Manufacturing Cost Center Plan

Manufacturing Cost Center Planning

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Contents

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

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

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

2.2 Preliminary Steps.............................................................................................................6

2.3 Roles................................................................................................................................ 6

3 Process Overview Table..........................................................................................................7

4 Business Processes..............................................................................................................10

4.1 Cost Center Masters.......................................................................................................10

4.2 SOP through Long-Term Planning/Capacity...................................................................10

4.3 Transferring Planned Activity Requirements for Production...........................................11

4.4 Planning Activity Based on Activity.................................................................................12

4.5 Planning Reconciliation..................................................................................................13

4.6 Changing to Calculate Rates Based on Capacity (Optional)..........................................15

4.7 Accepting Scheduled Labor and Overhead Activity for Manufacturing Cost Centers.....16

4.8 Planning Direct Labor Expenses....................................................................................16

4.9 Planning Direct Overhead Expenses..............................................................................17

4.10 Downloading Cost Elements to Excel for Income/Expense Budget............................19

4.11 Updating Budget Values for Operation Cost Budget...................................................21

4.12 Uploading Cost Elements for Income and Expense Excluding Operations.................22

4.13 Planning Statistical Key Figures..................................................................................23

4.14 Plan Assessment........................................................................................................24

4.15 Checking Plan Accrual Calculation.............................................................................26

4.16 Confirming Allocation of Operations Cost Budget.......................................................28

4.17 Activity Price Calculation.............................................................................................29

4.18 Confirming Accurate Calculation of Price....................................................................30

4.19 Standard Cost Calculation..........................................................................................31

4.20 Final Planning Steps...................................................................................................31

5 Appendix................................................................................................................................ 32

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Manufacturing Cost Center Planning

1 PurposeDuring the annual budgeting process, the managers of manufacturing cost centers plan the costs for various cost types/elements for their respective cost centers. The usual starting point for development of these plans is the actual data for the current/previous year.

In this process, the previous year’s actual expenses for these cost centers are copied into an AOP (annual operative planning) budget version in cost center accounting. As an alternative the previous year’s budget data can also be used as a starting point for the exercise. The data in this version is downloaded into spreadsheets by each cost element and cost center. The respective cost center managers review and update the budget values according to their requirements and plans. Then these plans are uploaded back into the system. The plans in the system are reviewed and finalized.

The planned depreciation on fixed assets is transferred separately to the cost center plan version. The system calculates the planned depreciation on assets by cost center based on the asset values posted on the cost centers. In the case of cost centers having machinery, the depreciation is planned based on cost center and activity type.

The resource requirements in the form of planned activity quantities are transferred from Sales and Operations planning to the cost centers as planned activity consumption. Plan reconciliation between the SOP activity requirements and manually planned requirements on the operational cost centers is carried out. Once the activity quantities and budget amounts are finalized, planned activity prices are calculated in the system.

2 Prerequisites

2.1 Master DataYou have entered the master data required to go through the procedures of this scenario. Ensure that the following scenario-specific master data exists before you test this scenario:

A description of all CO Master Data can be found in the document CO_MasterData_Overview.xls.

Common Master Data provided for all AreasMaster Data Value Selection Comment

Cost Center 1101

1201

1202

1601

1602

1701

1750

1801

Financials and Administration

Purchasing & Stores 1

Purchasing & Stores 2

Marketing

Sales

Plant & Maintenance

Buildings & Plant Maintenance

Other income/expense

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Master Data Value Selection Comment

1901 Customer service

Cost Center Group 1000 and all groups assigned to group 1000

India

Cost Elements *

Service AreaMaster Data Value Selection Comment

Cost Center 1321 Services/ Consulting

Manufacturing Area / Trading AreaMaster Data Value Selection Comment

Cost Center 1301

1302

1401

1501

Manufacturing 1

Manufacturing 2

QM

Research & Development

2.2 Preliminary StepsNon manufacturing cost centers are planned. The assessment cycles are executed. The plan version is copied and maintained (see General Cost Center Planning (175) scenario).

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 Procedure 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.

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

Business role Technical name Process step Enterprise Controller

SAP_BPR_CONTROLLER-K Transfer planned activity requirements for production

Plan activity based on capacity

Plan reconciliation

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Business role Technical name Process step Change to calculate rates based on capacity

Accept Scheduled Labor and Overhead Activity for Manufacturing Cost Centers

Plan direct labor expenses

Plan direct overhead expenses

Download/Upload cost elements to excel for income/expense budget

Plan statistical key figures

Plan assessment

Check plan accrual

Confirm allocation of operations cost budget

Activity price calculation

Confirm accurate calculation of price

3 Process Overview TableProcess step External

process reference

Business condition

Business role Transaction code

Expected results

Cost Center Masters

See 155.03 Create Cost Center and Cost Center Group scenario



Cost centers are created

SOP through Long-Term Planning/Capacity

See 173 – – SOP through Long Term Planning Transfer to LIS/PIS/Capacity



The planned requirements are transferred to active version in demand management.

Transfer Planned Activity Requirements for Production

Annually during AOP process

Enterprise Controller

KSPP

Plan Activity Based on Capacity



KP26 Capacity updated on cost center

Plan Reconciliation



KPSI Scheduled activity added to plan activity and updated as plan on the

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Process step External process reference

Business condition


Expected results

cost center

Change to Calculate Rates Based on Capacity (Optional)


KP26 The plan is updated with the correct plan price indicator.

Accept Scheduled Labor and Overhead Activity for Manufacturing Cost Centers

If you want to use scheduled activity for rate calculation, you need to manually accept scheduled labor and overhead activity for manufacturing cost centers.

Manual step The scheduled Labor and Overhead Activity for Manufacturing Cost Centers is accepted.

Plan Direct Labor Expenses



KP06 Plan updated with correct plan price indicator.

Plan Direct Overhead Expenses



KP06 Values for budget by cost element updated on manufacturing cost centers.

Download Cost Elements to Excel for Operations Cost Budget



KP06 Values for budget by cost element updated on manufacturing cost centers.

Update Budget Values for Operation Cost Budget



Manual step Planned values in excel

Upload Cost Elements for Operations Cost Budget



KP06 Updates saved in Excel file format.

Plan Statistical Key figures


KP46 Statistic key figures per

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Process step External process reference

Business condition


Expected results

cost centers are available for reporting, as distribution ratio for assessment cycles

Plan Assessment Enterprise Controller

KSUB Assessment of quality costs

Check Plan Accrual Calculation



KSA8 Accruals are calculated for manufacturing cost centers.

Confirm Allocation of Operations Cost Budget



S_ALR_87013611

Values for budget by cost element updated on operations cost centers.

Activity Price Calculation



KSPI Budgeted balance of operating cost centers is 'zero' because all costs allocated to manufacturing

Confirm Accurate Calculation of Price



S_ALR_87013611

The allocation was successful.

Standard Cost Calculation

See 178 - - Standard Cost Calculation scenario

Cost calculation without material master master update

See 178 - - Standard Cost Calculation scenario

See 178 - Standard Cost Calculation scenario

Correct standard cost calculation

Final planning steps

See 175 - - General Cost Center Planning scenario (final planning steps)



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4 Business Processes

4.1 Cost Center Masters

UseIn this document, you create a cost center. You can determine if you need to create a cost center group. You then maintain the assessment cycle.

SAP Best Practices deliver example CO master data, which are created with the installation of the SAP Best Practices Package. A complete overview can be found in the document CO Overview Master Data which is assigned to the layer 0 installation building blocks.

Procedure

For this activity, run the Create Cost Center and Cost Center Group (155.03) scenario document in its entirety.

4.2 SOP through Long-Term Planning/Capacity

UseAfter the sales plan is verified, the sales quantities are transferred to Sales and Operation Planning (SOP). In SOP, a long-term plan is created to match the manufacture of parts to be sold with the sales quantities. Materials requirements planning (MRP) is run in a simulated mode to review planned requirements for all the materials and resources required to manufacture the materials to satisfy the demand. Simulation of MRP also allows review of capacities of the plants. Capacity leveling can then be carried out to smooth out the bottlenecks in the capacities.

Once the simulated version of the manufacturing plan is accepted, the planned requirements are transferred to active version in demand management.

Procedure

For this activity, run the SOP through Long Term Planning Transfer to LIS/PIS/Capacity (173) scenario document in its entirety.

4.3 Transferring Planned Activity Requirements for Production

Use

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In this activity you will transfer planned activity requirements for production.

You can transfer the activity requirements data calculated in long-term planning to Cost Center Accounting as planned figures. The system uses this information to determine the production costs for each cost center and for costing products.

The activity quantities are calculated using the activity types and their formulas in the work centers. The activity requirement quantities calculated in long-term planning are taken into account when comparing the activity requirements with the work center's available activity. The activity prices of the activity types are calculated using the available activity and planned costs. The activity prices are included in product costing.

The activity requirements of long-term planning are not automatically updated in cost center accounting. Instead, they are transferred to cost center accounting using a separate function in long-term planning after you have adjusted the planning results.

Procedure 1. 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 Planning Planning Aids Transfers Scheduled activity SOP/LTP

Transaction code KSPP

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

Business role SAP_BPR_CONTROLLER-K (Enterprise Controller)

Business role menu Overhead Cost Controlling Planning: Cost Centers Transfer Planned Activity Requirements for Production

2. On the Transfer Planned Activity Requirements for Production screen, make the following entries:

Field name Description User action and values Comment

Plant 1000

Version 002 SOP planning version

From period 1

To period 12

Fiscal year <Budget year> Next Fiscal year

Execute period adjustment

x

Cost center/ activity type

x

3. Choose Transfer Control.

This screen can be accessed directly using transaction OMIK.

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4. Select the line item containing the previous year and choose Copy if the current budget year is not displayed and enter the following:


CO area Controlling area

1000

Version 2 CO planning version

Fiscal year <Overwrite with current budget year>

Long-Term Planning

x

Planning scenario 002 SOP planning version

5. Choose Enter and then Save.

6. Choose Back to go back to the selection screen. Confirm the message that appears. The Test Run can be selected as needed. Then, choose Execute.

7. Repeat the above steps for other plants.

Result The activity requirements are transferred from LTP to cost center accounting. The scheduled activity is planned on the manufacturing cost centers.

To generate a report, use transaction code KSBL (menu path Accounting Controlling Cost Center Accounting Information System Planning Reports Cost centers: Planning Overview).

4.4 Planning Activity Based on Activity

UseIn this activity, you will plan activity based on activity.

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


SAP ECC menu Accounting Controlling Cost Center Accounting Planning Activity/Output prices Change

Transaction code KP26



Business role menu Overhead Cost Controlling Planning: Cost Centers Change Activity Type/Price Planning

2. On the Change Activity Type/Price Planning - Initial Screen, make the following entries:

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From period 1

To period 12

Fiscal year <Budget year>

Cost Center Group

130 Manufacturing cost center group

Activity Type Group

YBMF_P00_AT Planning Activity Types

Form-based x

3. Choose Overview.

4. Enter 1200 in the filed Plan Activity for Cost Center 1302 and enter 1 for all activity in the field EquiNo.

5. Choose Next Combination for the cost center 1301.

6. .Make sure the Plan Activity column must be zero.

If a third quantity is needed in the business, it can be entered in the Plan Activity column, but then Plan Reconciliation step should not be executed as this will copy scheduled quantity to the plan quantity.

7. Equivalent number should be 1 for activity 1 and blank for the others.

8. Choose Save.

Result The capacity is updated on cost center.

To generate a report, use transaction code S_ALR_87013647.

4.5 Planning Reconciliation

UseIn this activity you execute the plan reconciliation.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Planning Aids Plan Reconciliation

Transaction code KPSI


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Business role menu Overhead Cost Controlling Planning: Cost Centers Execute Plan Reconciliation

2. On the Execute Plan Reconciliation - Initial Screen, make the following entries:


Cost Center group



From period 1

To period 12

Fiscal year <Budget year> Next Fiscal year

Detail lists <Select>

Test Run <Select as needed>

3. Choose Execute.

Result The scheduled activity is copied to plan activity and updated as plan on the cost center.


The plan activity from the cost center (usually 0) is shown as well as the new plan activity, which adds the scheduled and the planned activity.

4.6 Changing to Calculate Rates Based on Capacity (Optional)

UseIn the normal flow of business, activity rates will be calculated based on plan activity. If a business wants to calculate activity rates based on capacity, execute this step.

Prerequisites To execute this activity, go to transaction KL02 Basic Data tab Allocation Default values, and enter 2 in the Price indicator – Plan price, automatically based on capacity field.

This is an optional step.

Procedure

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


SAP ECC menu Accounting Controlling Cost Center Accounting Planning Activity/Output prices Change




Business role menu Overhead Cost Controlling Planning: Cost Centers Change Activity Type/Price Planning

2. On the Change Activity Type/Price Planning - Initial Screen, make the following entries:



From period 1

To period 12


Cost Center Group 130 Manufacturing cost center group

Activity Type Group YBMF_P00_AT Planning Activity Types

Form-based x

3. Choose Overview.

4. Enter the number of hours ,for example : 8760 calculated based on capacity in Capacity column

5. Change planned price indicator column to 2 to calculate the rates based in the Capacity column.

The choice of quantity used for the rate calculation is a business decision. If the SOP/LTP accuracy is high then activity is the logical choice. If SOP is a new concept and master data is inaccurate then capacity is a better choice.

6. Choose Save.

Result

The plan is updated with the correct plan price indicator (to get rate calculated based on capacity).

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4.7 Accepting Scheduled Labor and Overhead Activity for Manufacturing Cost Centers

UseIf you want to use scheduled activity for rate calculation, you need to manually accept scheduled labor and overhead activity for manufacturing cost centers.

4.8 Planning Direct Labor Expenses

UseIn this activity, you will plan direct labor expenses.

PrerequisitePlanner profile YBALL_02 is set with transaction kp04.

The menu is Overhead cost controlling Planning Preparation CO Maintain Planner Profile Set planner Profile in the NWBC



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Cost and Activity Inputs Change




Business role menu Overhead Cost Controlling Planning: Cost Centers Change Cost Element/Activity Input Planning

2. On the Change Cost Element/Activity Input Planning - Initial Screen, make the following entries:



From period 1

To period 12


Cost center grp 130 Manufacturing cost center group

Activity type grp YBMF_P00_AT

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Cost element grp

BP_4410_WG Wages costs

3. To display all relevant cost elements, choose Form Based and choose Overview.

4. Input plan fixed 60 In the Plan Fixed Costs field and variable costs 24 in the plan variable costs Field by cost element. Use the Next combination arrows to plan the next cost center 1301. And go down a page to find the setup activity.

Fixed vs Variable are always different in each business. The split between fixed and variable here enables a separate rate calculation for fixed and variable, which in turn results in target reporting capabilities. A cost element can be planned as variable to enable target reporting and can be displayed on a report under fixed costs.

5. Choose Save.

Result Direct labor expenses are planned.

The values for budget by cost element are updated on manufacturing cost centers.


4.9 Planning Direct Overhead Expenses

UseIn this activity, you will plan direct overhead expenses.

PrerequisitePlanner profile YBALL_02 is set with transaction kp04.










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From period 1

To period 12


Cost center grp 130 Manufacturing cost center group

Activity type grp YBMF_P00_AT

Cost element grp

BP_4402_JW Job work costs

3. To display all relevant cost elements, choose Form Based and choose Overview.

4. Input plan fixed 60 In the Plan Fixed Costs field and variable costs 24 in the plan variable costs Field by cost element. Use the Next combination arrows to plan the next cost center. And go down a page to find the setup activity.

5. Choose Save.

6. Repeat steps 1-5 for all other overhead cost element groups to be planned as direct overhead costs.

Result The values for budget by cost element are updated on manufacturing cost centers.


This type of planning links cost elements specifically to an activity.

4.10 Downloading Cost Elements to Excel for Income/Expense Budget

UseIn this activity you will download cost elements to excel for operations cost budget.

Prerequisites This customizing setting has to be added only once.

The following steps are only required the first time when starting the planning process. If a file description is already assigned the steps should not be repeated again.

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The file description is needed for the excel upload of planning costs on cost centers. The file description needs to be saved separately so that it can be accessed in uploading the file. This activity has to be executed before the first time of planning. Check in the following steps the correct assignments:

The planner profile YBALL_01 is set (transaction KP04).

The menu is Overhead cost controlling Planning Preparation CO Maintain Planner ProfileSet planner Profile in the NWBC

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


SAP ECC menu Controlling Cost Center Accounting Planning Manual Planning Define User-Defined Planner Profiles

Transaction code KP34 (S_ALR_87005852)



Business role menu Overhead cost controlling Planning Preparation CO Maintain Planner Profile

2. On the Change View "Planner Profiles": Overview screen, choose YBALL_01

3. Choose General Controlling.

4. On the Change View "General Controlling": Overview screen, choose first line Cost ctrs: Cost element/activity inputs.

5. Choose Layouts for controlling.

6. On the Change View "Layouts for Controlling": Overview screen, choose Y1-101.

7. Choose Default Parameters.

8. On the Cost Element/Activity Input Planning: Init.Screen Pre-Parameteriz. screen, make the following entries:

Field name Description User action and values Note

Controlling Area 1000


From Period 1

To Period 12

Fiscal Year <budget year> For example: Next fiscal year

Cost center *

Activity Type Blank No input for overhead costs

Cost element group BP_4420_SL < cost element

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group>

9. Choose Save and confirm the message Preset paramaters were saved with Enter.

10. On the Change View "Layouts for Controlling": Overview screen, choose Save.

11. On the Change View "Layouts for Controlling": Overview screen, choose Y1-101 again.

12. Choose Default Parameters.

13. Choose Overview Screen.

14. Confirm message File description 01_1P1_YBALL_01_001Y1-101 has been generated if the message appears.

15. Choose Generic file, and enter budget_*.txt for the Generic file name .

16. Choose Continue.

17. Choose Save File Description.

18. Choose Save Excel Layout.

19. Choose Save.








2. Select planning layout Y1-101.




From period 1

To period 12


Cost center * Cost center 1401 must have planning data, which will be used in step 4.14

Activity Type Blank No input

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Cost element grp

BP_4420_SL All primary costs

4. To display all relevant cost elements, select Form Based and choose Overview.

5. From the menu, choose File Save Copy As and save for each cost center. The file name is in the form budget_cc_yyyy_xx...xx.xls where xx...xx = cost center, and yyyy = budget year.

Remember to use (next combination) arrows to page and save a file for each cost center. Do not use Delete, Paste, and Sort functions in Excel. Add new records at the bottom. Delete last line Cost Element Total. If necessary remove Excel worksheet protection for deleting these entries.

Result The file with the cost elements to be planned is downloaded correctly and is e-mailed to the cost center manager.

4.11 Updating Budget Values for Operation Cost BudgetThe cost center manager updates the Excel spreadsheet and e-mails to the Enterprise Controller.

Notes for Editing the Spreadsheet Do not use Delete, Paste, Sort functions in Excel.

Use tools Protection Unprotect Sheet to allow changes and delete totals line before saving as a TAB delimited txt file with the same name.

Add new records at the bottom of the spreadsheet.

A second worksheet can be used for calculations, graphs.

Sheet 1 must be saved as budget_yyyy_pppppppppppppp.txt (Tab delimited txt ) to enable upload where yyyy is the budget year and pppppppppppppp is the product line.

Data can be kept at customer product level for accuracy, or alternatively updated by product group and distributed later.

Do not delete items to get rid of quantities, instead, enter 0.

ResultThe Excel spreadsheet is now saved in the correct format for upload.

4.12 Uploading Cost Elements for Income and Expense Excluding Operations

UseIn this activity, you will upload cost elements for income and expense excluding operations.

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2. Choose Extras Excel Planning Upload.

3. Import a single file or a directory.

4. Select path of the file on your PC with file description 01_1P1_YBALL_01_001Y1-101, and decimal notation, 1, 234, 567, .9 separators in CSV files.

5. Choose Execute. Remember to check the logs.

Result The values for budget by cost element are on operations cost centers.

To display the report, use transaction code KSBL (menu path Accounting Controlling Cost Center Accounting Information System Planning Reports Cost centers: Planning Overview).

New planner profile will need a new file description.

4.13 Planning Statistical Key Figures

UseYou use the statistical key figures to calculate key figures for reporting, and the figures are also used as the basis for periodic allocation.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Statistical Key Figures Change




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Business role menu Overhead cost controlling Planning: Cost Centers Change Stat. Key Figure Plan Data

2. Enter the necessary data on the Change Statistical Key Figure Planning screen.

Field name Description User actions and values Comment

Version 2 Plan/actual version

Periods 1 to 12 April. to March.

Year <budget year> For example:

next fiscal year

Cost center any Example 1301

Statistical key figure

any Example 1002

Entry Form-based

Overview screen

Current plan value any Example 100

3. Choose Save.

Result The cost centers for which you have planned one or more statistical key figures can now serve as receivers in the allocation cycles (periodic reposting, plan distribution and plan assessment).

4.14 Plan Assessment4.14.1 Checking Plan Assessment: Buildings and Maintenance

Costs

UseDuring the automatic secondary cost planning, you can plan secondary costs both on a value basis (as a plan assessment) and on a quantity basis (with indirect activity allocation).

Assessment is used to allocate primary and secondary costs. The original cost elements are combined and allocated to the receiver cost center in an assessment cost element.

The assessment is used to further allocate the costs of buildings and maintenance. In this process step the assessments can be checked.

Prerequisite

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Assessments of buildings and maintenance costs are executed for all cost centers and are not specific for manufacturing cost centers. Therefore they are already included in another scenario which refers to the general part of cost center planning (see 175: General Cost Center Planning). Usually the assessments are done in one step so no further specific activities are required here.

This process step is added so that the assessment to manufacturing cost centers can be checked. You can find further details in General Cost Center Planning (175) (Step: Plan Assessment) scenario.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Allocations Assessment

Transaction code KSUB



Business role menu Overhead cost controlling Planning: Cost Centers Execute Plan Assessment Cycle for Cost Centers

2. From the menu, choose GoTo Processed to Date.

3. On the Plan Assessment Overview: Initial screen, enter the required data:


Periods One number (from 1 to 12) April. to March

Fiscal year <budget year>

4. Choose Execute.

5. Select the subsequent lines by double-clicking for the report analysis.

Result Check the result for planned assessment for building and maintenance costs.

4.14.2 Executing Plan Assessment: Quality costs

UseQuality costs are collected on cost center 1401. They are to be assessed to the manufacturing cost centers. The later planned activity type prices include the quality costs.

Prerequisites A plan assessment cycle must be defined in customizing.

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The assessment is based on fixed percentages. The same transaction can be used to adopt the percentages to customer specific requirements.

The following cycle has been defined for the plan assessment:

Cycle Segment Sender CC Receiver Receiver Tracing Factor

Y_P010

Assessment Quality cost (plan)

100

Quality costs for operations

1401

QM

Cost Element

BP_1000_IN

Cost center

group 130

Example:1301: 25%1302: 25%



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Allocations Assessment

Transaction code KSUB



Business role menu Overhead cost controlling Planning: Cost Centers Execute Plan Assessment Cycle for Cost Centers

2. On the Execute Plan Assessment screen, enter the required data:

Field name Description User actions and values Remarks

Periods One number (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 <budget year>

Test run x Until the run is error-free

Detailed lists x

Cycle Y_P010 Assessment Quality cost (plan)

3. Choose Execute.

Result The quality costs are settled to the manufacturing cost centers.

To display the existing cycles, choose Extras Cycle Display.

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4.15 Checking Plan Accrual Calculation

UseYou should start the plan accrual once you have completed manual primary cost planning. During this process, overhead cost percentages are used to plan accrued costs for the corresponding cost centers.

You define an overhead percentage rate for accruing the additional employee benefit costs. Reference cost elements are the costs for wages and salaries. The accrued costs are credited to an order with order type Accrual Order.

In this process step the accrued costs can be checked.

Prerequisites

The accrual calculation of planned costs is executed for all cost centers and not specific for manufacturing cost centers. Therefore they are already included in another scenario which refers to the general part of cost center planning. Usually the accrual calculation is done in one step so no further specific activities are required here.

This process step is added so that the accrued costs can be checked. You can find further details in General Cost Center Planning (175) (Step: Plan Accrual Calculation) scenario.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Planning Aids Accrual Calculation

Transaction code KSA8



Business role menu Overhead cost controlling Planning: Cost Centers Plan Accrual for Cost Centers

2. Enter the required data on the Plan Accrual Calculation for Cost Centers screen.


Cost center group Manufacturing cost center group

for example, 130 (operations)

Version 2 Plan/actual version

Periods 1 to 12

Year <budget year>

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Test run X Until the run is error-free

Detailed lists X

Execute

3. Select Next List Level.

4. Use report Plan Accrual Calculation for Cost Centers for further analysis.

Result

Overhead rates cannot be transported and have to be maintained manually in customizing

You can use Extras Settings Percentage Method to display the allocation structure.

4.16 Confirming Allocation of Operations Cost Budget

UseIn this activity, you will confirm allocation of operations cost budget.



SAP ECC menu Accounting Controlling Cost Center Accounting Information System Plan Actual Comparisons Cost centers: Actual/Plan/Variance

Transaction code S_ALR_87013611



Business role menu Overhead cost controlling Reporting Cost Centers: Actual/Plan/Variance

2. On the Cost Centers – Actual/Plan/Variance - Selection screen, make the following entries:


Controlling area 1000


From period 1

To period 12

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Plan Version 2

Cost center grp Cost center group 130 Manufacturing cost centers

Cost elem. Grp Cost element group

* e.g. BP_1000_IN (costs Best Practices)

3. Choose Execute. Confirm the total cost center plan to see that the upload worked and the costs look good.

ResultThe operating budget in the system is confirmed to be valid.

Option A: If the data is correct, proceed to the next step.

Option B: If the data is incorrect, go back to preceding planning steps.

4.17 Activity Price Calculation

UseIn this activity, you will calculate the activity price.



SAP ECC menu Accounting Controlling Cost Center Accounting Planning Allocations Price Calculation

Transaction code KSPI



Business role menu Overhead cost controlling Planning: Cost Centers Execute Plan Price Calculation

2. On the Execute Plan Price Calculation – Initial Screen, make the following entries:


Cost Center Group


Version 2 CO plan version

From period Current Period

To period Current Period

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Fiscal year <Budget year> For example: next fiscal year

Test Run x

Detail Lists x

3. Choose Execute.

4. if you want to calculate from period 1 to 12, you have to maintain plan activity for period 1 to 12.or you will meet error like cost element xxxxxxxx cannot be split for cost center xxxx, period xxxx.

Result The activity prices are calculated.


4.18 Confirming Accurate Calculation of Price

UseIn this activity, you will confirm the accurate calculation of price.



SAP ECC menu Accounting Controlling Cost Center Accounting Information System Plan Actual Comparisons Cost centers: Actual/Plan/Variance

Transaction code S_ALR_87013611



Business role menu Overhead cost controlling Reporting Cost Centers: Actual/Plan/Variance

2. On the Cost Centers – Actual/Plan/Variance - Selection screen, make the following entries:


Controlling area 1000


From period 1

To period 12

Plan Version 2

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Cost center grp Cost center group 130 Manufacturing cost centers

Cost elem. Grp Cost element group

* for example, BP_1000_IN (costs Best Practices)

3. Choose Execute. From the left side navigation section, choose the cost center you want to analyze.

4. To generate a report, use transaction code KSBL (menu path Accounting Controlling Cost Center Accounting Information System Planning Reports Cost centers: Planning Overview).

5. The planning overview report shows the planned costs and quantities for the cost center/activity. To get the planned price, choose Display Activity Price.

6. Redo the check for all cost center/activity type combinations in transaction KSBL.

Result The activity prices are checked and agreed on.

Option A: If the rates are correct, proceed to the next step.

Option B: If the data is incorrect, go back to preceding planning steps.

4.19 Standard Cost Calculation

UseAnnually, the standard costs for products are updated as part of the annual operations planning (AOP). This is necessary to reflect the changes in the prices of purchased parts, change in labor and overhead costs and change in bills of materials and operations needed to manufacture the semi-finished and finished goods.

Once the planned prices for purchased parts are updated and planned activity prices are calculated, a costing run is done to calculate the standard planned prices of the materials. The calculated standards are reviewed for accuracy and the responsible persons are informed of any corrections that are required to be made. Once the calculations are acceptable, the prices are updated as future planned costs in the respective material master records.

Once the current year is closed, the marked cost estimates are released. This results in a revaluation of existing inventory to the new standard prices.

Procedure

For this activity, run the Standard Cost Calculation (178) scenario document in its entirety, using the master data from this scenario document.

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4.20 Final Planning Steps

UseManufacturing cost center planning is one part of cost center planning. After this scenario the cost center planning has to be finalized. Planning data are to be transferred to CO-PA (if CO-PA is activated), the planning version is to be transferred to the actual version and versions are to be locked.

Procedure

For this activity, run the General Cost Center Planning (175) scenario document, chapter Final Planning Steps.

5 AppendixReversal of Process Steps All steps cannot be reversed

original Step

original Step Name

original Transaction Code

Reversal Step Name

Reversal Transaction Code

Reversal: Remarks

4.3 Transfer planned activity requirements for production

KSPP Scheduled activity SOP/LTP

KSPP Choose Transfer Reset

General Delete planned costs

KP90

General Delete planned data

KP91

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Date post:	17-May-2017
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Manufacturing Cost Center Plan

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