COGS at Actual Costs E
Post on 16-Oct-2015
32 Views
Preview:
DESCRIPTION
Transcript
SAP AG 2000 filename (author) / 1
Revaluation of Cost of Goods Sold
at Actual Costs
Frank BigdonSAP Development Cost Management
SAP AG 2000 filename (author) / 2
Introduction
1) Introduction
SAP AG 2000 filename (author) / 3
Example: Consumption of a Finished Product
Ending Inventory
500kg
Sales
400kg
Cafeteria
100kg
1000 kg
SAP AG 2000 filename (author) / 4
Price Determination
Ending Inventory
500kg
Sales
400kg
Cafeteria
100kg
1000 kg
ML Price Determination:Roll Up of Variances
SAP AG 2000 filename (author) / 5
Revaluation of Ending Inventory
1000 kg
Ending Inventory
500kg
Sales
400kg
Cafeteria
100kg
ML Period Closing:Revaluation of EndingInventory
SAP AG 2000 filename (author) / 6
Revaluation of Cost of Goods Sold (COGS)
1000 kg
Ending Inventory
500kg
Cafeteria
100kg
Revaluation of
COGS
Sales
400kg
SAP AG 2000 filename (author) / 7
Postings in FI
Preliminary Valuation: 10 USD / kg
Variances calculated by price determination: 1 USD / kg
Material stock Price difference Consumpt. Sales
10000USD
1000USD
500USD
500USD
4000USD
4000USD
400USD
400USD
Production 1000 kg
Sales 400 kg
Price determination
Revaluation Inventory
Revaluation COGS
SAP AG 2000 filename (author) / 8
Modification of the Material Ledger Update
2) Modification of the Material Ledger Update of Goods Movements for Revaluation of COGSCOGS SAPRCKML_COGS ZSAPRCKML_COGS
SAP AG 2000 filename (author) / 9
Types of Consumption Relevant to Revaluation
Sales Cafeteria Quality Inspection
? ? ?
SAP AG 2000 filename (author) / 10
Types of Consumption Relevant to Revaluation
It is specified in Customizing which movement types are relevant to revaluation(by assigning special movement type groups CF and CC).
Movement type Movement type group
251 - Sales CF (Revaluation FI)201 - Cost Center (Cafeteria)
331 - Quality Inspection
SAP AG 2000 filename (author) / 11
Tracing of Movements Relevant to Revaluation
Material: chocolate
Beginning Inventory 0 Kg
Receipts 1000 Kg
Production 1000 Kg
Cumulative Inventory 1000 Kg
Consumption 500 Kg
Sales 400 Kg
Account 890000 250 Kg
Account 895000 150 Kg
Cost Center 100 Kg
Cafeteria 100 Kg
Ending inventory 500 Kg
Consumption Alternatives relevant to revaluation:
FI Account is a key of of the Consumption Alternative
SAP AG 2000 filename (author) / 12
Revaluation in CO
Sales Cost Center: Cafeteria Quality Inspection
SAP AG 2000 filename (author) / 13
Revaluation in CO
To revaluate also the CO-Object (besides the FI-account) in customizing you assign the movement type group CC (instead CF)
Movement type Movement type group
251 - Sales CF (Revaluation FI)
201 - Cost Center (Cafeteria) CC (Revaluation FI and CO)
331 - Quality Inspection
SAP AG 2000 filename (author) / 14
Consumption to Cost Center:Iteration Problem
1) Cost Center Closing
Cost Center Cost Center
Cost Center
2) Order Settlement
3) Multi-LevelActual Costing
SAP AG 2000 filename (author) / 15
Tracing of Movements Relevant to Revaluation
Material: chocolate
Beginning Inventory 0 Kg
Receipts 1000 Kg
Production 1000 Kg
Cumulative Inventory 1000 Kg
Consumption 500 Kg
Sales 400 Kg
Account 890000 250 Kg
Account 895000 150 Kg
Cost Center 100 Kg
Acc.850000, CC. Cafeteria 100 Kg
Ending inventory 500 Kg
The CO Object - besides the FI Account - is a key of a Consumption Alternative relevant to Revaluation in CO
SAP AG 2000 filename (author) / 16
Revaluation of Other Consumption (COC)
Sales Cafeteria Quality Inspection
COC Account
SAP AG 2000 filename (author) / 17
Example
Material: chocolate
Beginning Inventory 0 Kg 0 USD 0 USD
Receipts 1000 Kg 10000 USD 1000 USD 11 USD
Production 1000 Kg 10000 USD 1000 USD 11 USD
Cumulative Inventory 1000 Kg 10000 USD 1000 USD 11 USD
Consumption 500 Kg 5000 USD 500 USD 11 USD
Sales 400 Kg 4000 USD 400 USD 11 USD
Account 890000 250 Kg 2500 USD 250 USD 11 USD
Account 895000 150 Kg 1500 USD 150 USD 11 USD
Cost Center 100 Kg 1000 USD 100 USD 11 USD
Cafeteria 100 Kg 1000 USD 100 USD 11 USD
Ending inventory 500 Kg 5000 USD 500 USD 11 USD
Revaluation COGS Revaluation COC
SAP AG 2000 filename (author) / 18
How the old program worked
3) How the old program worked
PRCKML_COGS SAPRCKML_COGS ZSAPRCKML_COGS
SAP AG 2000 filename (author) / 19
Problems of standard Material Ledger update
z In standard Material Ledger update of goods movements consumption to sales does not always appear in the correct process type (Example: If goods are sold via a cost center the consumption appears as Consumption to Cost Center)
z Reversal movements sometimes appear as procurement (above the cumulative line) and thus cannot be revaluated
z Reading of material and accounting documents is needed to determine the COGS accounts that have to be revaluated
SAP AG 2000 filename (author) / 20
The Old Program SAPRCKMN_COS
The old program ....
z makes no use of the material ledger update to identify the quantities consumes for sales (Reason: goods issues to sales are not always updated under the correct process type in ML)
z identifies goods issues to sales by existence of a billing document in the Sales & Distribution Module
z obtains all information needed to revaluate the movements (consumed quantities, accounts etc.) by reading the document flow of the Sales & Distribution Module
SAP AG 2000 filename (author) / 21
Document Flow
Material
Delivery Material document
Invoice
Quantities, Accounts
Accounting document
SAP AG 2000 filename (author) / 22
Problems of the Old Program
z Use of Sales & Distribution Module required!z High Complexity of Processes in SD. Reading of the document flow
can be very complicated. This difficulty has caused many errors in the old program.
z Performance: Reading of the document takes very long time in systems where much transaction data exists!
z Time dependency: Sales movements are only recognized if the billing has already been posted and if it has been posted in the same period!
The old program had poor performance and often determined wrong consumptionquantities for the sales movement
SAP AG 2000 filename (author) / 23
Posting Logic
Old Program:
Cumulated Posting per Account.
New Program:
Separate Posting foreach Material. Material specific data is provided to Acc. Interface
Material B COGS Account: 850000Revaluation Amount: 300,-
Material B COGS Account: 850000Revaluation Amount: 300,-Business Area: 6100Profit Center: PC 2
Material ACOGS Account: 850000Revaluation Amount: 500,-
COGS Account: 850000Revaluation Amount: 800,-
Accounting Interface
Material ACOGS Account: 850000Revaluation Amount: 500,-Business Area: 6000Profit Center: PC 1
Material specific data
SAP AG 2000 filename (author) / 24
Conclusion
! Conclusion:SAP recommends not to usethe old program anymore!!
SAP AG 2000 filename (author) / 25
How to Implement and Use the New Program
4) How to implement and use the new programZSAPRCKML_COGS
SAP AG 2000 filename (author) / 26
Implementation of the New Program
z Step 1: Modification of the Material Ledger Update. For this step follow the instructions of OSS-NOTE 305056.
It has to be done BEFORE the start of the period, for which the new program shall be used
This step includes the settings in customizing for all movement types that shall be revaluated at periods end
z Step 2: Installation of the new report For this step follow the instructions of OSS-NOTE 320152.
In customizing you have to assign accounts for transaction key COC, if you want to revaluate Cost of Other Consumption
SAP AG 2000 filename (author) / 27
Settings in Customizing
Movement type Movement type group
601 - delivery CF
602 - GI to delivery (Reversal) CF
201 - Cost Center CC
202 - Cost Center (Reversal) CC
261 - Production Order
301 - Stock Transfer
Never forget to assign the reversalmovement !!
Never assign multi-level movements!!
Test each movement type, you assigned to CF or CC!!
SAP AG 2000 filename (author) / 28
General Understanding:Single- and Multi-Level Consumption
MaterialsMaterialsCost Center
CustomersMulti-Level Consumption
Single-Level Consumption
SAP AG 2000 filename (author) / 29
The new Program: Advantages/Disadvantages
Advantagesz Higher performance, because
all relevant data is collected during the period. No reading of documents needed.
z S & D Module is not requiredz Higher reliability because
reading of the document flow is avoided
z Revaluation of other single level consumption types possible
z Revaluation of original CO-Objects possible
z All reversal movements can be recognized correctly
z Material Ledger update of goods movements needs to be modified before period starts. Otherwise program can not be used at periods end.
Disadvantges
top related