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5/19/2018 Stock in Transit and Actual Costing- SAP Ramp-UP
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Stock in Transit and Actual Costing
New Features in ERP 6.0 EHP5
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2010 SAP AG. All rights reserved. / Page 2
Supply within Global Groups
Plant Group
Marketingsells to
Regional
Sales
Org
Customer
1. Central Marketing & Distribution Organization
Plant 1 Plant 2Sales
OrganizationCustomer
2. Distributed Production and Supply Chain
Semi-finished
good Finished goodProduct
Group
Group
Globalization, a history of mergers and acquisitions and fiscal rules cause
companies to separate their organization into legal entities. As aconsequence internal supply are becoming sales processes.
Auditors demand
transparency on
transfer prices
Complex
Processes
Local regulations
Additional layers of
systems Missing local view
on contribution
Challenges
sells to sells to
sells to sells to
sells to
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CIO
Interests of Different Stakeholders have to be
Served in Modeling a Supply Chain
Reducing Complexity
How do I increase revenue
and profits and comply to all
regulations?
How can I get rid on all kinds
of add-on systems and
complexities?
How can I optimize the
supply chain and provide
flexibility and effectiveness?
Revenue Optimization
Compliance
Transparency
Simplification
Reduce Costs
User Satisfaction
Synergies within Group
Fast Reactions
Risk Mitigation
Group Accounting
Setting up and maintaining a supply chain involving multiple companies
of the same group requires alignment between several stakeholders
with differing objectives
Financial Reporting
How can I report the
contribution of my
organization on the overall
success?
Transparency
Local Regulations
Auditability
CFO
Optimization
VP AccountingVP Supply Chain
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Use Cases
A Brazilian steel pipe company takes a customer order at their
Nigerian subsidiary. The subsidiary orders the pipes for make to
order at the headquarter which places again an order to the best
suited plant in Mexico.
A Belgian consumer products company produces a fruit mix after asecret recipe and sells it worldwide to affiliate companies for
finishing a beverage by adding water and sugar.
A South-African mining company sells for fiscal reasons all its mineproduction to their marketing company in Switzerland which serves
the regional sales organization. Physical shipments will go straight
from the mine to the customer.
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The Process:
Two legally independent companies A and B supply eachother with goods. B sells the material or processes them
further.
A and B belong to the same group
A and B are modeled as company codes in the groups ERP
system in the same client
The time to ship the goods from A to B is not negligible
Requirements
From an accounting perspective the process behaves like a sales transaction from A to B
Auditatibility with a full document flow for a legal sales process needs to be provided
Paperwork for the shipment is needed
The ownership and the accounting of the goods need to be transparent during the transit
The process needs to be handled efficiently with potential to be automated
A returns process for the full or partial return needs to be supported.
The value flow shall be transparent from a group point of view. Group reporting shall show
where costs and profits arise, and what the total profitability from group perspective is.
GroupCompany
ACompany
B
Sales process
Process Details
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Issues to Solve
Former Work-around approaches:
Use designated storage locations or virtual plants for transit stocks (also in SAPs Oil and Gas
industry add-on, TSW)
Use one-step stock transfers
Consolidate value flow in BI or add-on systems
Issues
Missing transparency on goods in transit:
Values vanish during transit times
Quantities are not accessible for planning purposes
System representation does not reflect reality
Values in reversals do not equal original values
Cost flow is broken at company code borders
No group view on actual costs
No transparency on intercompany profits
No group-wide profitability view
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Features & Functions of the new SIT Concept
in a nutshell
With enhancement pack 5 of ERP 6.0 SAP
provides an integrated solution to the processconsisting of
Introducing a valuated stock in transit that either
belongs to the sending or the receiving plant
New order types and movement types andconfiguration to support the process
Ability to use this new concept either for cross-
company processes or intra-company code processes
Enhancements in actual costing to connect the value
chain across company codes
Inclusion of cross-company profits (or markup) into the
cost components
Group actual costing parallel to the legal view
Company
A
Company
B
Valuated
stock in transit
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Available in EHP5:
New Concept for Stock In-Transit (SIT)
Sender Receiver
Senders
Stock
In plant In transitIn plantIn transit
Outbound
Delivery
Purchase
Order
Receivers
Stock
Senders
Stock
Receivers
Stock
Senders
Transit Stock1
Senders
Stock
Receivers
Stock
Senders
Transit Stock
2 ReceiversTransit Stock
Senders
Stock
Receivers
Stock
Receivers
Transit Stock3
Immediate Transfer
(1-step scenario)
Goods stay in senders
ownership during transfer
Ownership changes
during the transfer, e.g.
upon arrival in the port
of destination
Ownership changes
when leaving the sender
0
Availablein EHP5!
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Company Code 1000
EHP5: Cross-Company-Code Material Transfer with
SIT (Detail View)
Create Billing document
(with ref. to outb. delivery)
In-Transit Stock
(Plant 1000)
Create Outbound Delivery
(From Plant 1000 to 0001)Create Purchase Order
Perform Goods Issue
(VL02N: 681)
Perform Goods Receipt with
reference to Outbound Delivery
(MIGO: 109)
In-Transit Stock
(Plant 0001)
Company Code 0001
Perform POD
(VLPOD: 685 + 107)
Create Invoice
(automatically or manually)
Plant 1000 Plant 0001
Perform Goods Issue
(VL02N: 681)
Perform Goods Issue
(VL02N: 683 + 107)
In-Transit Stock
In-Transit Stock
Perform Goods Receipt with
reference to Outbound Delivery
(VLPOD: 685 + 101)
Perform Goods Receipt with
reference to Outbound Delivery
(MIGO: 109)
1
2
3
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EHP5: Intra-Company-Code Material Transfer with
SIT (Detail View)
In-Transit Stock
(Plant 1000)
Create Outbound Delivery
(From Plant 1000 to 0001)Create Purchase Order
Perform Goods Issue
(VL02N: 68A)
Perform Goods Receipt with
reference to Outbound Delivery
(MIGO: 109)
In-Transit Stock
(Plant 0001)
Company Code 1000
Perform POD
(VLPOD: 68E)
Plant 1000 Plant 2000
Perform Goods Issue
(VL02N: 68A)
Perform Goods Issue
(VL02N: 68C)
In-Transit Stock
In-Transit Stock
Perform Goods Receipt with
reference to Outbound Delivery
(VLPOD: 68i)
Perform Goods Receipt with
reference to Outbound Delivery
(MIGO: 109)
1
2
3
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Example Process(1/3): Cross-Company Code
transfer from Issuing SIT Receiving SIT
Outbound Side (Posting to issuing SIT):
Ownership Transfer (with Transaction VLPOD):
Quantity differences
can be maintained
here
VL02N: Goods Issue
with Mvt Type 681
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Example Process(2/3): Cross-Company Code
transfer from Issuing SIT Receiving SIT
Result of VLPOD:
The material is issued from the SIT of the
sending plant and received into the SIT of the
receiving plant ( 2 movements!)
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Example Process(3/3): Cross-Company Code
transfer from Issuing SIT Receiving SIT
Inbound Side (receiving SIT to receiving plant / transaction MIGO):
Document Flow of the scenario:
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Customizing Overview
- Choose 2-step procedure per plant/plant combination:
Materials ManagementPurchasingPurchase Order Setup stock transport order
-Set up delivery type determination based on PO Document type and Supplying Plant:
Materials ManagementPurchasingPurchase Order Setup stock transport order
-Find the suitable item category per delivery type:
Logistics ExecutionShippingDeliveries
- Find the suitable schedule line category per item category: Sales and Distribution
Sales Sales Documents Schedule LinesAssign Schedule Line Categories
-The schedule line category contains the
movement type which is used for the goods
movement with reference to the delivery, e.g.:
These fields decide who owns
the transit stock and how the
ownership transfer is executed.
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EHP5 Example: Cross-Company Code Return
and Cancellation Processes
r0
r1
r2
Sender Company Code Receiver Company Code
Senders
Free Stock
In plant In transit In plantIn transit
Receivers
Free Stock
Senders
Free Stock
Receivers
Free Stock
Senders
Transit Stock
Senders
Free Stock
Receivers
Free Stock
Receivers
Transit Stock
Outbound
Delivery
Purchase
Order
Complete or partial return
(1-step scenario!)
Return from transit stockRejected or
not
delivered
Return from receivervia transit stock
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Company Code 1000
EHP5 Example: Cross-Company Code Return and
Cancellation Processes (Detail View)
Create Returns Delivery Create Returns PO Item
Post GR
(VL02N: 693 + 167)
Company Code 0001
Perform goods movements
(VL02N: 161+675)
Plant 1000 Plant 0001
In-Transit Stock Post Goods Movement
(MIGO: 109 169)
Goods Receipt is posted
automaticallyr0
r1
r2
Cancel Goods Issue
VL09: 682 (full return)
MIGO: 417 (for partial returns
MIGO: 555 (Scrapping)
In-Transit Stock
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EHP5 Example: Business with External
CustomersProcess variants using stock in transit
Sender Company Code External Customer
In plant In transit Delivery address
PurchaseOrder
Customer4 SendersFree Stock
Senders
Transit Stock
r4
Goods stay in senders
ownership and control
during transfer to an
external customer
CustomerSenders
Free Stock
Senders
Transit Stock
Returning goods are in
senders ownership and
control and will keep the
original values
Rejected or
not
delivered
The enhancement helps also in business with external customers to keep sold goods
in the books until they are finally arrived at the customers and keep control over
returns
687 601 T
688
Sales Order
Outbound
Delivery
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Company Code 1000
EHP5 Example: Sales Process with Stock In
Transit
Create Billing document
Create Sales Order Create Purchase Order
Receive Invoice
Plant 1000Customer
Create Outbound Delivery
Perform Goods Issue
(VL02N: 687)
In-Transit Stock Perform Goods Receipt +send Proof of Delivery
Maintain Proof of Delivery
(VLPOD: Goods Issue 601)
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External Vendor or
different ERP-System
ERP 6.0 Working Example: Stock transfer at Vendor
location
Sales Order Purchase Order
Outbound Delivery / ASN
User-Exit: Post Goods
Receipt 107 in Background
ERP 6.0
Inbound DeliveryDESADV idoc
Goods Receipt with reference
to Inboud Delivery (109) with
VL32N
Post Goods Receipt
(MIGO: 107)
In-Transit Stock
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Solution PropertiesValuated Stock in Transit
The Solution has following properties:
Stock in Transit (SIT) is valuated SIT valuation will be stable and separated from the unrestricted stock and postings can be on
separate G/L accounts. Returns out of SIT will be posted with the original material value
New Movement types for transfers between free stock and SIT and between SITs
Ownership transfer may be triggered by proof of delivery
Usage of SIT configured by purchasing document type and plant-to-plant combination
Only one purchase order and one outbound delivery is necessary to control the multi-step
process (by using the SPED functionality inbound deliveries can be used as well)
Stock overview and other reports will show SIT as separate stock type
Solution supports:
Handling Units
Batches
Sales order Assignments
Standard or moving average price
Serial numbers
Costing, cost object controlling and actual costing
SPED functionality (automatically creating inbound deliveries from outbound deliveries)
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Motivation
Group
Company
ACompany
B
CostsRaw Mat. 20
Energy 25
Labour 15
Production 40
CostsRaw Mat. 100
Energy 0
Labour 0
Production 0
Sales process
Actual costing provides no visibility into
cost structure after intercompany sales
The enhanced Solution shall keep the
cost transparency through intra-
company sales and add freight
costs and cross-company profits to
the costs from the selling company
code from a group point of view
Issue Requirement
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Sales Processwithout enhanced Cross-Company Actual Costing
Plant Group
Marketing
Regional
Sales
Org
Customer
Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit
Sales Costs
Costs
Raw Mat.Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit
Sales Costs
Costs
Raw Mat.
Energy
Labour
Production
Maintenance
FreightMarketing
Duties
Intercompany profit
Sales Costs
RevenuesCosts
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profitSales CostsProfit
In SAP standard an internal sales process cuts the value flow for
actal costs. Costs will only be transparent for the last step in
the chain. Costs from previous steps will appear as raw
material costs only
Before the enhancement, a sales process does not transmit the internal cost
knowledge from a vendor to a purchaser. At the receiver the goods appear aspurchased raw materials.
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Sales Processwith enhanced Cross-Company Actual Costing
Plant Group
Marketing
Regional
Sales
Org
Customer
Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit
Sales Costs
Costs
Raw Mat.Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit Plant
Sales Costs
Revenues
CostsEnergy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit Plant
Sales Costs
Intercompany profit Marketing
Profit
Profitability Analysis will make cost and profit contributions from
the whole chain transparent.
Actual costs of the month in production, marketing and sales will
be compared with actual revenues
Costs
Raw Mat.
Energy
Labour
Production
Maintenance
Freight
Marketing
Duties
Intercompany profit Plant
Sales CostsIntercompany profit Marketing
After the enhancement, the full cost information is collected along the group-
internal supply chain and can be compared with the revenues achieved.
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Valuation View: Legal Valuation
Company Code Valuation (legal valuation)
In legal view the transfer is valuated like a sales process. The costs at the receiver will reflect the PO value
initially and finally the invoice value
The difference between the cost at the sender site and the invoiced price is shown a markup or intra-
company profit within the cost components*
Freight costs and other planned delivery costs will be added at the receiver
Cost information from the sender will be collapsed (Option 1)
It can be chosen in configuration to transmit all cost split information from sender to receiver and keep them
in the receivers cost component split (Option 2)
CoCd A / Plnt 1
Total cost 1000
Materials 500
Labor 400
Overhead 100
Freight
CC Markup 0
Sold to
Shipper
CoCd B / Plnt 2
Total cost 1200
Materials 1100
Labor 0
Overhead 0
Freight 100
CC Markup 100
Invoice
1100,-
Freight
invoice
100,-
Option 1
CoCd B / Plnt 2
Total cost 1200
Materials 600
Labor 400
Overhead 100
Freight 100
CC Markup 100
Option 2
* Via a BADI implementation it can be achieved to split markups (e.g.into contributions from different parts of the organization )
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Sales Process in Legal View
5 kg are
purchased
from plant
1000 via a
transit stock
6 kg are
purchased
from plant
2000 directly
The group-
internal PO is
an own
process
No price
differences are
rolled up inlegal view
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Cost Component Split in Legal View
1,051,05
11,34 11,34
1000 Hamburg Sells to
Cost
Components
from actual
costing
26, 82 12, 82 14 ,0 0
0,00 0,00
Cost
Components
from Purchase
process
2,42
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Intercompany Profit
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Valuation View: Group Valuation
Group Valuation
In group view the transfer is valuated like a plant-to-plant transfer. The costs at the receiver
will reflect the costs at the sender plant
No Intercompany Profit is shown. The PO and invoice values play no role for material
valuation
Freight costs and other planned delivery costs will be added at the receiver
Cost information from the sender will be kept
Note: Internal invoice needs to be created via EDI-interface and not manually in MIRO
CoCd A, Plnt 1
Total cost 1000
Materials 500
Labor 400
Overhead 100
Freight
CC Markup 0
transfer
Shipper
CoCd B, Plnt 2
Total cost 1100
Materials 500
Labor 400
Overhead 100
Freight 100
CC Markup 0
Freight
invoice
100,-
After period end, price differences
from the sending plant will be
transferred to the receiving plant in
multi-level settlement, only in groupvaluation
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Sales Process in Group View
Price differences from the
source plant are rolled up
and update the price and
cost component split in the
receiving plant
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Complete PictureMultiple Steps in Parallel Valuation
Production
legal group
Total cost 1000 1000
Materials 500 500
Labor 400 400
Overhead 100 100
Freight
CC Markup 0 0
Sold to
Shipper
Marketing
legal group
Total cost 1200 1100
Materials 1100 500
Labor 0 400
Overhead 0 100
Freight 100 100
CC Markup 100 0
Invoice
1100,-
Freight
invoice
100,-
Regional Sales
legal group
Total cost 1350 1150
Materials 1300 500
Labor 0 400
Overhead 0 100
Freight 50 150
CC Markup 200 0
Sold to
Invoice
1300,-
Freight
invoice
50,-
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Period End: Revaluation at Actual Costs
At month-end the costs of production will be re-determined in the production plant. As
the group-internal sales is a multi-level process, costs will be adjusted throughout thesupply chain in group view
Productionlegal group
Total cost 1000 1000
Materials 500 50
Labor 400 400
Overhead 100 100
Freight
CC Markup 0 0
Marketinglegal group
Total cost 1200 1100
Materials 1100 500
Labor 0 400
Overhead 0 100
Freight 100 100
CC Markup 100 0
Regional Saleslegal group
Total cost 1350 1150
Materials 1300 500
Labor 0 400
Overhead 0 100
Freight 50 150
CC Markup 200 0
In the example we assume that the rawmaterials used for the production wereprocured 10% more expensive thanplanned
10501050
550 550
The price difference reaches the lastmember in the chain.
Costs in group view will be adjusted
1200
550
150
1150
550
50
Invoice 1100
FreightInvoice 100
Invoice 1300
FreightInvoice 50
Markup in legal view will beadjusted
C l t Pi t
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Complete PictureMultiple Steps in Parallel Valuation (only legal valuation)
Production
Opt 1 Opt 2
Total cost 1000 1000
Materials 500 500
Labor 400 400
Overhead 100 100
Freight
CC Markup 0 0
Sold to
Shipper
Marketing
Opt 1 Opt 2
Total cost 1200 1200
Materials 1100 600
Labor 0 400
Overhead 0 100
Freight 100 100
CC Markup 100 100
Invoice
1100,-
Freight
invoice
100,-
Regional Sales
Opt 1l Opt 2
Total cost 1350 1350
Materials 1300 700
Labor 0 400
Overhead 0 100
Freight 50 150
CC Markup 200 200
Sold to
Invoice
1300,-
Freight
invoice
50,-
P i d E d R l ti t A t l C t
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Period End: Revaluation at Actual Costs(only legal valuation)
At month-end the costs of production will be re-determined in the production plant. As
the group-internal sales is a multi-level process, costs will be adjusted throughout thesupply chain . In the legal view the costs will always reflect the invoiced price of the
sender.
Production
Opt 1 Opt 2
Total cost 1000 1000
Mat. Comp.1 500 500
Mat. Comp.2 0 0
Mat. Comp.3 0 0
Labor 400 400
Overhead 100 100
Freight
CC Markup 0 0
Marketing
Opt 1 Opt 2
Total cost 1200 1200
Mat. Comp.1 0 500
Mat. Comp.2 1100 100
Mat. Comp.3 0 0
Labor 0 400
Overhead 0 100
Freight 100 100
CC Markup 100 100
Regional Sales
Opt 1 Opt 2
Total cost 1350 1350
Mat. Comp.1 0 500
Mat. Comp.2 0 100
Mat. Comp.3 1300 100
Labor 0 400
Overhead 0 100
Freight 50 150
CC Markup 200 200
Invoice 1100
Freight
Invoice 100
Invoice 1300
FreightInvoice 50
In the example we assume that the rawmaterials used for the production wereprocured more expensive than plannedand labor caused less costs
10501050
560 560
390 390
560
50
In option 1 the split iscollapsed to the material costcomponent
In option 2 also the split willreflect the split at the sender
390
50
1100
The price difference reaches the lastmember in the chain.
Actual costs, markup and actual costcomponent split were updated
560
150
390
150
I t l i i
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Internal invoices
Treatment of invoice in the scenario
Invoices for delivery costs
Delivery costs such as freight or duties can be manually entered with MIRO. They may
come from the sending plant or a 3rd party service provider. When the invoice refers to
planned delivery costs with a specific condition type in the price conditions, it can be
defined in account determination and cost component assignment that delivery costs are
collected in a designated cost component.
Invoice for the sent material
For the legal view an invoice is necessary to close the transaction and create a accounts
payable at the receiver. If a parallel group valuation is active the invoice hase to be
ignored, because the price and the cost components to be used was already used during
goods receipt.
For technical reason the cross-company invoice for the sent material cannot be manually
entered in MIRO but has to be sent as IDOC in an EDI connection. This makes sure thatnot only the sales price (in legal view) is transmitted, but also the transfer price in group
view. The setup for the scenario is described in the notes section.
S tti i t billi ith EDI
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Setting up inter-company billing with EDI
Note 31126 - Intercompany billing - posting to vendor account using EDI
Note 659590 - EDI: Stock transfer and cross-company sales
The price condition KW00 will pick up the value of the material in the
sending plant.
This value will be used as invoice value on the receiving side in group
valuation. By this group valuation in the receiving plant will have no
contributions of intercompany profits.
Billing Logistics Invoice
PR00
KW00
Value in Legal View
Value in Group View
Automatic Creation via EDI
C t i i P ll l V l ti
https://service.sap.com/sap/support/notes/31126https://service.sap.com/sap/support/notes/659590https://service.sap.com/sap/support/notes/659590https://service.sap.com/sap/support/notes/659590https://service.sap.com/sap/support/notes/659590https://service.sap.com/sap/support/notes/659590https://service.sap.com/sap/support/notes/659590https://service.sap.com/sap/support/notes/659590https://service.sap.com/sap/support/notes/31126https://service.sap.com/sap/support/notes/31126https://service.sap.com/sap/support/notes/31126https://service.sap.com/sap/support/notes/31126https://service.sap.com/sap/support/notes/31126https://service.sap.com/sap/support/notes/31126https://service.sap.com/sap/support/notes/311265/19/2018 Stock in Transit and Actual Costing- SAP Ramp-UP
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Customizing: Parallel Valuation
C t i i S tti th t t
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Customizing Setting up the cost component
split
BAdI Control of Cross Compan Code
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BAdI: Control of Cross-Company Code
Transfers
ROLLUP_COST_COMP_SPLIT
Using this method you can control that the costcomponent split is also transferred cross-company
code in the legal view.
REVAL_MARKUP_AT_ACTUAL_COSTS
Using this method you can control that the
intercompany profit is calculated on the plan costs
of the sender and not using the actual costs.
DISPLAY_COST_COMPONENTS
Using this method you can control in Material PriceAnalysis (CKM3) that all cost components notrelevant to inventory valuation are displayed (and
not just the cost component for the intercompany
profit).
GET_MARKUP_COMPONENT
Using this method you can control that the
intercompany profit is assigned to any costcomponent not relevant to inventory.
MODIFY_MARKUP
With this method, you can calculate the
intercompany profit in accordance with a separate
algorithm.
Maintain Vendor with Trading Partner
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Maintain Vendor with Trading Partner
In the Control-tabstrip of the vendor master the receiving company code has to be
maintained in order to mark the vendor as a vendor from the same group. The field is alsoused for legal consolidation
Company Code
of receiving plant
Properties of the Solution
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Properties of the Solution
Cross-Company actual Costing
The Solution has the following properties:
Cross-Company Sales Process is a multi-level process. Actual costs will be transmitted at
following events
Goods issue / Goods receipt
Invoice receipt (via EDI)
Period end closing
The cross-company scenario is recognized by the fields Customer andTrading Partner in the
vendor master Freight costs and other planned delivery costs will be added to actual costs
Mixed scenarios of (internal) procurement, own production and further process steps will be
supported
Mixed scenarios of internal and external procurement is supported and will be separately
reported in procurement alternatives
Sender transit stocks are own valuation objects that can be reported and take part in the multi-
level-settlement
Split valuation, sales-order valuation, and project valuation is supported
Actual costing and parallel valuation can be activated in a live environment: no loss of data, not
a major conversion project*
Alternative Valuation Run (AVR) is supported. Also a scenario where periodic closings areperformed in smaller units and AVR closes cross-company-chains in global closing is supported
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Achievements
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Achievements
Flexibility in supply chain modeling
Transparency on values and value flow
throughout the group
Group view on actual product and
customer profitability
Compliance and auditability in valuation
Decision support on local and group level
Release Info
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Release Info
The enhancements in logistics and accounting are delivered in ERP 6.0
enhancement pack 5 and included in the ERP user license
In order to use it the switch LOG_MM_SIT has to be activated in SFW5
The entry into the documentation can be started from SFW5 for switch LOG_MM_SIT
or via the help path:
Business Functions (SAP Enhancement Package 5 for SAP ERP 6.0) - Business Functions in SAP ERP - EnterpriseBusiness Functions - Logistics Materials Management - Cross-Company Transfer & actual costing
http://help.sap.com/erp -> SAP ERP Central Component ->Accounting -> Controlling (CO) -> Product Cost Controlling (CO-PC) ->Actual Costing/Material-Ledger (CO-PC-ACT) -> Selected Functions -> Cross Company Transfer Processes.
(The documentation is currently in process of publication and might become available only during Q1 or Q2 2010)
Info on neighbored topics, already covered previously:
Transfer prices in profit center accounting: http://help.sap.com/saphelp_erp60_sp/helpdata/en/eb/13811243c411d1896f0000e8322d00/frameset.htm Group cost estimates in product cost planning: http://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb848443a311d189ee0000e81ddfac/frameset.htm
Actual costing / Material Ledger: http://help.sap.com/saphelp_erp60_sp/helpdata/en/a5/320e28d56c11d295c200a0c930328a/frameset.htm
Getting further info, feedback or questions to:
[email protected] / [email protected] / [email protected]
http://help.sap.com/erphttp://help.sap.com/saphelp_erp60_sp/helpdata/en/eb/13811243c411d1896f0000e8322d00/frameset.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb848443a311d189ee0000e81ddfac/frameset.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/a5/320e28d56c11d295c200a0c930328a/frameset.htmmailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb848443a311d189ee0000e81ddfac/frameset.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb848443a311d189ee0000e81ddfac/frameset.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/a5/320e28d56c11d295c200a0c930328a/frameset.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb848443a311d189ee0000e81ddfac/frameset.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb848443a311d189ee0000e81ddfac/frameset.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/eb/13811243c411d1896f0000e8322d00/frameset.htmhttp://help.sap.com/erp5/19/2018 Stock in Transit and Actual Costing- SAP Ramp-UP
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Note: The 3 appendix sections are not part of the presentation and not part of the cross-
company actual costing enhancement in ERP 6.0 enhancement pack 5. They are
included here to give an entry to neighbored requirements that are already covered
before (I + II) or are developed in parallel (III)
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Product Cost Controlling Through a Period
Cost Planning Production Actual Costing
Profitability
Analysis
Evaluating master
data
Bill of materials
Routing
Planned prices
Planned activities Planned yield
Recording logistical
information for
controlling:
Consumptions
Yield & scrap
Purchasing & supplierinvoices
Activities & time
recording
Recalculating the
value flow using
Actual quantity
structure
Actual activity
recording
Multi-level value flow
Actual raw material
prices
Reporting Costs and
Contribution Margins
Production costs
Sales Revenues
Dimensions Regions
Channels
Customers
Actual Costing Principle: Actual prices are
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External Procu rement
Actual Costing Principle: Actual prices are
rolled up along the actual quantities
Product ion
Product ion
Roll-uppr ice d if ferences
from raw mater ia ls to
f in ished mater ials
External Procurement
Actual Cost Component Split
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External Procurement Ex ternal Procurement
Product ion
Product ion
Actual Cost Component Split
Material
Process
Overhead
Labor
Profitability
Analysis
Material
Process
Overhead
Labor
Basis for Actual Cost Determination
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Basis for Actual Cost Determination
Material Movements
Purchasing
Invoices
Production order settlements
Debits/Credit
Goods receipt from Production
Consumption for Production
Stock Transfers
Sales
Activities to Production
Quantity structure from actual
transactions
Collection of values from
actual transactions
Value
Value
Variances Price
Beginning
Inventory
Receipts
Cumulative
Inventory
Consumption
Ending Inventory
Profitability Analysis based on Actual Costs
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Ac tual Values in Prof i tabi l i ty Analysis
Contr ibut ion Margin Accoun t ing
Cost of Sales Spl i t in to Cost Components
Plan/Ac tual Var iance Analysis
Profitability Analysis based on Actual Costs
Plan Actual Var. % Var. Abs .Revenues: 100,000 US$
Sales Quanti ty : 1,000 pc
50,000 45,000 5,000 10 %Raw Materials4,000 5,000 -1,000 - 25 %Labor var iable4,000 4,500 - 500 - 13 %Machine variable
10,000 7,000 3,000 30 %Log ist ic Processes
5,000 5,500 - 500 - 10 %Material Ov erheads
6,00027,000 33,000 22 %Contr ibut ion Margin I
10,000 10,000 0 0 %Labor f ix7,000 7,000 0 0 %Machine fix
10,000 16,000 6,000 60 %Contr ibut ion Margin II
Screenshots
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Screenshotsperiodic costs
The actual price, the actual
cost component split and
all price-influencing
transactions of a month are
reported by material
Valuated Quantity Structure
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Valuated Quantity Structure
The actual quantity structure
with the costs for all
components and activitiesthroughout the supply chain is
shown by material
Profitability Analysis
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Profitability Analysis
Profitability Analysis brings
actual revenues and actual
costs together
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Aim of Group Valuation and Transfer Pricing
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Aim of Group Valuation and Transfer Pricing
Transfer prices enable organizations that divide tasks among different units to valuate
and monitor the goods and services exchanged between these units, while still
maintaining visibility to cost of goods manufactured and sold.
Group valuation and transfer prices are built into SAP ERP since R/3 4.5.
The enhancement in ERP 6.0:
Group view on actual costs
Full cost split is calculated cross-company.
Three Distinct Views of Business Posted in
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Parallel
Legal ViewAllows you to represent profits optimally in the financial statements of the
company code for tax purposes and according to GAAP Standards
Group ViewAllows strategic decision making by viewing data as if the group acts as
a single company code by eliminating internal profits throughout the financial
transaction flow.
Profit Center ViewAllows you to view the profit of individual areas of responsibility as
if they were selling entities not part of the larger group.
You can do the Group and/orthe Profit Center Views i.e. you can do either one or
both
Parallel Valuation
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Semifin.
material
Distributioncenter Sales
order
Finishedproduct
Rawmaterial
Production
order
Cost center
Production order
1) Sale of Raw Material to the Production Profit Center within a Legal Entity.
2) Sale of Semi-Finished Good to Affiliated Company.
3) Use Semi-Finished Good in a production order and add value from activity in acost center.
4) Transfer finished product to distribution center in an Affiliated Company.
2 3 41
Parallel Valuation
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Production
order
Sales
order
Cost center
Company code 1
PrCtr1 PrCtr2 PrCtr3 PrCtr4
75
100
120
CCtr 20
220
240
Company code 2 Company code 3
Production
order
Semifin.material
Rawmaterial
Distributioncenter
Finishedproduct
L 120
G 90P 140
L 120
G 90
P 140
L 70
G 70
P 75
L 70
G 70P 75
G 70
L 70
P 70 P 240
G 90
L 220
Profit and Loss Statements
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Legal Group Profit Center 3
Revenue 220 90 240
COS 120 90 140Margin 100 0 100
Company Code 2
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Benefits:
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Parallel Determination of Costs of Goods Manufactured
It is now possible to transfer depreciation values from FI-AA according to two different
accounting principles into Cost Center Accounting.The depreciation costs can then be included in the activity rates for the work performed and inthe costs of goods manufactured, both of which are calculated at period close.
You can update the ledger groups / accounts in FI-GL with inventory values calculatedaccording to two different valuation methods. For example,
Where CO Version 0 represents the leading valuation (IFRS), you can calculate the actualcosts using the periodic costing run and update the inventory values in the leading ledger inFI-GL.
Where the second CO Version represents the local valuation (GAAP), you can calculate theactual costs using an alternative costing run and update the inventory values in the localledger in FI-GL.
If your leading valuation is based on standard costs and your local valuation based on actual
costs then
CO Version 0 represents the leading valuation (IFRS) and is used to determine the standardcosts.
The second CO Version represents the local valuation (GAAP). Here you can use theperiodic costing run to update the inventory values in the local ledger in FI-GL.
Value Flow for Parallel Determination of Costs of
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Goods Manufactured
ControllingUpdate of Depreciation Expenses by Cost
Center and Version
Actual CostingPeriodic Costing Run
Updates either leading valuation or local valuation*
Version 0
(legal)
(Actual rate)
Version N
(par. COGM)
(Actual rate)
Actual CostingAlternative Valuation Run
Updates local valuation if both valuations use actual costs*
Depreciation Area 01
(IFRS)Asset AccountingPerform Depreciation Run
Version 0
(legal valuation)
Ledger 0L
(IFRS)
Version N
Depreciation Area 02
(Local GAAP)
Ledger N
(Local GAAP)
(parallel COGM)
Version N
(par. COGM)
(Actual rate)
ControllingDirect Activity Allocation at standard;
Actual Rate Calculated at Period
Close
Version 0
(legal)
(Actual rate)
Version 0
(legal)
(Standard rate)
Version N
(par. COGM)(Actual rate)
OR
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Thank you!