediately check box

Save

It gives the message No. range not processed



Select Assign/change intervals button beside No. range intervals

Double click on AMLT

Select Motor pool A ZZZZZZZZZZZZ (External check box)



Creation of field status group making cost centre and internal order mandatory:

(T. code: OBC4)Select field status variant (AML)

Double click on field status groups folder

Select G004 cost Accounts


Change the field status group to G002

Change text to: Cost Accounts (CC & IO) required

CC. cost centre & IO (Internal order)

Enter & Save

Save in your requestSelect G002 and double click

Double click on additional account assignments

Select CO/PP order: required entry field

Save

Creation of G/L Account Telephone expenses: (FS00)


Company code: AML


Give the G/L Account No: 400300 (Rent A/C)

Company code: AML

Enter

Change the short text & long text to telephone expenses


Change the field status group to: G002

Save


Valid from 01.04.2006 to 31.12.9999

Enter

Cost element category: 1

Save

Creation of Internal order:

Path: Accounting ( Controlling ( Internal orders ( master data ( Special functions ( order ( Create (KO01)Give the order type: AMLT

Enter

Order: TEL 66626246 (Telephone No)

Short text: Telephone No: 66626246

Company code: AML

Business area: AMH

Select control data tab

Select statistical order check box

Save

One more order type: AMLT

Enter

Give the order: TEL 66626247

Company code: AML

Business area: AMH


Select statistical order check box

Save

Creation of order group:

Path: Accounting ( Controlling ( Internal orders ( Master data ( Order group ( create (KOH1)Give the order group name: AML HYD TEL

Enter

Give the description: Hyderabad Telephones for AML

Select insert order button

Select: TEL 66626246 & TEL 66626247

Save

Posting of transaction in FI: (F 02)Give the document date: 13.11.2006

Type: SA

Company code: AML

Posting key: 40

Account No: 400305 (Telephone expenses)

Enter


Select cost centre: Dept A

Give the order No: TEL 66626246

Text telephone expenses

Posting key: 50

Account No: 200105 (SBI Current Account)

Enter

Amount: *

Business area: AMH

Text: +

Document ( Simulate & Save

To view order wise report:Accounting ( Controlling ( Internal orders ( information system ( Reports for Internal orders ( line items ( Orders: Actual time items (KOB1)

Give the order No: TEL 66626246

Execute

Select the line items

Select document button

Planning order wise:Accounting ( Controlling ( Internal orders ( Planning ( Cost and activity inputs ( Change (KPF6)

Give the version: 0

From period: 8

To period: 8

Fiscal year: 2006

Order: TEL 66626246

Cost element: 400305 (Telephone expenses)

Select from based radio button

Select overview screen button

Total plan cost: Enter20000

Save (or) (Ctrl + s)

To variance report order wise:

Path: Accounting ( Controlling ( Internal orders ( Information systems ( Reports for internal orders ( Plan/actual comparisons ( orders: Actual/plan/variance

(S _ ALR _ 87012993)Give the controlling area: AML

Fiscal year: 2006

From period: 8

To period: 8

Plan version: 0

Give the order value: TEL 66626246

Execute

Real orders:Creation of secondary cost element called settlement cost element (T. Code: KA06)Give the cost element: 1000001

Valid from: 01.04.2006 to 31.12.9999

Enter

Give the name: Settlement cost element

Give the description: settlement cost element

Cost element category: select 21 (Internal Settlement)

Save

Creation of field status group making order requiredUse the transaction code: OBC4

Select field status variant: AML

Double click on field status groups button

Select G002 (Cost Account CC & IO required)


Change the field status group to: G010

Change the text: cost accounts IO required

Enter & Save

Save in your requestSelect G010 and double click

Double click on additional account assignments

Cost centre: make it optional entry

Save

Creation of G/L Account: Petrol expenses (FS00)


Company code: AML

Select with template buttonGive the G/L Account No: 400300Company code: AMLEnterChange short text & Long text to: Petrol expensesSelect: Create/bank/interest tabField status group: Select G010SaveSelect edit cost element buttonEnterCost element category: 1SaveMaintain allocation structures:

Path: SPRO ( Controlling ( Internal orders ( Actual postings ( settlement ( Maintain allocation structures.


Allocation structure: A5

Text: Co allocation structure for AML

Save, save in your request

Select: A5

Double click on assignments folder

Select: New entries button

Give the assignment: AML

Text: Vehicle order settlement

Save

Select: AML

Double click on source folder

From cost element: 400306

Save

Double click on settlement cost elements folder


Receiver new entries button

Receiver category: Select CTR (Cost centre)

Settlement cost element: Select 1000001

Save

Maintain settlement profiles:

Same path

Double click on maintain settlement profiles

Select: New entries button

Give the settlement profile name: AML

Description: settlement profile for AML

Select: To be settled in full radio button

Allocation structure: A5

Default object type: CTR (Cost centre)

Select: % settlement check box

Select: equalance No. check box

Select: Amount settlement check box

Under valid receivers

For cost centre: Select settlement required

Max No. of dist trials: 999

Residence time: 12

Save & Save in your request

Maintain number ranges for settlement documents

Same path: (T. Code: SNUM)


Double click on AML

Select standard accounting document check box


Save (or) (ctrl + s) Define order type: (T. code: KOT2 _ FUNCAREA)Select new entries button

Order category: select 01 (Internal order controlling)

Enter

Give the order type: AMLV (Vehicle order type for AML)

Settlement profile: Select AML

Budget profile: 000001 (General budget profile)

Object class: Select over head costs

Select release immediately check box


It gives the message No. range not processed



Select Assign/change intervals button

Double click on AMLV

Select Motor pool A ZZZZZZZZZZZZ check box



Assign Co. number range interval for the process KOAO (Actual settlement)

Use the T. Code: KANK)



Double click on KOAO (Actual settlement)

Select Co. document No. range intervals for AML check box


Save Creation of vehicle order: (T. Code KOO1)Give the order type: AMLV

Enter

Give the order: AP9A1234

Short text: Vehicle No: AP9A1234

Give the company code: AML

Business area: AMH


Deselect statistical order check box

Select settlement rule button

Category: Select CTR (Cost centre)

Settlement receiver: Dept A Percentage: 70%

Category: CTR (Cost centre)

Settlement receiver: Dept B Percentage: 30%

Save


Posting of transaction in FI (F 02)Give the document date: 15.11.2006

Type: SA

Company code: AML

Posting key: 40

Give the G/L Account No: 400306 (Petrol expenses)

Enter


Give the order: AP9A1234

Text: Petrol expenses

Posting key: 50

Account No: 200105 (SBI current account)

Enter

Amount: *

Business area: AMH

Text: +


Settlement of internal order to cost centers:

Path: Accounting ( Controlling ( Internal orders ( period end closing ( Single functions ( Settlement ( Individual processing (K088)Give the order No: AP9A1234

Settlement period: 8

Fiscal year: 2006


Select check transaction data check box

Execute

Select details list button

Budgeting and availability control

SAP given 2 types of Budget

Plan Budget

1. Plan period wise1. Budget for year wise

2. We can plan each element wise2. Budget for the whole order

3. Micro level3. Macro level

4. Called availability control

When you posting actual 1. If the budget cross more than 90% of budget

a. It gives warning message (or)

b. It gives warning message and inform to budget lead (or)

c. Give error message

Number range interval: 04 (Hot coded)

Number range is at client level (Client wise)

Define number range intervals for budgeting

SPRO ( Controlling ( Internal orders ( Budgeting & Availability control ( Maintain No. ranges for budgeting (T. Code: OK11)Select change intervals button

Select intervals button: No: 04From: 4000000000 to 4999999999

Enter

Define tolerance limits for availability control

Same path



Profile: 000001 (General budget profile)

Transaction group: Select ++ (All activity groups)

Action: select 2 (warning with maid to person responsible)

Give the usage: 90%



Specify exempt cost element from availability control(Exempted cost elements from budget)

Same path:Select new entries button


Give the C/C No: 400100 (Salaries A/C)

Save in your requestMaintain budget manager

Same path:Select new entries button


Order type: AMLV

Object class: Select OCOST (over head)

Give the user ID: SAPUSER



Budgeting:Accounting ( Controlling ( Internal orders ( Budgeting ( Original budget ( Change (KO22)Give the order No: AP9A1234

Select original budget button

Give the budget amount: 200000

Enter

From the menu select extras ( Availability control ( Activate

Save

Posting of Transaction in FI (F 02)


Type: SA

Company code: AML

Posting key: 40

Give the A/C No: 400306 (petrol expenses)

Enter


Give the order No: AP9A1234

Text: Petrol expenses

Posting key: 50

Account No: 200105

Enter

Amount: *

Business area: AMH

Text: +


Ignore the message, press enterTo view the inbox of the budget head

SAP menu ( Office ( Work place (T. code SBWP)Select inbox folder

Double click on the message

It gives the message

Capital work in progress line item settlement CWIP _ M/L

Freight charges

Installation charges

Define settlement profile

SPRO ( Financial accounting ( Asset accounting ( Transactions ( Capitalization of assets under construction ( define/assign settlement profile

Double click on define settlement profile

The transaction code is (OK07)

Select settlement profile A1 (settlement assets under construction)


Select to be settled in full radio button

Allocation stock: A1 Co. allocation structure

Default object type asset type: FXA

Select percentage settlement check box

Select equalance Nos check box

Select amount settlement check box

Under valued receivers for fixed assets

Select settlement required

Document type: AA

Max No. of distribution rules: 999

Residence time: 12

Save

Select back arrow 2 times

Double click of assign settlement profile to company code

Select for company code: AML assign settlement profile A1

Enter & Save


Creation of capital work in progress (Asset master) (T. Code: AS01)

Give asset class: AML 4000 (Capital work in progress)

Company code: AML

Enter

Description: C. W. P general

Capitalization: 15.06.2006

Select time dependant tab

Business area: AMH

Select depreciation area tab

Dep. Key: 0000

Save

Machinery purchase postings: (T. Code (F 90)Give document date: 01.08.2006

Posting date: 01.08.2006

Type: KR

Company code: AML

Posting key: 31

Vendor No: 8700001

Enter



Business area: AMH

Text: Machinery purchase posting

Posting key: 70

Account No: 500000 0

Transaction type: 100

Enter

Remove TDS codes

Enter

Amount: *

Text: +


Fright payment: (F -02)


Posting date: 10.09.2006

Type: SA

Company code: AML

Posting key: 70

Account: 500001 0

Transaction type: 100

Enter


Give amount: 25000

Text: Fright payment

Posting key: 50

A/C No: 200105 (SBI Current A/C)

Enter

Amount: *

Business area: AMH

Text: +


Creation of machinery asset master (AS01)

Give asset class: AML 2000(Dept A)

Company code: AML

Enter

Give description: Machine No: 40

Capitalized on: 14.11.2006

Select time depended tab

Business area: AMHSelect description area tab

Give description key: AML1

Useful life: 20 years

Period: 4

Ordinary depreciation start: 17.11.2006

Save

Settlement of capital work in progress to Asset

Path: Accounting ( Financial accounting ( Fixed assets ( Capitalized asset under construction ( Distribute (T. Code: AIAB)

Give company code: AML

Asset: 500001

Sub no: 0 ( Execute

From the menu select edit ( Select ( Select all

Select enter button

Category select: FXA Asset

Settlement receiver: 200004 0

Give percentage: 100

Select back arrow

Save

Select settlement button

Give the asset value dated: 17.11.2006

Text: asset settlement


Execute

Go and see the document FB03

Enter

Profit Centre Accounting

- To view profitability product group wise/product wise/location wise/

If business area is not used in FI

1) One location No. of product groups

Hyderabad

| | |

Cement Steels Pharma

In that case you can get profitability.

2) Each location different product group

Hyderabad Bangalore

Mumbai

Cement Steel

Pharma

Profitability as well as balance sheet

The advantage of profit centre will be derived through derivation rules.

Example: expenditure Through cost centers

Revenues Automatic account assignment

In case of balance sheet items through business area

We have to create a dummy profit centre

Transfer to respective profit centre

We create derivation rules. Future transaction will not go to dummy profit centre.

Set controlling area:SPRO ( Controlling ( Profit centre accounting ( Basic settings ( Set Controlling area

Give controlling area: AML

Enter

Maintain controlling area settings:

SPRO ( Controlling ( Profit centre accounting ( Basic settings ( controlling area settings ( maintain controlling area settings (T. code: OKE5)

Standard hierarchy: AML

Select elimination of internal business volume check box

Profit centre local currency type

Select 20 (i.e. controlling area currency)

Select confirm button

Select store transactions currency check box

Save

Creation of dummy profit centre:Path: SPRO ( controlling ( Profit centre accounting ( Master data ( Profit centre ( create dummy profit centre (T. code: KE59)Double click on create dummy profit centre

Give dummy profit centre: AML dummy

Select basic data button

Give the name: AML dummy

Description: Dummy profit centre for AML

Profit centre group: AML

Save

Set control parameters for actual data

Path: SPRO ( Controlling ( Profit centre accounting ( Basic settings ( controlling area settings ( Activate direct postings ( set control parameters for Actual data

(T. Code: 1KEE)


From year: 2006

Select line item check box

Select on line transfer check box

Save

Maintain plan versions

Path: SPRO ( Controlling ( Profit centre accounting ( basic settings ( controlling area settings ( activate direct postings ( plan versions ( maintain plan versions

Select version: 0

Double click on settings for profit centre A/C folder


Year: 2006

Select on line transfer check box

Select line item check box

ER (Exchange rate): Type: B (Bank setting)

Select save button

Save in your requestDefine number ranges for local documents

Path: SPRO ( Controlling ( Profit centre accounting ( actual postings ( Basic setting actual ( define number ranges for local documents (T. Code GB02)


Select actual document from direct posting with GB01 check box

From the menu select intervals maintain

Give your company code: AML

Enter


Year: 2006


Enter & Save

Select back arrowSelect planned document from direct posting with GB01 check box

From menu select interval maintain

Give your company code: AML

Enter


Year: 2006

From: 100001 to 200000

Enter & Save

Creation profit centre:

Path: Accounting ( Controlling ( Profit centre accounting ( Master data ( profit centre ( individual processing ( create KE51

Give the profit centre: Cement

Select master data button

Analysis period 01.04.2006 to 31.12.9999

Give the name: Cement

Long text: Profit centre cement

Person response: A


Select activate button

Profit centre: STEEL

Select master data button

Name: Steel

Long text: profit centre steel

Person response: B


Select activate button

Assign profit centre in cost centreAccounting ( Controlling ( Cost centre accounting ( Master data ( cost centre ( Individual processing ( change (T. code: KS02)Give the cost centre: Dept AEnter

Assign the profit centre: Cement

Select save button


Cost centre: Dept B

Enter

Give profit centre: Steel

Select save button


Creation of revenue element (FS00)

G/L account No: 300000 (Sales account0

Company code: AML

Enter


Enter

Cost element category: Select 11 (Revenues)

Save

Maintain automatic account assignment of revenue elements

Path: SPRO ( Controlling ( Profit centre accounting (Actual postings ( Maintain automatic assignment of revenue elements (T. Code: OKB9)




Account assignment detail

Select business area is mandatory

Save, Save in your request

Select AML and then double click on detail per business area/select new entries button

(1)

Hyderabad

| | |

Cement

Steel Pharma

300000 Sales cement

Hyd ( Cement

300001 Sales steels

Hyd ( Steels

300002 Sales Pharma

Hyd ( Pharma

(2)Hyderabad

Bangalore

Mumbai

Cement

Steel Pharma

300000 Sales

Hyderabad - cement

Bangalore Steel

Mumbai Pharma


Give the profit centre: Cement

Give the business area: AMB

Give the profit centre: Steel

Save

Choose additional balance sheet & Profit & Loss A/CIt is applicable only second scenarioPath: Same path

Select choose accounts

Transaction code: 3KEH


Account from: 100000 to 299999

Default profit centre: Cement

Save & Save in your request

Select profit centre detail button

Select create step button

Give the step description: Profit centre derivation for item through Business area

Under define name: GSBER (Business area)

Save

Select maintain rule values button

Select source field interval on/off button

Note down A/C No: 100000 to A/C No: 299999

Business area: AMH

Give the up due profit centre: Cement

From A/C: 100000 to A/c: 299999

Business area: AMB

Profit centre: Steel

Creation of Accounts groupPath: Accounting ( Controlling ( Profit centre accounting ( Master data ( Account group ( Create (T. Code KDH1)

Give the account group: PL items

Enter

Profit & Loss account for AML

Select insert accounts buttonGive account 300000 499999

Save

Select back arrow

Next A/C group: BS items

Enter

Give the description: Balance sheet account for AML

Select insert account button

Give the range 100000 to 299999

Save

Planning profit centre wise for P&L items

Path: Accounting ( Controlling ( Profit centre Accounting ( planning ( Cost/revenues ( Change (T. Code 7KE1)

Version: 0

From period: 8 to period: 8

Fiscal year: 2006

Company code: AML

Profit centre: Cement

Account group: PL items Select from based radio button


For A/C No: 300000(Sales)

Profit centre reporting currency: 500000

For A/C No: 400100 (salaries)

Profit centre reporting currency: 400000

SavePlanning for Balance sheet Accounts profit centre wise

Path: Accounting ( Controlling ( Profit centre accounting ( Planning ( Balance sheets accounts ( change (T. code: 7KE3)

Version: 0


Fiscal year: 2006

Company code: AML

Profit centre: Cement

A/C group: BS items

Select from based radio button


For A/C No: 100300 (SBI rupee term loan)Plan: 100000For account No: 200105

Plan: 100000

Save

Credit sales posting in FI (F 22)

Give document date: 20.11.2006

Type: DR

Company code: AML

Posting key: 01

Account No: 6200001

EnterGive the amount: 450000

Business area: AMH

Text: Credit sales postings

Posting key: 50

Account No: 300000(Sales A/C)

Enter

Amount: *

Business area: AMH

Text: +

Document ( Simulate


Save (or) ctrl+s

Expenditure posting (F 02)Document date: 20.11.2006Document type: SA

Posting key: 40

Account No: 400100 (salaries A/C)

Enter

Give amount: 425000

Cost centre: Dept A

Text: Salary payment

Posting key: 50

Account No: 200105 (SBI Current account)

Enter

Amount: *

Business area: AMH

Text: +

Document ( Simulate & save To view various reports profit centre wise for P&L itemsPath: Accounting ( Controlling ( Profit centre accounting ( Information system ( Reports for profit centre accounting ( Interactive reporting ( Profit centre group ( plan/actual/variance

Transaction code: S _ ALR _ 87013326


Fiscal year: 2006

Plan version: 0

Profit centre values: Cement

Profit & Loss account group: PL items

Execute

To view variance report profit centre wise for Balance sheet accounts

Path: Same path

Transaction code: S _ ALR _ 87013336


Fiscal year: 2006

Plan version: 0

Profit centre values: Cement

Balance sheet account group: BS itemsExecute

Transfer values from one profit centre to another profit centre

Path: Accounting ( Controlling ( Profit centre accounting ( Actual posting ( Profit centre document ( enter (T. Code: 9KE0)Select layout: 8A 001

Execute

Give the company code: AML Select entry screen buttonGive profit centre: Cement

Account No: 400100 (salaries A/C)

In profit centre local currency: 200000

Save

Integration

Organization structure

Company

In SD: combination of sales organization, distribution channel & division they call at as one sales area.

Movement types: Posting keys in FI

101 ( Material receipt against purchase order/production

102 ( Reversal of 101

201 ( Issue to cost centre (stores of all departments)


261 ( Issue to orders (Raw material shows)


521 ( Material receipt with out production order


561 ( Opening stock taking


601 ( Delivery


Process key (Transaction key)

These are system defined keys

1) BSX ( Inventory postings

2) WRX ( GR/IR clearing (G.R Goods receipts)

(I.R Invoice receipts)

3) PRD ( Price difference/production order differences

4) GBB ( Offsetting entry for inventory posting

a) VBR consumption

b) VNG Scrapping

c) BSA Opening stocks taking

d) SUF Production receipt against production order

e) ZOF Production receipt with out production order

f) VAY Delivery where sales account is a revenue element

g) VAY - Delivery where sales account is not a revenue account

h) AUA Production order differences

GBBVBR Raw material consumption A/C Dr

BSX - To Inventors raw material local A/CValuation class:- Valuation class determines the G/L accounts to be posted automatically.

a) Raw material: 4 valuation classes

Local

- Imported

- Inter unit

- Inter company

b) Stores: 2 valuation classes

- Local

- Imported

b) Finished goods: 1 valuation class -Own goodsValuation grouping code/valuation modification key/ valuation modifier

Valuation area (plant)Chart of accounts

Company Code

Valuation group

code

HyderabadAMLAMLX

BangaloreAMLAMLX

BangaloreAMLAMLX

Advantage is we need not create valuation group code each company code wise.

Material types

Price control

Purchase price1. Raw material ROH - V Moving average price - Available2. Stores & Spares FRSA - V - Moving average price - Available3. Packing material VERP - V - Moving average price - Available4. Finished goods FERT - S Standard price - Raw material + overheads5. Semi finished goods:

Purchased HALB - V Moving average price - Available Produces HALB - S Standard price - Raw material + overheads6. Traded goods HAWA - V Moving average price

7. Services DIEN

Material types similar to account groups in G/L

In M.M we create material mater

Material master is to be created under material type

Material master to be created at plant level

When no. of plants are using same material it will be extended to other plants

Material periods we can open 2 periods at a time

In G/L it is called as tabs, where as in MM it is called No. of views like: Basic data

Purchase data

Sales data

MRP data

MRP data

Ware house

Quality

Accounting

Costing

Why systems support inventory account, not purchase account:

Purchase orderPrice 10

Qty 5

Taxes( 8% Cenvat

4% VAT

Other expenses ( 2%In normal accounting systemRM 1

If other expenses not takenOpening stock

0

Add: Purchases 63

-------

63

Less: Closing stock 10

------

Consumption X_

If invoice is not taken (Only Delivery challan copy is taken)Opening stock 0

Purchases 0

-----

0

Closing stock 20

------Consumption _X_In SAP

Opening stock - 0

Purchases 5 -63

Consumption 3 37

------

Closing stock 2 26(Here the price of the goods is taken from purchase order).MM flow (Material management flow)

1. Material requisition: Production dept to stores called internals

If the material not available, stores department raised.2. Purchase requisition stores to purchase dept

3. Purchase dept call for enquiry, quotations & price comparisons

4. Raising the purchase order by purchase dept

Purchase order contains ( Vendor, Material, plant, quality, rate, delivery terms and payment terms

5. Release procedure Work flow

Up to 10000 ( Manager Purchases6. Goods receipt ( (G.R)

G.R should be against purchase

Inventory Raw material local Dr Balance sheet current asset BSX To GR/IR clearing raw material local Balance sheet current Liabilities WRX7. Invoice verification ( Verification against GR (or)/Purchase orders

GR/IR clearing Raw material Dr Balance current Liabilities WRX

To party Sundry creditors Balance sheet current liabilities Feam po

8. Consumption:

Raw material consumption local Dr P&L debit GBBVBR

To Inventory raw material local B/S current assets - BSX9. Wages payment:

Wages A/C Dr

To Bank A/C

10. Production receipt:

Inventory finished goods (At product cost) Dr Balance sheet current assets BSXIncrease/decreased stock finished goods P/L A/C credit GBBAUF (Production order)

GBBZOF (NO production order)11. Delivery:Increase/decrease in stock finished goods P&L credit: GBBVAY sales (At product)

GBBVAX Sales not revenue account

To Inventory finished goods Balance sheet current asset BSX

12. Sales billing:Customer A/C Dr Sundry debtors Balance sheet current Asset From sale order

To sales P&L A/C credit ERL

Profit & Loss A/c

(8) Raw material consumption

(9) Wages

Surplus in Profit & Loss

100

10

40(10) Increase/decrease in finished goods

(11) Increase/decrease in finished goods

(12) Sales110110

0

150

150

150

Balance Sheet

(6) GR/IR

(7) GR/IR

(7) Sundry Creditors

Surplus in P&L A/C

100

100 0

100

40(6) Inventory Raw material

(8) Inventory Raw material

(9) Bank

(10) Inventory finished goods

11) Inventory finished goods

(12) Sundry debtors100

100 0

-10

0

150

110

110

140

140

Integration is based on 3 rules:1. In material master we specially valuation class

2. For valuation class we assign G/L accounts based on the nature of transaction.

Material NoValuation classInventory Postings (BSX)GR/IR clearing (WBX)Consumption

GBRVBR

RM13000 RM local200121 (Inventory R.M. local)150000 (GR/IR clearing RM local400000 (Raw material consumption)

RM2

3001 RM Imported200122 (Inv. RM imported)150001 (GR/IR clearing RM Imported)400001 (Imp. Material consumption)

3. Stores person when he received (or) issues material he will enter movement type, material number and quantity. Accounts will be updated automatically based on account assignment to valuation class which is specified in material master.Example:Po1 Po1

Move type 101

Raw material 1Material No ( RM1

Qty: 100

Qty: 20 Kgs

Rate 5

Save

Vendor 1234

Movement type 101 Debit BSX 200121 (Inventory raw materials Qty in GRX

Rate as per PO = 100

Credit WRX 150000 ( GR/IR clearing.

1st rule:

In material master we specify valuation class:Here RM1 & RM2 (Material master) is specify the valuation

Class 3000 RM local & 3001 RM imported respectively.

(2) For valuation class we assign G/L accounts based on the nature of transaction.

Here valuation class (3000 RM local & 3001 RM Imported)

Assign G/L accounts Inv. Postings (BSX) ( 200121 Inventory raw material local, 20012 Inv. Raw material imported), GR/IR clearing. WRX (150000 GR/IR clearing), 150001 (GR/IR clearing raw material imported)

Batch mode: Batch:Qty

Rate

Amount 1 - 100

10

1000

2 - 200

40

8000

-------

--------

300

9000

1 - 10

10

100

-------

8900

+ 180

--------

9080

--------

Receipt:

a) Inv. Raw material local A/CDr1000 BSX

To GR/IR clearing raw material local

1000 WRX

Consumption:

b) Raw material consumption local Dr100 GBBVBR

To Raw material local

100 BSXPrice difference:Inv. Verification

GR/IR clearing raw material1000

Inv. Raw material local 200

To party

1200

Moving average:

Stock partly available

Qty

Rate

Amount

100

10

1000

200

40

8000

-----

-----

--------

300

30

9000

Consumption280

30

8400

-----

--------

20

600Price difference

40

-----

-------

20 640

------

--------

a) Receipt:

Inv. Raw material local Dr1000 BSX

To GR/IR clearing raw material1000 WRX

b) Consumption:

Raw material consumption local Dr8400 GBBVBR

To Inv. Raw material

8400 BSX

c) Inv. Verification:

GR/IR clearing raw material local1000 WRX

Price difference raw material

160 Prd

Inv. Raw material

40 (20*2) BSX

To party

1200 (from P.O)

The difference between batch method and moving average method

In batch method it checks with material No and Batch Number only.

Moving average -Stocks not available

Qty

Rate

Amount

100

10

1000

200

40

8000

------

----

--------

300 30

9000Consumption 300

30

9000 a) Receipt:

Inv. Raw material load Dr1000 BSX

To GR/IR clearing raw material1000 WRX

b) Consumption:

Raw material consumption local Dr9000 GBBVBR

To Inv. Raw material

9000 BSX

c) Inv. Verification:

GR/IR clearing raw material1000 WRX

Price difference raw material 2000 PRD

To party

SD to FI1. Enquiry and quotation

2. Sale order: Material, qty, plant, sales organization, rate, delivery terms, payment.3. delivery:

With out post goods issue (With out PGI) No transfer of ownership

With post goods issue (With PGI) Transfer of ownershipFOB(Free on Board):Example:

Plant

Port

Customer

Hyd ChennaiDelivery without PGI

Delivery with PGI

Only material

Material document

No FI document

FI document

Inv/Dec in stock finished goods Dr ( GBBVAY (Sales revenue element)

( GBBVAX (Sales not revenue element)

To Inventory finished goods BSX

a) Billing: Billing should be with reference to delivery

Billing: In SD module there is a pricing procedure

Procedure:i) From region Andhra Pradesh

To region - Andhra Pradesh Customer - Taxable

Material- Tax

Billing

BasicXXX

Excise XXX

VATXXX

--------

Bill amount XXXii) From Region Andhra Pradesh To Region Andhra Pradesh

Customer Non taxable

Material Non taxable

Here in this case the buyer is purchasing in local state and same is exported under

Form H

Billing is

BasicXXX

--------

Bill amount XXXiii) From region Andhra Pradesh

To Region Andhra Pradesh

Customer Taxable

Material Taxable

Billing is

BasicXXX

ExciseXXX

CSTXXX

--------

Bill amountXXX_iv) From Region Andhra Pradesh

To Region India

Customer Non taxable

Material Non taxable

Billing

BasicXXX

--------

Bill amount XXXCondition type: KOFI

Assignment of Accounts: (1)

(2) (3)(4) (5) (6) (7) (8)Application areaCondition typeChart of accountsSales orgAccount assignment group for customerAccount assets group for materialsAccounts keyG/L accounts

V Sales & distributionKOFIAMLHyd0103ERL300001- Sales local own goods

VKOFIAMLHyd0101ERL300002 Sales local taxed goods

VKOFIAMLHyd0103ERF400320 Freight local own good

VKOFIAMLHyd0101ERF400321 Freight local traded goods

(5)Account assignment group for Customer

01 Domestic revenues

02 Foreign revenues

03 Affiliated company revenue

(6)Account asset group for material

01 Trade goods

02 Services

03 Finished goods

(7) Accounts key:

ERL Sales revenue

ERF Freight revenue

ERB Rebate (Trade discount)

ERS Sales deduction (Commissions)MM Integration step1. Define plant

Path: SPRO ( Enterprises structure ( definition ( logistics ( general ( define, copy, delete, check plant

Double click on define plant


Give plant: AMLP

Assign factory calendar: A2 (AML Hyderabad factory calendar)

Save

Give the name: AML Hyderabad factory plant

Give the country: IN (India)

Enter


Give the short description: MM Customization for AMLEnter

Press enter to save in your request

Define copy, delete, check division:

Path: same path

Select define, copy, delete, check division

Double click on define division


Division A1 ( Name: Cement division

Save


Maintain storage location:

Path: SPRO ( enterprises structure ( Definition ( Materials management ( Maintain storage location

Give the plant: AMLP

Enter


Give the storage location: Hyd

Give the description: Hyderabad storage location

Save


Maintain purchasing organization:

Path: same path


Give the purchase organization: AMLR: Raw Material of purchase order

Save


Assign plant to company code:

Path: SPRO ( enterprises structure ( assignment ( Logistics ( general ( assign plant to company code

Select find button

Give company code: AML

Enter

Select: AML

Select assign button

Select: AMLP check box

Enter



Assign business area to plant/valuation area and division:

Path: same path

Select plant/valuation area Division button


Plant: AMLP

Division: A1


Select save (or) (ctrl + s)


Assign purchasing organization to company code:SPRO ( enterprises structure ( assignment ( materials management ( assign purchasing organization to company code

Select find button


Enter

Select company code: AML

Select assign button

Select: AMLR check box

Enter

Save (or) (ctrl + s)Save in your request

Creation of Material group:

Path: SPRO ( logistics general ( Material group ( create material group

Material group: CHEMICAL

Give the material group description: Chemicals

Save

Creation of purchasing group:

Path: SPRO ( materials management ( purchasing ( create purchasing groups


Purchase group: AML

Description: Raw material purchase group

Save


Maintain company codes for materials management:

Path: SPRO ( logistics ( general ( material master ( basic settings ( maintain company codes for materials management



Enter

For the company code: AML

Give the year: 2006

Give the period: 7

Select ABP check box

ABP ( Allow back period postings


Ignore the warning message

Press enter

Press enter to save in your request

Define attributes of material types:

SPRO ( logistics general ( material master ( basic settings ( material types ( define attributes of material types

Select material type: ROH (Raw material)

Double click on qty/value updating folder


Give the valuation area: AMLP

Enter

For AMLP: select qty updating check box & value updated check box

Save


Select back arrow

Select material type: FERT (Finished product)

Double click on qty/value updating folder


Give the plant: AMLP

Enter

For AMLP: select qty updating check box & value updated check box

Save

Set tolerance groups for purchase orders:

Path: SPRO ( materials management ( purchasing ( purchase order ( set tolerance limits for price variance.Select: Tolerance key PE & Tolerance key: SE

For company code: 1000


Change the company code: AML

Press enter

Once the company code to AML for SE

Enter & Save


Set tolerance limits for goods receipt:

Path: SPRO ( materials management ( inventory management & physical inventory ( goods receipt ( set tolerance limits

Select tolerance key: B1, B2, &VP for company code 1000


Change the company code to AML for B1

Enter

Change the company code: AML for B2

Enter

Change the company code: AML for VP

Enter & save


Plant parameters:

Path: Up to inventory management & physical inventory path is same

Plant parameters

Select plant: 1000

Date post:	09-Nov-2015
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